Further analysis of main statements
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) |
2022/23 Total £000 |
2021/22 Total £000 |
| Mental health services | ||
| Income from commissioners under API contracts¹ | 110,859 | 100,217 |
| Services delivered as part of a mental health collaborative | 4,071 | 4,160 |
| Clinical Partnerships providing mandatory services (including S75 agreements) | 18,286 | 16,172 |
| Additional pension contribution central funding² | 4,575 | 4,144 |
| Other clinical income from mandatory services | 5,622 | 4,850 |
| Agenda for change pay award central funding³ | 4,810 | - |
| Total Income from activities | 148,223 | 129,543 |
¹Aligned payment and incentive (API) contracts are the main form of contracting between NHS providers and their commissioners. More information can be found in the 2022/23 National Tariff payments system documents. This income has increased due to the commissioning of additional services by Lincolnshire Clinical Commissioning Group in line with the Mental Health Investment Standard. (2021/22 prior year comparator has been updated with non-API contracts moved to Clinical Partnerships providing mandatory services and Other clinical income from mandatory services.)
²The 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.
³In March 2023 the government announced an additional pay offer for 2022/23, in addition to the pay award earlier in the year. Additional funding was made available by NHS England for implementing this pay offer for 2022/23 and the income and expenditure has been included in these accounts as guided by the Department of Health and Social Care and NHS England. In May 2023 the government confirmed this offer will be implemented as a further pay award in respect of 2022/23 based on individuals in employment at 31 March.
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)
|
2022/23 Total £000 |
2021/22 Total £000 |
|
| Other NHS Providers¹ | 5,072 | 4,815 |
| NHS England² | 11,703 | 5,869 |
| Clinical Commissioning Groups (CCGs)³ | 25,268 | 98,524 |
| Integrated Care Boards³ | 83,447 | - |
| Local Authorities(4) | 22,351 | 20,198 |
| Non NHS: Other(5) | 382 | 137 |
| Total income from activities | 148,223 | 129,543 |
¹Other NHS Providers has been merged for 2022/23 from the separate lines of NHS Foundation Trusts and NHS Trusts reported in 2021/22.
²NHS England income has increased due to the inclusion of £4,810,000 central funding for the Agenda for Change pay offer relating to 2022/23 pay. Under this offer, NHS England will provide funding to cover the costs of the 2022/23 non-consolidated pay awards for NHS employers that are currently funded through the NHS mandate.
³On 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.
(4)Local Authorities income has increased due to the provision of new CAMHS services for Lincolnshire County Council.
(5)Non NHS: Other relates to income from Lincolnshire Primary Care Networks, Autism Care UK, and Barnardo’s for the provision of services.
2.3 Oversees visitors
No income has been received in the year relating to patients charged directly by the provider (2021/22: 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 2022/23 (2021/22: Nil).
2.5 Other Operating Income
| Other Operating Income (by nature) |
2022/23 Total £000 |
2021/22 Total £000 |
| Other Operating Income From Contracts With Customers | ||
| Research and development | 469 | 490 |
| Education and training¹ | 6,518 | 4,293 |
| Non-patient care services to other bodies | 3,558 | 2,333 |
| Reimbursement and top up funding² | 34 | 85 |
| Other³ | 692 | 646 |
| Total other operating contract income | 11,271 | 7,847 |
| Other Non-Contract Operating Income | ||
| Charitable and other contributions to expenditure(4) | 64 | 98 |
| Receipt of capital grants and donations(5) | 112 | - |
| Revenue from operating leases(6) | (26) | 52 |
| Revenue from finance leases (variable lease receipts)(7) | 59 | - |
| Total other non-contract operating income | 209 | 150 |
| Total other operating income | 11,480 | 7,997 |
¹Education and training income has increased from Health Education England due to higher numbers of students and trainees working in the Trust.
²Reimbursement and top up funding income is to fund specific COVID-19 costs relating to SARS-COV2 immunity and reinfection evaluation (SIREN) research and PCR testing. It has reduced to the changes in national guidance regarding PCR testing.
| ³Other Operating Income - Other |
2022/23 Total £000 |
2021/22 Total £000 |
| Catering | 33 | 35 |
| Staff contribution to employee benefit schemes | 622 | 494 |
| Clinical excellence awards | 8 | 69 |
| Other income not already covered (recognised under IFRS 15) | 29 | 48 |
| Total | 692 | 646 |
(4)Charitable and other contributions to expenditure includes £64,448 for personal protective equipment received from the Department of Health and Social Care at nil cost. (2021/22: £97,629) 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)Receipts of capital grants and donations relates to Salix grant funding received as part of the phase 3 Public Sector Decarbonisation Scheme.
(6)Revenue from operating leases includes a sales credit in respect of the previous year’s operating lease income. The 2021/22 comparative has increased by £6k that has been recategorised from other operating income – other.
(7)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
|
2022/23 Total £000 |
2021/22 Total £000 |
| 3,809 | 1,647 |
Revenue recognised in the reporting period that was included within contract liabilities at the previous year end.
2.7 Transaction Price Allocated to Remaining Performance Obligations
| Total £000 | Total £000 |
| 5,388 | 6,079 |
Revenue from existing contracts allocated to remaining performance obligations is expected to be recognised: within one year.
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)
|
2022/23 Total £000 |
2021/22 Total £000 |
|
| Other NHS Providers¹ | 2,026 | 2,139 |
| Department of Health and Social Care | 20 | 55 |
| CCGs/ICBs, NHS England² | 2,050 | 797 |
| Health Education England³ | 6,230 | 4,019 |
| Special Health Authorities(4) | - | 28 |
| Local Authorities | 9 | 6 |
| Non NHS: Other(5) | 1,145 | 953 |
| Total income from activities | 11,480 | 7,997 |
¹Other NHS Providers has been merged for 2022/23 from the separate lines of NHS Foundation Trusts and NHS Trusts reported in 2021/22.
²Other operating income from NHS England and Clinical Commissioning Groups (CCGs) / Integrated Care Boards (ICBs) has increased due to additional funding being provided for HR initiatives regarding international recruitment and staff wellbeing.
³Health Education England other operating income has increased due to higher numbers of students and trainees working in the Trust.
(4)Other operating income from Special Health Authorities is nil for 2022/23. (2021/22: staff secondment at the NHS Trust Development Authority)
(5)Non NHS: Other includes £64,448 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 (2021/22: £97,629).
