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

More documents

Recommendations

Info

Annual Report & Accounts 2009-2010 71 30. Finance lease obligations The Trust has no finance lease obligations other than PFI (note 33). 31. Finance lease receivables (i.e. as lessor) The Trust has no finance lease receivables. 32. Finance lease commitments The Trust has no finance lease commitments other than PFI (note 33). 33. Private finance initiative contracts 33.1 PFI schemes off-Statement of Financial Position There are no "off statement of Financial Position" PFI schemes. 33.2 PFI schemes on-Statement of Financial Position The PFI project relates to Queen's Hospital in Romford, which was built by Catalyst Healthcare (Romford) Ltd, (CHRL), completed in October 2006 and fully operational by December 2006. CHRL is a consortium comprising Bovis Lend Lease Limited (the constructor and infrastructural lifecyle provider), Sodexo, (providing a broad range of facilities management services including "living-space" lifecycle) and Uberior Investments, formerly part of HBOS, now part of the Lloyds Banking Group. Bovis, Sodexo and Uberior were original equity holders in CHRL. Bovis have in 2009/10 sold their CHRL equity interest to Infrastructure Investments Ltd, a division of, HSBC. The PFI Project Agreement, with Catalyst comprises a design and build contract which provides Queen's Hospital, a 930 bedded multi-specialty acute hospital in Romford, supported by 16 operating theatres, an Accident and Emergency department, ITU/ HDU facilities, a renal dialysis unit with accompanying diagnostic services such as pathology and radiology. Siemens Healthcare Services Ltd provides a managed equipment service to the Trust as part of the unitary payment, but is not part of the CHRL consortium; however Siemens is a sub-contractor to CHRL. Although financed and managed by CHRL, the hospital's main purpose is the treatment of NHS patients and clinical services will continue to be run by NHS staff. At the end of the Project Term, January 2040, CHML's interest in the facility ceases and no further payments are due to them. CHRL are obliged to maintain the hospital to a required standard throughout the project timescale, and there is an agreed handover commitment requiring this standard to be maintained or made good at the end of the contract. Annual Accounts
72 Barking, Havering & Redbridge University Hospitals NHS Trust Within the contract, there is provision for the Trust to elect to either benchmark or market-test certain facities management services, which may affect the price of services provided by the consortium. From 1 April 2009, and the adoption of International Financial Reporting Standards, the PFI hospital now comes onto the Statement of Financial position. Assets have been recognised for the building and equipment under the scope of the Managed Equipment Service, which are depreciated in accordance with the Trust's accounting policies. The substance of the contract is that the Trust has a financial liability which is similar to a finance lease over the Project term. Payments comprise two elements - imputed finance lease charges and service charges. The financial liability covers the financing cost of the building and equipment, (as distinct from service costs); the timing of the obligations are disclosed below:- Total obligations due for on-statement of financial position PFI contracts: 31 March 2010 31 March 2009 £000 £000 Not later than one year 24,513 23,453 Later than one year, not later than five years 96,193 99,788 Later than five years 525,800 546,739 Sub total 646,506 669,980 Less: interest element (377,936) (398,795) Total 268,570 271,185 33.3 Charges to expenditure The total charged in the year to expenditure in respect of the service element of the on-statement PFI contract was £20.291m (prior year £19.176m). The trust is committed to the following annual charges: 31 March 2010 31 March 2009 £000 £000 [1] PFI scheme expiry date: Not later than one year 0 0 Later than one year, not later than five years 0 0 Later than five years 21,103 20,291 Total 21,103 20,291 The annual payment is subject to an RPI-based indexation in common with most other PFI schemes. Apart from inflationary increases, any increases or decreases in payments are determined by upward or downward service variations, determined by the Trust. [1] Note: there should only be an entry against one of these lines for each PFI contract, for instance, a PFI contract with 20 years to expiry at an annual service charge of £100,000 would require a single entry of 100 against the later than five years line. Annual Accounts
Page 1 and 2:
Barking, Havering and Redbridge Uni
Page 3 and 4:
2 Barking, Havering & Redbridge Uni
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
10 Barking, Havering & Redbridge Un
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22: 20 Barking, Havering & Redbridge Un
Page 71: 70 Barking, Havering & Redbridge Un
Page 85: Produced by the communications depa
show all

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

Create successful ePaper yourself

Delete template?

Save as template?