financial report - southern dhb · 2018-11-08 · this variance has occurred because the...

FINANCIAL REPORT

HAC Meeting Date: 27 November 2007 Financial Report as at: 31 October 2007 Report Prepared by: Grant Paris, Business Analyst Date: 16 October 2007

Recommendation: That the Hospital Advisory Committee note the Financial Report.

1. DHB Provider Summary Results

Annual

Actual Budget Variance Actual Budget Actual Budget Variance Budget$' 000 $' 000 $' 000 FTE FTE $' 000 $' 000 $' 000 $' 000

22,435 22,029 406 Revenue 89,387 88,117 1,269 264,052

(14,537) (14,565) 28 2,300 2,376 Less Personnel Costs (56,463) (57,022) 558 (170,252)(513) (401) (112) Less Outsourced Cost (1,949) (1,702) (248) (5,047)

(4,233) (3,945) (288) Less Clinical Supplies (16,460) (15,847) (613) (47,250)(3,428) (3,371) (56) Less Non Clinical (13,720) (13,505) (216) (40,609)

(276) (254) (23) 2,300 2,376 Net Surplus / (Deficit) 794 42 752 894

Month Year to Date

Summary Comment:

• October’s result is a deficit of $276k compared to a budgeted deficit of $254k, unfavourable to budget by $23k.

• The major impacts for the month were;

- Increased revenue continued to be driven by increased Mammography volumes, higher than budgeted interest earnings and a catch up of Joint Orthopaedic volumes as per section 2.

- Personnel costs on budget despite FTE being 76 under budget due mainly to higher

than budgeted award increases for some staff groups. - High Outsourced Costs driven by locum RMO payments.

- Unfavourable Clinical Supplies driven mainly by Implants (Hips and Knees) and

Pharmaceuticals. - Unfavourable Non Clinical expenses due to the continued spend on professional fees

(incls legal fees) and higher than budgeted IIT depreciation

• Mental Health as at October 07 has a ytd surplus of $70k against a budgeted deficit of $279k, favourable by $349k. The ytd “result” after removing the Mental Health component would therefore be a surplus of $724k against a budgeted surplus of $321k, a favourable variance of $403k.

ODHB HAC Meeting Financial Report

1

2. Key Revenue Variances

Area $'000Month

VarianceYTD

Variance Comment YTDCTA Revenues (19) (63) Placements < budgetedTraining Fees and Subsidies (7) (6)ACC Revenues (4) (46)Patient / Consumer sourced 6 14Public Health (20) (5) HEHA contract not budgeted (offset by costs)DSS 14 54

Other DHBs 37 284

Increased Southland DHB revenue due to sale of Cytotoxics from Pharmacy Production Unit (cost offset). Waikato DHB favourable revenue due to Cardiac procedures

Other Government (40) (77)(33) 155

OtherInterest earnings 82 241SCL oncharges 46 120Rents 0 56 Backdated rents - NZ Blood ServiceMisc 78 76

206 493

Personal Health

Mammography 123 379

Reduction in screen time associated with Digital Mammography and 2nd mobile has allowed for increased volumes.

Pandemic Funding 0 54 Offsets prior month expenditure for Operation CruikshankMiscellaneous 32 132

155 565

Mental HealthNew Contracts 0 4

0 4

Internal Revenue TransfersPharmacy Outpatient 14 162 HBL scrip revenue offsetting additional costs

Misc 64 (110)Joint Orthopaedic underdelivery caught up in Oct07. YTD vols now on budget..

78 52

Total Revenue 406 1,269

• Mammography volumes again exceed budget.

• Internal revenue has been adjusted to recognize Joint Orthopedic volumes on an actual

basis rather than a capacity basis, to protect against potential wash-ups. Although we are clinically on target according to volumes set at the start of the year, because we recognize all internal revenue evenly throughout the year (ie 1/12th) , there is a financial variance as in this instance the targeted volume delivery is weighted more heavily towards the second half of the year. Expenses however are budgeted according to the clinical target.


2

3. Salaries

Budget Phasing – Days in month versus working days A review of payroll variances this month has highlighted an incorrect assumption used in the budgeting process. Annual budgets for Nursing / Allied Health / Support and Admin staff were all phased according to the number of days in the month. While Nursing supports this assumption as a large proportion of nursing staff are on 24 hr, 7 day a week rosters, the other 3 staff types do not. These staff types should have been phased according to working days in the month. The difference in monthly allocation of the budget between these 2 methods is highlighted below;

Jul-07 Aug-07 Sep-07 Oct-07

Days in month 31 31 30 31% of Budget 8.5% 8.5% 8.2% 8.5%Cumulative % 8.5% 16.9% 25.1% 33.6%

Working Days 22 23 20 23% of Budget 8.4% 8.8% 7.7% 8.8%

8.4% 17.2% 24.9% 33.7%

This shows 8.5% of the payroll budget for these staff types was phased into Oct07 whereas based on the working days phasing, it should have been 8.8%, a difference of 0.3%. For the 4 months to date however, the cumulative affect of this variance is only 0.1%

The following table estimates the $ affect of this phasing discrepancy. Based on this, we believe the October budget was understated by $153k however YTD the impact is only $49k.

Staff Type Jul-07 Aug-07 Sep-07 Oct-07 Total YTD Impact

Allied Health 9,174 (76,922) (76,922) (24,700)(13,514) (13,514) (4,339)(62,627) (62,627) (20,110)

(153,063) (153,063) (49,149)

119,971Support 1,612 21,076Mgmt Admin 7,469 97,675

0Budget overstated / (understated) 18,255 238,722 We will update this table on a monthly basis. Budget Phasing – Statutory Leave (incl time in lieu) An assumption error has also been identified in the phasing of budget $’s re Stat Leave incurred. Unlike the above discrepancy however, this results in no monthly or annual affect in the accounts, however in the personnel tables below, readers may note large variances in the line reading “Stat (inc time in lieu)”. This variance has occurred because the recognition of Stat Leave has been phased constantly throughout the year for Allied / Support and Admin staff whereas due to the majority of these staff not working these days, the cost is incurred in the period the Stat day falls. This variance therefore can simply be offset against ordinary time. The budget model for the 08/09 year is addressing both the above issues.


3

Monthly Salary Total Costs The following table summarises the overall salary position.

Area $'000

MonthFTE

Actual

MonthFTE

Budget

Month FTE

Variance

YTD Actual $'000

YTD Budget $'000

YTD Variance

$'000

YTDFTE

Actual

YTDFTE

Budget

YTDFTE

VarianceMedical 295.5 315.9 20.4 (16,951) (16,928) (23)

(21,359) (21,519)(9,048) (9,303)(1,757) (1,753) (4)(7,348) (7,518)

(56,463) (57,022)

293.6 316.1 22.5Nursing 989.2 1,011.8 22.6 161 988.1 1,011.8 23.7Allied Health 458.6 488.6 30.0 255 459.9 488.6 28.7Support 131.8 132.7 0.9 131.6 132.7 1.1Management / Admin 424.8 427.0 2.2 170 423.7 427.0 3.3Total Salaries 2,300.0 2,376.1 76.1 558 2,297.0 2,376.3 79.3 The vacancy levels continue throughout October, resulting in the almost static unfavourable monthly variance of 76FTE (YTD 79FTE). The favourable $27k variance for the month does not reflect the FTE position due to unfavourable Medical and Nursing variances explained later. The favourable ytd variance of $316k also reflects the many negative impacts on our personnel costs that drive down what we would otherwise expect to be a much larger favourable variance due to our FTE position. The trend of FTE over the last 10 months against budget is shown on the following graph. The dotted line adjusts the budget for budgeted vacancies (40 in 06/07 and 50 in 07/08) and restructure savings (only impacting the budget up to June07).

Provider Actual versus Budgeted FTE

2,200

2,250

2,300

2,350

2,400

2,450

Jan-0

7

Feb-07

Mar-07

Apr-07

May-07

Jun-0

7Ju

l-07

Aug-0

7

Sep-07

Oct-07

Nov-07

Dec-07

FTE

Actual FTE

Budget FTE

Excl budgeted vacancies

Excl budgeted vacancies and restructure


4

This variance is further broken down by staff group below. Budgeted vacancy savings have also been added to the table to show the “real” variance (ie vacant positions) FTE has increased 14 from July, there being no real movement from September.

