BHRUT annual report 2009 - Barking Havering and Redbridge ...

Annual Report & Accounts 2009-2010
19
IFRS Preparations
The Trust has prepared the Accounts under
International Financial Reporting Standards (IFRS) for
the first time in 2009/10. The Trust re-stated its
2008/09 comparative position and the 2009/10
opening balances under IFRS, which have been
externally audited. The main impact on the revenue
position in 2009/10 has been to account for the PFI
contract for Queen’s Hospital as a finance lease and
therefore as an asset on the balance sheet, which
impacts on the accounting transactions going through
the I&E position. Overall there was an adverse impact
of £2.0m in 2009/10, which is excluded from the
Trust’s position when assessing performance against
the control total.
Financial Governance
The Trust’s financial situation is monitored by its
Finance Committee, which was chaired by Non
Executive Director Mark Hicks, prior to the
appointment of the new Chairman, Sir David Varney
in January 2010, who took over the Chairmanship
from that point. There were eight meetings held in
2009/10, of which Mark Hicks chaired two, Barbara
Liggins (Acting Chairman) five and Sir David Varney
one. The Trust Audit Committee, which is chaired by
Stuart Cruickshank, monitors the Trusts governance
arrangements. Stuart resigned his chairmanship of the
Audit Committee in June 2010.
The Trust’s current external auditors are the Audit
Commission. The cost of their work performed
amounted to £311k for the year.
Pension liabilities have been accounted for in
accordance with note 1.7 of the Accounts.
Remuneration Report
The remuneration package and conditions of service
for Executive Directors is agreed by the Trust
Remuneration Committee, a Committee of the Board
of Directors consisting of the Non-Executive Directors,
including the Chairman of the Trust.
The remuneration for certain Executive Directors does
include performance related bonuses and none of the
Executives receives personal pension contributions
other than their entitlement under the NHS pension
scheme.
Each year, the Remuneration Committee considers the
contribution of each Director against the functions of
the post as defined in the current job description and
as foreseen for the future. This is carried out in
parallel with a review of the individual’s career
development and potential opportunities for
progression. The Remuneration Committee considers
the matter of succession planning, although all
Executive Directors hold permanent contracts.
The notice period for Executive Directors is six months
and there are no arrangements for termination
payments or compensation for early termination of
contract.
Non-Executive Directors, including the Chairman, are
appointed by The Appointments Commission for
specified terms subject to re-appointment thereafter at
intervals of no more than four years and to the
relevant laws relating to the removal of a Director.
The Constitution currently requires Non-Executive
Directors to retire after eight years’ service.
The Remuneration Committee met five times during
2009/10.
Remuneration Committee Members
Chair – Sir David Varney
Barbara Liggins
Ray Playford
John Goulston
Ruth McAll
Remuneration Report