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Transcription

1 HDL (2005) 31 abcdefghijklm = eé~äíü=aéé~êíãéåí= = méêñçêã~ååé=j~å~öéãéåí=c=cáå~ååé=aáêéåíçê~íé= Dear Colleague NHSSCOTLAND: GUIDANCE ON CHARGING FOR NON-PATIENT CATERING AND THE PRODUCTION OF CATERING TRADING ACCOUNTS Purpose 1. This document provides guidance on charging for nonpatient catering and on the production of trading accounts for catering activities. This HDL replaces NHS Circular 1978 (GEN) 6. Background 2. The guidance has been developed as a result of the recommendations in the Audit Scotland Report published in November 2003, Catering for Patients, one of which was that NHS Circular 1978 (GEN) 6 be withdrawn and replaced with guidance that states that non-patient catering activities should at least break even or NHS bodies should have a clear, written policy on the level and costs of subsidisation. Action 3. Directors of Finance and Catering Managers should have arrangements in place to produce trading accounts for catering activities by Chief Executives, Directors of Finance and Catering Managers are requested to circulate copies of this HDL to all staff with catering responsibilities. 11 July 2005 Addresses For action Chief Executives, NHS Boards, Special Health Boards, and NHS National Services Scotland Directors of Finance, NHS Boards, Special Health Boards, and NHS National Services Scotland Catering Managers, NHS Boards, Special Health Boards, and NHS National Services Scotland For information Scottish Partnership Forum Enquiries to: Ross Scott Directorate of Performance Management and Finance Health Department Basement Rear St Andrew's House EDINBURGH EH1 3DG Tel: Fax: ross.scott@scotland.gsi.gov.uk Yours sincerely PETER COLLINGS Director of Performance Management & Finance abcde abc a SE Approved Version 1.1

2 INTRODUCTION 1. This guidance has been developed as a result of the Audit Scotland Report, Catering for Patients, published in November 2003, which recommended that the Scottish Executive should withdraw the circular, NHS 1978 (GEN) 6, and replace it with guidance which states that non-patient catering activities should at least break even or that NHS bodies should have a clear, written policy on the level and costs of subsidisation. The guidance defines nonpatient catering, advises on the differing levels of charging for NHS staff and visitors, and outlines the factors which should be taken into account in the preparation of trading accounts. BACKGROUND 2. Following the publication of Catering for Patients, a sub-group of the Facilities Management Advisory Board was formed with an agreed remit to: establish what catering accounts are in place across NHSScotland; establish if accounts distinguish between the cost of supplying patient and non-patient meals; establish what overheads are included in the cost of supplying non-patient meals; cost the 20 standard items across NHSScotland; develop a model trading account for catering; and produce guidance for NHSScotland to replace circular NHS 1978 (GEN) 6. NON-PATIENT CATERING 3. Non-patient catering, is defined as catering provided in NHS facilities for NHS staff and visitors. CHARGES FOR NHS STAFF AND VISITORS 4. As a general rule, the charge for catering items purchased by visitors should have a surcharge of at least 50% on the price paid by NHS staff, with the exception of items such as confectionery, canned drinks and products marked with a selling price. TRADING ACCOUNTS 5. The production of trading accounts, both forecast and outturn, for catering activities is the joint responsibility of Catering Managers and Directors of Finance. Trading accounts should be produced ideally in but certainly by Annex A lists the Relevant Costs involved in the provision of non-patient catering which should be included in trading accounts and also lists the Sunk Costs which should not be included. Annex B suggests a means of separating patient and non-patient costs in relation to staffing and the division of labour. 6. Examples of patient and non-patient trading reports are attached at Annexes C1-C7. 1.

3 7. NHS Boards should agree catering income for the forthcoming year with catering departments, and trading accounts must be able to demonstrate to NHS Boards whether non-patient catering: is breaking even against forecast of projected budget for patient and non-patient catering; is projecting a budget that includes anticipated wage increases; is contributing to sunk costs; or is subsidised, and, if subsidised, provide clear justification for subsidisation. 8. Trading accounts should be provided for each facility as production by NHS Board or Division could lead to cross-subsidisation. While it is acknowledged that certain smaller facilities will not break even in the provision of non-patient catering, the reasons behind these instances should be justified and explained. 9. All catering departments should have an auditable process for the production of trading accounts and have appropriate resources, equipment and training in place to operate them. 10. Waste management and monitoring procedures should be in place to ensure waste is kept to a minimum. PREPARATION OF TRADING ACCOUNTS 11. In preparing trading accounts the following conventions should be observed: 11.1 Income should include: cash receipts from dining room cash tills; value of official meal vouchers; balance of value at selling price of meals supplied on part payment or at a reduced rate (e.g. school/work placements); cash receipts from vending machines which are inclusive in the catering budget; hospitality recharges; invoices on external catering; and other, as included in the catering budget Income should exclude: income generated by the public pound, i.e. catering services provided by shared services at a no-profit gain (e.g. meals to patients in community); and income generated which is not part of the catering budget Provisions: all catering departments should have a system in place to split actual provision costs between patient and non-patient catering. 2.

