anlyHsia H Foundation Trust Barnsley HospitalNHS

Annual Report Annual Report & Accounts & Accounts 2006/07 2006/07

Barnsley Hospital NHS Foundation Trust Gawber Road Barnsley South Yorkshire S75 2EP Annual Report&Accounts Tel. 01226 730000 www.bhnft.nhs.uk 2006/07 This document is printed on paper produced from 75% recycled fibre. Design by: vividcreative.com © 2007 V4219 V4219_BRNSLY_NHS Report07_AW 12/7/07 4:32 pm Page 3

Annual Report & Accounts 2006/07 Presented to Parliament pursuant to Schedule 1 of the Health and Social Care (Community Health and Standards) Act 2003, Schedule 1, paragraph 25 (4). V4219_BRNSLY_NHS Report07_AW 12/7/07 4:32 pm Page 4

Contents

Chairman’s message 5 Chief Executive’s message 7 Operating and financial review 8 i. Introduction 8 ii. Providing high quality, low risk care 9 iii. Achieving success in a choice environment 14 iv. Improving efficiency 16 v. Creating new income opportunities 19 vi.Working in partnership 21 vii. Making a social contribution 22 viii. Financial overview 24 Governing Council 25 Board of Directors 28 Committees 32 Membership 34 Public interest disclosures 36 Remuneration report 39 Statement of Accounting Officer’s Responsibilities 40 Auditor’s opinion and certificate 41 Statement of Internal Control 42 Accounts 48

Annual Report & Accounts 2006/07 Telephone: 01226 730000 www.bhnft.nhs.uk V4219_BRNSLY_NHS Amended pages 2/7/07 4:30 pm Page 1

Chairman’s message

The hospital year to the end of I know that whilst we continue The new system of funding that March 2007 was one of mixed to achieve targets set for the NHS, I have referred to as ‘pay as you go’, achievement. On the positive Barnsley Hospital has much more more properly termed ‘payment front we have, as comprehensively yet to do to ensure that we provide by results’,has potentially major explained in the report, continued in the best care possible for each and implication for the future availability our drive to improve the standard of every one of our patients. I am of acute hospital services in Barnsley. care available to users of our services. confident that the Board is well This is a consequence of current We were rated one of the top forty equipped to drive forward health policy to reduce services that hospitals in the country and the continued improvement but are to be made available to patients Healthcare Commission determined we are far from complacent. in hospitals such as ours.To enable that our care should, over all these implications to be fully standards, be considered ‘Good’. Whilst I believe that the opportunity understood we have, during the for our patients and staff has year, commenced an analysis of the The care we provide to elderly continued to progress, the effort options that will follow the future people has been accredited at a and commitment that has been reduction of care that is accessible level of competence that has been necessary this year to ensure in our hospital.This work is of major suggested other hospitals could the effective management and importance and representatives from learn from.We have extended our accountability of the hospital and all sections of the community, served care facilities for babies with special its finances has been extraordinary. by the hospital, are involved in the and intensive care needs.We have This has contributed to the more study. I anticipate that the Strategic progressed our infection control negative side of my assessment Options Analysis, as the study is systems by introducing deep clean of progress this year. In particular termed, will be available for wider technology and we have appointed the transfer of block funding for consultation during this summer. a consultant to lead our drive to hospital services to a ‘pay as you go’ maximise infection control. treatment has drained significant Our Governing Council, now Furthermore we have succeeded in time from already over stretched established for three years, achieving Improving Working Lives management and finance teams. continues to provide a most Practice Plus.This is testament to Having taken a year to reach valuable contribution to our the extent to which we go as a agreement concerning our contract hospital. Contribution to hospital to create an environment for the provision of services with our debate concerning performance, for our staff that would not be main commissioner I am relieved to governance and the future direction available to most employees in report that the hospital now has of the hospital is invaluable and the work place environment. agreements concerning our I should like to place on record expected work programme to take my appreciation to the Governing us through to March 2008. In the Council for the support and context of the excessive amount guidance that has been readily of time and effort that has been provided over the past year. required to reach agreement with our Primary Care Trust achieving financial balance at year end March 2007 is acknowledged by the Board as a major success.

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Chairman, Gordon Firth (left) and Acting Chief Executive, Dr David Hicks (right).

I traditionally use this opportunity maintain and improve our facilities from the Board is given, our to formally express my appreciation and environment to ensure the success will more likely depend to our staff at every level in the continued provision of safe upon the continued individual organisation for the contribution, attractive services and facilities. and collective effort of our staff. both individually and collectively, This then dictates a minimum level We all need to accept that, by our that has enabled yet another year that we can operate at and in turn actions, we encourage or otherwise of success for Barnsley Hospital a minimum level of service income potential patients to choose referral NHS Foundation Trust.This year (the pay as you go factor) that to our hospital as their first choice. I need to say more. is essential to our future success. We have an enviable reputation for Patient choice, properly advised by dedicated staff at Barnsley Hospital. I have referred to the Strategic performance data and reputation That is why I have confidence that Options Analysis that is presently together with guidance from the commitment I have referred in progress.Without doubt this General Practice colleagues will to will be supported and result study will confirm that much of determine the number of referrals to in the best possible opportunity the referral work we have come our hospital and in turn our income. to ensure our future as the hospital to expect over many past years will of first choice. in the future, under present policy, These factors will have a major become the responsibility of other influence on the future of Barnsley health care providers.The hospital, Hospital.The Board, supported by Gordon Firth as an entity, relies for its longer-term the Governing Council, is determined Chairman existence and success upon several to do everything it can to shape the factors that need to be maintained. hospital and its services to maximise These include adequate suitably our opportunity to continue to qualified and proficient staff at all provide the comprehensive acute levels to ensure that we respond to hospital service in Barnsley that patient need in a safe and timely Barnsley has come to expect and manner.We also require them to deserve.Whilst this commitment

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Chief Executive’s message

I am delighted to be able to echo As you will read in the following services locally.We have had the words of the Chairman with report, the Trust continues to meet some excellent discussion with regard to the success of the last all nationally set targets as well as our Primary Care Trust and Local financial year. work to deliver more challenging Authority colleagues and this local objectives. three way arrangement should I was flattered to be asked to take up help us chart a course through the post of Acting Chief Executive for Last year, we continued to focus the challenging times ahead. the Trust by the Chairman and Board on our strategy of improving access The Strategic Options Analysis of Directors from December 2006. times and raising quality across the Report is expected in mid I regard this as the high point of board. Details of this are contained summer 2007. my 24-year association with the within the report. Trust and the people of Barnsley, I must offer a huge vote of thanks having worked during that time as The Trust ended the year with our for the continued commitment and a Consultant Physician, the Trust’s financial position in balance, even dedication from staff and volunteers Medical Director and now it’s Chief delivering a small surplus which across the organisation. Barnsley Accountable Officer. I am left in no will be reinvested in patient care is already acknowledged as a high doubt, through my contacts with and you will see from the report performing and friendly hospital other Chief Executives across the how higher than planned levels and with the help of all involved country that the Trust is held in of activity generated these monies. we must assure its future and high regard, with a reputation for For the next year we look forward progress to becoming truly the high performance, friendliness to more change with continued first choice hospital for people and innovation. investment in the NHS but it must in Barnsley and beyond. It is my intention to ensure that be remembered that following the we continue to provide excellent financial year 2007/08 the total Dr David Hicks NHS services for patients with the percentage increase in monies Acting Chief Executive key focus being the quality of the available to the NHS for the next patient experience.To this end I feel three years will only equal that we must look at the freedoms and for 2007/08. flexibilities offered to Foundation We will continue to refine a process Trusts which permit us to work begun in 2006/07 which we call our for the benefit of local people. Strategic Options Analysis.This is a look into the future of the whole of the Trust over the next five years to inform and support the planning of

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Operating financial review

i. Introduction

Barnsley Hospital NHS Foundation Against rigorous national We are driven by research and Trust was founded on January 1 benchmarks the Trust has performed consultation with our patients, 2005 under the Health and Social well, though we recognise that there staff and representatives from the Care (Community Health and is still scope for improvement. wider community and our future Standards) Act 2003, and as We have also made some significant plans focus on ensuring that our re-enacted in the National Health progress in improving the ways in patients will continue to choose Service Act 2006 (the 2006 Act). which we work. Our success as a our hospital as their first choice Foundation Trust is dependent for care and services. As an associate teaching and on close working with partner research hospital affiliated to the organisations and we have been To meet the current challenges University of Sheffield, we provide able to realise some of our ambitions of the NHS we revised the six key a range of acute hospital services in the last year through building themes of our strategic vision last to a population of around 220,000. stronger relationships. year and in this report we refer to Services range from accident and these headings to illustrate our emergency to maternity, general As a Foundation Trust we now have performance throughout the and specialist surgery to critical greater flexibility to meet the needs last 12 months. care, medicine, elderly people’s of our patients and stakeholders services and medical imaging. and our goal is to not only meet those needs, but to surpass them. This, our third annual report as a Foundation Trust, looks at our Our vision is one where our patients performance throughout 2006- are at the centre of our thinking and 2007 and how we have continued planning of services. to develop and improve services for patients in what has again been a challenging year.

“As a Foundation Trust we now have greater flexibility to meet the needs of our patients and stakeholders and our goal is to not only meet those needs, but to surpass them.”

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ii. Providing high quality, low risk care

Key aims 2006/07 Patient safety Healthcare Commission • Continue to drive up patient Patient safety ‘walkabouts’ standards safety standards. were introduced in September. In October the hospital was rated by the new Healthcare Commission • Meet Healthcare Commission The walkabouts involve the system.This rating is in two parts. standards. Chief Executive, Medical and The first looked at the quality of • Recruit new consultants. Nursing Directors, Clinical Services services and the second at how well Director and Patient Safety Lead • Continue to meet national the organisation used its resources. and are designed to encourage targets and standards. Barnsley Hospital received a rating everyone to think about how of ‘good’ in each, in a range of weak, In the last twelve months the care can be delivered more safely. fair, good and excellent. Trust has continued to build on its They focus on four key areas: achievements in the areas of high patients, staff, equipment and The new ratings, which replace quality and low risk care, always policies and procedures. the old star rating system, are striving to compete with the best designed to give patients a Wards, clinical and support areas nationally and internationally. much more detailed picture are visited and the patient safety We met a range of national targets of the hospital’s performance. walkabout team makes notes on and standards, improved wards and The detailed breakdown enables each visit, agreeing actions environments, introduced new ways patients to better find answers to where needed. of working and appointed several questions such as ‘How safe and new clinicians. clean is the hospital?’ and ‘How good is the care I will receive?’

Leading advanced practitioner Gill Keating takes an ultrasound of a patient. The Trust was rated as ‘excellent’ for its performance against new national targets in the Healthcare Commission report. The new targets include shorter waiting times for scans, MRSA rates and quick access to sexual health clinics.

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Operating financial review

ii. Providing high quality, low risk care (continued)

The Trust’s score for quality of Meeting national standards Cancer services peer review services covers a range of areas and this includes access to services, These are some of the achievements A report into cancer services at the safety and the way the Trust is run. made by the Trust in relation to hospital and across the district in In particular, it reflects whether the national standards: September was most encouraging. hospital provides the basic standards • 98% of patients were seen A national inspection team visited of care required by the Government and treated in our accident the Trust in the summer, spent a and whether it is striving to improve and emergency department week looking in-depth at services care and treatment. within four hours. and then cross-checked what the Some of the main points from • 99% of patients referred to our Trust said with what patients had the Trust’s report were: Rapid Access Chest Pain Clinic to say. As a result of its visit, the by their GP were seen within team singled out some areas of • It was rated as ‘excellent’ for its two weeks. their good work.These were: performance against new national targets.This included MRSA rates, • 100% of patients referred by their • The close working quick access to sexual health GP with urgent suspected cancer relationships between clinics and shorter waiting were seen within two weeks. the hospital and community. times for scans. • 100% of patients who were • Integrated pathways for patients • It was rated as ‘good’ in a diagnosed with cancer had their who are terminally ill. review of diagnostic services. first treatment within 31 days. • A comprehensive log-book • It received a ‘fair’rating for the • 95% of patients with an urgent for patients. review of children’s services. referral for suspected cancer • Nurse-led clinics. This looked at inpatient care, day had their first treatment within 62 days of their referral. • Excellent patient care, emergency services, planned participation group. operations and outpatient services. • All patients whose operations • It was rated as ‘excellent’ in a were cancelled last year were review of medicines management. admitted for surgery within the national standard of 28 days. • It received a ‘good’rating for the use of resources.This refers • Delayed transfers of care to planning and reporting on were 1.2% of all discharges. financial performance, monitoring • There were no patients money spent and ensuring services waiting more than 11 weeks represent good value for money. from a GP referral to their first hospital appointment. • No patients waited more than 20 weeks for their treatment from the decision by the consultant to admit them to hospital.

Urology nurse practitioner, Russell Dowde talks with a patient in one of the nurse led clinics.

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Mum Tracy Adams with her four-day-old daughter, Ellie talks to staff nurse Zoe Whittaker in the upgraded neonatal unit. The unit can now admit babies born at 26 weeks or above.

Setting national standards Upgraded status Risk management A team from the National Institute for neonatal unit A new risk management system for Innovation and Improvement The neonatal unit was given was launched on the wards. came to the hospital in May to look an upgraded status in December, This initiative, which had been closely at fractured neck of femur enabling it to look after babies piloted in the last financial year, pathways for the frail elderly. born at 26 weeks or above. enables staff to feel supported The aim of their visit was to gather Funding of almost £100,000 from and know what is expected of ideas and use the results of their the Regional Neonatal Network them at all times, including when findings to develop a ‘best practice’ meant that the Trust was able to there is an adverse incident. template for other hospitals. upgrade the unit so it has nine The system consists of a series of Barnsley Hospital was one of several special, three high dependency and question cards based around three chosen as an exemplar site from two intensive care beds – instead areas – clinical care, non-clinical which other hospitals could learn. of 11 special and two intensive care services, and the ward environment. beds.This allows the unit to care for The Trust also performed well in The shift leader asks staff the more and poorlier babies. an independent national audit questions on one of the cards of services for falls and bone Three new nurses and a doctor with and any gaps in knowledge are health in older people. It scored a special interest in neonatal babies then highlighted and dealt with. a maximum 100 for its specialist were also funded. Dr Mamhood As well as creating staff ownership falls management, compared to Saeed, who has a special interest of problems, the system also helps a national average of 83 and its in neonatology, joined the Trust to embed a risk awareness culture, specialist falls service gained a in September. score of 82 compared to a national promote shared learning and it average of 62. The unit had previously admitted helps with data collection. babies born at 28-weeks or This audit was carried out by the above only. national Clinical Effectiveness and Evaluation Unit. Its aim was to find out how trusts across the country had responded to the requirements of the 2001 National Service Framework for Older People.

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Operating financial review

ii. Providing high quality, low risk care (continued)

End of life care pathway Ward deep clean Infection control Tracy Forde took up a new role as The rolling programme of The hospital’s Clean Hands End of Life Care Pathway Facilitator deep cleaning wards continued Campaign continued throughout in the summer. throughout the year. the year.The initiative encourages patients, staff and visitors to She has been developing a pathway The scheme is designed to ensure improve their hand hygiene. for terminally ill patients which all wards go through a rigorous enables them to be cared for in cleaning process and, where needed, The infection control team also held their own home as well as raising new flooring, ceilings, windows, two awareness weeks – Infection awareness of the hospital’s end lights and doors are provided. Control in November and ‘Sharps’ of life care pathway.Tracy also (needles) week in January. launched a network of nurses An inspection team – which with an interest in palliative care in includes health and safety, infection The team was joined in March October.There are now 26 nurses control and estates staff, ward and by new consultant microbiologist learning more about the treatment department managers – examines Dr Jyothi Rao. Dr Rao came to and care of patients with palliative each ward to agree what needs the Trust from Sheffield Teaching needs across the hospital. to be done before work starts. Hospitals and leads on infection control and provides specialist advice on antibiotic use. Chartermark The day surgery and endoscopy unit was awarded its third Chartermark – the government national standard for excellence in customer care – in August. It was also ten years since it opened in November.

New consultant microbiologist Dr Jyothi Rao (bottom left) with the infection control team: senior nurse infection control, Denise Potter, specialist nurse infection control, Gilly Cockerline, infection control nurse, Sharon Holmes and infection control secretary, Sue Todd.

