Annual report& Accounts 2014/15

Greater Manchester West Mental Health NHS Foundation Trust

Annual Report and Accounts 2014/15

Presented to Parliament pursuant to Schedule 7, paragraph 25 (4) (a) of the National Health Service Act 2006

Contents

Page

Strategic Report ...... 6 Risks ...... 14 Our Environment ...... 16 Social, Community & Human Rights Issues ...... 17

Directors’ Report and Management Commentary ...... 20

Enhanced Quality Governance Reporting ...... 24

Statement of Directors’ Responsibilities in Respect of the Accounts ...... 30

Register of Interests ...... 32

Remuneration Report ...... 34

How we Work ...... 38

Council of Governors ...... 42

Membership of the Board of Directors ...... 46

Committees ...... 52

Foundation Trust Membership ...... 58

Quality Report ...... 60

Staff Survey ...... 62

Regulatory Ratings Report ...... 66

Financial Review ...... 68

Accounting Officer’s Responsibilities ...... 76

Annual Governance Statement ...... 78

Independent Auditor’s Report ...... 86

Appendix 1 – NHS FT Code of Governance ...... 90

Appendix 2 – Annual Accounts ...... 98

Quality Account ...... 145

Annual Report 2014/15 Page 5 and friendly • we are caring and kind • we value and respectStrategic • we work together Report • we go • we are welcoming and friendly • we are caring and kind • we value and we go the extra mile • we are welcomingreater Manchesterand friendly West • we Mental Health NHS Foundation are caring and kind • we value and respect • we work together • weTrust go (GMW) the extra formally mile became a foundation trust in we are welcoming and friendly • we are caring and kind • weG value2008. and respect We provide • we awork wide range of NHS services across • we are welcoming and friendlya large •and we disparate are caring geographical and kind footprint covering Greater we go the extraManchester, mile • thewe widerare welcoming North West and beyond. and friendly • we are caring and kind • we value and respect • we work together • we go • we are welcoming and friendly • we are caringServices providedand kind include • we community value and and inpatient mental health services, adult and we go the extra mile • we areadolescent welcoming forensic andmental friendly health services, • we adolescent psychiatry services, mental health and deafness services, community and inpatient alcohol and drugs services, and offender are caring and kind • we value and respect • we work togetherhealth • services. we go As athe result extra of our diverse mile service portfolio, we operate within a complex we are welcoming and friendly • we are caring and kind • wecommissioning value and framework. respect Effective • we workpartnership working with commissioners and other providers is critical to managing this and to ensuring that we remain at the forefront of • we are welcoming and friendlylocal planning. • we are caring and kind we go the extra mile • we are welcoming Our vision remains to deliver ‘Improved Lives and Optimistic Futures for People Affected and friendly • we are caring and kind • we value and respectby •Mental we workHealth andtogether Substance • Misuse we goProblems’. Our vision is underpinned by six • we are welcoming and friendly • we are caringstrategic objectives:and kind • we value and we go the extra mile • we• are To promote welcoming recovery byand providing friendly high quality• care and delivering excellent outcomes we are caring and kind • we value and respect • we work together• To work with • we service go users the and carers to achieve their goals • To engage in effective partnership working • To invest in our environments • To enable staff to reach their potential and innovate • To achieve sustainable financial strength and be well-governed

We work together to achieve our values

Page 6 Greater Manchester West Mental Health NHS Foundation Trust Strategic Report

And, our values, which articulate what we stand for as an organisation and how we will work together to achieve the best for our staff and patients:

• We are welcoming and friendly • We are caring and kind • We value and respect • We work together • We go the extra mile

Strategic Goals and Initiatives We have made significant progress in delivering the strategic development plans set out in our ‘Strategic Plan for 2014 to 2019’ and our ‘Operational Plan for 2014 to 2016’. Progress is tracked via local project groups or routine meetings, as well as via our robust annual business planning process. The business planning process provides opportunity for previous year’s achievements to be acknowledged and outstanding priorities (that remain relevant and feasible) to be carried The Trafford Aim launch event forward. respect • we work together •

Key achievements in 2014/15 include: we are welcoming and friendly • we are caring and kind • we value and respect • we work together • • Implementing a redesigned acute care pathway in Bolton, Salford and Trafford: including the provisionare of welcoming more effective Home-basedand friendly Treatment • we services; are strengthenedcaring and kind • we value and respect • we work bed management, improved interfaceswe across go the inpatient, extra home- mile and community-based• we are welcoming and friendly • we are caring and kind services; and the commencement of work to develop a ‘Centre of Excellence’ for older people. This work will• weconclude value in 2015/16 and respect • we work together • we go the extra mile • Continuing to developand our friendly rapid access • psychiatricwe are liaisoncaring services and in kind Bolton, • Salfordwe value and and respect • we work together • Trafford acute hospital settings • we are welcoming and friendly • we are caring and kind • we value and • Embedded new designated and fit for purpose place of safety facilities for individuals admitted on a Sectionrespect 136 in Bolton • we and work Salford together • we go the extra mile • we are welcoming and friendly • we • Expanding our Memoryare Assessmentcaring and and Treatmentkind • we Service value for people and withrespect dementia, • we work together • and their carers, in Salfordwe are welcoming and friendly • we are caring and kind • we value and respect • we work • Continuing to consolidate and improve our Improving Access to Psychological Therapies services we go the extra mile • we are welcoming and friendly • we are caring and kind • Implementing new services• we valuefollowing and a successful respect tender: • we work together • we go the extra mile • Salford Integrated Drugand and friendly Alcohol Recovery• we are Services caring for Adult and and kind Young • wePeople. value and respect • we work together • Operating as prime provider with sub-contracting• we arrangementsare welcoming developed and with friendly • we are caring and kind • we value and organisations such as Great Places, Thomas Project, Salford Royal NHS Foundation Trust and Early Break respect • we work together • we go the extra mile • we are welcoming and friendly • we • HMP New Hall Personalityare caring Disorder and Services kind for women• we value and respect • we work together • • Trafford Drug and Alcoholwe are Detoxification welcoming Services and friendly • we are caring and kind • we value and respect • we work • Successfully tendering to provide mental health and substance misuse services at HMP Hindley and mental health services at Barton Moss Secure Children’s Centre and St.

Annual Report 2014/15 Page 7 Catherine’s Children’s Centre – implementation to follow in 2015/16 • Providing additional capacity in our adolescent inpatient service (Junction 17) to respond to national demand • Investing in capital development: • Provision of new medium secure accommodation to replace old accommodation • Commencing work to re-provide our existing male low secure wards and build an education and training facility, which will provide a central ‘hub’ for our Recovery Academy and enable the re-location of Trust Headquarters • Continuing to expand our low secure and ‘locked’ inpatient care, in Widnes through a contractual Joint Venture with Priory • Progressing the implementation of a new clinical information system • Actively contributing to the development and implementation of an integrated Primary and Acute Care System to meet all health and social care needs in Salford –working in partnership with Salford CCG, Salford City Council, Salford Royal NHS Foundation Trust and Salix via an alliance contracting model and backed by NHS England as one of its vanguard sites. New integrated care system to be piloted in 2015/16.

Government and Regulatory Context We have developed an ‘Operational Plan for 2015/16’, reviewed our five-year ‘Strategic Plan for 2014 to 2019’ and our two-year ‘Operational Plan for 2014 to 2015’. We have also analysed the national (government and regulatory) context, specifically taking into account:

• ‘Everyone Counts: Planning for Patients 2014/15 – 2018/19’ • ‘NHS Five Year Forward View’ • ‘The Forward View into Action: Planning for 2015/16’ • ‘The Mandate for the NHS 2015/16’ • ‘Closing the Gap: Priorities for Essential Change in Mental Health’ • Winterbourne, Berwick, Francis and Keogh inquiries and reports • Changes in regulatory policy including the Care Quality Commission’s new inspection regime • The National Tariff and our choice of the Enhanced Tariff Option

‘Everyone Counts: Planning for Patients 2014/15 to 2018/19’ established a requirement for NHS organisations to shift their focus from short-term incremental improvements to longer-term planning. Our existing ‘Strategic Plan’ responded to this by setting out plans for transforming our services over a five- year period, and this Plan continues to support that vision. We are committed to improving access to therapies

Page 8 Greater Manchester West Mental Health NHS Foundation Trust The ‘NHS Five Year Forward View’ emphasises that major system changes are required to protect high quality, sustainable care for patients now and into the future. Our plans represents a credible strategy for change that will enable delivery of the required levels of performance into the long-term. Our plans also meet all operational and financial requirements in 2015/16 and we have contingencies in place to address any short-falls or unexpected difficulties.

‘The Forward View into Action: Planning for 2015/16’ (published December 2014) describes the approach organisations should start to take in 2015/16 in order to fulfil the vision set out in the ‘NHS Five Year Forward View’. The ‘Forward View into Action’ specifically identifies ‘achieving parity for mental health’ as a priority for 2015/16. This is alongside priorities for improving quality and outcomes, improving patient safety and meeting NHS constitutional standards.

The introduction of access and waiting time standards in mental health in 2015/16 is one approach identified in ‘The Forward View into Action’ as a means of achieving parity. New access and waiting time standards will be implemented in the following areas and monitored via Monitor’s Risk Assessment Framework and local contracts:

• Early Intervention in Psychosis – £40 million additional investment has been made available to support this • Improving Access to Psychological Therapies – £10million additional investment has been made available centrally and will be targeted towards those areas facing the greatest challenge in achieving the standards

‘The Forward View into Action’ also identifies further investment for the development of adequate and effective liaison psychiatry services, for all ages, in a greater number of acute hospitals. Targeted investment of £30million will be made available in 2015/16 for this purpose. A further £30million targeted investment will be used to support the establishment of community-based specialist teams for children and young people with eating disorders.

We welcome the news that, as an outcome of the ‘NHS Five Year Forward View’ and the current impetus to significantly improve mental health services, a new taskforce has been launched to develop a new five-year strategy for mental health for people of all ages. We will take every opportunity to contribute to the work of this Taskforce.

The approach to achieving parity in mental health outlined in ‘The Forward View into Action’ does not change the ambitions set out for mental health in ‘The Mandate’ to NHS England for 2015/16. As such, we will continue to deliver against pre-existing mandate objectives - including improving access to psychological therapies standards and improving diagnosis, treatment and care for people with dementia - whilst also focusing on achieving the new access and waiting time standards for mental health services.

‘Closing the Gap’ sets out 25 priorities for essential change in mental health and details how changes in local service planning and delivery will make a profound difference to the lives of people with mental health problems. We have Closing the Gap sets out local service planning and delivery

Annual Report 2014/15 Page 9 developed local responses to these priorities and will continue to implement these in 2015/16.

We remain committed to quality assuring all of our activities based on the findings of the Winterbourne, Berwick, Francis and Keogh inquiries and reports, and to take steps to strengthen our systems of internal control. In 2015/16, we are planning to participate in a ‘Governance Review’ led by Monitor to assess our performance against its ‘Well-led Framework’ and determine the robustness of our governance arrangements and organisational development agenda. We are also focused on the Care Quality Commission’s new Registration Regulations, and associated fundamental standards of quality and safety, and are actively preparing for the new inspection regime. We are taking steps to strengthen our assurance process and have also commenced a regular programme of internal inspections, which will continue into 2015/16, to this end.

Quality Goals As planned, we continued to drive forward quality improvements in 2014/15. We achieved all targets set nationally for mental health providers in 2014/15, delivered our Commissioning for Quality and Innovation schemes and secured all associated income, and made significant progress against our Quality Improvement Priorities as set out in our annual Quality Account.

National and Local Commissioning Priorities We recognise the particular challenges faced in, and across, our local health economies and our plans align with our commissioners’ intentions as set out in their long-term strategic plans and associated needs assessments and strategies. We continue to work closely with our commissioners to understand the health needs of our populations and to develop and deliver services that best meet those needs within the available resources. Our main commissioners are:

• Bolton, Salford and Trafford CCGs for our district services • NHS England (Cheshire and Merseyside Sub-Regional Team) for specialised services • NHS England Health and Justice Team for North West (hosted by Lancashire and Greater Manchester Sub-Regional Team) for offender health services • A number of local authorities (including, Salford, Central Lancashire, Cumbria and Wigan and Leigh) for substance misuse services

District Services - CCGs have explicitly been asked to ensure that spend on mental health services rises in real terms in 2015/16 and grows at least in line with the CCG’s overall allocation growth.

Our CCGs’ commissioning intentions cover the following themes:

• Early intervention and prevention • Recovery – enabling the best possible outcomes for patients • Delivering an integrated approach to care to support patients’ physical, mental and social care needs • Improving Access to Psychological Therapies • Improving children and young people’s mental health • Rapid and convenient access to services

Page 10 Greater Manchester West Mental Health NHS Foundation Trust • Emergency and unplanned care - continued development of psychiatric liaison or RAID-type services • Supporting people with dementia to live healthier lives • Implementing redesigned acute inpatient services and community services • Positive or improved experience of care Supporting people with dementia to live healthier lives We continue to address these themes in our strategic priorities for 2015/16, which are supported by our commissioners.

Offender Health/Health and Justice - In terms of offender health, NHS England are part- way through their four-tranche programme of re-procurement for health and social care services in prisons and healthcare in secure children’s homes across the North West. In partnership with Bridgewater Community Healthcare NHS Trust, we have participated in procurement exercises in Greater Manchester and Merseyside to date and have been awarded contracts in HMP Hindley and Barton Moss Secure Children’s Centre in Greater Manchester and St. Catherine’s Secure Children’s Centre in Merseyside. Procurement for tranche 3 (Cheshire) and tranche 4 (Lancashire) will follow in early 2015/16 and these opportunities will be assessed when the tenders are published.

Specialised Services – NHS England’s review of CAMHS (Child and Adolescent Mental Health) Tier 4 services, and adult medium and low secure mental health services, will continue in 2015/16. The review will focus particularly on whether the right services are being provided in the right place and providing the required capacity. We will be an active participant in this work and recognise that changes in the way services are commissioned and delivered may follow.

Substance Misuse Services – The market for alcohol and drugs services continues to be the area where we are most subject to commissioners ‘market testing’ services with a view to driving up quality and value for money. This market is fast-moving, subject to political scrutiny and occupied by a range of competing NHS and third sector providers. Commissioners are issuing requests for tenders at regular intervals (usually, three to five years). As such, opportunities for expansion, and equally risks of losing existing business, arise frequently.

Devolution We are active participants in planning for the devolution of health and social care responsibilities to CCGs and local councils in Greater Manchester during the build-up year (2015/16) and from April 2016 onwards. We are members of the mental health work- stream of ‘Devo Manc’ and fully support the principles guiding this development. We recognise that mental health services may be re-shaped as this agenda progresses in order to better meet the interests and outcomes of patients and people in Greater Manchester.

Annual Report 2014/15 Page 11 Manchester Mental Health Improvement Programme We understand the long-standing challenges facing providers of mental health services in Manchester and continue to be engaged in the Manchester Mental Health Improvement Programme (MHIP). This programme of work is focused on reducing fragmentation across Manchester and enabling a more integrated approach; improving outcomes and quality; improving access; and delivering care and treatment based on assessed needs and good practice.

We are committed to working with other key stakeholders to redesign services in Manchester and implement new care pathway specifications. We will continue to engage with Monitor and the CQC as this work progresses and in the event that any potential transactions would result in a material or significant change to this organisation.

Competition As more opportunities arise outside the alcohol and drugs field – for example, in health and justice and psychological therapies services - we are taking steps to share our experience across the wider organisation.

We have necessarily developed a formal process for bidding/tenders, which includes market shaping, assessments and strategy and defined roles and responsibilities. Within this process, we also focus on relationship management and reputation management, and maintain a knowledge base of the local health economy, commissioner requirements and changing agendas. We will continue to seek to improve our bid maturity in 2015/16.

We have also grasped opportunities to deliver services in new ways and by using different contracting models, such as prime provider models, contractual joint ventures and alliance agreements, and will continue to innovate in this regard in future years.

Summary of Board Strategic Intentions In light of this strategic context, we recommit to pursuing the direction set out in our five- year strategic plan for 2014 to 2019. This plan resonates with the expectations set out for mental health services in ‘The Five Year Forward View’, ‘The Forward View into Action’ and the NHS Mandate. We welcome the identification of ‘parity for mental health’ as a key priority and the introduction of access and waiting time standards, and respond to these in our plans for 2015/16.

Performance Monitoring Performance against our key priorities is monitored via a number of mechanisms. For example, our approach to business planning allocates responsibility for monitoring, supporting and performance managing the achievement of business plan priorities, throughout the year, to identified individuals (namely, Network Directors and Heads of Service). For those priorities which require resource allocation, and have therefore been developed into a business case, the individual business cases also outline how performance will be monitored. This includes via agreed performance targets; systems to record and report performance; implementation plans, including key milestones and timescales; and the approach to evaluation and evaluation criteria.

Page 12 Greater Manchester West Mental Health NHS Foundation Trust Financial Plans The Trust has had a successful year financially, achieving a net surplus of £7.8m, and an overall Financial Risk Rating of 4. Whilst 2014/15 has been a successful year for the Trust, the coming years will continue to represent an increasing challenge to both the Trust and to the Public Sector.

The NHS faces an unprecedented financial dilemma; the supply of funding is struggling to match the growing demand for healthcare. The need to deliver 4 per cent efficiency savings until 2016 is of immediate concern. Savings of a similar amount are likely to be needed after 2017.

Along with all NHS organisations, we will need to identify and deliver 4 to 5% efficiency savings on an annual basis. This means an estimated £5m per year must be saved on a recurrent basis whilst we maintain the quality of services.

Our Trust has an excellent track record for making efficiencies but this must continue in the forthcoming years, to ensure that we remain a financially secure organisation. ‘The Five Year Forward View’ highlighted that major system changes are required to protect high-quality sustainable care for patients now and into the future.

Additional investment of £1.98bn in mental health services was announced in the autumn 2014 statement, including £150m from NHS England. We welcome this investment and will work with commissioners to ensure that the increase in funding is invested to meet the new standards for early intervention in psychosis services, access standards relating to adult Improving Access to Psychological Therapies services and liaison psychiatry services.

The Trust has developed its 2015/16 operational plan in light of the challenging economic backdrop and a clear expectation that the funding provided to the NHS will need to be supplemented by making efficiencies to deal with the rising demand from an ageing population and the increased costs of new technology.

Achievements The last 12 months have been on of achievement and many successes have been awarded to us. Not only did the rapid access detoxification acute referral facility win Team of the Year at the Royal College of Psychiatrists, but GMW also The Junction 17 building won the Design Project of the Year at the won: Design in Mental Health Network National Awards

• Design Project of the Year at the Design in Mental Health Network National Awards for GMW’s adolescent inpatient unit at Prestwich • Two Advancing Quality awards for Best Performing Trust The Dementia Team with their Advancing Quality Award

Annual Report 2014/15 Page 13 for Dementia and Best Performing Trust for First Episode Psychosis • Two awards at the Care Coordination Association for outstanding practitioners • A National Service User Award for the ‘Getting on with People’ card game The Psychosis Team with their Advancing Quality Award which is designed to help patients discuss their perception and experience of bullying

Risks

Our Trust Board hold ultimate accountability for quality. The Board has established a sub- committee with delegated authority to set the strategy for quality and to ensure delivery against it. The Quality Governance Committee is chaired by a Non-Executive Director and includes other Trust Board members, lead clinicians from all clinical services and corporate leads with responsibility for risk and quality management. The structure and business of the Quality Governance Committee has been informed by an assessment against Monitor’s Quality Governance Framework, with guidance and advice from Deloitte. The Quality Governance Committee have an agreed Quality Governance Framework and leads on setting and measuring performance against the Trust’s quality priorities as set out in the annual Quality Account.

Trust Board are visible within clinical services and undertake regular visits to services. This provides members with opportunities to triangulate evidence, speak to service users and staff about their experience and to ensure that there is an open and transparent culture within the Trust.

The Trust Board’s Board Assurance Framework sets out the key strategic risks, which could affect delivery of our key strategic and quality priorities. The risks identified in the Board Assurance Framework are based on a collective assessment by the Trust Board of the operating environment. They are also informed by risks identified at Directorate/ service level, which are managed via local Risk Registers and reviewed at the Trust-wide Risk Management Strategy Group. Directorate risks are escalated to the Board Assurance Framework in the event that they could significantly impact upon the delivery of our strategic objectives. As quality is at the heart of all of our objectives, risks identified in the Board Assurance Framework have the potential to impact on service quality.

Our current key strategic risks, and associated controls, are as follows. Where gaps in controls have been identified by the Trust Board, actions are being progressed to mitigate these. Key risks:

• Acute Care Pathway – risk of the redesigned acute care pathway not being implemented effectively, which could result in quality, relationship, financial and workforce issues. Controls in place to mitigate this risk include oversight provided by the Steering Group and designated work-streams; robust business plan; and continuous engagement with CCGs and other key stakeholders during, and subsequent to, the consultation process • Implementation of the new clinical information system – risk of failure to effectively implement the new clinical information system which may impact on safety

Page 14 Greater Manchester West Mental Health NHS Foundation Trust and quality. Controls in place include oversight of the Project Board, robust business plan; engagement of Directors and clinicians in implementation and commitment of required resources • Workforce planning – risk of ineffective/insufficient workforce planning leading to inadequate resources to deliver services and lack of control over pay costs. Control in place include identification of workforce issues via annual business planning process; incorporation of key workforce indicators in monthly Directorate Performance Reports; annual development of Trust-wide Workforce Plan plus specific workforce plans for service redesigns; annual Training Needs Analysis; and cost improvement planning. • Sickness absence – risk of higher than planned sickness absence impacting on service delivery and incurring higher bank and agency expenditure. Controls in place include Sickness Management Policy; monthly Directorate sickness absence reports; designated HR Officer to support Directorates; Absence Management Training for all Line Managers; Occupational Health and Counselling service available to all staff; and monthly monitoring and assurance meetings. • Mandatory training – risk of lower than agreed compliance with mandatory training leading to inadequately trained staff. Controls in place include Induction and Mandatory Training Policy; monthly monitoring at Workforce and Education Governance Committee; adequate classroom and e-learning provision in place; resource built into staffing establishments to enable release of staff for training; and requirement to attend mandatory training made a requirement for pay progression with effect from 1 April 2014. • Compliance with targets – risk of failure to meet national and/or local targets, which may impact on patient care, Trust rating and could lead to financial penalties or intervention from regulators. Controls include Board and Directorate Performance Reports; Data Quality Reports and associated operating guidance; and scrutiny via Network Board, Performance Measures, Contract Monitoring and Quality Governance Committee meetings. • IT business continuity and disaster recovery – risk of lack of resilient IT infrastructure and business continuity/disaster recovery arrangements leading to a delay in the recovery of key clinical and consequently impacting on service delivery and patient safety. Controls include oversight of IM&T Strategy Group and investment in IT infrastructure. • Income (economic climate) – risk of uncertainty/insecurity of income as a consequence of national economic climate and commissioner intentions. Specific risk relate to competition and tendering of our existing services. Controls include financial reporting at Directorate level; signed contracts in place; Contract Monitoring meetings; annual and longer-term planning; contracts risk register; and market assessment of business development opportunities.

• Devolution Greater Manchester - the implications of the framework for delegation and devolution of health and social care responsibilities in shadow and final form by April 2016 on commissioning arrangements across Greater Manchester.

We are aware that from July 2015, GMW will be subject to an unannounced Care Quality Commission (CQC) ‘deep dive’ inspection where the following questions will be asked:

• Are services safe? • Are services caring? • Are services responsible? • Are services effective? • Are services well-led?

Annual Report 2014/15 Page 15 As these visits will be very different from other CQC visits, over the coming months, senior executives will carry out a number of mock inspections in our services which will mirror what would be like if the CQC were to actually inspect the service. These mock inspections are a great way for us to be able to see when our teams are doing really well and when they need extra support. If improvements are needed, we can help staff make positive change.

Our Environment

The pressures on the NHS have never been greater with efficiencies being sought from all services involved in the delivery of healthcare. The sustainability agenda is seen by the government as a primary enabler to achieve these efficiencies with the added benefit of releasing significant cost savings across a range of key areas of activity: One of the many GMW buildings • Energy and carbon management • Procurement and food • Transport and access • Water • Waste • Designing the built environment • Organisational and workforce development • Partnership and networks • Governance • Finance

GMW has been at the forefront of the sustainability agenda throughout 2014/15 promoting and raising the profile of sustainability in its widest context. A number of major achievements in areas as diverse as procurement, energy, and waste have demonstrated GMW’s commitment to meet its sustainable objectives as outlined in the GMW Sustainability Strategy.

The Hospital Food Standards Panel in late 2014, after working with organisations including royal colleges and nutritional experts developed a set of compulsory standards and recommendations for hospitals that encourage healthy eating, high-quality food production, sustainability and excellent nutritional care. The Department of Health advised ‘for the first time hospitals will have to meet mandatory food standards as part of a long-mooted drive to raise its standards of food across the country’. The new standards introduced for the first time the need to source food on a sustainable basis through reinforcing the need to reduce food miles and source locally whenever possible.

Food Standards 1. Nutritious and appetising food and drink 2. A varied menu which includes meals suitable for all religious needs 3. Access to fresh drinking water at all times

Page 16 Greater Manchester West Mental Health NHS Foundation Trust 4. Food and drink that is available at all times 5. Food that adheres to the Government Buying Standards for Food that is sustainable and locally produced where possible.

The updated energy pack and video pod casts on the GMW Sustainability homepage are intended to make climate change a reality by bringing to everyone’s attention how their behaviour impacts on the environment. Engaging with service users, visitors and the GMW workforce remains as a key priority in the coming year as changing individuals’ behaviour so they become more carbon aware and consequently less carbon dependant will have the greatest impact on GMW’s fossil fuel consumption and consequently CO2 emissions.

The sustainability agenda continues to gather momentum with 2015 being the next benchmark year for NHS organisations to demonstrate they have met their carbon reduction targets. The NHS is required achieve a 10% reduction in its carbon emissions when compared to the 2007 baseline. While it is anticipated that GMW will meet this target a number of energy initiatives have been incorporated into the 2015 capital programme to deliver further reductions in primary and secondary energy consumption. This ensures that our capital investment programme reflects GMW’s ongoing commitment to remaining at the forefront of low carbon technology with highly efficient infrastructure and new buildings.

The NHS sustainability day on 26th March 2015 marked the start of the national publicity campaign aimed at promoting carbon reduction strategies and sustainable developments across the entire NHS. GMW was actively engaging and promoted sustainability with events centred at the Waterdale Restaurant and Conference centre. Local companies and suppliers were involved with GMW showcasing its sustainability plans for the coming year. Clinical services were involved for the first time promoting the role of local sustainability champions.

Social, Community and Human Rights Issues

Greater Manchester West Mental Health NHS Foundation Trust is committed to improving the lives of our service users, carers, staff and the broader populations whom we serve. Our aspirations to achieve this corporate social responsibility are set out in “Committed to sustaining communities” within which, one of the key objectives is to implement a strategy that promotes social inclusion and the recovery model. Social inclusion and recovery are closely linked to the equality and diversity agendas, and this strategic plan incorporates the Trust’s Single Equality Scheme which sets out our arrangements for meeting our statutory duties in relation to race equality, disability equality and gender equality, as well as actions on age, sexual orientation and spirituality.

Through implementation of “Equality, Inclusion, Recovery” we will continue to strive to be an organisation that:

• Has the confidence and respect of service users, carers, communities, our staff and partner organisations • Provides high quality mental health and substance misuse services that meet the needs of all our diverse communities • Is fully representative of our diverse communities • Has equality and diversity embedded in its culture • Works with service users to maximise opportunities for full community engagement • Works to reduce stigma in mental health and substance misuse

Annual Report 2014/15 Page 17 Supporting staff with disability

• Enhances the quality of life and challenge the exclusion of patients, carers and communities by delivering improved mental health and social care services and outcomes for individuals and communities in partnership with those communities and with our partner organisations. • Recruits, supports and retains a diverse and skilled workforce by providing training and guidance to deliver acceptable, valued and effective services with confidence. • Promotes partnership and networking with service users, carers, our workforce and partner organisations within and across the Trust’s services and geographical communities to support social inclusion and recovery. • Ensures services meet statutory obligations under relevant equalities legislation and the Human Rights Act (1998) • Engages with service users and their carers to ensure that they have equal access to a full range of housing, employment, training and leisure activities and to promote their family life

The model of business for the trust is based on the following corporate objectives:

• Promote recovery by providing high quality care and delivering excellent outcomes • Work with service users and carers to achieve their goals • Engage in effective partnership working • Invest in our environment • Enable staff to reach their potential and innovate • Achieve sustainable financial strength and be well-governed

We recognise our responsibility to involve service users and carers in the planning and provision of services; development of proposals for change in the way services are provided; and other decisions affecting the operation of services. We take this responsibility seriously and have a strong track record of service user and carer involvement and engagements through a variety of mechanisms. A number of the established plans outlined respond to service user feedback. We will continue to work

Page 18 Greater Manchester West Mental Health NHS Foundation Trust with our service users and carers to ensure that plans remain on track and relevant to any changing priorities or needs.

Our Council of Governors have actively contributed to the development and agreement of the plans. During 2014, we hosted a round of governor elections and recruited a number of new governors who have rich and varied backgrounds. Further details can be found under the Council of Governors section of this Annual Report. Where required, the views of Overview and Scrutiny Committees and commissioners have and will be sought on specific plans.

We are particularly focused on enabling the following:

• Market penetration – consolidate or strengthen our position in existing markets • Service development – provide a new type of service, which may or may not be an extension of existing services, in existing markets • Market development – providing a service in which we have experience (i.e. an existing service) in new markets • Diversification – providing a new type of service in new markets

During the year 2014 – 2015, staff in post figures are 3136 headcount and 2897.14 WTE.

Table 1 Staff numbers according to gender

As at 31 March 2015 Male Female TOTAL Directors 9 5 14 Other Senior Managers 5 15 20 Employees 904 2198 3102 TOTAL 918 2218 3136

Data show number of staff Directors are Chief Exec. Chair, Executive and Non-Executive Directors Other Senior Managers are staff on Bands 8c and above, except those employed to provide clinical services eg. Psychologists Employeers are the remainder of the staff employed by the Trust in substantive posts ie. Bank and Locums excluded

The following accounts have been prepared under a direction issue by Monitor under the National Health Service Act 2006.

After making enquiries, the directors have a reasonable expectation that the NHS foundation trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the accounts.