2.9 Operating lease income
|
2022/23 Total £100 |
2021/22 Total £000 |
|
|
Less receipts recognised as income in year: Minimum lease receipts |
(26) | 52 |
| Total in-year operating lease income | (26) | 52 |
This note discloses income generated in operating lease agreements where the Trust is the lessor.
The Trust has applied IFRS 16 to account for lease arrangements from 1 April 2022 without restatement of comparatives. Comparative disclosures in this note are presented on an IAS 17 basis. This includes a different maturity analysis of future minimum lease receipts under IAS 17 compared to IFRS 16.
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
| Future minimum lease receipts due at 31 March 2023 |
2022/23 Total £000 |
| Not later than one year | - |
| Future minimum lease receipts due at 31 March 2022 |
2021/22 Total £000 |
| Not later than one year | 54 |
| Later than one year and not later than five years | 90 |
| 144 |
3.1 Operating expenses (by type)
|
2022/23 Total £000 |
2021/22 Total £000 |
|
| Purchase of healthcare from NHS and DHSC bodies¹ | 1,759 | 512 |
| Purchase of healthcare from non NHS and non-DHSC bodies | 38 | 29 |
| Purchase of social care² | - | 31 |
| Staff and executive directors costs | 121,397 | 105,606 |
| Remuneration of non-executive directors | 118 | 115 |
| Supplies and services - clinical (excluding drug costs)³ | 3,200 | 2,820 |
| Supplies and services - general | 3,318 | 2,791 |
| Drug costs (drugs inventory consumed and purchase of non-inventory drugs) | 1,308 | 1,345 |
| Consultancy costs | 71 | 119 |
| Establishment(4) | 1,889 | 1,052 |
| Premises - business rates payable to local authorities | 738 | 850 |
| Premises - other(5) | 6,635 | 4,654 |
| Transport (business travel only)(6) | 2,103 | 1,234 |
| Transport - other (including patient travel) | 438 | 429 |
| Depreciation of property, plant and equipment | 4,473 | 2,754 |
| Amortisation of intangible assets | 119 | 160 |
| Net impairments of property, plant and equipment(7) | 8,358 | 1,735 |
| Movement in credit loss allowance-contract receivables/assets | (7) | 6 |
| Movement in credit loss allowance-all other receivables and investments | 1 | - |
| Change in provisions discount rate(s) | (127) | 20 |
| Fees payable to the external auditor, audit services- statutory audit | 87 | 88 |
| Internal audit and local counter fraud costs(8) | 173 | 106 |
| Clinical negligence- amounts payable to NHS Resolution | 899 | 797 |
| Legal fees | 133 | 100 |
| Insurance(5) | 127 | 106 |
| Education and training | 883 | 1,044 |
| Expenditure on short term leases(9) | 173 | - |
| Expenditure on low value leases(9) | 57 | - |
| Variable lease payments not included in the liability(9) | 70 | - |
| Operating lease expenditure(9) | - | 2,828 |
| Redundancy | 120 | 299 |
| Car parking and security | 1 | - |
| Hospitality | 1 | - |
| Losses, ex gratia and special payments (10) | 8 | 4 |
| Other(11) | 366 | 583 |
| Total operating expenses | 158,927 | 132,211 |
¹Purchase of healthcare from NHS and DHSC bodies relates to a payment to United Lincolnshire Hospitals NHS Trust for the treatment of mental health patients within acute settings.
²Purchase of social care in 2021/22 relates to an arrears invoice from Lincolnshire County Council who took over the Adult Social Care Community Care Fund from the Trust in April 2020.
³Supplies and services - clinical (excluding drug costs) includes £64,448 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. (2021/22: £97,629).
(4)Establishment has increased due to HR initiatives regarding vacancy advertising, international recruitment, and supervision.
(5)Premises other has increased due to high levels of inflation on utilities and building supplies. The 2021/22 comparative has been restated to recategorize insurance to its own heading.
(6)Transport (business travel only) has increased due to the re-categorisation of vehicle leases previously shown within operating leases under IAS 17.
(7)Net impairments of property, plant and equipment are detailed further in note 5.4.
(8)Internal audit fee has increased mainly due to a request from NHS England for the Trust to perform a self-assessment of the Trust’s financial sustainability using the supplied Healthcare Financial Management Association (HFMA) checklist. This analysis then required review by the Trust internal auditors.
(9)Due to the introduction of IFRS 16 – Leases on 1st April 22, the majority of the Trust’s leases that were previously classed as operating leases within operating expenditure are now shown on the Statement of Financial Position. Leases for less than 12 months and leases of low value assets do not meet the definition of a lease under IFRS 16 and so remain within the operating expenditure note. Only rental elements of leases are shown within the Statement of Financial Position, variable lease payments also remain in operating expenditure.
(10)Refer to note 19.1 for further details.
(11)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 2022/23 was Mazars LLP (2021/22 Deloitte LLP) under the terms of engagement dated 1 st December 2022. The limitation on auditor’s liability is unlimited for 2022/23 and was unlimited for 2021/22.
4.1 Employee Expenses
|
2022/23 Total £000 |
2021/22 Total £000 |
|
| Salaries and wages | 92,203 | 80,376 |
| Social security costs | 9,691 | 7,935 |
| Apprenticeship levy | 448 | 420 |
| Employers contributions to NHS Pensions | 10,504 | 9,504 |
| Employers contributions to NHS Pensions paid by NHSE on provider's behalf¹ | 4,575 | 4,144 |
| Pension cost - other² | 47 | 42 |
| Termination benefits | 120 | 299 |
| Temporary staff (including agency) | 4,203 | 3,393 |
|
Total Gross Staff Costs Of which |
121,791 | 106,113 |
| Costs capitalised as part of assets | (274) | (208) |
| Total employee benefits excluding capitalised costs | 121,517 | 105,905 |
¹Pension contributions to NHS Pensions paid by NHSE on provider's behalf relate to an increased pension rate because of a revaluation of public sector pension schemes. This has been funded by NHS England, the corresponding receipt can be seen within the Operating Income note 2.1.
²Pensions cost - other relates to employer contributions towards the National Employment Savings Trust (NEST) scheme.
Gross staff costs comprise of "Staff and executive directors costs" and "Redundancy" per the Operating Expenses note 3.1.