Staff Type FTE Movement Actual FTE Budget FTE Variance Add Vacancies "Real" VarianceJul-07 to Oct07 Oct-07 Oct-07 Oct FTE v Budgeted in Oct FTE v

07/08 Budget 07/08 BudgetSMO 1.1 122.9 138.5 15.5 8.4 24.0 RMO 3.5 172.6 177.5 4.9 1.0 5.8 Nursing 7.9 989.2 1,011.8 22.6 13.0 35.6 Allied Health (2.2)

(1.1) 458.6 488.6 30.0 11.0 41.0

Support 131.8 132.7 0.9 3.0 3.9 Mgmt / Admin 5.0 424.8 427.0 2.2 13.8 15.9

14.2 2,300.0 2,376.0 76.1 50.1 126.2 Medical Salaries Medical salaries have a favourable variance of $7k for the month as shown below:

Area $'000

Month Actual $'000

Month Budget $'000

Month Variance

$'000

MonthFTE

Actual

MonthFTE

BudgetYTD Actual

$'000YTD Budget

$'000

YTD Variance

$'000

YTDFTE

Actual

YTDFTE

Budget

YTDFTE

VarianceOrdinary (2,314) (2,646) 332 228.12 254.09 (9,310) (10,501) 1,192 237.05 262.86 25.81Back-pays (156) 0 (156) (593) 0 (593)Accident Leave 0 0 0 0 0 0Annual Leave Accrued / Taken (366) (339) (26) 31.30 31.66 (1,457) (1,358) (99) 28.11 32.73 4.62Long Service Leave 0 0 0 0 0 0Other Leave (1) 0 (1) 0.60 (108) 0 (108) 2.47 (2.47)Parental Leave 6 0 6 (13) 0 (13)Sick Leave (56) (68) 12 5.65 6.56 (214) (259) 45 5.69 6.48 0.79Statutory (incl Time in Lieu) (90) (133) 43 9.65 13.01 (36) (133) 98 2.41 3.25 0.84Training (incl CME)/ Study Lve (114) (61) (52) 10.00 5.92 (333) (235) (98) 7.56 5.92 (1.64)Sub Total (3,090) (3,248) 157 285.32 311.24 (12,063) (12,485) 423 283.29 311.23 27.95

Allowances (749) (626) (123) (3,013) (2,416) (597)Overtime (117) (48) (69) 9.69 4.69 (455) (190) (264) 10.20 4.91 (5.30)Penal (1) (7) 6 (1) (14) 13ACC Levy (17) (21) 4 (71) (82) 11Continuing Med Education 0 0 0 (0) 0 (0)Gratuities 0 0 0 (3) 0 (3)Superannuation (141) (149) 9 0.50 (577) (575) (2) 0.13 (0.13)Other benefits / costs (268) (291) 23 (1,011) (1,166) 154Total Medical Salaries (4,382) (4,390) 7 295.51 315.93 (17,194) (16,928) (266) 293.62 316.14 22.52 Reasons for the material ytd variance are shown in the following tables;


5

Medical (SMO) October 2007 Payroll Variance

Oct07 Variance YTD Variance Description Action taken / reason219 839 SMO FTE < budget Job sizing FTE (10) not yet appointed

13 116 Relocation Costs & FBT Utilised if vacancies filled 28 112 SMO Professional membership fees Budgeted per last years actuals. Timing difference budget

vs actual 8 (64) (9) (41)

(16) (68) (89) (257)

(97) (441)

Annual Leave taken < budgeted Continues to be difficult with vacancy levelSMO annual leave revaluation Due to flow on effect of increased allowances etc

increasing GRE offset FTE being under budgetOvertimeSMO backpay accrual > budgeted rates Accrual of Joint Clinical job sizing backpay significantly

higher than estimated. Confirming calc from University

SMO allowances over budget Due to prior year JOI late charge and Sabbatical cover allowances (offset by budgeted outsourced cover)

57 196

Medical (RMO) October 2007 Payroll Variance

Oct07 Variance YTD Variance Description Action taken76 355 RMO FTE < budget Continuing vacancies

Annual Leave taken < budgetedAllowances Appointing staff to fill rosterAnnual Leave revaluationRMO backpay accrual > budgeted ratesRMO overtime (Radiology, JOI, Ophthalmology and ENT main)

Increased in 07_08 budget by 5FTE. Large % due to vacancies. Full rosters budgeted.

(8) (106) (26) (70) (18) (59) (30) (137) (53) (197)

(59) (214) Significant variances continuing from last year are allowance and overtime/penalty type payments. In the RMO area (especially Radiology), breaches made in terms of the run category hours continue to incur additional allowances where there are gaps in the rosters. Variances occur as budgets are set on an expectation of a compliant roster. In Radiology, this was identified as a risk area during budget sign-off. SMO allowances continue to run significantly over budget in October as shown below. The majority however can be offset against amounts budgeted in outsourced personnel and Job sizing FTE not yet appointed. Cost Centre Jul07

VarianceAug07

VarianceSep07

VarianceOct07

VarianceTotal YTD Comment

Budget Reconciliation (30,910) (30,910) (30,910) (30,910) (123,640) Budgeted vacancies Neurology Medical Staff 173 Additional hours for job sizing + backpay for

12 mnths SMO cover. Radiology Medical Staff Additional CT and MRI sessions to reduce

waitin

(16,600) (29,280) (18,561) (64,268)

(3,205) (16,235) (24,575) (3,748) (47,764)g times + vacancy cover.

General Medicine Medical staff (1,313) (24,100) (15,766) (20,543) (61,722) Additional hours for job sizing Radiation Oncology Medical Staff Internal cover for SMO sabatical. Budget in

Outsourced Medical Laborator

(16,993) (17,671) (14,883) (8,191) (57,738)

y (Path Services) - (22,283) (10,867) 3,897 (29,253) Recharged to SCL Orthopaedics Medical Staff Additional Joints - catchup Others 20,453 3,999

Total

(8,499) (1,649) (9,521) (29,990) (49,660) (21,704) (4,710) (1,962)

(36,198) (122,107) (179,173) (96,961) (447,143) The table below breaks the variance into staff categories.

Area $'000

Month Actual $'000

Month Budget $'000

Month Variance

$'000

MonthFTE

Actual

MonthFTE

BudgetYTD Actual

$'000YTD Budget

$'000

YTD Variance

$'000

YTDFTE

Actual

YTDFTE

Budget

YTDFTE

VarianceSpecialist Medical Officer (2,384) (2,494) 111 111.44 127.56 (9,074) (9,605) 531 111.19 127.56 16.37Joint Clinical Medical (273) (256) (17) 11.48 10.90 (1,537) (1,022) (515) 11.52 10.90 (0.62)Registrars (1,305) (1,220) (85) 118.63 123.24 (4,956) (4,695) (261) 118.83 123.39 4.55House Officers (421) (420) (1) 53.96 54.23 (1,627) (1,605) (22) 52.07 54.29 2.22Total Medical Salaries (4,382) (4,390) 8 295.51 315.93 (17,194) (16,928) (266) 293.62 316.14 22.52


6

Nursing / Midwives Salaries Nursing / Midwives salaries have a favourable variance of $45k for the month and a favourable variance of $161k ytd. The following table provides the breakdown of the variance by area: Area $'000 Month

Actual $'000

Month Budget $'000

Month Variance

$'000

MonthFTE

Actual

MonthFTE

Budget

YTD Actual $'000

YTD Budget $'000

YTD Variance

$'000

YTDFTE

Actual

YTDFTE

Budget

YTDFTE

VarianceOrdinary (3,572) (3,847) 274 803.92 845.61 (14,257) (15,261) 1,004 812.32 845.61 33.30Back-pays (198) 0 (198) (692) 0 (692)Accident Leave (14) 0 (14) 2.89 (36) 0 (36) 2.58 (2.58)Annual Leave Accrued / Taken (461) (434) (28) 77.24 72.84 (1,753) (1,700) (53) 71.78 72.84 1.06Long Service Leave (16) (7) (9) 2.90 1.49 (41) (27) (15) 2.36 1.49 (0.87)Other Leave (12) 0 (12) 3.02 (55) 0 (55) 3.48 (3.48)Parental Leave (0) 0 (0) (10) 0 (10)Sick Leave (147) (164) 18 35.27 36.04 (662) (651) (11) 38.43 36.04 (2.39)Statutory (incl Time in Lieu) (129) (173) 44 28.18 38.06 (377) (687) 310 21.23 38.06 16.83Training (incl CME)/ Study Lve (74) (50) (24) 18.93 10.44 (330) (198) (131) 19.27 10.44 (8.83)Sub Total (4,623) (4,674) 52 972.35 1004.48 (18,211) (18,524) 313 971.43 1004.48 33.05

Allowances (490) (579) 90 (2,144) (2,298) 154Overtime (118) (46) (72) 16.84 7.32 (498) (181) (317) 16.70 7.32 (9.38)Penal (96) (81) (16) (96) (81) (15)ACC Levy (36) (44) 8 (149) (173) 24Gratuities 0 0 0 (31) 0 (31)Superannuation (22) (23) 1 (83) (90) 7Other benefits / costs (60) (43) (17) (146) (172) 26Total Nursing Salaries (5,445) (5,490) 45 989.19 1011.80 (21,359) (21,519) 161 988.13 1011.80 23.67 The major components of the ytd variance are; Nursing October 2007 Payroll Variance

Oct07 Variance YTD Variance Description Action taken 149 600 FTE being less than budget Recruitment drive to try and fill vacancies. Budgeted for 13

vacancies. 90 154 Allowances Due to a significant number of FTE vacancies & double up

of PDRP budget (102) (227) (72) (317)

Nursing MECA Accrual at rate > budgeted Overtime Increased budgeted overtime however excess due to

vacancy level.- Gratuities Not budgeted

65 179 (31)

The main areas driving the October variance of $45k are;

• Overtime - this has exceeded budget consistently each month offset by FTE vacancies. • Accruals are being made for awards settling higher than those set in the budget. Currently

however on a ytd basis, these are more than offset by FTE variances and associated favourable allowances.