Signed:

B ev H umpH rey, CH ief e xeC utive D ate: 22n D m ay 2015

Annual Report 2014/15 Page 19 Directors’ Report and • we are welcoming and friendly • we are caring and kind we go the extraManagement mile • we are welcoming Commentary and friendly • we are caring and kind • we value and respect • we work together • we go • we are welcoming and friendly • we are caringDuring 2014/15and kind the following• we value people and were directors of Greater Manchester West Mental Health NHS Foundation: we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work togetherAlan •Maden, we go Chair the extra mile we are welcoming and friendly • we are caring and kind • weJon value Bashford, and Non-Executive respect • we Director work • we are welcoming and friendlyAnthony • Bell, we Non-Executive are caring and Director kind we go the extra mile • we are welcoming Mike Chapman, Vice Chair and Senior Independent Director and friendly • we are caring and kind • we value and respect • we work together • we go • we are welcoming and friendly • we are caringMalcolm and Cowen, kind Non-Executive • we value Director and we go the extra mile • we areKathy welcoming Doran, Non-Executive and friendly Director • we are caring and kind • we value and respect • we work togetherJulie •Jarman, we go Non-Executive the extra Director mile we are welcoming and friendly • we are caring and kind • weProfessor value Karenand respectLuker, Non-Executive • we work Director • we are welcoming and friendly • we are caring and kind Terry McDonnell, Non-Executive Director we go the extra mile • we are welcoming Brian Slater, Non-Executive Director

Sunita Thomson, Non-Executive Director

Bev Humphrey, Chief Executive

Dr Steve Colgan, Medical Director

Gill Green, Director of Nursing and Operations

Ismail Hafeji, Director of Finance, Information Management and Technology

Andrew Maloney, Director of Human Resources and Governance

Joe Peers, Director of Estates and Facilities

Neil Thwaite, Deputy Chief Executive and Director of Business and Service Development

Page 20 Greater Manchester West Mental Health NHS Foundation Trust Directors’ Report and Management Commentary

Greater Manchester West Mental Health NHS Foundation Trust recognises that equality of opportunity in employment will promote the full use of the skills and abilities of its entire workforce. Only with the help and commitment of present and future staff will the Trust be able to provide sensitive and effective health care to all its population. The Trust recognises that by developing and using the skills of the whole workforce and in recruiting from all sections of the community will it be best able to meet its core values and objectives.

The Trust’s Equal Opportunity Policy aims to prevent covert acts of discrimination but also to highlight requirements and practices, which, although possibly unintentional are discriminatory in nature. It is intended to aid the development of good employment practices in respect of present and future employees.

mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • the extra mile friendly • we are caring and kind • we value and respect • we work together •

All staff are treated equally and fairly go the extra mile and friendly • we are caring and kind •

Everyone who works inwe the value Trust, or and applies respect to work in• thewe Trust, work should together be treated • we go the extra mile fairly and valued equally.and All friendly conditions of• weservice are and caring job requirements and kind should • we fit with value and respect • we work together • the needs of the service and those who work •in weit, regardless are welcoming of age, disability, and race, friendly • we are caring and kind • we value and nationality, ethnic or national origin, gender, religion, beliefs, sexual orientation, domestic circumstances, social andrespect employment • we status, work marriage together and civil • wepartnership, go the pregnancy extra mile • we are welcoming and friendly • we and maternity, HIV status,are gendercaring reassignment and kind or • political we value affiliation and or traderespect union • we work together • membership. we are welcoming and friendly • we are caring and kind • we value and respect • we work Equality of opportunity means that anwe individual’s go the diversity extra is viewed mile positively • we are and, welcoming and friendly • we are caring and kind in recognising that everyone is different, valuing equally the unique contribution that individual experience, •knowledge we value and and skills canrespect make. • we work together • we go the extra mile and friendly • we are caring and kind • we value and respect • we work together • In September 2014, the Health Service Journal announced that GMW was in the top 100 NHS trusts to work for. Out of the 250 NHS trusts• we who are had welcoming taken part in the and annual friendly NHS • we are caring and kind • we value and staff survey, GMW wasrespect showcased • aswe one work of the togetherbest to work •for. we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together •

Annual Report 2014/15 Page 21 Staff Health and Wellbeing is of upmost Importance

The Health and Safety at Work Act (1974) places a duty on every employer to prepare, and as often as may be appropriate, revise a written health and safety policy and to bring it and any revision to the notice of all relevant persons. GMW has a robust policy encompassing all employees, bank and agency staff, patients and service users, students, volunteers, visitors, contractors and members of the public. It encompasses all activities, premises and services of the Trust. The policy sets out the arrangements for health and safety management within the Trust and determines the responsibility for health and safety at all levels and the methods of communication required for the effective management of health and safety. The purpose of this policy is to provide a framework around which a safe and healthy work environment can be maintained by promoting good working practices and encouraging involvement and commitment to this policy at all levels of the Trust. Whilst legislation exists to enforce good standards of health and safety, the Trust aims not only to adhere to these standards but to improve on them.

The promotion and maintenance of the physical and mental wellbeing of all staff is vitally important to the Trust. This is why we have access to a dedicated Occupational Health team of doctors and practitioners to advise the organisation on how best to manage and support an employee who is experiencing illness.

Due to the geographical spread of our locations, we have to rely mainly on electronic communications which is why we send a weekly e-bulletin to all staff and rely on our website and intranet to provide staff with the latest information. Over the next 12 months, the Marketing and Communications Team are seeking to improve online availability of information for staff at our various sites.

These communication methods routinely include trust performance and financial issues to reassure staff of the current position of the trust.

Page 22 Greater Manchester West Mental Health NHS Foundation Trust Annual Report 2014/15 Page 23 we go the extra mile • weEnhanced are welcoming and Quality friendly Governance • we are caring and kind • we value and respect • we workReporting together • we go the extra • we are welcoming and friendly • we are caring and kind • we value and respect • we are welcomingGMW is a high and performing friendly organisation, • we are achieving all its mandatory targets set by caring and kind • we value and respect • we work together Commissioners,• we go the the extraCare Quality mile Commission and Monitor. As well as also achieving our financial targets and cost improvement efficiencies, we compare well with other similar are welcoming and friendly • we are caring and kind • weorganisations value and in bothrespect the national • we staff work surveys and community patient survey when • we are welcoming and friendlycompared • to we other are organisations. The caring and kind findings from the 2014 Community Mental Health Survey for GMW were published by the Care Quality Commission (CQC). Service users we go the extrawere asked mile what • wethey thoughtare welcoming about different aspects of the care and treatment they and friendly • we are caring and kind • we value and respectreceived • we at work GMW. together • we go • we are welcoming and friendly • we are caringGMW’s resultsand arekind comparable • we value to most and other trusts that participated in the survey and findings were that the vast majority of respondents gave positive answers allowing GMW we go the extra mile • we areto scorewelcoming higher than and most friendly Trusts in England • we on the following aspects of care: are caring and kind • we value and respect • we work together • we go the extra mile • Respondents felt they were always treated with dignity and respect we are welcoming and friendly • we are caring and kind • we value and respect • we work • Respondents felt involved in decisions about medication • we are welcoming and friendly • we are caring and kind • They felt care and services were organized well and that they were seen often enough we go the extrato meet mile their • needs we are welcoming • A large number felt that they were listened to carefully and were given enough time to discuss their needs and treatment • Many felt that they knew how to contact their care coordinator if they had concerns • Three quarters rated their overall experience of GMW as good or very good • Almost two thirds of respondents knew who to contact out of hours in a crisis

As always there is room for improvement and this includes providing better information on medication purposes and side effects. We will also aim to improve service users’ knowledge of who their care coordinator is and how they can be accessed.

It is also imperative that all service users have access to an out of hour’s mental health support telephone number and We work closely with Carers

Page 24 Greater Manchester West Mental Health NHS Foundation Trust Enhanced Quality Governance Reporting

we are committed to making this a reality under the new home-based treatment services during 2015.

Although our Carers Charter has been fully embedded across the Trust, it is vital that enough information is given to families and carers as they play such an important role in the recovery and ongoing support of service users. We will ensure carers and families remain a significant priority over 2015 – 16 and beyond.

However, alongside the annual community mental health survey, service users are now able to give feedback on their experiences of care and treatment provided by GMW since January 2015. Mental Health and Community Health are the latest two areas to start gathering information from thousands of patients across the country – a move that comes after the Family and Friends Test went live across all 8,000 GP practices in England where up to one million people see their doctor every day.

GMW mental health inpatients are given an electronic questionnaire to complete on discharge rating how likely they are to recommend us to their friends and family. The majority of our community mental health service users receive a text message asking them the same question. Some services will also have a post box in reception areas and service users will be encouraged to complete a postcard to say how likely they are to recommend us.

However, the real strength of the FFT lies in the rich feedback that service users are able to give direct to our staff in near real time. The free-text comments offer a real opportunity to find out quickly what weis working go the well andextra what mile can be •improved, we are making welcoming and friendly • we are caring and kind our services better for everyone. • we value and respect • we work together • we go the extra mile Another development has been the new feature of the ‘Achieve’, Salford recovery service which will workfriendly intensively • with we all are family caring members and to explorekind •the we impact value of and respect • we work together • alcohol misuse and equip them with the• wetools are to break welcoming harmful patterns and offriendly behaviour. • we are caring and kind • we value and respect A specialist young person’s team will work with teenagers and young adults at a time when people can be particularly vulnerable to developingwe longer go theterm problemsextra ormile using • we are welcoming and friendly • we are alcohol in a way whichcaring will impact and on kind their future • we life value chances, and health respect and wellbeing. • we work together • we go the extra mile welcoming and friendly • we are caring and kind • we value and respect • we work together • • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • • we are welcoming and friendly • we are caring and kind • we value and respect

Photo from the Achieve Salford Recovery Service Launch Event • we work together • mile • we are welcoming and friendly • During 2014, GMW becamewe are the firstcaring UK mental and healthkind trust • we to implementvalue and and respect demonstrate • we work together • all ten Safeward interventions on a pilot inpatient ward. The interventions involve forming better relationships between• we staffare andwelcoming patients, managing and friendly patient’s moods • we more are closely caring and kind • we value and respect • we work and creating discharge messages whereby patients who are being discharged leave positive messages for current and future patients about their care and time spent on the ward. Safeward principles comprise of planning, compromise, positive environments and reducing incidents which fall in line with GMW’s CQUIN targets and quality account priorities. The Safewards project will roll out to all inpatient wards by 2016.

Annual Report 2014/15 Page 25 It is important that we hold ourselves accountable to external organisations to demonstrate our openness, transparency and that we are doing the very best for our service users and their families and carers. We have positive, well established relationships with GP colleagues in clinical commissioning groups (CCGs) and third sector organisations and are committed to working together for the good of the local health and social care economies. By working closely with different partners, we can ensure that mental health, drug and alcohol services remain top of the health agenda.

We have a strong relationship with the Local Authority Overview and Scrutiny Committees (OSCs) in Bolton, Salford and Trafford, as well as the newly established Healthwatch and the local Health and Wellbeing Boards. We place a high value on their involvement and are glad they share our commitment to provide high quality mental health services for the communities we serve.

Safeguarding children and vulnerable adults is also one of our top priorities and we work with local safeguarding boards to make sure all partners involved in the care of children and adults communicate regularly.

The Board of Directors publicly scrutinises key performance and quality indicators at the public meetings of the Trust Board. As well as at Board level, our performance against local and national targets and quality indicators is subject to internal scrutiny at individual Directorate level and Trust-wide at Network Boards and the Performance Measures Group. We are also monitored by external organisations including our Commissioners through contract and quality groups, the Care Quality Commission (CQC) and Monitor.

The CQC have inspected our services regularly during the last 12 months and our registration with the CQC is without any conditions, showing full compliance with the essential standards of quality and safety.

Our Business Intelligence Team has established robust structures and processes to enable review and reporting against our performance requirements and other contractual commitments. These processes enable us to demonstrate our compliance with standards, as well as identifying areas for further improvement.

Our Quality Account also provides assurance about the quality of services provided by GMW. The Quality Governance Committee, a formal sub-committee of the Board monitors in detail performance against key milestones and improvement priorities. We take advantage of our foundation trust status by hosting the Dragons Den initiative, which is chaired by the Trust Chair. This has funded small innovative projects across our services, which help us achieve our quality account priorities. Front line staff and service users and Dragons Den Panel carers have pitched their ideas to the Dragons, resulting in over 30 projects being funded. These work streams have helped us demonstrate improvement in areas such as physical healthcare, carers and service user’s experience, psychological therapies, dual diagnosis and dementia care. Some examples of the initiatives the Dragons have funded can be found in the Quality Account.

The Trust is committed to ensuring that service users, carers, staff and the general public who access our services have a safe, effective and positive experience. In delivering this commitment, the Trust recognises and supports the need for care to be delivered in safe

Page 26 Greater Manchester West Mental Health NHS Foundation Trust environments with minimal risk to service users and staff and that care delivery is person- centred, evidence based, efficient and effective.

We acknowledge and appreciate that Quality and Governance is everyone’s responsibility and all staff must contribute to the organisational values by:

• Working within National Guidance, Trust policies and local service guidelines • Adhering to multiagency safeguarding procedures, including Prevent to protect children, young people and vulnerable adults from all forms of abuse • Identifying and managing potential risks and reporting incidents in order to protect service users, carers and staff and support lessons learnt from such events • Demonstrating transparency, openness and a duty of candour • Valuing and respecting diversity and treating service users, carers and colleagues with dignity, respect and compassion • Actively contributing to and supporting positive practice and innovation • Addressing and managing evidence of poor standards of care or negligence or abuse of service users by reporting such incidents as per Trust policy • Keeping up to date with research, developments and evidence based practice • Delivering a robust clinical audit programme and acting on results as appropriate • Supporting data collection for the monitoring and reporting of service quality to external regulators i.e. Monitor, Health and Safety Executive, Care Quality Commission, Clinical Commissioning Groups, NHS England and the NHS Litigation Authority in order to provide organisational compliance assurance

The safety of service users, carers, staff and the general public is of the utmost importance. We continue to use and expand our web-based patient safety and risk management system, which are linked with our electronic medical records systems to ensure service user records can be accessed quickly and securely. These systems have continued to improve the timely management and lessons learnt from incidents and identify potential risks. As a result of our web-based patient safety and Safety is very important to us risk management system we continue to see a reduction in clinical and non-clinical claims. We have had independent verification that our incident management and risk management arrangements are strong and robust enough to ensure that patient safety is first-rate.

Our Customer Care Team support and facilitate the management of complaints and compliments. When we receive a complaint, we aim to address it in a timely manner and provide individuals with all the evidence available to show that we have dealt with their concerns using a clear and transparent approach. Service users and carers are involved with meetings and projects in order to share their experiences so that we may further understand the needs of our local communities and respond by adopting our services accordingly.

To further facilitate lessons learnt, safety and evidence based practice we have an annual internal audit calendar. This audit calendar is produced and agreed by the Nice Implementation & Audit Group which reports to the Board of Directors. This audit calendar captures the national, clinical and directorate audits that we undertake in order to demonstrate that we do take the provision of patient centred, equitable, safe, high quality, and evidence based care very seriously. Any weaknesses highlighted from the audit outcomes are then addressed and reassessed by repeating the audit cycle. Further

Annual Report 2014/15 Page 27 assurance is provided, as required, through the procurement of Mersey Internal Audit Agency who undertook independent audits within the Trust and produced a level of assurance and recommendations for improvement. This assurance is further enhanced through our Quality Accounts.

We continue to monitor our performance under the Mental Health Act to ensure that our practice is lawful and in accordance with the Code of Practice and we continue to strengthen our Trust-wide Mental Health Act management arrangements to help us achieve consistently high standards in our administration of the Act.

Whilst we are recognised for already providing good quality care, demonstrated by our compliance with external regulators, we recognise that there is always room for improvement. As an organisation with a culture for continuous learning, we encourage all our staff and service users to make suggestions for quality improvement and be involved in implementing the great ideas that are adopted, in order to further enhance safe, effective and positive experiences for users of our services.

Page 28 Greater Manchester West Mental Health NHS Foundation Trust Annual Report 2014/15 Page 29 • we are welcoming and friendly • we are caring and kind • weStatement value and respect • weof work Directors’ • we are welcoming and friendlyResponsibilities • we are caring and kind in Respect of we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respectthe • we workAccounts together • we go • we are welcoming and friendly • we are caring and kind • we value and we go the extra mile • we areThe welcoming directors are required and friendly under the NHS• we Act 2006 and under a direction issued by Monitor, to prepare accounts for each financial year. In preparing those accounts, the are caring and kind • we value and respect • we work togetherdirectors • we are requiredgo the to ensureextra that: mile we are welcoming and friendly • we are caring and kind • we• Sovalue far as theand directors respect are aware,• we therework is no relevant audit information* of which • we are welcoming and friendlyauditors • arewe aware; are caring and kind we go the extra• mile The directors • we have are taken welcoming all of the steps and that they ought to have taken as a director in order to make themselves aware of any relevant audit information* and to establish friendly • we are caring and kind • we value and respect • wethat work the auditorstogether are aware • we of thatgo information.the • we are welcoming and friendly • we are caring and* “Relevant kind audit• we information” value and means respect information needed by the auditor in connection with preparing their report. • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • weA director go the is regarded extra as milehaving •taken we allare the steps that they ought to have taken as a director in order to do the things mentioned above, if they have: welcoming and friendly • we are caring and kind • we value and respect • we work together • • Made such enquiries of their fellow directors and of the NHS Foundation Trust’s • we are welcoming and friendly • we areauditors caring for that and purpose, kind and• we value • Taken such other steps (if any) for that purpose, as are required by their duty as a director of the NHS foundation trust to exercise reasonable care, skill and diligence.

After making enquiries, the directors have a reasonable expectation that the NHS Foundation Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the accounts.

The directors confirm to the best of their knowledge and belief they have complied with the above requirements in preparing the accounts.

Accounting policies for pensions and other retirement benefits are set in note 7 to the accounts and that details of senior employees can be found in page 27 of the remuneration report.

Page 30 Greater Manchester West Mental Health NHS Foundation Trust Statement of Directors’ Responsibilities in Respect of the Accounts

By order of the Board.

Signed: Signed:

B ev H umpH rey i smail H afeji

C H ief e xeC utive D ireC tor of f inanC e anD im&t

D ate: 22n D m ay 2015 D ate: 22n D m ay 2015

Our Board of Directors operate to the highest corporate governance standards. It is responsible for all aspects of the performance of the Trust, including financial performance, clinical and service quality, management and performance. The Board is legally accountable• we value for the and services respect provided • bywe the work Trust and together their key • we go the extra mile responsibilities include: and friendly • we are caring and kind • we value and respect • we work together • • Setting the strategic direction, having taken into account the Council of Governors’ views • we are welcoming and friendly • we are caring and kind • we value and • Ensuring that our servicesrespect provide • we safe, work clean andtogether personal care• we for gopatients the extra mile • we are welcoming and friendly • we • Ensuring robust governance arrangements are in place are caring and kind • we value and respect • we work together • • Ensuring rigorous performance management so that we achieve all local and national targets we are welcoming and friendly • we are caring and kind • we value and respect • we work • Ensuring that we are always compliantwe with go ourthe Terms extra of Authorisation mile • we are welcoming and friendly • we are caring and kind The Board has decided• that we certain value decisions and respect may only • be we exercised work or together made in formal • we go the extra mile Board sessions. These are set out in the reservation of powers to the Board and the Scheme of Delegation.friendly • we are caring and kind • we value and respect • we work together • • we are welcoming and friendly • we are caring and kind • we value and respect Declaration of Interests we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile The Board of Directors undertakes an annual review of its Register of Declared Interest. At each meeting of the Boardwelcoming of Directors, and a standing friendly agenda • we item are also caring requires and all Executive kind • we value and respect • we work together • and Non-Executive Directorswe go to makethe knownextra an mile interest • inwe relation are welcomingto the agenda and and friendly • we are caring and kind • we value changes to their declared interests. The Register of Declared Interests for the Board of Directors is held by theand Trust respect Secretary and• we is available work togetherfor public inspection. Members • we go the extra of mile • we are welcoming and friendly • the public can gain access by contacting Steph Neville, Head of Corporate Affairs, Trust Headquarters, Greaterwe Manchester are caring West Mentaland kind Health • NHS we Foundation value and Trust, respect Bury New • we work together • Road, Prestwich, M25 3BL

Annual Report 2014/15 Page 31 • we are welcoming and friendly • we areRegister caring and kind of • we Interests value and we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work togetherAs an NHS • Foundation we go theTrust, Greaterextra Manchester mile West Mental Health NHS Foundation Trust is required by its Terms of Authorisation to comply with the principles of best we are welcoming and friendly • we are caring and kind •practice we value applicable and to corporaterespect governance• we work in the NHS/health sector and with any • we are welcoming andrelevant friendly code •of we practice, are incaring particular and the kind NHS Foundation Trust Code of Governance

• we value and respect • we work together • we go theThe extra expectations mile of • the we NHS are in respect welcoming of standards of corporate conduct are set out in and friendly • we are caring and kind • we value and respectguidance • we issued work by the together Department •of we Health go and the NHS Appointments Commission, the ‘Code of Conduct Code of Accountability in the NHS’ and Monitor’s ‘The NHS • we are welcoming and friendly • we areFoundation caring Trustand Code kind of Governance’.• we value and we go the extra mile • we are welcoming and friendly • we The Code of Conduct for the Board of Directors of Greater Manchester Mental Health are caring and kind • we value and respect • we work togetherNHS Foundation • we Trustgo (thethe Trust) extra is consistent mile with this guidance and seeks to expand we are welcoming and friendly • we are caring and kind •on we and valuecomplement and the respect Constitution • we for work Greater Manchester West Mental Health NHS Foundation Trust (the Constitution). • we are welcoming and friendly • we are caring and kind Under the provisions of the Constitution, the Trust shall have a Register of Interests to • we value and respect • we work together • we go therecord extra formally mile declarations • we are of interests welcoming of Board of Directors. In particular, the Register and friendly • we are caring and kind • we value and respectwill include • we details work of alltogether directorships • andwe other go relevant material interests, which both Executive and Non-Executive Board Directors have declared. • we are welcoming and friendly • we are caring and kind • we value and we go the extra mile • weMembers are welcoming of the Board ofand Directors friendly must declare• we on appointment any interests, which might place, or be seen to place them in a potential conflict of interest between their are caring and kind • we value and respect • we work togetherpersonal or• privatewe go interest the and extra those arisingmile from their membership of the Board of Directors. Board Directors are also required to declare any conflict of interest that arises in the course of conducting Trust Business, specifically at each meeting of the Board.

The Register of Interests will be maintained by the Head of Corporate Affairs and shall be available for inspection by members of the public on request.

The Register will be subject to annual review by the Board.

Page 32 Greater Manchester West Mental Health NHS Foundation Trust Register of Interests

Chair Alan Maden Trustee Pension Fund – St Ann’s Hospice

Non Executive Directors Jon Bashford Director of Research and Development TiFCi

Senior Partner, Community Innovations Enterprise LLP

Undertakes contract work across NHS & LAs across England Anthony Bell Non- Executive Director, Guinness Partnership

Non-Executive Director, Carriocca Enterprises

Vice-Principal, The Grimsby Institute of Further & Higher Education Mike Chapman No directorships or significant interests to declare Malcolm Cowen No directorships of significant interests to declare Kathy Doran Trustee and acting Vice-Chair of The Reader Organisation Non Executive Director of Your Housing Group Julie Jarman Trustee of MIND in Salford (delivers IMHA services with GMW) Karen Luker University nominated Non-Executive Director post Head of School of Nursing, Midwifery and Social Work, Queen’s Nursing Institute of Professor of Community Nursing, The University of Manchester Terry McDonnell No directorships or significant interests to declare Brian Slater No directorships or significant interests to declare Sunita Thomson Director• we of Goalvalue Development and respect Consultancy • we work together • we go the extra mile and friendly • we are caring and kind • we value and respect • we work together • Chief Executive Bev Humphrey No directorship or significant• interest we are to declare welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we Executive Directors Stephen Colgan No aredirectorships caring or significantand kind interests • we to valuedeclare and respect • we work together • Gill Green No wedirectorships are welcoming or significant interests and friendlyto declare • we are caring and kind • we value and respect • we work Ismail Hafeji No directorships or significant interests to declare Andrew Maloney No directorships or significantwe go intereststhe extra to declare mile • we are welcoming and friendly • we are caring and kind Joe Peers No •directorships we value or significantand respect interests • towe declare work together • we go the extra mile Neil Thwaite No directorships or significant interests to declare friendly • we are caring and kind • we value and respect • we work together • • we are welcoming and friendly • we are caring and kind • we value and respect we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together •

Annual Report 2014/15 Page 33 we are caring and kind • we value and respect • we work togetherRenumeration • we go the extra mile Report • we are welcoming and friendly • we are caring and kind • we value and respect • we work Table 2 Remuneration of Board Members • we are welcoming and friendly • we are caring and kind 2014/15 2014/15 2013/14 2013/14 Taxable Taxable Name Title Salary Total Salary Total we go the extra mile • we are welcoming Benefits* Benefits* and Fees Salary and Fees Salary and friendly • we are caring and kind • we value and respect • we work together • we(Bands go of To nearest (Bands of (Bands of To nearest (Bands of £5,000) £100) £5,000) £5,000) £100) £5,000) • we are welcoming and friendly • we are caring and kind • we value and£’000 £ £’000 £’000 £ £’000 A Maden Chair 40-45 40-45 40-45 40-45 we go the extra mile • we are welcomingNon Executive and Director friendly (retired July • we M Chapman 0-10 0-10 15-20 15-20 2014) are caring and kind • we value and respect • we work together • weNon go Executive the Director extra (retired July mile J Bashford 0-10 0-10 10-15 10-15 2014) we are welcoming and friendly • we are caring and kind • weProf value K Luker andNon Executive respect Director • we work10-15 10-15 10-15 10-15 Non Executive Director (retired July • we are welcoming and friendlyB Slater • we are caring and kind0-10 0-10 1015 10-15 2014) we go the extraT McDonnellmile • weNon Executive are Directorwelcoming and1520 15-20 15-20 15-20 friendly • we are caring and kind • we value and respect • weM Cowen work togetherNon Executive Director • we go the15-20 15-20 15-20 15-20 Non Executive Director- new in A Bell 0-10 0-10 • we are welcoming and friendly • we are caring and kind post• we 14/15 value and respect Non Executive Director- new in K Doran 0-10 0-10 • we are welcoming Postand 14/15 friendly • we are Non Executive Director- new in J Jarman 0-10 0-10 caring and kind • we value and respect • we work together • we go thePost 14/15extra mile • we are B Humphrey Chief Executive 160-165 3,300 165-170 160-165 3,400 160-165 welcoming and friendly • we are caring and kind • we value andG Green respectDirector • we of Operations work &Nursing together110-115 • 110-115 110-115 1,100 110-115 • we are welcoming and friendly • we I areHafeji caringDirectorof and Finance kind and IM&T • we value110-115 3,100 115-120 110-115 1,800 110-115 115-120 1 A Maloney Directorof HR & Governance 110-115 1 3,700 2,800 115-120 110-115 1 S Colgan Medical Director 95-100 95-100 95-100 95-100 J Peers Director of Estates & Facilities 120-125 3,300 120-125 110-115 3,000 115-120 Director of Service & Business N Thwaite 110-115 3,400 115-120 110-115 3,000 115-120 Development

* Benefits in kind relate to the provision of lease cars to Board Members. ** There were no annual performance related or long-term performance-related bonuses paid to Board Members during 2013/14 or 2014/15

Page 34 Greater Manchester West Mental Health NHS Foundation Trust Renumeration Report

Table 3 Pension Benefits as at 31 March 2015

Total Real Accrued Cash Cash Real Increase Pension Equivalent Equivalent increase in Pension and Transfer Transfer in Cash Name Title and Related Value at Value at Equivalent Related Lump Sum 31 March 31 March Transfer Sum at Age at Age 60 2015 2014 Value 60 at 31 March 2015 (Bands of (Bands of £2,500) £5,000) £’000 £’000 £’000 £’000 £’000 Bev Humphrey Chief Executive 7.5-10 255-260 1,241 1,166 75 Director of Service and Business Neil Thwaite 5-7.5 120-125 459 423 36 Development Ismail Hafeji Directorof Finance and IM&T 5-7.5 175-180 893 841 52 Gillian Green Director of Operations and Nursing 10-12.5 185-190 993 907 86 Andrew Maloney Director of HR and Governance 5-7.5 107-110 379 352 27 Joseph Peers Director of Estates and Facilities 5-7.5 225-230 0 1,276 -1,276

As non-executive directors do not receive pensionable remuneration, there are no entries in respect of pensions for non-executive directors.

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capital value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme, or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses• we tovalue transfer and the benefitsrespect accrued • we in work their former together scheme. • we go the extra mile The pension figures shown relate to the benefits that the individual has accrued as a consequence of their totaland membership friendly of• wethe pension are caring scheme, and notjust kind their •service we valuein a and respect • we work together • senior capacity to which the disclosure applies.• Thewe CETV are and welcoming the other pension and figures, friendly • we are caring and kind • we value and include the value of any pension benefits in another scheme or arrangement which the individual has transferredrespect to the NHS• we pension work scheme. together They also • we include go any the additional extra mile • we are welcoming and friendly • we pension benefit accrued to the member as a result of their purchasing additional years of pension service in theare scheme caring at their and own kind cost. •CETV5 we arevalue calculated and withinrespect the • we work together • guidelines and framework prescribed by the Institute and Faculty of Actuaries. we are welcoming and friendly • we are caring and kind • we value and respect • we work Real Increase in CETV -This reflects the increase in CETV. It takes account of the increase in accrued pension due to inflation, contributionswe go the paid extra by the employeemile • (includingwe are welcomingthe and friendly • we are caring and kind value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation• we factors value forth and e start respect and end • ofwe the work period. together • we go the extra mile

Table 4 Governorsfriendly and Directors • we Expenses are caring and kind • we value and respect • we work together •

• we are welcoming2014/15 and friendly2013/14 • we are caring and kind • we value and respect Governors Directors Governors Directors Total Numberin Office during the year 33 we go17 the extra27 mile14 • we are welcoming and friendly • we are Number Receiving Expenses caring and kind • we0 value and12 respect3 • we work11 together • we go the extra mile Aggregate Expenses Sum Paid (to the nearest £000) 0 6,900 200 6,600 welcoming and friendly • we are caring and kind • we value and respect • we work together • Three non executive directors retired part way through the financial year 2014/15 with three new non executiveswe subsequently go the extra joining milethe Board • we Govenor are welcomingelections took place and friendly • we are caring and kind • we value during the year due to 2 resignations and one govenor coming to the end of term of their office. 9 new governorsand were respect elected to • officewe work in July 2014,together and 1 in • February we go 2015. the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together •

Annual Report 2014/15 Page 35 Table 5 Hutton Review of Fair Pay - Disclosure Information

2014/15 2013/14 £’000 £’000 Band of Highest Paid Directors Total * 165-170 160-165 Mid-point of Highest Paid Director 167.5 162.5

* - The highest paid director represents the Chief Executive.

2014/15 2013/14 Staff Median Total Remuneration * £26,822 £26,822 Ratio ** 6.24 times 6.06 times

* - The calculation is based on full-time staff as at 31st March 2015 and is calculated on an annualised basis. ** - Ratio represents the median remuneration of staff compared to the mid-point of the highest paid director.