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“The day surgery and endoscopy unit was awarded its third Chartermark – the government national standard for excellence in customer care – in August.”

Improving Working Lives The Healthcare Commission (HCC) • Ongoing developments and Practice Plus standard undertakes independent reviews awareness raising about the of complaints under the second care needs of the terminally The Trust was successful in stage of the complaints procedure. ill and patients with dementia. achieving the Improving Working Last year the Trust has recorded • The Emergency department Lives Practice Plus award in October. 10 requests for information from has introduced the Medical Early It is given in recognition of high the HCC regarding new cases Warning System (MEWS), revised standards on a number of key it is reviewing. its initial nurse assessment process workforce issues. In the same period the Trust received along with the patient record card The Trust is now fully accredited the outcome to 13 independent and a number of care pathways. in all seven of the practice plus reviews carried out by the HCC. A discharge checklist and a areas – human resources and The HCC decision was to make wider range of supporting management, flexible working recommendation for further local discharge information has and retirement, healthy workplace, resolution action on eight of the been introduced for patients training and development, childcare reviews. In response the Trust has leaving the department. and support for carers, equality and developed action plans to address • In surgery, introduction of diversity and staff involvement the shortfalls identified by the HCC, walkround handovers to improve and communications. and these have been shared with communications; and review the complainants and across the of mechanisms for assessing, Handling complaints hospital for further learning and scoring and escalating care for improvement. In the remaining poorly patients. Also weekly The Trust received 236 complaints five cases the decision was that documentation audits to improve in 2006/07 which represents a 6% no further action was necessary. the accuracy and completion of rise against the previous year. All patients observations and records. complaints were acknowledged in 2 As a result of feedback from the complaints process here are some • Additional patient information working days; 88% of complainants leaflets in particular for the early received a full response at local of the changes we have made to improve services: pregnancy assessment unit, and resolution within the national the new seating area for reply time standard. • Improvements in the processes assessment in the medical involved with the requesting, admissions unit. Informal complaints – those which reporting, ratification and were resolved by the PALS (patient escalation of x-rays; also seeking • More thorough, comprehensive advice and liaison service) team ways to improve the care of and frequent rounds undertaken without the need to use the formal children undergoing x-ray to by matrons on issues of safety complaints process totalled 938. help alleviate upset and stress. and the environment. This is a reduction of 80 from last year when the total was 1,008.

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Operating financial review

iii. Achieving success in a choice environment

Key aims 2006/07 Matrons and ensure regular While taking part in the programme consultation with patients.Trends in involved personal effort on the part • Ask patients what they specific areas or across the hospital of our staff, the Trust felt the chance think and act on feedback. are then identified and acted upon. to demonstrate the friendliness • Work with Governors to develop and professionalism of our staff One of the issues emerging was a brand for the hospital. on national TV presented an excess noise at night, which has opportunity. Feedback from • Develop and build relationships prompted the matrons to review with GPs. patients, visitors and staff about noise levels as a whole. the programme has been very • Support patients from outside In addition, orthopaedic lead nurse positive for the Trust. Barnsley who want to choose us for their care and treatment. Ann O’Brien used the first anniversary Working with a television crew and of the surgical orthopaedic unit’s the celebrities was also a positive The introduction of payment by opening to invite patients back experience for the staff involved. results (being paid only for the to talk about their experiences. work we do), independent sector treatment centres and patient Asking patients about their Top 40 Trust experience while they are still choice initiative means we are The Trust was named as one increasingly operating in a an inpatient can be difficult for some patients as they prefer of the top 40 hospitals in the competitive environment. In country by medical performance to give feedback following their addition to making sure services consultancy CHKS. are excellent and that patients are hospital stay. Ann and her team highly satisfied with them, we need received positive reviews from The performance criteria is to develop our ability to market our the patients and also asked them based on measures such as death services in order to make sure our for ideas, views and comments and infection rates, numbers of income is maintained, and where on new plans for the department. cancelled operations and year- possible, improved. on-year improvement. Throughout 2006/07, progress GP relationships Trusts in the top 40 have 11.7 per in this area was limited due to Senior managers and consultants cent fewer deaths on average than proposed Department of Health continued to visit practices again others and all achieved shorter than marketing guidelines which were this year to listen to GPs. Networking average lengths of stay.The survey out to consultation. Nonetheless, with GPs and developing plans for also included MRSA rates and patient involvement and feedback possible collaborative work with re-admission figures. processes enabled the development some practices was progressed as of improvement plans and work to an important initiative for the future Choose and book build relationships with GPs. of the hospital. The Trust is among the leading acute Patient feedback hospitals in England for its direct So You Think You Can Nurse access booking.This means patients Monthly patient surveys are now The Trust took part in a television are able to book their hospital embedded within the Trust’s series on being a nurse, aired on appointment while they are still in performance structure. Five in January.Titled ‘So You Think the GP surgery. All the Trust’s services Face-to-face interviews and You Can Nurse’ it followed three are now available to book online, questionnaires form the basis of the celebrities as they learned the including two-week wait clinics. reports which are collated by the skills of being an Auxiliary Nurse.

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Auxiliary nurse Lesley Butler (below) with ward 34 patient Patricia Shepherd. Face-to-face patient questionnaires with patients form the basis of a monthly report from the Matrons.

Breast screening The breast screening unit performed very well last year. As well as meeting rigorous national standards, data showed it was demonstrating a higher than average cancer detection rate – the highest in North East Yorkshire and Humberside. It also has one of the top ten attendance rates in the country. Innovative working by the whole team enabled the unit to improve the services it offers to patients. Under the wing of trained nurses and midwives, writer One of the benefits included and broadcaster Janet Street-Porter, TV presenter Gail providing extra clinics which Porter and comedian Sean Hughes (below) took on helped to bring down the role of auxiliary nurse-in-training for two weeks. waiting times. The result was a three-part series on Five.

Directory of Service Manager for Choose & Book, Justine Britton (pictured below) leads the Trust’s work in direct access booking. The Choose and Book system enables patients to book their hospital appointment while they are still in the GP surgery.

Before the series was filmed, producers came to research the hospital and staff. Pictured above is Endoscopy Nurse Manager Tony Chappell teaching one of the producers how to scrub for theatre.

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Operating financial review

iv. Improving efficiency

Key aims 2006/07 Project Transform Productive ward • Take forward major projects to A range of whole-scale improvement The staff from ward 22 have totally transform the way we work. schemes to change ways of working been involved in a national • Start the first phase of redesigning spearheaded the Trust’s drive for improvement programme our outpatient department. greater efficiency last year. called the productive ward. • Put a new electronic staff record The schemes, which come under They have been working with system in place. a banner called ‘Project Transform’, the NHS Institute for Innovation • Develop a workforce strategy. are designed to make fundamental and Improvement to improve the improvements. A backdrop of rising reliability and safety of care delivery • Continue to take forward patient expectation, the risk of and improve both staff and patients’ technological solutions to competition, a drive towards greater experience by reducing wasted benefit patient care. clinical effectiveness and service effort, time and resources.Three In addition to maintaining or performance, new technology, the other wards from Royal Liverpool, improving income, our aim is need to reduce costs and plans for Luton and Dunstable and to reduce costs by improving investment have prompted these Basingstoke hospitals have also efficiency.This means continuing radical change programmes. been involved in the project. to develop services to improve the There are seven major change Our team has been working to patient experience but in ways that schemes: redesign the way they deliver care. reduce costs.The changes required • Imaging This has involved the introduction need to be transformational rather of new measurement systems so than incremental.We also need to • Length of stay they are sure that things are take action to make sure that the • Outpatients getting better. scale of the organisation matches our income. • Pathology The progress on ward 22 had •Theatres created a lot of interest internally Last year we made significant • Administration & clerical and externally. Project manager progress in this area, taking forward Liz Ward presented progress to •Estates a range of major Trust-wide projects a group that included the Director as well as some smaller pilots. Project Transform also included of Nursing and Chief Executive for In addition, on-going developments the efforts around workforce the Yorkshire and Humberside in information technology have re-profiling, patient safety Strategic Health Authority. helped improve our efficiency. and estates rationalisation.

The team from ward 22 discuss redesigning the way they work as part of the productive ward initiative.

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Home recovery service Completely filmless Electronic staff records A new initiative called the After the introduction of new digital Electronic staff records (ESR) home recovery service was imaging technology to view x-rays went live at the Trust in October. launched in February. and scans on-line in March 2006, the Trust gradually phased out all x-ray ESR is a single, national system that It enables some patients who have ‘film’ throughout the financial year. enables a consistent approach to undergone joint surgery to go home all aspects of staff administration: earlier than they otherwise would In addition, all GPs can now access • Human resources have.Their care is then continued by x-ray reports electronically, enabling an experienced orthopaedic nurse – them to view patient results quicker. • Payroll usually the same nurse who started •Recruitment their care on the ward. Workforce re-profiling •Work structures • Absence Patients who are medically fit, but, Plans to re-profile staff in line for example, still need one or two with the hospital’s service needs • Learning management tests or who are at greater risk of went ahead after consultation. • Talent management developing a wound infection if they remain in hospital can go The workforce restructuring It automates all the interfaces to home sooner if a specialist nurse was to ensure that the Trust has external agencies such as BACS visits them to support their recovery. the correct numbers of staff with (Bankers Automated Clearing the appropriate level of skill and System) and the Inland Revenue, As part of the work carried out knowledge to provide high as well as to other NHS systems by orthopaedic lead nurse Ann quality, safe patient care. like Contact and the Pensions O’Brien and her team, patients Agency. It moves the emphasis were monitored in November last A thorough review of the workforce from administration – paperwork year and it was found that 17 could identified a need for more general and data preparation – to strategy – have taken advantage of the new nurse grades in order to match recruiting the right mix of staff and scheme had it been in place. the future needs of the service. making sure they are developed, All staff affected were given full challenged and rewarded. Medical evidence suggests that support and there were no where appropriate, patients can compulsory redundancies. make faster progress with their recovery if they are in their own homes.The pilot scheme is being reviewed in June 2007 when, in addition to medical evidence, patients, relatives and carers views will be taken into account.

Senior staff nurse Sarah Goodman talks to patient Paul Rayner just before his discharge. Sarah visited Paul in his home a few days later as part of the new home recovery service.

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Operating financial review

iv. Improving efficiency (continued)

e-recruitment and e-learning Communication Medicines management The increasing use of online Significant changes to the Trust’s The Trust was one of 18 in the recruitment helped achieve an telephone and email systems took country to be judged ‘excellent’ almost 50 per cent reduction in job place in the year. for medicine management by advertising costs. In 12 months the the National Patient Safety Agency. cost fell from more than £158,000 In July a phased introduction to £81,000.The success is largely of NHS email started for all staff. The report showed that the hospital due to the hard work of the The new secure national system rated very well in a number of areas, recruitment team and efforts to allows users to access email from including completeness of medical move to internet recruitment. both a work terminal and also records; preventing allergy related on the internet.The hospital was errors; and ensuring patients on four In addition, a new e-learning one of the first to go live in the or more medicines receive a regular strategy is enabling staff to access country with the system, which comprehensive medication review. training in a more flexible manner. meant some teething problems. It also singled out areas for The pilot was the roll-out of an However, feedback from a survey improvement: informing patients equality and diversity learning of representative staff in January about their medicines and making package delivered to 500 staff. Also, indicated that more than three sure they understand what they a new learning management system quarters of staff said the system are taking it for. is allowing more accurate recording fulfilled their needs and it identified of personal training and education. that confidence in it was growing. Savings through In the future it will allow staff to procurement access training records online. Direct dial numbers were also introduced. Previously the demand The Trust’s procurement workplan for direct dial numbers could not for 2006/07 delivered in year Recycling be met and a high number of calls savings of £469,836. In addition, went through the switchboard. Recycling paper and cardboard as part of a region-wide scoping has saved thousands of pounds exercise to identify examples of and helped the Trust with its drive good practice the external agency to improve its carbon ‘footprint’. Avail Consulting selected the Trust as a reference site for assessing In the first 12 months 100 tonnes of the saving opportunities from best paper and cardboard was recycled, practice supply chain management. saving the hospital £14,000. Furniture and clinical waste recycling has helped save around a further £15,000.Work is now underway to recycle plastics as well.

Moving to greater use of e-recruitment and developing ways for staff to use e-learning programmes have been among the successes of the human resources team in 2006/07.

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v. Creating new income opportunities

Key aims for 2006/07 The department’s continued And a further joint partnership collaboration with the University with the University enabled the • Explore the possibility of of Sheffield enabled the creation of a research initiative to developing our training development of a hand held raise the quality of life for elderly and development. communication device for and disabled people.The Advanced • Take forward plans to develop people with speech disorders. Care Technologies (ACT) an assistive technology and programme aims to promote The project, which is funded by the telecare centre. interaction and partnerships Department of Health, developed between organisations in the region • Look into developing a long-term a device which recognises severely oxygen therapy service. that develop, manufacture, provide disordered speech, even if it is and use assistive and telecare • Begin the development of unintelligible to human listeners. technologies, to support people working relationships with Called VIVOCA (voice input voice with mobility or activity limitations neighbouring primary care trusts. output communication aid), the and those with long-term disabling device works by recognising such conditions. It is hoped the new In addition to taking action to speech and then outputting clear reduce costs and secure existing programme, which was launched speech which conveys the intended in April 2007, will stimulate the income, it is essential the Trust message. Local poet Ian McMillan continues to create and take assistive technology and telecare and TV presenter Christa Ackroyd industry in South Yorkshire. opportunities to develop new provided the male and female services and income streams. voices for the device’s speech. Research and development A £500,000 research project to look into the links between diet “In addition to The research and development in and infection in older people the Trust continued to strengthen also got underway. taking action to as it focused on four key areas: In collaboration with the University reduce costs and • Promoting health and of Sheffield, the research involves modernising services for older more than 200 older people from secure existing people across the health and Barnsley. It is backed by the Foods social care community. Standard Agency and will help to income, it is • Promoting seamless services; understand the importance of food evaluating pathways of care in preventing infections in older essential the between and across service people. Of those over-65s taking providers including primary, part in the study, one group will Trust continues secondary and social interfaces. receive a placebo tablet, one a to create and • The pathogenesis and treatment vitamin or mineral tablet , and a of cardiovascular disorders in third group will receive a weekly take opportunities patients with and without diabetes. delivery of food to their home. The results will be published • Optimising cancer care across in international journals. to develop new networks and multiple service providers. services and income streams.”

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Operating financial review

v. Creating new income opportunities (continued)

Training and development Community dermatology Long-term oxygen The training and development A community based dermatology therapy service department continued to build service started in April. Work towards developing a long- and develop its income streams, term oxygen therapy service started The service – which is based at in areas of vocational training, in the year and further progress is Worsborough health centre as care training and clinical skills expected in early 2007/08. training, helping to offset the well as the hospital – means some delivery of training for staff. patients are now seen closer to their homes. For some conditions patients Diabetes eye screening A leadership management are now seen by GPs who have service in Rotherham and excellence programme a special interest in dermatology, was agreed for launch in 2007. either at the hospital or the centre, A new diabetes eye screening whichever patients prefer. service for Rotherham patients started in March. Senior clinical skills officer, Referrals from GPs across the The service is based at the diabetes Julie Petch, demonstrates borough still come to the hospital but instead of going straight to centre in the grounds of Rotherham venepuncture. This is one Hospital and helps healthcare staff area where the training and the consultant, dermatology staff decide if the patient is best seen spot potential eye conditions in development department diabetes patients, who are naturally has continued to develop by a hospital consultant, GP with a special interest or a specialist nurse. at risk from conditions such and build its income streams. as glaucoma. The GPs with special interests working in the new clinics are The service is provided in Dr Julian Pearce and Dr David Lindop. conjunction with the Trust’s retinal screening team. It is hoped that a mobile service for Rotherham patients can also be provided The Trust’s sterile services in the future. department saw an increase in income last year as more Sterile services external contracts were won. The Trust’s sterile services department saw an increase in income last year as more external contracts were won. In addition to winning work within the NHS, the department is starting to work with the commercial sector.The team won a contract in 2006 and has a pilot contract underway and expressions of interest.

