Working together for a healthier future. Finance Department Business Plan

Transcription

1 Working together for a healthier future Finance Department Business Plan

2 Version control Document Name: Finance Department Business Plan Date of issue: April 2009 Version Number: 0.01 Editing Owner: Linda Hough Business Manager Signed off: 16th April 2009 Russell Favager Director of Finance Review Date: July

3 1. INTRODUCTION 4 2. EXECUTIVE SUMMARY 4 3. KEY MANAGEMENT RESPONSIBILITIES 6 4. PREPERATION OF THE FINANCE DIRECTORATE BUSINESS PLAN Approach Contributors to the plan Department Structure 9 5. PERFORMANCE HEADLINES 9 6. PRIORITY AREAS FOR Finance Department Objectives Individual Team Objectives REPORTING ARRANGEMENTS LIST OF APPENDICES APPENDIX l: Vision, Aims and Corporate Priorities APPENDIX ll: Finance Department Organisational Chart APPENDIX lll: PRIORITY OBJECTIVES AND MILESTONES APPENDIX lv: FINANCIAL PLAN

4 1. INTRODUCTION This Business Plan establishes NHS Wirral Finance Department s priorities for and outlines the Department s objective s to be achieved and how they will be achieved. 2. EXECUTIVE SUMMARY This plan is specific for the Finance Department and has clear relationships with the PCT s local and national policy documents, such as: NHS Wirral Operational Plan The Operating Framework for the NHS in England World Class Commissioning Use Of Resources This Business Plan details how the planning process was approached, how it has been adopted and how we will move forward with our plans. The objectives outlined below and at 6.1 describe the department s vision and the direction of travel which underpins NHS Wirral s objectives and supports and develops the organisation. The role of the Finance Department is to develop financial strategy for NHS Wirral, and to provide financial advice and support to the board and budget managers, ensuring that all transactions are actioned and recorded in accordance with national guidance and regulations. Due to significant restructuring within the Finance Department within the last twelve months it was appropriate for the department to focus on the priorities for the forthcoming period and to decide what could be achieved within agreed timescales. This plan concentrates on the objectives to be delivered within the period and will be reviewed periodically throughout the year; measurement of progress against the plan will be monitored and reported at Senior Finance Manager s meeting and at Directorate Review session s. It was agreed that by March 2011 we will have: FD 1. Fully embedded the new financial ledger and ensure all staff are properly trained and system used to full potential FD 2. Continuously reviewed the processes, systems and procedures of all key tasks and then documented best practices FD 3. Provided financial expertise and information to support the delivery of the PCT s strategic and operational objectives FD 4. Provided continuous staff development opportunities to include induction, training and mentoring FD 5. A fully staffed, effective, well-connected team across the department 4

5 FD 6. Implemented, rolled out and continuously evaluated our 2 year Business Plan for the Department FD 7. Agreed and reviewed three individual business improvement objectives that support the business plan with every staff member Individual team s objectives that support and contribute to the overall department objectives can be found at appendix lll. Russell Favager Director of Finance 5

6 3. KEY MANAGEMENT RESPONSIBILITIES Key Areas of Responsibility Post Title Officer Tel. No. Overall responsibility for the provision of advice to the PCT Board on financial matters Director of Finance Russell Favager Provide financial and management accounting services to the PCT Deputy Director of Finance Alan Howgate Extension 3960 Provide expert advice on budget setting and control Monitor GMS/PMS, Prescribing and Dental contracts Income monitoring and financial planning Providing monthly, quarterly and annual returns for the SHA. Head of Financial Management Andrea Wood Extension 3951 Management and responsibility for the financial accounting of the PCT Treasury management and ledger services Asset management and external financial reporting Head of Financial Services Karl Norris Extension 3951 Responsible for providing financial advice for commissioning hospital and other community services Finance Staff Development lead Head of Commissioning Finance Mark Bakewell

