Fillable Printable Financial Planning Template
Fillable Printable Financial Planning Template
Financial Planning Template
1
Financial Planning Templates 2014/15 to 2018/19 - Guidance for
CCGs
Contents
1. Introduction ................................................................................................................................ 2
2. Cover .......................................................................................................................................... 2
3.
Financial Plan Summary
......................................................................................................... 3
4.
Revenue Resource Limit
......................................................................................................... 3
5.
Planning Assumptions
............................................................................................................. 3
6.
Financial Plan Detail
................................................................................................................ 4
7. QIPP ........................................................................................................................................... 6
8. Risk ............................................................................................................................................. 7
9.
Investment
................................................................................................................................. 8
10.
Better Care Fund (BCF)
...................................................................................................... 9
11.
Contract Value Triangulation
............................................................................................ 10
12.
Cash flow and Statement of Financial Position
............................................................. 11
13. Capital .................................................................................................................................. 11
Appendix A: Suggested Approach
............................................................................................... 12
Appendix B: Financial Planning Business Rules
....................................................................... 14
2
1. Introduction
Planning templates have been constructed to provide sufficient granularity for NHS
England to assess CCG plans for the five year period from 2014/15 to 2018/19.
Due to the need to develop comprehensive plans for a full five year period, templates
have been adjusted from the 2013/14 planning round. Each financial year has its
own expenditure plan. Rather than having to enter values for all five years, the later
years are open to a degree of pre-population by adjusting assumptions on key
factors such as levels of activity growth.
The financial information included in the templates should reflect the assumptions
set out in the wider plans for CCGs.
All financial values should be entered in £000.
Cells in light yellow should be completed by CCGs where appropriate; those in blue
are calculated, and those in light green will be pre-populated.
The sections below give more detailed guidance on each sheet within the workbook.
Appendix A also gives a suggested approach to completing the template.
Please submit completed plans to the Financial Performance (NHS England)
mailbox at
NHSCB.financialperformance@nhs.net
in line with the submission date on
the email instruction. Please also direct any queries on template completion to this
mailbox.
2. Cover
Input is required on this tab.
Firstly select your CCG from the drop down list. This will then populate further
information on this sheet as well as your allocation for 2014/15 and 2015/16 on the
Revenue Resource Limit tab.
Thereafter, please complete all of the boxes shaded red in order to demonstrate
sufficient ownership and sign off of the financial plan.
Once you have finished completing the template please ensure that the box for
quality checks is showing as ‘cleared’ before submitting the plan. Further detail on
the checks can be found in the ‘quality checks’ tab further on in the template.
3
3. Financial Plan Summary
The majority of numbers on the Financial Plan Summary tab will be pre-populated
from the other input sheets within the template, it is therefore suggested that this
sheet is completed once data has been entered into all of the other sheets. The only
numbers that do need to be input on this sheet relate to 2013/14.
Column J requires commentary on the CCG’s financial position to be entered. It is
recommended that financial performance is linked to wider strategic and operational
plans over the five year period.
4. Revenue Resource Limit
This tab will be pre-populated with the CCG’s allocation for 2014/15 and 2015/16 in
order to prevent the difficulties that were faced in 2013/14 reconciling resource limits.
Therefore if the CCG thinks the allocation is incorrect they need to raise this with
their Area Team immediately.
CCGs should enter their assumptions for the years 2016/17 – 2018/19.
Values are shown for the non elective, headroom and 70% non elective collection.
These funds should be taken from the notified allocation and employed non
recurrently with the plans for their investment detailed on the Investment and
Financial Plan Summary tabs.
5. Planning Assumptions
In order to populate future years, an Assumptions tab has been added in in order to
better link assumptions and costs. Percentage growth assumptions should be added
where relevant for each financial year for recurrent costs. The growth percentages
ought to be year on year growth, for example the percentage increase in cost against
a service compared to the previous year. Costs in the financial plan will be pre-
populated with recurrent costs based on the % assumptions added in this tab.
Assumptions should be added for demographic and non-demographic activity
growth, gross provider efficiency and inflation. Demographic growth must be derived
from a published source (e.g. ONS). Non-demographic growth includes pressures
arising from technological developments, increased prevalence etc.
4
This assumptions sheet allows a CCG to link financial planning with other
operational and activity plans, and use this information to drive future year financial
plans.
6. Financial Plan Detail
This is designed to capture all of the CCG’s resource and spend. The table
separates recurrent and non-recurrent items in order to calculate the CCG’s
underlying position.
Rows 2 and 3 detail the resource limit. The figures feed from the revenue resource
limit sheet and therefore do not need to be populated. This is for information while
completing the template and supporting the calculation of surplus or deficit while the
plan is being completed.
The remaining rows detail the expenditure as follows;
Column B - 13/14 Forecast Outturn this column should be populated with the
latest FOT position.