Table 6 Off-Payroll Engagements

For all off-payroll engagements as of 31 Mar 14 to 1 Apr 15, for more than £220 per day and that last for longer 2014/15 2013/14 than six months” No. of existing engagements as of 31 Mar 2016 Of which: Number that have existed for less than one year at the time of 1 1 reporting Number that have existed for between one and two years at 3 0 the time of reporting Number that have existed for between two and three years at the time of_reporting Number that have existed for between three and four years at the time of reporting Number that have existed for four or more years at the time of reporting

The Trust can confirm that all existing off payroll engagements, outlined above, have been subject to a risk based assessment as to whether assurance is required that the individual is paying the correct amount of tax. The Trust can confirm that the

For all new off-payroll engagements, or those that reached six months in duration, between 1 Apr 2014 and 2014/15 2013/14 31 Mar 2015, for more than £220 per day and that last for longer than six months No. Of No. Of Engagements Engagements Number of new engagements, or those that reached six months 1 0 induration between 01 Apr 2014 and 31 Mar 2015 Number of the above which include contractual clauses giving the trustthe right to request assurance in relation to income tax 1 0 and national insurance obligations Number for whom assurance has been requested 1 0 Of which: Number for whom assurance has been received 1 0 Number for whom assurance has not been received* 0 0 Number that have been terminated as a result of assurance not 1 0 being received

Page 36 Greater Manchester West Mental Health NHS Foundation Trust For any off-payroll engagements of board members, and/or senior officials with significant financial responsibility, between 2014/15 1 Apr 2014 & 31 Mar Number of engagements Number of off-payroll engagements of board members, and/or, senior 0 officials with significant financial responsibility, during the financial year. Number of individuals that have been deemed ‘board members and/or senior officials with significant financial responsibility”. This figure should 0 include both off-payroll and on-payroll engagements.

Sickness Absence Information In accordance with FReM (Government Financial Reporting Manual) guidance the sickness absence figures have been calculated on a calender year basis for 2014/15 (January to December 2014). They are based on data from ESR Data Warehouse. The sickness absence rate is calculated by dividing the sum total sickness absence days (including non working- days) by the sum total available days per month for each staff member).

Average of Full Time Full Time Average Sick 12 months Equivalent Average Full Time Equivalent Days per (2014 days Lost Equivalent 2014 days Full Time calender to Sickness Available Equivalent year) Absence 6.50% 2,646 595,415 38,633 14.6

Signed:

B ev H umpH rey, CH ief e xeC utive D ate: 22n D m ay 2015

Annual Report 2014/15 Page 37 • we are welcoming and friendly • we are caring and kind • weHow value and We respect Work • we work • we are welcoming and friendly • we are caring and kind Greater Manchester West Mental Health NHS Foundation Trust has applied the principles we go the extraof the NHSmile Foundation • we are Trust welcoming Code of Governance on a comply or explain basis. The NHS and friendly • we are caring and kind • we value and respectFoundation • we work Trust Codetogether of Governance, • we mostgo recently revised in July 2014, is based on the principles of the UK Corporate Governance Code issued in 2012. • we are welcoming and friendly • we are caring and kind • we value and we go the extra mile • we areThe welcoming Board of Directors and have friendly established • we governance policies to make sure we comply with the Code of Governance. These include: are caring and kind • we value and respect • we work together • we go the extra mile • Corporate Governance Framework Manual incorporating the Standing Orders of the we are welcoming and friendly • we are caring and kind • weBoard value of Directors,and respect Standing • Orderswe work of the Council of Governors, Scheme of Reservation • we are welcoming and friendlyand Delegation • we are of Powers caring and and Standing kind Financial Institutions we go the extra• mile Governance • we Strategy are welcoming and Plan and friendly • we are caring and kind • we value and respect • we• Established work together role of Senior • weIndependent go the Director • we are welcoming and friendly • we are caring and• Regular kind private • we meetings value andbetween respect the Chair and Non-Executive Directors • Non-Executive Director Performance Appraisal Process developed and agreed by the • we are welcomingCouncil of andGovernors friendly • we are caring and kind • we value and respect • we work together • we• Formal go theinduction extra programme mile •for we Non-Executive are and Executive Directors welcoming and friendly • we are caring and kind • we value and• Attendance respect •records we work for Directors together and Governors • at key meetings • we are welcoming and friendly • we• are Comprehensive caring and induction kind programme• we value for Governors • Register of Interests of Directors, Governors and Senior Staff • Establishment of the role of Lead Governor • Comprehensive Assurance Briefing Report to all meetings of Council of Governors • Effective Council of Governors’ sub-committee structure • Council of Governors’ agenda setting process • Membership Development Strategy, Implementation Plan and Key Performance Indicators • Nominations, Remuneration and Terms of Service Committee of the Board of Directors • Nominations, Remuneration and Terms of Service Committee of the Council of Governors • Agreed recruitment process for Non-Executive Directors • High quality reports to the Board of Directors and Council of Governors • Board evaluation and development plan • Council of Governors’ presentation of performance and achievement at Annual

Page 38 Greater Manchester West Mental Health NHS Foundation Trust How We Work

Members’ Meetings • Code of Conduct for Governors • Going Concern Report • Robust Audit Committee arrangements • Governor-led appointment process for External Auditor • Whistle-blowing Policy and Counter Fraud Policy and Plan

The sub-committees of the Board are:

• Audit Committee • Remuneration and Terms of Service Committee • Remuneration and Terms of Office Committee • Quality Governance Committee • Charitable Funds Committee • Nominations Committee

GMW is compliant of the NHS Foundation Trust Code of Governance. All other requirements are listed in the table in Appendix 1 of this Annual Report, with page references of where to find these matters which are in the public interest.

Table 7 - Board of Directors• we value attendance:- and respect • we work together • we go the extra mile

Alan Maden (Chair) and friendly • we are caring and kind 10/10• we value and respect • we work together • Mike Chapman • we are welcoming and3/3 friendly • we are caring and kind • we value and Malcolm Cowen 9/10 Anthony Bell respect • we work together • we go the7/7 extra mile • we are welcoming and friendly • we Kathy Doran 7/7 are caring and kind • we value and respect • we work together • Julie Jarman 7/7 Karen Luker we are welcoming and friendly • we are7/10 caring and kind • we value and respect • we work Terry McDonnell 10/10 Brian Slater we go the extra mile • we 3/3are welcoming and friendly • we are caring and kind Jon Bashford • we value and respect • we work together3/3 • we go the extra mile Bev Humphrey 9/10 Andrew Maloney friendly • we are caring and kind • we10/10 value and respect • we work together • Neil Thwaite • we are welcoming and friendly10/10 • we are caring and kind • we value and respect Steve Colgan 9/10 Joe Peers we go the extra7/10 mile • we are welcoming and friendly • we are Ismail Hafeji caring and kind • we value and respect 10/10• we work together • we go the extra mile Gill Green 9/10 welcoming and friendly • we are caring and kind • we value and respect • we work together • The use of appraisal for Directors is good practice and supports the principle outlined in the NHS Foundation Trustwe Code go theof Governance extra milethat an •effective we are Board welcoming of Directors shouldand friendly • we are caring and kind • we value lead every NHS Foundation Trust. and respect • we work together • we go the extra mile • we are welcoming and friendly • During 2014, the Trust continued its Chair and Non-Executive appraisal. The process, led by the Nominationswe Committee are caring on behalf and of kind the Council • we of value Governors and introduced respect • we work together • a structured, competency-based approach including self and peer assessment from the Director. The Chair conducted the Chief Executive’s performance evaluation who in turn conducted those of the Executive Directors.

Annual Report 2014/15 Page 39 The outcome of the Chair and Non-Executive Director appraisals were considered at a Council of Governors meeting during 2014. All Directors have agreed objectives and personal development plans for the following year, which has been developed alongside the Trust’s strategic objectives.

The Board of Directors held dedicated development sessions throughout the year to enable detailed analysis of areas of corporate strategy. The Board received internal audit opinion on the robustness of the Trust’s processes including self-accreditation and Core Standards Assessment and Registration processes and Code of Compliance against Monitor guidance has been received.

Board of Directors – appointment and removal of chair and other non-executive directors

The Council of Governors at a general meeting of the Council of Governors shall appoint or remove the chair of the trust and the other non-executive directors. The Council of Governors shall appoint the Chair and other non-executive directors in accordance with the following procedures:

• The Council of Governors shall appoint a Nominations Committee, chaired by the Chair of the trust (or when a chair is being appointed, the vice-chair, unless the vice-chair is standing for appointment, in which case another non-executive director if the Chair is absent) and comprising some or all of its members. • The Nominations Committee shall seek the views of the Board of Directors as to their recommended criteria and process for selection of candidates and, having regard to those views, shall then seek, short-list and interview such candidates as the committee considers appropriate. • The Nominations Committee shall make recommendations to the Council of Governors as to potential appointments as non-executive directors and shall advise the Board of Directors of those recommendations. • The Nominations Committee shall have such terms of reference and powers as agreed by the Council of Governors. The terms of reference shall have effect as if incorporated into the Standing Orders of the Council of Governors. • Removal of the chair or another non-executive director shall require the approval of not less than three-quarters of the members of the Council of Governors.

Page 40 Greater Manchester West Mental Health NHS Foundation Trust Annual Report 2014/15 Page 41 we go the extra mile • weCouncil are welcoming of and Governorsfriendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • weThe valueTrust has and a Council respect of Governors • we work responsible for representing the views and interests of the members and partner organisations. Governors are local people, service users, • we are welcoming and friendlycarers and • staff we who are have caring been andelected kind by their constituency members to represent their we go the extraviews. They mile also • havewe formalare welcoming duties which include the appointment of the Trust’s Chair and Non-Executive Directors and their termination, approval of the appointment of the and friendly • we are caring and kind • we value and respectChief • we Executive, work providing together their •views we to go the Board of Directors on Trust plans, to review • we are welcoming and friendly • we are caringthe membership and kind development • we value strategy and and to make recommendations for the Trust’s constitution. Being a Governor is a demanding, yet incredibly important and fulfilling we go the extra mile • we arerole. They welcoming remain ourand ‘critical friendly friend’ •who we offer support, guidance and challenges and work closely with us to build local relationships with key stakeholders. Governors present are caring and kind • we value and respect • we work togetherus with • anotherwe go opportunity the extra for us mile to learn from service users and carers, the public and we are welcoming and friendly • we are caring and kind • wekey value stakeholders and torespect improve the• we services work we offer.

• we are welcoming and friendlyDue to the • closewe workingare caring relationship and kind between the Council of Governors and the Board we go the extraof Directors, mile conflicts • we or are disagreements welcoming are aired and resolved quickly. The Lead Governor and Senior Independent Director play a crucial role in this. They also have regular one-to- and friendly • we are caring and kind • we value and respectones • wewith workthe Chair. together • we go

• we are welcoming and friendly • we are caringUnlike many and other kind foundation • we value trusts, thereand is frequent and regular attendance by we go the extra mile • we aremembers welcoming of the Board and of friendlyDirectors at • Council we of Governor meetings. There is also an annual joint meeting held between the Board of Directors and Council of Governors. are caring and kind • we value and respect • we work together • we go the extra mile we are welcoming and friendly • we are caring and kind • weGovernors value helpand to respectagree the strategic• we work direction of travel during the Trust’s Annual Member’s Meetings. Not only do they reflect on the previous year’s performance, they also agree priorities and objectives for the coming twelve months. Minutes of these meetings can be found on the Trust’s website, where there is also the facility for Governors and members to provide feedback to the Trust.

Page 42 Greater Manchester West Mental Health NHS Foundation Trust Council of Governors

Table 8 - Council of Governors attendance

Name Attendance Les Allen, Public: Bolton 2/3 Peter Baimbridge, Public: Salford 3/5 Fareed Bashir: Staff: Medical 3/5 Rob Beresford: Other North West 4/5 Desmond Bradley: Public: Bolton 3/3 Anne Broadhurst (Lead Governor), Service User & Carer 5/5 Paul Butcher: Public: Trafford 5/5 Jennifer Carlisle, Staff: Nursing 5/5 Hazel Carter, Public: Trafford 4/5 Steve Coen, Appointed: Salford City Council 0/5 Ann Cunliffe, Appointed: Bolton 2/4 Jonathan Elster, Public: Salford 1/1 Iris Emery, Service User & Carer 3/3 William Gallagher, Public: Bolton 1/5 Andrew Greenhalgh, Service User & Carer 3/3 Paul Ingham, Service User & Carer 1/5 Eileen Killeen, Service User & Carer 0/5 Leah Madnick, Staff: Allied• we Health value Professionals and respect(resigned in •2014) we work together2/2 • we go the extra mile Sarah McDonald, Staff: andNon-Clinical friendly • we are caring and kind •1/3 we value and respect • we work together • John McLellan, Public: Salford 3/5 Alan Mitchell, Appointed: Trafford • we are welcoming and5/5 friendly • we are caring and kind • we value and Eddie Murdoch, Staff: Non-Clinical 2/3 Paul Pandolfo, Appointed:respect Inspiring • Change we work Manchester together • we go the3/5 extra mile • we are welcoming and friendly • we Margaret Riley, Service areUser & caringCarer and kind • we value and respect4/5 • we work together • Philip Saxton, Public: Other North West 3/5 Sylvia Seddon, Public: Traffordwe are welcoming and friendly • we are3/5 caring and kind • we value and respect • we work Julie Turner, Staff: Non-Clinical we go the extra mile • we 2/3are welcoming and friendly • we are caring and kind Tony Warne, Appointed: University of Salford 0/5 Margaret Willis, Service• User we & valueCarer and respect • we work together2/3 • we go the extra mile Joanne Wilson, Service friendlyUser & Carere • we are caring and kind • we 0/5value and respect • we work together • Sally Claydon, Appointed: Cloughside College (resigned in 2014) 2/2 Andrew Morgan, Public: Bolton (resigned• in we 2014) are welcoming and friendly1/1 • we are caring and kind • we value and respect Mike Hulmes, Staff: Non-Clinical (retired in 2014) we go the extra0/2 mile • we are welcoming and friendly • we are Wilf Davison, Appointed: Cloughside College 0/1 caring and kind • we value and respect • we work together • we go the extra mile All Governors are required to comply with the Trust’s Code of Conduct and declare any interests that may resultwelcoming in a potential and conflict friendly in their role • we as a areGovernor caring of the and Trust. kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together •

Annual Report 2014/15 Page 43 The register of interests is maintained and is available via:

Steph Neville Head of Corporate Affairs Greater Manchester West Mental Health Trust NHS Foundation Trust Bury New Road Prestwich Manchester M25 3BL

The Elections

During 2014, a round of elections took place to fill the following vacancies:

• Public – Bolton (two seats) • Public – Salford (one seat) • Public – Trafford (one seat) • Service users and carers (three seats) • Staff – Allied health professionals (one seat) • Staff – Non –clinical (two seats) • Staff – Nursing (one seat)

The Trafford and the Nursing staff seats were uncontested, however, the member of nursing staff – Joanne Howcroft - left the Trust shortly after taking the role, so this seat remains vacant. No one stood for the seat in Salford, however, the Council has co-opted a Governor into that seat. The new governors are as follows:

Public – Bolton: Les Allen and Desmond Bradley

Public – Salford: Jonathan Elster

Service users and carers: Iris Emery, Andrew Greenhalgh and Margaret Willis

Staff – Allied health professionals: Leah Madnick

Staff – Non-clinical: Sarah McDonald, Eddie Murdoch and Julie Turner

Page 44 Greater Manchester West Mental Health NHS Foundation Trust Annual Report 2014/15 Page 45 we go the extra mile • weMembership are welcoming and friendly of • the Board of we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • weDirectors value and respect • we work • we are welcoming and friendly • we are caring and kind Alan Maden, Chair (current terms ends December we go the extra mile • we are2015) welcoming and friendly • we are caring and kind • we value and respect • we work togetherAlan was• we previously go a Non-Executive Director at the Trust from • we are welcoming and friendly • we are caring and kind • weFebruary value 2005 and to September 2009 when he was formally made Chair of the Trust. He is a retired Senior Partner of a local practice we go the extra mile • we are welcoming and friendlyof solicitors • but we also has a wealth of NHS experience. He was are caring and kind • we value and respect • we work together • we go the extraChair of milethe Bury and Rochdale Health Authority from 1994 to 2002 and was a Non-Executive Director and Vice Chair of the we are welcoming and friendly • we are caring and kind • we value and respectGreater • we Manchester work Strategic Health Authority in April 2002. At the Strategic Health Authority’s request he was also Acting Chair • we are welcoming and friendly • we are caringof the and Manchester kind Mental Health and Social Care Trust from we go the extra mile • we areFebruary welcoming 2002 to September 2004, in a turnaround role. and friendly • we are caring and kind • we value and respect • we work together • we go • we are welcoming and friendly • we are caring and kind • weJon value Bashford, and Non-Executive Director (term of office we go the extra mile • we are welcoming and friendlycame to an• we end in July 2014) are caring and kind • we value and respect • we work together • we go the extraJon became mile a Non-Executive Director in 2005. He has over 20 years’ experience in the statutory and voluntary sectors in the we are welcoming and friendly • we are caring and kind • we value and respectfields • we of drugs,work alcohol and mental health both as a clinician and a senior manager. Jon has a research interest in equality and diversity and his PhD was in the area of race equality and organisational change. Jon is a senior partner with Community Innovations Enterprise (CIE) and undertakes work across the public sector including the NHS on equality, human rights, community engagement and needs assessment.

Page 46 Greater Manchester West Mental Health NHS Foundation Trust Membership of the Board of Directors

Anthony Bell, Non-Executive Director (current terms ends July 2018) Anthony joined GMW in 2014 and is a qualified accountant. He is part-time vice principal of commercial activities at the Grimsby Institute of Further and Higher Education and non-executive director at the Guinness Partnership - a large housing association. Anthony has over 20 years of experience at board level in the education and social housing sectors, and has also had senior roles in the private sector. He is deputy chair of a managed workspace complex company, which supports developing business. Anthony has also previously been a board member and treasurer of a training placement organisation for minority groups, and an education trust which supports disadvantaged groups.

Mike Chapman, Vice Chair and Senior Independent Director (term of office came to an end in July 2014) A Head Teacher for 27 years, Mike was appointed Non-Executive Director of GMW in 2002. He has also acted as Executive Head Teacher to support schools with problems, worked as a • weWorkforce value Remodellingand respect Consultant • we to work schools together and represented • we go the extra mile andteachers friendly and head• we teachers are caring on a range and of issues,kind as • well we as value being and respect • we work together • a member of the Local Strategic Partnership for several years. He has served on Bolton• we Health are Authority,welcoming and was and Chair friendly of • we are caring and kind • we value and Bolton Community Health Council and Non-Executive Director of respectBolton • and we Wigan work Health together Authority. • Inwe 2011, go he thewas awarded extra anmile • we are welcoming and friendly • we Honorary Doctorate for services to Health Care and Education by arethe caring University and of Bolton.kind • we value and respect • we work together • we are welcoming and friendly • we are caring and kind • we value and respect • we work Malcolm weCowen, go Vicethe Chairextra (from mile July • we 2014) are and welcoming and friendly • we are caring and kind Non-Executive Director (current term ends December • we2016) value and respect • we work together • we go the extra mile friendlyMalcolm • iswe a qualified are caring accountant and with kind over • 30 we years value private and respect • we work together • sector experience and 16 years public sector experience, including ten years as a • Directorwe are of welcoming Finance for a large and hospital friendly trust. He • we are caring and kind • we value and respect also works closely with local interest, patient and carer groups and recently retired from thewe National go Offenderthe extra Management mile • we are welcoming and friendly • we are Service with budgetary and financial control for 14 North West caringprisons. Malcolm and kind became• we value a Non-Executive and respect Director • inwe 2009. work together • we go the extra mile welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together •

Annual Report 2014/15 Page 47 Kathy Doran OBE, Non-Executive Director (current term ends July 2018) Kathy joined GMW in 2014 and has 37 year’s public sector experience across central government and NHS providers and commissioners. For 11 years until 2013, Kathy worked in primary care and as cluster primary care trust executive. She is a former member of the National Institute of Health Research Advisory Board and is currently an advisor to NHS Employers, where she is a member of the negotiating teams for GP and dentist pay. Kathy is a non-executive director of Your Housing Group – a large North West housing association. Kathy is also a trustee and vice chair of The Reader Organisation, a Liverpool-based charity.

Julie Jarman, Non-Executive Director (current term ends July 2017) Julie joined GMW in 2014 and is currently the Programme Manager for Church Action on Poverty with responsibility for managing a programme of anti-poverty projects and national campaigning work. Julie has over 17 years’ experience of senior management in the voluntary sector both in the UK and in international development. She also works as a management coach and mentor. Julie is a trustee of two charities: MIND in Salford and HomeWorkers Worldwide.

Professor Karen Luker, Non-Executive Director (current term ends January 2016) Karen is the Head of the School of Nursing, Midwifery and Social Work at the University of Manchester and was previously the Head of the School of Health Sciences at the University of Liverpool. She was also a Non-Executive Director of the former Ashworth Hospital Authority from 1998 to 2002 and was Non- Executive Director for the former Sefton FSHA between 1992 and 1996. She became a Non-Executor Director for GMW in 2004.

Terry McDonnell, Senior Independent (from July 2014) Non-Executive Director (current term ends December 2016) Terry was Chief Executive for one of the largest hospices in the UK which offered the full range of services for end-of-life care and was regulated by the Care Quality Commission. He initially trained as a Psychiatric Social Worker but has held roles which have included management posts in local authority, the NHS and voluntary sectors for over 25 years. He was also Chair of North West Hospice Managers Group and the North West Representative of the UK Hospices Advisory Council. Terry became a Non-Executive Director in 2009. Terry is currently the chair of the Quality Governance and Post-Incident Review committees.

Page 48 Greater Manchester West Mental Health NHS Foundation Trust Brian Slater, Non-Executive Director (term of office came to an end in July 2014) Brian has been a Non-Executive Director since 2007. He is a qualified accountant and is a retired board director of Brother UK. He has an expansive career history in large private sector businesses, with experience in business strategy, workforce design and financial improvement, including working for Deloitte and Touche. Brian is also a proprietor of a wills and estate planning company.

Sunita Thomson, Non-Executive Director (resigned September 2014) Sunita is currently the director/owner of Goal Development Consultancy and formerly had boardroom experience at Novartis Pharmaceuticals. In 2010 Sunita was regional director on a five month project delivering workshops in leadership and management in the NHS. She is also an honorary lecturer at Bolton University in patient care and equality and diversity. Sunita is a specialist member on the panel for mental health tribunals.

Executive Directors

Bev Humphrey, Chief Executive Bev has been Chief Executive of the Trust from October 2006. She was previously Chief Executive for The Walton Centre for Neurosciences NHS Trust in 2004. Other NHS experience includes being Director of Performance for Cumbria and Lancashire Strategic Health Authority in 2002 and Director of Specialist Services Commissioning for Lancashire and South Cumbria in 2000. Prior to this, Bev held various managerial posts in both acute and community services in Merseyside, Essex and Lancashire, having started her career in the NHS in 1983. Bev chairs the North West Mental Health Chief Executives Group and that she is an elected Board Member of the national Mental Health Network of the NHS Confederation.

Dr Steve Colgan, Medical Director Steve was a Research Fellow at the University of Manchester for three years and has a Masters and Doctorate in Psychological Medicine. He was appointed as Consultant General Psychiatrist for the City of Salford in 1992, with responsibility for drug services. He was also Chair of the Medical Staffing Committee in 1996. Steve was appointed medical director in 1999 and continues to lead on clinical governance in addition to research and development’. More recently he has overseen the implementation of systems for medical revalidation and the revised acute care pathway

Annual Report 2014/15 Page 49 Andrew Maloney, Director of Human Resources and Governance With over fifteen years of senior HR management experience, Andrew has worked across a range of NHS sectors. From 2000 to 2004 he worked as the Assistant Director of HR for Sefton Health Authority and Sefton Primary Care Trust working on HR change management projects that supported the establishment of PCTs across Sefton. In 2004 Andrew joined The Walton Centre NHS Trust as Director of HR and in 2009 Andrew joined GMW as Director of HR and Governance in August 2009.

Joe Peers, Director of Estates and Facilities Joe is a Chartered Surveyor; he started his career in the NHS in 1976 as a Building Officer at Wigan Area Health Authority. He has worked at several NHS organisations including the East Lancashire Hospitals NHS Trust where between 1990 and 2007, he was based at Queen’s Park Hospital, Blackburn initially as Assistant Director before being appointed as Head of Estates. In 2007, he joined the Trust as Director of Estates and Facilities.

Neil Thwaite, Director of Development and Performance / Deputy Chief Executive Neil started his career in the NHS in 1993 and has worked across many NHS sectors including acute care, primary care, Cancer Network and a Strategic Health Authority. Neil joined GMW in 2006 and was the Executive lead for the successful Foundation Trust application. During 2014, Neil became Deputy Chief Executive of GMW.

Ismail Hafeji, Director of Finance, Information Management and Technology Ismail joined the Trust in February 2011. He has been working as an accountant in the NHS at Trusts, former Health Authorities and PCTs around the North West. His last role, before joining the Trust, was as Director of Finance, IT and Information at NHS Bolton. Ismail also has Assistant Director of Finance experience at Strategic Health Authority level and previous to this, worked as Acting Director of Finance for West Lancashire and Chorley and South Ribble PCTs.

Gill Green, Director of Nursing and Operations Gill joined the Trust in August 2011 and previously was at South West Yorkshire Partnership Foundation NHS Trust as Acting Director of Nursing, Compliance and Innovation. Previous to this she was Assistant Director of Health Services at the trust which included operational service development whilst delivering quality improvement programmes.

Page 50 Greater Manchester West Mental Health NHS Foundation Trust Board of Director Meetings

The Board of Directors meet monthly (with the exception of August). The Board comprises of the Chair of the Trust and six other Non-Executive Directors plus the Chief Executive and six Executive Directors. Part one of the meetings are held in public and part two is held in private. A quorum of seven is required for the meeting to take place. All Non-Executive Directors are considered to be independent and the Chair has no significant commitments.

Annual Report 2014/15 Page 51 and friendly • we are caring and kind • we value and respectNominations • we work together • we goCommittee • we are welcoming and friendly • we are caring and kind • we value and The Nominations Committee identifies suitable candidates for vacant Chair and Non- we go the extra mile • we areExecutive welcoming Director andposts friendlyand present • recommendations we to the Council of Governors for appointment at a general meeting. The Committee seeks the views of the Board of are caring and kind • we value and respect • we work togetherDirectors • we as togo their the recommended extra mile criteria and process for selection of candidates and, we are welcoming and friendly • we are caring and kind • wehaving value regard and to respect those views, • shallwe thenwork seek, short-list and interview such candidates as the Committee considers appropriate. They’ll evaluate the balance of skills, knowledge • we are welcoming and friendlyand experience • we areon the caring Board and,and in kind light of this evaluation, agree a description of the we go the extrarole and mile capabilities • we requiredare welcoming for any particular appointment of Non-Executive Directors including the Chair. The Committee then makes recommendations to the Council of and friendly • we are caring and kind • we value and respectGovernors • we work as to potentialtogether appointments • we go as Non-Executive Directors and shall advise the • we are welcoming and friendly • we are caringBoard ofand Directors kind of •those we recommendations. value and we go the extra mile • we areIn welcoming 2014/15, the Nominations and friendly Committee, • we with advice from the Board of Directors, reviewed the balance, competencies and appropriateness and appointed four Non- are caring and kind • we value and respect • we work togetherExecutive • we Directors go the with extra experience mile of financial and commercial sectors and partnership we are welcoming and friendly • we are caring and kind • weworking value at and board-level respect in large • we charity work and third-sector organisations. • we are welcoming and friendlyTable 9 • - Nominationwe are caring Committee and kind attendance we go the extraAlan Madenmile • we are welcoming 3/3 and friendly • we are caring and kind • we value and respect Alan• we Mitchell work together • we go 2/3 • we are welcoming and friendly • we are caringSylvia Seddon and kind • we value and 3/3 Jennifer Carlisle 3/3 Anne Broadhurst 3/3

Audit Committee report

All Foundation Trust Boards must establish an audit committee. The Committee must be composed of at least three members who are all independent non-executive directors. At least one member of the committee must have ‘recent and relevant financial experience.’

The committee’s terms for reference provide more explanation of the committee’s key role which is to review the establishment and maintenance of an effective system of integrated governance, risk management and internal control across the whole of the organisation’s activities (both clinical and non-clinical), that supports the achievement of the organisation’s objectives. This is evidenced by an effective Board Assurance Framework.

Page 52 Greater Manchester West Mental Health NHS Foundation Trust Nominations Committee

The main role and responsibilities are outlined in Monitors’ code of governance and include the following:

• Monitor the integrity of the FT’s financial statements • Review internal financial controls, internal controls and risk management • Monitor and review the effectiveness of the FT’s internal audit function • Monitor and review the effectiveness of external audit • Monitor and review the effectiveness of counter fraud • Develop and implement policy on using external auditors to supply non-audit services • Report to the council of governors any matters where action or improvement is needed and making recommendations as to the steps to be taken • Review the effectiveness of the arrangements for whistle blowing • Make recommendations to the council of governors on the appointment, re- appointment and removal of external audit • Review the work of other committees including quality governance and risk management

The existence of an independent audit committee is a central means by which the board ensures that effective• internal we value control and arrangements respect are • inwe place. work In addition together the audit • we go the extra mile committee provides anand independent friendly check • we on arethe executive caring armand of kindthe board. • we value and respect • we work together • Table 10 - Committee members and •attendance we are welcoming and friendly • we are caring and kind • we value and Malcom Cowen - Chairmanrespect • we work together • we go the5/5 extra mile • we are welcoming and friendly • we Terry McDonnell 5/5 Anthony Bell – appointedare July caring 2014 and kind • we value and respect2/3 • we work together • Jon Bashford – resigned June 2014 2/2 we are welcoming and friendly • we are caring and kind • we value and respect • we work Brian Slater – resigned June 2014 2/2 Sunita Thomson – appointed July 2014we / resigned go Septemberthe extra 2014 mile • we are1/1 welcoming and friendly • we are caring and kind The external auditors,• internalwe value audit, and counter respect fraud are • wealso workinvited totogether attend the • we go the extra mile meetings. Other attendees include, the Director of Finance and IM&T, Director of Human Resources and Governance,friendly Chief • Executive we are and caring the Head and of Corporatekind • we Affairs. value and respect • we work together • • we are welcoming and friendly • we are caring and kind • we value and respect

Work of the committee in 2014/15 we go the extra mile • we are welcoming and friendly • we are The Committee met caringon five occasions and kind during • wethe 2014/15 value financialand respect year. There • we was work together • we go the extra mile a change in membership as a result of Non-executive Directors resignations and appointments. The meetingswelcoming focused and on financial friendly reporting, • we internalare caring control and processes, kind • we value and respect • we work together • and the work of Internalwe and go External the extra audit, policy mile and • procedurewe are welcomingupdates. and friendly • we are caring and kind • we value The minutes of the auditand committee respect meeting • we work are included together on the agenda• we goof the the Trust extra mile • we are welcoming and friendly • Board. we are caring and kind • we value and respect • we work together •

Annual Report 2014/15 Page 53 1. Financial reporting The Audit Committee meeting held on the 24th April 2015, included a review of the Trust’s performance as outlined in the 2014/15 annual financial statements and a commentary on the reasons for the main changes compared to the financial statements for 2013/14.