7 Responsible for the production of all financial information relating to the PCT s directly provided services Developing and monitoring a performance framework regarding budgeting and reporting of Income and expenditure for directly provided services Finance lead on PCT wide projects and developments, including estates and capital projects Providing specialist technical accounting expertise Head of Provider Services Finance Senior Development and Capital Accountant David Grundy Extension 3959 Stephen Stuart Extension PREPERATION OF THE FINANCE DIRECTORATE BUSINESS PLAN The Finance Department began its activities for the planning round in November 2008 at which point the Finance Department held an away day to reflect on the PCT s priorities, as documented in the PCT Strategic Plan, and to consider and debate how the team would contribute meaningfully to those targets. A follow on session was held on 21st January 2009 and a summary of objectives that were agreed by the individual teams were presented to the group demonstrating relationships between team objectives and Departmental objectives. All objectives presented on the day were discussed then agreed and are included in this plan (Appendix lll). The following pyramid overleaf demonstrates how the Team and Department objectives feed into the overall PCT s Strategic objectives and the timescales involved. See Appendix l for full explanation of the PCT s vision, aims and corporate priorities. 7

8 4.1 Approach The following diagram demonstrates how a bottom up approach was taken when considering objectives ensuring that moving upwards through the pyramid they all had a direct link through to the PCT s overall vision. NHS Wirral Vision 4 Strategic Aspirations(5 yrs) 11 Strategic Plan Priorities (5 yrs) Financial Governance 7 Finance Department Priorities (2 yrs) 5-7 Team Improvement Objectives (1 yr) 3 Individual Finance Improvement Objectives (1 year) 8

9 4.2 Contributors to the plan The following played a key role in developing the Business Plan. Director of Finance Financial Management Commissioning Finance Provider Services Finance Financial Services Senior Finance Management Team 4.3 Department Structure The Finance Department has been through significant restructuring in the past twelve months and these fundamental changes to the department were driven by the needs of our customers. We have aligned our internal arrangements to reflect the PCT s organisational structure, the purpose being, to meet customer and key stakeholder s needs. The Finance Departments organogram, shown in Appendix ll, reflects this updated structure and validates the natural alignment with the PCT s Directorates. 5. PERFORMANCE HEADLINES The Trust scored Excellent for Quality of Services and Good for Use of Resources for published in Awarded Finance Skills Development Level 1 accreditation Ranked fourth best in the country in WCC competencies Assessed as Green in World Class Commissioning 2 year Business Plan developed User Guide developed to assist managers Appointed Business Manager Achieved significant assurance in all internal and external audit reports Implemented a new financial ledger 6. PRIORITY AREAS FOR The objectives listed in the table in appendix 7.3 are focused on the department s objectives for and beyond and show Department objectives, Team objectives and timelines. In addition each individual member has committed to three individual/personal objectives above and beyond their day job that will support the Department further. These individual objectives are not contained within this document; however the same reporting arrangements will apply to all of the objectives. 9

10 6.1 Finance Department Objectives Following extensive debate and discussions, the following 7 objectives have been agreed. By March 2011 we will have: FD 1. Fully embedded the new financial ledger and ensure all staff are properly trained and system used to full potential FD 2. Continuously reviewed the processes, systems and procedures of all key tasks and then documented best practices FD 3. Provided financial expertise and information to support the delivery of the PCT s strategic and operational objectives FD 4. Provided continuous staff development opportunities to include induction, training and mentoring FD 5. A fully staffed, effective, well-connected team across the department FD 6. Implemented, rolled out and continuously evaluated our 2 year Business Plan for the Department FD 7. Agreed and reviewed three individual business improvement objectives that support the business plan with every staff member In agreeing the priority areas consideration was given to the value of the work and the impact on customers and stakeholders. Further consideration was also given to assess the likelihood of success, in debating all the criterions it was agreed that the objectives could be met within the timelines described and would fully support the organisation. 6.2 Individual Team Objectives When considering Team objectives each Team not only had to consider what they could do to contribute in moving the Department forward but also to demonstrate how this would link back in to the overall Departments objectives. Each Team objective is referenced back to the Finance Department objectives. 10

11 7. REPORTING ARRANGEMENTS Reporting on progress to date for the Team and Department objectives will take place at a minimum quarterly basis at SFM meetings and reviewed within the Directorate Review process. Individual s objectives will be addressed by Senior Finance Managers during the appraisal process in conjunction with KSF review; Appraisals for the coming period must be complete during the period April June SFM s will monitor progress to date with their team members during one to one sessions and report on an exception basis at the relevant SFM meetings. The Business Manager will communicate all updates to the wider Finance Team. 8. LIST OF APPENDICES Appendix l: Appendix ll: Appendix lll: Appendix lv: Vision, Aims and Corporate Priorities Finance Department Structure Priority Objectives Financial Plan 11