• Allowances in October are $90k favourable to budget reversing last months unfavourable trend. Based on the average ytd FTE position, we would expect the year to date allowances to be approx $50k under budget (budgeted allowances / FTE = $560/mnth), so the actual year to date favourable variance of $154k does not correlate. Contributing to this favourable variance are Nursing PDRP allowances which were budgeted twice in error. The payroll accrual process has been revisited, and while the unpaid days accrual is still a manual process (ie not calculated via payroll system), we are increasing the accuracy of the accrual by basing it on a previous pay period with similar characteristics (eg same number weekend shifts etc). It should be noted however that it will always remain an estimate and there will always be a degree of timing differences from one period to the next.


7

Allied Health Area $'000 Month

Actual $'000

Month Budget $'000

Month Variance

$'000

MonthFTE

Actual

MonthFTE

Budget

YTD Actual $'000

YTD Budget $'000

YTD Variance

$'000

YTDFTE

Actual

YTDFTE

Budget

YTDFTE

VarianceOrdinary (1,796) (1,857) 61 392.11 416.96 (6,880) (7,360) 480 397.14 416.96 19.82Back-pays (36) 0 (36) (130) 0 (130)Accident Leave 0 0 0 (1) 0 (1) 0.05 (0.05)Annual Leave Accrued / Taken (194) (161) (33) 30.02 32.72 (784) (637) (147) 28.80 32.72 3.92Long Service Leave (4) 0 (4) 0.50 (7) 0 (7) 0.31 (0.31)Other Leave (10) 0 (10) 1.84 (28) 0 (28) 1.51 (1.51)Parental Leave (6) 0 (6) (6) 0 (6)Sick Leave (61) (42) (19) 14.34 9.40 (288) (165) (122) 17.04 9.40 (7.64)Statutory (incl Time in Lieu) (18) (92) 74 4.13 20.59 (25) (364) 338 1.49 20.59 19.10Training (incl CME)/ Study Lve (39) (17) (23) 8.26 3.77 (121) (66) (55) 6.39 3.77 (2.62)Sub Total (2,164) (2,168) 4 451.20 483.44 (8,269) (8,591) 323 452.73 483.44 30.71

Allowances (61) (60) (1) (233) (237) 5Overtime (65) (39) (26) 7.43 5.18 (229) (153) (76) 7.16 5.18 (1.98)Penal (1) (2) 1 (1) (9) 8ACC Levy (12) (19) 8 (56) (77) 21Gratuities (38) 0 (38) (38) 0 (38)Superannuation (8) (8) (0) (32) (33) 1Other Benefits / Costs (57) (51) (6) (191) (202) 11

Total Allied Salaries (2,406) (2,347) (59) 458.63 488.62 (9,048) (9,303) 255 459.89 488.62 28.74 FTE was under budget for the month by 30 FTE, however this doesn’t correlate to the $59k unfavourable variance. An analysis of this variance shows the following reasons for this;

• Budgets phased incorrectly as described above – estimated monthly impact $77k, changing the monthly variance to $18k favourable. YTD impact minimal.

Other reasons for the Allied Health variance include;

• Gratuities not budgeted $38k • Awards settled or monthly accruals in expectation of settlement being higher than the 2.6%

budgeted (eg MRT’s) • Overtime continues to exceed budget, a reflection of the vacancy level. • As reported last month, sick leave continues to exceed budget due to a high level of long term

sick leave.


8

Support Salaries Area $'000 Month

Actual $'000

Month Budget $'000

Month Variance

$'000

MonthFTE

Actual

MonthFTE

Budget

YTD Actual $'000

YTD Budget $'000

YTD Variance

$'000

YTDFTE

Actual

YTDFTE

Budget

YTDFTE

VarianceOrdinary (322) (326) 4 111.30 113.59 (1,257) (1,292) 35 112.54 113.59 1.05Back-pays (6) 0 (6) (51) 0 (51)Accident Leave (3) 0 (3) 1.00 (11) 0 (11) 1.02 (1.02)Annual Leave Taken (36) (30) (6) 12.02 8.69 (145) (119) (27) 9.70 8.69 (1.01)Long Service Leave 0 0 0 0 0 0Other Leave (1) 0 (1) 0.14 (4) 0 (4) 0.38 (0.38)Sick Leave (9) (7) (1) 3.09 2.50 (49) (29) (21) 4.28 2.50 (1.78)Statutory (incl Time in Lieu) (6) (16) 10 2.36 5.47 (20) (63) 43 1.99 5.47 3.48Training (incl CME)/ Study Lve (0) (3) 3 0.01 1.02 (0) (11) 11 0.03 1.02 0.99Sub Total (382) (382) 0 129.92 131.27 (1,538) (1,514) (23) 129.94 131.27 1.33

Allowances (39) (42) 3 (157) (167) 10Overtime (9) (8) (2) 1.89 1.43 (32) (30) (2) 1.70 1.43 (0.27)Penal (3) (1) (2) (3) (2) (1)ACC Levy (9) (4) (6) (21) (15) (6)Gratuities 0 0 0 0 0 0Superannuation (1) (1) 0 (4) (4) 0Other Benefits / Costs 0 (5) 5 (3) (21) 18

Total Allied Salaries (444) (443) (2) 131.81 132.70 (1,757) (1,753) (4) 131.64 132.70 1.06 This group is quite close to the budgeted amount, the $ saving due to the small favourable FTE variance being offset by backpays and leave taken at different levels to budgeted. YTD sick leave is significantly over budget for this staff type as well. Management Administration The favourable monthly $35k variance is due both to a favourable variance in annual leave for the month (taken > budgeted) combined with lower than expected course fees. It is however understated due to the budget phasing discrepancy explained above. The favourable ytd variance continues to be driven by variations in rates / FTE and course fees partially offset by unfavourable annual leave variations caused by leave not being taken up to levels budgeted and leave revaluations. Area $'000 Month

Actual $'000

Month Budget $'000

Month Variance

$'000

MonthFTE

Actual

MonthFTE

Budget

YTD Actual $'000

YTD Budget $'000

YTD Variance

$'000

YTDFTE

Actual

YTDFTE

Budget

YTDFTE

VarianceOrdinary (1,556) (1,518) (38) 371.93 366.73 (6,041) (6,020) (21) 377.81 366.73 (11.07)Back-pays (13) (9) (4) (95) (35) (60)Accident Leave 1 0 1 (2) 0 (2) 0.19 (0.19)Annual Leave Accrued / Taken (135) (141) 6 36.11 29.11 (586) (560) (26) 26.04 29.11 3.08Long Service Leave (8) 0 (8) 0.85 (22) 0 (22) 0.90 (0.90)Parental Leave (6) 0 (6) (6) 0 (6)Other Leave (4) 0 (4) 0.71 (15) 0 (15) 0.98 (0.98)Sick Leave (35) (35) (1) 9.89 8.46 (192) (137) (54) 13.37 8.46 (4.91)Statutory (incl Time in Lieu) (2) (76) 73 0.41 18.08 (5) (301) 296 0.11 18.08 17.97Training (incl CME)/ Study Lve (9) (14) 5 1.62 3.53 (33) (55) 22 1.43 3.53 2.10Sub Total (1,768) (1,792) 25 421.52 425.91 (6,998) (7,109) 112 420.83 425.91 5.09

Allowances (37) (31) (5) (141) (125) (16)Overtime (20) (4) (15) 3.31 1.09 (60) (17) (42) 2.91 1.09 (1.82)Penal 0 (0) 0 0 (2) 2ACC Levy (13) (16) 3 (48) (63) 15Gratuities 0 0 0 (13) 0 (13)Superannuation (9) (7) (2) (34) (29) (6)Other Benefits / Costs (15) (44) 29 (56) (174) 119

Total Allied Salaries (1,860) (1,895) 35 424.83 427.00 (7,348) (7,518) 170 423.74 427.00 3.27