Further analysis of employee costs including termination and compensation payments can be found in the Staff Report section of the Annual Report.
4.2 Average number of employees (Whole Time Equivalent basis)
This note is now incorporated within the Staff Report section of the Annual Report.
4.3 Early retirements due to ill health
|
2022/23 Total £000 |
2022/23 Total number |
2021/22 Total £000 |
2021/22 Total number |
|
| Early retirements on the grounds of ill-health | 31 | 1 | 95 | 1 |
The above costs are borne by the NHS Pension Scheme and not the Trust. They are calculated by multiplying the average value of ill-health pension by the number of years from payment to age sixty. Any pensions increase has been ignored.
4.4 Staff Exit Packages
This note is now incorporated within the Staff Report section of the Annual Report.
5.1 Finance Income
|
2022/23 Total £000 |
2021/22 Total £000 |
|
| Best Interest | 884 | 40 |
| Interest income on finance leases | 20 | - |
| Total | 904 | 40 |
Finance income represents interest received on assets and investments in the period. Bank interest received is from the Trust’s Government Banking Scheme (GBS) current account, with the year-on-year increase due to a rise in the Bank of England base rate. (2022/23: year-end base rate was 4.25%, 2021/22: year-end base rate was 0.75%). Interest on finance leases relates to the introduction of IFRS 16 Leases and relates to subleased receivables in note 10.3.
5.2 Finance Cost
|
2022/23 Total £000 |
2021/22 Total £000 |
|
| Interest on lease obligations¹ | 119 | - |
| Total interest expense | 119 | - |
| Unwinding of discount on provisions | (4) | (10) |
| Other finance costs² | - | 2 |
| Total finance costs | 115 | (8) |
¹Interest on lease obligations is in respect of lease liabilities recognised in line with IFRS 16 Leases. Lease liabilities are described further in note 12.2.
²Other finance costs are in respect of bank transaction charges
5.3 The late payment of commercial debts (interest) Act 1998
The Trust incurred £829 of interest and charges for late payment of commercial debts in 2022/23 (2021/22: £157).
5.4 Impairment of Assets (Property Plant and Equipment)
|
2022/23 Total £000 |
2021/22 Total £000 |
|
| Net impairments charged to operating surplus resulting from: Changes in market price¹ | 8,358 | 84 |
| Abandonment of assets in the course of construction² | - | 1,651 |
| Total net impairments charged to operating surplus | 8,358 | 1,735 |
| Impairments charged to the revaluation reserve¹ | 5 | 340 |
| Total net impairments | 8,363 | 2,075 |
¹Impairments of £8,357,571 relate to the year-end desktop revaluation that were charged to operating income as discussed in note 7.3. £5,535 has been charged to the revaluation reserve.
The impairment value includes £7,852,157 in respect of two new wards built at Lincoln County Hospital relating to the eradication of mental health dormitories. Costs of £24,400,232 were capitalised in respect of this build, prior to the year-end physical inspection of the asset.
²Abandonment of assets in the course of construction in 2021/22 related to works at Norton Lea, Boston in connection with the eradication of dormitories schemes.
5.5 Other Gains and (Losses)
|
2022/23 Total £000 |
2021/22 Total £000 |
|
| Gain on disposal of right of use assets - lease termination | 4 | - |
| Loss on disposal of property, plant and equipment | (19) | (9) |
| Total loss on disposal of assets | (15) | (9) |
The gain on disposal of right of use assets relates to the termination of a lease at Jarvis House, Lincoln and Freshney Green, Grimsby.
The loss on disposal of property, plant and equipment largely relates to the scrapping of furniture and fittings and telephony relating to the disposal of Freshney Green. (2021/22: £9,000 monitoring equipment written off.)
6.1 Intangible Assets
| Intangible assets 2022/23 | ||
|
Total £000 |
Software licences / purchased licences £000 |
|
| Valuation / Gross cost at 1 April 2022 brought forward | 2,412 | 2,412 |
| Gross cost at 31 March 2023 | 2,412 | 2,412 |
| Amortisation at 1 April 2022 brought forward | 2,206 | 2,206 |
| Provided during the year | 119 | 119 |
| Amortisation at 31 March 2023 | 2,325 | 2,325 |
|
Net book value NBV total - Purchased at 31 March 2023 |
87 | 87 |
| NBV total at 31 March 2023 | 87 | 87 |
| Intangible assets 2021/22 | ||
|
Total £000 |
Software licences / purchased licences £000 |
|
|
Valuation / Gross cost at 1 April 2021 brought forward Additions - purchased |
2,352 60 |
2,352 60 |
| Gross cost at 31 March 2022 | 2,412 | 2,412 |
| Amortisation at 1 April 2021 brought forward | 2,046 | 2,046 |
| Provided during the year | 160 | 160 |
| Amortisation at 31 March 2022 | 2,206 | 2,206 |
|
Net book value NBV total - Purchased at 31 March 2022 |
206 | 206 |
| NBV total at 31 March 2022 | 206 | 206 |
7.1 Property, Plant and Equipment
| Property, Plant and Equipment 2022/23 | Total £000 | Land £000 | Buildings excluding dwellings £000 | Assets under construction £000 | Plant and machinery £000 | Information technology £000 | Furniture and fittings £000 |
| Valuation/Gross cost at 1 April 2022 brought forward | 79,266 | 9,823 | 47,676 | 10,984 | 1,320 | 8,326 | 1,137 |
| Additions - purchased | 16,158 | - | 599 | 14,761 | 46 | 730 | 22 |
| Additions -purchased from cash donations/grants | 112 | 112 | |||||
| Impairments | (8,372) | - | (8,372) | - | - | - | - |
| Reversal of impairments | 10 | - | 10 | - | - | - | - |
| Reclassifications | 1,402 | 125 | 1,277 | - | - | - | - |
| Revaluations | 1,402 | 125 | 1,277 | - | - | - | - |
| Disposals | (53) | - | - | - | (26) | (7) | (20) |
| Valuation/Gross cost at 31 March 2023 | 88,523 | 9,948 | 65,590 | 714 | 1,506 | 9,355 | 1,410 |
| Accumulated depreciation at 1 April 2022 brought forward | 7,682 | - | - | - | 830 | 5,991 | 861 |
| Provided during the year | 2,838 | - | 1,516 | - | 132 | 1,114 | 76 |
| Accumulated depreciation written off following revaluation (impairments) | (164) | - | (164) | - | - | - | - |