Columns C - E - Adjustments to expenditure baseline - These columns are
designed to account for any adjustments in order for the CCG to get back to a
recurrent opening budget position. The adjustments that reflect the underlying
position should reflect what the organisation has submitted on the non-ISFE
underlying position return.
o
Any non recurrent expenditure incurred in 2013/14 should be entered
in Column C.
o
Column D would include the full year effect of any QIPPs achieved in
2013/14, or of any investments
o
Column E is for any other full year effects not covered in Column D
adjustments.
Column F – This column is calculated and outlines the recurrent underlying
expenditure position for the CCG, and is used to calculate the underlying
surplus.
Columns G - I - Demonstrates the provider efficiency requirement delivered
(min 4%) and the inflation funded to show net price deflation / inflation. These
numbers will be calculated from the assumptions sheet. The % change is not
expected to be applicable to exclusions/cost per case, but CCGs can enter
values if appropriate.
Column J - Demographic Growth uplift reflecting population change (Must be
derived from a published source e.g. ONS). These numbers will be calculated
form the assumptions sheet.
5
Column K - Non-demographic growth pressures arising from other population
changes, technological developments, increased prevalence etc. These
numbers will be calculated from the assumptions sheet.
Column L - Cost pressures. These are free cells to enter costs as financial
values directly onto the expenditure template (i.e. they are not driven by the
assumptions sheet). This would include any recurrent cost pressures not
adequately captured by the headings in columns G to K.
Columns M & N – These cells capture the information entered onto the QIPP
sheet. All QIPP schemes will need to have an expenditure type selected from
the drop down box on the QIPP sheet for the information to flow through to
the Financial Plan and reconcile.
Column O - Investment which is not QIPP related, but relating to other service
quality/developments. As above, this is pre-populated once the CCG has
completed the investments worksheet within the template. All costs entered
on the investments worksheet need to be allocated to a cost category on the
drop down menu for the workbook to reconcile.
Column Q - CCGs need to enter any non-recurrent pass through costs here
that the CCG has received and has been assumed in the allocation.
Column R - Non-recurrent pressures, investments (incl. CQUIN where
relevant). Non-recurrent items all at 2014/15 prices.
Column S – Non Recurrent Investments. As with the recurrent investments
this will be captured from the Investments tab
Columns T & U – Non Recurrent QIPPs. As with the recurrent QIPPs, these
will be captured from the QIPPs sheet.
Include Learning Disability costs under Mental Health (hospital-based) or Community
Services.
The CCG’s total Programme Resources should be matched across the expenditure
categories, the difference being its surplus or deficit (shown in the Financial Plan
Summary). Where reserve budgets are expected to be used to fund other
programme expenditure, e.g. the use of reablement funding for community services
investment, this should be shown netting off in the investments column (i.e. reducing
reserves line and increasing service expenditure).
Running costs have been split between CCG pay costs, CSU re-charge, NHS
Property Services Recharge and other non-pay. The Financial Plan Summary will
match the total expenditure to the running costs allocation to check to see whether
the CCG is within target allocation.
Columns Y - AJ - Monthly expenditure profile. Please enter the correct
monthly profile into these columns. The March figure will calculate
automatically to ensure that the monthly totals match the annual plan in
column V.
6
The template for 2015/16 replicates the 2014/15 sheet requiring the same level of
detail. For the following three years the information requirement is reduced.
7. QIPP
There is a separate QIPP sheet for each year with the first two years requiring
further detail.
The QIPP table splits QIPP into two headings:
Transactional & Contract efficiencies relate to savings made from providers
from purchasing activity more efficiently, i.e. re-procurement of diagnostics,
contract conditions such as new to follow up ratios.
Transformational & Pathway changes relate to savings from de-
commissioning, more effective service provision, new models of care.
Under each heading the QIPP is broken down into separate work streams.
The QIPP plan will need to be split between recurrent and non-recurrent schemes.
Column A requires the local name of each scheme over £0.5m. All schemes that are
under £0.5m should be grouped together under the balance of schemes under
£0.5m section. In order that the QIPP tab feeds the financial plan detail tab column B
requires the area of spend to be selected. Therefore, more than one line would be
needed for each local scheme. For example, a transformational QIPP scheme for a
cardiology pathway redesign might require the following:
In Columns C and D please enter the expected full recurrent annual value of savings
and investment. In the above example the scheme is expected to generate recurrent
savings of £4.5m (Col C) with recurrent annual investment of £1.5m (Col D). Column
E calculates the net annual recurrent saving, in this case £3m.
In Columns F & G please enter how much of that saving/investment will occur in
2014/15. In the above example the investment of £1.5m was needed up front, but
the savings came in half way through the year generating a £2.25m saving and an
overall net saving of £0.75m.
7
Columns I and J calculate the full year effect of the scheme; that is, the difference
between the total recurrent annual saving and the 2014/15 saving. This will be used
to calculate the recurrent underlying surplus.
