Capital & Coast DHB Board Financial Overview September 2018
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CCDHB Public 7 November 2018 - Item 1.9 Chief Executive's Report Capital & Coast DHB Board Financial Overview September 2018 Julie Patterson, Interim Chief Executive Officer Michael McCarthy, Chief Financial Officer CCDHB Financial Overview Page 1 September 2018 68 CCDHB Public 7 November 2018 - Item 1.9 Chief Executive's Report INANCIAL PERFORMANCE RESULT AND OVERVIEW Summary The DHB has a board approved deficit target of ($15.9m) for the 2018/19 financial year. The result for September was ($809k) unfavourable to budget, due to increased costs of treatment disposables, unachieved efficiency targets for the month ($320k) and bulk payment of prior year HVDHB disputed invoices. Result for Period ended September 2018 September 2018 Year to Date 2018/19 Varian Varian Annual Account Type in $000s Actual Budget ce Actual Budget ce Budget Revenue 95,444 94,949 496 283,164 285,017 (1,853) 1,139,617 Labour Costs 40,271 39,908 (364) 124,529 125,980 1,451 509,791 Outsourced Services 1,992 2,105 113 6,301 6,190 (111) 24,709 Clinical Supplies 10,659 10,401 (257) 32,128 31,771 (357) 123,648 Infrastructure & Non-Clinical 10,576 9,831 (744) 31,333 29,722 (1,611) 117,523 Other Providers 31,703 31,651 (52) 95,621 94,953 (668) 379,811 Total 243 1,052 (809) (6,748) (3,599) (3,149) (15,864) Year to Date Variances against Budget Revenue is ($1.8m) unfavourable YTD, and was due to ($2.6m) of lower IDF revenue, offset by increased other income. The IDF volumes reflect the lower activity due to the nurse’s strike in July. Labour costs, including Employee and Outsourced personnel, are favourable $1.5m YTD. Nursing costs account for the $380k, Medical $90k, Management & Admin $690k, and Allied $309k of the variance. The variance is due to annual leave movement, vacancies and lower nursing costs. During the month the NZNO MECA was implemented with lump sum costs of $3.5m and back pay to June 2018 of $2.1m. The budget for the additional costs were moved from reserves to the Directorates to offset the costs. An additional $695k of budget for Leave revaluation was also transferred. CCDHB Financial Overview Page 2 September 2018 69 CCDHB Public 7 November 2018 - Item 1.9 Chief Executive's Report Other expenditure is over budget by ($2.75m) YTD. This was made up of ($1m) of unachieved stretched efficiency target, ($1.4m) in other external Provider Costs related to stretched Community Pharmaceutical targets, higher costs of clinical supplies, ($300k) bulk payment of unbudgeted HVDHB prior year invoices, and increased costs of depreciation. External Providers Review Month - September 2018 Capital & Coast DHB - Funder Year to Date Variance Ext Provider Payments - $000s Variance Actual Actual Last vs vs Last YTD September 2018 Actual vs Actual vs Actual Budget year Budget year Actual Budget Last year Budget Last year External Provider Payments: 5,852 5,385 6,222 (467) 370 - Pharmaceuticals 17,594 16,156 17,642 (1,438) 48 5,591 5,644 5,404 53 (187) - Capitation 16,857 16,931 16,125 74 (732) 1,802 1,802 1,694 0 (108) - ARC-Rest Home Level 5,381 5,406 5,116 26 (264) 3,629 3,765 3,760 136 131 - ARC-Hospital Level 10,610 11,296 11,226 686 616 1,734 1,695 1,646 (38) (87) - Other HoP 5,210 5,086 4,815 (125) (396) 2,041 2,229 1,901 188 (139) - Mental Health 6,481 6,687 5,661 206 (820) 3,168 3,247 2,818 79 (350) - Other services (incl demand driven) 9,724 9,740 8,750 16 (974) 7,886 7,883 7,995 (2) 109 - IDF Outflows 23,763 23,650 23,985 (113) 222 31,703 31,651 31,440 (52) (261) Total Expenditure 95,620 94,953 93,319 (668) (2,301) External Provider expenditure: unfavourable variance year to date ($668k) The favourable variances are: ∑ Capitation favourable variation of $74k due to volume changes still to be captured. ∑ Aged Residential Care rest home and hospital with $712k due to better NASC management and pay equity costs not as high The unfavourable variances offsetting these amounts are: ∑ Pharmaceuticals ($1,438k) due to stretch target applied. Some savings to come via additional rebates from Pharmac ∑ Demand driven costs unfavourable due to phasing in immunisations and dental services claims CCDHB Financial Overview Page 3 September 2018 70 CCDHB Public 7 November 2018 - Item 1.9 Chief Executive's Report Employee FTE Financial Reporting to Ministry of Health (MOH Accrued FTE) For financial accounting purposes MOH require an accrued FTE measure (as shown in the table below). This measure includes all hours on an accrual basis including leave accruals, overtime and casual hours. As an FTE measure this is highly volatile for a 24/7 facility due to the divisor being set based on the number of working days in the month. The Year to Date total is an average for the year. The average $ per FTE is impacted