| Accumulated depreciation written off following revaluation (revaluations) | (1,352) | - | (1,352) | - | - | - | - |
| Disposals | (33) | - | - | - | (8) | (7) | (18) |
| Accumulated depreciation at 31 March 2023 | 8,971 | - | - | - | 954 | 7,098 | 919 |
| Net book value - 31 March 2023 | |||||||
| Owned | 79,358 | 9,948 | 65,508 | 714 | 440 | 2,257 | 491 |
| Donated | 193 | - | 82 | - | 111 | - | - |
| NBV total at 31 March 2023 | 79,551 | 9,948 | 65,590 | 714 | 551 | 2,257 | 491 |
| Property, Plant and Equipment 2021/22 | Total £000 | Land £000 | Buildings excluding dwellings £000 | Assets under construction £000 | Plant and machinery £000 | Information technology £000 | Furniture and fittings £000 |
| Valuation/Gross cost at 1 April 2021 brought forward | 66,465 | 9,105 | 45,175 | 2,708 | 1,139 | 7,267 | 1,071 |
| Additions - purchased | 12,612 | - | 1,360 | 10,072 | 181 | 933 | 66 |
| Impairments | (2,293) | - | (2,293) | - | - | - | - |
| Reversal of impairments | (5) | 10 | (15) | - | - | - | - |
| Reclassifications | - | - | 1,651 | (1,796) | - | 145 | - |
| Revaluations | 2,506 | 708 | 1,798 | - | - | - | - |
| Disposals | (19) | - | - | - | - | (19) | - |
| Valuation/Gross cost at 31 March 2022 | 79,266 | 9,823 | 47,676 | 10,984 | 1,320 | 8,326 | 1,137 |
| Accumulated depreciation at 1 April 2021 brought forward | 6,380 | - | (0) | - | 713 | 4,911 | 757 |
| Provided during the year | 2,754 | - | 1,442 | - | 117 | 1,090 | 104 |
| Accumulated depreciation written off following revaluation (impairments) | (223) | - | (223) | - | - | - | - |
| Accumulated depreciation written off following revaluation (revaluations) | (1,219) | - | (1,219) | - | - | - | - |
| Disposals | (10) | - | - | - | - | (10) | - |
| Accumulated depreciation at 31 March 2022 | 7,682 | - | - | - | 830 | 5,991 | 861 |
| Net book value - 31 March 2022 | |||||||
| Owned | 71,504 | 9,823 | 47,597 | 10,984 | 489 | 2,335 | 276 |
| Donated | 79 | - | 79 | - | - | - | - |
| NBV total at 31 March 2022 | 71,583 | 9,823 | 47,676 | 10,984 | 489 | 2,335 | 276 |
7.2 Economic lives of property, plant and equipment
Useful lives reflect the total life of an asset and not the remaining life of an asset. The range of useful lives is shown in the table below;
|
Min Life Years |
Max Life Years |
|
| Land | - | - |
| Buildings excluding dwellings | 13 | 53 |
| Plant and machinery | 4 | 10 |
| Information technology | 2 | 4 |
| Furniture and fittings | 5 | 10 |
7.3 Property plant and equipment valuation
A Modern Equivalent Asset (MEA) valuation in the form of an annual impairment review was applied to the Trust's property base at 31 March 2023. This resulted in an overall decrease in property values of £5,391,600. This comprised of net impairments of £8,363,106 of which £8,357,571 were expensed to income and expenditure and £5,535 were taken to the revaluation reserve as seen in note 5.4. Revaluation gains of £2,971,506 were taken to the revaluation reserve, resulting in a net downward revaluation reserve movement of £2,965,971.
The figures quoted above include revaluation of peppercorn leases recognised as right of use assets on 1st April 2022 as detailed in note 9.1. These assets were revalued as part of the revaluation exercise at 31 st March 2023 and their effects on the revaluation reserve are detailed in note 9.2 and 9.3.
The valuation was performed by Mr Robert Mapletoft, MRICS BSc (Hons) Urban Estate Surveying NDEA of the District Valuation Services (DVS) on the 31st March 2023.
7.4 Property plant and equipment assets subject to an operating lease at the balance sheet date
The Trust held no property, plant and equipment assets subject to operating lease contracts for 2022/23 (2021/22: £Nil).
7.5 Donations of property, plant and equipment
During the year the Trust received £111,500 in capital grant funding as part of the Phase 3 Public Sector Decarbonisation Scheme. (2021/22 £nil).
8.1 Initial application of IFRS 16 on 1 April 2022
IFRS 16 as adapted and interpreted for the public sector by HM Treasury has been applied to leases in these financial statements with an initial application date of 1 April 2022.
The standard has been applied using a modified retrospective approach without the restatement of comparatives. Practical expedients applied by the Trust on initial application are detailed in the leases accounting policy in note 1.13.5.
Lease liabilities created for existing operating leases on 1 April 2022 were discounted using the weighted average incremental borrowing rate determined by HM Treasury as 0.95%.
Reconciliation of operating lease commitments as at 31 March 2022 to lease liabilities as at 1 April 2022
| 1 April 2022 £000 | |
| Operating lease commitments under IAS 17 at 31 March 2022 | 4,795 |
| Impact of discounting at the incremental borrowing rate | (35) |
| IAS 17 operating lease commitment discounted at incremental borrowing rate Less: | |
| Commitments for short term leases | (53) |
| Irrecoverable VAT previously included in IAS 17 commitment | (188) |
| Services included in IAS 17 commitment not included in the IFRS 16 liability | (1,843) |
| Other adjustments: | |
| Differences in the assessment of the lease term | 10,461 |
| Total lease liabilities under IFRS 16 as at 1 April 2022 | 13,137 |
8.2 Reconciliation of carrying value of lease liabilities
Lease liabilities are included within borrowings in the statement of financial position. A breakdown of borrowings is disclosed in note 12.1.
|
2022/23 £000 |
|
| Carrying value at 31 March 2022 | - |
| IFRS 16 implementation - adjustments for existing operating leases | 13,137 |
| Additions | 290 |
| Lease liability remeasurements | 366 |
| Application of effective interest rate | 119 |
| Early terminations | (624) |
| Lease payments (cash outflows) | (1,660) |
| Carrying value at 31 March 2023 | 11,628 |
Lease payments for short term leases, leases of low value underlying assets and variable lease payments not dependent on an index or rate are recognised in operating expenditure.