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vi. Working in partnership

Key aims for 2006/07 Strategic options analysis • Continue to work closely with Barnsley’s population and health and Sheffield Children’s NHS Trust. social care needs have altered in the Physiotherapy for patients • Further develop links with The last 40 years. So too has technology, forms a part of the older Rotherham NHS Foundation Trust. people’s health expectations and people’s service at Barnsley. government policy. • Continue to work with Sheffield The service is led by a team Teaching Hospitals NHS For these reasons, the Trust felt of specialists who work Foundation Trust. the time was right for a careful between the hospital and and considered discussion of Sheffield Institute for Studies The Trust currently operates Barnsley’s health care needs between in Ageing. Pictured is John predominantly within the Barnsley the three main organisations which Padgett at a physiotherapy health and social care community. provide health and social care To ensure services are appropriately session in the assessment services.This assessment has been and rehabilitation unit. integrated with primary care, ongoing since Summer 2006. community services and social care it is essential the Trust strengthens The aim is to ensure that services links with Barnsley PCT and Barnsley centre around the needs of the Continued partnerships Metropolitan Borough Council. local population, which we know Our partnerships with Sheffield has increasing numbers of elderly Teaching Hospitals NHS Foundation Work with a range of stakeholders people, a high volume of people was progressed throughout the year. Trust, Sheffield Children’s NHS with long-term conditions and a Foundation Trust and The Rotherham A review of the future of the hospital higher than average smoking rate involved many partners from across NHS Foundation Trust continue to and that these are appropriate for bring benefits for Barnsley patients. the borough and sought to establish the next ten years. the future direction of services. In Some of the services provided addition, strong partnership working jointly include ophthalmology, between the Trust and neighbouring Patient transport services older people’s services, children’s services and chemotherapy. hospitals enabled the provision of A joint exercise with The Rotherham services locally. NHS Foundation Trust to re-tender patient transport services resulted Pathology services in a more efficient and patient- The Trust has been looking at the centred contract. advantages of joint working with The re-tender involved many The Rotherham NHS Foundation stakeholders to ensure the Trust in relation to pathology service met stringent quality services. Benefits have already and performance criteria. been realised through a cross-cover The contract was awarded to arrangement for microbiology and Yorkshire Ambulance Service a joint group has now started to NHS Trust in December. look at a three-year joint business plan, which will consider issues such as information technology and complementary working between the two services.

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Operating financial review

vii. Making a social contribution

Key aims 2006/07 included: hospitals.These are sexual The aim of the day was to show health, obesity and the promotion children and their families how • Looking into the development of healthy diet and nutrition, a low-protein diet could be made of a health and innovation smoking, skin cancer and alcohol. interesting and varied, and to campus in Barnsley. encourage the children to get more • Developing a public Literacy and involved with the management of health strategy. numeracy training their diet and medication. The children prepared their own A number of Barnsley communities Our vocational training three-course meal including a low- have some of the worst health department started the provision protein sundae. For some, it was statistics in the country.The Trust of a government funded three- their first experience of preparing has an opportunity to take action to year programme in ‘skills for life’. foods and trying their hand at reduce health inequalities through The need for literacy and numeracy cooking. Reactions to the day the services it provides and through development for some staff was were very positive. its role as a major employer. identified through a customer Our progress in this area in the last care training programme. Smokefree year has built on previous work to Training is provided in workshop- improve access to care and to create style classes and run by a specialist The Trust became smokefree further opportunities to promote tutor from Barnsley College. across the whole of its property and healthy lifestyles. The main aim of the courses grounds on March 31 and smoking is to allow employees to gain anywhere on the site ceased with Public health strategy a formal qualification. the smoke-free policy taking effect on 1 April 2007. Work to develop a public health strategy has been ongoing Learning suite The Smokefree Hospital Group worked to make the transition throughout the year. Funding of £45,000 from Connecting as smooth as possible and their for Health enabled the start of the An action plan was agreed by actions included raising awareness development of a South Yorkshire the Board in January and there around the site with patients and information technology suite in the have already been a number of staff, stop smoking sessions for staff, Trust’s education centre.This has achievements, including a decision and nicotine replacement therapy enabled us to equip three rooms to appoint a corporate lead for for staff, volunteers and contractors. public health, collaboration with with dedicated PCs, increasing the Barnsley Primary Care Trust and capacity from 12 to 35 internet- Two smoking cessation support becoming an active partner in the ready computers. workers funded by Barnsley Primary PCTs ongoing Fit For The Future Care Trust will also be employed public health campaign. Involving children until March 2008. Taking into account the key drivers with their diet for public health engagement – Children diagnosed with inborn such as national health improvement errors of protein metabolism plans, strategies and standards – from Barnsley and Sheffield were the Trust has also developed an involved in a hands-on cookery day action plan which focuses on key run by the community dietitians. areas of public health for acute

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The new learning suite in the education centre (below) opened in 2007. The facility has given the centre a greater capacity for computer-based learning.

Sexual health is one of the focal points in the Trust’s public health strategy (right).

The Trust became smokefree on 1 April 2007. To help patients, visitors and staff with the transition, two smoking cessation support workers – funded by Barnsley Primary Care Trust – are being employed until the end of March 2008.

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Operating financial review

viii. Financial overview

In its second year as a Foundation As a result of the agreement for The cash position of the Trust Trust, our main financial priority 2006/7, a compromise was reached is relatively strong and this in has been to work with our host on the total value of the services part reflects some delays on the commissioner Barnsley Primary provided by the Trust.This income, capital programme during the Care Trust (PCT) to develop a when complemented by a year of year. Project management has better understanding of the strong budgetary control by clinical been strengthened to reduce the impact of its commissioning management teams and support likelihood of slippage on the capital intentions on the Trust. department budget holders, has programme occurring in 2007/8. allowed the Trust to break-even. In line with government policy Based on the commissioning the PCT is seeking to strengthen The Trust successfully reduced its intentions of Barnsley PCT, its primary care services which is costs by 3% in year and its costs the Trust expects to see a small likely to reduce outpatient referrals are over 4% less than the national increase in income for 2007/8 to to the hospital over the next three average for acute hospitals. reflect increased activity to meet years. It is also seeking to reduce the national target for reduced the number of follow-up The Trust spent £5.5 million on waiting times for inpatient elective consultations, to reduce the level capital investment in the year. procedures. However, income is of referrals between consultants The main schemes comprised: then projected to reduce due to for related conditions where the • Increased investment of over a reduction in outpatient activity. patient has not been referred back £800,000 in medical and The Trust is seeking to expand its to the GP and also to seek prior surgical equipment. services to other PCTs in recognition approval for any over-performance • Over £700,000 in picture of this projection. of elective activity. archiving (PACS). Implementing these changes within • Maintenance of estate the overall policy of patient choice infrastructure, £750,000. and the new financial framework in • Information management which the Trust’s funding is directly technology, £500,000. related to the number of patients • Refurbishment of the seen has been challenging and the aseptic suite, £400,000. Trust and the PCT were in dispute over the 2006/7 contract until • Health and safety, £350,000. January. However, by the end of the • Bed modernisation and ward year the Trust and the PCT reached refurbishment, £550,000. agreement on the way forward for both the 2006/7 and 2007/8 contractual years. “The Trust successfully reduced its costs by 3% in year and its costs are over 4% less than the national average for acute hospitals.”

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Governing Council

As a NHS Foundation Trust, Barnsley Hospital is accountable to the Governing Council which represents the views of members.

The Governing Council includes and otherwise supports the The progress of each sub-group 20 Public Governors elected by Trust in its strategic development is highlighted below: members of the Foundation Trust. (business plans etc) and issues It also has six Staff Governors elected such as the recently revised The access and patient interface by hospital staff.They are joined by membership strategy and group focussed on patient and nine nominated representatives participation in the proposed public involvement initiative from our partner organisations. national forum of Governors. to ask members and the public about their views on visiting hours. The Board of Directors and There were five Governing As part of this review, the Governors Governing Council enjoy a Council meetings held in 2006/07. supported the Board of Directors strong, and developing, working This includes the Annual General to vary visiting times. relationship. Mr Gordon Firth (Trust Meeting of the Trust. Each Governors’ Chair) chairs both the Board and the attendance is marked in brackets The hospital’s environment, Council and acts as a link between after their names in the constituency staff and workforce group worked the two. Each is kept advised of the list below. Attendance by Board closely with the Improving Working other’s progress through a number Directors – which is at the invitation Lives group as the Trust progressed of systems, including informal of the Governing Council – was: its aim to achieve Practice Plus accreditation.The group has also updates (eg via the Chairman, Anne Arnold (1) ad hoc briefings) and exchange taken a keen interest in the of meeting minutes etc. Gordon Firth (5, and also regular approach to workforce strategy attendance at many of the sub- development and has continued A joint meeting of the Board and the group meetings) to develop links with the smoking Governing Council also takes place Juliette Greenwood (1, and also cessation group (now the Smoke at least once annually for a business attended a sub-group meeting) Free Hospital Group) and the meeting. Informal evenings and Patient Environment Action ‘Q&A’sessions also facilitate closer David Hicks (1, and also Team (PEAT) inspections. working.There is an open invitation attended an awareness session) for Governors and Directors to Jeremy Loeb (1, and also The hospital’s future and healthy attend each other’s public meetings attended an awareness session) lifestyles group strengthened links with young people and started to and Directors are often in attendance Frank Johnston (1) at Governing Council meetings, progress work to seek their views Pat Newman (no Governing awareness sessions and sub-group around service development. Council meeting but attended meetings to provide updates or seek The group also organised a tour three sub-group meetings) Governor’s views on specific issues. around the hospital for young In turn, any questions or comments Jan Soberiaj (3) people. Its work with Barnsley Youth Council and Connexions to from the Governors are relayed to Paul Spinks (0) host a live band and disco event Directors both informally via the Robb Walker (1) Chairman or Secretary to the Board last year was recognised by the and more formally as proposals Sarah Wildon (2 and also BT Seen and Heard awards as a to the Board of Directors. attended a sub-group meeting) regional example of excellence for work in involving young people The Governing Council has to The Governing Council considered in decisions on how services are date dealt with a range of issues the strategic development of the delivered.The group also started to charged to it under current hospital through its work in three look into the strategic development legislation (eg appointment of Non- sub groups. of branding for the Trust. Executive Directors and Auditors)

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Governing Council

As a result of its work throughout and a survey was conducted with Cleanliness and infection – the year, the Governing Council patients and members to seek their to increase the public’s awareness made two major proposals to the views.The results of the survey of the importance of infection Board of Directors, in addition to informed the Board that the control and cleanliness and to many other suggestions.These were: majority of respondents felt more consider revisiting the need for clinical time would be better for staff changing areas in order Consultation on visiting hours – patients and staff.The Board agreed to improve infection control. suggested by the access and patient to shorten afternoon visiting hours interface group, this proposal was from 1 May 2007. endorsed by the Board of Directors

The Governing Council is made up as follows:

Constituency A Constituency B Constituency C Constituency D Constituency E Covering the electoral Covering the Covering the Covering the electoral Covering the wards of Dodworth, electoral wards electoral wards wards of St Helen’s, electoral wards of Hoyland Milton, of Darton East, of Stairfoot, North East,Cudworth, Darfield, Dearne North, Penistone East Darton West Central, Kingstone Monk Bretton Dearne South and and Rockingham. and Old Town. and Worsbrough. and Royston. Wombwell. Cecil Horsfield Sue Carter Valerie Atkinson (Dr) Sheikh Amin John Cale (5 of a possible 5) (4 of a possible 5) (0 of possible 1) (3 of a possible 5) (3 of a possible 4) appointed 1 January appointed 1 January appointed until appointed 1 January appointed until 31 2006 for three years 2007 for three years 31 December 2007 2005 for three years. December 2006. (second term). (second term). (resigned from the post summer 2006). Jan Anderson John Davies Carol Robb Lesley Cotton (5 of a possible 5) (1 of a possible 1) (5 of a possible 5) (2 of a possible 5) Sharon Hodgson appointed 1 January appointed 1 January appointed 1 January appointed 1 January (5 of a possible 5) 2007 for three years 2007 for three years 2006 for three years. 2006 for three years appointed 1 January (second term). (second term, non- (second term). 2007 for three years continuous). Joseph Unsworth (second term). Pauline Brown (5 of a possible 5) Sue Mellor (2 of a possible 5) Denis Gent appointed 1 January (3 of a possible 5) Bob Ramsay appointed 1January (5 of a possible 5) 2005 for three years. appointed 1 January (4 of a possible 5) 2007 for three years appointed 1 January 2005 for three years. appointed 1 January (second term). 2005 for three years. Jeanette Worsfold 2006 for three years (1 of a possible 1) (second term). Mavis Micklethwaite Wayne Kerr appointed until (4 of a possible 5) (4 of a possible 5) 31 December 2006 Kay Thomas appointed 1 January appointed 1 January (resigned from the (1 of a possible 1) 2005 for three years. 2007 for three years post summer 2006). appointed 1 January (second term). 2007 for three years. David Thomas Vacancy from (3 of a possible 5) – Brian Whitaker 1 January 2007. appointed 1 January (4 of a possible 5) 2006 for three years appointed 1 January (second term). 2006 for three years.

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Out of area Governor Darren Holmes Rosamond Roughton (3 of a possible 4) – volunteers – (0 of a possible 0) took up office Covering people who live outside the appointed until 31 December 2006. at the advent of the newly formed borough across England and Wales: Yorkshire and the Humber Strategic Vanda Outram Bill Joice Health Authority, which replaced (0 of a possible 1) – volunteers – the SYSHA as stakeholder.* (5 of a possible of 5) – appointed appointed 1 January 2007 for 1 January 2005 for three years three years. Professor Nigel Bax (4 of a possible 5) – Staff Governors Nominated Governors University of Sheffield. Covering all staff groups (clinical Councillor David Bostwick David Brannan support, medical, non clinical (1 of a possible 4) took over from (5 of a possible 5) – support, nursing and volunteers): Councillor John (Inky) Thompson Voluntary Action Barnsley. Viv Mills (0 of a possible 1) in June 2006 – The terms of office of the Public (4 of a possible 5) – clinical support Barnsley Metropolitan and Staff Governors in the first – appointed 1 January 2006 for Borough Council. elections were determined by the three years. Lynne Elliot independent appointing officer. (0 of a possible 0) took over from All new terms of office are now (Dr) Jon Maskill for three years. (5 of a possible 5) – medical and Carrie Neville (0 of a possible 5) in February 2006 *Low attendance due to internal dental – appointed 1 January 2005 restructuring for these organisations. for three years. – Barnsley Participation Process.* Matthew Ward Pauline Acklam MBE Register of interests (1 of a possible 4) – non-clinical (1 of a possible 1) took over from support – appointed until Kathy Bostwick The register of Governors’ interests 31 December 2006. (1 of a possible 4) in October 2006 – is available from Carol Dudley, Barnsley Primary Care Trust. the Secretary to the Board at Jill Marshall Barnsley Hospital NHS Foundation Clare Archer (1 of a possible 1) – non-clinical Trust, Gawber Road, Barnsley (3 of a possible 5) – support – appointed 1 January 2007 S75 2EP.Tel: 01226 435000. for three years. Barnsley Youth Council. There are no company directorships Professor Linda Lang Andy Mills held by Governors where companies (2 of a possible 5) – (4 of a possible 5) – nursing and are likely to do business or are Sheffield Hallam University. midwifery – appointed 1 January seeking to do business with 2006 for three years. Geoff Dalton the Trust. Carol Smith (1 of a possible 4) to December (2 of a possible 5) – nursing and 2007. New nominee invited – Expenses South Yorkshire Ambulance Service midwifery – appointed 1 January Governors may claim expenses 2005 for three years. NHS Trust (latterly Yorkshire Ambulance NHS Trust). at public transport rate for travel at 23p per mile and other reasonable Sue White expenses incurred on Trust business. (0 of a possible 3) – South Yorkshire Otherwise they are not remunerated. Strategic Health Authority (SYSHA) to April 2006.

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Board of Directors

The Trust is managed by full-time Executive and part-time Non-Executive Directors. Together they make up the Trust’s Board of Directors.