Management brought to the attention of the audit committee the significant movements with regards to the accounts for the year ended 31 March 2015.

The committee reviewed the Trust’ financial statements for the financial year 2014/15, in detail with a particular focus on:

• Compliance with financial reporting standards • Areas requiring significant judgements in applying accounting policies • The accounting policies • Whether the accounts and annual report are a fair reflection of the Trust’s performance

The Committee considered the financial statements audit risks including the areas where the Trust has applied judgement in the treatment of revenues and costs to ensure that annual accounts represented a true position of the Trust’s finances.

The External Audit Plan 2014/15 highlighted two main risk issues relating to the valuation of land and buildings and recognition of deferred income and creditors.

The Audit Committee discussed the approach taken by the Trust in the valuation of land and buildings. The Trust undertakes a full revaluation of its assets every three years and the next revaluation is due at the end of the 2015/16 financial year. For 2014/15, the Trust revalued the main buildings and capital works that were completed to ensure any impairment is correctly accounted for in the financial year.

The Audit Committee also discussed the risk referring to the recognition of deferred income and creditors. The Trust outlined the process of classification and confirmed that the criteria used was related to the timings of the projects spending plans. As a result some items were classed as Creditors; due within one year, and other items included as liabilities extending to a longer time period.

2. Internal control In accordance with the Committee’s role, and in addition to the Director of Finance, other officers of the Trust were called to attend the Committee to provide updates regarding progress on implementation of recommendations following audit and other assurance reviews.

3. Internal Audit and Counter Fraud The Internal Audit service is provided by Mersey Internal Audit Agency (MIAA), an independent NHS organisation.

The key conclusion from their work for 2014/15 as provided in the Director of Audit Opinion and Annual Report was that ‘Significant Assurance’ was given that there were generally sound systems of internal control to meet the organisation’s objectives and that controls are generally being applied consistently.

Page 54 Greater Manchester West Mental Health NHS Foundation Trust Counter Fraud As with the Internal Audit Service, Counter Fraud is provided by the Counter Fraud Service and is hosted through Mersey Internal Audit Agency. As requested by the Committee to meet mandated requirements an Annual Report was provided outlining the delivery of the fraud plan.

4. External Audit The provision of External Audit services is delivered by the KPMG. Their work is mainly related to audit the financial statements and provide and audit opinion.

The appointment of a Foundation Trusts External Auditors remains one of the important statutory duties of the Council of Governors, supported by the Audit Committee. KPMG were appointed as external auditors in December 2010, following a tender process. They were appointed for a period of three years. The guidance issued in August 2013 stated that the Audit Committee should run the process with the final decision on appointment/ re-appointment resting with the council of governors. In accordance with the guidance the Audit Committee agreed the process in 2013, for the appointment / re-appointment of external audit. The Committee reviewed the work of External Audit over the three year period since their appointment and focused on the effectiveness and value for money of the audit services over the last three years and their overall performance. The Council of Governors, at its March 2014 meeting, agreed a recommendation to extend the term with KPMG for a further two years and that the service be tendered in December 2016.

The Audit Committee met with External Audit on regular occasions throughout the year to discuss their findings and the detail content of their reports. The external audit and Audit Committee members also met in private to discuss matters of a confidential nature.

The Committee approved the External Audit Plan and have received regular updates from KPMG on technical issues briefings of developments in the NHS.

During the course of the year the Audit Committee discussed the performance of External Audit and reviewed its effectiveness and output for the services provided and the annual cost.

The total audit fee for the financial year 2014/15 was £64,825. It was made of two elements. For the ‘Accounts opinion and Resource conclusion,’ there was a cost of £50,575 and for the ‘Quality Accounts Opinion,’ a cost of £14,250. An unqualified opinion on the accounts for 2013/14 was given to the Trust. The work on the 2014/15 accounts commenced in April 2015 and will conclude with a report anticipated in May.

Other matters:

• The committee also provided oversight on a number of financial matters including Losses and Special Payments, Treasury management and waivers of Standing Financial Instructions • During the course of the year the Audit Committee reviewed the work and performance of both Internal and External audit by completing the audit committee handbook self-assessment checklists and feedback from committee members. • The committee also undertook a review of its own effectiveness. • The Committee also reviewed its terms of reference which were presented to the Trust Board and also agreed the audit committee work plan for the year. • During the year the committee met privately with external audit, internal audit and counter fraud.

Annual Report 2014/15 Page 55 • The head of internal audit, external audit and the counter fraud specialist have direct access to the chair of the committee. Malcolm Cowen, Chair of the Audit Committee

Quality Governance Committee The Quality Governance Committee monitored quality and was the accountable committee for all risk management activity, charged with developing, implementing and evaluating a systematic approach for identifying areas of clinical and non-clinical risks in services. It reflects Monitor’s Quality Governance Framework and its focus is on strategy, capabilities, process, structures and measurement.

Table 11 - Quality Governance Committee Attendance

Terry McDonnell (Chair) 5/6 Karen Luker 4/6 Mike Chapman 2/2 Kathy Doran 3/4 Julie Jarman 4/4 Bev Humphrey 3/6 Gill Green 6/6 Steve Colgan 6/6 Andrew Maloney 6/6 Neil Thwaite 5/6

Charitable Funds The aim of the Charitable Funds Committee is to ensure that the Board of Directors properly discharges its responsibilities in relation to its role as Corporate Trustee of the Charitable Funds. It does so in accordance with the NHS Acts, Charities Acts and good practice to ensure that decisions on the use or investment of funds are restricted to the explicit conditions or purpose of each donation, bequest or grant. It also makes decisions involving the use of charitable funds for investments with reference to appropriate legislation.

Table 12 - Charitable Funds Attendance

Malcolm Cowen (Chair) 2/2 Jon Bashford 1/1 Anthony Bell 1/1 Ismail Hafeji 2/2 Gill Green 1/2

Remuneration and Terms of Service Committee The Remuneration and Terms of Office Committee makes recommendations to the Board on the remuneration, allowances and terms of service of other officer members to ensure they are fairly rewarded for their individual contribution to the organisation – having proper regard to the organisation’s circumstances and performance and to the provisions of any national arrangements where appropriate. It is also responsible for monitoring and evaluating the performance of individual officer members and advises

Page 56 Greater Manchester West Mental Health NHS Foundation Trust on and oversees appropriate contractual arrangements for such staff including the proper calculation and scrutiny of termination payments taking account of such national guidance as is appropriate.

Table 13 - Remuneration and Terms of Service Committee attendance

Jon Bashford 1/1 Brian Slater 1/1 Mike Chapman 1/1 Terry McDonnell 1/1 Malcolm Cowen 1/1

Remuneration and Terms of Office Committee The Remuneration and Terms of Office Committee shall consider the remuneration and allowances, and the other terms and conditions of office, of the Chair and the other Non- Executive Directors taking into account benchmarking against other similar Foundation Trusts and taking specialist advice. It will recommend to the Council of Governors the remuneration and allowances, and the other terms and conditions of office, of the Chair and the other Non-Executive Directors and shall advise the Board of Directors of those recommendations. The committee did not meeting during 2014/15.

Annual Report 2014/15 Page 57 • we are welcomingFoundation and friendly • we are Trust caring Governors and kind • we value and respect • we work together • weand go the Membership extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we are welcoming and friendlyBeing • wean NHS are Foundation caring Trustand giveskind us •certain we financial freedoms, but it also allows us to we go the extraproactively mile involve• we serviceare welcoming users, carers and and the public in decisions about services, which is a vital part of planning and improving the patient experience. Therefore we actively seek friendly • we are caring and kind • we value and respectto recruit • we an work engaged together and active membership • we go community with whom we work on our • we are welcoming and friendly • we aredevelopments caring and and kind ensure • we we can value act on theand feedback they give us. we go the extra mile • weTo are be a welcomingmember, people and must friendly either: • we are caring and kind • we value and respect • we work together• Live in •the we North go West the and extra be 14 years mile or older; we are welcoming and friendly • we are caring and kind •• we Be a valueservice userand or respect carer within • thewe last work five years; or • we are welcoming and• friendly Be a member • we of staff are on caring a permanent and kindemployment contract of more than 12 months • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go • we are welcoming and friendly • we areOverview caring and kind of membership• we value and we go the extra mile • weWe are have welcoming over 8,000 members and friendly and to ensure • we our membership is representative of the are caring and kind • we value and respect • we work togetherdiverse area • we it covers, go wethe organise extra our mile members into the following constituencies:

• Staff • Service users and carers • Public

We also have appointed Governors who are not elected by members but are appointed from a number of key organisations to ensure our membership has strong links with our partner organisations.

The Trust has undertaken in-depth community profiling of the locations it serves and this data will inform a membership strategy. The Trust Board is informed on a quarterly basis of the numbers and make-up of the membership profile.

Page 58 Greater Manchester West Mental Health NHS Foundation Trust Foundation Trust Governors and Membership

Table 14 - Membership size and movements

Public constituency Last year (2014/15) Next year (estimated) (2015/16) At year start (April 1) 3,566 3,545 New members 34 50 Members leaving 55 30 At year end (March 31) 3,545 3,565 Staff constituency Last year (2014/15) Next year (estimated) (2015/16) At year start (April 1) 1,013 2,934 New members 2,934 50 Members leaving 1,013 100 At year end (March 31) 2,934 2,884 Patient constituency Last year (2014/15) Next year (estimated) (2015/16) At year start (April 1) 1,605 1,592 New members 14 20 Members leaving 27 30 At year end (March 31) 1,592 1,582 Analysis of current membership Public constituency Number of members Eligible membership Age (years): 0-16 0 1,422,553 17-21 96 459,101 22+ • we value and respect3315 • we work together5,233,222 • we go the extra mile Unknown 133 Total and friendly • we3,544 are caring and kind • 7,114,876we value and respect • we work together • Ethnicity: • we are welcoming and friendly • we are caring and kind • we value and White 2,904 6,361,716 Mixed respect • we work40 together • we go the110,891 extra mile • we are welcoming and friendly • we Asian or Asian British are caring and kind213 • we value and respect437,485 • we work together • Black or Black British 122 97,869 Other we are welcoming16 and friendly • we are caring44,216 and kind • we value and respect • we work Unknown we go250 the extra mile • we are62,699 welcoming and friendly • we are caring and kind Socio-economic groupings*: AB • we value and respect866 • we work together429,265 • we go the extra mile C1 friendly • we are 992caring and kind • we value672,341 and respect • we work together • C2 735 460,181 DE • we are884 welcoming and friendly660,274 • we are caring and kind • we value and respect Unknown 67 we go the extra4,892,815 mile • we are welcoming and friendly • we are Gender analysis Male caring and kind •1,222 we value and respect •3,504,687 we work together • Female 2,266 3,610,187 welcoming and friendly • we are caring and kind • we value and respect • we work together • Unknown 57 2

* Socio-economic data should be completedwe go using the profiling extra techniques mile (e.g. postcode) • we or otherare recognised welcoming methods. and friendly • we are caring and kind • we value

If any members would likeand to contact respect their • governor we work or a togetherdirector of the • Trustwe pleasego the extra mile • we are welcoming and friendly • contact: Steph Neville, Headwe of are Corporate caring Affairs, and Greater kind Manchester• we value West and Mental respect • we work together • Health Trust NHS Foundation Trust, Bury New Road, Prestwich, Manchester M25 3BL

Tel: 0161 772 3622, Email: [email protected] Or visit our website: http://www.gmw.nhs.uk/contact-us

Annual Report 2014/15 Page 59 we go the extra mile • we are welcomingQuality and Report friendly • we are caring and kind • we value and respect • we work together • we go the extra mile are welcoming and friendly • we are caring and kind • Statementwe value and onrespect Quality • we work from the Chief Executive • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go theThe extra Quality mile Account • 2015/16we are summarises welcoming some of the key improvements delivered by the Trust in 2014/15 and the challenges we have set ourselves for 2015/16. With the support and friendly • we are caring and kind • we value and respectof all our • wededicated work staff, together I am confident • we that go we can meet these future challenges.

• we are welcoming and friendly • we areThe caring account alsoand confirms kind •that we we value have continued and to achieve all targets set nationally we go the extra mile • wefor are mental welcoming health trusts and in 2014/15, friendly delivered • we our CQUIN (Commissioning for Quality and Innovation) schemes and retained our ‘registration without conditions’ with the Care are caring and kind • we value and respect • we work togetherQuality Commission. • we go the extra mile we are welcoming and friendly • we are caring and kind • we value and respect • we work As Chief Executive of Greater Manchester West Mental Health NHS Foundation Trust, I • we are welcoming andcan friendly confirm that,• we to arethe bestcaring of my andknowledge, kind the information contained is the report • we value and respect • we work together • we go theis accurate. Theextra mile ‘Statement • we are of Directors welcoming Responsibilities’ summarises the steps we have taken to develop the Quality Account and external assurance is provided in the forms of and friendly • we are caring and kind • we value and respectstatements • we from work our commissioners, together • local we Healthwatch go organisation and Joint Scrutiny • we are welcoming and friendly • we areCommittee. The caring and report kind of •an we external value audit and undertaken by KPMG, which gives assurance on the content of the Quality Account is also included. we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile Signed:

B ev H umpH rey, CH ief e xeC utive D ateD : 29t H m ay 2015 We have reviewed the quality of care offered by the Trust based on performance in 2014/15 against the indicators of patient safety, clinical effectiveness and patient experience. This can be found in Appendix 1.

Statement of Directors’ Responsibilities in Respect of the Quality Account

The directors are required under the Health Act 2009 and the National Health Service (Quality Accounts) Regulations to prepare Quality Accounts for each financial year.

Monitor has issued guidance to NHS foundation trust boards on the form and content of annual quality reports (which incorporate the above legal requirements) and on the

Page 60 Greater Manchester West Mental Health NHS Foundation Trust Quality Report arrangements that foundation trust boards should put in place to support the data quality for the preparation of the quality report.

In preparing the quality report, directors are required to satisfy themselves that:

• The content of the quality report meets the requirements set out in the NHS Foundation Trust Annual Reporting Manual 2014/15; • The content of the Quality Report is not inconsistent with internal and external sources of information including: o Board minutes and papers for the period April 2014 to June 2015 o Papers relating to Quality reported to the Board over the period April 2014 to June 2015 o Feedback from the commissioners dated 22nd May 2015 o Feedback from governors dated 22nd May 2015 o Feedback from Local Healthwatch organisations dated 22nd May 2015 (Healthwatch Trafford) o The Trust’s complaints report published under regulation 18 of the Local Authority Social Services and NHS Complaints Regulations 2009, dated 30th April 2015 (draft) o The 2014 national patient survey dated 18th September 2014 (date of publication on CQC website) o The 2014 national staff survey from 24th February 2015 o The Head of Internal Audit’s annual opinion over the Trust’s control environment dated 30th April 2014. o CQC Intelligent Monitoring• we Report value dated and October respect 2015. • we work together • we go the extra mile • The Quality Report represents a balanced picture of the NHS foundation trust’s performance over the periodand covered;friendly • we are caring and kind • we value and respect • we work together • • The performance information reported in the Quality• we Reportare welcoming is reliable and accurateand friendly • we are caring and kind • we value and • There are proper internal controls over the collection and reporting of measures of performance included inrespect the Quality • weReport, work and thesetogether controls • are we subject go tothe review extra to mile • we are welcoming and friendly • we confirm that they are working effectively in practice; are caring and kind • we value and respect • we work together • • The data underpinning the measures of performance in the Quality Report is robust and reliable, conformswe are to specified welcoming data quality and standards friendly and • prescribed we are caring and kind • we value and respect • we work definitions, is subject to appropriate scrutiny and review; and the Quality Report has been prepared in accordance with Monitor’swe go annualthe extra reporting mile guidance • we (which are welcoming and friendly • we are caring and kind incorporates the Quality Accounts regulations) (published at www.monitor-nhsft. gov.uk/annualreportingmanual)• we value as well and as the respect standards • to we support work data together quality • we go the extra mile for the preparation of the Quality Report (available at www.monitor-nhsft.gov.uk/ annualreportingmanual)friendly • we are caring and kind • we value and respect • we work together •

The directors confirm to the best of their knowledge• we are and welcoming belief that they and have friendly complied • we are caring and kind • we value and respect with the above requirements in preparing the Quality Report.we go the extra mile • we are welcoming and friendly • we are By order of the Board caring and kind • we value and respect • we work together • welcoming and friendly • we are caring and kind • we value and respect • we work together • Signed: we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • a lan m a D en, CH air D ate: 29t H m ay 2015 we are caring and kind • we value and respect • we work together •

Signed:

B ev H umpH rey, CH ief e xeC utive D ate: 29t H m ay 2015

Annual Report 2014/15 Page 61 The NHS Staff Survey 2014 we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work togetherOnce again, • we the 2014go theNHS Staff extra Survey mile has provided us with a valuable insight into how • we are welcoming and friendly • we are caring and kind • weour valuestaff feel and about respect the work •they we do work and how involved and appreciated they perceive to be. In these challenging times, feedback such as this is more crucial than ever. • we are welcoming and friendly • we are caring and kind We were extremely pleased to see that GMW scored higher than average in the area of we go the extrastaff feeling mile satisfied • we with are the welcoming quality of work and patient care they are able to give. We and friendly • we are caring and kind • we value and respectunderstand • we work how important together it is •for we staff go to feel able to do their best for their patients as we know this is one of the main reasons staff choose a career with us – to help people and • we are welcoming and friendly • we are caringmake a differenceand kind to their• we lives. value It is heartening and to see we are achieving this. we go the extra mile • we are welcoming and friendly • we Staff reporting errors, near misses or incidents is at 93% which is higher than average and are caring and kind • we value and respect • we work togethershows • that we our go reporting the extramechanisms mile are working well and that staff feel comfortable we are welcoming and friendly • we are caring and kind • weand value confident and in speakingrespect up• wewhen worksomething goes wrong. • we are welcoming and friendlyWe also scored • we better are caringthan average and in kind the areas of good communication between senior we go the extramanagement mile and• we staff, are as well welcoming as staff believing the Trust provides equal opportunities for career progression or promotion. We are pleased to see that staff feel like they and friendly • we are caring and kind • we value and respectcan • talkwe to work senior managementtogether •and we that go we will support their career aspirations and • we are welcoming and friendly • we are caringdevelopment. and kind • we value and we go the extra mile • we areWe welcoming also saw that staff and agree friendly that feedback • we from patients / service users is used to make informed decisions in their directorate / department. This is incredibly reassuring as we are caring and kind • we value and respect • we work togethersee patients, • we servicego the users extra and their mile carers as some of the best experts we have within the Trust and we use their input as a clear indication as to where our values should lie and how we should deliver their care.

Other areas where we scored higher than average are the areas of work pressure felt by staff, support from immediate managers and staff job satisfaction. This is pleasing as it indicates that overall, staff are happy in their work and feel supported to do their role to the best of their ability.

As always, there are areas which need improvement and over the next 12 months, we will address areas where we have not performed as well. These include the number of staff receiving their appraisal in the last 12 months as well as numbers of staff receiving health and safety training, equality and diversity training or job-relevant training, learning or development in the last 12 months. We recognise that it can be extremely challenging to release staff to go on training, especially ward-based staff, when times are busy. However, we have made this a priority area for improvement and as such we have written to each manager across the Trust, encouraging them to use their leadership skills to ensure that these priorities are met. A small amount of time invested for training and development in the short term, will reap longer term benefits and a meaningful annual

Page 62 Greater Manchester West Mental Health NHS Foundation Trust The NHS Staff Survey 2014

appraisal is the cornerstone of delivering the best service possible for our patients and service users. Realistic timelines have been put in place to ensure that every member of staff receives their annual appraisal.

We also scored higher than average in staff witnessing potentially harmful errors, near misses or incidents within the last month. Whilst this is one of our lowest ranking scores, it is reassuring to note that in the wake of the Francis Report, staff feel able to see such an incident and report it, leading to lessons being learned and an open, honest and accountable environment. We feel proud that our staff feel able and safe to speak up when they see something that causes them concern.

Overall we are pleased with staff survey results but we will continue to embed our Values across the Trust to ensure we continue to support and develop our Trusts’ greatest asset – the people who work for GMW.

Table 15 - Staff Survey Table – top and bottom ranking scores

Trust Improvement / 2013/14 2014/15 Deterioration National National Response rate Trust Trust Average Average 53% 50% 46% 42% Decrease 7% Trust Improvement / 2013/14 2014/15 Deterioration National National Response rate Trust Trust • we valueAverage and respect • weAverage work together • we go the extra mile Top 5 Ranking Scores and friendly • we are caring and kind • we value and respect • we work together • Percentage of staff reporting errors, near misses or incidents 94% 92%• we 93% are welcoming 92% Decreaseand friendly 1 % • we are caring and kind • we value and witnessed in the last month respect • we work together • we go the extra mile • we are welcoming and friendly • we Percentage of staff agreeing that feedback are caring and kind • we value and respect • we work together • N/A N/A from patients/service (additional (additional N/A (additional theme users is used to make 59% 53% wetheme are for welcomingtheme for and friendly • we arefor 2014)caring and kind • we value and respect • we work informed decisions 2014) 2014) in their directorate/ we go the extra mile • we are welcoming and friendly • we are caring and kind department Work pressure felt by • we3.01 value and 3.07 respect 3.01 • we work 3.07 togetherNo change • we go the extra mile staff Percentage of staff friendly • we are caring and kind • we value and respect • we work together • reporting good communication 31% 31%• we are 33% welcoming 30% and friendlyIncrease 2% • we are caring and kind • we value and respect between senior management and staff we go the extra mile • we are welcoming and friendly • we are Support from 3.83 3.82 3.84 3.81 Increase 0.01 immediate managers caring and kind • we value and respect • we work together • we go the extra mile Trust Improvement / 2013/14 2014/15 welcoming and friendly • we are caringDeterioration and kind • we value and respect • we work together • National National Response rate Trust Trust we go theAverage extra mile • weAverage are welcoming and friendly • we are caring and kind • we value Bottom 5 Ranking Scoresand respect • we work together • we go the extra mile • we are welcoming and friendly • Percentage of staff witnessing potentially harmful errors, near we31% are caring 26% and kind 33% • we 26%value andIncrease respect 2% • we work together • misses or incidents in the last month

Annual Report 2014/15 Page 63 Percentage of staff receiving health and 69% 75% 64% 73% Decrease 5% safety training in the last 12 months Percentage of staff appraised in last 12 86% 87% 72% 88% Decrease 14% months Percentage of staff having well-structured 43% 42% 35% 41% Decrease 8% appraisals in last 12 months Percentage of staff receiving job-relevant training, learning or 82% 82% 79% 82% Decrease 3% development in last 12 months

Page 64 Greater Manchester West Mental Health NHS Foundation Trust Annual Report 2014/15 Page 65 welcoming and friendly • we are caring and kind • we valueRegulatory and respect • we work togetherRatings Report • we are welcoming and friendly • we are caring and kind • we we go the extraMonitor’s mile • we are Risk welcoming Assessment and Framework friendly • we are caring and kind • we value and respect • we work together • we go • we are welcoming and friendly • we areRisk caring Assessment and Frameworkkind • we (RAF) value requires and the Trust to report against the “Continuity of Service Risk Ratings (CoSRR)”, and Governance Risk Rating. we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work togetherThe CoSRR • we ratings go range the from extra 1 through mile to 4, with an overall rating of 4 being an indication of a low level of risk. we are welcoming and friendly • we are caring and kind • we value and respect • we work • we are welcoming and friendlyThe Governance • we Risk are ratings caring are Green, and kindAmber or Red, with a Green Governance Risk Rating being an indication that there is ongoing compliance with all the targets and we go the extraindicators mile as set out• we in the are Risk welcoming Assessment Framework. and friendly • we are caring and kind • we value and respectPrior • to we the 1stwork October together 2013, all Foundation• we go Trusts was required to report against • we are welcoming and friendly • we arethe caring Compliance and Framework.kind • we The value Compliance and Framework included the Risk ratings Monitor used as the primary basis for assessing risk of Trusts breaching their Terms of we go the extra mile • we areAuthorisation. welcoming The Financial and friendly Risk rating • had we a range from 1 to 5 with a rating of 4 or 5 are caring and kind • we value and respect • we work togetherbeing an • indicationwe go ofthe low levelextra risk. mile we are welcoming and friendly • we are caring and kind • Thewe Compliance value and Framework respect Risk • ratingswe work are included as a comparison for previous year’s • we are welcoming and friendlyperformance. • we are caring and kind we go the extraThe Trusts mile risk ratings • we under are the welcoming Risk assessment Framework and the Compliance framework are analysed in Table 1, which shows that the Trust has complied with all of Monitor’s compliance indicators

Table 16 - Under the Risk Assessment Framework – 2014/15

Annual Plan 2014-15 Q1 2014/15 Q2 2014/15 Q3 2014/15 Q4 2014/15 2014/15 Continuity of Service Risk 4 4 4 4 4 rating Governance Green Green Green Green Green Risk rating

Page 66 Greater Manchester West Mental Health NHS Foundation Trust Regulatory Ratings Report

Table 17 - Under the Compliance Framework – Quarters 1 and 2 2013/14

Annual Plan 2013-14 Q1 2013/14 Q2 2013/14 Q3 2013/14 Q4 2013/14 2013/14 Financial Risk 5 5 5 Rating Governance Green Green Green Risk rating

Table 18 - Under the Risk Assessment Framework – Quarter 3 and 4 2013/14

Annual Plan 2013-14 Q1 2013/14 Q2 2013/14 Q3 2013/14 Q4 2013/14 2013/14 Continuity of Service Risk 4 4 rating Governance Green Green Risk rating

• we value and respect • we work together • we go the extra mile and friendly • we are caring and kind • we value and respect • we work together • • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we are welcoming and friendly • we are caring and kind • we value and respect • we work we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile friendly • we are caring and kind • we value and respect • we work together • • we are welcoming and friendly • we are caring and kind • we value and respect we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together •

Annual Report 2014/15 Page 67 Annual Report 2014/15 • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work • we are welcoming andFinancial friendly • we Review are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming he following section provides an overview on the financial and friendly • we are caring and kind • we value and respect • we work together • we go performance of the Trust over the 2014/15 financial year, • we are welcoming and friendly • we are caring and kind • we value and highlighting points of interest within the Annual Accounts we go the extra mile • weT are welcoming and friendly • we and the Trust’s performance against its key financial targets. are caring and kind • we value and respect • we work together • we go the extra mile we are welcoming and friendly • we are caring and kind • we value and respect • we work • we are welcoming and friendly • we are caring and kind we go the extra1. Introduction mile • we are welcoming and friendly • we are caring and kind • we value and respect •The we Annual work Accounts together have been • we prepared go the in accordance with International Financial Reporting Standards (IFRS), and are in line with guidance issued by Monitor, The • we are welcoming and friendly • we are caringIndependent and kind Regulator • we value of NHS and Foundation respect Trusts. The quality report is included on pages we go the extra mile • we are welcoming46 to 47. The financial and friendlystatements start• we on arepage 85. caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • 2. Summary of Financial Performance 2014/15 • The overall income and expenditure position shows a net surplus of £8.04m after non- operating income and expenses, with an underlying operating net surplus of £8.9m • The overall Financial Risk Rating as at 31st March 2015 is 4, (see note 3 below for more detail). • The total Comprehensive Surplus, after movements direct to reserves shows a surplus of £8.03m.

3. Financial Performance – Monitor’s Regulatory Ratings (CoSRR) The Trust is required to report against the Monitor “Continuity of Service Risk Ratings” (CoSRR), and the Governance Risk Rating. The CoSRR ratings range from 1 through to 4, with an overall rating of 4 being an indication of a low level of risk. The Governance Risk ratings are Green, Amber or Red, with a Green Governance Risk Rating being an indication that there is ongoing compliance with all the targets and indicators as set out in the Risk Assessment Framework (see pages 66 to 67 for the Regulatory Rating Report).

Page 68 Greater Manchester West Mental Health NHS Foundation Trust Annual Report 2014/15

The Trusts risk ratings under the Risk Assessment Framework are analysed in Table 1, which shows that the Trust has complied with all of Monitor’s indicators.

Under the Risk Assessment Framework 2014/15

Annual Plan 2014/15 Actual Rating 2014/15 Continuity of Service Risk Rating 4 4 Governance Risk rating Green Green

4. Income and Expenditure Position The following table summarises the actual performance as at the 31st March 2015 compared to the Annual Plan.

For the year to 31st March 2015 Plan Actual Variance £000’s £000’s £000’s Clinical Income 148,067 153,131 5,064 Other Income 11,268 13,406 2,138 Total Income • we value and respect159,335 • we work 166,537 together 7,202 • we go the extra mile Operating Expenditure (148,645) (152,340) (3,695) EBITDA and friendly • we are10,690 caring and 14,197 kind • we 3,507 value and respect • we work together • Depreciation • we(2,811) are welcoming (3,226) and friendly (415) • we are caring and kind • we value and Interest Receivable 123 192 69 Interest Expense respect • we work together(209) • we (180) go the extra29 mile • we are welcoming and friendly • we Public Dividend Capital (2,289) (2,059) 230 Profit/(Loss) on disposal of areassets caring and kind • we0 value and0 respect • 0we work together • Surplus/(Deficit) before Other Non- we are welcoming and5,504 friendly 8,924• we are caring 3,420 and kind • we value and respect • we work Operating Expenses Other Non-Operating Income we go the extra0 mile 0• we are welcoming0 and friendly • we are caring and kind Impairment Losses (Reversals) net (on non PFI (2,420) (885) 1,535 assets) • we value and respect • we work together • we go the extra mile Net Surplus/(Deficit) friendly • we are caring3,084 and kind 8,039 • we value 4,955 and respect • we work together • Elements of Comprehensive Income (6) (6) Comprehensive Income • we are 3,084welcoming 8,033 and friendly 4,949 • we are caring and kind • we value and respect we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • 5. Trust Income The Trust received a totalwelcoming of £166.5 million and income friendly for 2014/15. • we The are majority caring of this and kind • we value and respect • we work together • income related to patientwe care go(£153.1 the million). extra Patient mile care • incomewe are by welcomingcommissioner and and friendly • we are caring and kind • we value service is illustrated below. and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together •

Annual Report 2014/15 Page 69 NHS NHS NHS NHS Other Local Salford Bolton Trafford Other Total England CCG’s Authorities CCG CCG CCG Income 48,888 33,378 22,098 16,625 6,631 22,263 2,282 152,165 (£’000s)

The Trust received £14.3 million other income (non-patient care services), with the largest single source (£4.2 million) coming from NHS North West to support education and training. The Trust received income of £2.9 million to support research and development. The Trust released deferred income of £6.5m to support the Trust’s capital programme.

