Section 3
3.1 Operating expenses (by type)
| 2023/24 total £000 | 2022/23 total £000 | |
| Purchase of healthcare from NHS and DHSC bodies1 | 2,268 | 1,759 |
| Purchase of healthcare from non-NHS and non-DHSC bodies2 | 284 | 38 |
| Staff and executive directors costs | 132,801 | 121,397 |
| Remuneration of non-executive directors | 118 | 118 |
| Supplies and services - clinical (excluding drug costs)3 | 4,771 | 3,200 |
| Supplies and services - general | 3,501 | 3,318 |
| Drug costs (drugs inventory consumed and purchase of non-inventory drugs) | 968 | 1,308 |
| Consultancy costs | 24 | 71 |
| Establishment | 1,789 | 1,889 |
| Premises - business rates payable to local authorities | 851 | 738 |
| Premises - other5 | 7,178 | 6,635 |
| Transport (business travel only)6 | 2,669 | 2,103 |
| Transport - other (including patient travel)7 | 1,082 | 438 |
| Depreciation of property, plant and equipment | 5,254 | 4,473 |
| Amortisation of intangible assets | 41 | 119 |
| Net impairments of property, plant and equipment8 | (349) | 8,358 |
| Movement in credit loss allowance-contract receivables/assets | - | (7) |
| Movement in credit loss allowance-all other receivables and investments | - | 1 |
| Change in provisions discount rate(s)9 | (23) | (127) |
| Fees payable to the external auditor audit services - statutory audit | 89 | 87 |
| Internal audit and local counter fraud costs10 | 113 | 173 |
| Clinical negligence - amounts payable to NHS Resolution | 1,058 | 899 |
| Legal fees | 37 | 133 |
| Insurance | 129 | 127 |
| Education and training11 | 1,682 | 1,441 |
| Expenditure on short term leases12 | 56 | 173 |
| Expenditure on low value leases12 | 118 | 57 |
| Variable lease payments not included in the liability12 | (21) | 70 |
| Redundancy | 169 | 120 |
| Car parking and security | - | 1 |
| Hospitality | 2 | 2 |
| Losses, ex gratia and special payments13 | 32 | 8 |
| Other14 | 544 | 366 |
| Total operating expenses | 167,234 | 159,485 |
1: Purchase of healthcare from NHS and DHSC bodies relates to subcontracts to other NHS Providers for a new Veteran’s Mental Health service.
2: Purchase of healthcare from non-NHS and non-DHSC bodies relates to the provision of online therapy from a private medical company to support our own Talking Therapies service.
3: Supplies and services - clinical (excluding drug costs) includes £10,271 for the utilisation of consumables donated from the Department of Health and Social Care in relation to the COVID-19 response. The receipt of these goods is shown within other operating income note 2.5. (2022/23: £64,448).
4: Drugs costs has reduced due to a large service ceasing 31st March 2023. Unit prices have also reduced when certain drugs come off patent.
5: Premises other has increased due to high levels of inflation on utilities.
6: Transport (business travel only) has increased due to an increase in business mileage and vehicle costs.
7: Transport other (including patient travel) includes £569,272 for a new secure patient transport contract.
8: Net impairments of property, plant and equipment are detailed further in note 5.4.
9: Change in provision discount rate movement is due to the change from 1.70% in 2022/23 to 2.45% for 2023/24.
10: Internal audit and local counter fraud costs in 2022/23 includes a review by the Trust internal auditors of a self-assessment of the Trust’s financial sustainability, as requested by NHS England.
11: Education and training includes £677,164 in respect of the notional cost of training provided through utilisation of the Government’s apprenticeship scheme (2022/23: £558,412). The corresponding benefit is detailed in notes 2.5 and 2.8.
12: Short term leases have reduced due to a reduction in short term accommodation leases and machinery hire. Low value leases have increased due to increased spend on white goods and office equipment. Variable lease payments include reversals of historic accruals.
13: Refer to note 19.1 for further details.
14: Within Other operating expenditure, the largest area of expenditure is membership fees to the Royal College of Psychiatrists.
3.2 Limitation on auditor’s liability
The Trust external auditor for 2023/24 was Mazars LLP (2022/23 Mazars LLP) under the terms of engagement dated 3rd October 2023. The limitation on auditor’s liability is unlimited for 2023/24 and was unlimited for 2022/23.