When the hospital became a The effectiveness of the Board NHS Foundation Trust in January committees (Audit, Finance and 2005, the Non-Executive Directors Governance) is considered on transferred directly to the Board an ongoing basis via the regular of Directors.Their appointments reports presented to the Board of were for either the unexpired Directors at their monthly meetings. period of their terms of office or 12 They are also monitored through months, whichever was the longer. the Trust’s audit processes. The future appointment of Non- So far as the Directors are aware, Executive Directors has been by there is no relevant audit information the Governing Council.The removal of which the auditors are unaware of a Non-Executive Director requires and the Directors have taken all of the approval of three-quarters of the steps that they ought to have the Governing Council.The period taken as Directors in order to make of notice for Non-Executives is themselves aware of any relevant one month. audit information and to establish that the auditors are aware of Our Executive Directors are that information. appointed through open competition in accordance There were 14 Board of Directors with the Trust’s recruitment and meetings in 2006/07.This includes selection policies and procedures. the Annual General Meeting.The The period of notice for Executives individual attendance of each Board is 13 weeks.The Board of Directors member is indicated in brackets. is responsible for all operational issues, the management of which Anne Arnold (11 of a possible 14) is delegated to the Trust’s Gordon Firth (14 of a possible 14) operational staff in accord with its Juliette Greenwood (12 of a possible 14) Standing Orders. It also, with input David Hicks (13 of a possible 14) from the Governing Council, sets the strategic direction of the Trust. Frank Johnston (11 of a possible 14) Sally Light (2 of a possible 2) Jeremy Loeb (14 of a possible 14) Pat Newman (12 of a possible 14) Jan Sobieraj (10 of a possible 10) Paul Spinks (3 of a possible 3) Cris Swinhoe (4 of a possible 5) Robb Walker (10 of a possible 11) Sarah Wildon (9 of a possible 9)

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Left to right – Frank Johnston, Anne Arnold, Paul Spinks, Pat Newman, Dr David Hicks, Juliette Greenwood, Jeremy Loeb, Sarah Wildon and Gordon Firth.

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Board of Directors

Chairman: Gordon Firth Acting Chief Executive Nationally, he is a member of the Monitoring and Verification Board Gordon joined the Trust as from 1 December 2006: Dr David Hicks of the government’s National chairman in November 1998. Training Strategy for Town and A Fellow of the Royal Institution David took up his role as acting Parish Councils and the Chief of Chartered Surveyors, he is the Chief Executive on 1 December 2006. Verifier for the Certificate in managing partner of a Barnsley- Local Council Administration, based construction consultancy firm He has been the Medical Director the professional qualification and a Director of a development since 2002 and the Associate for town and parish clerks. company. He has also served as a Medical Director since 1997. Non-Executive Director of Barnsley He is the Deputy Chairman and He has been a consultant in genito- Health Authority. Gordon also the Trust’s Governance Committee urinary medicine at the Trust and chairs the Governing Council. chairman. He was appointed as the Royal Hallamshire Hospital since Deputy Chairman on January 1 His appointment is until 1983. David is also a Fellow of the 2007 and acts as Senior Independent 31 December 2008. Royal College of Obstetricians and Director. His appointment is until Gynaecologists and also of the 31 December 2007. Royal College of Physicians. Chief Executive to Pat Newman November 30 2006: Non-Executive Directors: Pat joined the Trust in February Jan Sobieraj 2002 as a Non-Executive Director. Anne Arnold Jan took up his role as Chief She has worked in private industry Anne joined the Trust in December Executive in January 2001, previously and the public sector where she 2004. She has extensive experience having held the same position at specialised in human resources working with the NHS as a senior a NHS trust in Lincolnshire. Earlier and training. posts in the NHS include Director manager and more recently as a and Deputy Director of Trusts in management consultant and carer. Pat has been involved in community Bassetlaw and Leicester. Anne is an MBA graduate and development for many years with qualified accountant. She took up particular interest in education In addition to his health service the post of chairman of the Audit and health issues being particularly experience he has also held Committee on 1 April 2005. involved with the Neighbourhood a number of senior general Learning Net and the Bridging the She is appointed until management positions in Gap scheme aimed at socially 31 October 2009. housing and the private sector. excluded young people in collaboration with the PCT. Jan left the Trust to take up a new Frank Johnston Frank, a Member of the Institute appointment in November 2006. Currently she is Chair of Governors of Directors, joined the Trust in of Athersley North Primary School February 2002 as a Non-Executive and a member of the Transitional Director. He is a barrister-at-law, Governing Body for the Advanced non practising, with a legal, public Learning Centre and a board and voluntary sector background. member of the Royston and Locally, Frank is vice chairman of Carlton Community Partnership. the corporation of Barnsley College, a co-opted member of Barnsley Pat’s Board responsibilities cover Metropolitan Borough Council’s the integration of health and social audit committee, a member of the care, women’s and children’s services, Independent Education Appeals and public and patient involvement. Tribunal and Cawthorne Parish Clerk. She is also chair of the Improving Working Lives steering group. She is appointed until 31 December 2007.

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Paul Spinks Executive Directors: Cris Swinhoe Paul joined the Trust in January Acting Medical Director 2007 and chairs the Finance Juliette Greenwood Committee and Information Nursing Director Cris took up his role as Acting Medical Director on 1 December Strategy Steering Group. He is a Juliette joined the Trust in January qualified chartered accountant 2006. He has twice held Clinical 2005. In her 25-year career in the Director posts in critical care and working for a firm of accountants NHS she has held a variety of roles where he specialises in the audits been a consultant anaesthetist at in nursing and management. the hospital for ten years. of public sector bodies, particularly Her specific areas of interest are in the NHS and local Government. leadership development, multi- Following 14 years service in Paul is a member of the Public professional team development the Armed Forces as a doctor Sector Reporting Panel at the ICAEW and new ways of working which Cris worked in Barnsley as an and the Public Audit Forum Working are linked to advancing practice, anaesthetic registrar in 1992. Group on Whole of Government nurse education and the patient’s He returned to Barnsley as a Accounts. He is appointed until experience. Juliette is a practitioner consultant in 1996. His special 31 December 2009. panelist for the Nursing and interest is intensive care medicine. Midwifery Council and also a Robb Walker Quality Assurance Agency reviewer. Register of interests A former senior banker, Robb was Deputy Chairman of the Sally Light The register of Directors’ interests Trust’s Board of Directors. He was Director of Strategy is available from Carol Dudley, the involved in the financial aspects and Service Development Secretary to the Board at Barnsley Hospital NHS Foundation Trust, of the Foundation Trust and was Sally joined the Trust in 2002 from Gawber Road, Barnsley S75 2EP. the chair of the Finance Committee. the Modernisation Agency where Tel 01226 435000. He was also involved in our care of she worked for two years as service the elderly services. improvement manager. Prior to that There are no company directorships Robb retired from the Trust she held a senior management held by Directors where companies in December 2006. position with Manchester Health are likely to do business or are Authority and has worked in the seeking to do business with Sarah Wildon NHS since 1979. the Trust. Sarah joined the Trust in August 2006. She is a public relations Sally left the Trust to take up a new consultant with more than 30 years appointment overseas in June 2006. public and private sector practice. Jeremy Loeb Her public sector experience Director of Finance includes working directly to ministers, policy development, Jeremy was appointed Director of governance and marketing. Finance in August 1999. He joined the Trust from the Northern General She runs her own public relations Hospital in Sheffield where he was consultancy, based in Huddersfield, the Deputy Director of Finance. and is a member of the Chartered Institute of Public Relations. She is A chartered accountant, Jeremy has appointed until 31 December 2008. considerable experience in both the public and private sectors. All Non-Executive Directors are independent.

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Committees

Audit Committee Finance Committee Governance Committee The audit committee’s main duties The finance committee provides The governance committee assures are to review the Trust’s governance, assurance to the Board that Board that the structures, processes and risk management and internal members have an adequate policies and procedures are in place control systems, review the work of understanding of key financial issues. to provide the framework to support the internal and external auditors, In particular it reviews financial plans an environment in which excellent review assurance functions, request and issues, approves reports to clinical care flourishes. It also ensures and review reports and assurance, Monitor, approves the development that any issues are managed and approve accounting policies and of financial reporting consistent with escalated appropriately and that review the draft annual financial the Foundation Trust’s financial actions are taken. statements before submission to regime, oversees the development the Board of Directors. and implementation of the financial There were 8 governance information systems strategy and committee meetings held There were six audit committee approves financial policies. in 2006/07. Board members’ meetings in 2006/07. Members’ attendance at each is indicated attendance is indicated in brackets There were 12 meetings of the in brackets after their name. after their name. finance committee in 2006/07. Members’ attendance is indicated Members Members in brackets after their name. Chairman: Frank Johnston Non- Chairman: Members Executive Director (8 of a possible 8) Anne Arnold (6 of a possible 6). Gordon Firth Chairman * Gordon Firth Chairman (0 of a possible 8**) Non-Executive Directors: (12 of a possible 12). Pat Newman Non-Executive Pat Newman (1 of a possible 1) Anne Arnold Non-Executive Director (8 of a possible 8) from February 2007. Director (9 of a possible 12). Juliette Greenwood Director of Paul Spinks (1 of a possible 1) Dr David Hicks Acting Chief Nursing (5 of a possible 8) from January 2007. Executive (2 of a possible 4) *** from 1 December 2006. Dr David Hicks Acting Chief Robb Walker (5 of a possible 5) Executive – from December 2006 to 31 December 2006. Sally Light Director of Strategy (6 of a possible 8) and Service Improvement Executive Director: (1 of a possible 2) to 9 June 2006. Jeremy Loeb Finance Director Jeremy Loeb (5 of a possible 6). (6 of a possible 8) Jeremy Loeb Director of Finance Dr Cris Swinhoe Acting Medical New auditors PricewaterhouseCoopers (12 of a possible 12). Director – from December 2006 were recommended for appointment Robb Walker Non-Executive (2 of a possible 2) by the committee.The Governing Director (9 of a possible 9) Council supported the to 31 December 2006. Jan Sobieraj Chief Executive (to 30 recommendation, and they were November 2006) (4 of a possible 6) Jan Sobieraj Chief Executive appointed from 1 April 2006 for a (7 of a possible 8) to period of three years. A Governor 30 November 2006. * Took over as Chairman was involved throughout the after Mr Walker’s retirement. tendering process. Paul Spinks Non-Executive Director **Attendance is by request only. (3 of a possible 3) *** Previously attended as Medical Director. from 1 January 2007.

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Nomination Committee The nomination committee is responsible to the Governing Council for making recommendations in relation to the appointment and appraisal of the chairman and Non-Executive Directors.It also reviews their terms and conditions. There were two new Non-Executive Director appointments in 2006/07. Both were appointed following open advertising. A further Non-Executive Director was re-appointed during the year.

Members Chairman: Gordon Firth Public Governors: Jan Anderson Bob Ramsay Joseph Unsworth Staff Governor: Dr Jon Maskill Partner Governors: David Brannan Professor Linda Laing There were five meetings held in 2006/07. Non-Executive Director Robb Walker attended one and while not an Executive Director, Susan Tyler, Director of Human Resources was in attendance at most of the meetings in an advisory capacity.

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Membership

In line with our membership strategy, membership numbers were maintained at around 12,500 during the year.

To be eligible for membership, Membership at the end of the Membership is still split evenly people must either: year breaks down as: across the constituencies, largely mirroring the overall constituency • Be employed by the Trust with Public populations. Membership levels a permanent contract or have are maintained through regular worked at the hospital for at least Constituency A 2215 Constituency B 1565 recruitment drives in the hospital, 12 months or on a series of short- via the Governors and through FTi. term contracts which total more Constituency C 1836 than 12 months. Becoming a staff Constituency D 2229 Ethnic minority membership is member is automatic, with a Constituency E 1413 still proportionately slightly lower choice to opt out if they wish. Constituency O 485 than the census data and a drive Volunteers are included within the Staff to increase numbers is planned. staff constituency and contracted Monitoring of membership activity staff have the option to opt in. Clinical support 419 now takes place quarterly. Emerging Medical 209 themes will be presented to the • Live within the Barnsley Non clinical support 739 Governing Council and Board. Metropolitan Borough – which is Nursing 1268 broken into five constituencies. Volunteers 219 Governors continued to play a lead role in strengthening links • Or live in all other areas of Details of the constituency with members through their England and Wales.This element boundaries can be found in constituencies as well as awareness of the constitution was introduced the section on Governors. and recruitment drives throughout in April 2006.The Trust changed it the year.This included staffing a from ‘patient or their carer at the stand at the town’s Mayor’s Parade, hospital since October 2001’ as it Maintaining our membership where they handed out leaflets and was conscious that this debarred talked to people about becoming a number of applicants from Maintaining and engaging a diverse a member of the Trust. membership. and representative membership As representatives of the members, Anyone at and over the age of 14 which reflects the local population continued to be a focus for the Trust. they also took part in a patient is eligible to become a member. and public involvement event Members can contact Governors Members received quarterly at the Trust in December.This was and Trust representatives through editions of FTi, the public members’ instrumental in setting the Trust’s the Governors’ and Members’ newsletter, and a summary version strategic direction of patient and offices.This information is published of the annual report; and through public involvement. internal communications staff in the quarterly members’ A membership strategy was newsletter FTi and on the website. members were kept informed. The Trust’s website continues launched in January 2007. to be a focus for all members. It focuses on recruitment initiatives and retention and management of members.

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Public interest disclosures

As a public benefit corporation, Barnsley Hospital NHS Foundation Trust discloses the following about its activities and policies:

Communicating with staff Disabled employees Our sickness absence policy and and equal opportunities redeployment processes ensure Throughout the year we used all our that the organisation makes every usual channels of communication The Trust has an equal opportunities effort to make sure employees with staff – intranet, email, monthly policy statement and meets the can stay in employment if they team briefings, newsletter, special disability symbol criteria. Advice to become disabled. bulletins, email and telephone managers who are responsible for questions, development sessions, employing staff is provided by our Every member of staff has an Director walk rounds covering every human resources department and annual appraisal and a personal area and department and Chief all appointing managers are trained development plan helping with Executive lunchtime sessions with in the equal opportunities issue. training, career development staff – to inform staff about issues We also use the disability ‘two ticks’ and promotion. relevant to them and how their symbol in all our advertisements work and ideas could have an and our application forms seek to Health and Safety impact on the Trust’s performance. identify people who have disabilities 86% of staff (2066) had health and their special requirements. And as well as these regular and safety training last year, either Where disabled people meet the channels of communication, as part of their updated annual essential skills requirements for a job staff side representatives are also course or as part of induction. and are interviewed, we undertake involved in regular meetings with workplace risk assessments and, managers and discuss issues which Major changes with fire safety were where appropriate, adapt the affect staff interests. taken to ensure compliance with workplace before appointment. the Regulatory Reform (Fire Safety) We consulted with staff on three Order 2005, which came into force in The Trust utilised the NHS Core policies – becoming smoke-free, October 2006. Fire marshal training Learning Unit’s ‘Respect the People the Disability Equality Scheme was undertaken, with 25 lectures Programme’ to deliver electronic and the Race Equality Scheme. and 246 staff attending and a new diversity training. It also consulted Comments were received on all fire manual was designed and issued and published a Disability Equality three policies and these were to all wards and departments. Scheme in December. published as final documents The Trust took a proactive approach during the year. A draft gender Last year the Trust established to health and safety with a new equality scheme also went out to a permanent Diversity in format of the Health and Safety consultation at the end of the year. Employment Group which involves Committee and Health and Safety All consultation documents were Trust staff, Directors, managers and Governance Steering Group. published on the Trust’s internal representatives of outside equality website and advertised via the and diversity agencies.The Trust has There were no prohibition or regular communication channels. received support and advice from improvement notices service the Barnsley Black and Ethnic on the Trust during the year. Minority Initiative (BBMEI).

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Occupational health Investments made in Public consultations There were 376 referrals to the 2006/07 to deliver value An informal consultation of occupational health team from for money members’ and the public’s view Barnsley Hospital – 45 less than Investments were made during the on visiting hours took place in the year before. year in the following areas as part February.The results of the survey of the Trust’s plant replacement informed the Board that the The occupational health department majority of respondents felt more has continued to provide a high programme to ensure the estate infrastructure is fit for purpose clinical time would be better for quality cost effective service in a patients and staff. year when its staffing levels have and meets modern standards. fluctuated.The department also • Energy management £48,000 In addition, the Trust took part appointed a mental health nurse • Water chlorifiers £93,000 in a strategic options analysis in in the year and it also continues conjunction with Barnsley Primary to provide service contracts to • Replacement chillers £93,000 Care Trust, Barnsley Metropolitan organisations outside of the Trust. • Water infrastructure £84,000 Borough Council, the Local Medical Committee and Yorkshire and the It is anticipated the investment Humber Strategic Health Authority. Countering fraud in these areas will improve the The review looked at the future and corruption efficiency and effectiveness of direction of hospital services in the Trust’s energy and water Barnsley and is reported in detail The Trust has a detailed fraud consumption, working in parallel in the operating and financial and corruption policy and response with the energy awareness review section. plan, covering the Board’s policy, campaigns and recycling schemes. the roles and responsibilities of The Trust also consulted on staff at the hospital, how the Trust becoming a smokefree organisation, responds in the event of fraud Payment practice the Disability Equality Scheme and allegations and guidance for staff. The Better Payment Practice Code the Race Equality Scheme. In the last year there were no requires the Trust to aim to pay all reported major cases of fraud valid non-NHS invoices by the due at the hospital. date or within 30 days of receipt of goods or a valid invoice, whichever is later. Our performance in this area last year was: Number of bills paid: 35142 Number of bills paid in 30 days: 32977 % of bills paid in 30 days: 94% There was no interest paid under the Late Commercial Debt Payments Act during the year.