by MECA increases year on year. Month - September 2018 Capital & Coast DHB Year to Date Annual Variance MOH Accrued FTE Variance Annual Budget YTD September 2018 Actual vs Actual vs Actual vs Actual vs Average Actual Budget Last year Budget Last year Actual Budget Last year Budget Last year FTE Last year FTE 992 1,003 842 11 (150) Medical 963 971 865 8 (98) 952 865 2,483 2,533 2,223 49 (260) Nursing 2,361 2,399 2,236 39 (125) 2,400 2,236 752 782 686 30 (66) Allied Health 742 756 705 14 (37) 736 705 147 153 145 6 (2) Support 142 149 144 7 1 145 144 918 948 830 30 (88) Management & Administration 910 934 853 23 (57) 913 853 5,292 5,419 4,726 127 (566) Total FTE 5,119 5,209 4,802 91 (317) 5,145 4,802 Average $ per FTE 13,100 12,752 13,698 (349) 598 Medical 42,064 42,253 42,142 189 78 171,571 174,097 6,453 6,176 6,724 (277) 270 Nursing 20,514 20,349 20,381 (165) (134) 84,155 86,374 5,968 6,027 6,467 58 499 Allied Health 19,417 19,885 19,744 468 328 80,837 78,917 4,236 4,254 4,521 19 285 Support 13,799 13,848 13,503 49 (296) 55,657 54,955 5,685 5,868 6,033 184 349 Management & Administration 17,891 18,580 17,889 689 (2) 77,033 70,997 7,435 7,264 7,740 (172) 304 Cost per FTE all Staff 23,758 23,861 23,559 104 (199) 97,793 97,412 CCDHB Financial Overview Page 4 September 2018 71 CCDHB Public 7 November 2018 - Item 1.9 Chief Executive's Report CCDHB STATEMENTS OF FINANCIAL POSITION Aug -18 Month : September 18 Capital & Coast DHB Variance Balance Sheet September At June Actual vs Actual vs YTD September 2018 Actual Actual Budget 2017 2018 Budget September 2017 Notes 22 22 102 102 21 (81) (81) 1 Bank 2,795 3,477 19,825 23,411 17,581 (16,347) (19,933) 1 Bank NZHP 10,346 10,255 9,269 8,769 9,693 986 1,486 1 Trust funds 51,216 51,606 48,185 48,185 49,190 3,422 3,422 2 Accounts receivable 8,504 8,780 8,880 8,880 8,067 (99) (99) Inventory/Stock 5,183 5,655 6,789 6,789 3,075 (1,135) (1,135) Prepayments 78,065 79,795 93,050 96,136 87,628 (13,255) (16,341) Total current assets 551,744 553,128 552,613 459,424 555,233 515 93,703 Fixed assets 11,613 11,947 11,947 9,859 11,626 0 2,088 Work in Progress - CRISP 26,420 25,801 18,145 7,950 18,466 7,656 17,851 Work in progress 589,777 590,876 582,704 477,234 585,324 8,171 113,642 3 Total fixed assets 5,448 5,448 6,468 6,468 5,986 (1,020) (1,020) Investments in New Zealand Health Partnership 1,150 1,150 1,150 1,150 1,150 (1) (1) Investment in Allied Laundry 6,598 6,598 7,618 7,618 7,136 (1,020) (1,020) Total investments 674,439 677,268 683,372 580,988 680,088 (6,104) 96,281 Total Assets 0 0 0 0 0 0 0 Bank overdraft HBL 68,955 69,687 69,625 76,172 65,484 (63) 6,485 4 Accounts payable, Accruals and provisions 166 166 244 244 247 79 79 7 Loans - Current portion 4,115 6,173 6,170 0 (0) (3) (6,173) 6 Capital Charge payable 593 593 593 593 593 0 0 Insurance liability 30,170 26,496 25,792 24,212 24,750 (705) (2,285) 5 Current Employee Provisions 48,192 48,849 49,489 45,230 49,212 640 (3,619) 5 Accrued Employee Leave 7,242 10,051 7,423 7,423 17,818 (2,627) (2,627) 5 Accrued Employee salary & Wages 159,433 162,015 159,336 153,875 158,104 (2,679) (8,140) Total current liabilities 55 55 302 302 55 247 247 Crown loans 10,401 10,313 9,275 8,845 9,746 (1,038) (1,468) Restricted special funds 605 605 605 605 605 0 0 Insurance liability 5,642 5,642 5,868 5,868 5,642 226 226 Long-term employee provisions 16,703 16,615 16,050 15,620 16,048 (565) (995) Total non-current liabilities 176,136 178,631 175,387 169,495 174,151 (3,244) (9,135) Total Liabilities 498,304 498,638 507,986 411,492 505,936 (9,348) 87,145 Net Assets 764,628 764,402 764,631 769,398 768,845 (228) (4,996) Crown Equity 0 0 0 0 (3,484) 0 0 Capital repaid 136,496 136,813 136,776 23,671 136,404 37 113,142 Reserves (402,820) (402,577) (399,421) (381,576) (395,830) (3,154) (21,000) Retained earnings 498,304 498,639 507,986 411,493 505,936 (9,347) 87,145 Total Equity CCDHB Financial Overview Page 5 September 2018 72 CCDHB Public 7 November 2018 - Item 1.9 Chief Executive's Report Month : September 18 Capital & Coast DHB Year to Date Variance Statement of Cashflows Variance Actual vs Actual vs Actual vs Actual vs YTD September 2018 Actual Budget Last year Budget Last year Notes Actual Budget Last year Budget Last year Operating Activities 98,679 95,624 91,624 3,055 7,055 Receipts 293,170 285,181 275,681 7,989 17,489 Payments 39,537 41,913 37,413 2,376 (2,124) Payments to employees 128,554 127,440 113,410 (1,114) (15,144) 54,276 51,938 51,727 (2,338) (2,549) Payments to suppliers 164,727 156,534 155,551 (8,193) (9,177) 0 0 0 0 0 Capital Charge paid 0 0 0 0 0 733 246 246 (487) (487) GST (net) (505) (420) (420) 85 85 94,545 94,097 89,386 (448) (5,159) Payments - total 292,776 283,553 268,540 (9,223) (24,236) 4,134 1,528 2,239 2,607 1,896 6 Net cash flow from operating Activities 394 1,628 7,141 (1,234)