Meeting hears Western Trust currently running at a £18.5 million deficit

THE Western Trust is running at a deficit of £18.5 million, it has been revealed.

Addressing the recent monthly meeting of the Trust, the director of finance, Eimear McCauley, also highlighted budget overspending was above the previous financial year’s percentages.

Ms McCauley stated that a mid-year review of the Trust’s financial position will be conducted, taking account of the expected update from the Strategic Planning and Performance Group (SPPG), at the end of September 2022 in relation to further income assumptions for the remainder of this financial year.

She said, ”The Trust is reporting an overspend against its budgets of £18.5 million at August 31, 2022.

“This includes the application of funding confirmed to date by SPPG against the deficit and pressures. The Trust has identified savings of £0.9 million across its budgets which is significantly lower that the levels experienced in the prior year.

“Plans of £0.4 million have been developed in relation to the MORE
Pharmacy savings programme for 2022/23 against a target of £1million and therefore a pro-rata share of the year-to-date gap forms part of the reported deficit.

“SPPG has advised the Trust should only assume Covid funding for PPE beyond Quarter One. The Trust is now reporting an overspend relating to response costs for Quarter Two of £2.5 million.

“The Trust has been advised of an indicative allocation for Quarters One to Three of £13.4 million for the delivery of elective care across a range of specialties for in house and independent sector activity.

“The Trust is reporting expenditure
of £4.9 million as at August 31,
2022.”

Ms McCauley also stressed that the recovery of the financial position to prior percentage levels was at a critical stage and that all directorates in the Trust must take measures focusing on expenditure avoidance or containment to reduce forecast pressures.

She added, “Financial recovery to prior year percentage levels is critical now to ensure that the Trust recovers this position and therefore discussions will take place at Directorate SMT, Finance Focus and mid-year Chief Executive Assurance meetings in this regard. The Trust is projecting financial pressures of £33 million for the year but it is not yet possible to confirm an end of year forecast out-turn. We will be completing a mid-year review of the Trust financial position taking account of the expected update from SPPG in relation to further income assumptions for the remainder of this financial year.

“All directorates must focus on expenditure avoidance or containment to reduce forecast pressures.”