Financial

The financial management of the Trust now reflects the NHS Foundation Trust financial regime rather than the traditional NHS Trust financial requirements.  The change in regime has several technical accounting implications (such as the treatment of asset impairments), but more importantly incorporates a cultural change in the treatment of cash balances, the use of financial ratios and risk assessment, and the absence of the break even mentality prominent in traditional NHS financial planning.

The Trust is consequently no longer constrained by an External Financing Limit imposed by the Department of Health but instead is able (if it wishes) to borrow up to a limit prescribed by Monitor.  In addition and most importantly, the Trust may now create cash surpluses, for reinvestment in services and equipment.