Area $'000

Month Actual $'000

Month Budget $'000

Month Variance

$'000

MonthFTE

Actual

MonthFTE

BudgetYTD Actual

$'000YTD Budget

$'000

YTD Variance

$'000

YTDFTE

Actual

YTDFTE

Budget

YTDFTE

VarianceExecutive Staff (43) (105) 62 4.24 6.17 (283) (418) 134 4.58 6.17 1.60Managers (435) (411) (24) 53.61 52.65 (1,654) (1,629) (25) 53.47 52.65 (0.82)Supervisors & Professional Staff (299) (323) 25 45.84 49.15 (1,199) (1,282) 83 46.34 49.15 2.82Admin, Clerical & Secretarial Staff (1,084) (1,056) (28) 321.14 319.03 (4,213) (4,190) (23) 319.35 319.03 (0.32)

0 0Total Management / Admin Salaries (1,860) (1,895) 35 424.83 427.00 (7,348) (7,518) 170 423.74 427.00 3.26


9

4. Expenditure

Outsourced Outsourced costs are $112k over budget for the month and $248k YTD. Outsourced SMOs although favourable ytd, contain budgets for sabbatical leave cover, the costs often being met in-house as locum cover cannot be sourced. Within this favourable variance is Obstetrics and Gynaecology which is unfavourable for the month by $35k and YTD by $106k. Partial offsets for this exist as FTE has been budgeted, however it doesn’t cover this amount. Outsourced RMO’s drive a large % of this unfavourable variance, being $61k over budget for the month and $186k YTD. The 3 areas driving this variance are;

• Obstetrics and Gynaecology have incurred $36k of the ytd unfavourable variance being locum cover for vacancies. While there is some offset therefore in personnel costs, the rates charged for this cover exceeds budgeted salaries.

• Orthopaedics contribute $26k toward the ytd variance • General Surgery makes up $54k of the unfavourable variance.

There continues to be an overflow of patients from 1A to Ashburn Clinic, this contributing $33k to the monthly unfavourable variance and $92k to the YTD variance. Clinical Supplies This budget is over spent by $613k ytd ($288k unfavourable for the month), broken down as follows;

Description Oct07 Variance

Fav/(Unfav) $000's

YTD Variance Fav/(Unfav)

$000's

YTD Variance as % YTD Budget

Treatment Disposables 49 207 4%Diagnostic Supplies (15) (45) (9%)Instruments and Equipment 56 89 3%Patient Appliances (5) (36) (7%)Implants and Prostheses (138) (200) (11%)Pharmaceuticals (167) (577) (15%)Other Clinical and Client Costs (68) (50) (15%)

Total (288) (613) The most significant YTD costs within these groups are:

• Blood products costs, $165k favourable • Catheters, $101k favourable • Sutures, $57k unfavourable • Contrast Media - $43k favourable • Service contracts, $104k favourable • Hips and Knee Prostheses, $155k unfavourable • Cardiac Implants, $70k unfavourable • Oral Implants, $50k unfavourable • Spinal Plates and Screws, $78k favourable • Pharmaceutical costs, $577k unfavourable

Blood costs continue to be favourable on both a monthly and ytd basis. These are high cost and with certain components variable in nature as their usage may be linked to particular patients who require


10

hospitalisation at uneven intervals. These costs are therefore budgeted evenly across the year as we are unable to forecast when procedures requiring these products will occur. Over the course of a year however on average the budget is expected to be utilised . Catheters. This favourable variance is being driven by bare metal stents being inserted at lower volumes than last year. Sutures. A larger than usual purchase of disposable clinical staplers ($22k) has partially contributed to this account exceeding budget year to date. This is a timing difference as the stocks will be used up over approximately 5 months. This variance is on average $7k a month higher than last year even excluding the stapler purchase, however we would expect to see a dip over the Christmas period as Theatres lists are reduced. Service contracts are understated by $24k due to a payment posted to an incorrect account for MRI servicing. This will be corrected in November. The balance of this favourable variance is due to the budget including costs for the new CT scanner which is still under warranty The unfavourable Prostheses variance is driven by three areas;

• Cardiac Implants which are $70k unfavourable year to date due to volumes being completed at a much higher level than budgeted (mostly in August),

• Orthopaedic Joints have a material unfavourable budget variance YTD despite volumes being on budget (154 procedures have been completed against a budgeted 153 year to date) The majority of this overspend is in Hips $132k with Knees contributing $23k. The monthly result contributes to this being $117k unfavourable and although there has been a catch up of volumes in October (48 procedures completed against a budgeted 38), the $ variance does not correlate.

We are currently working alongside the service to establish the reason for the major variance and will provide a full explanation including forecasting any likely ongoing variances in next months report.

• Oral Implants are $50k unfavourable ytd over 50% of this occurring in September ($28k). These can be very high cost procedures, one procedure in September costing $20k..

Pharmaceuticals are unfavourable to budget by $610k ytd and $137k monthly. The same areas continue to drive this variance, with approx 60% of the ytd variance being offset by additional revenue.


Fav/(Unfav) $000's


$000's

Pharmacy - Patient services 40 (36)

Pharmacy - Production (57) (231)

Pharmacy - Outpatients (42) (130)

Oncology Outpatients (78) (213)

Total (137) (610)

Comments

Due to Stock writeoffs in excess of budget plus rebates not received to budgetOffsetting revenue from Southland DHB. $60k favourable Oct and $234k YTD.Offset by scrip revenue from HBL exceeding budget - $162k favourable YTDIncreased chemo volumes + non budgeted high cost drugs (eg Herceptin)

The increase in the Oncology Outpatient drug spend is primarily due to additional cancer drugs that the Ministry of Health is now funding. Examples include Trastuzumab (Herceptin), Docetaxel (also a breast cancer drug used in conjunction with Herceptin) and Paclitaxel (Taxol - used for lung, ovarian and breast cancer). At the time of preparation of the 07-08 budgets it was not known that the Ministry of Health was going expand the usage of these drugs so the budget did not include an allowance for their increased usage. The full year budget variance is not expected to exceed the four months extrapolated variance of $640k as a backlog of patients entitled to the expanded use of the drugs has occurred in the 4 months to October 2007. Offsetting the variance will be any additional funding received. We are currently trying to quantify this.


11

Infrastructure & Non Clinical Supplies This budget is over spent by $217k YTD ($56k unfavourable monthly), broken down as follows;


Fav/(Unfav) $000's


$000's

YTD Variance as % YTD Budget

Hotel Services, Laundry and Cleaning 9 163 6%Facilities 51 (64) (2%)Transport (4) (12) (2%)IT Systems and Telecommunications (41) (192) (10%)Interest and Financing Charges (8) 12 0%Professional Fees and Expenses (52) (127) (42%)Other Operating Expenses (11) 4 0%Internal Allocations 0 0

Total (56) (217) The most significant YTD costs within these groups are:

• Patient meals $67k favourable ytd • Maintenance $49k unfavourable ytd • Utilities (electricity, steam etc) - $51k favourable ytd • IT Equipment depreciation - $85k unfavourable ytd • IT Equipment leases - $98k unfavourable ytd • Financing component of Operating Leases - $111k unfavourable ytd • Interest and Capital charge $122k favourable ytd • Legal Fees $128k unfavourable ytd

Patient meals continue to be favourable by a constant amount monthly leading to the favourable ytd variance of $67k. Assuming this continues over the year, this will extrapolate into an annual budgeted saving of approx. $200k. Facilities costs are $64k over budget ytd, however $51k favourable for the month, both variances driven by maintenance costs. The increase in maintenance costs experienced in August has not continued as expected however when looking into this further, it is the unspent deferred maintenance budget that is creating this favourable variance. The Manager Building and Property has indicated that spending against the deferred maintenance budget will soon commence so we would expect to see expenditure exceed budget over the coming months. We do not expect there to be any savings in this area on an annual basis. Utilities is favourable by $48k this month ($51k YTD) due to lower than expected power charges in September which were accrued at the same level in October. Partially offsetting this favourable variance is Steam costs which are approx $10k over budget each month. As forecast last month, the unfavourable variance in IT Leases has reduced this month to $11k ($98k ytd). Based on this month, IT leases will be over budget by approx $200k at year end based on current leasing levels. We have confirmed that the budget was set at the Nov-06 levels when the first budget was run, adjustments not being made for increases in leasing after this date, and there are no offsets to this. The financing component of operating leases was not budgeted in error last year due to an oversight. We therefore expect the unfavourable ytd variance of $111k to continue increasing. The Linac is now adding approx $30k /month to this unfavourable variance. The year end impact therefore assuming the same asset base will be a negative variance of approx. $470k. Legal fees continue to run over budget from the prior year reflecting the IS investigation still under way.