6. Trust Expenditure

Page 70 Greater Manchester West Mental Health NHS Foundation Trust Operating Expenses Expenditure (£’000s) Staff Costs 115,712 Premises & Transport 10,921 Supplies and Services - Clinical and General 5,969 Purchase of Healthcare from Non-NHS Bodies 5,212 Other 6,137 Drug Costs 2,453 Establishment 2,125 Research and Development Costs 2,855 Training, Courses and Conferences 957 Total Operating Expenditure 152,341 Depreciation 3,226 Impairments of Property, Plant and Equipment 885 Grand Total 156,452

The largest item of expenditure within the Trust relates to staff costs, (£115.7 million or 73.9% of operating expenses).

The District Valuers valued the new buildings completed during the year, such as Eskdale Ward and the second substation on the Prestwich site. This resulted in an impairment of £885k

7. Capital Investment The Trust continued to invest in the development and improvement of its estate. The following table shows the schemes that have been undertaken during the year, totalling £13.0 million. This is a significant investment in the enhancement of patient and non- patient facilities.

Capital Expenditure Expenditure to 31st March 2015 (£’000’s) Additional medium secure beds Edenfield 2,898 New build Recovery Academy 2,548 Additional beds at Woodlands site 1,936 Low Secure Ward replacement 1,838 Provision of Second Substations at 1,315 Edenfield and Prestwich Meadowbrook Schemes 610 Backlog Maintenance Schemes 423 Relocation of Corporate Services 301 Edenfield Schemes 298 PARIS system 296 Other Schemes 145 Statutory Schemes 106 Minor Schemes 103 Ligature Audit Schemes 75 Energy Improvement Scheme 65 Vehicle replacements 64 Total 13,021

Annual Report 2014/15 Page 71 The major capital schemes include: i) The scheme to build additional medium secure beds on the Edenfield site is progressing well and is due for completion in 2015. ii) The scheme to build the Recovery Academy, a purpose-built Education and Training Facility on the Prestwich site is on schedule to be completed and commissioned by Autumn 2015. The new facility will accommodate existing education and training functions, including library services, and enable the relocation of our Trust Headquarters. iii) On the Woodland site, schemes to accommodate additional beds and improve facilities on Moss and Delamere wards, and the conversion of the former Day Hospital are progressing well. These are due to be completed and commissioned by September 2015. iv) Work commenced on the replacement of Low Secure wards on the Edenfield site. The scheme is progressing and is on target to be completed during 2016. In addition upgrades to the IT server room, the relocation of the finance department to Harrop House, and improvements at Meadowbrook were completed during the year.

As in previous years the Trust has continued to invest in backlog maintenance, statutory works, reducing ligatures and energy performance improvements.

8. Liquidity and Short Term Investments The Trust has a cash balance of £49.8 million as at the 31st March 2015, with interest receivable of £0.2 million being re-invested in the delivery of services.

9. Better Payment Practice Code – Measure of Compliance

Page 72 Greater Manchester West Mental Health NHS Foundation Trust

The Better Payment Practice Code (BPPC) requires the Trust to pay all NHS, and non-NHS trade creditors within 30 calendar days of receipt of goods or a valid invoice (whichever is later) unless other payment terms have been agreed. Where this involves a non-public sector organisation, the Trust ensures to make payments as quickly as possible.

10. Cost Allocation The Foundation Trust has complied with cost allocation and charging requirements set out in the HM Treasury Guidelines.

11. Accounting Policies The Trust has produced the Annual Accounts for 2014/15 following the NHS Foundation Trust Annual Reporting Manual 2014/15, and in-line with the requirements of International Financial Reporting Standards (IFRS). The accounting policies are approved by the Board for use in preparing the accounts and are reviewed annually to reflect any changing circumstances involving accounting regulation or guidance.

Accounting policies for pensions and other retirement benefits are set out in note 1.3.2 of the accounts. Details of senior employees’ remuneration can be found on page 34 of the Annual Report.

12. Going Concern Following review by the Trust’s Board, the directors have a reasonable expectation that the Trust has adequate resources to continue to adopt the going concern basis in preparing the accounts.

Annual Report 2014/15 Page 73 13. Looking Forward Whilst 2014/15 has been successful year for the Trust, the coming years will continue to represent an increasing challenge to both the Trust and to the Public Sector.

The NHS faces an unprecedented financial dilemma; the supply of funding is struggling to match the growing demand for healthcare. The need to deliver 4 per cent efficiency savings until 2016 is of immediate concern. Savings of a similar amount are likely to be needed after 2017.

Greater Manchester West, along with all NHS organisations will need to identify and deliver 4 to 5 per cent efficiency savings on an annual basis. For the Trust this means an estimated £5m per year must be saved on a recurrent basis whilst we maintain the quality of services.

The Trust has an excellent track record for making efficiencies but this must continue in the forthcoming years, to ensure that the Trust remains a financially secure organisation.

The Five Year Forward View highlighted that major system changes are required to protect high-quality sustainable care for patients now and into the future.

The Trust has developed the 2015/16 operational plan in light of the challenging economic backdrop and a clear expectation that the funding provided to the National Health Service will need to be supplemented by making efficiencies to deal with the rising demand from an ageing population and the increased costs of new technology.

NHS Funding in 2015/16

Additional investment of £1.98bn was announced in the autumn 2014 statement, including £150m from NHS England through efficiencies and reprioritisation in its central budgets. This implies a real terms funding increases of 1.6%, in line with the funding ambitions outlined in the Forward view. The additional funding seeks to address a number of priorities.

For mental health investment, there is a specific reference of the following additional resources:

• £40m being made available to support the introduction of specialist early-intervention- in-psychosis services, • £10m for access standards relating to adult IAPT services, • £30m for liaison psychiatry services

In addition to the above, CCG Commissioners have been asked to:

“ ensure that mental health spend will rise in real terms in every CCG and grow at least in line with the CCG’s overall allocation growth;”

Page 74 Greater Manchester West Mental Health NHS Foundation Trust Trust Future Financial Objectives

Our overall financial objectives for the future will allow the Trust to invest in our services and improve the Trusts buildings and ward environments. In specific terms the Trust plans:

• To deliver an operational surplus of more than 1% of operating income to facilitate potential investment in the improvement of services • To generate earnings before interest, tax, depreciation and amortisation of 5%, (EBITDA) • To maintain a Continuity of Service Risk Rating (CoSRR) of 4

The financial outlook and main risks faced by the Trust over the next two years are summarised below:

• The main assumptions supporting the Trusts financial plan are based on the guidance in the document, “The NHS Forward View.” The national efficiency requirements of 3.5% and the changes in tariff have been factored into the financial plans. This includes the aforementioned efficiency requirement of 3.5% and assumes inflationary uplift of 1.9%. For 2015/16 the efficiency challenge of circa 4% has been included with associated tariff changes. • The Trusts major challenge over the planning period is the second year implementation of the Acute Care Pathway programme, including the enhancement of Community services and the development of the ‘Centre of Excellence,’ at the Woodlands hospital. From a financial planning perspective, the cost of investment in the community and the transition costs of moving services away from hospital locations have been included in the Trust’s plans. o With regard to Drug and Alcohol services, there are a number of risks in 2015/16 as a result of services being subject to tendering processes and migration of the commissioning of these services to Local Authorities. o The CCG commissioning processes will continue to develop in 2015-16 and the Trust needs to work with all partners, including the Local Authorities to ensure the Commissioners requirements are met. Similarly, for Specialist Services the Trust will continue to develop relationships with NHS England to ensure that the organisation continues to provide quality services whilst ensuring the Trust remains financially robust and sustainable for the future.

Annual Report 2014/15 Page 75 • we are welcoming and friendlyStatement • we are caring of and kindthe chief we go the extraexecutive’s mile • we are welcoming responsibilities and friendly • we are caring and kind • we value and respect • we work together • we go • we are welcoming and friendly • we are ascaring the and kind accounting • we value and officer of we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work togetherGreater • we go the Manchester extra mile West we are welcoming and friendly • we are caring and kind • weMental value and respect Health • we work NHS Foundation • we are welcoming and friendly • we are caring and kind we go the extraTrust mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go • we are welcoming and friendly • we are Thecaring NHS Act and 2006 kind states • that we the value chief executive and is the accounting officer of the NHS foundation trust. The relevant responsibilities of the accounting officer, including their we go the extra mile • we areresponsibility welcoming for the andpropriety friendly and regularity • we of public finances for which they are are caring and kind • we value and respect • we work togetheranswerable, • we and go for the keeping extra of mileproper account, are set out in the NHS Foundation Trust Accounting Officer Memorandum issued by Monitor. we are welcoming and friendly • we are caring and kind • we value and respect • we work Under the NHS Act 2006, Monitor has directed Greater Manchester West NHS Foundation • we are welcoming and friendlyTrust to prepare • we for are each caring financial and year a kindstatement of accounts in the form and on the we go the extrabasis set outmile in the • Accountwe are Direction. The welcoming accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of Greater Manchester West NHS Foundation Trust and of its income and expenditure, total recognised gains and losses and cash flows for the financial year.

In preparing the accounts, the Accounting Officer is required to comply with the requirements of the NHS Foundation Trust Annual Reporting Manual and in particular to:

• Observe the Accounts Direction issued by Monitor, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis; • Make judgements and estimates on a reasonable basis; • State whether applicable accounting standards as set out in the NHS Foundation Trust Annual Reporting Manual have been followed, and disclose and explain any material departures in the financial statements; • Ensure that the use of public funds complies with the relevant legislation, delegated authorities and guidance; and • Prepare the financial statement on a going concern basis.

Page 76 Greater Manchester West Mental Health NHS Foundation Trust Accounting Officer’s responsibilities

The accounting officer is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the NHS foundation and to enable her to ensure the accounts comply with requirements outlined in the above mentioned Act.

The Accounting Officer is also responsible for safeguarding the assets of the NHS foundation trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

To the best of my knowledge and belief, I have properly discharged the responsibilities set out in Monitor’s NHS Foundation Trust Accounting Officer Memorandum.

Signed:

B ev H umpH rey, CH ief e xeC utive D ate: 22n D m ay 2015

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Annual Report 2014/15 Page 77 Annual Governance Statement • we are welcoming and friendly • we are caring and kind • we value and respect • we work • we are welcoming and friendly • we are caring and kind we go the extraScope mile of • weResponsibility are welcoming and friendly • we are caring and kind • we value and respectAs •Accounting we work Officer, together I have responsibility • we go for maintaining a sound system of internal • we are welcoming and friendly • we are caringcontrol that and supports kind the• we achievement value and of the NHS foundation trust’s policies, aims and objectives, whilst safeguarding the public funds and departmental assets for which I we go the extra mile • we aream welcoming personally responsible, and friendly in accordance • we with the responsibilities assigned to me. I am are caring and kind • we value and respect • we work togetheralso responsible • we go for the ensuring extra that themile NHS foundation trust is administered prudently and economically and that resources are applied efficiently and effectively. I also we are welcoming and friendly • we are caring and kind • weacknowledge value and my responsibilitiesrespect • we as set work out in the NHS Foundation Trust Accounting • we are welcoming and friendlyOfficer Memorandum.• we are caring and kind we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the • we are welcoming and friendly • we are caring andThe kind Purpose • we value of and the respect System of Internal Control • we are welcomingThe system of and internal friendly control is• designed we are to manage risk to a reasonable level rather than caring and kind • we value and respect • we work together • weto eliminate go the all riskextra of failure mile to achieve• we are policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal welcoming and friendly • we are caring and kind • we value andcontrol respect is based • onwe an work on-going together process designed • to identify and prioritise the risks to the achievement of the policies, aims and objectives of Greater Manchester West Mental • we are welcoming and friendly • weHealth are caring NHS Foundation and kind Trust, • to we evaluate value the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Greater Manchester West Mental Health NHS Foundation Trust for the year ended 31 March 2015 and up to the date of approval of the annual report and accounts.

Capacity to Handle Risk

I have overall accountability for ensuring an effective risk management system is in place within the Trust and I have delegated responsibility for the overall co-ordination of risk management to the Director of Human Resources and Governance.

The Director of Human Resources and Governance ensures an effective overall approach to risk management including the development of the Risk Management Strategy and specifically the identification, assessment and management of risks. This also includes the responsibility for ensuring compliance with health and safety legislation, security

Page 78 Greater Manchester West Mental Health NHS Foundation Trust Annual Governance Statement

requirements (as the nominated Security Management Director) and emergency preparedness requirements (as the Accountable Emergency Officer).

The Medical Director leads on clinical risk management, medicines management and safe standards of medical practice.

The Director of Finance and Information Management & Technology (IM&T) leads on financial and information risk management.

The Director of Nursing and Operations ensures the effective application of risk management across clinical and operational services and leads specifically on safeguarding and infection prevention.

The Director of Estates and Facilities manages risk in relation to the development, management and maintenance of the Trust estate and matters relating to fire safety.

The Deputy Chief Executive/Director of Development and Performance ensures effective risk management in business development and the compliance against Care Quality Commission standards.

A supporting system for managing risk has been devolved to the Deputy Director of Integrated Governance (Risk) with support from the Head of Risk, Safety and Resilience. There are also clearly defined risk and clinical governance structures within directorates.

The Risk Management• Strategy we value was reviewed and respect in March 2014 • we and work is currently together being updated. • we go the extra mile It provides a framework for managing risks across the organisation which is consistent with best practice and Departmentand friendly of Health guidance. The• we areThe caring Strategy andprovides kind a a clear, • we structured value and respect • we work together • and systematic approach to the management of risks to ensure that risk assessment is an integral part of clinical, managerial and financial• we processes are welcomingacross the organisation. and friendly • we are caring and kind • we value and The Strategy sets out therespect role of the• we Board work of Directors together and Sub • weCommittees go the together extra mile • we are welcoming and friendly • we with the individual responsibilities of, Executive Directors, managers and all staff in managing risk. In particular,are caring the Risk and Management kind • we Strategy value Group and along respect with • we work together • committees for health and safety and emergency planning provides the mechanism for managing and monitoringwe arerisk throughout welcoming the Trust and and friendly reporting • through we are to thecaring Board. and kind • we value and respect • we work The Audit Committee is concerned withwe evidence go the of the extra probity mile and efficiency • we are of the welcoming and friendly • we are caring and kind management of risk in relation to the Trust’s financial, governance and clinical operations. The Quality Governance• we Committee value overseesand respect the system • we of quality work governance together and • thewe go the extra mile overall assurance process associated with managing clinical service delivery effectively. The Board of Directors routinelyfriendly receives • we minutes are of caring all sub committees. and kind • we value and respect • we work together • Risk management training is provided •through we are the welcoming induction programme and friendly for new staff. • we are caring and kind • we value and respect In addition tailored training for individual roles are identified by managers and agreed with staff through personal development plans. we go the extra mile • we are welcoming and friendly • we are

The corporate inductioncaring programme and kindensures • that we all value new staff and are respect provided •with we details work together • we go the extra mile of the Trust’s risk management systems and processes and is augmented by local induction organised by line managers.welcoming Mandatory and training friendly covers •a wevariety are of caringrisk management and kind • we value and respect • we work together • process including healthwe and go safety, the security extra etc. mile • we are welcoming and friendly • we are caring and kind • we value Training for various staffand groups respect on risk • management we work togetheris detailed in •the we Trust’s go ‘Training the extra mile • we are welcoming and friendly • Needs Analysis’. Trust policies clearly state the levels of accountability, arrangements and process for the managementwe are of riskcaring across and the Trust. kind The • Trustwe valueis committed and torespect learning • we work together • from incidents that have occurred and communicates its lessons learnt not just within the Trust but also with its stakeholders externally. The Board receives information on serious untoward incidents.

Annual Report 2014/15 Page 79 Root-cause analysis training has been provided to staff members who have direct responsibility for risk management within their area of work. Lessons learnt when things go wrong are shared through the organisation via a range of mechanisms including briefings and governance meetings.

The Trust has mechanisms to act upon alerts and recommendations made by all relevant central bodies such as the National Patient Safety Agency (NPSA), National Health Service Litigation Authority (NHSLA) and the Health and Safety Executive (HSE).

The Risk and Control Framework

The Risk Management Strategy establishes the formal structured approach to the identification, assessment, treatment and management of risks. The process starts with a systematic identification of risks throughout the organisation which are documented within risk registers. These risks are then analysed in order to determine their relative importance using a risk scoring matrix. Low scoring risks are managed by the area in which they are found while higher scoring risks are managed at progressively higher levels within the organisation. Achieving control of the higher scoring risks is given priority over lower scoring risks. Risk control measures are identified and taken to reduce the potential for harm.

The system of internal control of quality governance risks is managed through the Risk Management Strategy Group system. Risks are added to the appropriate clinical service risk register with higher ranking risks being reviewed by the Risk Management Strategy Group through which control actions are agreed and monitored. The Risk Management Strategy Group reports directly to the Quality Governance Committee. Risk management is bedded throughout the organisation and all staff are encouraged to report incidents and raise concerns. The NHS Staff Survey for 2014 ranked the organisation better than the national average of mental health trusts in relation to the percentage of staff reporting errors, near misses or incidents. Risk management is further embedded through the annual business planning process with key risks to the delivery of Directorate plans identified as a core requirement.

The key in year risks facing the organisation which have been managed and mitigated at Board level are:

• Security of income as a consequence of the economic climate and commissioner intentions • Compliance with national and local targets • The effective implementation of the Acute Care Pathway • Implementation of the new clinical information system • Higher than normal staff sickness absence • Achievement of required compliance for mandatory training • Resilience of IT infrastructure and business continuity arrangements • Effectiveness of workforce planning to control pay costs

The key future risks in addition to the above to be managed and mitigated are:

• Development of integrated care models within local health economy • The implications of the framework for delegation and devolution of health and social care responsibilities in shadow and final form by April 2016 on commissioning arrangements across Greater Manchester.

Page 80 Greater Manchester West Mental Health NHS Foundation Trust With specific reference to Condition FT4 – NHS foundation trust governance arrangements – the Trust Board has continued to ensure that there are:

• effective board and committee structures; • clear responsibilities for its Board, for committees reporting to the Board and for staff reporting to the Board and those committees; and • clear reporting lines and accountabilities throughout the organisation.

The Board confirms that it has complied with Condition FT4 in-year, as at the date of this statement and that it expects to continue to comply with this condition throughout2015/16.

Information governance and data security risks are managed as part of this process and assessed using the Information Governance Tool Kit. The risk register is updated with the currently identified information governance and data security risks. The Trust has a Data Quality Policy which is the responsibility of the Director of Finance and IM&T. Assurance with regard to Data Quality is provided through the Information Governance Steering Group.

Potential and identified risks which may impact on external stakeholders and key partner agencies such as Local Authorities, other NHS Trusts, the judicial system, voluntary organisations and service users are handled through structured mechanisms and forums such as Overview and Scrutiny Committees, contract negotiation meetings, Council of Governor Meetings and service user forums.

The Foundation Trust is fully compliant with the requirements of registration with the Care Quality Commission.

As an employer with staff entitled to membership of the NHS Pension Scheme, control measures are in place to ensure all employer obligations contained within the Scheme Regulations are complied with. This includes ensuring that deductions from salary, employer’s contributions and payments into the Scheme are in accordance with the Scheme rules, and that member Pension Scheme records are accurately updated in accordance with the timescales detailed in the Regulations.

Control measures are in place to ensure that all the organisation’s obligations under equality, diversity and human rights legislation are complied with.

The Foundation Trust has undertaken risk assessments and Carbon Reduction Delivery Plans are in place in accordance with emergency preparedness and civil contingency requirements, as based on UKCIP 2009 weather projects, to ensure that the organisation’s obligations under the Climate Change Act and Adaptation Reporting requirements are complied with.

Review of the Trust’s Economy, Efficiency and Effectiveness of the Use of Resources

The Strategic and Operational Plans are approved by the Board of Directors and submitted to Monitor. The Operational Plan is monitored in detail by the Board of Directors on a monthly basis with key performance indicators and Monitor Metrics reviewed quarterly by the Board. A full copy of the monthly Integrated Finance and Performance Report is issued to all Board Directors and the Trust’s External Auditors. The Trust’s resources are managed within the framework set by the Governance Manual, which includes Standing Financial Instructions. Financial governance arrangements are

Annual Report 2014/15 Page 81 supported by internal and external audit to ensure economic, efficient and effective use of resources.

Directorate and Corporate Departments are responsible for the delivery of financial and other performance targets via a performance management framework. This is led through a monthly Directorate Management Board meeting which includes Executive Director scrutiny of performance.

Information governance

Any Information Governance (IG) breaches are recorded in the Trust Datix system (incident reporting system) any breaches at a high level would be automatically sent to the Information Commissioner’s Office (ICO). GMW has not been referred to the ICO in 2014-15. However, GMW takes any IG incident seriously and has reported five IG related incidents in 2014-15.

These incidents were in relation to unauthorised access to a patient’s record and patient letter’s being sent incorrectly by staff. Two incidents were reported whereby unauthorised access was undertaken by staff, accessing a patient’s record. Both incidents were investigated and the Trusts personal responsibility framework was used in dealing with the staff concerned. The action taken by the Trust was deemed appropriate and satisfactory. Three incidents where letters were incorrectly sent to the wrong location resulted in additional training provided to the staff members concerned.

The ICO was assured that appropriate measures and action had been taken to reduce the risk of a reoccurrence.

Annual Quality Report

The directors are required under the Health Act 2009 and the National Health Service (Quality Accounts) Regulations 2010 (as amended) to prepare Quality Accounts for each financial year. Monitor has issued guidance to NHS foundation trust boards on the form and content of annual Quality Reports which incorporate the above legal requirements in the NHS Foundation Trust Annual Reporting Manual.

We are an organisation that is passionate about delivering high quality care. Quality and continuous improvement is at the heart of everything we do. Through the hard work of our workforce, we have taken significant steps to improve the experience of service users and the safety and effectiveness of care in 2014/15. We have committed to making further improvements in 2015/16. The Quality Governance Committee, which is a formal sub-committee of the Trust Board, is responsible for developing and defining the Trust’s quality strategy and monitoring progress against the quality improvement priorities set out in our Quality Account. The Quality Governance Committee is chaired by a non- executive director and includes representation from all professional groups and services through the Quality Governance Committee, the Board is assured that clear and effective systems and processes are in place to govern quality.

As described in our Quality Account, directors have taken steps to satisfy themselves that the content of our Quality Account presents a fair and balanced view and is consistent with internal and external sources of information including:

• Feedback from Commissioners, governors, local Healthwatch organisations and our joint Scrutiny Committee

Page 82 Greater Manchester West Mental Health NHS Foundation Trust • Feedback from service user forums including from our Recovery Academy courses • Complaints and compliments • Our most recent national Community Mental Health Survey and Staff Survey • Local inpatient surveys • Board to Ward ‘walk-arounds’ • Video diary room events • Care Quality Commission quality and risk profiles and inspection reports • Head of Internal Audit’s opinion on the Trust’s control environment

All Trust policies and procedures are available on the Trust’s intranet and representatives of all professional groups and services are encouraged to participate in consultation on new policies and/or policy updates. Newly approved policies are shared via a network of policy leads, published on the Trust’s intranet and highlighted in internal staff communications.

Our staff are critical to the achievement of our quality improvement priorities. Learning and development opportunities are available for all members of staff, at every stage of their personal development. Through this, staff are equipped with the knowledge and skills needed to deliver high quality services that are positively experienced by our service users. The Trust keeps staff informed about our plans, achievements, examples of best practice and any issues facing the organisation through a range of briefings including ‘GMW Messenger’. Exceptional staff achievements are recognised and celebrated in our annual staff awards. The Trust also participates in the annual National NHS Staff Survey and acts on the feedback received from this survey to improve the working lives of our staff and help provide better care to our service users.

Feedback from our service users, and other key stakeholders including carers, is central to our quality strategy. Delivering improvements in how we listen to and learn from service user feedback remains one of our quality improvement priorities for 2015/16.

With regard to complaints handling, all information on complaints is included in monthly ‘Customer Care Reports’, which are reviewed in local governance meetings.. The Trust produces an annual complaints report in accordance with Regulation 18 of the ‘Local Authority Social Services and NHS Complaints (England) Regulations 2009’. Our annual complaints report is reviewed and agreed by the Quality Governance Committee. The Trust Board receives a monthly summary of complaints activity.

The Trust has achieved a ‘green’ rating for performance against the Information Governance Toolkit standards. The Information Governance Toolkit provides an overall measure of the quality of data systems, standards and processes.

The Trust has robust systems in place to review and report data quality and performance against our Quality Account improvement priorities and other key quality indicators. The remit of our ‘Performance Measures and Data Quality Group’ includes raising awareness of the importance of data quality, ensuring all staff are aware of their data quality responsibilities, and supporting the development of policies and procedures to improve data quality. The Trust Board receives assurance on data quality and performance via a monthly ‘Board Performance Report’. The ‘Board Performance Report’ is informed by individual directorate performance reports, which are subject to local scrutiny and monitoring.

For more information on our approach to quality, please see our ‘Quality Account 2014/15’.

Annual Report 2014/15 Page 83 Review of effectiveness

As Accounting Officer, I have responsibility for reviewing the effectiveness of the system of internal control. My review of the effectiveness of the system of internal control is informed by the work of the internal auditors, clinical audit and the executive managers and clinical leads within the NHS Foundation Trust who have responsibility for the development and maintenance of the internal control framework. I have drawn on the content of the Quality Report attached to this Annual Report and other performance information available to me. My review is also informed by comments made by the external auditors in their management letter and other reports. I have been advised on the implications of the result of my review of the effectiveness of the system of internal control by the Board, the Audit Committee and Quality Governance Committee and plan to address weaknesses and ensure continuous improvement of the system is in place.

The assurance framework itself provides me with evidence that the effectiveness of controls that manage the risks to the organisation achieving its principle objectives have been reviewed. The Director of Internal Audit provides me with an opinion on the overall arrangements for gaining assurance through the assurance framework and on controls reviewed as part of the internal audit work through reviews by the Quality Governance and Audit Committees. The Board Assurance Framework is reviewed by the Board of Directors quarterly and it provides me and the Board with evidence of the effectiveness of controls in place to manage risks to achieving the organisation’s principle objectives.

My review is also informed by External Audit, the National Health Service Litigation Authority and periodic audits of compliance with the Standards by the Care Quality Commission, Mental Health Commission and other external inspections, accreditations and reviews.

Processes are well established and ensure regular review of systems and action plans on the effectiveness of the systems of internal control through:

• Board review of Board Assurance Framework and action plans; • Audit Committee scrutiny of controls in place; • Review of serious incidents and learning by the Quality Governance Committee, including those for Risk Management and Clinical Effectiveness; • Review of progress in meeting the requirements as set by the Care Quality Commission; • Internal audits of effectiveness of systems of internal control

Conclusion

No significant control issues were identified.

Signed:

B ev H umpH rey, CH ief e xeC utive D ateD : 22n D m ay 2015

Page 84 Greater Manchester West Mental Health NHS Foundation Trust Annual Report 2014/15 Page 85 Independent Auditor’s Report

• we are welcoming and friendly • we are caring and kind • we value and respect • we work • we are welcoming and friendly • we are caring and kind We have audited the financial statements of Greater Manchester West Mental Health NHS • we value and respect • we work together • we go the extraFoundation mile Trust • for we the are year welcomingended 31 March 2015 set out on pages 98 to 144. In our and friendly • we are caring and kind • we value and respectopinion: • we work together • we go • we are welcoming and friendly • we are caring and kind • we value and we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile we are welcoming and friendly • we are caring and kind • we value and respect • we work • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming Refer to page 52 (Audit Committee Report), page 106 (accounting policy) and pages and friendly • we are caring and kind • we value and respect128 •to we132 (financialwork together disclosures). • we go • we are welcoming and friendly • we are caring and kind • we value and we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile we are welcoming and friendly • we are caring and kind • we value and respect • we work • we are welcoming and friendly • we are caring and kind

Page 86 Greater Manchester West Mental Health NHS Foundation Trust Independent Auditor’s Report

Refer to page 52 (Audit Committee Report), page 115 (accounting policy) and page 136 (financial disclosures).

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Annual Report 2014/15 Page 87 Page 88 Greater Manchester West Mental Health NHS Foundation Trust Annual Report 2014/15 Page 89 we go the extra mile • we are welcomingAppendix and friendly 1 • we are caring and kind • we value and respect • we work together • we go the extra mile are welcoming and friendly • we are caring and kind • NHSwe value Foundation and respect Trust• we work Code of Governance • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the Partextra of mileRelating • to we are Code welcomingof Summary of requirement Page Schedule A Governance Reference and friendly • we are caring and kind • we value and respect • we work togetherReference • we go 2: Disclose Board and A.1.1 The schedule of matters reserved for the board of Page 39 • we are welcoming and friendly • we are caring andCouncil ofkind • we valuedirectors and should include a clear statement detailing Governors the roles and responsibilities of the council of we go the extra mile • we are welcoming and friendlygovernors. This • we statement should also describe how any disagreements between the council of are caring and kind • we value and respect • we work together • we go the extra milegovernors and the board will be resolved. The annual report should include this schedule of we are welcoming and friendly • we are caring and kind • we value and respect • we matterswork or a summary statement of how the board of directors and the council of governors operate, • we are welcoming and friendly • we are caring andincluding kind a summary of the types of decisions to be taken by each of the boards and which are • we value and respect • we work together • we go the extra mile • we are welcomingdelegated to the executive management of the board of directors. and friendly • we are caring and kind • we value and respect2: Disclose • we Board, work togetherA.1.2 • weThe annualgo report should identify the chairperson, Pages 46 to Nomination the deputy chairperson (where there is one), the 57 • we are welcoming and friendly • we are caring andCommittee(s), kind • we valuechief and executive, the senior independent director Audit Committee, (see A.4.1) and the chairperson and members we go the extra mile • we are welcomingRemuneration and friendlyof • the we nominations, audit and remuneration* Committee committees. It should also set out the number of are caring and kind • we value and respect • we work together • we go the extra milemeetings of the board and those committees and individual attendance by directors. 2: Disclose Council of A.5.3 The annual report should identify the members Page 42 Governors of the council of governors, including a description of the constituency or organisation that they represent, whether they were elected or appointed, and the duration of their appointments. The annual report should also identify the nominated lead governor. Additional Council of n/a The annual report should include a statement Page 42 requirement Governors about the number of meetings of the council of of FT Arm governors and individual attendance by governors and directors. 2: Disclose Board B.1.1 The board of directors should identify in the Pages 46 to annual report each non-executive director it 49 considers to be independent, with reasons where necessary. 2: Disclose Board B.1.4 The board of directors should include in its annual Pages 49 to report a description of each director’s skills, 51 expertise and experience. Alongside this, in the annual report, the board should make a clear statement about its own balance, completeness and appropriateness of the NHS foundation trust.

