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

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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