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Public interest disclosures

Public and patient External auditor involvement The external auditor was Listening to and acting on PricewaterhouseCoopers our patients’ views remains a who were appointed by fundamental part of the way the Governing Council. we work. The audit services cost £57,575 Involvement ranges from active including VAT for the year. Other and formal participation in groups than the statutory accounts, no at service level – such as our labour other work has been undertaken suite forum where we listen to the by the auditors. views of new mothers to make sure we’re continually developing in line Private patient income with their needs – to national for 2006/07 independent surveys as well as keeping our patients and the Private patient income for 2006/07 public advised of the latest was 0.034% if the total income. developments at the hospital and The private patient cap is 0.1%. feedback from their Governors through a quarterly newsletter, Going concern FTi, which goes to members. After making enquiries, the Management costs Directors have a reasonable expectation that Barnsley Hospital Management costs for the year were NHS Foundation Trust has adequate £5,671.683 and these have been resources to continue in operational calculated in accordance with the existence for the foreseeable future. Department of Health’s definitions. For this reason, we continue to adopt the going concern basis in preparing the accounts.

“Listening to and acting on our patients’ views remains a fundamental part of the way we work.”

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Remuneration report

The Remuneration and Terms of Service Committee is responsible for approving the remuneration and contractual arrangements of Executive Directors.

Membership 2006/2007 Executive Directors of the Trust No significant awards were made have defined annual objectives to past senior managers during Chairman: agreed with the Chief Executive. 2006/2007. Mr G E Firth A report on their performance The salary and allowances of senior Non-Executive Directors: is received by the Committee managers are included in note 5.3 Miss A Arnold annually.The performance of in the annual accounts. Mr F Johnston Directors is not linked to pay. Mrs P Newman Executive Directors are appointed The remuneration committee Mr P Spinks from 1 January 2007 through open competition in met three times during the year. Mr R Walker to 31 December 2006 accordance with the Trust’s Members’ attendance is in brackets: Ms S Wildon from 1 August 2006 recruitment and selection policies Anne Arnold (3 of a possible 3) Chief Executive: and procedures and NHS guidance, Gordon Firth (3 of a possible 3) Mr J Sobieraj to 30 November 2006 including the requirement for Frank Johnston (2 of a possible 3) Dr D Hicks from 1 December 2006 external assessors. All Executive Secretary (in attendance): Directors covered by this report Pat Newman (2 of a possible 3) Mrs S Tyler hold appointments which are Jan Sobieraj (2 of a possible 3) permanent until they reach Paul Spinks (0 of a possible 0) The Trust has no policy statement the normal retiring age. on the remuneration of senior Robb Walker (3 of a possible 3) * managers but its standing Non-Executive Directors are Sarah Wildon (0 of a possible 0) financial instructions state that appointed by the nominations committee, a sub-group of the *Senior managers are defined as the Executive the Committee will make such and Non-Executive Directors of the Trust. recommendations to the Board Governing Council.The committee on the remuneration and terms is supported by appropriate advice of service of Executive Directors and guidance from a human (and other senior employees) to resources specialist. If appropriate, ensure that they are fairly rewarded the nomination process may also for their individual contribution to include the services of another the Trust – having proper regard to external agency and such other D. A. Hicks the Trust’s financial circumstances independent expert as may be Acting Chief Executive and performance and to the considered necessary. 6 June 2007 provisions of any national arrangements for such staff, where appropriate.

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Statement of Accounting Officer’s responsibilities

The Health and Social Care In preparing the accounts, the The accounting officer is (Community Health and Standards) Accounting Officer is required responsible for keeping proper Act 2003 states that the Chief to comply with the requirements accounting records which disclose Executive is the Accounting Officer of the NHS Foundation Trust with reasonable accuracy at any of the NHS Foundation Trust. Financial Reporting Manual time the financial position of the The relevant responsibilities of the and in particular to: NHS Foundation Trust and to Accounting Officer, including their • observe the Accounts Direction enable him to ensure that the responsibility for the propriety and issued by Monitor, including accounts comply with requirements regularity of public finances for the relevant accounting and outlined in the above mentioned which they are answerable, and for disclosure requirements, and Act.The Accounting Officer is the keeping of proper accounts, are apply suitable accounting policies also responsible for safeguarding set out in the Accounting Officers’ on a consistent basis; the assets of the NHS Foundation Memorandum issued by the Trust and hence for taking Independent Regulator of NHS • make judgements and estimates reasonable steps for the prevention Foundation Trusts (‘Monitor’). on a reasonable basis; and detection of fraud and • state whether applicable other irregularities. Under the Health and Social Care accounting standards as set out in (Community Health and Standards) the NHS Foundation Trust Financial To the best of my knowledge and Act 2003, Monitor has directed Reporting Manual have been belief, I have properly discharged Barnsley Hospital NHS Foundation followed, and disclose and explain the responsibilities set out in Trust to prepare for each financial any material departures in the Monitor’s NHS Foundation Trust year a statement of accounts in the financial statements; and Accounting Officer Memorandum. form and on the basis set out in the Accounts Direction.The accounts • prepare the financial statements are prepared on an accruals basis on a going concern basis. and must give a true and fair view of the state of affairs of Barnsley Hospital NHS Foundation Trust and of its income and expenditure, total D. A. Hicks recognised gains and losses and Acting Chief Executive cash flows for the financial year. 6 June 2007

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Auditor’s opinion and certificate

Independent Auditor’s Report to the are aware of from our audit of the financial We planned and performed our audit Board of Governors of Barnsley Hospital statements.We are not required to consider, so as to obtain all the information and NHS Foundation Trust nor have we considered, whether the explanations which we considered Accounting Officer’s statement on internal necessary in order to provide us with We have audited the financial statements control covers all risks and controls.We are sufficient evidence to give reasonable of Barnsley Hospital NHS Foundation Trust also not required to form an opinion on the assurance that the financial statements are for the year ended 31 March 2007 which effectiveness of the NHS Foundation Trust’s free from material misstatement, whether comprise the Income and Expenditure corporate governance procedures or its risk caused by fraud or other irregularity or error. Account, the Balance Sheet, the Statement and control procedures. In forming our opinion we also evaluated of Total Recognised Gains and Losses, the the overall adequacy of the presentation Cashflow Statement and the related notes. We read other information contained in of information in the financial statements. These financial statements have been the Annual Report, and consider whether prepared in accordance with the it is consistent with the audited financial Opinion accounting policies set out therein. statements.This other information includes the Operating and Financial Review and In our opinion: Respective Responsibilities Remuneration report.We consider the • the financial statements give a true and of Directors and Auditors implications for our report if we become fair view, in accordance with the NHS aware of any apparent misstatements or The Foundation Trust is responsible for Foundation Trust Financial Reporting material inconsistencies with the financial preparing the Annual Report and the Manual, of the state of affairs of Barnsley statements. Our responsibilities do not financial statements in accordance with Hospital NHS Foundation Trust as at extend to any other information. directions issued by the Independent 31 March 2007 and of its income and Regulator of Foundation Trusts (‘Monitor’) In addition we report to you if, in our expenditure for the year then ended; under the Health and Social Care opinion, the NHS foundation trust has • the financial statements have been (Community Health and Standards) Act 2003. not kept proper accounting records, properly prepared in accordance with the Our responsibility is to audit the financial if we have not received all the information Health and Social Care Act 2003 and the statements in accordance with relevant and explanations we require for our audit, directions made thereunder by Monitor. statute, the Audit Code for NHS Foundation or if information specified by law regarding Trusts issued by Monitor and International directors’ remuneration and other Certificate Standards on Auditing (UK and Ireland). transactions is not disclosed. We certify that we have completed the audit This report, including the opinion, is made Basis of audit opinion of the accounts in accordance with the solely to the Board of Governors of Barnsley requirements of the Health and Social Care Hospital NHS Foundation Trust in accordance We conducted our audit in accordance (Community Health and Standards) Act 2003 with paragraph 24(5) of Schedule 1 of the with section 28 and Schedule 5 of the and the Audit Code for NHS Foundation Health and Social Care (Community Health Health and Social Care (Community Health Trusts issued by Monitor. and Standards) Act 2003 (the Act) and for no and Standards) Act 2003 and Audit Code for other purpose.We do not, in giving this NHS Foundation Trusts issued by Monitor, opinion, accept or assume responsibility for which requires compliance with relevant Leeds any other purpose or to any other person to auditing standards issued by the Auditing 7 June 2007 whom this report is shown or into whose Practices Board. hands it may come save where expressly The maintenance and integrity of the agreed by our prior consent in writing. An audit includes examination, on a test Barnsley Hospital NHS Foundation Trust basis, of evidence relevant to the amounts website is the responsibility of the directors; We report to you our opinion as to whether and disclosures in the financial statements. the work carried out by the auditors does the financial statements give a true and fair It also includes an assessment of the not involve consideration of these matters view and are properly prepared in significant estimates and judgements and, accordingly, the auditors accept no accordance with the directions issued by made by the Foundation Trust in the responsibility for any changes that may have Monitor under the Health and Social Care preparation of the financial statements, occurred to the financial statements since (Community Health and Standards) Act 2003. and of whether the accounting policies they were initially presented on the website. are appropriate to the NHS Foundation We review whether the Accounting Officer’s Trust’s circumstances, consistently Legislation in the United Kingdom statement on internal control is misleading applied and adequately disclosed. governing the preparation and or inconsistent with other information we dissemination of financial statements may differ from legislation in other jurisdictions.

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Statement of Internal Control 1st April 2006 – 31st March 2007

1. Scope of responsibility • Consulting with the local 2. The purpose of the community and engaging system of internal control As Accountable Officer, and Acting with a growing membership Chief Executive of the Board, I have of the Foundation Trust. The system of internal control is responsibility for maintaining a • Submission of the Final designed to manage risk to a sound system of internal control Declaration to the Healthcare reasonable level rather than to that supports the achievements of Commission in response to its eliminate all risks of failure to achieve Barnsley Hospital NHS Foundation Standards for Better Health polices, aims and objectives; it can Trust’s policies, aims and objectives, Annual Health Check. therefore only provide reasonable whilst safeguarding the public and not absolute assurance of funds and departmental assets for • Undertaking consultation with the effectiveness.The system of internal which I am personally responsible, Barnsley PCT, local Overview and control is based on an ongoing in accordance with the Scrutiny Commission,Yorkshire process designed to: responsibilities assigned to me. and The Humber Strategic Health • Identify and prioritise the risks I am also responsible for ensuring Authority, Governing Council and to the achievement of the that Barnsley Hospital NHS Patient Participation Initiative (PPI) organisation’s policies, Foundation Trust is administered Forum on the Annual Health aims and objectives. prudently and economically and Check declaration and also that the resources are applied on other areas of interest. • Evaluate the likelihood of those efficiently and effectively. I also • Collaborative working between risks being realised and the acknowledge my responsibilities as the Governing Council and the impact should they be realised, set out in the NHS Foundation Trust Board of Directors. and to manage them efficiently, effectively and economically. Accounting Officer Memorandum. • Yorkshire and The Humber The Trust’s assurance framework Strategic Health Authority The system of internal control, has been informed by partnership Chief Executives forum. including the Board Assurance working across the healthcare • Partnership of Acute Trust Framework has been maintained region and locally including: Chief Executive meetings and in place in the Trust for the full year to 31st March 2007 and up to • Regular reporting to Monitor (PATCH) from South Yorkshire the date of approval of the Annual including governance and risk and North Derbyshire. Report and Accounts. management submissions • Chief Executive membership as required. of North Trent Commissioners • Scrutiny by Monitor as part (NORCOM). of the authorisation process • Membership of the Foundation for Foundation Trust status. Trust Network. • Working with other local health and social care service providers, primarily the Barnsley Primary Care Trust and Local Authority to develop a strategic vision for services.

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3. Capacity to handle risk The risk management policy sets 4. The risk control framework out an effective risk management The overall responsibility for system and supporting risk Specific responsibilities outlined the management of risk lies management procedures including: in the Trust’s Risk Management with the Chief Executive as Policy (last reviewed in September • Adoption of the Risk Management Accountable Officer. 2006) are incorporated into the Standard (AS/NZS 4360:1999). Trust’s committee structures that The Executive Directors are • A qualitative risk assessment support the Governance Committee responsible, collectively, through the matrix and guidance. and provide the framework for Senior Management Team, for the • Prioritisation process for risk risk control: Trust’s system of internal control treatments and escalation of and management.This responsibility • Patient Safety and Clinical Risk – management action. is executed and assured through Nursing Director Committees of the Board of • Cognisance of relevant • Risk Management Directors under the Chairmanship legal requirements. (inc.Wider Controls Assurance) – of a Non-Executive Director. • Definition for acceptable Finance Director • Governance Committee levels of risk. • Clinical Performance • Finance Committee • Development of risk registers at & Effectiveness – corporate and departmental level. Medical Director • Audit Committee • Risk Groups operating within each •Health & Safety – These Committees are required Clinical Management Team and Nursing Director to ensure that whole hospital Departments with a cross section • Financial Governance – systems necessary to quality assure of staff representation. Finance Director clinical care and organisational effectiveness at the Trust are in Such processes form an integral The policy and committee place and that the organisation is part of the systems to ensure the arrangements have been subject developing and delivering its stated investigation of underlying causes to an ongoing review process. goals and agreed action plans through the use of root cause Risk Management continues to analysis tools, and to learn from be embedded into the culture of events to assure safe high quality the Trust’s organisation through its care that is constantly improving. routine clinical management teams Further developmental work and departmental arrangements. continues to take place to improve Local risk management strategies and refine these systems. are developed and supported by local Risk Groups.

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Statement of Internal Control 1st April 2006 – 31st March 2007

Risks that cannot be effectively • Wider representation on the • Establishing Safeguarding controlled at a local management Review Group for Complaints Committees for both Children level are escalated in accordance and procedures including the and Vulnerable Adults. with the process for prioritised Independent Complaints and • Joining a North Trent network management action to the Advice Service (ICAS); Barnsley for sharing and learning from Senior Management Team Patient and Public Involvement neonatal incidents. or individual Directors. (PPI) Forum,Yorkshire Ambulance Service,Social Services and • Implementing a programme of Stakeholders are engaged in Public Governor. patient safety walkabouts led by the risk management process the Chief Executive. •PALS Services. in a variety of ways: • Maintaining patient safety incident • Patient questionnaires and Staff reporting to the National Patients satisfaction surveys lead Safety Agency through the • Consultation and election of by matrons. National Reporting and Learning staff representatives to the • Patient Participation Group, System and benchmarking the Governing Council. and Patient Forums. results against local trends. • Management and staff • Patient representative to the • An ongoing review and update of representation on corporate Governance Committee. health & safety policy documents. risk management groups and specialist groups advising on Work undertaken to support the • Fire Inspection under the new specific areas of risk. risk management process this year Fire regulations. • Statutory and mandatory has included: • Providing one of the pilot sites for the testing of the NHS Litigation induction and training Governance Committee programmes. Authority’s (NHSLA) new risk • Implementing revised committee management standards. •Team brief. arrangements and terms of • Reviewing and updating policies • Clinical management team risk reference following the for key areas of risk in response and governance meetings and governance review in 2005/06; to the NHSLA pilot scheme. reviews of incidents, complaints • Implementing a revised Board and claims. • Participating in the Safer Places Assurance Framework and Initiative, part of a national research • Questionnaires and Business Plan review from into organisational safety culture. cultural assessments. April 2006 supported by the Senior Management Team Patients and Public on a monthly basis. • Consultation and election of • Developing a renewed risk partnership organisation and management strategy document constituency representatives for the Board of Directors to the Governing Council. renewing its commitment to the • Consultation with Barnsley seven steps to patient safety. Overview and Scrutiny Committee, • Establishing a Serious Untoward Yorkshire and The Humber Strategic Incident (SUI)Group to review Health Authority, PPI Forum and SUIs on a monthly basis. Barnsley PCT regarding the Health Care Commission Declaration.