Page 90 Greater Manchester West Mental Health NHS Foundation Trust Appendix 1 - NHS Foundation Trust Code of Governance

Additional Board n/a The annual report should include a brief Page 39 requirement description of the length of appointments of the of FT ARM non-executive directors, and how they may be terminated. 2: Disclose Nominations B.2.10 A separate selection of the annual report Pages 52 Committee(s) should describe the work of the nominations committee(s), including the process it has used in relation to board appointments. Additional Nominations n/a The disclosure in the annual report on the work Page 52 requirement Committee of the nominations committee should include of FT ARM an explanation if neither an external search consultancy nor open advertising has been used in the appointment of a chair or non-executive director. 2: Disclose Chair / Council of B.3.1 A chairperson’s other significant commitments Page 46 Governors should be disclosed to the council of governors before appointment and included in the annual report. Changes to such commitments should be reported to the council of governors as they arise, and included in the next annual report. 2: Disclose Council of B.5.6 Governors should canvass the opinion of the Page 42 Governors trust’s members and the public, and for appointed governors the body they represent, on the NHS foundation trust’s forward plan, including its objectives, priorities and strategy, and their views should be communicated to the board of directors. The annual report should contain a statement as to how this requirement has been undertaken and satisfied. Additional Council of n/a If, during the financial year, the Governors have N/A requirement Governors • we valueexercised and their respect power* under • paragraphwe work 10C** oftogether • we go the extra mile of FT ARM schedule 7 of the NHS Act 2006, then information and friendlyon this • must we be includedare caring in the annual and report. This kind • we value and respect • we work together • is required by paragraph 26(2) (aa) of schedule 7 to the NHS Act 2006, as amended by section 151 (8) of the Health and• Socialwe Care are Act 2012.welcoming and friendly • we are caring and kind • we value and

respect • we*Power work to require together one or more of the• wedirectors go the extra mile • we are welcoming and friendly • we to attend a governors’ meeting for the purpose of obtaining information about the foundation are caringtrust’s and performance kind •of itswe function value or the directors’and respect • we work together • performance of their duties (and deciding whether we are welcomingto propose a vote and on the foundationfriendly trust’s • or we are caring and kind • we value and respect • we work directors’ performance).

**Aswe inserted go by the section extra151 (6) of the mile Health and • we are welcoming and friendly • we are caring and kind Social Care Act 2012) 2: Disclose Board • B.6.1we valueThe and board respect of directors should • we state work in the annual together Page 39 • we go the extra mile report how performance evaluation of the board, friendly • itswe committees, are caring and its directors, and including kind the • we value and respect • we work together • chairperson, has been conducted. 2: Disclose Board B.6.2 Where• we there hasare been welcoming external evaluation andof the friendlyN/A • we are caring and kind • we value and respect board, and/or governance of the Trust, the external facilitator should be identified in the annual report and a statement made aswe to whether go they the have extra mile • we are welcoming and friendly • we are any other connection to the trust. 2: Disclose Board caringC.1.1 andThe kind directors • shouldwe explainvalue in the and annual respect report Page • we 30 and work together • their responsibility for preparing the annual report 82 welcomingand and accounts, friendly and state that • theywe consider are thecaring and kind • we value and respect • we work together • annual report and accounts, taken as a whole, are fair, balanced and understandable and provide the we go theinformation extra necessary mile for •patients, we regulatorsare welcoming and and friendly • we are caring and kind • we value other stakeholders to assess the NHS foundation and respecttrust’s • performance,we work business together model and strategy. • we go the extra mile • we are welcoming and friendly • Directors should also explain their approach to quality governance in the Annual Governance we are caringStatement and (within kind the annual • we report). value and respect • we work together • 2: Disclose Board C.2.1 The annual report should contain a statement Page 80 that the board has conducted a review of the effectiveness of its systems of internal controls.

Annual Report 2014/15 Page 91 2: Disclose Audit Committee C.2.2 A trust should disclose in the annual report: Page 54 / control environment (a) If it has an internal audit function, how the function is structured and what role it performs; or

(b) If it does not have an internal audit function, that fact and the processes it employs for evaluating and continually improving the effectiveness of its risk management and internal control processes 2: Disclose Audit Committee C.3.5 If the council of governors does not accept the N/A / Council of audit committee’s recommendation on the Governors appointment, reappointment or removal of an external auditor, the board of directors should include in the annual report a statement from the audit committee explaining the recommendation and should set out reasons why the council of governors has taken a different position. 2: Disclosure Audit Committee C.3.9 A separate section of the annual report should Pages 54 to describe the work of the audit committee in 56 discharging its responsibilities. The report should include:

• The significant issues that the committee considered in relation to financial settlements, operation and compliance, and how these issues were addressed;

• An explanation of how it has assessed the effectiveness of the external audit process and the approach taken to the appointment or re- appointment of the external auditor, the value of external audit services and information on the length of tenure of the current audit firm and when a tender was last conducted; and

• If the external auditor provides non-audit services, the value of the non-audit services provided and an explanation of how auditor objectivity and independence are safeguarded. 2: Disclose Board / D.1.3 Where an NHS foundation trust releases an N/A Remuneration executive director, for example to serve as a non- Committee executive director elsewhere, the remuneration disclosures of the annual report should include a statement of whether or not the director will retain such earnings.* 2: Disclose Board E.1.5 The board of directors should state in the annual Page 39 report the steps they have taken to ensure that the members of the board, and in particular the non-executive directors, develop an understanding of the views of governors and members about the NHS foundation trust, for example through attendance at meetings of the council of governors, direct face-to-face contact, surveys of members’ opinions and consultations 2: Disclose Board / E.1.6 The board of directors should monitor how Pages 58 to Membership representative the NHS foundation trust’s 59 membership is and the level and effectiveness of member engagement and report on this in the annual report. 2: Disclose Membership E.1.4 Contact procedures for members who wish to Page 58 communicate with governors and/or directors should be made clearly available to members on the NHS foundation trust’s website and in the annual report.

Page 92 Greater Manchester West Mental Health NHS Foundation Trust Additional Membership n/a The annual report should include: Pages 58 to requirement 59 of FT ARM • A brief description of the eligibility requirements for joining different membership constituencies, including the boundaries for public membership;

• Information on the number of members and the number of members in each constituency; and

• A summary of the membership strategy, an assessment of the membership and a description of any steps taken during the year to ensure a representative membership (see also E.1.6 above), including progress towards any recruitment targets for members. Additional Board / Council of n/a The annual report should disclose details of Pages 32 to requirement Governors company directorships or other material interests 33 and 46 of FT ARM in companies held by governors and/or directors (based where those companies or related parties are on FReM likely to do business, or are possibly seeking to requirement) do business, with the NHS foundation trust. As each NHS foundation trust must have registers of governors’ and directors’ interests which are available to the public, an alternative disclosure is for the annual report to simply state how members of the public can gain access to the registers instead of listing all the interests in the annual report.

See also ARM paragraph 7.33 as directors’ report requirement. 6: Comply or Board A.1.4 The board should ensure that adequate systems Comply explain and processes are maintained to measure and monitor the NHS foundation trust’s effectiveness, efficiency and economy as well as the quality of its health care delivery 6: Comply or Board A.1.5 The board should ensure that relevant metrics, Comply explain measures, milestones and accountabilities are developed and agreed so as to understand and assess progress and delivery of performance 6: Comply or Board A.1.6 The board should report on its approach to clinical Comply explain governance. 6: Comply or Board A.1.7 The chief executive as the accounting officer Comply explain should follow the procedure set out by Monitor for advising the board and the council and for recording and submitting objections to decisions. 6: Comply or Board A.1.8 The board should establish the constitution and Comply explain standards of conduct for the NHS foundation trust and its staff in accordance with NHS values and accepted standards of behaviour in public life 6: Comply or Board A.1.9 The board should operate a code of conduct Comply explain that builds on the values of the NHS foundation trust and reflect high standards of probity and responsibility. 6: Comply or Board A.1.10 The NHS foundation trust should arrange Comply explain appropriate insurance to cover the risk of legal action against its directors. 6: Comply or Chair A.3.1 The chairperson should, on appointment by the Comply explain council, meet the independence criteria set out in B.1.1. A chief executive should not go on to be the chairperson of the same NHS foundation trust. 6: Comply or Board A.4.1 In consultation with the council, the board should Comply explain appoint one of the independent non-executive directors to be the senior independent director. 6: Comply or Board A.4.2 The chairperson should hold meetings with the Comply explain non-executive directors without the executives present. 6: Comply or Board A.4.3 Where directors have concerns that cannot be Comply explain resolved about the running of the NHS foundation trust or a proposed action, they should ensure that their concerns are recorded in the board minutes.

Annual Report 2014/15 Page 93 6: Comply or Council of A.5.1 The council of governors should meet sufficiently Comply explain Governors regularly to discharge its duties. 6: Comply or Council of A.5.2 The council of governors should not be so large as Comply explain Governors to be unwieldy. 6: Comply or Council of A.5.4 The roles and responsibilities of the council of Comply explain Governors governors should be set out in a written document. 6: Comply or Council of A.5.5 The chairperson is responsible for leadership Comply explain Governors of both the board and the council but the governors also have a responsibility to make the arrangements work and should take the lead in inviting the chief executive to their meetings and inviting attendance by other executives and non- executives, as appropriate. 6: Comply or Council of A.5.6 The council should establish a policy for Comply explain Governors engagement with the board of directors for those circumstances when they have concerns. 6: Comply or Council of A.5.7 The council should ensure its interaction and Comply explain Governors relationship with the board of directors is appropriate and effective. 6: Comply or Council of A.5.8 The council should only exercise its power to Comply explain Governors remove the chairperson or any non-executive directors after exhausting all means of engagement with the board. 6: Comply or Council of A.5.9 The council should receive and consider other Comply explain Governors appropriate information required to enable it to discharge its duties. 6: Comply or Board B.1.2 At least half the board, excluding the chairperson, Comply explain should comprise non-executive directors determined by the board to be independent. 6: Comply or Board / Council of B.1.3 No individual should hold, at the same time, Comply explain Governors positions of director and governor of any NHS foundation trust. 6: Comply or Nomination B.2.1 The nominations committee or committees, with Comply explain Committee(s) external advice as appropriate, are responsible for the identification and nomination of executive and non-executive directors. 6: Comply or Board / Council of B.2.2 Directors on the board of directors and governors Comply explain Governors on the council should meet the “fit and proper” persons test described in the provider licence. 6: Comply or Nomination B.2.3 The nominations committee(s) should regularly Comply explain Committee(s) review the structure, size and composition of the board and make recommendations for changes where appropriate. 6: Comply or Nomination B.2.4 The chairperson or an independent non- Comply explain Committee(s) executive director should chair the nominations committee(s). 6: Comply or Nomination B.2.5 The governors should agree with the nominations Comply explain Committee(s) committee a clear process for the nomination of a / Council of new chairperson and non-executive directors. Governors 6: Comply or Nomination B.2.6 Where an NHS foundation trust has two Not explain Committee(s) nominations committees, the nominations applicable committee responsible for the appointment of nonexecutive directors should consist of a majority of governors. 6: Comply or Council of B.2.7 When considering the appointment of non- Comply explain Governors executive directors, the council should take into account the views of the board and the nominations committee on the qualifications, skills and experience required for each position. 6: Comply or Council of B.2.8 The annual report should describe the Comply explain Governors process followed by the council in relation to appointments of the chairperson and non- executive directors. 6: Comply or Nomination B.2.9 An independent external adviser should not be Comply explain Committee(s) a member of or have a vote on the nominations committee(s).

Page 94 Greater Manchester West Mental Health NHS Foundation Trust 6: Comply or Board B.3.3 The board should not agree to a full-time executive Comply explain director taking on more than one non-executive directorship of an NHS foundation trust or another organisation of comparable size and complexity. 6: Comply or Board / Council of B.5.1 The board and the council governors should Comply explain Governors be provided with high quality information appropriate to their respective functions and relevant to the decisions they have to make. 6: Comply or Board B.5.2 The board and in particular non-executive Comply explain directors, may reasonably wish to challenge assurances received from the executive management. They need not seek to appoint a relevant adviser for each and every subject area that comes before the board, although they should, wherever possible, ensure that they have sufficient information and understanding to enable challenge and to take decisions on an informed basis. 6: Comply or Board B.5.3 The board should ensure that directors, especially Comply explain non-executive directors, have access to the independent professional advice, at the NHS foundation trust’s expense, where they judge it necessary to discharge their responsibilities as directors. 6: Comply or Board / B.5.4 Committees should be provided with sufficient Comply explain Committees resources to undertake their duties. 6: Comply or Chair B.6.3 The senior independent director should lead the Comply explain performance evaluation of the chairperson. 6: Comply or Chair B.6.4 The chairperson, with assistance of the board Comply explain secretary, if applicable, should use the performance evaluations as the basis for determining individual and collective professional development programmes for non-executive directors relevant to their duties as board members. 6: Comply or Chair / Council of B.6.5 Led by the chairperson, the council should Comply explain Governors periodically assess their collective performance and they should regularly communicate to members and the public details on how they have discharged their responsibilities. 6: Comply or Council of B.6.6 There should be a clear policy and a fair process, Comply explain Governors agreed and adopted by the council, for the removal from the council of any governor who consistently and unjustifiably fails to attend the meetings of the council or has an actual or potential conflict of interest which prevents the proper exercise of their duties. 6: Comply or Board / B.8.1 The remuneration committee should not agree Comply explain Remuneration to an executive member of the board leaving the Committee employment of an NHS foundation trust, except in accordance with the terms of their contract of employment, including but not limited to service of their full notice period and/or material reductions in their time commitment to the role, without the board first having completed and approved a full risk assessment. 6: Comply or Board C.1.2 The directors should report that the NHS Comply explain foundation trust is a going concern with supporting assumptions or qualifications as necessary.

See also ARM paragraph 7.17. 6: Comply or Board C.1.3 At least annually and in a timely manner, the Comply explain board should set out clearly its financial, quality and operating objectives for the NHS foundation trust and disclose sufficient information, both quantitative and qualitative, of the NHS foundation trust’s business and operation, including clinical outcome data, to allow members and governors to evaluate its performance.

Annual Report 2014/15 Page 95 6: Comply or Board C.1.4 a) The board of directors must notify Monitor Comply explain and the council of governors without delay and should consider whether it is in the public’s interest to bring to the public attention, any major new developments in the NHS foundation trust’s sphere of activity which are not public knowledge, which it is able to disclose and which may lead by virtue of their effect on its assets and liabilities, or financial position or on the general course of its business, to a substantial change to the financial wellbeing, health care delivery performance or reputation and standing of the NHS foundation trust.

b) The board of directors must notify Monitor and the council of governors without delay and should consider whether it is in the public interest to bring to public attention all relevant information which is not public knowledge concerning a material change in:

• the NHS foundation trust’s financial condition;

• the performance of its business; and/or

• the NHS foundation trust’s expectations as to its performance which, if made public, would be likely to lead to a substantial change to the financial wellbeing, health care delivery performance or reputation and standing of the NHS foundation trust. 6: Comply or Board / Audit C.3.1 The board should establish an audit committee Comply explain Committee composed of at least three members who are all independent non-executive directors. 6: Comply or Council of C.3.3 The council should take the lead in agreeing with Comply explain Governors / Audit the audit committee the criteria for appointing, re- Committee appointing and removing external auditors. 6: Comply or Council of C.3.6 The NHS foundation trust should appoint an Comply explain Governors / Audit external auditor for a period of time which allows Committee the auditor to develop a strong understanding of the finances, operations and forward plans of the NHS foundation trust. 6: Comply or Council of C.3.7 When the council ends an external auditor’s Comply explain Governors appointment in disputed circumstances, the chairperson should write to Monitor informing it of the reasons behind the decision. 6: Comply or Audit Committee C.3.8 The audit committee should review arrangements Comply explain that allow staff of the NHS foundation trust and other individuals where relevant, to raise, in confidence, concerns about possible improprieties in matters of financial reporting and control, clinical quality, patient safety or other matters. 6: Comply or Remuneration D.1.1 Any performance-related elements of the Not explain Committee remuneration of executive directors should be applicable designed to align their interests with those of patients, service users and taxpayers and to give these directors keen incentives to perform at the highest levels. 6: Comply or Remuneration D.1.2 Levels of remuneration for the chairperson and Comply explain Committee other non-executive directors should reflect the time commitment and responsibilities of their roles. 6: Comply or Remuneration D.1.4 The remuneration committee should carefully Comply explain Committee consider what compensation commitments (including pension contributions and all other elements) their directors’ terms of appointments would give rise to in the event of early termination. 6: Comply or Remuneration D.2.2 The remuneration committee should have Comply explain Committee delegated responsibility for setting remuneration for all executive directors, including pension rights and any compensation payments.

Page 96 Greater Manchester West Mental Health NHS Foundation Trust 6: Comply or Council of D.2.3 The council should consult external professional Comply explain Governors / advisers to market test the remuneration levels of Remuneration the chairperson and other nonexecutives at least Committee once every three years and when they intend to make a material change to the remuneration of a non-executive. 6: Comply or Board E.1.2 The board should clarify in writing how the public Comply explain interests of patients and the local community will be represented, including its approach for addressing the overlap and interface between governors and any local consultative forums. 6: Comply or Board E.1.3 The chairperson should ensure that the views of Comply explain governors and members are communicated to the board as a whole. 6: Comply or Board E.2.1 The board should be clear as to the specific Comply explain third party bodies in relation to which the NHS foundation trust has a duty to co-operate. 6: Comply or Board E.2.2 The board should ensure that effective Comply explain mechanisms are in place to co-operate with relevant third party bodies and that collaborative and productive relationships are maintained with relevant stakeholders at appropriate levels of seniority in each.

Annual Report 2014/15 Page 97 Appendix 2 • we are welcoming and friendly • we are caring and kind we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respectForeword • we work totogether the Accounts• we go

• we are welcoming and friendly • we are Greatercaring Manchester and kind West • Mentalwe value Health and NHS Foundation Trust we go the extra mile • we are welcoming and friendly • we These accounts, for the year ended 31 March 2015, have been prepared by Greater are caring and kind • we value and respect • we work togetherManchester • we West go Mental the Healthextra NHS mile Foundation Trust in accordance with paragraphs 24 we are welcoming and friendly • we are caring and kind • we& 25 valueof Schedule and 7 withinrespect the National• we work Health Service Act 2006. • we are welcoming and friendly • we are caring and kind we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respectSigned: • we work together • we go • we are welcoming and friendly • we are caring and kind • we value and we go the extra mile • we areB ev welcomingH umpH rey, CH andief e xefriendlyC utive • we D ateD : 22n D m ay 2015 are caring and kind • we value and respect • we work together • we go the extra mile we are welcoming and friendly • we are caring and kind • we value and respect • we work • we are welcoming and friendly • we are caring and kind we go the extra mile • we are welcoming

Page 98 Greater Manchester West Mental Health NHS Foundation Trust Appendix 2 - Annual Accounts

Statement of Comprehensive Income

2014/15 2013/14 Note £000 £000 Operating income from patient care activities 3 153,131 146,043 Other operating income 4 13,407 11,544 Total operating income from continuing 166,538 157,587 operations Operating expenses 5, 7 (156,452) (149,178) Operating surplus/(deficit) from continuing 10,086 8,409 operations

Finance income 10 192 164 Finance expenses 11 (180) (145) PDC dividends payable (2,059) (1,838) Net finance costs (2,047) (1,819) • we value and respect • we work together • we go the extra mile Share of profit of associates/joint arrangements - - Gains/ (losses) arising fromand transfers friendly by absorption • we are caring34 and kind- • we value- and respect • we work together • Corporation tax expense • we are welcoming- and friendly- • we are caring and kind • we value and Surplus/(deficit) for the year from continuing 8,039 6,590 operations respect • we work together • we go the extra mile • we are welcoming and friendly • we Surplus/(deficit) on discontinued operations and the - - gain/(loss) on disposal of discontinuedare caring operations and kind • we value and respect • we work together • Surplus/(deficit) for thewe year are welcoming and friendly •8,039 we are caring 6,590 and kind • we value and respect • we work

Other comprehensive income we go the extra mile • we are welcoming and friendly • we are caring and kind Will not be reclassified• towe income value and and respect • we work together • we go the extra mile expenditure: Gains/(loss) arising from transfer by absorption from friendly • we are caring and kind • -we value327 and respect • we work together • demising bodies Impairments • we are welcoming6 and- friendly • we- are caring and kind • we value and respect Revaluations 17we go the extra- mile- • we are welcoming and friendly • we are Other reserve movements (6) (16) Total comprehensive income/(expense)caring and kind for the • we value and respect • we work together • we go the extra mile 8,033 6,901 period welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together • we go the extra mile • we are welcoming and friendly • we are caring and kind • we value and respect • we work together •

Annual Report 2014/15 Page 99 Statement of Financial Position

31 March 31 March 2015 2014 Note £000 £000 Non-current assets Intangible assets 14 231 - Property, plant and equipment 15 110,320 101,423 Trade and other receivables 23 10 706 Total non-current assets 110,561 102,129 Current assets Inventories 20 - - Trade and other receivables 23 8,177 4,126 Cash and cash equivalents 25 49,844 56,436 Total current assets 58,021 60,562 Current liabilities Trade and other payables 26 (24,034) (19,945) Other liabilities 27 (19,855) (11,924) Provisions 28 (2,723) (3,076) Total current liabilities (46,612) (34,945) Total assets less current liabilities 121,970 127,746 Non-current liabilities Trade and other payables 26 - - Other liabilities 27 (2,490) (16,567) Provisions 28 (3,100) (3,090) Total non-current liabilities (5,590) (19,657) Total assets employed 116,380 108,089

Financed by Public dividend capital 92,561 92,303 Revaluation reserve 4,783 4,831 Other reserves 470 485 Income and expenditure reserve 18,566 10,470 Total taxpayers’ equity 116,380 108,089

The notes 1 - 37 form part of these accounts.

Signed:

B ev H umpH rey, CH ief e xeC utive D ateD : 22n D m ay 2015

Page 100 Greater Manchester West Mental Health NHS Foundation Trust Statement of Changes in Equity for the year ended 31 March 2015

Available Public Income and Revaluation for sale Other Merger dividend expenditure Total reserve investment reserves reserve capital reserve reserve

£000 £000 £000 £000 £000 £000 £000 Taxpayers’ and others’ equity at 1 92,303 4,831 - 485 - 10,470 108,089 April 2014 - brought forward At start of period for ------new FTs Surplus/(deficit) for - - - - - 8,039 8,039 the year Public dividend capital 251 - - - - - 251 received Other reserve 7 (48) - (15) - 57 1 movements Taxpayers’ and others’ equity at 31 92,561 4,783 - 470 - 18,566 116,380 March 2015

Statement of Changes in Equity for the year ended 31 March 2014

Available Public Income and Revaluation for sale Other Merger dividend expenditure Total reserve investment reserves reserve capital reserve reserve

£000 £000 £000 £000 £000 £000 £000 Taxpayers’ and others’ equity at 1 92,303 4,978 - 500 - 3,407 101,188 April 2013 - brought forward Prior period ------adjustment Taxpayers’ and others’ equity at 1 92,303 4,978 - 500 - 3,407 101,188 April 2013 - restated At start of period for ------new FTs Surplus/(deficit) for - - - - - 6,590 6,590 the year Transfers by absorption: gains/ - - - - - 327 327 (losses) on 1 April transfers Transfers by absorption: transfers ------between reserves Transfer from revaluation reserve to income and expenditure reserve - (99) - - - 99 - for impairments arising from consumption of economic benefits Other movements in public dividend capital ------in year Other reserve - (48) - (15) - 47 (16) movements Taxpayers’ and others’ equity at 31 92,303 4,831 - 485 - 10,470 108,089 March 2014

Annual Report 2014/15 Page 101 Information on reserves

Public dividend capital Public dividend capital (PDC) is a type of public sector equity finance based on the excess of assets over liabilities at the time of establishment of the predecessor NHS trust. Additional PDC may also be issued to NHS foundation trusts by the Department of Health. A charge, reflecting the cost of capital utilised by the NHS foundation trust, is payable to the Department of Health as the public dividend capital dividend.

Revaluation reserve Increases in asset values arising from revaluations are recognised in the revaluation reserve, except where, and to the extent that, they reverse impairments previously recognised in operating expenses, in which case they are recognised in operating income. Subsequent downward movements in asset valuations are charged to the revaluation reserve to the extent that a previous gain was recognised unless the downward movement represents a clear consumption of economic benefit or a reduction in service potential.

Other reserve The balance of this reserve is from the transfer of property to the Trust in 2000-2001.

Income and expenditure reserve The balance of this reserve is the accumulated surpluses and deficits of the NHS foundation trust.

Page 102 Greater Manchester West Mental Health NHS Foundation Trust Statement of Cash Flows

2014/15 2013/14 Note £000 £000 Cash flows from operating activities Operating surplus/(deficit) 10,086 8,409 Non-cash income and expense: Depreciation and amortisation 5 3,226 2,713 Impairments and reversals of impairments 6 885 1,826 (Gain)/loss on disposal of non-current assets 4 (1) - (Increase)/decrease in receivables and other assets (3,431) (496) (Increase)/decrease in inventories - - Increase/(decrease) in payables and other liabilities (3,916) 4,149 Increase/(decrease) in provisions (523) (1,178) Tax (paid)/received - - Operating cash flows movement of discontinued - - operations Other movements in operating cash flows 1 (23) Net cash generated from/(used in) operating 6,327 15,400 activities Cash flows from investing activities Interest received 189 164 Purchase and sale of financial assets - - Purchase of intangible assets (148) - Sales of intangible assets - - Purchase of property, plant, equipment and investment (11,278) (9,172) property Sales of property, plant, equipment and investment 14 - property PFI lifecycle prepayments - - Investing cash flows of discontinued operations - - Net cash generated from/(used in) investing (11,223) (9,008) activities Cash flows from financing activities Public dividend capital received 251 7 Other interest paid - - PDC dividend paid (1,947) (1,824) Financing cash flows of discontinued operations - - Cash flows from (used in) other financing activities - - Net cash generated from/(used in) financing (1,696) (1,817) activities Increase/(decrease) in cash and cash equivalents (6,592) 4,575 Cash and cash equivalents at 1 April 56,436 51,861 Cash and cash equivalents at start of period for - - new FTs Cash and cash equivalents transferred under absorption 34 - - accounting Cash and cash equivalents at 31 March 25 49,844 56,436

Annual Report 2014/15 Page 103 Notes to the Accounts

Note 1: Accounting policies and other information

1.1 Basis of preparation Monitor has directed the financial statements of NHS foundation trusts shall meet the accounting requirements of the FT ARM which shall be agreed with HM Treasury. Consequently, the following financial statements have been prepared in accordance with the FT ARM 2014/15 issued by Monitor. The accounting policies contained in that manual follow IFRS and HM Treasury’s FReM to the extent they are meaningful and appropriate to NHS foundation trusts. The accounting policies have been applied consistently in dealing with items considered material in relation to the accounts.

1.1.1 Accounting convention These accounts have been prepared under the historical cost convention modified to account for the revaluation of property, plant and equipment, intangible assets, inventories and certain financial assets and financial liabilities.

1.1.2 Going concern These accounts have been prepared on a going concern basis.

International Accounting Standard (IAS) 1, requires management to assess, as part of the accounts preparation process, the NHS Foundation Trust’s ability to continue as a going concern. At the Board meeting held on 30th March 2015, the Board ratified the Trust’s ability to continue on a going concern basis. As a consequence the financial statements have been prepared on a going concern basis.

1.1.3 Consolidation 1.1.3.1 Subsidiaries, Associates and Joint Ventures In considering IAS 27 (revised) the Trust is not required to produce consolidated accounts as it has no Subsidiaries (IFRS 10) , Associates (IAS 28), and Joint Venture Arrangements (IFRS 11).

1.1.3.2 Charitable Funds From 2013-14, under the provisions of IAS 27 Consolidated and Separate Financial Statements, those Charitable Funds that fall under common control with NHS bodies should be considered for consolidation within the entities’ Returns.

The Trust Board reviewed the charitable funds in March 2014 and again in 2015 and determined them not to be material and therefore not to be accounted for as a subsidiary. (reference IAS 8 ‘Accounting requirements need not be applied to immaterial items).

Note 1.2 Income Income in respect of services provided is recognised when, and to the extent that, performance occurs and is measured at the fair value of the consideration receivable. The main source of income for the trust is contracts with commissioners in respect of health care services.

Page 104 Greater Manchester West Mental Health NHS Foundation Trust Where income is received for a specific activity which is to be delivered in a subsequent financial year, that income is deferred.

Income from the sale of non-current assets is recognised only when all material conditions of sale have been met, and is measured as the sums due under the sale contract.

Note 1.3 Expenditure on employee benefits 1.3.1 Short-term employee benefits Salaries, wages and employment-related payments are recognised in the period in which the service is received from employees. The cost of annual leave entitlement earned but not taken by employees at the end of the period is recognised in the financial statements to the extent that employees are permitted to carry-forward leave into the following period.

1.3.2 Pension costs 1.3.2.1 NHS Pension Scheme Past and present employees are covered by the provisions of the NHS Pension Scheme. The scheme is an unfunded, defined benefit scheme that covers NHS employers, general practices and other bodies, allowed under the direction of Secretary of State, in England and Wales. It is not possible for the NHS foundation trust to identify its share of the underlying scheme liabilities. Therefore, the scheme is accounted for as a defined contribution scheme.

Employers pension cost contributions are charged to operating expenses as and when they become due.

Additional pension liabilities arising from early retirements are not funded by the scheme except where the retirement is due to ill-health. The full amount of the liability for the additional costs is charged to the operating expenses at the time the trust commits itself to the retirement, regardless of the method of payment..

1.3.2.2 National Employment Savings Pension Scheme (NEST) Under the Pensions Act 2008 employers must offer a pension scheme to all its employees. As from the 1st July 2013, when the scheme came into operation in the Trust (its staging date), staff who are not eligible to join the NHS Pensions Scheme are automatically enrolled into NEST. This scheme is a defined contribution pension scheme created as part of the government’s workplace pensions reforms.

Accounting for defined contribution plans requires the Trust to report on the amounts contributed for that period. Consequently, no actuarial assumptions are required to measure the obligation for the expense and there is no possibility of any actuarial gain or loss. The Trust settles its obligations within the annual reporting period in which the employees render the related service. Please refer to Note 7.3.7 for further details of the pension scheme.

Note 1.4 Expenditure on other goods and services Expenditure on goods and services is recognised when, and to the extent that they have been received, and is measured at the fair value of those goods and services. Expenditure is recognised in operating expenses except where it results in the creation of a non- current asset such as property, plant and equipment.

Annual Report 2014/15 Page 105 Note 1.5 Property, plant and equipment 1.5.1 Recognition Property, Plant and Equipment is capitalised where: • it is held for use in delivering services or for administrative purposes; • it is probable that future economic benefits will flow to, or service potential be provided to, the Trust; • it is expected to be used for more than one financial year; and • the cost of the item can be measured reliably • items form part of the initial equipping and setting-up cost of a new building, ward or unit, irrespective of their individual or collective cost Where a large asset, for example a building, includes a number of components with significantly different asset lives e.g. plant and equipment, then these components are treated as separate assets and depreciated over their own useful economic lives.

(see Note 15.1).

1.5.2 Measurement 1.5.2.1 Valuation All property, plant and equipment assets are measured initially at cost, representing the costs directly attributable to acquiring or constructing the asset and bringing it to the location and condition necessary for it to be capable of operating in the manner intended by management.

All assets are measured subsequently at fair value.