12 8.1 APPENDIX l: Vision, Aims and Corporate Priorities 1. Vision Working together for a healthier future 2. Strategic Aspirations To achieve our vision, NHS Wirral has four strategic aspirations to: Involve and empower people Target inequalities through effective partnerships Ensure excellence in our health services Be a high performance, high reputation organisation 3. Corporate Priorities PCT focus for the next 5 years: Front line workforce that delivers health improvement Work with partners to reduce worklessness Prevent falls in the elderly Target alcohol misuse with prevention and treatment Improve mortality rate from breast cancer Screen all smokers for evidence of poor respiratory function Identify and treat more cardiovascular disease Improve mental health Tackle obesity of families and their children Work to replace unwanted pregnancies Stop more people smoking. 12

13 8.2 APPENDIX ll: Finance Department Organisational Chart Director of Finance (Russell Favager) Finance Directorate Business Manager (Linda Hough) Senior Assistant to Director and Deputy Director of Finance (Jackie Smith) Assistant to Finance Team (Nicola Chang) Deputy Director of Finance (Alan Howgate) Senior Development & Capital Accountant (Stephen Stuart) Head of Technology (Ian Hogan) Head of Financial Management (Andrea Wood) Head of Financial Services (Karl Norris) Head of Commissioning Finance (Mark Bakewell) Head of Finance Provider Services (David Grundy) Head of Capital Projects & Premises Management (Doug Baker) Local Counter- Fraud Specialist (Joy Hammond) Local Security Management Specialist (Phil Davies) WHIS (SLA) SBS (SLA) CWP (SLA) 13

14 8.3. APPENDIX lll: PRIORITY OBJECTIVES AND MILESTONES Individual Team objectives linked back to Finance Department objectives Team Objective Reference Financial Management Team FM 1 All staff will be using the ledger system to its full potential* FD 1, 5 *full potential to be determined by gap analysis and user survey FM 2 We will have improved engagement with stakeholders by mutually agreeing FD 3, 5 suitable meeting schedule or other method of communication FM 3 We will have ensured that each member of staff will have a training plan FD 4, 5 facilitated by an annual KSF review and follow up report on achievement FM 4 We will have documented and recorded and tested all procedures for the team FD 2, 5 FM 5 We will have prepared an annual financial management plan monitored monthly by performance FD 3, 5 FM 6 We will have updated 5 year financial planning model on an ongoing basis through the year with a view to reviewing achievement against plan at end of 12 months FD 3 FM 7 We will have developed benchmarking information which will contribute to FD 3 improving our UoR score from 3 to 4 if the organisation wishes to Commissioning Management Team CM 1 Efficient, coherent and detailed Contract Monitoring Systems for ALL contracts. FD 3 CM 2 Improved the quality of information received from relevant internal departments FD 3 and external bodies. CM 3 Improved how we work with the Health Systems Management Directorate. FD 2, 3, 6 CM 4 Quantified, reported and will be monitoring all aspects of the Strategic FD 2, 3, 6 Commissioning Plan investments and savings. CM 5 Improved and increased the efficiency of our reporting. FD 1, 3 CM 6 Committed to the continued development of Finance staff in all areas of FD 4, 5, 7 Commissioning Finance. CM 7 Complete and robust procedure notes for all processes and systems. FD 2 14

