1. Financial Plan 2008-09 Board Meeting – 8 April 2008 Russell Favager Director of Finance

2. Quick Recap Headlines Operating Framework 5.46% flat increase 1 Year Allocation only 2.3% Tariff (inflation) Uplift 0.53% Specialist Commissioning

3. Sources of Funding for 2008-09 New Growth (5.46%)£27.3m B/Forward recurrent Surplus£12.1m ---------- Total “new” Monies available£39.4m ======

4. Application of Growth Funding Cost & Demand Pressures £23.0m Delivery of Commissioning Objectives £7.7m Age Related Macular Degeneration (AMD)£1.0m Ambulance Service £1.0m Primary Care Access £0.7m Community Services£0.7m Increase in SHA Lodgement£0.5m Other £2.0m ------------ Total £36.6m

5. Summary of Planned 2008-09 Position Resources Available £39.4m Funding Committed£36.6m --------- Potential Surplus £2.8m ======

6. Issues/Risks for Board be aware of £4m Contingencies held by PCT Assume activity commissioned in contracts sufficient to achieve 18 week target Assume SHA will approve St Caths OBC / accept £14.5m Lodgement Impact of Lord Darzi review – assume any extra requirement on PCT will be central funding Impact of Allocation Formula review is neutral Planned Expenditure will occur in-year

7. Expenditure Profile Commissioning Strategy £'000s 2008/092009/102010/112011/122012/13TOTAL S011,5961,4041,000 0 04,000 S022,0001,0000 003,000 S031,3201301,100 002,550 S04539338000877 S059451000001,045 S061,09032595001,510 S071,7501,8751,3821,200 7,407 9,2405,1723,5771,200 20,389

8. Savings Scenarios from Commissioning Strategy £'000s 2008/092009/102010/112011/122012/13TOTAL Best case3,00012,0001,0003,000 22,000 Medium change1,5004,000 3,5003,00016,000 Limited change2,0001,500 7005,700

9. Potential Risk around Forecast Position Contingencies not required£4.0m Slippage on Commissioning Strategy Spend£9.2m Budget Underspends/Savings e.g. Prescribing / Pharmacy Contract Provider Services Secondary Care activity

10. Capital Programme St Catherine’s Redevelopment650 Minor Schemes / Maintenance200 IM&T150 Provider Services150 Digital Retinopathy150 Technical Support / Project Management80 VCH Scheme – finishing works62 St Caths Accommodation – finishing works50 TOTAL1,492 Budget £’000

11. Summary 2008-09 2009-10 2010-11 Planned Surplus £2,800 £2,900 £6,045 % of Budget 0.5% 0.5% 1.0% Recurrent Surplus £4,800 £5,400 £5,600

12. Any Questions?