12

5. Mental Health

The mental health ringfence component is calculated from net surplus or deficit “underspend” within the funder-arm results. From a provider aspect, the mental health result is expected to break-even over time. However variations of funded FTE compared to actual numbers employed, if significantly different can lead to potential funding “washup” between the mental health funder and provider. If positions are unfilled but funded it could reasonably be expected that a “surplus” will result that should be clawed back and go into the calculation of underspend to carry into the next financial year. On the other hand if the mental health provider is showing a budgeted deficit, then the expectation is that the provider and funder will agree how to manage the shortfall. The table below shows a summary of the mental health result for October and the appendices include the detailed financial performance statement for mental health.

AnnualActual Budget Variance Actual Budget Variance Budget$' 000 $' 000 $' 000 $' 000 $' 000 $' 000 $' 000

3,027 3,041 (14) Revenue 12,113 12,165 (52) 36,495(2,176) (2,272) 96 Less Personnel Costs (8,406) (8,909) 503 (26,596)

(346) (301) (45) Less Other Costs (1,348) (1,237) (111) (3,636)505 468 37 Contribution Margin 2,359 2,019 340 6,263

(572) (575) 3 Overhead Allocation (2,289) (2,298) 9 (6,895)(67) (107) 40 Net Surplus / (Deficit) 70 (279) 349 (632)

Month Year to Date

Despite the budgeted deficit, the ytd position continues to be in surplus due to favourable personnel costs driven by vacancies.


13

6. Capital

As reported in the District Annual Plan, capital expenditure for the 2007/08 year has been limited to $17.9m including leased assets committed to in previous years. The table below summarises the planned purchasing;

Otago District Health Board Capital Summary - October 07

Capital Budget $'000 2007/08 2008/09 2009/10DAP Plan Committed Plan Plan

Buildings and PlantBuildings and Plant 4,760 5,381 1,574 Master Site Planning Redevelopment 400 400 147

5,160 5,781 1,721 - -

Clinical EquipmentClinical Equipment 6,000 15,072 5,835 6,000 6,000 Lease Payments for Clinical Equipment 2,581 2,097 2,097 2,467 1,898

8,581 17,169 7,932 8,467 7,898

Motor VehiclesMotor Vehicles - - -

- - - - -

Information TechnologyInformation Technology 700 700 40 800 800 IT - Patient Administration System upgrade 300 300 300 2,200 400 Lease Payments for Information Technology Assets 2,200 1,300 1,220 2,769 2,304

3,200 2,300 1,560 5,769 3,504

Other EquipmentOther Equipment 1,000 574 231 600 600

1,000 574 231 600 600

Total Expenditure 17,941 25,824 11,444 14,836 12,002

Variance to DAP - 7,883

2007/08

The detailed capital plan including prior year commitments is contained below. The planned capital expenditure in 2007/08 of $17.9m as per the DAP exceeds the budgeted free cashflow generated from the annual depreciation amount of $12.9m by $5m, the 2006/07 surplus (excluding the mental health underspend) providing some of the additional funding required. However, there continues to be major challenges prioritising the capital spend required by Service Groups to balance to what is affordable based on financial modelling. The above table shows a variance of $7.9m of which management is in the process of reviewing to either look at;

a) re- prioritising or b) gaining additional funding by debt or equity c) re-litigating the use of mental health underspend to fund the mental health facility plans d) not proceeding with some building capital unless a funding source is confirmed


14

Capital Commitments This table shows:

• assets committed to but which no cash expenditure has been incurred carried forward from prior years,

• assets committed to in the current financial year, and • the cash timing of asset purchases highlighting the continuing lease commitment in out years

The above table shows a 2007/08 plan of $25.8m of items. $11.4m of this has already been committed leaving a residual $14.4m of expenditure with a capital availability of $6.5m giving a gap of $7.9m as shown in the above table. The table below shows the cash short fall of $5.74 million on this years budgeted capital spend.

Capital Plan $000's

Current Year Commitments and Purchases 11,444

Items committed from 2006/07 financial year 3,097

14,541

Less Residual Items on Request List 14,380

Total Potential Capital Expenditure 28,921

Compared to Cash Availability

Capital (capital purchases plus leasing) from Cashflow statement 17,759

Plus capital Cashflow not used from 2006/07 year 5,424

Total Capital Cash Available 23,183

Shortfall (5,738)

ASSET Group Plan Approved

MAJOR BUILDINGSCSB Fire Alarm Upgrade 126,000

Radiology Conference Room 121,767Other 667,343Total Major Buildings 0 915,110

CLINICAL PLANT & EQUIPMENTSteris Amsco Surgical Table-Battery Operated X 2 134,000Digital mammography System 236,000Anaesthetic machine & monitor 355,000

MINOR CAPITAL 1,148,257

Total Clinical Plant & Equipment 0 1,873,257

OTHER EQUIPMENTOrganisational Purchases 58,959

Total Other Equipment 0 58,959

INFORMATION TECHNOLOGY AND COMMUNICATIONSInformation Technology 249,715

Total IT 0 249,715

GRAND TOTAL PRIOR YEAR CARRY FORWARD 0 3,097,041

2006/07 Committed

CAPITAL EXPENDITURE PLAN - YTD OCTOBER 2007OTAGO DISTRICT HEALTH BOARD

OTAGO DISTRICT HEALTH BOARDCAPITAL EXPENDITURE PLAN - CARRY FORWARD FROM 2006/07


15

ASSET Group Plan Approved

MAJOR BUILDINGSLaboratory Facility upgrade Diag. & Support 1,700,000 1,287,291Alterations to meet Pacs Diag. & Support 200,000Oncology Building Fire upgrade Building & Property 150,000 15,880Nuclear Medicine Diag. & Support 95,000 131,179CEO Corporate - Finance DHB Corporate 859,000 9,000Ward 1A relocation to Wakari Comm & Mental 1,200,000 60,000Transport & Rehab Relocate - Decanting Building & Property 550,000 39,154Wakari Hospital - Reticulation Upgrade Building & Property 520,000 31,000DSA Dunedin Diag. & Support 100,000Orderlies relocation Diag. & Support 7,000

Master Site Planning Redvelopment 400,000 147,400

Total Major Buildings 5,781,000 1,720,904

CLINICAL PLANT & EQUIPMENTImpac Rad Onc 118,000RFA System Rad Onc 200,000Anaesthetic machine & monitor Anaesthesia 122,000 118,300Pool Tools Main Theatre 160,000 63,308Camera, light source tower MOT 200,000TKR/THR navigation system MOT 250,000 12,500 Balance from Zeiss ENT Microscope Operating Tables x 2 MOT 127,870 Replaces TKR/THR Navigation System Spinal table MOT 200,000Washer MOT 100,000 100,917Plethysomograph Respiratory 130,000Ward Block North Sub Controls Building & Property 150,000Autoclave CSSD 140,000 108,427Batch Washer CSSD 106,447 Replaces Robotic Dispensing Autoclave x 2 CSSD 216,854 Replaces Robotic Dispensing Isolator for APU Pharmacy 150,000Image Intensifier MOT Radiology 160,000US replacement Radiology 240,000DSA machine Radiology 1,500,000Room 2 - General/Fluroscopy Radiology 350,000

Robotic dispensing Pharmacy 500,000 Replaced Replaced by Batch Washers and Autoclaves

MRI Workstation Radiology 180,000Food Trollies HOT/COLD Kitchen 410,000 406,975Videostrobscope Therapies 76,710 76,710

PACS/RIS - (confirmation of financing next month) Radiology 3,446,000 3,446,000

MINOR CAPITAL Diagnostic & Support 1,221,825 153,238Emergency, Medicine & Surgery 3,742,835 656,275Community & Mental Health 432,130 35,410Womens, Child & Public Health 852,445 206,080Medical Equipment Pool 40,000

Total Clinical Plant & Equipment 15,071,945 5,835,311

OTHER EQUIPMENTBuilding & Property 450,000 189,243DHB Corporate 16,000 27,830Provider Corporate 48,000 13,538Organisational Purchases 60,000

Total Other Equipment 574,000 230,611

INFORMATION TECHNOLOGY AND COMMUNICATIONSInformation Technology 700,000 40,100IT-Patient Admin system upgrade 300,000 300,000 First years commitment Lease payments for IT assets 1,300,000 1,220,000 Excl interest

Total IT 2,300,000 1,560,100

LEASE PAYMENTS FOR CLINICAL EQUIPMENTVarian Linac IX - current lease Rad Onc 830,000 830,000 Excl interest CT Scanner- current lease Radiology 279,000 279,000 Excl interest Digital Mammo - current lease Breastscreening 326,000 326,000 Excl interest MRI 378,000 378,000 Excl interest Cath Lab 284,000 284,000 Excl interest

Total Lease Payments Clinical Equipment 2,097,000 2,097,000

GRAND TOTAL CURRENT YEAR 25,823,945 11,443,926

Removed as Part of ReviewFluoro Room Oamaru Diag. & Support 300,000 No longer providing service

2007/08

OTAGO DISTRICT HEALTH BOARDCAPITAL EXPENDITURE PLAN - FOR THE YEAR ENDED 30 JUNE 2008


16

7. Finance Updates

• Budgets 2008-09

ODHB Business Analysts have prepared new budget models on behalf of the Southern Alliance and had a training day with their Southland counterparts both reviewing the models and instructing them on there use. Budgeting has now commenced within ODHB with a plan to get the first draft out to the organisation to start reviewing by 3rd December 2007. The first draft will be based on assumptions regarding price increases and salary increases, these being updated once the Ministers Funding advice is received. FTE will be based on approved positions currently in the system, nursing rosters having already been reviewed and updated by the Nursing Team together with the responsible Managers. The two weeks leading up the Christmas will see the Analysts meeting with as many Service Managers / Budget Holders as possible to review their budgets, updating them for any change in practice likely to occur. The CFO will receive the first cut of the ODHB Provider Budget mid January.