These payments are disclosed in Note 3.1. Cash outflows in respect of leases recognised on-SoFP are disclosed in the reconciliation above.
Income generated from subleasing right of use assets is £36k and is included within finance lease receivables in note 10.3.
8.3 Maturity analysis of future lease payments as at 31 March 2023
|
Total 31 March 2023 £000 |
Of which leased from DHSC group bodies: 31 March 2023 £000 |
|
| Undiscounted future lease payments payable in: | ||
| - not later than one year; | 1,450 | 649 |
| - later than one year and not later than five years; | 5,006 | 2,540 |
| - later than five years | 5,884 | 5,136 |
| Total gross future lease payments | 12,340 | 8,325 |
| Finance charges allocated to future projects | (712) | (555) |
| Net lease liabilities at 31 March 2023 11,628 7,770 of which | 11,628 | 7,770 |
| Leased to other NHS providers | - | |
| Leased to other DHSC group bodies | 7770 |
8.4 Commitments in respect of operating leases as at 31 March 2022 (IAS 17 basis)
This note discloses costs incurred in 2021/22 and commitments as at 31 March 2022 for leases the trust previously determined to be operating leases under IAS 17.
| Operating lease expenditure: |
2021/22 £000 |
| Minimum lease payments | 2,828 |
| TOTAL | 2,828 |
| Future minimum lease payments due: |
31 March 2022 £000 |
| Not later than one year; | 3,000 |
| Later than one year and not later than five years; and | 1,795 |
| Later than five years. | - |
| TOTAL | 4,795 |
| Future minimum sublease payments to be received | (144) |
Note 9.1 Right of use assets
| Right of use assets 2022/23 | Total £000 | Property (land and buildings) £000 | Plant and machinery £000 | Transport equipment £000 | Of which: leased from DHSC group bodies £000 |
| Valuation / gross cost at 1 April 2022 - brought forward | - | - | - | - | - |
| IFRS 16 implementation - adjustments for existing operating leases / subleases | 20,674 | 20,143 | 383 | 148 | 14,100 |
| Additions | 290 | 232 | - | 58 | - |
| Remeasurements of the lease liability | 366 | 406 | (40) | - | 57 |
| Impairments | (195) | (195) | - | - | (5) |
| Revaluations | 100 | 100 | - | - | 112 |
| Disposals / derecognition | (693) | (693) | - | - | - |
| Valuation/gross cost at 31 March 2023 | 20,542 | 19,993 | 343 | 206 | 14,264 |
| Accumulated depreciation at 1 April 2022 - brought forward | - | - | - | - | - |
| Provided during the year | 1,635 | 1,452 | 94 | 89 | 710 |
| Impairments | (30) | (30) | - | - | (3) |
| Revaluations | (117) | (117) | - | - | (103) |
| Disposals / derecognition | (73) | (73) | - | - | - |
| Accumulated depreciation at 31 March 2023 | 1,415 | 1,232 | 94 | 89 | 604 |
| Net book value at 31 March 2023 | 19,127 | 18,761 | 249 | 117 | 13,660 |
| Net book value of right of use assets leased from other NHS providers | 5,909 | ||||
| Net book value of right of use assets leased from other DHSC group bodies | 7,751 |
The standard has been applied using a modified retrospective approach without the restatement of comparatives.
9.2 Revaluation of right of use assets
The Trust has several peppercorn leases included within its right of use assets. These assets were revalued as part of the annual valuation detailed in note 9.3.
Impairments are included within note 5.4. In total, valuation increases of £52,059 were in respect of peppercorn right of use assets. This resulted in £164,933 of impairments being taken to income and expenditure, offset by upward valuations of £216,992 being taken to the revaluation reserve.
9.3 Movements in the revaluation reserve
Movements in the revaluation reserve as at 31 March 2023
| Total £000 | Land £000 | Buildings excluding dwellings £000 | Right of Use peppercorn buildings £000 | |
|
Net book value As at 1 April 2022 brought forward |
20,078 | 6,253 | 13,825 | - |
| Movement in year | 2,549 | 125 | 2,207 | 217 |
| Total at 31 March 2023 | 22,627 | 6,378 | 16,032 | 217 |
Movements in the revaluation reserve as at 31 March 2022
| Total £000 | Land £000 | Buildings excluding dwellings £000 | Right of Use peppercorn buildings £000 | |
|
Net book value As at 1 April 2021 brought forward |
16,999 | 5,545 | 11,454 | - |
| Movement in year | 3,079 | 708 | 2,371 | - |
| Total at 31 March 2022 | 20,078 | 6,253 | 13,825 | - |
10.1 Trade and other receivables
| Amounts falling due within one year: 31 Mar 2023 31 Mar 2022 Current | 31 Mar 2023 £000 | 31 Mar 2022 £000 |
| Contract receivables invoiced | 2,604 | 3,334 |
| Contract receivables not yet invoiced / non-invoiced¹ | 5,907 | 410 |
| Allowance for impaired contract receivables | - | (7) |
| Allowance for impaired other receivables | (1) | - |
| Prepayments | 988 | 886 |
| Finance lease receivables² | 54 | - |
| PDC dividend receivable | - | 143 |
| VAT receivable | 464 | 15 |
| Clinician pension tax provision reimbursement funding from NHSE³ | 3 | 5 |
| Other receivables | 7 | 79 |
| Total Current Trade and Other Receivables | 10,026 | 4,865 |
| Of which: Receivables from NHS and Department of Health and Social Care group bodies: | 5,741 | 1,427 |
| Receivables from other bodies: | 4,285 | 3,438 |
|
Non-Current Prepayments |
28 | 60 |
| Finance lease receivables² | 266 | - |
| Clinician pension tax provision reimbursement funding from NHSE³ | 232 | 54 |
| Total Non Current Trade and Other Receivables | 526 | 114 |
|
Of which: Receivables from NHS and Department of Health and Social Care group bodies: |
498 | 54 |
| Receivables from other bodies: | 28 | 60 |
¹Contract receivables have increased due to the inclusion of £4,810,000 of central funding from NHS England for the Agenda for Change pay offer relating to 2022/23 pay.