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Financial Governance The Assurance Framework and 5. Review of economy, • Improving financial information governance process has identified efficiency and effectiveness through the implementation of gaps in control and assurance of the use of resources a new financial management IT requiring action plans to provide system, including an improved additional control measures: The key processes that have been ledger and debtors function. • Developing capacity and applied to ensure that resources are used economically, efficiently and • As an employer with staff contingency plans to better meet effectively include: entitled to membership of the the variable non-elective referral NHS Pension Scheme control patterns throughout the year. (i) Monthly performance measures are in place to ensure • Moving towards a more flexible management reports include a all employer obligations contained workforce and ward environments detailed report on the efficiency within the Scheme regulations are for periods of higher activity. savings targets and progress by department. Nationally, the complied with. • Developing corporate leadership target is set at 2.5% and BHNFT programmes, and also increasing Audit internally has operated a higher access for nursing staff to target of 3.5% in 2006/07. Both • Maintaining Internal Audit reflective practice. and Clinical Audit programmes the Finance Committee and the including Risk Management and • Continuing to implement local Board receive these reports for the Board Assurance Framework. Equality Schemes; challenging review and approval. discrimination and promoting (ii) Throughout the year, Operational Risk Management equality and human rights. benchmarking and value for • Implementation of the Picture • Building on the recommendations money exercises are carried Archiving and Communication of the National Centre for out and presented to the System (PACS) within Medical Involvement to deliver a strategy Audit Committee for review Imaging providing dynamic to invigorate patient and public and approval and, in some imaging and reporting of involvement at the Trust. cases, a further drill down diagnostic images. • Implementation of a revised of the information will • Workforce reprofiling to provide infection control strategy for be commissioned. more point of care contact. 2007/08. (iii) The Trust undertakes an annual • Initiated plans to assess and • Review of identified IT information reference costs exercise which improve resources in response systems to ensure continuing assesses our total costs against to increasing demand. robustness. the numbers of patients we treat.This is assessed against a • Detailed reviews, action planning Progress against the prescribed and assurance checks in response national average and reported actions will be closely monitored to the Board, Our current to the Healthcare Commission by individual Directors, the Senior Standards for Better Health and efficiency position is favourable Management Team, the Governance at 96% of other trusts nationally. declaration against the Standards. Committee and the Board of Directors.

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Statement of Internal Control 1st April 2006 – 31st March 2007

Review of effectiveness Healthcare Commission The Board of Directors has • Performance rating by the approved the Assurance Framework As Accountable Officer, I have Healthcare Commission Annual confirming that the risk control responsibility for reviewing the Health Check of Good for quality measures in place are reasonable, effectiveness of the system of of care, and Good for resource action plans have been developed internal control. My review is management. to improve upon the controls and informed in a number of ways. the assurance processes where The Head of Internal Audit provides • Substantial compliance with appropriate. me with an opinion on the overall Healthcare Commission Standards arrangements for gaining assurance for Better Health 2005/06 and I have been advised on the through the Assurance Framework declared substantial compliance implications of the result of my and on the controls reviewed as for 2006/07. review of the effectiveness of the part of the internal audit work. system of internal control by the Audit Commission/Acute Hospital Governance, Finance and Audit Executive Directors within the Portfolios in 2006/07 organisation who have the Committees and also the responsibility for the development • A measure of excellent in Independent Auditor’s Report and maintenance of the system the outcome to Medicines and opinion. Management. of internal control provide me The Trust recognises the need with assurance. • A measure of good in the for ongoing development of the outcome to Diagnostic Services. My review is also informed robustness of its systems of control by external risk management • A measure of fair for Admission and assurance and the monitoring assessments undertaken during Arrangements. of its risk register and assurance the year or within external specified • A measure of excellent for framework to ensure they identify timescales if longer by; focused Children’s Services. the changing impact and likelihood of risk and better support the • A measure of fair for Children’s NHS Litigation Authority: achievement of business objectives. Services provided in adult areas • CNST (Clinical Negligence Scheme of the hospital. for Trusts) standards compliance (Level 2) General Hospital in Internal & External Audit March 2005. • Internal Audit of Risk • CNST standards compliance Management systems. (Level 1) Maternity Services The Assurance Framework itself D. A. Hicks in March 2006. provides me with evidence that Acting Chief Executive • RPST (Risk Pooling Scheme) the effectiveness of controls 6 June 2007 standards compliance (Level 1) that manage the risks to the for non-clinical risk management organisation achieving its principal in December 2002. objectives have been reviewed.The Board of Directors has monitored delivery of the 2006/07 business plan throughout the year.

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Data entered below will be used throughout the workbook: Trust name: Barnsley Hospital NHS Foundation Trust This year: 2006/07 Last year: 2005/06 This year ended: 31 March 2007 Last year ended: 31 March 2006 This year beginning: 1 April 2006

Foreword to the accounts for the year ended 31 March 2007 Barnsley Hospital NHS Foundation Trust Barnsley Hospital NHS Foundation Trust is required to ‘keep accounts in such form as Monitor (The Independent Regulator for NHS Foundation Trusts) may with the approval of Treasury direct’ (paragraph 24(1), Schedule 1 to the Health and Social Care (Community Health and Standards) Act 2003 (‘the 2003 Act’).The Trust is required to ‘prepare in respect of each financial year annual accounts in such form as Monitor may with the approval of the Treasury direct’ (paragraph 25(1), Schedule 1 to the 2003 Act). In preparing their annual accounts, the Trust must comply with any directions given by Monitor, with the approval of the Treasury, as to the methods and principles according to which the accounts are to be prepared and the information to be given in the accounts (paragraph 25(2), Schedule 1).

D. A. Hicks Acting Chief Executive 6 June 2007

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Income and expenditure account for the year ended 31 March 2007 2006/07 2005/06 Note £000 £000 Income from activities 3 107,043 101,044 Other operating income 4 14,863 14,669 Operating expenses 5-7 (119,875) (113,562) Operating surplus 2,031 2,151 Loss on disposal of fixed assets 8 (13) (69) Surplus before net financing costs 2,018 2,082 Interest receivable 320 245 Interest payable 9 0 0 Surplus for the year 2,338 2,327 Public Dividend Capital dividends payable (2,329) (2,324) Retained surplus for the year 9 3

The notes on pages 5 to 30 form part of these accounts.

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Balance sheet as at 31 March 2007 2006/07 2005/06 Note £000 £000 Fixed assets Intangible fixed assets 10 1,798 950 Tangible fixed assets 11 66,870 67,839 Fixed asset investments 14 0 0 68,668 68,789 Current assets Stocks and work in progress 12 1,195 1,307 Debtors 13 4,711 5,453 Investments 14 0 0 Cash at bank and in hand 4,388 2,824 10,294 9,584 Creditors: Amounts falling due within one year 15 (9,147) (8,087) Net current assets/(liabilities) 1,147 1,497 Total assets less current liabilities 69,815 70,286 Creditors: Amounts falling due after more than one year 15 (744) (765) Provisions for liabilities and charges 16 (986) (1,518) Total assets employed 68,085 68,003 Financed by: Taxpayers’ equity Public dividend capital 45,855 45,810 Revaluation reserve 17 18,184 18,075 Donated asset reserve 17 674 761 Other reserves 17 0 0 Income and expenditure reserve 17 3,372 3,357 Total taxpayers’ equity 68,085 68,003

D. A. Hicks Acting Chief Executive 6 June 2007

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Statement of the total recognised gains and losses for the year ended 31 March 2007 2006/07 2005/06 £000 £000 Surplus for the financial year before dividend payments 2,338 2,327 Fixed asset revaluation 110 (700) Increase in the donated asset reserve due to receipt of donated assets 9 44 Reductions in the donated asset reserve due to depreciation, impairment, and /or disposal of donated assets (91) (98)

Total recognised gains and (losses) for the financial year 2,366 1,573

Cash flow statement for the year ended 31 March 2007 2006/07 2005/06 Note £000 £000 Operating activities Net cash inflow from operating activities 18.1 9,556 4,267 Dividends from joint ventures and associates 0 0 Returns on investments and servicing of finance: Interest received 320 245 Net cash inflow from returns on investments and servicing of finance 320 245

Capital expenditure Payments to acquire tangible fixed assets (4,732) (5,963) Receipts from sale of tangible fixed assets 0 2 Payments to acquire intangible assets (1,296) (431) Net cash outflow from capital expenditure (6,028) (6,392)

Dividends paid (2,329) (2,324) Net cash inflow/(outflow) before management of liquid resources and financing 1,519 (4,204)

Management of liquid resources 0 0 Net cash inflow / (outflow) before financing 1,519 (4,204)

Financing Public dividend capital received 300 3,742 Other capital receipts 0 100 Public Dividend Capital Repaid (255) 0 Net cash inflow from financing 45 3,842

Increase/(decrease) in cash 18.2 1,564 (362)

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Barnsley Hospital NHS Foundation Trust – d. the assets, liabilities, results of operations and activities Notes to the Accounts are clearly distinguishable, physically, operationally and for financial reporting purposes. 1 Accounting policies and other information Monitor has directed that the financial statements of NHS Operations not satisfying all these conditions are foundation trusts shall meet the accounting requirements classified as continuing. of the NHS Foundation Trust Financial Reporting Manual Activities are considered to be ‘acquired’ whether or which shall be agreed with HM Treasury. Consequently, not they are acquired from outside the public sector. the following financial statements have been prepared in accordance with the 2006/07 NHS Foundation Trust 1.3 Income recognition Financial Reporting Manual issued by Monitor. The main source of income for the trust is under The accounting policies contained in that manual contracts from commissioners in respect of healthcare follow UK generally accepted accounting practice for services. Income is recognised in the period in which companies (UK GAAP) and HM Treasury’s Financial services are provided.Where income is received for a Reporting Manual to the extent that they are meaningful specific activity which is to be delivered in the following and appropriate to NHS foundation trusts.The accounting financial year, that income is deferred. policies have been applied consistently in dealing with The NHS foundation trust changed the form of items considered material in relation to the accounts. its contracts with NHS commissioners to follow 1.1 Accounting convention the Department of Health’s Payment by Results These accounts have been prepared under the historical methodology in 2005/06.To manage the financial cost convention modified to account for the revaluation impact of this change on the NHS foundation trust of tangible fixed assets at their value to the business by and its commissioners, the Trust was able to retain reference to their current costs. NHS foundation trusts, 75% of the gain under PbR.The remaining £215,000 in compliance with HM Treasury’s Financial Reporting was paid back to the Department of Health as part Manual, are not required to comply with the FRS 3 of the national clawback rules in monthly instalments. requirements to report ‘earnings per share’ or historical FRS5 – Reporting the Substance of Transactions, profits and losses. Application note G – Revenue Recognition, requires These accounts have been produced using organisations to recognise income when they obtain the accruals convention. the right to consideration in exchange for work carried out. Under the Trust’s contractual arrangements with 1.2 Acquisitions and discontinued operations commissioners the Trust will have earned the right to Activities are considered to be ‘discontinued’ where consideration for treatments that were not complete they meet all of the following conditions: at the balance sheet date.The Trust has accrued for a. the sale (this may be at nil consideration for this amount under NHS debtors. activities transferred to another public sector 1.4 Tangible fixed assets body) or termination is completed either in the period or before the earlier of three months after the Capitalisation commencement of the subsequent period and the Tangible assets are capitalised if they are capable of being date on which the financial statements are approved; used for a period which exceeds one year and they: b. if a termination, the former activities have • individually have a cost of at least £5,000; or ceased permanently; • form a group of assets which individually have a cost c. the sale or termination has a material effect on the of more than £250, collectively have a cost of at least nature and focus of the reporting NHS foundation £5,000 where the assets are functionally interdependent, trust’s operations and represents a material reduction they had broadly simultaneous purchase dates, in its operating facilities resulting either from its are anticipated to have simultaneous disposal withdrawal from a particular activity or from a material dates and are under single managerial control; or reduction in income in the NHS foundation trust’s • form part of the initial setting-up cost of a new building continuing operations; and or refurbishment of a ward or unit, irrespective of their individual or collective cost.

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Valuation Depreciation, amortisation and impairments Tangible fixed assets are stated at the lower of replacement Tangible fixed assets are depreciated at rates calculated cost and recoverable amount. On initial recognition they to write them down to estimated residual value on are measured at cost (for leased assets, fair value) including a straight-line basis over their estimated useful lives. any costs, such as installation, directly attributable to No depreciation is provided on freehold land, bringing them into working condition.The carrying values and assets surplus to requirements. of tangible fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate the Assets in the course of construction and residual carrying value may not be recoverable.The costs arising interests in off-balance sheet PFI contract assets are from financing the construction of the fixed asset are not not depreciated until the asset is brought into use capitalised but are charged to the income and expenditure or reverts to the trust, respectively. account in the year to which they relate. Buildings, installations and fittings are depreciated on All land and buildings are revalued using professional their current value over the estimated remaining life valuations in accordance with FRS 15 every five years. of the asset as assessed by the NHS foundation trust’s A three yearly interim valuation is also carried out. professional valuers. Leaseholds are depreciated over the primary lease term. Valuations are carried out by professionally qualified valuers in accordance with the Royal Institute of Equipment is depreciated on current cost evenly over the Chartered Surveyors (RICS) Appraisal and Valuation estimated life. Asset lives fall into the following ranges: Manual.The last full asset valuations were undertaken in Plant & Machinery 5 to 15 years 2004 as at the prospective valuation date of 1 April 2005. Transport Equipment 7 years The revaluation undertaken at that date was accounted Information Technology 5 to 8 years for on 31 March 2005. Furniture & Fittings 7 to 10 years The valuations are carried out primarily on the basis of Fixed asset impairments resulting from losses of economic depreciated replacement cost for specialised operational benefits are charged to the income and expenditure property and existing use value for non-specialised account. All other impairments are taken to the revaluation operational property.The value of land for existing reserve and reported in the statement of total recognised use purposes is assessed at existing use value. gains and losses to the extent that there is a balance on the For non-operational properties including surplus land, revaluation reserve in respect of the particular asset. the valuations are carried out at open market value. 1.5 Intangible fixed assets Additional alternative open market value figures have Intangible assets are capitalised when they are capable only been supplied for operational assets scheduled of being used in a trust’s activities for more than one year; for imminent closure and subsequent disposal. they can be valued; and they have a cost of at least £5,000. All impairments resulting from price changes are Intangible fixed assets held for operational use are valued charged to the Statement of Total Recognised Gains at historical cost and are amortised over the estimated life and Losses. If the balance on the revaluation reserve of the asset on a straight line basis.The carrying value of is less than the impairment the difference is taken intangible assets is reviewed for impairment at the end to the Income and Expenditure Account. of the first full year following acquisition and in other Assets in the course of construction are valued at cost periods if events or changes in circumstances indicate and are valued by professional valuers as part of the five or the carrying value may not be recoverable. three-yearly valuation or when they are brought into use. Purchased computer software licences are capitalised Operational equipment is valued at net current as intangible fixed assets where expenditure of at least replacement cost. Equipment is indexed using the £5,000 is incurred and amortised over the shorter of indicators provided by the Department of Health. the term of the licence and their useful economic lives. Equipment surplus to requirements is valued at net recoverable amount.