15 Provider Services Finance Team PS 1 Established a Provider Services Finance Team of 8 Staff FD 1, 5 PS 2 Achieved a Month End reporting process of 5 Days. FD 2, 3 PS 3 Embedded PSFT into the Provider Services organisation setting SLA s with FD 3 budget holders PS 4 Refocused our staff development responsibilities by ensuring 100% KSF reviews are agreed & documented. FD 1, 4, 5 PS 5 Developing tariffs for a sample of Provider Services FD 2, 3 PS 6 Established a robust system for monitoring 100% of provider block income FD 2, 3 contracts. Financial Services Team FS 1 FS 2 FS 3 FS 4 FS 5 Achieved a level in excess of 95% of all invoices being paid in compliance with the PSPP by obtaining the optimum balance in payment methods and frequencies & by naming and shaming slow approvers Increased the uptake on EPROC from 12% to 50% by extending training and working with Supplies & suppliers to drive a culture change within the organisation. Actioned 100% of current audit recommendations for which we are responsible & by using best practice ensure that our processes will achieve significant assurance at all future audits to ensure any risks identified are low or medium Submitted the year end accounts for 2008/09 in line with the faster close timetable deadline of 23/04/09 to obtain audit clearance in June 2009 through effective planning & workshop attendance Achieved a 1 st percentile ranking for our level of aged debt by eliminating legacy debt, controlling unallocated cash and properly maintaining customer data. FD 2 FD 2 FD 2 FD 3 FD 2, 1, 4 Senior Finance Managers SFM 1 Ensured that 100% of all finance staff will have had a KSF Review and PDP FD 4, 7 SFM 2 Ensured that we have delivered a training programme to 100% of PCT Budget FD 1, 3, 4 Managers SFM 3 We will have produced a Long Term Financial Strategy and Plan FD 3 SFM 4 Maintain Level 3 KLOE's in relation to financial scenario s & to support long term FD 2 planning, put systems in place to achieve Level 4 in the following year SFM 5 We will have identified & reviewed available benchmarking information for a FD 3, 5 15

16 minimum of 10 business areas to advise managers of cost comparison & areas for potential efficiencies SFM 6 We will have implemented a prioritisation tool for 100% of new initiatives and FD 3 evaluated 20% of current initiatives to feed into SPIG SFM 7 Have reviewed & implemented 100% of all audit recommendations FD 3 SFM 8 Developed and implemented local KPI s for key areas within Finance & FD 2 demonstrated a 20% improvement SFM 9 Have produced a departmental business plan & user guide & have FD 2, 3, 4 communicated it to 100% of organisation SFM 10 To have reviewed outcomes against the objectives quarterly FD 2 16

17 8.4. APPENDIX lv: FINANCIAL PLAN Summary of Expenditure Plans Gross Misc Net Budget Income Budget '000 '000 '000 Acute & Specialist Services NHS & Non NHS SLAs (see appendix 3) 234, ,942 Specialised Services 47,598 47,598 Independent Sector Treatment Centres 3,010 3,010 Non Contracted Activity Contract Exclusions 10,313 10, , ,847 Commissioned Out of Hospital Services Continuing Healthcare 10,574 10,574 Funded Nursing Care 6,880 6,880 Care In The Community Schemes - LD Transfer 6,354 6,354 Care In The Community Schemes Other 1,102 1,102 25,214 25,214 Mental Health & Learning Disability Services MH NHS SLAs 39,861 39,861 Joint Packages 4,350 4,350 Other MH & LD Providers 1,639 1,639 Drug & Alcohol Services 2,699 2,699 48,549 48,549 Primary Care & Community Services GMS / PMS 42,976-1,713 41,263 Prescribing 57,172 57,172 Pharmacy 5,262 5,262 Primary Dental Services 22,118-5,043 17,075 Other Primary Care Services 1,130 1,130 Locality Managed Services (see appendix 4) 14, ,879 Wirral-wide Provider Services (see appendix 5) 37,213-4,738 32,475 Primary & Community Services Management 5,475 5, ,233-11, ,731 Public Health Sexual Health Alcohol 1,481 1,481 Weight Management Other Public Health Schemes 1, ,121 Other Commissioning Budgets (inc Networks) Devolved Functions & Regional Levies Hosted Networks 6,078-5,033 1,045 Pay & Prices Reserve 4,469 4,469 Strategic Plan Intiatives Reserve 10,060 10,060 Other Committed Reserves 8,268 8,268 Contingency 4,000 4,000 Other Commissioning Budgets ,512-5,033 28,479 Headquarter Functions (see Appendix 7) 18, ,937 Anticipated Slippage/Use of Contingencies -3,747-3,747 TOTAL EXPENDITURE 608,613-16, ,866 Total Revenue Resource Allocation 593,866 PLANNED SURPLUS 2,000 17

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