• Contracts Approval Process and Associated Database

A project to adopt a centralised contracts approval process has been under way to address risks raised by the Finance Audit and Risk Committee. Specific changes will see;

• Centralised storage of all original contracts. • Secure storage via purchase of a fireproof / lockable cabinet.

• An organisational formalised “complete” sign-off process that ensures all contracts are

reviewed and signed off with the correct level of authorisation. • The development of an intranet based contracts database that will have key contract

details loaded for quick review, plus a scanned copy of the original contract for viewing as necessary.

• A reporting suite running from the contracts database, allowing staff with access to print

reports showing contracts due to expire / total contracts under their authority. Reports will also be developed for Board purposes and year end requirements.

To date, all the above points have been completed. A 0.5FTE approved as part of this years budget (Finance Administration Support) has been working alongside staff in IT to test and develop the database. A screen dump of the summary screen within the intranet model is shown below;


17

Over the coming month all existing contracts will be loaded into the database with all new contracts going through the new approval process.

• Electronic Invoice Approval System The Shared Transactional Centre is currently implementing a modification to the Oracle Financial System that will automate the invoice approval workflow. Under the current system, invoices are manually scanned and sent via email to budget holders. Once they email back confirmation, the invoice is processed manually into Oracle. Under the new system, the scanned image will sit within Oracle, the invoice being sent to staff with appropriate levels of authority to approve. This is based on a preset hierarchy loaded into Oracle as per the Delegation of Authority Policy. Rollout of this system is due to be commenced mid December.


18

8. Forecast

The following forecast has been prepared based on the October YTD result.

Year-End AnnualActual Budget Variance Forecast Budget Variance$' 000 $' 000 $' 000 $' 000 $' 000 $' 000

Revenue 89,387 88,117 1,270 267,014 264,052 2,962

Less Personnel Costs:Medical (16,951) (16,928) (23) (50,427) (50,223) (204)

(21,359) (21,519) (64,763) (65,022) (9,048) (9,303) (26,777) (27,554) (1,757) (1,753) (4) (5,249) (5,196) (53) (7,348) (7,518) (21,937) (22,257)

(56,463) (57,021) (169,153) (170,252)

(1,949) (1,702) (247) (5,461) (5,047) (414) (16,460) (15,847) (613) (49,242) (47,250) (1,992) (13,528) (13,312) (216) (41,417) (40,034) (1,383)

(192) (192) (575) (575) (32,129) (31,053) (1,076) (96,695) (92,906) (3,789)

Nursing 160 259 Allied 255 777 SupportManagement / Admin 170 320

558 1,099

Less Other Costs:Outsourced CostsClinical SuppliesInfrastructure CostsInternal allocations - 0

Net Surplus / (Deficit) 795 43 752 1,167 894 273

Year to Date

This shows a predicted surplus of $1.2m against a budget surplus of $0.9m. This forecast is calculated by extrapolating the October ytd result adjusting for known / predicted deviations from this. Due to the variable nature of some of the revenue / expense items and the fact that we’re only 4 months into the current financial year, the recognition of some potential gains may be conservative. An example of favourable variances where a simple extrapolation is not used to forecast are;

• Mammography revenue - $479k favourable ytd. Forecast $600k year end due to factors such as

i. slow down over Christmas not budgeted. ii. known future staff vacancies which will reduce capacity. iii. increasing machine outages. iv. pool of women to screen at current increased rate not endless.

• Blood - $165k favourable ytd. Forecast to be on budget due to variable nature of spend. • Deferred Maintenance - $100k favourable ytd. Major projects soon to commence that

will utilise this unspent budget by year end so none of this recognised in forecast.


19

Revenue Of the projected $2.9m favourable revenue variation, $1.1m of costs exist in pharmaceuticals (clinical supplies). The bulk of the residual variance is attributable to additional funder contracts $0.4m, mammography overdelivery $0.6m and interest earnings $0.7m. Personnel Personnel costs have a forecast $1.1m favourable variance and assume a reduction of 20% of current vacancies. Increases for award settlements follow current %’s accrued accrual % amounts and all annual leave balances earned in the year are presumed taken.

Expenditure Outsourced This $0.4m unfavourable variance is due to an assumed unfavourable RMO variance of $0.2m and extra charges for access to Ashburn clinic of $0.2m.

Clinical Supplies This is projected to be unfavourable by $2m; however $1.1m of this is in Pharmaceuticals for which a revenue offset exists. Other unfavourable variances predicted include:

• Oncology drugs, $0.6m • Cardiac implants, $0.2m • Hips & Knees Implants, $0.2m (subject to current review) • Sutures, $0.1m • Minor clinical equipment purchases, $0.1m

These are offset partially by favourable forecast variances in Catheters, Contrast media and Service Contracts of $0.1m each. Infrastructure Infrastructure costs are projected to be $1.4m unfavourable, prime areas of potential unfavourable variance include:

• Maintenance, $0.2m • Legal fees, $0.4m (alleged fraud costs) • Financing costs of Leases, $0.5m • IT depreciation/leasing, $0.5m

Partially offsetting these are favourable forecast variances in Cleaning and Patient Meals of $0.1m each.


20

9. Financial Statements


21

Otago District Health BoardCurrent Previous Monthly Current Annual

Part 4: DHB Consolidated Actual Month Actual Movement Budget Budget

$(000) $(000) $(000) $(000) $(000)

Part 4.2: Statement of Financial Position

Current AssetsPetty Cash 9 9 - 10 10 Bank Account 19 (1,498) 1,517 28,266 22,144 Short Term Investments 29,050 32,850 (3,800) - - Short Term Investments - Trusts - - - - - Prepayments 928 785 143 660 660 Accounts Receivable – Control Account 16,304 9,816 6,488 8,563 8,518 Provision for Doubtful Debts (105) (105) - (57) (57) Accrued Debtors 3,577 7,460 (3,883) - - Inventory / Stock 3,031 2,997 34 2,996 2,996 Provision for Obsolete Stock - - - - Assets Held for Resale - - - -

Current Assets Total 52,813 52,314 499 40,438 34,271

Non Current AssetsLand, Buildings & Plant 124,755 124,099 656 123,839 127,279 Clinical Equipment 68,759 64,821 3,938 75,895 79,895 Other Equipment ( incl Finance Leases ) 8,725 8,709 16 8,879 9,545 Information Technology 14,724 14,694 30 14,883 17,016 Motor Vehicles 201 201 - 201 201 Trust Properties - - - - - Provision Depreciation – Buildings & Plant (5,363) (5,019) (344) (5,367) (8,092) Provision Depreciation – Clinical Equipment (51,557) (51,102) (455) (53,920) (57,561) Provision Depreciation – Other Equipment (7,234) (7,185) (49) (7,328) (7,811) Provision Depreciation – Information Technology (10,452) (10,263) (189) (11,438) (13,109) Provision Depreciation – Motor Vehicles (169) (168) (1) (170) (175) Provision Depreciation – Trust Properties - - - - - WIP 1,366 1,988 (622) 3,025 3,025 Investment in Subsidiaries 68 68 - 31 31 Investment in Associates - - - - - Long Term Investments - - - - - Long Term Investments – Trusts - - - - -

Non Current Assets Total 143,823 140,843 2,980 148,530 150,244

Current LiabilitiesAccounts Payable Control Account (3,263) (3,340) 77 (25,272) (25,821) Accrued Creditors (22,667) (19,568) (3,099) - - Income Received in Advance (113) (113) - (113) (113) Capital Charge Payable (480) (930) 450 (1,708) (1,440) GST & Tax Provisions (account codes: 9530-9550; 9 (2,031) (1,749) (282) 1,900 3,009 Unclaimed Creditors Monies - - - - - Term Loans – Finance Leases (current portion) (2,577) (2,440) (137) (1,618) (1,618) Term Loans – Private (current portion) - - - - - Term Loans – Crown (current portion) (102) (102) - (102) (102) Payroll Accrual & Clearing Accounts (excl tax - acco (10,852) (11,044) 192 (8,710) (7,881) Employee Entitlement Provisions (18,838) (19,352) 514 (17,480) (17,480)