4 11.4 Staffing: staff costs, which are associated with the provision of non-patient catering, must be included in the trading account. The splitting of staff costs must be in line with auditable information process, as, for example, in the method outlined in Annex B Overheads: overheads/indirect non-pay costs that are directly related to the provision of nonpatient catering, must be included in trading accounts. Examples of headings are listed in Annex A; overheads should be allocated against patient and non-patient catering where possible; and research has shown that overheads average at 6% of total catering expenditure. It is recommended that remaining unallocated overhead costs should be split equally between patient and non-patient catering. FREQUENCY OF REPORTS 12. Examples of trading accounts, which might be used as part of catering departments management system, as required by NHS Boards, are provided at Annexes C1 to C7. These include summaries and breakdowns of patient and non-patient catering expenditure against budgets and cover conventional cooking and the use of cook-chill products. The information provided in such trading accounts would form part of the national benchmarking figures collated annually by the Property and Environment Forum Executive, Facilities Management Advisory Board, Catering Group. Scottish Executive Health Department July

5 ANNEX A RELEVANT COSTS The following relevant costs should be included in the production of trading accounts: Direct Indirect/Overheads Catering Staff (Meals Production) Catering Staff (Dining Room) Dish/Potwash Staff Catering Supervision Clerical Services Catering Management Provisions Transport Services Consumables Disposable Items Hardware & Crockery Equipment Purchase (under 5,000) Equipment Repair (vending, beverage machines) Equipment Rental Printing & Stationery Training & Travel Uniforms IT Licences Tele Rental Professional Fees Equipment Capital Charges Cleaning Materials & Tools Dishwashing SUNK COSTS The following sunk costs, i.e. costs that require to be paid whether or not non-patient catering is in operation, should NOT be included in the production of trading accounts: Equipment & Maintenance Heat, Light & Power Rates Land & Building Charges Financial services Personnel Services Estates Services Management Domestic Services Management Transport Management Hospital/Site General Management/Administration.

6 ANNEX B STAFFING and the DIVISION OF LABOUR COSTS The following example is suggested as one way of separating patient and non-patient costs, although administrators may use other methods as long as these are auditable: 1. Identify total hours allowed for the provision of service to patient and non-patient catering for this example 2,100 hours. 2. Identify hours which can clearly be allocated to each heading: Patient Catering Hours Non-patient Catering Hours Plated meals staff 850 Dining room staff 400 Diet cook/cook 250 Servery 250 Share of washing up 200 Total 1100 Total Take the total of these hours away from the number of hours allowed to provide the service to arrive at the number of unallocated hours: Budget minus Patient Non-patient Total 2,100 hours 1100 hours 850 hours 1,950 hours Unallocated 150 hours. 4. Split the 150 unallocated hours equally the patient and non-patient headings as follows to give the division of labour between patient and non-patient catering activity. Patient Catering Hours Non-patient Catering Hours Allocated 1100 Allocated 850 Unallocated 75 Unallocated 75 Total 1175 Total Calculate division of labour between patient and non-patient catering activity as a percentage of the hours identified to provide the catering service to patients and non-patients: Total Hours Identified 2, % Patient Catering 1,175 56% Non-patient Catering %

7 ANNEX C This Annex comprises samples of trading accounts for patient and non-patient catering, covering both conventionally cooked and the use of cook chill meals, and summary accounts. Annex C1 Summarises Annexes C2 (Patient Catering) and C3 (Non-Patient Catering) for X Division Annex C2 Summarises Patient Catering for X Division covering Facilities A and B Annex C3 Summarises Non-Patient Catering for X Division covering Facilities A, B, C and D Annex C4 Illustrates a layout for a facility (Facility Y ) for Patient Catering by conventional cooking Annex C5 Illustrates a layout for a facility (Facility Y ) for Non-Patient Catering by conventional cooking Annex C6 Illustrates a layout for a facility (Facility Y ) for Patient Catering by provision of cook chill products Annex C7 Illustrates a layout for a facility (Facility Y ) for Non-Patient Catering by provision of cook chill products