²Finance lease receivables relate to subleases previously classed as operating lease income. As part of the introduction of IFRS 16 Leases, the standard has been applied using a modified retrospective approach without the restatement of comparatives. Further details are in note 10.3.
³The Trust has accounted for a receivable of £234,592 (2021/22: £58,976) due from NHS England in respect of clinician's pension tax. This is based on actual information provided by NHS England regarding the actual uptake of the scheme. Clinicians that have exceeded their annual pension allowance because of work undertaken during the year are able to have 217 any related tax charge paid by NHS Pension Scheme if they have opted to. The Trust is contractually bound to pay this corresponding amount to the clinician on their retirement to ensure that they are fully compensated for any deduction from their income from NHS Pension Scheme on retirement. NHS England and the Government are committed to fund any payments to clinicians as and when they arise, this is shown in non-current receivables above. A corresponding provision relating to the Trust's payment to clinicians is included in the provisions note of these accounts.
10.2 Allowances for credit losses
| 31 Mar 2023 | 31 Mar 2022 | |||
| Contract receivables and contract assets £000 | All other receivables £000 | Contract receivables and contract assets £000 | All other receivables £000 | |
| Allowances as at 1 April - brought forward | 7 | - | 1 | - |
| Allowances | (7) | 1 | - | - |
| New allowances arising | - | - | 6 | - |
| Allowances as at 31 March | - | 1 | 7 | - |
Following the implementation of IFRS 9, the Trust is required to provide for expected credit losses. The Trust uses a five-step provision matrix to calculate this. This involves grouping receivables of similar risk profiles and calculating the expected credit losses based on historical loss rates for these risk profiles. Any forward-looking macro-economic factors are also considered when calculating these losses. These are calculated on a quarterly basis.
The current credit loss allowance at the year-end is £708 (2021/22: £7,247). There are no macro-economic factors affecting these calculations.
10.3 Finance lease receivables
This note discloses future lease payments receivable from lease arrangements classified as finance leases where the Trust is the lessor.
| 31 Mar 2023 £000 | |
| Finance lease receivables at 31 March 2022 | - |
| IFRS 16 implementation - adjustments for existing subleases | 336 |
| Interest arising (unwinding of discount) | 20 |
| Lease receipts (cash payments received) | (36) |
| Finance lease receivables at 31 March 2023 | 320 |
Finance leases are in respect of the sub-leasing 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.
The Trust has applied IFRS 16 to account for lease arrangements from 1 April 2022 without restatement of comparatives. Comparative disclosures in this note are presented on an IAS 17 basis.
10.4 Finance lease receivables maturity analysis
| Total 31 Mar 2023 £000 | Of which leased to DHSC group bodies: 31 Mar 2023 £000 | |
|
Undiscounted future lease receipts receivable in: - not later than one year; |
73 | 73 |
| - later than one year and not later than two years; | 53 | 53 |
| - later than two years and not later than three years; | 34 | 34 |
| - later than three years and not later than four years; | 34 | 34 |
| - later than four years and not later than five years; | 34 | 34 |
| - later than five years | 122 | 122 |
| Total future finance lease payments to be received | 350 | 350 |
| Unearned interest income | (30) | (30) |
| Net investment in lease (net lease receivable) | 320 | 320 |
|
of which Leased to other NHS providers |
20 | |
| Leased to other DHSC group bodies | 300 |
11.1 Trade and other payables
| 31 Mar 2023 £000 | 31 Mar 2022 £000 | |
|
Current Trade payables |
1,794 | 3,597 |
| Capital payables | 2,133 | 2,898 |
| Accruals¹ | 5,781 | 5,747 |
| Social security costs | 1,293 | 1,196 |
| Other taxes payable | 1,053 | 889 |
| PDC dividend payable | 31 | - |
| Pension contributions payable | 1,486 | 1,350 |
| Other payables² | 6,026 | 948 |
| Total Current Trade and Other Payables | 19,597 | 16,625 |
|
Of which: Payables to NHS and Department of Health and Social Care group bodies: |
932 | 1,851 |
| Payables to other bodies: | 18,665 | 14,774 |
¹Accruals includes £1,037,625 in respect of annual leave remaining untaken at the year-end (2021/22: £1,149,899).
²There are no early retirements in other payables (2021/22: Nil). 2021/22 included pension contributions payable which have been recategorized to its own heading.
Other payables contain £5,007,814 in respect of the Agenda for Change pay offer relating to 2022/23 pay. Income receivable from NHS England towards the costs of the 2022/23 nonconsolidated pay awards for NHS employers currently funded through the NHS mandate is shown within note 2.2.
There are no non-current trade and other payables as at 31st March 2023 (2021/22: Nil).
11.2 Other liabilities
| 31 Mar 2023 £000 | 31 Mar 2022 £000 | |
|
Current Deferred income: contract liabilities |
5,388 | 6,079 |
| Total Other Current Liabilities | 5,388 | 6,079 |
There are no non-current other liabilities as at 31st March 2023 (2021/22: Nil).
11.3 Other financial liabilities
There are no other financial liabilities as at 31st March 2023 (2021/22: Nil).
12.1 Borrowings
| 31 Mar 2023 £000 | 31 Mar 2022 £000 | |
|
Current Lease liabilities |
1,326 | - |
| Total current borrowings | 1,326 | - |
|
Non-current Lease liabilities |
10,302 | - |
| Total non current borrowings | 10,302 | - |
The Trust has applied IFRS 16 to lease arrangements within these accounts from 1 April 2022 without restatement of comparatives. More information about leases and the impact of this change in accounting policy can be found in note 8.1.
12.2 Reconciliation of liabilities arising from financing activities
| Total 31 Mar 2023 £000 | Lease liability 31 Mar 2023 £000 | |
| Carrying value at 1 April 2022 | - | - |
|
Cash movements: Financing cash flows - payments and receipts of principal |
(1,541) | (1,541) |
| Financing cash flows - payments of interest | (119) | (119) |
|
Non-cash movements: Impact of implementing IFRS 16 on 1 April 2022 |
13,137 | 13,137 |
| Additions | 290 | 290 |
| Lease liability remeasurements | 366 | 366 |
| Application of effective interest rate | 119 | 119 |
| Early terminations | (624) | (624) |
| Carrying value at 31 March 2023 | 11,628 | 11,628 |
13.1 Provisions for liabilities and charges
| Current | Non Current | |||
| 31 Mar 2023 £000 | 31 Mar 2022 £000 | 31 Mar 2023 £000 | 31 Mar 2022 £000 | |
| Pensions - Early departure costs | 39 | 38 | 108 | 157 |
| Pensions - Injury benefit | 52 | 51 | 408 | 565 |
| Legal claims | 50 | 71 | - | - |
| Redundancy | - | 241 | - | - |
| Clinician pension tax reimbursement | 3 | 5 | 232 | 54 |
| Other | - | - | 147 | 147 |
| Total | 144 | 406 | 895 | 923 |
Pensions - early departure costs relating to staff refers to early retirements previously agreed, for which the amount and timing of the provision is reasonably certain. The Trust makes payment to NHS Pensions quarterly and the provision is calculated to cover the life expectancy of each claimant.
