Section 2
2.1 Operating income
2.1 Operating income
All income from patient care activities relates to contract income recognised in line with accounting policy 1.5.
Income from patient care activities (by nature)
| Mental health services | 2023/24 total £000 | 2022/23 total £000 |
| Income from commissioners under API contracts1 | 125,867 | 110,859 |
| Services delivered as part of a mental health collaborative | 4,449 | 4,071 |
| Clinical partnerships providing mandatory services (including S75 agreements)2 | 25,401 | 18,286 |
| Additional pension contribution central funding3 | 5,184 | 4,575 |
| Other clinical income from mandatory services | 2,655 | 5,622 |
| Agenda for change pay award central funding4 | 38 | 4,810 |
| Total Income from activities | 163,594 | 148,223 |
1: Aligned payment and incentive (API) contracts are the main form of contracting between NHS providers and their commissioners. More information can be found in the 2023/24 National Tariff payments system documents at www.
2: S75 agreements are used by Lincolnshire County Council to commission Children & Young People Mental Health services (CYPMH). This income has increased due to investment in existing and new services.
3: The employer contribution rate for NHS pensions increased from 14.3% to 20.6% (excluding administration charge) from 1 April 2019. Since 2019/20, NHS providers have continued to pay over contributions at the former rate with the additional amount being paid over by NHS England on providers’ behalf. The full cost and related funding have been recognised in these accounts.
4: Additional funding was made available by NHS England in 2023/24 and 2022/23 for implementing the backdated element of pay awards where government offers were made at the end of the financial year. 2023/24: In March 2024, the government announced a revised pay offer for consultants, reforming consultant pay scales with an effective date of 1 March 2024. Trade Unions representing consultant doctors accepted the offer in April 2024. 2022/23: In March 2023, the government made a pay offer for staff on agenda for change terms and conditions which was
later confirmed in May 2023. The additional pay for 2022/23 was based on individuals in employment at 31 March 2023.
The Trust’s Provider Licence sets out the commissioner requested services that the Trust must provide. All income from activities shown above is derived from the provision of commissioner requested services.
2.2 Income from patient care (by source)
| 2023/24 total £000 | 2022/23 total £000 | |
| Other NHS providers | 4,694 | 5,072 |
| NHS England1 | 11,447 | 11,703 |
| Clinical Commissioning Groups (CCGs)2 | - | 25,268 |
| Integrated Care Boards2 | 120,549 | 83,447 |
| Local Authorities3 | 25,938 | 22,351 |
| Non NHS: Other4 | 966 | 382 |
| Total Income from activities | 163,594 | 163,594 |
1: NHS England income includes £4,684,137 for a new contract commissioned for Veteran’s Mental Health from 1st April 2023. 2022/23 included £4,810,000 central funding for the Agenda for Change pay offer.
2: On 1st July 2022, CCGs were abolished and absorbed into Integrated Care Boards (ICBs). The above note therefore shows the income from CCGs separately to the income from the newly created ICBs. The total income from these sources has increased due to the commissioning of additional services in line with the Mental Health Investment Standard.
3: Local Authorities income has increased due to the provision of new CYPMH services by Lincolnshire County Council.
4: Non NHS: Other relates to income from Lincolnshire Primary Care Networks, Lifeways, Barnado’s and Macmillan for the provision of services.
2.3 Overseas visitors
No income has been received in the year relating to patients charged directly by the provider (2022/23: Nil).
2.4 Fees and charges (income generation)
Trusts are required by HM Treasury to provide details of any income generation activities where the full costs exceed £1million or the service is otherwise felt to be material. The Trust does not consider itself to have any such income generation activities during 2023/24 (2022/23: Nil).
2.5 Other operating income
Other operating income (by nature)
| Other operating income from contracts with customers | 2023/24 total £000 | 2022/23 total £000 |
| Research and development | 557 | 469 |
| Education and training1 | 7,566 | 6,518 |
| Non-patient care services to other bodies | 2,811 | 3,558 |
| Reimbursement and top up funding2 | - | 34 |
| Other3 | 957 | 692 |
| Total other operating contract income | 11,891 | 11,271 |
| Other non-contract operating income | ||
| Charitable and other contributions to expenditure4 | 10 | 64 |
| Education and training5 | 677 | 558 |
| Receipt of capital grants and donations6 | - | 112 |
| Revenue from operating leases7 | - | (26) |
| Revenue from finance leases (variable lease receipts)8 | 61 | 59 |
| Total other non-contract operating income | 748 | 767 |
| Total other operating income | 12,639 | 12,038 |
1: Education and training income has increased from NHS England due to higher numbers of students and trainees working in the Trust.