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1.6 Donated fixed assets 1.9 Stocks and work-in-progress Donated fixed assets are capitalised at their current value Stocks and work-in-progress are valued at the lower on receipt and this value is credited to the donated asset of cost and net realisable value. reserve. Donated fixed assets are valued and depreciated as described above for purchased assets. Gains and losses 1.10 Cash, bank and overdrafts on revaluations are also taken to the donated asset reserve Cash, bank and overdraft balances are recorded at the and, each year, an amount equal to the depreciation current values of these balances in the NHS foundation charge on the asset is released from the donated asset trust’s cash book.These balances exclude monies held reserve to the income and expenditure account. Similarly, in the NHS foundation trust’s bank account belonging to any impairment on donated assets charged to the income patients (see ‘third party assets’ below). Account balances and expenditure account is matched by a transfer from are only set off where a formal agreement has been the donated asset reserve. On sale of donated assets, the made with the bank to do so. In all other cases overdrafts value of the sale proceeds is transferred from the donated are disclosed within creditors. Interest earned on bank asset reserve to the Income and Expenditure Reserve. accounts and interest charged on overdrafts is recorded as, respectively,‘interest receivable’ and ‘interest payable’ 1.7 Government grants in the periods to which they relate. Bank charges are Government grants are grants from Government bodies recorded as operating expenditure in the periods to other than income from primary care trusts or NHS trusts which they relate. for the provision of services. Grants from the Department of Health, including those for achieving three star status, 1.11 Research and development are accounted for as Government grants as are grants The Trust undertakes research and development and the from the Big Lottery Fund.Where the Government grant expenditure on the research is not capitalised. Also, the is used to fund revenue expenditure it is taken to the research and development expenditure costs are incurred Income and Expenditure account to match that against the lines in note 5.1 where they are consumed. expenditure.Where the grant is used to fund capital 1.12 Provisions expenditure the grant is held as deferred income and The NHS foundation trust provides for legal or constructive released to the income and expenditure account over obligations that are of uncertain timing or amount at the the life of the asset on a basis consistent with the balance sheet date on the basis of the best estimate of depreciation charge for that asset. the expenditure required to settle the obligation. 1.8 Private Finance Initiative (PFI) transactions Where the effect of the time value of money is significant, The NHS follows current HM Treasury’s Technical Note the estimated risk-adjusted cash flows are discounted 1 (Revised) ‘How to Account for PFI transactions’ which using HM Treasury’s discount rate of 2.2% in real terms. provides definitive guidance for the application of 1.13 Contingencies application note F to FRS 5. Contingent liabilities are provided for where a transfer Where the balance of the risks and rewards of ownership of economic benefits is probable. Otherwise, they are of the PFI property are borne by the PFI operator, the PFI not recognised, but are disclosed in note 21 unless the payments are recorded as an operating expense. probability of a transfer of economic benefits is remote. Where the trust has contributed land and buildings, Contingent liabilities are defined as: a prepayment for their fair value is recognised and Possible obligations arising from past events whose amortised over the life of the PFI contract by charge to existence will be confirmed only by the occurrence of the income and expenditure account.Where, at the end one or more uncertain future events not wholly within of the PFI contract, a property reverts to the trust, the the entity’s control; or difference between the expected fair value of the residual on reversion and any agreed payment on reversion is Present obligations arising from past events but for built up over the life of the contract by capitalising part which it is not probable that a transfer of economic of the unitary charge each year, as a tangible fixed asset. benefits will arise or for which the amount of the obligation cannot be measured with sufficient reliability. Where the balance of risks and rewards of ownership of the PFI property are borne by the Trust, it is recognised as a fixed asset along with the liability to pay for it which is accounted for as a finance lease. Contract payments are apportioned between an imputed finance lease charge and a service charge.

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1.14 Clinical negligence costs 1.18 Third party assets The NHS Litigation Authority (NHSLA) operates a risk Assets belonging to third parties (such as money held pooling scheme under which the NHS foundation trust on behalf of patients) are not recognised in the accounts pays an annual contribution to the NHSLA, which, in since the NHS foundation trust has no beneficial interest return, settles all clinical negligence claims. Although in them. However, they are disclosed in a separate note the NHSLA is administratively responsible for all clinical to the accounts in accordance with the requirements of negligence cases, the legal liability remains with the NHS Monitors Foundation Trust Financial Reporting Manual. foundation trust.The total value of clinical negligence provisions carried by the NHSLA on behalf of the NHS 1.19 Leases foundation trust is disclosed at note 16. Where substantially all risks and rewards of ownership of a leased asset are borne by the NHS foundation trust, 1.15 Non-clinical risk pooling the asset is recorded as a tangible fixed asset and a debt The NHS foundation trust participates in the Property is recorded to the lessor of the minimum lease payments Expenses Scheme and the Liabilities to Third Parties discounted by the interest rate implicit in the lease. Scheme. Both are risk pooling schemes under which the The interest element of the finance lease payment is trust pays an annual contribution to the NHS Litigation charged to the income and expenditure account over Authority and in return receives assistance with the costs the period of the lease at a constant rate in relation to of claims arising.The annual membership contributions, the balance outstanding. Other leases are regarded as and any ‘excesses’payable in respect of particular claims operating leases and the rentals are charged to the are charged to operating expenses when the liability arises. income and expenditure account on a straight-line basis over the term of the lease. 1.16 Pension costs Past and present employees are covered by the 1.20 Public dividend capital provisions of the NHS Pensions Scheme.The scheme is Public dividend capital (PDC) is a type of public sector an unfunded, defined benefit scheme that covers NHS equity finance. employers, general practices and other bodies, allowed under the direction of Secretary of State, in England and A charge, reflecting the forecast cost of capital utilised by Wales. As a consequence it is not possible for the NHS the NHS foundation trust, is paid over as public dividend foundation trust to identify its share of the underlying capital dividend.The charge is calculated at the real rate scheme liabilities.Therefore, the scheme is accounted set by HM Treasury (currently 3.5%) on the average for as a defined contribution scheme under FRS 17. relevant net assets of the NHS foundation trust. Relevant net assets are calculated as the value of all assets less the Employers pension cost contributions are charged to value of all liabilities, except for donated assets and cash operating expenses as and when they become due. held with the Office of the Paymaster General. Average relevant net assets are calculated as a simple mean of Additional pension liabilities arising from early retirements opening and closing relevant net assets. are not funded by the scheme except where the retirement is due to ill-health.The full amount of the liability for the 1.21 Financial instruments additional costs is charged to the income and expenditure The Trust will commonly have the following financial account at the time the trust commits itself to the assets and liabilities: retirement, regardless of the method of payment. assets: investments, long-term debtors and accrued 1.17 Taxation income, short-term debtors and accrued income; and Most of the activities of the NHS foundation trust are liabilities: loans and overdrafts, long-term creditors, long- outside the scope of VAT and, in general, output tax does term provisions arising from contractual arrangements, not apply and input tax on purchases is not recoverable. short-term creditors, short-term provisions arising from Irrecoverable VAT is charged to the relevant expenditure contractual arrangements category or included in the capitalised purchase cost of fixed assets.Where output tax is charged or input VAT However, there are other financial instruments held. is recoverable, the amounts are stated net of VAT. For the common financial instruments listed above the policies are already covered in the example accounting Barnsley Hospital NHS Foundation Trust does not policies above. However, if the financial instrument is less undertake any activities that are subject to taxation. common or an alternative approach is adopted then the Consequently the Trust has had no corporation tax NHS foundation trust will refer to FRS 13. liability in 2006/07 or 2005/06.

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2. Segmental analysis Barnsley Hospital NHS Foundation Trust does not act as a lead body for a consortium, all its activity is healthcare, and there is therefore no need to report performance segmentally.

3. Income from activities 3.1 Income from activities comprises 2006/07 2005/06 £000 £000 NHS Trusts 238 0 Primary Care Trusts* 101,958 102,585 Local Authorities 163 0 Department of Health* 3,872 (2,387) NHS Other 0 126 Non NHS: Private Patients 36 33 Road Traffic Act** 695 687 Other 81 0 107,043 101,044

*Changes to the structure of the tariff and MFF payments occurred between 2005/06 and 2006/07. The MFF was included, in part, in tariff payments from PCTs in 2005/06 and then was extracted from the tariff in 2006/07 and passed over to NHS Trusts as a block payment from the Department of Health. The income from the Department of Health of £3,872,000 in 2006/07 is made up of two elements. The details are provided below together with the 2005/06 comparator: £000 £000 Clawback relating to tariff gain (215) (3,270) Market Forces Factor (MFF) payment to top up tariff 4,087 883 Total 3,872 (2,387)

**Road Traffic Act income is subject to a provision for doubtful debts of 8% to reflect expected rates of collection.

3.2 Analysis of income from activities £000 £000 Inpatient – elective 22,713 18,328 Inpatient – non elective 42,268 42,430 Outpatient income 23,140 21,361 Other activity income 13,661 16,789 A & E income 5,440 5,373 Private Patient Income 36 33 Total income 107,258 104,314 Payment by results clawback (215) (3,270) Income from activities 107,043 101,044

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3.3 Private patient income Reporting Period 2002/03 Base Year £000 £000 Private patient income 36 50 Total patient related income 107,043 75,607 Proportion (as a percentage) 0.034% 0.1%

Under its terms of authorisation the Trust must ensure that the proportion of patient related income derived from private patients does not exceed the proportion received as an NHS Trust in 2002/03 (the base year). During the year ended 31 March 2007, the Trust received 0.034% of its patient related income from private patients, which is within the limit which Monitor has set at 0.1%.

4. Other Operating Income 2006/07 2005/06 £000 £000 Patient transport services 0 0 Research and Development 623 444 Education and Training 3,909 4,186 Charitable and other contributions to expenditure 26 136 Transfers from donated asset reserve 91 98 Amortisation of government grant 22 16 Non-patient care services to other bodies 26 10 Other income* 9,931 9,789 14,863 14,669 *Further details of ‘other income’ are as follows: Services provided to Barnsley Primary Care Trust 4,880 4,735 The Rotherham NHS Foundation Trust – Ophthalmology service 1,640 1,654 Car parking 545 508 Residencies 271 248 Income – Barnsley MBC 45 39 Renal Unit 132 127 Telephones 19 28 HAZ, Surestart, Modernisation 16 133 Rental to retail units 92 69 Miscellaneous 2,291 2,248 9,931 9,789

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Accounts

5. Operating Expenses 5.1 Operating expenses comprise: 2006/07 2005/06 £000 £000 Services from Foundation Trusts 504 583 Services from other NHS Trusts 1,233 1,197 Services from other NHS bodies 2,801 2,664 Purchase of healthcare from non NHS bodies 48 41 Executive Directors’ costs 638 587 Non-Executive Directors’ costs 66 55 Staff costs 78,995 76,737 Drugs 5,927 5,744 Supplies and services – clinical 8,674 7,737 Supplies and services – general 4,886 4,208 Establishment 1,279 1,216 Transport 48 43 Premises 4,483 4,292 Bad debts 68 67 Doubtful debts 312 0 Depreciation and amortisation 5,420 4,763 Fixed asset reversal of impairments 0 0 Audit fees 57 89 Other auditor’s remuneration 25 21 Clinical negligence 1,875 1,864 Other* 2,536 1,654 119,875 113,562 *Other – further details: Car parking 342 310 Legal fees, insurance and losses 568 221 Third party claims for personal injury 151 84 Course fees, training and development 256 269 Miscellaneous 1,219 770 2,536 1,654

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5.2 Operating leases 5.2/1 Operating expenses include: 2006/07 2005/06 £000 £000 Hire of plant and machinery 0 3 Other operating lease rentals 32 333 Managed service* 314 0 346 336

*In 2006/07 a new 8 year a non cancellable contract for a managed service in Pathology was entered into.

5.2/2 Annual commitments under non – cancellable operating leases are: Other leases 2006/07 2005/06 £000 £000 Operating leases which expire: Within 1 year 480 223 Between 1 and 5 years 1,892 12 After 5 years 1,100 11 3,472 246

Please also refer to Note 24.1 PFI schemes deemed to be off-balance sheet for details relating to the PFI operating lease.

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Accounts 5.3 Salary and Pension entitlements of senior managers A) Remuneration Senior Managers are defined as the Executive and Non-Executive Directors of the Trust.

Name and Title Year ended 31 March 2007 Prior year Salary Other Benefits Salary Other Benefits remuneration in kind remuneration in kind (Bands of (Bands of Rounded to (Bands of (Bands of Rounded to £5000) £5000) the nearest £5000) £5000) the nearest £000 £000 £100 £000 £000 £100 Mr D Hicks Acting Chief Executive 1 110-115 50-55 0 95-100 50-55 0 Mr J Sobieraj Chief Executive 2 70-75 0 0 105-110 0 0 Mr J Loeb Director of Finance 80-85 0 0 75-80 0 0 Ms S Light Director of Strategy and Service Improvement 3 10-15 0 0 65-70 0 0 Mrs J Greenwood Director of Nursing 70-75 0 0 65-70 0 0 Mr C Swinhoe Acting Medical Director 445-5000000 Mr G Firth Chairman 20-25 0 0 20-25 0 0 Mr R Walker Non-Executive Director 5 5-10 0 0 5-10 0 0 Mrs P Newman Non-Executive Director 5-10 0 0 5-10 0 0 Mr F Johnston Non-Executive Director 5-10 0 0 5-10 0 0 Miss A Arnold Non-Executive Director 5-10 0 0 5-10 0 0 Ms S Wildon Non-Executive Director 65-1000000 Mr P Spinks Non-Executive Director 70-500000

1 Mr D Hicks was the Medical Director up to 30 November 2006. As of 1 December 2006 he became the Acting Chief Executive. 2 Mr J Sobieraj left the Trust on the 30 November 2006. 3 Ms S Light left the Trust on the 9 June 2006. 4 Mr C Swinhoe took up his post as Acting Medical Director on 1 December 2006. 5 Mr R Walker left the Trust on the 31 December 2006. 6 Ms S Wildon commenced at the Trust on 2 August 2006. 7 Mr P Spinks commenced at the Trust on 1 January 2007.

D. A. Hicks Acting Chief Executive 6 June 2007

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B) Pension Benefits

Name and title Real increase Total accrued Cash Cash Real increase Employers in pension pension and Equivalent Equivalent in Cash contribution and related related lump Transfer Transfer Equivalent to Stakeholder lump sum sum at age 60 at Value at Value at Transfer Pension at age 60 31March 2007 31March 2007 1April 2006 Value (Bands of (Bands of £000 £000 £000 To nearest £2500) £2500) £100 Mr J Sobieraj Chief Executive 0-2.5 147.5-150 561 520 28 0 Mr D Hicks Medical Director 20.0-22.5 267.5-270 1,199 1,067 105 0 Mr J Loeb Director of Finance 2.5-5.0 90.0-92.5 330 318 4 0 Ms S Light Director of Strategy and Service Improvement 0 70-72.5 256 245 19 0 Mr C Swinhoe Acting Medical Director 0.0-2.5 72.5-75.0 267 245 5 0 Mrs J Greenwood Director of Nursing 5.0-7.5 82.5-85 270 237 27 0

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 to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which the disclosure applies.The CETV figures include the value of any pension benefits in another scheme or arrangement which the individual has transferred to the NHS pension scheme.They also include any additional pension benefit accrued to the member as a result of their purchasing additional years of pension Real Increase in CETV – This reflects the increase in CETV effectively funded by the employer. It takes account of the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

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6. Staff costs and numbers 6.1 Staff costs Total Permanently Other 2005/06 employed £000 £000 £000 £000 Salaries and wages 65,312 65,312 0 63,696 Social Security Costs 4,734 4,734 0 4,605 Employer contributions to NHSPA 7,333 7,333 0 6,985 Other pension costs 0000 Agency/Contract Staff 2,254 0 2,254 2,039 79,633 77,379 2,254 77,325

6.2 Average number of persons employed Total Permanently Other Prior year employed Number Number Number Number Medical and dental 271 226 45 272 Ambulance staff 0000 Administration and estates 514 514 0 543 Healthcare assistants and other support staff 117 117 0 123 Nursing, midwifery and health visiting staff 835 835 0 849 Nursing, midwifery and health visiting learners 21 21 0 21 Scientific, therapeutic and technical staff 341 341 0 365 Bank and agency staff 51 0 51 36 Social care staff 0000 Other 11 11 0 12 Total 2,161 2,065 96 2,221

The ‘Other’ for Medical and Dental relates to 45 whole time equivalent recharges from other NHS Trusts (40 WTE in 2005/06), which do not appear on the Trust’s payroll, but which appear in the total staff costs for the Trust.

6.3 Employee benefits There were no benefits paid to employees during the year.

6.4 Retirements due to ill-health During the year there were 7 early retirements (5 in 2005/06) from the Trust agreed on the grounds of ill-health. The estimated additional pension liabilities of these ill-health retirements will be £572,560 (£180,761 in 2005/06). The cost of these ill-health retirements will be borne by the NHS Pensions Agency.

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7. The Late Payment of Commercial Debts (Interest) Act 1998 There was no late payment of commercial debt interest.