Pensions - injury benefits include provisions for payments made for injury benefit claims awarded against the Trust, for which the timing of the provision is reasonably certain. The Trust makes payment to NHS Business Services Authority quarterly and the provision is calculated to cover the life expectancy of each claimant.
Legal claims are based on the excess payments required for current legal claims that are provided by NHS Resolution. These claims are expected to be settled in the 12 months following 31st March 2023, for which the amount and timing of the provision is reasonably certain.
Clinicians pension tax reimbursement The Trust has accounted for a provision of £234,592 (2021/22: £58,976) in respect of clinician's pension tax. This is based on actual information provided by NHS England regarding the actual uptake of the scheme. Clinicians that have exceeded their annual pension allowance as a result of work undertaken during the year are able to have any related tax charge paid by NHS Pension Scheme if they have opted to. The Trust is contractually bound to pay this corresponding amount to the clinician on their retirement to ensure that they are fully compensated for any deduction from their income from NHS Pension Scheme on retirement. This is shown in non-current provisions and the amount and timing is reasonably certain.
Other provisions are a provision for backdated VAT relating to locums working through direct engagement. The amount and timing of this is reasonably certain.
| Total £000 | Pensions - early departure costs £000 | Pensions: injury benefits £000 | Legal claims £000 | Redundancy £000 | Clinician pension tax reimbursement £000 | Other £000 | |
| At 1 April 2022 | 1,329 | 195 | 616 | 71 | 241 | 59 | 147 |
| Change in the discount rate | (127) | (12) | (115) | - | - | - | - |
| Arising during the year | 216 | 5 | 18 | 17 | - | 176 | - |
| Utilised during the year - accruals | (375) | (40) | (56) | (38) | (241) | - | - |
| Unwinding of discount rate | (4) | (1) | (3) | - | - | - | - |
| At 31 March 2023 | 1,039 | 147 | 460 | 50 | - | 235 | 147 |
|
Expected timing of cash flows: - not later than one year; |
144 | 39 | 52 | 50 | - | 3 | - |
| - later than one year and not later than five years; | 473 | 105 | 194 | - | - | 27 | 147 |
| - later than five years. | 422 | 3 | 214 | - | - | 205 | - |
| TOTAL | 1,039 | 147 | 460 | 50 | - | 235 | 147 |
13.2 Clinical negligence liabilities
The amount included in provisions of NHS Resolution as at the 31st March 2023 in respect of clinical negligence liabilities of Lincolnshire Partnership NHS Foundation Trust is £9,906,436 (31st March 2022: £12,691,223).
13.3 Contingent Assets/(Liabilities)
There were no contingent assets or liabilities during 2022/23 (2021/22: Nil).
14.1 Revaluation Reserve
| Total Revaluation Reserve £000 | Property, Plant and Equipment £000 | Right of Use Assets £000 | |
| Revaluation reserve at 1 April 2022 brought forward | 20,078 | 20,078 | - |
| Net impairments | (5) | (5) | - |
| Revaluations | 2,971 | 2,754 | 217 |
| Transfer of the excess of current cost depreciation over historical cost depreciation to the income and expenditure reserve | (417) | (417) | - |
| Revaluation reserve at 31 March 2023 | 22,627 | 22,410 | 217 |
| Total Revaluation Reserve £000 | Property, Plant and Equipment £000 | Right of Use Assets £000 | |
| Revaluation reserve at 1 April 2021 brought forward | 16,999 | 16,999 | - |
| Net impairments | (340) | (340) | - |
| Revaluations | 3,725 | 3,725 | - |
| Transfer of the excess of current cost depreciation over historical cost depreciation to the income and expenditure reserve | (306) | (306) | - |
| Revaluation reserve at 31 March 2022 | 20,078 | 20,078 | - |
15.1 Cash and Cash Equivalents
| 31 Mar 2023 £000 | 31 Mar 2022 £000 | |
| At 1 April brought forward | 41,709 | 30,011 |
| Net change in year | (763) | 11,698 |
| At 31 March | 40,946 | 41,709 |
|
Broken down into: Cash at commercial banks and in hand |
19 | 19 |
| Cash with the Government Banking Service | 40,927 | 41,690 |
| Cash and cash equivalents as in SoFP and SoCF | 40,946 | 41,709 |
15.2 Third Party Assets Held
| 31 Mar 2023 £000 | 31 Mar 2022 £000 | |
| Bank balances | 18 | 28 |
The third-party assets relate to monies held by the Trust on behalf of patients. This has been excluded from cash at bank and in hand figure reported in the accounts.
16.1 Contractual Capital Commitments
| 31 Mar 2023 £000 | 31 Mar 2022 £000 | |
| Property, plant and equipment (including IM&T) | 61 | 11,845 |
| Total as at 31 March | 61 | 11,845 |
Contractual capital commitments at the 31st March 2023 relate to the Trust’s eradication of dormitories scheme at Norton Lea, Boston. (2021/22: Eradication of dormitories schemes at the Peter Hodgkinson Centre, Lincoln.)
16.2 Other Financial Commitments
The Trust is not committed to making any payments under non-cancellable contracts for the year ended 31st March 2023 (2021/22: Nil).
17.1 Related Party Transactions
Lincolnshire Partnership NHS Foundation Trust is a public benefit corporation which was established under granting of authority by Monitor. Foundation Trusts are now regulated by NHS England (formerly Monitor) who have licenced the Trust to operate as a Foundation Trust.
Details of personal compensation, where applicable, for key management personnel can be seen in the Remuneration Report accompanying these Financial Statements.