Land and buildings are stated in the statement of financial position at their revalued amounts as at 31st March 2013. Revaluations are performed with sufficient regularity to ensure that carrying amounts are not materially different from those that would be determined at the end of the reporting period. Fair values are determined as follows:

(i) Land and non-specialised buildings – market value for existing use (ii) Specialised buildings – depreciated replacement cost using a Modern Equivalent Asset Valuation

IAS16 (34) requires that the accounts reflect changes in asset values. Where insignificant, revaluation may be necessary only every 3 or 5 years. In Monitor’s view property assets are likely to require a full revaluation at least every 5 years, with which the Trust complies.

Monitor’s Financial Reporting Manual states (5.5 2014/15 FReM) : ‘There is no pre- determined frequency with which assets must be re-valued. Instead, the standard requires that asset values should be kept up to date and that the frequency of revaluation will need to reflect the volatility of asset values. Where assets are subject to significant volatility, then annual revaluations may be required. Conversely, where changes in asset values are insignificant then a revaluation may be necessary only every 3 or 5 years. In Monitor’s view, property assets are likely to require revaluation at least every 5 years.’

The Trust has complied with these recommendation and its latest desk top review was carried out in 2013/14.

The Trust’s most recent full revaluation took place on 31st March 2013.

Properties in the course of construction are carried at cost. Cost includes professional fees but not borrowing costs, which are recognised as expenses immediately, as allowed by IAS 23 for assets held at fair value.

Page 106 Greater Manchester West Mental Health NHS Foundation Trust For newly acquired or newly constructed assets, a formal revaluation will only be carried out if there is an indication that the initial cost is significantly different to its fair value. Depreciation commences when assets are brought into use, starting from the first complete accounting quarter.

The carrying amount for fixtures and equipment is depreciated at historic cost as this is not considered to be materially different from fair value.

An increase arising on revaluation is taken to the revaluation reserve except when it reverses an impairment for the same asset previously recognised in expenditure in which case it is credited to the SOCI. A revaluation decrease that does not result from a loss of economic value or services potential is recognised as an impairment charge to the revaluation reserve to the extent there is a balance on the reserve for the asset and, thereafter, to expenditure.

Impairment losses that arise from a clear consumption of economic benefit have been taken to the SOCI.

Gains and losses recognised in the revaluation reserve are reported as other comprehensive income in the SOCI.

1.5.2.2 Subsequent expenditure Subsequent expenditure relating to an item of property, plant and equipment is recognised as an increase in the carrying amount of the asset when it is probable that additional future economic benefits or service potential deriving from the cost incurred to replace a component of such item will flow to the enterprise and the cost of the item can be determined reliably. Where a component of an asset is replaced, the cost of the replacement is capitalised if it meets the criteria for recognition above. The carrying amount of the part replaced is de-recognised. Other expenditure that does not generate additional future economic benefits or service potential, such as repairs and maintenance, is charged to the Statement of Comprehensive Income in the period in which it is incurred.

1.5.2.3 Depreciation Items of property, plant and equipment are depreciated over their remaining useful economic lives in a manner consistent with the consumption of economic or service delivery benefits. Freehold land is considered to have an infinite life and is not depreciated.

Property, plant and equipment which has been reclassified as ‘held for sale’ ceases to be depreciated upon the reclassification. Assets in the course of construction and residual interests in off-Statement of Financial Position PFI contract assets are not depreciated until the asset is brought into use or reverts to the trust, respectively.

1.5.3. Revaluation gains and losses Revaluation gains are recognised in the revaluation reserve, except where, and to the extent that, they reverse a revaluation decrease that has previously been recognised in operating expenses, in which case they are recognised in operating income. For newly acquired or newly constructed assets, a desk top revaluation is undertaken to determine the fair value of the asset. A formal revaluation will only be carried out if there is an indication that the initial cost is significantly different to its fair value.

Revaluation losses are charged to the revaluation reserve to the extent that there is an available balance for the asset concerned, and thereafter are charged to operating expenses.

Gains and losses recognised in the revaluation reserve are reported in the Statement of Comprehensive Income as an item of ‘other comprehensive income’.

Annual Report 2014/15 Page 107 1.5.4 Impairments In accordance with the FT ARM, impairments that are due to loss of economic benefits or service potential in the asset are charged to operating expenses. A compensating transfer is made from the revaluation reserve to the income and expenditure reserve of an amount equal to the lower of (i) the impairment charged to operating expenses; and (ii) the balance in the revaluation reserve attributable to that asset before the impairment.

An impairment arising from the loss of economic benefit or service potential is reversed when, and to the extent that, the circumstances that gave rise to the loss is reversed. Reversals are recognised in operating income to the extent that the asset is restored to the carrying amount it would have had if the impairment had never been recognised. Any remaining reversal is recognised in the revaluation reserve. Where, at the time of the original impairment, a transfer was made from the revaluation reserve to the income and expenditure reserve, an amount is transferred back to the revaluation reserve when the impairment reversal is recognised.

Other impairments are treated as revaluation losses. Reversals of ‘other impairments’ are treated as revaluation gains.

Impairments identified by the District Valuer, as a result of the March 2015 review, have been recognised in the accounts.

1.5.5 De-recognition Assets intended for disposal are reclassified as ‘held for sale’ once all of the following criteria are met:

• the asset is available for immediate sale in its present condition subject only to terms which are usual and customary for such sales; • the sale must be highly probable i.e.: o management are committed to a plan to sell the asset; o an active programme has begun to find a buyer and complete the sale; o the asset is being actively marketed at a reasonable price; o the sale is expected to be completed within 12 months of the date of classification as ‘held for sale’; and o the actions needed to complete the plan indicate it is unlikely that the plan will be dropped or significant changes made to it.

Following reclassification, the assets are measured at the lower of their existing carrying amount and their ‘fair value less costs to sell’. Depreciation ceases to be charged. Assets are de-recognised when all material sale contract conditions have been met.

Property, plant and equipment which is to be scrapped or demolished does not qualify for recognition as ‘held for sale’ and instead is retained as an operational asset and the asset’s economic life is adjusted. The asset is de-recognised when scrapping or demolition occurs.

1.5.6 Donated, government grant and other grant funded assets Donated and grant funded property, plant and equipment assets are capitalised at their fair value on receipt. The donation/grant is credited to income at the same time, unless the donor has imposed a condition that the future economic benefits embodied in the grant are to be consumed in a manner specified by the donor, in which case, the donation/grant is deferred within liabilities and is carried forward to future financial years to the extent that the condition has not yet been met.

Page 108 Greater Manchester West Mental Health NHS Foundation Trust The donated and grant funded assets are subsequently accounted for in the same manner as other items of property, plant and equipment.

Note 1.6 Intangible assets Recognition Intangible assets are non-monetary assets without physical substance which are capable of being sold separately from the rest of the trust’s business or which arise from contractual or other legal rights. They are recognised only where it is probable that future economic benefits will flow to, or service potential be provided to, the trust and where the cost of the asset can be measured reliably.

Internally generated intangible assets Internally generated goodwill, brands, mastheads, publishing titles, customer lists and similar items are not capitalised as intangible assets.

Expenditure on research is not capitalised.

Expenditure on development is capitalised only where all of the following can be demonstrated:

• the project is technically feasible to the point of completion and will result in an intangible asset for sale or use; • the trust intends to complete the asset and sell or use it; • the trust has the ability to sell or use the asset; • how the intangible asset will generate probable future economic or service delivery benefits, eg, the presence of a market for it or its output, or where it is to be used for internal use, the usefulness of the asset; • adequate financial, technical and other resources are available to the trust to complete the development and sell or use the asset; and • the trust can measure reliably the expenses attributable to the asset during development.

Software Software which is integral to the operation of hardware, eg an operating system, is capitalised as part of the relevant item of property, plant and equipment. Software which is not integral to the operation of hardware, eg application software, is capitalised as an intangible asset.

Measurement Intangible assets are recognised initially at cost, comprising all directly attributable costs needed to create, produce and prepare the asset to the point that it is capable of operating in the manner intended by management.

Subsequently intangible assets are measured at fair value. Revaluations gains and losses and impairments are treated in the same manner as for property, plant and equipment

Intangible assets held for sale are measured at the lower of their carrying amount or “fair value less costs to sell”.

Amortisation Intangible assets are amortised over their expected useful economic lives in a manner consistent with the consumption of economic or service delivery benefits.

Annual Report 2014/15 Page 109 Useful economic life of intangible assets Useful economic lives reflect the total life of an asset and not the remaining life of an asset. The range of useful economic lives are shown in the table below:

Min life Max life Intangible assets – purchased Years Years Software 2 5

Note 1.7 Revenue government and other grants Government grants are grants from Government bodies other than income from commissioners or NHS trusts for the provision of services. Where a grant is used to fund revenue expenditure it is taken to the Statement of Comprehensive Income to match that expenditure. The Trust has not received any such grants in 2014/15.

Note 1.8 Inventories The value of stocks and works in progress are deemed to be immaterial to the accounts when consideration is given to the costs of collation and verification, this is in line with Financial Reporting Standard 18 (Page 3 {c}) and IAS 1 Presentation of Financial Statements which states that specific disclosure requirements set out in individual standards or interpretations need not be satisfied if the information is not material. The Standard also states (at paragraph 44) ‘the benefits derived from information should exceed the cost of providing it’.

Note 1.9 Financial instruments and financial liabilities 1.9.1 Recognition Financial assets and financial liabilities which arise from contracts for the purchase or sale of non-financial items (such as goods or services), which are entered into in accordance with the trust’s normal purchase, sale or usage requirements, are recognised when, and to the extent which, performance occurs, i.e., when receipt or delivery of the goods or services is made.

All other financial assets and financial liabilities are recognised when the trust becomes a party to the contractual provisions of the instrument.

1.9.2 De-recognition All financial assets are de-recognised when the rights to receive cash flows from the assets have expired or the trust has transferred substantially all of the risks and rewards of ownership.

Financial liabilities are de-recognised when the obligation is discharged, cancelled or expires.

1.9.3 Classification and measurement Financial assets are categorised as loans and receivables

Financial liabilities are classified as” ‘other financial liabilities”.

Page 110 Greater Manchester West Mental Health NHS Foundation Trust 1.9.4 Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments which are not quoted in an active market. They are included in current assets.

The trust’s loans and receivables comprise: cash and cash equivalents, NHS receivables, accrued income and “other receivables”.

Loans and receivables are recognised initially at fair value, net of transactions costs, and are measured subsequently at amortised cost, using the effective interest method. The effective interest rate is the rate that discounts exactly estimated future cash receipts through the expected life of the financial asset or, when appropriate, a shorter period, to the net carrying amount of the financial asset.

Interest on loans and receivables is calculated using the effective interest method and credited to the Statement of Comprehensive Income.

1.9.5 Available-for-sale financial assets The Trust does not hold any available-for-sale financial assets. Available-for-sale financial assets are non-derivative financial assets which are either designated in this category or not classified in any of the other categories. They are included in long-term assets unless the trust intends to dispose of them within 12 months of the Statement of Financial Position date.

1.9.6 Other financial liabilities All other financial liabilities are recognised initially at fair value, net of transaction costs incurred, and measured subsequently at amortised cost using the effective interest method. The effective interest rate is the rate that discounts exactly estimated future cash payments through the expected life of the financial liability or, when appropriate, a shorter period, to the net carrying amount of the financial liability.

They are included in current liabilities except for amounts payable more than 12 months after the Statement of Financial Position date, which are classified as long-term liabilities.

Interest on financial liabilities carried at amortised cost is calculated using the effective interest method and charged to finance costs. Interest on financial liabilities taken out to finance property, plant and equipment or intangible assets is not capitalised as part of the cost of those assets.

1.9.7 Determination of fair value For financial assets and financial liabilities carried at fair value, the carrying amounts are determined from quoted market prices, independent appraisals and discounted cash flow analysis as appropriate to the financial asset or liability. The provision for Injury Benefit liability cash flows are discounted remain at the Treasury’s discount rate of 1.3% 2014/15 (2013/14 1.8%).

1.9.8 Impairment of financial assets At the Statement of Financial Position date, the Trust assesses whether any financial assets are impaired. Financial assets are impaired and impairment losses are recognised if, and only if, there is objective evidence of impairment as a result of one or more events which occurred after the initial recognition of the asset and which has an impact on the estimated future cash flows of the asset.

For financial assets carried at amortised cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of the revised future cash flows discounted at the asset’s original effective interest rate. The loss is recognised in the SOCI and in the case of trade receivables, the carrying amount of

Annual Report 2014/15 Page 111 the asset is reduced through the use of an allowance for irrecoverable amounts, and for other financial assets the carrying amount is reduced directly.

Note 1.10 Leases 1.10.1 Finance leases The Trust has no Finance leases as at the 31 March 2015..

1.10.2 Operating leases Other leases are regarded as operating leases and the rentals are charged to operating expenses on a straight-line basis over the term of the lease. Operating lease incentives received are added to the lease rentals and charged to operating expenses over the life of the lease.

1.10.3 Leases of land and buildings Where a lease is for land and buildings, the land component is separated from the building component and the classification for each is assessed separately.

Note 1.11 Provisions The Trust recognises a provision where it has a present legal or constructive obligation of uncertain timing or amount; for which it is probable that there will be a future outflow of cash or other resources; and a reliable estimate can be made of the amount. The amount recognised in the Statement of Financial Position is the best estimate of the resources required to settle the obligation. Where the effect of the time value of money is significant, the estimated risk-adjusted cash flows are discounted using the discount rates published and mandated by HM Treasury. For employee early departure obligations the Trust has used the HM Treasury’s pension discount rate of 1.3% 2014/15 (2013/14 1.8%) in real terms.

A restructuring provision is recognised when the Trust has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring and not associated with ongoing activities of the entity.

1.11.1 Clinical negligence costs The NHS Litigation Authority (NHSLA) operates a risk pooling scheme under which the NHS foundation trust pays an annual contribution to the NHSLA, which, in return, settles all clinical negligence claims. Although the NHSLA is administratively responsible for all clinical negligence cases, the legal liability remains with the NHS foundation trust. The total value of clinical negligence provisions carried by the NHSLA on behalf of the NHS foundation trust is disclosed at note 29 but is not recognised in the Trust’s accounts.

1.11.2 Non-clinical risk pooling The NHS foundation trust participates in the Property Expenses Scheme and the Liabilities to Third Parties Scheme. Both are risk pooling schemes under which the trust pays an annual contribution to the NHS Litigation Authority and in return receives assistance with the costs of claims arising. The annual membership contributions, and any “excesses” payable in respect of particular claims are charged to operating expenses when the liability arises.

Page 112 Greater Manchester West Mental Health NHS Foundation Trust Note 1.12 Contingencies Contingent assets (that is, assets arising from past events whose existence will only be confirmed by one or more future events not wholly within the entity’s control) are not recognised as assets, but are disclosed in note 29 where an inflow of economic benefits is probable.

Contingent liabilities are not recognised, but are disclosed in note 29, unless the probability of a transfer of economic benefits is remote.

Contingent liabilities are defined as:

• possible obligations arising from past events whose existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within the entity’s control; or • present obligations arising from past events but for which it is not probable that a transfer of economic benefits will arise or for which the amount of the obligation cannot be measured with sufficient reliability.

Note 1.13 Public dividend capital Public dividend capital (PDC) is a type of public sector equity finance based on the excess of assets over liabilities at the time of establishment of the predecessor NHS trust. HM Treasury has determined that PDC is not a financial instrument within the meaning of IAS 32.

A charge, reflecting the cost of capital utilised by the NHS foundation trust, is payable as public dividend capital dividend. The charge is calculated at the rate set by HM Treasury (currently 3.5%) on the average relevant net assets of the NHS foundation trust during the financial year. Relevant net assets are calculated as the value of all assets less the value of all liabilities, except for (i) donated assets (including lottery funded assets), (ii) average daily cash balances held with the Government Banking Services (GBS) and National Loans Fund (NLF) deposits, excluding cash balances held in GBS accounts that relate to a short- term working capital facility, and (iii) any PDC dividend balance receivable or payable. In accordance with the requirements laid down by the Department of Health (as the issuer of PDC), the dividend for the year is calculated on the actual average relevant net assets as set out in the “pre-audit” version of the annual accounts. The dividend thus calculated is not revised should any adjustment to net assets occur as a result the audit of the annual accounts.

Note 1.14 Value added tax Most of the activities of the NHS foundation trust are outside the scope of VAT and, in general, output tax does not apply and input tax on purchases is not recoverable. Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase cost of fixed assets. Where output tax is charged or input VAT is recoverable, the amounts are stated net of VAT.

Note 1.15 Corporation tax For 2014/15 there is to be no application of Corporation Tax liability. The Trust is a Health Service body within the meaning of s519A ICTA 1988 and accordingly is exempt from taxation in respect of income and capital gains within categories covered by this. There is a power for the Treasury to withdraw the exemption in relation to the specified activities

Annual Report 2014/15 Page 113 of a Foundation Trust (s519A (3) to (8) ICTA 1988). Accordingly, the Trust is potentially within the scope of Corporation Tax in respect of activities which are not related to, or ancillary to, the provision of healthcare and where the profits there from exceed £50,000 pa, of which the Trust has none.

Note 1.16 Foreign exchange The Trust has only minimal foreign exchange transactions. Transactions that are denominated in a foreign currency are translated into sterling at the exchange rate ruling on the date of the transaction. Resulting exchange gains and losses are taken to the Income and Expenditure account. All sales of healthcare services are denominated in sterling

Note 1.17 Third party assets Assets belonging to third parties (such as money held on behalf of patients) are not recognised in the accounts since the NHS foundation trust has no beneficial interest in them. However, they are disclosed in a separate note to the accounts in accordance with the requirements of HM Treasury’s FReM.

Note 1.18 Losses and special payments Losses and special payments are items that Parliament would not have contemplated when it agreed funds for the health service or passed legislation. By their nature they are items that ideally should not arise. They are therefore subject to special control procedures compared with the generality of payments. They are divided into different categories, which govern the way that individual cases are handled. Losses and special payments are charged to the relevant functional headings in expenditure on an accruals basis, including losses which would have been made good through insurance cover had NHS foundation trusts not been bearing their own risks (with insurance premiums then being included as normal revenue expenditure).

However the losses and special payments note is compiled directly from the losses and compensations register which reports on an accrual basis with the exception of provisions for future losses. Losses and special payments are disclosed in Note 33.

Note 1.19 Transfers of functions to / from other NHS bodies / local government bodies The Trust had no transfers of function from other NHS Bodies in 2014/15. Property was transferred to the Trust on 1 April 2013. The Cost and Accumulated Depreciation/ Amortisation balances from the transferring entity’s accounts were preserved on recognition in the Trust’s accounts.

Note 1.20 Early adoption of standards, amendments and interpretations No new accounting standards or revisions to existing standards have been early adopted in 2014/15.

Page 114 Greater Manchester West Mental Health NHS Foundation Trust Note 1.21 Standards, amendments and interpretations in issue but not yet effective or adopted

The Treasury FReM does not require the following Standards and Interpretations to be applied in 2014-15. The application of the Standards as revised would not have a material impact on the accounts for 2014-15, were they applied in that year:

IFRS 9 - Financial Instruments IFRS 9 - Financial Instruments - Subject to IFRS 13 - Fair Value - Effective from 1 April 2015 consultation.

IFRS 15 - Revenue for Contract with Customers - Effective from 1 January 2017

IAS 19 (amendment) - Employer contributions to defined benefit pension schemes - Effective from 2015-16 but not yet EU adopted

IAS 36 (amendment) - Recoverable Amount Disclosures - To be adopted from 2015-16 (aligned to IFRS 13 adoption)

IFRIC 21 - Levies - EU adopted in June 2014 but not yet adopted by HM Treasury Note 1.22 Critical accounting estimates and judgements In the application of the Trust’s accounting policies, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The Trust confirms that it has not used any key assumptions concerning the future or had any key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year that need to be disclosed under IAS 1.

The provisions have been calculated having recognised an obligating event during the year and include estimates and assumptions relating to the carrying amounts and timing of anticipated payments.

Other less significant areas of judgement and estimation techniques (e.g. depreciation and deferred income) have been disclosed in the Trust’s accounting policies and in the notes to the financial statements, as required by the relevant IFRS.

Note 1.23 Current Asset Investments Current Asset investments are short-term deposits which are readily convertible into known amounts of cash at or close to their carrying amounts. They are treated as liquid resources in the cashflow statement.

Note 1.24 Cash and Cash Equivalents Cash is cash in hand, and deposit with any financial institution repayable without penalty on notice of not more than 24 hours. Cash equivalents are investments that mature in 3 months or less from the date of acquisition and are readily convertible to known amounts of cash with insignificant of change in value.

Cash, bank and overdrafts are recorded at the current values of these balances in the Trust’s cash book.

Annual Report 2014/15 Page 115 These balances exclude monies held in the Trust bank account belonging to third parties (see third party assets 25.1). Account balances are only set-off where a formal agreement has been made with the bank to do so. Interest earned on bank accounts is recorded as “interest receivable” in the period to which it relates. Bank charges are recorded as operating expenditure in the period to which they relate.

Note 1.25 Research and development Expenditure on research and development is not capitalised.

Note 1.26 Acquisitions and discontinued operations The Trust has no acquisitions or discontinued operations to report on. Activities are considered to be ‘acquired’ only if they are taken from outside the public sector. Activities are considered to be ‘discontinued’ only if they cease entirely. They are not considered to be ‘discontinued’ if they transfer from one public sector body to another.

Note 2: Operating Segments

All of GMW’s activities are in the provision of healthcare, which is an aggregate of all the individual specialty components included therein. Similarly, the large majority of the Foundation Trust’s income originates with the UK Whole of Government Accounting (WGA) bodies. The majority of expenses incurred are payroll expenditure on staff involved in the production or support of healthcare activities generally across the Trust together with the related supplies and overheads needed to establish this production. The business activities which earn revenue and incur expenses are therefore of one broad combined nature and therefore on this basis one segment of Healthcare is deemed appropriate.

The operating results of the Foundation Trust are reviewed monthly or more frequently by the Trust’s chief operating decision maker which is the overall Foundation Trust Board and which includes senior professional non-executive directors. The Trust Board review the financial position of the Foundation Trust as a whole in their decision making process, rather than individual components included in the totals, in terms of allocating resources. This process again implies a single operating segment under IFRS 8.

The finance report considered monthly by the Trust Board contains summary figures for the whole Trust together with graphical line and bar charts relating to different total income activity levels, and directorate expense budgets with their cost improvement positions. Similarly only total balance sheet positions and cash flow forecasts are considered for the whole Foundation Trust. The Board as chief operating decision maker therefore only considers one segment of healthcare in its decision making process.

The single segment of ‘Healthcare’ has therefore been identified consistent with the core principle of IFRS8 which is to enable users of the financial statements to evaluate the nature and financial effects of business activities and economic environments.”

Page 116 Greater Manchester West Mental Health NHS Foundation Trust Note 3: Operating Income

Note 3.1 Income from patient care activities (by nature)

2014/15 2013/14 £000 £000 Mental health services Cost and volume contract income 4,268 3,192 Block contract income 111,502 103,275 Clinical income for the secondary commissioning of mandatory 2,282 3,984 services Other clinical income from mandatory services 33,221 32,195 Other clinical income* 1,858 3,397 Total income from activities 153,131 146,043 * Other clinical income for 2014/15 relates to funding received from our Lead Commissioners for service developments outside the contract. 2013/14 has been restated from £3,038k to £3,397K as income previously classed as non clinical has been reclassified as clinical income.

Note 3.2 Income from patient care activities (by source)

Income from patient care activities received from: 2014/15 2013/14 £000 £000 CCGs and NHS England 128,619 123,556 Local authorities 21,575 20,020 NHS other 1,430 978 Non NHS: other 1,507 1,489 Total income from activities 153,131 146,043 Of which: Related to continuing operations 153,131 146,043 Related to discontinued operations - - Total income from activities includes income of £153,131 2014/15 (2013/14 £146,043 ) from Commissioner Requested Services

Note 3.3 Overseas visitors (relating to patients charged directly by the NHS foundation trust) The only overseas activities are in respect of reciprocal EU treatments generating no income.

Annual Report 2014/15 Page 117 Note 4: Other operating income

2014/15 2013/14 £000 £000 Research and development 2,922 2,447 Education and training 4,240 5,490 Profit on disposal of non-current assets 1 - Reversal of impairments - 19 Rental revenue from operating leases 323 311 Income in respect of staff costs where accounted on gross basis - 211 Other income* 5,921 3,066 Total other operating income 13,407 11,544 Of which: Related to continuing operations 13,407 11,544 Related to discontinued operations - - *Other Operating Income for 2013/14 has been restated from £3,425k to £3,066k as income from the provision of clinical services at Recovery First were incorrectly classified as non clinical income in 2013/14.

Other Operating Income 2014/15 2013/14 £000 £000 Car parking 202 165 Clinical excellence awards 60 62 Catering 153 153 Property Rentals 618 317 Council grant 0 239 VAT reclaims 155 438 Release of deferred income * 3,518 988 Other ** 1,215 704 5,921 3,066

* Relates to the release of deferred income to match expenditure spent on Low and Medium Secure wards and the Recovery Academy. ** Relates to increase in ECT income, Interpreter fees and Court report income.

Note 4.1 Income from activities arising from commissioner requested services Under the terms of its Provider License, the trust is required to analyse the level of income from activities that has arisen from commissioner requested and non-commissioner requested services. Commissioner requested services are defined in the provider license and are services that commissioners believe would need to be protected in the event of provider failure. This information is provided in the table below:

2014/15 2013/14 £000 £000 Income from services designated (or grandfathered) as 153,131 146,043 commissioner requested services Income from services not designated as commissioner requested 13,407 11,544 services Total 166,538 157,587

Page 118 Greater Manchester West Mental Health NHS Foundation Trust Note 4.2 Profits and losses on disposal of property, plant and equipment There were no disposals of land and buildings during the year.

Note 5: Operating expenses

Note 5.1 Operating expenses

2014/15 2013/14 £000 £000 Services from NHS foundation trusts 1,043 460 Services from NHS trusts - 83 Purchase of healthcare from non NHS bodies 4,684 4,883 Purchase of social care 528 578 Employee expenses - executive directors 1,037 1,023 Employee expenses - non-executive directors 133 136 Employee expenses - staff 114,542 109,119 Supplies and services - clinical 3,098 2,975 Supplies and services - general 2,871 3,043 Establishment 2,125 1,708 Research and development 2,855 1,451 Transport 1,521 1,670 Premises 9,400 9,454 Increase/(decrease) in provision for impairment of receivables* 486 (189) Change in provisions discount rate(s) 81 358 Drug costs 2,453 2,481 Inventories consumed - - Rentals under operating leases 1,172 967 Depreciation on property, plant and equipment 3,226 2,713 Impairments 885 1,845 Audit fees payable to the external auditor audit services- statutory audit 51 47 audit services- regulatory reporting (external auditor only) 14 16 other auditor remuneration (external auditor only) 9 9 Clinical negligence 357 492 Legal fees 496 559 Consultancy costs 200 168 Training, courses and conferences 957 1,382 Patient travel 3 3 Car parking & security 84 234 Redundancy *** 78 215 Early retirements - 136 Hospitality 29 9 Publishing 75 88 Insurance 25 18 Other services, e.g. external payroll 194 194

Annual Report 2014/15 Page 119 Grossing up consortium arrangements - - Losses, ex gratia & special payments 123 78 Other ** 1,617 772 Total 156,452 149,178 Of which: Related to continuing operations 156,452 149,178 Related to discontinued operations - -

* Refer to note 23.1 for analysis in the movement of the provision for doubtful debts

** Other expenses has increased in year as a result of the costs incurred for the implementation of the new Patient administration system

***The termination benefits for 2013/14 included a provision for redundancy for the implementation of the Acute Care Pathways (ACP) and other restructuring costs. The ACP redundancies have been charged against provisions in year, thus reducing the termination benefits charged against employee expenses.

Note 5.2 Other auditor remuneration

2014/15 2013/14 £000 £000 Other auditor remuneration paid to the external auditor: Audit-related assurance services 8 9 All taxation advisory services not falling within item 3 above 1 - Total 9 9

Note 5.3 Limitation on auditor’s liability The limitation on auditors’ liability for external audit work is £1m (2013/14: £1m).

Note 6: Impairment of assets

2014/15 2013/14 £000 £000 Net impairments charged to operating surplus / deficit resulting from: Abandonment of assets in course of construction 159 - Changes in market price 726 1,826 Total net impairments charged to operating surplus / deficit 885 1,826 Impairments charged to the revaluation reserve - - Total net impairments 885 1,826

A valuation of capital builds completed during the year was undertaken by the District Valuer in February 2015, this resulted in impairments of £726k.

Page 120 Greater Manchester West Mental Health NHS Foundation Trust Note 7: Employee benefits

2014/15 2013/14 Permanent Other Total Total £000 £000 £000 £000 Salaries and wages 91,508 8,632 100,140 97,877 Social security costs 7,234 602 7,836 7,190 Employer’s contributions to NHS 11,969 996 12,965 11,899 pensions Pension cost - other - - - 2 Other post employment benefits - - - - Other employment benefits - - - - Termination benefits* 78 - 78 351 Agency/contract staff - 6,904 6,904 5,543 Total gross staff costs 110,789 17,134 127,923 122,862 Recoveries in respect of seconded (2,152) (8,853) (11,005) (11,108) staff Total staff costs 108,637 8,281 116,918 111,754 Included within: Costs capitalised as part of assets 245 - 245 224

* The termination benefits for 2013/14 included a provision for redundancy for the implementation of the Acute Care Pathways (ACP) and other restructuring costs. The ACP redundancies have been charged against provisions in year, thus reducing the termination benefits charged against employee expenses.

Note 7.1 Average number of employees (WTE basis)

2014/15 2013/14 Permanent Other Total Total Number Number Number Number Medical and dental 138 8 146 147 Ambulance staff - - - - Administration and estates 523 - 523 498 Healthcare assistants and other 121 - 121 125 support staff Nursing, midwifery and health 1,274 2 1,276 1,289 visiting staff Scientific, therapeutic and 352 - 352 350 technical staff Social care staff 173 6 179 166 Agency and contract staff - 104 104 77 Bank staff - 163 163 173 Other 124 10 134 132 Total average numbers 2,705 293 2,998 2,957 Of which: Number of employees (WTE) 4 - 4 4 engaged on capital projects

Annual Report 2014/15 Page 121 Note 7.2 Retirements due to ill-health During 2014/15 there were 4 early retirements from the trust agreed on the grounds of ill-health (7 in the year ended 31 March 2014). The estimated additional pension liabilities of these ill-health retirements is £415k (£573k in 2013/14).

The cost of these ill-health retirements will be borne by the NHS Business Services Authority - Pensions Division.