8. Profit/(Loss) on disposal of fixed assets Profit/loss in the disposal of fixed assets is made up as follows: 2006/07 2005/06 £000 £000 Loss on disposal of intangible fixed assets 0 (1) Profit on disposal of plant and equipment 0 1 Loss on disposal of plant and equipment (13) (69) (13) (69)

9. Interest payable There was no interest payable in the year ended 31 March 2007.

10. Intangible fixed assets Software Licenses and Patents Development Goodwill Other Total licences trademarks expenditure £000 £000 £000 £000 £000 £000 £000 Gross cost at 1 April 2006 1,455 0 0 0 0 0 1,455 Additions purchased 1,133 0 0 0 0 0 1,133 Disposals 0 0 0 0 0 0 0 Gross cost at 31 March 2007 2,588 0 0 0 0 0 2,588 Amortisation at 1 April 2006 505 0 0 0 0 0 505 Provided during the year 282 0 0 0 0 0 282 Disposals 3 0 0 0 0 0 3 Amortisation at 31 March 2007 790 0 0 0 0 0 790 Net book value Purchased at 1 April 2006 950 0 0 0 0 0 950 Total at 1 April 2006 950 0 0 0 0 0 950 Purchased at 31 March 2007 1,798 0 0 0 0 0 1,798 Total at 31 March 2007 1,798 0 0 0 0 0 1,798

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11. Tangible fixed assets 11.1 Tangible fixed assets at the balance sheet date comprise the following elements: Land Buildings Dwellings Assets under Plant and Transport Information Furniture Total excluding construction machinery equipment technology & fittings dwellings and payments on account £000 £000 £000 £000 £000 £000 £000 £000 £000

Cost or valuation at 1 April 2006 6,088 52,304 2,960 1,277 16,347 0 3,362 598 82,936 Additions purchased 0 2,502 0 221 1,303 0 28 10 4,064 Additions donated 0 9 0 0 0 0 0 0 9 Impairments 0 (1,011) 0 0 0 0 0 0 (1,011) Reclassifications 0 1,222 0 (1,222) 0 0 0 0 0 Other revaluations 0 967 0 0 451 0 0 17 1,435 Disposals 0 0 0 0 (65) 0(4) 0(69)

At 31 March 2007 6,088 55,993 2,960 276 18,036 0 3,386 625 87,364

Depreciation at 1 April 2006 0 2,707 185 0 9,107 0 2,803 295 15,097 Provided during the year 0 3,029 151 0 1,764 0 138 56 5,138 Impairments 00000 0 000 Reversal of impairments 0 0 0 0 0 0 0 0 0 Reclassifications 0 0 0 0 0 0 0 0 0 Other revaluations 0 55 0 0 251 0 0 8 314 Disposals 0 0 0 0 (51) 0(4) 0(55)

Depreciation at 31 March 2007 0 5,791 336 0 11,071 0 2,937 359 20,494

Net book value Purchased at 1 April 2006 6,088 49,077 2,746 1,277 7,029 0 559 303 67,079 Donated at 1 April 2006 0 520 29 0 211 0 0 0 760

Total at 1 April 2006 6,088 49,597 2,775 1,277 7,240 0 559 303 67,839

Purchased at 31 March 2007 6,088 49,707 2,602 276 6,808 0 449 266 66,196 Donated at 31 March 2007 0 495 22 0 157 0 0 0 674

Total at 31 March 2007 6,088 50,202 2,624 276 6,965 0 449 266 66,870

Analysis of tangible fixed assets, net book value Protected assets at 31 March 2007 5,097 46,653 0 0 0 0 0 0 51,750 Unprotected assets at 31 March 2007 991 3,549 2,624 276 6,965 0 449 266 15,120

Total at 31 March 2007 6,088 50,202 2,624 276 6,965 0 449 266 66,870

Of the totals at 31 March 2007 there were no assets valued at open market value. There were no assets held under finance leases and hire purchase contracts at the balance sheet date.

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11.2 The net book value of land, buildings and dwellings at 31 March 2007 comprises 2006/07 2005/06 Protected Unprotected Total Total £000 £000 £000 £000 Freehold 51,750 7,164 58,914 58,460 Long leasehold 0000 Short leasehold 0000 Total 51,750 7,164 58,914 58,460

12. Stocks 2006/07 2005/06 £000 £000 Raw materials and consumables 1,195 1,307 Total 1,195 1,307

13. Debtors Amounts falling due within one year: NHS debtors 2,755 2,211 Provision for irrecoverable debts (383) (68) Other prepayments and accrued income 1,058 1,089 Other debtors 739 1,965 Sub Total 4,169 5,197 Amounts falling due after more than one year: NHS debtors 0 0 Provision for irrecoverable debts 0 0 Other prepayments and accrued income 0 0 Other debtors 542 256 Sub Total 542 256 Total 4,711 5,453

In 2005/06 debtors relating to road traffic accidents were classified in the NHS debtors section. For 2006/07 these are classed as other debtors.Therefore the2005/06 NHS debtors figure has been restated to exclude the road traffic accident debtors (£676,000 )and other debtors have been reclassified to include these.

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14. Investments There were no fixed or current asset investments at 31 March 2007

15. Creditors 15.1 Creditors at the balance sheet date are made up of: 2006/07 2005/06 £000 £000 Amounts falling due within one year: NHS creditors 2,903 2,360 Non – NHS trade creditors – revenue – other 2,066 1,855 Non – NHS trade creditors – capital 440 172 Tax and social security costs 1,638 1,585 Obligations under finance leases and hire purchase contracts 0 0 Accruals and deferred income 2,100 2,115 Sub Total 9,147 8,087 Amounts falling due after more than one year: Deferred income 744 765 Sub Total 744 765 Total 9,891 8,852

NHS creditors include; Outstanding employers’ pensions contributions at 31 March 2007 of £615,000. Outstanding employees’ pensions contributions at 31 March 2007 of £283,000.

15.2 Loans and other long-term financial liabilities As at 31 March 2007 the Trust had no loans or other long term financial liabilities.

15.3 Finance lease obligations and commitments The Trust does not have any finance lease obligations or commitments.

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16. Provisions for liabilities and charges Pensions relating Legal claims Other Total to other staff £000 £000 £000 £000 At 1 April 2006 130 216 1,172 1,518 Arising during the year 0 222 661 883 Utilised during the year (17) (83) (1,159) (1,259) Reversed during the year 0 (71) (85) (156) Unwinding of discount 0 0 0 0 At 31 MARCH 2007 113 284 589 986 Expected timing of cashflows: Within one year 16 284 589 889 Between one and five years 60 0 0 60 After five years 37 0 0 37

The main component in the other provisions column is £287,000 for back pay in relation to the implementation of the national Agenda for Change pay reform. The above provision does not include £10,309,000 (£9,017,000 in 2005/06) included in the accounts of the NHS Litigation Authority as at 31 March 2007 in respect of clinical negligence liabilities of the Trust.

17. Movements on tax payers equity 17.1 Movements on public dividend capital (PDC) There was a small movement in PDC of £45,000.This was made up of £300,000 additional PDC for infection control and a repayment of £255,000 relating to cash previously drawdown from the Department of Health to fund capital schemes that were deferred.

17.2 Movements on reserves in the year comprised the following: Revaluation Donated asset Income and Total reserve reserve expenditure reserve £000 £000 £000 £000 At 1 April 2006 18,075 761 3,357 22,193 Transfer from the income and expenditure account 0 0 9 9 Fixed asset revaluation 115 (5) 0 110 Transfer of realised profits to the Income and Expenditure reserve (6) 0 6 0 Receipt of donated assets 0 9 0 9 Transfers to the income and expenditure account for depreciation, impairment, and disposal of donated assets 0 (91) 0 (91) At 31 March 2007 18,184 674 3,372 22,230

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18. Notes to the cash flow statement 18. 1 Reconciliation of operating surplus to net cash flow from operating activities: 2006/07 2005/06 £000 £000 Total operating surplus 2,031 2,151 Depreciation and amortisation charge 5,420 4,763 Fixed asset impairments and reversals 0 0 Transfer from donated asset reserve (91) (98) Amortisation of government grant 0 (16) Decrease in stocks 112 33 Decrease /(increase) in debtors 570 (678) (Decrease)/increase in creditors 2,047 (1,907) (Decrease)/increase in provisions (533) 19 Net cash inflow from operating activities 9,556 4,267

18.2 Reconciliation of net cash flow to movement in net funds £000 £000 Increase/(decrease) in cash in the period 1,564 (362) Change in net funds resulting from cashflows 1,564 (362) Net funds at 1 April 2006 2,824 3,186 Net funds at 31 March 2007 4,388 2,824

19. Capital commitments Commitments under capital expenditure contracts at the balance sheet date were £545,728 (2005/06 £1,075,000). The main capital schemes were as follows: • £190,000 on ventilation duct work in Theatres • £133,000 on the Women’s and Children’s development; and • £81,000 on endoscopy disinfectors

20. Post balance sheet events There have been no post balance sheet events.

21. Contingent liabilities 2006/07 2005/06 £000 £000 Gross value* (311) (234) Amounts recoverable 44 86 Net contingent liability (267) (148)

*£155,000 is for personal injury claims as per the NHSLA.

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22. Prudential borrowing limit The Trust has a maximum cumulative long term borrowing limit of £13.2 million. As the Trust did not require any loans in 2006/07, only the minimum dividend forecast ratio is applicable. Monitor has authorised a working capital facility of £8 million which has not been utilised. Plan Actual Approved ratio Minimum Dividend cover ratio 1.33 3.33 >1

23. Related party transactions Barnsley Hospital NHS Foundation Trust is a public benefit corporation which was established by the granting of authorisation by the Independent Regulator for NHS Foundation Trusts, Monitor. Barnsley Hospital NHS Foundation Trust is inherently still part of the NHS family and 96% of all income is received from Department of Health bodies. Details of this income can be found at notes 3 and 4. The NHS Foundation Trust has also received £26,000 revenue and capital payments from its charitable funds.The Trustees of the charitable fund are also members of the Foundation Trust Board. Copies of the audited accounts of the Funds Held on Trust are available from Liz Hindley, Financial Accountant, Finance Department, Gawber Road, Barnsley S75 2EP.

24. Private finance transactions 24.1 PFI schemes deemed to be off-balance sheet 2006/07 2005/06 £000 £000 Amounts included within operating expenses in respect of PFI 1,874 1,692 Amortisation of PFI deferred asset 0 0 Net charge to operating expenses 1,874 1,692

The Trust is committed to make the following payments during the next year. £000 £000 PFI scheme which expires; 6th to 10th years (inclusive) 1,953 1,842 £000 Estimated capital value of the PFI scheme 1,698 Contract Start date: 2 January 2002 Contract End date: 1 January 2017

The PFI is the Catering Department scheme for the provision of a kitchen and dining facility for the production of patient, staff and visitors meals.

24.2 ‘Service’ element of PFI schemes deemed to be on-balance sheet The Trust has no on-balance sheet PFI schemes.

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25. Financial instruments FRS 13, Derivatives and Other Financial Instruments, requires disclosure of the role that financial instruments have had during the period in creating or changing the risks an entity faces in undertaking its activities.The Trust is not exposed to the degree of financial risk faced by business entities because of the continuing service provider relationship that the Trust has with local Primary Care Trusts and the way those Primary Care Trusts are financed. Also financial instruments play a much more limited role in creating or changing risk than would be typical of the listed companies to which FRS 13 mainly applies. The Trust has 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. As allowed by FRS 13, debtors and creditors that are due to mature or become payable within 12 months from the balance sheet date have been omitted from all disclosures. Provisions are shown gross. Any amount expected in reimbursement against a provision (and included in debtors) is separately disclosed. Liquidity risk The Trust’s net operating costs are incurred under annual service agreements with local Primary Care Trusts, which are financed from resources voted annually by Parliament.The Trust also largely finances its capital expenditure from funds made available from Government under an agreed borrowing limit. The Trust is not, therefore, exposed to significant liquidity risks. Interest-rate risk 100% of the Trust’s financial assets and 100% of its financial liabilities carry nil or fixed rates of interest. Barnsley Hospital NHS Foundation Trust is not, therefore, exposed to significant interest-rate risk. The following two tables show the interest rate profiles of the Trust’s financial assets and liabilities:

25.1 Financial assets Currency Fixed rate Non-interest bearing Total Floating Fixed Non-interest Weighted average Weighted average Weighted rate rate bearing interest rate period for which fixed average term £000 £000 £000 £000 % Years Years At 31 March 2007 Sterling 4,931 4,389 0 542 3.5% 0 0 Gross financial assets 4,931 4,389 0 542

Prior year Sterling 3,080 2,824 0 256 3.5% 0 0 Gross financial assets 3,080 2,824 0 256

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25.2 Financial liabilities Currency Fixed rate Non-interest bearing Total Floating Fixed Non-interest Weighted average Weighted average Weighted rate rate bearing interest rate period for which fixed average term £000 £000 £000 £000 % Years Years At 31 March 2007 Sterling 47,585 0 986 46,599 3.5% 0 0 Gross financial liabilities 47,585 0 986 46,599

Prior period Sterling 48,093 0 1,518 46,575 3.5% 0 0 Gross financial assets 48,093 0 1,518 46,575

Note:The public dividend capital has no fixed term for repayment. The fixed rate item of £986,000 relates to Provisions (note 16)

25.3 Foreign currency risk The Trust has nil foreign currency income or expenditure.

25.4 Fair values Set out below is a comparison, by category, of book values and fair values of the Trust’s financial assets and liabilities as at 31 March 2007. Book Value Fair Value Basis of fair valuation £000 £000 Financial assets Cash 4,389 4,389 Debtors over 1 year 542 542 Total 4,931 4,931 Financial liabilities Provisions (986) (986) Note a Public dividend capital 45,855 45,855 Note b Long term creditors (744) (744) Note b Total 44,125 44,125

Notes a. Fair value is identical to book value since, in the calculation of book value, the expected cash flows have been discounted by the Treasury discount rate of 2.2% in real terms. b.The book value for public dividend capital and long term creditors is equal to fair value.

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26 Third party assets The Trust held £140 as cash in hand or at bank at 31 March 2007 on behalf of patients.

27 Intra-Government and other balances Debtors: Debtors: Creditors: Creditors: amounts falling amounts falling amounts falling amounts falling due within due after more due within due after more one year than one year one year than one year £000 £000 £000 £000 Balances with other Central Government Bodies 359 0 2,535 0 Balances with NHS Trusts and Foundation Trusts 2,775 0 2,903 0 Balances with bodies external to government 1,035 542 3,709 744 At 31 March 2007 4,169 542 9,147 744

28 Losses and special payments There were 2331 cases (2115 in 2005/06) of losses and special payments totalling £251,090 (£172,510 in 2005/06) approved during the financial year.This mainly relates to personal injury claims and stock write offs. Also, 2119 of the write offs are promissory notes which are small in value.

29 Pension costs 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 the Secretary for State, in England and Wales. As a consequence it is not possible for the NHS Foundation Trust to identify its share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as a defined contribution scheme and the cost of the scheme is equal to the contribution payable to the scheme, for the accounting period. The Scheme is subject to a full valuation for FRS17 purposes every four years.The last valuation on this basis took place as at 31 March 2003.The Scheme is also subject to a full valuation by the Government Actuary to assess the scheme’s assets and liabilities to allow a review of the employers contribution rates, this valuation took place as at 31 March 2004 and has yet to be finalised.The last published valuation on which contributions are based covered the period 1 April 1994 to 31 March 1999. Between valuations, the Government Actuary provides an update of the scheme liabilities.The latest assessment of the liabilities of the scheme is contained in the Scheme Actuary report, which forms part of the NHS Pension Scheme (England and Wales) Resource account, published annually.These accounts can be viewed on the NHS Pensions Agency website at www.nhspa.gov.uk. Copies can also be obtained from the Stationery Office. The conclusion of the 1999 valuation was that the scheme continues to operate on a sound financial basis and the notional surplus of the scheme if £1.1 billion. It was recommended that employers’ contributions are set at 14% of pensionable pay from 1 April 2003. On advice from the actuary the contribution may be varied from time to time to reflect changes in the scheme’s liabilities. Employees pay contributions of 6% (manual staff 5%) of their pensionable pay.

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Annual Report Annual Report & Accounts & Accounts 2006/07 2006/07

Barnsley Hospital NHS Foundation Trust Gawber Road Barnsley South Yorkshire S75 2EP Annual Report&Accounts Tel. 01226 730000 www.bhnft.nhs.uk 2006/07 This document is printed on paper produced from 75% recycled fibre. Design by: vividcreative.com © 2007 V4219