2: Reimbursement and top up funding income in 2022/23 relates to specific COVID-19 funding for SARS COV2 immunity and reinfection evaluation (SIREN) research and PCR testing. This funding ceased for 2023/24 due to changes in national guidance on testing.
| 3Other operating income - other | 2023/24 total £000 | 2022/23 total £000 |
| Catering | 45 | 33 |
| Staff contribution to employee benefit schemes | 880 | 622 |
| Clinical excellence awards | - | 8 |
| Other income not already covered (recognised under IFRS 15) | 32 | 29 |
| Total | 957 | 692 |
4: Charitable and other contributions to expenditure includes £10,271 for personal protective equipment received from the Department of Health and Social Care at nil cost. (2022/23: £64,448) In line with the Government Accounting Manual and applying the principles of the IFRS Conceptual Framework, the Trust has accounted for the receipt of these inventories at a deemed cost, reflecting the best available approximation of an imputed market value for the transaction based on the cost of acquisition by the Department. An opposite entry has been included within operating expenses to represent utilisation of the consumables received.
5: Non contract education and training income relates to the benefit received when accessing funds from the Government’s apprenticeship service. The corresponding costs are disclosed in note 3.1 Operating Expenses (by type).
6: Receipts of capital grants and donations in 2022/23 relate to Salix grant funding received as part of the phase 3 Public Sector Decarbonisation Scheme. No such grants have been received in 2023/24.
7: Revenue from operating leases in 2022/23 includes a sales credit in respect of the previous year’s operating lease income.
8: Revenue from finance leases (variable lease receipts) includes income for recharges not forming part of rental income. All rental income in relation to finance leases is shown within finance lease receivables.
2.6 Additional information on revenue contracts with customers recognised in the period
| 2023/24 total £000 | 2022/23 total £000 | |
| Revenue recognised in the reporting period that was included within contract liabilities at the previous year end | 4,049 | 3,809 |
2.7 Transaction price allocated to remaining performance obligations
| Revenue from existing contracts allocated to remaining performance obligations is expected to be recognised: |
2023/24 total £000 | 2022/23 total £000 |
| Within one year | 2,526 | 5,388 |
The Trust has exercised the practical expedients permitted by IFRS 15 paragraph 121 in preparing this disclosure. Revenue from contracts with an expected duration of one year or less and contracts where the Trust recognises revenue directly corresponding to work done to date is not disclosed.
Revenue is received in respect of the transfer of services to patients throughout the year. The transaction prices are stated in the contracts and as a result, no changes to transaction price can occur without a contract variation. As the contracts are reviewed annually, all performance obligations are in relation to the current year.
2.8 Other operating income (by source)
| 2023/24 total £000 | 2022/23 total £000 | |
| Other NHS providers | 2,331 | 2,026 |
| Department of Health and Social Care | 25 | 20 |
| CCGs/ICBs, NHS England1 | 8,446 | 2,050 |
| Health Education England1 | - | 6,230 |
| Local Authorities | 4 | 9 |
| Non NHS: Other2 | 1,833 | 1,703 |
| Total income from activities | 12,639 | 12,038 |
1: Health Education England (HEE) merged with NHS England on 1st April 2023, as a result former HEE contracts are now shown within the CCGs/ICBs and NHS England line.
2: Non NHS: Other includes £10,271 of notional income in respect of the personal protective equipment received from the Department of Health and Social Care at nil cost to the Trust. An equal and opposite entry is included within the operating expenditure note 3.1 to represent utilisation of these consumables (2022/23: £64,448). It also includes a benefit of £677,164 (2022/23: £558,412) in respect of funds accessed through the Government’s apprenticeship service.
2.9 Operating lease income
| Lease receipts recognised as income in year: | 2023/24 total £000 | 2022/23 total £000 |
| Minimum-lease receipts | - | (26) |
| Total in-year operating lease income | - | (26) |
This note discloses income generated in operating lease agreements where the Trust is the lessor.
Lease receipts are in respect of the sub-lease of car parking facilities at The Point, Sleaford to the Lincolnshire Integrated Care Board (formerly Lincolnshire Clinical Commissioning Group) and Lincolnshire Community Health Services. The Trust also subleases Welton House in Lincoln to Lincolnshire Integrated Care Board.
2.10 Future lease receipts
There are no future lease receipts in respect of operating leases (2022/23: £nil).