8 ANNEX C1 X DIVISION CATERING SUMMARY PERIOD ENDING EXPENDITURE ANNUAL FUNDED YTD BUDGET BUDGET EXPEND VARIANCE BUDGET EXPEND VARIANCE ESTAB AVE PAY WTE WTE WTE PATIENT CATERING 62,000 NON-PATIENT CATERING 1,114,700 TOTAL PAY EXPENDITURE 1,176,700 NON-PAY PATIENT CATERING 491,000 NON-PATIENT CATERING 649,400 TOTAL NON-PAY EXPENDITURE 1,140,400 TOTAL EXPENDITURE 2,317,100 INCOME NON-PATIENT CATERING (1,764,100) TOTAL INCOME (1,764,100)

9 ANNEX C2 X DIVISION CATERING SUMMARY - PATIENT CATERING PERIOD ENDING EXPENDITURE ANNUAL FUNDED YTD BUDGET BUDGET EXPEND VARIANCE BUDGET EXPEND VARIANCE ESTAB AVE PAY WTE WTE WTE FACILITY A - PATIENT CATERING 38,000 FACILITY B - PATIENT CATERING 24,000 TOTAL PAY 62,000 NON-PAY FACILITY A - PATIENT CATERING 291,000 FACILITY B - PATIENT CATERING 200,000 TOTAL NON-PAY 491,000 TOTAL EXPENDITURE 553,000

10 ANNEX C3 X DIVISION CATERING SUMMARY - NON-PATIENT CATERING PERIOD ENDING EXPENDITURE EXPENDITURE ANNUAL FUNDED YTD BUDGET BUDGET EXPEND VARIANCE BUDGET EXPEND VARIANCE ESTAB AVE PAY WTE WTE WTE FACILITY A- NON-PATIENT CATERING 631,700 FACILITY B - NON-PATIENT CATERING 430,000 FACILITY C - NON-PATIENT CATERING 30,000 FACILITY D - NON-PATIENT CATERING 23,000 TOTAL PAY EXPENDITURE 1,114,700 NON-PAY FACILITY A- NON-PATIENT CATERING 386,900 FACILITY B - NON-PATIENT CATERING 250,000 FACILITY C - NON-PATIENT CATERING 7,000 FACILITY D - NON-PATIENT CATERING 5,500 TOTAL NON-PAY EXPENDITURE 649,400 TOTAL PAY & NON-PAY EXPENDITURE 1,764,100 INCOME FACILITY A- NON-PATIENT CATERING (1,018,600) FACILITY B - NON-PATIENT CATERING (680,000) FACILITY C - NON-PATIENT CATERING (37,000) FACILITY D - NON-PATIENT CATERING (28,500) TOTAL INCOME (1,764,100) INCOME SURPLUS/DEFICIT

11 ANNEX C4 FACILITY Y TO ACCOMMO THE PROVISION OF PATIENT CATERING BY CONVENTIONAL COOKING ETC (EXCLUDING COOK-CHILL ) PERIOD ENDING EXPENDITURE ANNUAL FUNDED YTD BUDGET BUDGET EXPEND VARIANCE BUDGET EXPEND VARIANCE ESTAB AVE PAY WTE WTE WTE CATERING MANAGER 50,000 CATERING SUPERVISOR 45,000 CLERICAL STAFF 26,000 CATERING STAFF ( MEALS PRODUCTION ) 100,000 CATERING ASSTS ( DISH/POT WASH ) 38,000 TOTAL PAY EXPENDITURE 259,000 NON-PAY PROVISIONS 200,000 CONSUMABLES 6,000 DISPOSABLE ITEMS HARDWARE 1,000 CROCKERY 8,000 CLEANING MATERIALS 10,000 EQUIPMENT PURCHASE 10,000 EQUIPMENT SERVICE CONTRACTS 3,000 EQIPMENT REPAIR 2,000 EQUIPMENT RENTAL PRINTING & STATIONERY 21,000 TRAINING 3,000 TRAVEL 2,000 UNIFORMS 1,500 PROFESSIONAL FEES 1,000 I.T. LICENCES 3,000 TELE RENTAL 200 TRANSPORT EQUIPMENT CAPITAL CHARGES 7,000 TOTAL NON-PAY EXPENDITURE 278,700 TOTAL PAY & NON-PAY EXPENDITURE 537,700