During the year the Trust had several material transactions with the Department of Health and Social Care or with other entities for which the Department is regarded as the ultimate parent and controlling party. 226
The Trust has opted to apply the exemption under paragraph 25 of IAS 24 in respect of disclosure requirements for Government-related entities. The following list details the main public entities that the Trust has had material transactions with (over £10 million) during the year ranked by amount (highest first):
NHS Lincolnshire ICB – income in respect of Commissioner requested services;
NHS Lincolnshire CCG – income in respect of Commissioner requested services;
Lincolnshire County Council - income in respect of Commissioner requested services;
NHS Pension Scheme – expenditure in relation to employer pension contributions; and
H M Revenue and Customs – taxation.
| Revenue £000 | Expenditure £000 | |
| Value of transactions with other related parties in 2022/23: Other bodies or persons outside of the whole of government accounting boundary | 73 | 580 |
| 73 | 580 | |
| Value of transactions with other related parties in 2021/22: Other bodies or persons outside of the whole of government accounting boundary | 18 | 301 |
| 18 | 301 |
17.2 Related Party Balances
| Receivables £000 | Payables £000 | ||
|
Value of balances with other related parties at 31 March 2023: Other bodies or persons outside of the whole of government accounting boundary |
6 |
44 | |
| Total balances with related parties at 31 March 2023 | 6 | 44 | |
|
Value of balances with other related parties at 31 March 2022: Other bodies or persons outside of the whole of government accounting boundary |
14 | 13 | |
| Total balances with related parties at 31 March 2022 | 14 | 13 |
Charitable Trust funds are held and managed by Lincolnshire Community Healthcare Services NHS Trust. Audited accounts of the funds held on Trust can be obtained on request from October 2023, where they will also be published on the Charity Commission website.
In respect of these funds, draft figures relating to relating to Lincolnshire Partnership NHS Foundation Trust have been received. Expenditure of £2,000 (2021/22: £16,000) has been incurred and income received into the funds of £3,000 (2021/22: £7,000). The fund balance at 31st March 2023 was £61,000 (2021/22: £60,000).
18.1 Carrying value and fair value of financial assets - 31 March 2023
| Total £000 | Held at amortised cost £000 | |
|
Assets as per SoFP Trade and other receivables excluding non financial assets - with NHS and Department of Health and Social Care bodies |
6,239 | 6,239 |
| Trade and other receivables excluding non financial assets - with other bodies | 2,833 | 2,833 |
| Cash and cash equivalents (at bank and in hand (at 31 March 2023)) | 40,946 | 40,946 |
| Total at 31 March 2023 | 50,018 | 50,018 |
18.2 Carrying value and fair value of financial assets - 31 March 2022
| Total £000 | Held at amortised cost £000 | |
|
Assets as per SoFP Trade and other receivables excluding non financial assets - with NHS and Department of Health and Social Care bodies |
1,337 | 1,337 |
| Trade and other receivables excluding non financial assets - with other bodies | 2,538 | 2,538 |
| Cash and cash equivalents (at bank and in hand (at 31 March 2022)) | 41,709 | 41,709 |
| Total at 31 March 2022 | 45,584 | 45,584 |
Most the Trust's financial assets relate either to cash or to money due from other NHS organisations. Other NHS organisations are extremely unlikely to default on payments, and the Trust would only invest its cash deposits within a strict investment policy. There are no transactions involving hedging, foreign currency or other investments prone to market fluctuations. There is therefore no material exposure to credit, market or liquidity risks. The only identified potential credit risk is regarding the ageing of impaired receivables.
18.3 Carrying value and fair value of financial liabilities - 31 March 2023
| Liabilities as per SoFP | Total £000 | Held at amortised cost £000 |
| Obligations under leases | 11,628 | 11,628 |
| Trade and other payables excluding non financial liabilities - with NHS and Department of Health and Social Care bodies | 901 | 901 |
| Trade and other payables excluding non financial liabilities - with other bodies | 16,319 | 16,319 |
| Total at 31 March 2023 | 28,848 | 28,848 |
18.4 Carrying value and fair value of financial liabilities - 31 March 2022
| Liabilities as per SoFP | Total £000 | Held at amortised cost £000 |
| Trade and other payables excluding non financial liabilities - with NHS and Department of Health and Social Care bodies | 1,851 | 1,851 |
| Trade and other payables excluding non financial liabilities - with other bodies | 12,689 | 12,689 |
| IAS 37 provisions which are financial liabilities | 241 | 241 |
| Total at 31 March 2022 | 14,781 | 14,781 |
The Trust's financial liabilities are generally of a short-term and uncomplicated nature which are not particularly influenced by external factors. The Trust updates a long-term financial plan every year, which includes a detailed cash flow forecast, and has no reason to assume that it will be unable to pay its suppliers, employees and finance costs. There are therefore no material liquidity risks.
18.5 Maturity of financial liabilities
| 31 Mar 2023 £000 | 31 March 2022 £000 | |
| In one year or less | 18,670 | 14,781 |
| In more than one year but not more than five years | 5,006 | - |
| In more than five years | 5,884 | - |
| Total at 31 March | 29,560 | 14,781 |
19.1 Losses and Special Payments
| 31 Mar 2023 | 31 Mar 2022 | |||
| Number of cases | £000 | Number of cases | £000 | |
|
Losses Cash losses |
2 | - | 3 | - |
| Fruitless payments and constructive losses | 19 | 7 | 6 | 1,655 |
| Bad debts and claims abandoned | 1 | - | 1 | 6 |
| Total Losses at 31 March | 22 | 7 | 10 | 1,661 |
|
Special Payments Ex-gratia payments |
12 | 154 | 8 | 20 |
| Total Special Payments at 31 March | 12 | 154 | 8 | 20 |
| Total Losses and Special Payments at 31 March | 34 | 161 | 18 | 1,681 |
The amounts above are reported on an accruals basis and exclude any provision for future losses. The Trust has recovered no losses during the year (2021/22: Nil).
19.2 Gifts
The Trust has made no gifts during the year to 31st March 2023 (2021/22: Nil).
20.1 Events After the Reporting Period
The Trust has accrued £5,007,814 in respect of the 2022/23 NHS Agenda for Change pay offer. This was offered in March 2023 but was not finalised until after the year end. It has therefore been treated as an adjusting post balance sheet event. The Trust has also accrued for £4,810,000 of funding from NHS England in respect this offer (2021/22: Nil).