Current Liabilities Total (60,923) (58,638) (2,285) (53,104) (51,446)

WORKING CAPITAL (8,110) (6,324) (1,786) (12,666) (17,175)

NET FUNDS EMPLOYED 135,713 134,519 1,194 135,865 133,069

Non-Current LiabilitiesLong Service Leave – Non-current portion (951) (951) - (1,252) (1,252) Retirement Gratuities – Non-current portion (5,764) (5,764) - (6,167) (6,167) Employee-Entitlement Provisions (603) (603) - (705) (705) Term Loans – Finance Leases (non-current portion) (6,739) (4,141) (2,598) (9,915) (8,777) Term Loans – Private (non-current portion) - - - - - Term Loans – Crown (non-current portion) (49,746) (49,746) - (47,436) (47,208) Custodial Funds (2,313) (2,279) (34) (2,199) (2,199)

Non-Current Liabilities Total (66,116) (63,484) (2,632) (67,674) (66,308)

Crown Equity

Crown Equity (53,244) (53,244) - (53,534) (53,534) Trust and Special Funds (no restricted use) - - - - - Revaluation Reserve (49,593) (49,593) - (49,593) (49,593) Revaluation Reserve – Trust Assets (0) (0) - (0) - Other Reserves 417 417 - - - Retained Earnings - DHB Governance & Funding Ad 1,404 1,457 (53) 1,923 2,124 Retained Earnings - DHB Provider 39,513 39,237 276 39,010 38,160

October 2007

ODHB Oct07 BS Cashflow.XLS Page 1 of 3 13:43 23/11/2007

Retained Earnings - DHB Funds (8,093) (9,308) 1,215 (5,996) (3,917) Crown Equity Total (69,597) (71,035) 1,438 (68,191) (66,761)

NET FUNDS EMPLOYED (135,713) (134,519) (1,194) (135,865) (133,069)

- -

Otago District Health BoardCurrent Previous Monthly Current Annual

Part 4: DHB Consolidated Actual Month Actual Movement Budget Budget

$(000) $(000) $(000) $(000) $(000)

Part 4.3: Statement of Movement in Equity

Total equity at beginning of the period (71,035) (69,969) (1,066) (69,029) (70,083) Net Results for the period 1,438 (1,065) 2,504 838 3,323 Revaluation of Fixed Assets (0) (0) - - - Equity Injections - - - - - Other - - - - - Movement in Trust and Special Funds - - - - - Total Equity at end of the period (69,597) (71,035) 1,438 (68,191) (66,761)

Annual

Part 4: DHB Consolidated Actual Budget Variance Actual Budget Variance Budget

$(000) $(000) $(000) $(000) $(000) $(000) $(000)

Part 4.4: Statement of Cashflows

Operating ActivitiesGovernment and Crown Agency Revenue 36,204 38,118 (1,914) 154,939 152,706 2,234 457,705 Other Revenue Received 1,620 1,505 115 6,442 6,020 422 17,756

Total Receipts 37,825 39,623 (1,799) 161,381 158,726 2,656 475,461

Payments for Personnel (15,375) (13,410) (1,965) (57,151) (58,651) 1,500 (173,923) Payments for Supplies (3,778) (5,869) 2,091 (26,813) (23,666) (3,147) (71,906) Interest Paid (537) (253) (284) (1,433) (1,170) (263) (3,194) Capital Charge Paid (958) (21) (936) (1,897) (2,384) 487 (6,245) GST (Net) & Tax 281 178 104 (158) (1,350) 1,192 (2,460) Payment to own DHB Provider (Eliminated) 0 - 0 0 - 0 - Payment to own DHB Governance & Funding Admin - - - - - - - Payments to other DHB’s (1,980) (2,252) 272 (8,268) (9,170) 902 (27,184) Payments to Providers (17,268) (15,825) (1,443) (64,080) (62,676) (1,404) (187,147)

Total Payments (39,614) (37,453) (2,162) (159,799) (159,066) (733) (472,059) -

Net Cashflow from Operating (1,790) 2,171 (3,960) 1,582 (341) 1,923 3,401

Investing ActivitiesInterest receipts 3rd party 351 217 134 1,261 869 392 2,609 Sale of Fixed Assets - - - - - -

Capital ExpenditureLand, Buildings & Plant (656) (430) (226) (1,669) (1,515) (154) (4,955) Clinical Equipment (2,873) (683) (2,190) (3,846) (3,549) (297) (9,013) Other Equipment (16) (84) 68 (72) (433) 361 (1,101) Information Technology (69) (85) 16 (353) (252) (101) (919) Motor Vehicles 0 - 0 0 - 0 -

Total Capital Expenditure (3,614) (1,282) (2,332) (5,940) (5,749) (191) (15,988)

Increase in Investments and Restricted & Trust Fund 34 - 34 34 - 34 -

Net Cashflow from Investing (3,229) (1,065) (2,164) (4,645) (4,880) 235 (13,379)

Financing ActivitiesEquity Injections - - - - - - - New DebtPrivate Sector 2,735 (155) 2,890 2,314 (633) 2,947 (1,771) CHFA - - (76) 76

Repaid DebtPrivate Sector - - - - - - CHFA - - (102) - (102) (304)

Other Non-Current Liability Movement - - - 1,256 (1,256) 1,256 Other Equity Movement - - - - - -

Net Cashflow from Financing 2,735 (155) 2,890 2,212 547 1,665 (819)

Net Cashflow (2,283) 951 (3,234) (851) (4,673) 3,823 (10,796) Plus: Cash (Opening) 31,361 27,325 4,036 29,929 32,950 (3,021) 32,950

Current Month Year to Date

October 2007


Cash (Closing) 29,078 28,276 802 29,078 28,276 802 22,154

Carry forward checkClosing Cash made up of:Balance Sheet Cash 29,078 28,276 802 29,078 28,276 802 22,154 Total Cashflow Cash (Closing) 29,078 28,276 802 29,078 28,276 802 22,154


Otago District Health BoardAnnual

Part 2: DHB Provider Actual Budget Variance Variance Actual Budget Variance Variance Budget

$(000) $(000) $(000) % $(000) $(000) $(000) % $(000)

Part 2.1: Statement of Financial Performance

REVENUEGovernment and Crown Agency sourcedMoH - Vote Health - - (0) U 0% - - (0) U 0% - MoH - Personal Health 408 253 155 F 61% 1,576 1,011 565 F 56% 3,032 MoH - Mental Health 7 7 (0) U 0% 33 29 4 F 14% 88 MoH - Public Health 479 499 (20) U (4%) 1,990 1,995 (5) U (0%) 5,985 MoH - Disability Support Services 546 533 14 F 3% 2,185 2,131 54 F 3% 6,393 Clinical Training Agency 394 413 (19) U (5%) 1,589 1,651 (63) U (4%) 4,954 Internal revenue (DHB Fund to DHB Provider) 18,765 18,686 79 F 0% 74,797 74,745 52 F 0% 224,236 Ministry of Health Revenue 20,599 20,391 208 F 1% 82,170 81,562 608 F 1% 244,687

Other GovernmentOther DHBs 178 141 37 F 26% 849 565 284 F 50% 1,376 Training Fees and Subsidies 0 8 (7) U (94%) 24 31 (6) U (20%) 89 Accident Insurance 552 556 (4) U (1%) 2,177 2,223 (46) U (2%) 6,668 Other Government 321 361 (40) U (11%) 1,367 1,444 (77) U (5%) 4,355 Government and Crown Agency sourced Total 21,650 21,456 193 F 1% 86,587 85,825 762 F 1% 257,175

Other RevenuePatient / Consumer sourced 116 109 6 F 6% 451 437 14 F 3% 1,311 Other Income 670 464 206 F 44% 2,348 1,855 493 F 27% 5,566

Other Revenue Total 786 573 213 F 37% 2,800 2,292 507 F 22% 6,877

REVENUE TOTAL 22,435 22,029 406 F 2% 89,387 88,117 1,269 F 1% 264,052

EXPENSESPersonnel costsMedical Personnel (4,382) (4,390) 8 F 0% (17,194) (16,928) (266) U (2%) (50,223) Nursing Personnel (5,445) (5,490) 45 F 1% (21,359) (21,519) 161 F 1% (65,023) Allied Health Personnel (2,406) (2,347) (59) U (3%) (9,048) (9,303) 255 F 3% (27,554) Support Personnel (444) (443) (1) U (0%) (1,757) (1,753) (4) U (0%) (5,196) Management/Administration Personnel (1,860) (1,895) 36 F 2% (7,348) (7,518) 170 F 2% (22,257) Personnel costs Total (14,537) (14,565) 28 F 0% (56,705) (57,022) 317 F 1% (170,252)