12 ANNEX C5 FACILITY Y TO ACCOMMO THE PROVISION OF NON-PATIENT CATERING BY CONVENTIONAL COOKING ETC ( EXCLUDING COOK-CHILL ) PERIOD ENDING EXPENDITURE ANNUAL FUNDED YTD BUDGET BUDGET EXPEND VARIANCE BUDGET EXPEND VARIANCE ESTAB AVE PAY WTE WT E WTE CATERING MANAGER 60,000 CATERING SUPERVISOR 87,300 CLERICAL STAFF 38,000 CATERING STAFF ( MEALS PRODUCTION ) 100,000 CATERING ASSTS ( DINING ROOM ) 470,000 CATERING ASSTS ( DISH/POT WASH ) 30,000 TOTAL PAY EXPENDITURE 785,300 NON-PAY PROVISIONS 203,000 CONSUMABLES 6,000 DISPOSABLE ITEMS HARDWARE 1,000 CROCKERY 8,000 CLEANING MATERIALS 10,000 EQUIPMENT PURCHASE 10,000 EQUIPMENT SERVICE CONTRACTS 3,000 EQIPMENT REPAIR 2,000 EQUIPMENT RENTAL PRINTING & STATIONERY 21,000 TRAINING 3,000 TRAVEL 2,000 UNIFORMS 1,500 PROFESSIONAL FEES 1,000 I.T. LICENCES 3,000 TELE RENTAL 200 TRANSPORT EQUIPMENT CAPITAL CHARGES 7,000 TOTAL NON-PAY EXPENDITURE 281,700 TOTAL PAY & NON-PAY 1,067,000 INCOME DINING ROOM SALES (1,037,000) VENDING MACHINES (20,000) HOSPITALITY (10,000) TOTAL INCOME (1,067,000) INCOME SURPLUS / DEFICIT ( )

13 ANNEX C6 FACILITY Y TO ACCOMMO THE PROVISION OF COOK CHILL PATIENT CATERING PERIOD ENDING ANNUAL FUNDED YTD PAY BUDGET BUDGET EXPEND VARIANCE BUDGET EXPEND VARIANCE ESTAB AVE WTE WTE WTE CATERING MANAGER CATERING SUPERVISOR CLERICAL STAFF CATERING ASSTS ( DISH/POT WASH ) 38,000 TOTAL PAY EXPENDITURE 38,000 NON-PAY PROVISIONS 8,000 CPU PATIENT MEALS CHARGES - PROVISIONS 145,000 CPU PATIENT MEALS CHARGES - OVERHEADS 138,000 EQUIPMENT CAPITAL CHARGES TOTAL NON-PAY EXPENDITURE 291,000 TOTAL PAY & NON-PAY EXPENDITURE 329,000

14 ANNEX C7 FACILITY Y TO ACCOMMO THE PROVISION OF COOK CHILL NON-PATIENT CATERING PERIOD ENDING ANNUAL FUNDED YTD PAY BUDGET BUDGET EXPEND VARIANCE BUDGET EXPEND VARIANCE ESTAB AVE WTE WTE WTE CATERING MANAGER 25,400 CATERING SUPERVISOR 87,300 CLERICAL STAFF 19,000 CATERING ASSTS ( DINING ROOM ) 470,000 CATERING ASSTS ( DISH/POT WASH ) 30,000 TOTAL PAY EXPENDITURE 631,700 NON-PAY PROVISIONS 53,800 CONSUMABLES 4,200 DISPOSABLE ITEMS HARDWARE 1,000 CROCKERY 8,000 CLEANING MATERIALS 6,500 EQUIPMENT PURCHASE 5,000 EQUIPMENT SERVICE CONTRACTS 1,000 EQUIPMENT REPAIR 1,000 EQUIPMENT RENTAL PRINTING & STATIONERY 4,000 TRAINING 1,000 TRAVEL 1,000 UNIFORMS 500 PROFESSIONAL FEES 500 I.T. LICENCES 1,000 TELE RENTAL 200 TRANSPORT CPU PATIENT MEALS CHARGES - PROVISIONS 150,000 CPU PATIENT MEALS CHARGES - OVERHEADS 147,200 EQUIPMENT CAPITAL CHARGES 1,000 TOTAL NON-PAY EPENDITURE 386,900 TOTAL PAY & NON-PAY EXPENDITURE 1,018,600 INCOME DINING ROOM SALES (985,600) VENDING MACHINES (20,000) HOSPITALITY (13,000) TOTAL INCOME (1,018,600) INCOME SURPLUS / DEFICIT ( )