Note 7.3 Staff sickness absence

2014/15 2013/14 Number Number Total days lost 38,633 39,111 Total staff years 2,646 2,631 Average working days lost (per WTE) 15 15

Note 7.4 Reporting of compensation schemes - exit packages 2014/15

Number of Number Total number compulsory of other of exit redundancies departures packages agreed Number Number Number Exit package cost band (including any special payment element) <£10,000 - 1 1 £10,001 - £25,000 1 4 5 £25,001 - 50,000 - 9 9 £50,001 - £100,000 1 2 3 £100,001 - £150,000 - - - £150,001 - £200,000 - 1 1 >£200,000 - - - Total number of exit packages by type 2 17 19 Total resource cost (£) £71,000 £678,000 £749,000

Page 122 Greater Manchester West Mental Health NHS Foundation Trust Note 7.5 Reporting of compensation schemes - exit packages 2013/14

Number of Number Total number compulsory of other of exit redundancies departures packages agreed Number Number Number Exit package cost band (including any special payment element) <£10,000 1 1 2 £10,001 - £25,000 1 2 3 £25,001 - 50,000 1 3 4 £50,001 - £100,000 1 - 1 Total number of exit packages by type 4 6 10 Total resource cost (£) £99,000 £137,000 £236,000

The exit packages within the scope of this disclosure have arisen as a result of Organisational restructures. The exit packages within the scope of this disclosure include, but are not limited to, those made under nationally agreed arrangements or local arrangements for which Treasury approval was required. Exit packages in respect of senior managers have been disclosed in the Director’s Remuneration Report Exit costs in this note are accounted for in full as agreed in the year, irrespective of the actual date of accrual or payment. Where the trust has agreed early retirements, the additional costs are met by the trust and not by the NHS Pensions scheme. Ill health retirement costs are met by the NHS pensions scheme and are not included in the above table (refer to note 8).

Note 7.6 Voluntary Redundancies

Payments Total Payments Total agreed value of agreed value of agreements agreements Number £000 Number £000 Voluntary redundancies 17 677 6 136 including early retirement contractual costs Contractual payments in lieu 2 1 2 1 of notice Total 19 678 8 137

Note 7.7 Directors’ remuneration

The aggregate amounts payable to directors were: 2014/15 2013/14 £000 £000 Salary 966,254 954,163 Taxable benefits 16,835 15,212 Employer’s pension contributions 116,235 115,133 Total 1,099,324 1,084,508

Further details of directors’ remuneration can be found in the remuneration report.

Annual Report 2014/15 Page 123 Note 7.8 Off Payroll Engagements Note 7.8.1 For all off-payroll engagements as of 31 March 2015, for more than £220 per day and lasting for longer than six months

2014/15 Number of existing engagements 4 Of which; Number that have existed for less than one year at the time of reporting 1 Number that have existed for between one and two years at the time of reporting 3

All existing off-payroll engagements, outlined above, have been subject to a risk based assessment as to whether assurance is required that the individual is paying the right amount of tax, and, where necessary, that assurance has been sought.

Note 7.8.2 For all new off-payroll engagements, or those that reached six months in duration, between 01 April 2014 and 31 March 2015, for more than £220 per day and lasting for longer than six months.

2014/15 Number of new engagements, or those that reach six months in duration between 1 01 April 2014 and 31 March 2015 Number of the above which include contractual clauses giving the Trust the right to 1 request assurance in relation to income tax and national insurance obligations. Number for whom assurance has been requested 1 Of which; Number for whom assurance has been received 1

Note7.8.3 For any off-payroll engagements, of board members, and/or senior officials with significant financial responsibility, between 01April 2014 and 31 March 2015.

2014/15 Number of individuals that have been deemed ‘board members, and/or senior 0 officials with significant financial responsibility’. Includes off-payroll and on-payroll engagements.

Note 8: Pension costs

Note 8.1 NHS Pension Scheme

8.1.1 Unfunded, defined benefit scheme Past and present employees are covered by the provisions of the NHS Pensions Scheme. Details of the benefits payable under these provisions can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. The scheme is an unfunded, defined benefit scheme that covers NHS employers, GP Practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined

Page 124 Greater Manchester West Mental Health NHS Foundation Trust contribution scheme: the cost to the NHS Body of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period.

In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”.

8.1.2 Accounting valuation A valuation of the scheme liability is carried out annually by the scheme actuary as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and are accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2015, is based on valuation data as 31 March 2014, updated to 31 March 2015 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used. The latest assessment of the liabilities of the scheme is contained in the scheme actuary report, which forms part of the annual NHS Pension Scheme (England and Wales) Pension Accounts, published annually. These accounts can be viewed on the NHS Pensions website. Copies can also be obtained from The Stationery Office.

8.1.3 Full actuarial (funding) valuation The purpose of this valuation is to assess the level of liability in respect of the benefits due under the scheme (taking into account its recent demographic experience), and to recommend the contribution rates. The last published actuarial valuation undertaken for the NHS Pension Scheme was completed for the year ending 31 March 2012.

The Scheme Regulations allow contribution rates to be set by the Secretary of State for Health, with the consent of HM Treasury, and consideration of the advice of the Scheme Actuary and appropriate employee and employer representatives as deemed appropriate.

8.1.4 Scheme provisions The NHS Pension Scheme provided defined benefits, which are summarised below. This list is an illustrative guide only, and is not intended to detail all the benefits provided by the Scheme or the specific conditions that must be met before these benefits can be obtained:

The Scheme is a “final salary” scheme. Annual pensions are normally based on 1/80th for the 1995 section and of the best of the last three years pensionable pay for each year of service, and 1/60th for the 2008 section of reckonable pay per year of membership. Members who are practitioners as defined by the Scheme Regulations have their annual pensions based upon total pensionable earnings over the relevant pensionable service.

With effect from 1 April 2008 members can choose to give up some of their annual pension for an additional tax free lump sum, up to a maximum amount permitted under HMRC rules. This new provision is known as “pension commutation”.

Annual increases are applied to pension payments at rates defined by the Pensions (Increase) Act 1971, and are based on changes in retail prices in the twelve months ending 30 September in the previous calendar year. From 2011-12 the Consumer Price Index (CPI) has been used and replaced the Retail Prices Index (RPI).

Early payment of a pension, with enhancement, is available to members of the scheme who are permanently incapable of fulfilling their duties effectively through illness or infirmity. A death gratuity of twice final year’s pensionable pay for death in service, and

Annual Report 2014/15 Page 125 five times their annual pension for death after retirement is payable.

For early retirements other than those due to ill health the additional pension liabilities are not funded by the scheme. The full amount of the liability for the additional costs is charged to the employer.

Members can purchase additional service in the NHS scheme and contribute to money purchase AVCs run by the Scheme’s approved providers or by other Free Standing Additional Voluntary Contributions (FSAVC) providers.

8.2 National Employment Savings Pension Scheme (NEST). Under the Pensions Act 2008 employers must offer a pension scheme to all its employees. As from the 1st July 2013 when the scheme came into operation in the trust (its staging date), staff who are not eligible to join the NHS Pension Scheme are automatically enrolled into NEST. The scheme is a defined contribution pension scheme. Under a defined contribution plan, an entity pays fixed contributions to a separate entity (a fund) and has no obligation to pay further contributions if the fund does not hold sufficient assets to pay employee benefits.

Contributions payable to a defined contribution plan are recognised as an expense as the employee provides services in exchange for the contribution. The trust contributes 1% of their pensionable pay. The total contribution by the trust for 2014/15 has been fully charged to expenses in the period.

Details of the scheme can be found on the NEST Pensions website at: http://www. nestpensions.org.uk/schemeweb/NestWeb/includes/public/docs/understanding-NEST.PDF. pdf

Note 9: Operating leases

9.1 Operating leases as lessor

2014/15 2013/14 £000 £000 Operating lease revenue Minimum lease receipts 211 268 Other 112 43 Total 323 311

31 March 31 March 2015 2014 £000 £000 Future minimum lease receipts due: - not later than one year; 322 358 - later than one year and not later than five years; 1,191 1,365 - later than five years. 2,983 3,330 Total 4,496 5,053

The Trust is a lessor in a small number of operating leases for various premises, the longest of which expires in 2033

Page 126 Greater Manchester West Mental Health NHS Foundation Trust 9.2 Operating Leases as lessee The Trust is a lessee in a number of operating leases for various premises and vehicles, the longest of which expires in 2025.

The most significant of these in annual value is for the lease of Victoria Square, Bolton. The value of the payment for the period was £106,190, and the lease ends in 2018.

Each lease has standard terms and conditions without the option to purchase upon the expiry of the lease.

Under existing arrangements there are no operating restrictions imposed by the leases. Proposals to change the use would require consultation with the relevant landlord.

2014/15 2013/14 £000 £000 Operating lease expense Minimum lease payments 1,172 967 Total 1,172 967

31 March 31 March 2015 2014 £000 £000 Future minimum lease payments due: - not later than one year; 994 999 - later than one year and not later than five years; 1,940 889 - later than five years. 1,428 143 Total 4,362 2,031 Future minimum sublease payments to be received - -

Note 10: Finance income/Expenditure

Interest on bank accounts and short term deposits in 2014/15 was £192k (£164k 2013/14).

Note 11: Finance expenditure

The Trust has no Finance expenditure to report.

Note 12: Corporation tax

For 2014/15 there is to be no application of Corporation Tax liability. The Trust is a Health Service body within the meaning of s519A ICTA 1988 and accordingly is exempt from taxation in respect of income and capital gains within categories covered by this Act.

Note 13: Discontinued operations

The Trust has no discontinued operations

Annual Report 2014/15 Page 127 Note 14: Intangible assets - 2014/15

Software Intangible Total licences assets under (Purchased) construction £000 £000 £000 Valuation/gross cost at 1 April 2014 - brought - - - forward Valuation/gross cost at start of period for - - - new FTs Additions 148 83 231 Gross cost at 31 March 2015 148 83 231

Amortisation at 31 March 2015 0 0 0

Net book value at 31 March 2015 148 83 231 Net book value at 1 April 2014 - - -

Note 14.1 Intangible assets - 2013/14 The Trust had no intangible assets in 2013/14

14.2 ValuationSoftware licences required for the Trusts Patient Administration System have been capitalised as an intangible asset at cost.

14.3 Useful economic life of intangible assets Useful economic lives reflect the total life of an asset and not the remaining life of an asset. The range of useful economic lives are shown in the table below:

Intangible assets – purchased Min life Max life Years Years Software 2 5

Page 128 Greater Manchester West Mental Health NHS Foundation Trust Note 15: Property, plant and equipment

Note 15.1 Property, plant and equipment - 2014/15

Buildings Assets under Plant & Transport Information Furniture & Land excluding Dwellings Total construction machinery equipment technology fittings dwellings

£000 £000 £000 £000 £000 £000 £000 £000 £000 Valuation/gross cost at 1 April 15,123 120,705 - 4,333 569 651 556 1,326 143,263 2014 - brought forward Valuation/gross cost at start of ------period as FT Additions - - - 12,550 - 64 156 251 13,021 Impairments - - - (159) - - - - (159) Reclassifications - 9,650 - (9,650) - - - - - Disposals / - (614) - - - (28) - - (642) derecognition Valuation/gross cost at 31 March 15,123 129,741 - 7,074 569 687 712 1,577 155,483 2015

Accumulated depreciation at - 39,427 - - 418 385 556 1,054 41,840 1 April 2014 - brought forward Depreciation at start ------of period as FT Provided during the - 2,932 - - 40 75 39 140 3,226 year Impairments - 726 ------726 Disposals/ - (614) - - - (15) - - (629) derecognition Accumulated depreciation at 31 - 42,471 - - 458 445 595 1,194 45,163 March 2015

Net book value at 31 March 2015 - 15,123 87,270 - 7,074 111 242 117 383 110,320 Owned Net book value at 1 April 2014 - 15,123 81,278 - 4,333 151 266 - 272 101,423 Owned

Annual Report 2014/15 Page 129 Note 15.2 Property, plant and equipment - 2013/14

Buildings Assets under Plant & Transport Information Furniture & Land excluding Dwellings Total construction machinery equipment technology fittings dwellings £000 £000 £000 £000 £000 £000 £000 £000 £000 Valuation/ gross cost at 1 April 2013 - 15,123 107,352 - 9,125 616 661 565 1,017 134,459 as previously stated Prior period ------adjustments Valuation/gross cost at 1 April 15,123 107,352 - 9,125 616 661 565 1,017 134,459 2013 - restated Valuation/gross cost at start of ------period as FT Transfers by - 582 ------582 absorption Additions - purchased/ leased/ - - - 8,766 - 58 - 309 9,133 grants/ donations Reclassifications - 13,558 - (13,558) - - - - - Disposals / - (787) - - (47) (68) (9) - (911) derecognition Valuation/ gross cost at 31 15,123 120,705 - 4,333 569 651 556 1,326 143,263 March 2014

Accumulated depreciation at 1 April 2013 - 35,584 - - 424 382 565 1,017 37,972 - as previously stated Prior period ------adjustments Accumulated depreciation at - 35,584 - - 424 382 565 1,017 37,972 1 April 2013 - restated Depreciation at start of period ------as FT Transfers by - 240 ------240 absorption Provided during - 2,564 - - 41 71 - 37 2,713 the year Impairments - 1,845 ------1,845 Reversals of - (19) ------(19) impairments Disposals / - (787) - - (47) (68) (9) - (911) derecognition Accumulated depreciation at - 39,427 - - 418 385 556 1,054 41,840 31 March 2014

Net book value at 31 March 15,123 81,278 - 4,333 151 266 - 272 101,423 2014 - Owned Net book value at 1 April 2013 - 15,123 71,768 - 9,125 192 279 - - 96,487 Owned

Page 130 Greater Manchester West Mental Health NHS Foundation Trust Note 16: Donations of property, plant and equipmen

The Trust has not received any donations of property, plant or equipment in 2014/15.

Note 17: Revaluations of property, plant and equipment

Note 17.1 Land and Buildings - basis of valuation Land and buildings are stated in the statement of financial position at their revalued amounts as at 31st March 2013. Revaluations are performed with sufficient regularity to ensure that carrying amounts are not materially different from those that would be determined at the end of the reporting period. IAS16 (34) requires that the accounts reflect changes in asset values. Where insignificant, revaluation may be necessary only every 3 or 5 years. In Monitor’s view property assets are likely to require a full revaluation at least every 5 years, with which the Trust complies.

Properties in the course of construction are carried at cost. Cost includes professional fees but not borrowing costs, which are recognised as expenses immediately, as allowed by IAS 23 for assets held at fair value.

An asset valuation of the Trust’s land and buildings as at 31st March 2013 was carried out by independent professional valuers.

Fair values for operational assets were determined as follows :-

Land and non-specialised buildings - market value for existing use (Existing Use Value).

Specialised buildings – depreciated replacement cost using a Modern Equivalent Asset Valuation.

The following non-operational asset has been valued at Market Value: Clifton House - Land

Note 17.2 Plant and Equipment The carrying amount for fixtures and equipment is depreciated historic cost as this is not considered to be materially different from fair value.

Annual Report 2014/15 Page 131 Note 17.3 Asset Lives The estimated useful life for Information Technology equipment is 3 years (amended in 2010/11 from 5 years).

Min Life Max Life Economic life of property, plant and equipment Years Years Land 0 0 Buildings excluding dwellings 1 70 Dwellings 0 0 Assets under Construction & POA 0 0 Plant & Machinery 5 15 Transport Equipment 7 7 Information Technology 3 3 Furniture & Fittings 3 3

For newly acquired or newly constructed assets, a formal revaluation, including assessment of economic life, will only be carried out if there is an indication that the initial cost is significantly different to its fair value.

Note 17.4 Gross carrying amount of any fully depreciated assets still in use There are 169 equipment assets which are fully depreciated. The gross carrying cost of these totals £2,085,715

Note 18: Investment

The Trust has no investments 2014/15 (2013/14 £nil)

Note 19: Disclosure of interests in other entities

The Trust has no interest in other entities 2014/15 (2013/14 £nil)

Note 20: Inventories

The value of stocks and work in progress are deemed to be immaterial to the accounts when consideration is given to the costs of collation and verification.

Note 21: Other Assets

The Trust has no other assets 2014/15 (2013/14 £nil)

Page 132 Greater Manchester West Mental Health NHS Foundation Trust Note 22: Other Financial Assets

The Trust has no other assets 2014/15 (2013/14 £nil)

Note 23: Trade receivables and other receivables

31 March 31 March 2015 2014 £000 £000 Current Trade receivables due from NHS bodies 3,776 1,614 Other receivables due from related parties 3,654 1,442 Provision for impaired receivables (834) (348) Prepayments (non-PFI) 1,037 716 Accrued income 541 161 Interest receivable 3 - PDC dividend receivable - 79 VAT receivable - 462 Total current trade and other receivables 8,177 4,126

Non-current Prepayments (non-PFI) 10 706 Total non-current trade and other receivables 10 706

The majority of trade is with Clinical Commissioning Groups and NHS England, as commissioners for NHS patient care services. As CCGs’ and NHS England are funded by Government to buy NHS patient care services, no credit scoring of them is considered necessary

Note 23.1 Provision for impairment of receivables

2014/15 2013/14 £000 £000 At 1 April as previously stated 348 537 Prior period adjustments - - At 1 April - restated 348 537 At start of period for new FTs - - Increase in provision 486 - Unused amounts reversed - (189) At 31 March 834 348

With the exclusion of NHS debtors, in general, receivables 90 days past their due date are fully impaired. Additionally, where specific circumstances are known individual invoices are impaired in full. Other debts are partially provided for.

Annual Report 2014/15 Page 133 Note 23.2 Analysis of impaired receivables

31 March 31 March 2015 2014 Trade Other Trade Other receivables receivables receivables receivables Ageing of impaired receivables £000 £000 £000 £000 0 - 30 days 173 - - - 30-60 Days 8 - 2 - 60-90 days 16 - 19 - 90- 180 days 421 - 229 - Over 180 days 216 - 98 - Total 834 - 348 - Ageing of non-impaired 0 - 30 - receivables past their due days date 30-60 Days 130 - (40) - 60-90 days 42 - 29 - 90- 180 days 280 - 41 - Over 180 days 66 - (9) - Total 518 - 21 -

Note 24: Non-current assets for sale and assets in disposal groups

The Trust has no Non-current assets for sale and assets in disposal groups

Note 24.1 Liabilities in disposal groups The Trust has no Liabilities in disposal groups

Page 134 Greater Manchester West Mental Health NHS Foundation Trust Note 25: Cash and cash equivalents movements

Cash and cash equivalents comprise cash at bank, in hand and cash equivalents. Cash equivalents are readily convertible investments of known value which are subject to an insignificant risk of change in value.

2014/15 2013/14 £000 £000 At 1 April 56,436 51,861 Prior period adjustments - - At 1 April (restated) 56,436 51,861 At start of period for new FTs - - Transfers by absorption - - Net change in year (6,592) 4,575 At 31 March 49,844 56,436 Broken down into: Cash at commercial banks and in hand - 538 Cash with the Government Banking Service 13,644 6,898 Deposits with the National Loan Fund 36,200 49,000 Other current investments - - Total cash and cash equivalents as in SoFP 49,844 56,436 Bank overdrafts (GBS and commercial banks) - - Drawdown in committed facility - - Total cash and cash equivalents as in SoCF 49,844 56,436

Note 25.1 Third party assets held by the NHS foundation trust Greater Manchester West Mental Health NHS Foundation Trust held cash and cash equivalents which relate to monies held by the the foundation trust on behalf of patients or other parties. This has been excluded from the cash and cash equivalents figure reported in the accounts.

31 March 31 March 2015 2014 £000 £000 Bank balances 76 104 Monies on deposit 562 542 Total third party assets 638 646

Annual Report 2014/15 Page 135 Note 26: Trade and other payables

Note 26.1 Trade and other payables

31 March 31 March 2015 2014 £000 £000 Current Receipts in advance - - NHS trade payables 1 86 Amounts due to other related parties 1,717 1,821 Other trade payables - - Capital payables 3,618 1,792 Social security costs 2,301 2,310 VAT payable 374 - Other taxes payable - - Other payables - - Accruals 15,990 13,936 PDC dividend payable 33 - Total current trade and other payables 24,034 19,945

Non-current - - Total non-current trade and other payables - -

Note 26.2 Early retirements in NHS payables above The Trust has no payments due in respect of arrangements under buy out liability, early retirement over 5 instalments or other outstanding pensions contributions.

Note 27: Other liabilities

31 March 31 March 2015 2014 £000 £000 Current Other deferred income 19,855 11,924 Non-current Other deferred income 2,490 16,567

Page 136 Greater Manchester West Mental Health NHS Foundation Trust Note 28: Provisions for liabilities and charges analysis

Current Non-current 2014/15 2013/14 2014/15 2013/14 £000 £000 £000 £000 Pensions relating 181 176 3,100 2,922 to other staff Other Legal 156 123 0 0 Claims * Restructurings 1,120 1,612 0 168 Other ** 1,266 1,165 0 0 Total 2,723 3,076 3,100 3,090

Pensions Pensions - Other legal Agenda for Re- Continuing - former Equal pay Redundancy Other Total other staff claims change structurings care directors £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 At 1 April 2014 - 3,098 123 - 1,780 - - - 1,165 6,166 At start of period ------for new FTs Transfers by ------absorption Change in the - 81 ------81 discount rate Arising during the - 102 33 - 458 - - - 382 975 year Utilised during the - (180) - - (639) - - - (139) (958) year Reclassified to liabilities held in ------disposal groups Reversed unused - - - - (479) - - - (142) (621) Unwinding of - 180 ------180 discount At 31 March 2015 - 3,281 156 - 1,120 - - - 1,266 5,823 Expected timing of cash flows: - not later than one - 181 156 - 1,120 - - - 1,266 2,723 year; - later than one year and not later - 562 ------562 than five years; - later than five - 2,538 ------2,538 years. Total - 3,281 156 - 1,120 - - - 1,266 5,823

* The NHS Litigation Authority has informed the Trust of Employers’ and Public Liability claims totalling £156,000 2014/15 (£123,000 2013/14) (as shown above). The amount is disclosed as a provision.

** Other provisions include amounts of £425,000 in respect of estates costs, and £1,120,050 due to unforeseen costs as a result of loss of contracts/legal claims. No individual provision is greater than £1m.

Note 28.1Clinical Negligence Liabilities At 31 March 2015, £541k was included in provisions of the NHSLA in respect of clinical negligence liabilities of Greater Manchester West Mental Health NHS Foundation Trust (31 March 2014: £229k).

Annual Report 2014/15 Page 137 Note 29: Contingent assets and liabilities

31 March 31 March 2015 2014 £000 £000 Value of contingent liabilities NHS Litigation Authority legal claims (134) (104) Gross value of contingent liabilities (134) (104) Amounts recoverable against liabilities - - Net value of contingent liabilities (134) (104) Net value of contingent assets - -

The NHS Litigation Authority has informed the Trust of a contingent liability of £134,000 2014/15 (£104,000 2013/14) for Employers’ and Public Liability claims.

The figure has been calculated on an expected value basis after taking legal opinion. It is anticipated these claims will be settled within the financial year 2015/16 and a further amount of £156,000 2014/15 (£123,000 2013/14) has been included in Provisions due within 12 months (see note 28)

Note 30: Contractual capital commitments

31 March 31 March 2015 2014 £000 £000 Property, plant and equipment 12,055 4,838 Total 12,055 4,838

The capital commitments are predominantly in respect of the costs of the provision of additional Medium and Low Secure Unit beds, the new build Recovery Academy, and the redevelopment of Older Adult beds at Woodlands.

Note 31: Financial instruments

Note 31.1 Financial risk management

Financial reporting standard IFRS 7 requires disclosure of the role financial instruments have had during the period in creating or changing the risks a body faces in undertaking its activities. Due to the service provider relationship the Trust has with Clinical Commissioning Groups (CCG): and the way those CCG are financed, the Trust is not exposed to the degree of financial risk faced by business entities. Also financial instruments play a much more limited role in undertaking its activities. creating or changing risk than would be typical of listed companies, to which the financial reporting standards mainly apply. The Trust has restricted powers to borrow or invest surplus funds, and financial assets and liabilities are generated by day-to-day operational activities rather than being held to change the risks facing the Trust in undertaking its activities. The Trust’s treasury management operations are carried out by the finance department, within parameters defined formally within the Trust’s standing financial instructions and policies agreed by the Board of directors. Trust treasury activity is subject to review by the Trust’s internal auditors.

Page 138 Greater Manchester West Mental Health NHS Foundation Trust Note 31.2 Currency Risk The Trust is principally a “domestic” organisation with the great majority of transactions, assets and liabilities being in the UK and sterling based. The Trust has no overseas operations. The Trust therefore has low exposure to currency rate fluctuations.

Note 31.3 Interest Rate Risk The Trust largely finances its capital expenditure from internally generated funds. In addition to this, additional capital expenditure can be financed within an agreed borrowing limit

Note 31.4 Credit risk As the majority of the Trust’s income comes from contracts with other public sector bodies, the Trust has low exposure to credit risk. The maximum exposures as at 31 March 2015 are in receivables from customers, as disclosed in the Trade and other receivables note.

Note 31.5 Liquidity Risk The Trust’s operating costs are incurred under contracts with a range of commissioners - Clinical Commissioning Groups (CCGs), NHS England for Specialist Commissioned services, Local Authorities and Drug Action Teams, under legally binding arrangements. Local Authorities, CCGs and NHS England have their resources voted annually by Parliament. The Trust finances its capital expenditure from internally generated funds.

Annual Report 2014/15 Page 139 Note 31.6 Financial assets Assets at Loans and fair value Held to Available- Total receivables through maturity for-sale the I&E £000 £000 £000 £000 £000 Assets as per SoFP as at 31 March 2015 Trade and other receivables excluding non 7,141 - 7,141 financial assets Cash and cash equivalents 49,844 - 49,844 at bank and in hand Total at 31 March 2015 56,985 - 56,985-

Assets at Loans and fair value Held to Available- Total receivables through maturity for-sale the I&E £000 £000 £000 £000 £000 Assets as per SoFP as at 31 March 2014 Trade and other receivables excluding non 3,331 - 3,331 financial assets Cash and cash equivalents 56,436 - 56,436 at bank and in hand Total at 31 March 2014 59,767 - 59,767

Note 31.7 Financial liabilities Liabilities Other at fair financial value Total liabilities through the I&E £000 £000 £000 Liabilities as per SoFP as at 31 March 2015 Trade and other payables excluding non financial 24,034 - 24,034 liabilities Provisions under contract 5,823 - 5,823 Total at 31 March 2015 29,857 - 29,857

Liabilities Other at fair financial value Total liabilities through the I&E £000 £000 £000 Liabilities as per SoFP as at 31 March 2014 Trade and other payables excluding non financial 19,945 - 19,945 liabilities Provisions under contract 6,166 - 6,166 Total at 31 March 2014 26,111 - 26,111

Page 140 Greater Manchester West Mental Health NHS Foundation Trust Note 31.8 Maturity of financial liabilities

31 March 31 March 2015 2014 £000 £000 In one year or less 26,757 19,945 In more than one year but not more than two years 274 3,076 In more than two years but not more than five years 288 707 In more than five years 2,538 2,383 Total 29,857 26,111

Note 31.9 Fair values of financial assets at 31 March 2015

Book Fair value value £000 £000 Non-current trade and other receivables excluding non financial 10 10 assets Other 49,884 49,884 Total 49,894 49,894

Note 32 Fair values of financial liabilities at 31 March 2015

Book Fair value value £000 £000 Non-current trade and other payables excluding non financial - - liabilities Provisions under contract 3,100 3,100 Loans - - Other - - Total 3,100 3,100

Annual Report 2014/15 Page 141 Note 33 Losses and special payments

2014/15 2013/14 Total Total Total Total number value of number value of of cases cases of cases cases Number £000 Number £000 Losses Cash losses 21 4 13 4 Bad debts and claims abandoned 6 2 10 4 Stores losses and damage to property 2,259 114 1,500 66 Total losses 2,286 120 1,523 74 Special payments Ex-gratia payments 15 3 22 4 Total special payments 15 3 22 4 Total losses and special payments 2,301 123 1,545 78

There were no cases of £300,000 or more

Note 34 Transfers by absorption

The Trust had no transfers by absorption in 2014/15 (2013/14 £327,000)

Note 35 Event after the reporting period

There are no material events after the reporting period to disclose.

Note 36 Prior period adjustments

Under IAS 8 the Trust must disclose where comparative information has been restated due to either a change in accounting policy or material prior period error. The Trust has no disclosures under either category to disclose.

Page 142 Greater Manchester West Mental Health NHS Foundation Trust Note 37 Related parties

In 2014/15 one executive member and four non-members of the Trust Board have relationships with organisations with which the Trust has immaterial transactions. The details are:

Alan Maden GMW Chair is a Trustee of the St Ann’s Hospice Pension Fund who had transaction with the Trust totalling £4,400

Karen Luker GMW Non Executive Director is a Professor/Head University nominated Non- Executive Director post Head of School of Nursing, Midwifery and Social Work, Queen’s Nursing Institute of Professor of Community Nursing, The University of Manchester who had transactions with the Trust totalling £nil.

Jon Bashford GMW Non Executive Director resigned 1st July 2014, is a Director of Research and Development TiFCi and a Senior Partner, Community Innovations Enterprise LLP who had £nil transactions with the Trust.

Anthony Bell GMW Non Executive Director appointed 1st July 2014, is a Non Executive Director of The Guinness Partnership and Carrioca Enterprises, and is Vice Principal of Grimsby Institute of Further Education. There were no transactions between the Trust and these organisations in 2014/15.

Julie Jarman GMW Non Executive Director appointed 1st August 2014, is a Trustee of MIND in Salford who had £nil transactions with the Trust.

The Department of Health is regarded as a related party. During the year the Trust has had a significant number of material transactions with the Department, and with other entities for which the Department is regarded as the parent Department. These entities are:

• Age UK • British Telecom • Cambridge University • Cumberland Lodge • London School of Economics • Medical Research Council • National Society for Epilepsy • Whitehall and Industry Group • Medicines and Healthcare Products Regulatory Agency

The aggregate remuneration and other benefits due to the key management in respect of the current year totalled £983,000 2014/15 (£970,000 2013/14); Remuneration £959,000 2014/15 (£948,000 2013/14), Employer contributions to the pensions scheme £116,000 2014/15 (£115,000 2013/14), Lease car benefits £17,000 2014/15 (£16,000 2013/14) and expenses £7,000 2014/15 (£7000 2013/14).

Annual Report 2014/15 Page 143 Receivables Payables 31 March 31 March 31 March 31 March 2015 2014 2015 2014 £000 £000 £000 £000 Value of balances with other Related parties at 31 March 2015 Department of Health 147 125 397 892 Other NHS Bodies 4,077 1,628 5,054 7,855 Other 2,557 1,224 5,576 NHS Shared Business Services 432 - Total 6,781 2,977 5,883 14,323

Income Expenditure 2014/15 2013/14 2014/15 2013/14 £000 £000 £000 £000 Value of balances with other Related parties at 31 March 2015 Department of Health 1,012 932 Other NHS Bodies 133,770 130,464 8,081 7,033 Other 23,835 22,282 21,288 20,765 NHS Shared Business Services 29 35 Total 158,617 153,678 29,398 27,833

Page 144 Greater Manchester West Mental Health NHS Foundation Trust