Outsourced ServicesMedical Personnel (161) (85) (76) U (90%) (559) (433) (126) U (29%) (1,240) Nursing Personnel (4) (2) (2) U (134%) (8) (7) (1) U (13%) (21) Allied Health Personnel (11) (10) (1) U (13%) (34) (41) 7 F 17% (122) Support Personnel (14) (12) (2) U (14%) (67) (47) (20) U (42%) (142) Management/Administration Personnel (21) (15) (6) U (44%) (90) (59) (31) U (52%) (177) Outsourced Clinical Services (239) (214) (25) U (12%) (943) (859) (84) U (10%) (2,581) Outsourced Corporate / Governance Services (63) (64) 1 F 2% (248) (255) 7 F 3% (765) Outsourced Services Total (513) (401) (112) U (28%) (1,949) (1,702) (248) U (15%) (5,047)

Clinical SuppliesTreatment Disposables (1,366) (1,415) 49 F 3% (5,452) (5,659) 207 F 4% (16,424) Diagnostic Supplies & Other Clinical Supplies (141) (126) (15) U (12%) (551) (506) (45) U (9%) (1,503) Instruments & Equipment (726) (781) 56 F 7% (3,036) (3,125) 89 F 3% (9,378) Patient Appliances (125) (119) (5) U (5%) (512) (476) (36) U (7%) (1,410) Implants and Prostheses (595) (456) (138) U (30%) (2,094) (1,893) (200) U (11%) (6,079) Pharmaceuticals (1,131) (965) (167) U (17%) (4,436) (3,859) (577) U (15%) (11,471) Other Clinical & Client Costs (150) (82) (68) U (82%) (379) (329) (50) U (15%) (986) Clinical Supplies Total (4,234) (3,945) (288) U (7%) (16,460) (15,847) (613) U (4%) (47,250)

Infrastructure & Non-Clinical SuppliesHotel Services, Laundry & Cleaning (668) (677) 9 F 1% (2,543) (2,706) 163 F 6% (8,119) Facilities (911) (962) 51 F 5% (3,975) (3,911) (64) U (2%) (11,500) Transport (189) (184) (4) U (2%) (750) (738) (12) U (2%) (2,213) IT Systems & Telecommunications (532) (492) (41) U (8%) (2,160) (1,968) (192) U (10%) (5,903) Interest & Financing Charges (702) (695) (8) U (1%) (2,721) (2,732) 12 F 0% (8,506) Professional Fees & Expenses (129) (76) (52) U (69%) (432) (305) (127) U (42%) (918) Other Operating Expenses (249) (238) (11) U (5%) (949) (953) 4 F 0% (2,875) Infrastructure & Non-Clinical Supplies Total (3,380) (3,324) (56) U (2%) (13,530) (13,313) (217) U (2%) (40,034)

Internal AllocationsInternal Allocation from/to DHB Governance & Admin (48) (48) 0 F (0%) (192) (192) 0 F (0%) (575) Internal Allocations Total (48) (48) 0 F (0%) (192) (192) 0 F (0%) (575)

EXPENSES TOTAL (22,712) (22,283) (429) U (2%) (88,836) (88,075) (760) U (1%) (263,158)

NET RESULTS (276) (254) (23) U 9% 551 42 509 F 1,217% 894

Part 2.1A: Supplemental Information to Statement of Financial PerformanceDepreciation (1,079) (1,066) (14) (1%) (4,338) (4,263) (75) (1%) (12,788) Interest cost (248) (237) (11) (4%) (914) (711) (203) (4%) (2,844) Interest cost Private (2) (2) 0 17% (7) (6) (1) 17% (24) Interest cost from CHFA (246) (235) (11) (5%) (907) (705) (202) (5%) (2,820) Financing component of Operating Leases (63) (16) (47) (293%) (175) (64) (111) (293%) (192) Capital Charge (389) (439) 50 11% (1,620) (1,708) 88 11% (5,434) Gain/(Loss) on Disposal of Assets - (1) 1 100% - (4) 4 100% (13) Donations 17 1 16 (1,965%) 41 3 37 (1,965%) 10

Part 2.2: Full Time Equivalent Numbers Annual

Actual Budget Actual Budget Budget

Medical Personnel 295.51 315.93 293.62 316.14 316.01

Nursing Personnel 989.19 1,011.80 988.13 1,012.06 1,012.82

Allied Health Personnel 458.63 488.62 459.89 488.61 488.60 Support Personnel 131.81 132.70 131.64 132.70 132.70 Management/Administration Personnel 424.83 427.00 423.74 426.75 426.00


October 2007


Page 1

Otago District Health BoardAnnual

Part 2: DHB Provider Actual Budget Variance Variance Actual Budget Variance Variance Budget

$(000) $(000) $(000) % $(000) $(000) $(000) % $(000)

October 2007


Total Full Time Equivalents (FTE's) 2,299.97 2,376.05 2,297.02 2,376.26 2,376.13

Page 2

Otago District Health Board - Mental HealthAnnual

Actual Budget Variance Actual Budget Variance Budget

$(000) $(000) $(000) $(000) $(000) $(000) $(000)

REVENUEGovernment and Crown Agency sourced Mth Act Mth Bud Mth Var YTD Act YTD Bud YTD Var 2008 BudClinical Training Agency 1 56 68 (11) U 225 271 (45) U 812 Internal revenue (DHB Fund to DHB Provider) 2 2,959 2,959 (0) U 11,840 11,836 4 F 35,509 Ministry of Health Revenue 3,015 3,027 (11) U 12,066 12,107 (41) U 36,321

Other GovernmentOther DHBs 4 - - - - - - - Other Government 5 2 2 1 F 13 7 6 F 21 Government and Crown Agency sourced Total 3,018 3,028 (11) U 12,078 12,114 (36) U 36,342

Other RevenuePatient / Consumer sourced 6 7 6 1 F 24 25 (1) U 75 Other Income 7 2 7 (4) U 11 26 (15) U 78

Other Revenue Total 9 13 (3) U 35 51 (16) U 153

REVENUE TOTAL 3,027 3,041 (14) U 12,113 12,165 (52) U 36,495

EXPENSESPersonnel costsMedical Personnel 8 404 489 85 F 1,582 1,883 301 F 5,553 Nursing Personnel 9 1,120 1,139 18 F 4,336 4,468 132 F 13,483 Allied Health Personnel 10 435 456 21 F 1,650 1,810 160 F 5,346 Support Personnel 10.5 - - 0 F - - 0 F - Management/Administration Personnel 11 217 188 (29) U 837 748 (89) U 2,214 Personnel costs Total 2,176 2,272 96 F 8,406 8,909 504 F 26,596

Outsourced ServicesMedical Personnel 12 1 0 (0) U 33 35 3 F 39 Nursing Personnel 13 - - 0 F - - 0 F - Allied Health Personnel 14 - 4 4 F 8 17 9 F 52 Management/Administration Personnel 15 - 0 0 F 6 1 (6) U 3 Outsourced Clinical Services 16 34 2 (32) U 107 8 (99) U 24 Outsourced Services Total 35 7 (28) U 154 62 (93) U 118

Clinical SuppliesTreatment Disposables 17 3 4 0 F 17 15 (2) U 44 Diagnostic Supplies & Other Clinical Supplies 18 1 0 (0) U 1 2 0 F 5 Instruments & Equipment 19 1 0 (0) U 4 2 (3) U 5 Patient Appliances 20 0 0 (0) U 0 0 (0) U 0 Pharmaceuticals 22 34 24 (9) U 125 97 (28) U 288 Other Clinical & Client Costs 23 15 11 (4) U 40 44 4 F 132 Clinical Supplies Total 53 40 (13) U 189 160 (29) U 474

Infrastructure & Non-Clinical SuppliesHotel Services, Laundry & Cleaning 24 98 91 (6) U 386 366 (20) U 1,098 Facilities 25 44 46 2 F 187 182 (5) U 547 Transport 26 64 55 (9) U 223 219 (4) U 658 IT Systems & Telecommunications 27 32 41 9 F 138 166 29 F 498 Interest & Financing Charges 28 0 0 0 F 0 0 0 F 0 Professional Fees & Expenses 29 2 1 (1) U 9 5 (4) U 15 Other Operating Expenses 32 18 19 1 F 62 76 14 F 228 Infrastructure & Non-Clinical Supplies Total 258 254 (4) U 1,005 1,015 10 F 3,045

Internal AllocationsInternal Allocation from DHB Provider 572 575 3 F 2,289 2,298 9 F 6,895 Internal Allocations Total 572 575 3 F 2,289 2,298 9 F 6,895

EXPENSES TOTAL 3,094 3,148 54 F 12,043 12,444 401 F 37,128

NET RESULTS (67) (107) 40 F 70 (279) 349 F (633)

October 2007

Year to DateCurrent Month

financial report - southern dhb · 2018-11-08 · this variance has occurred because the...

Documents