In Columns L and M please enter the value of any non recurrent savings in that year.
The QIPP sheets for all five years are identical with the exception that for years
2014/15 and 2015/16 the QIPP savings profile is required (columns Q to AB). For
later years the schemes are not expected to be as detailed, but strategic intentions
are expected to be outlined and there are consequently fewer areas of spend to
choose from.
Please note – On each worksheet only enter new schemes anticipated to be effected
that year. Do not include the full year effect of schemes begun in prior periods as this
will be calculated automatically.
Unidentified QIPPs needs to be entered on rows 169 - 173 with the spend category
chosen from the drop down box to ensure the figures feed through to the overall
financial plan. Levels of unidentified QIPP will be reviewed during the assurance
process.
If there are risks to the achievement of the QIPP programme please enter these onto
the Risk sheet.
QIPP schemes may require investment by other parties, for example by an Area
Team within Primary Care. If your CCG’s QIPP requires external investment please
complete the section at the end of the QIPP form – external investment supporting
QIPP.
8. Risk
The format for risk assessment follows a similar format to that used for non-ISFE
reporting throughout 2013-14.
For the first two years, CCGs are required to enter their full risk value and
percentage probability of risk being realised which automatically populates a
potential risk value amount. Please note that risks entered here ought to be anything
in addition to what has been incorporated in the planned position. As a general rule
of thumb, if there is a very high chance that a risk will materialise (over 90%) it would
be expected to be shown in the expenditure tabs as part of the planned surplus or
deficit position. Only include additional risks in this tab which put the achievement of
your planned position at risk.
CCGs are also asked to provide meaningful commentaries against each risk figure
entered, providing specific detail as to what is driving the risk and avoiding general
terminology as much as possible.
8
CCGs are then asked to enter any mitigations that can be used to offset this risk.
This is split between “Uncommitted Funds” and “Actions to Implement”. Uncommitted
funds ought to include any funds available that have not been committed in the
plans. Again CCGs should enter the full mitigation value and the probability of
success of the mitigation working as a percentage and the expected mitigation value
will automatically populate. A commentary box is provided to show detail of what
these mitigating actions are.
For the final three years of the five year plan, CCGs are only required to enter the
potential risk value and expected mitigation value as net figures already, and provide
a commentary to add detail where possible.
The key figure produced by these assessments is the net risk/headroom position
which is used to drive a risk adjusted planned surplus/ (deficit) position in the
Commetary sheet.
9. Investment
The table requires a high-level analysis of where CCGs propose to apply their
investments.
Each development should be named in Column A with the category of spend
selected from Column B in order that the detail feeds through to the financial detail
tab
Recurrent
Column C –Investment the CCG will incur in the financial year. Please enter
the part year effect for the year that is being completed.
Column M – Enter the total value of the investment needed.
Column O – This will calculate the full year effect of the investment (the
difference between Columns M and C) and feed through to the underlying
surplus calculations.
Non Recurrent
Column E - Bought forward Surplus - how and where the brought forward
surplus is being spent
Column F - Non-Recurrent Headroom - application of the funds will be subject
to Business Case approval by ATs and no funds should be committed at plan
stage unless the AT has specifically approved the scheme.
Column G - 70% Threshold
Column H - Readmissions Credit
9
There may be circumstances where expenditure that should have been committed
non-recurrently has been committed recurrently. Where this has happened this
should be recorded as an over-commitment under the recurrent section of the
investment tab.
In the example below; the CCG has planned to invest both the non-recurrent
headroom (£4m) and the 70% threshold (£1m) in non recurrent schemes. However,
only £1m of the £2.5m bought forward surplus is planned to be spent non-
recurrently. Effectively, £1.5m has been invested recurrently and therefore appears
in column C.
10. Better Care Fund (BCF)
CCGs are required to detail investment in the Better Care Fund for 2014/15 and
2015/16.
The top two rows in the worksheet outline the funding available and will be
calculated from elsewhere in the template; the Notified BCF Allocation will be pre-
populated in the Revenue Resource Allocation worksheet; and Transfers from other
Pooled Budgets will be calculated from within this worksheet where additional funds
have been identified for investment into the BCF.
In the Expenditure section CCGs are required to firstly state where the Notified
Allocation will be spent and secondly identify any additional funding that is being
invested into the BCF.
Within both expenditure sections CCGs are asked to detail how the funding will be
spent: which organisation will hold the pooled fund and which Health and Wellbeing
Board will oversee the allocation of funds.
2014/15
B/F surplus
NR
Headroom
70%
Threshold
Re-
admission
Credit
NR Total Total
Available to Invest 0 2500 4000 1000 7500 7,500
Recurrent
Description Area of Spend (select from drop down)
Admission Prevention Schemes (b/fwd Surplus) Other Programme Services 1500
1,500
Sub-total recurrent 1,500 - - - - 1,500
Non-Recurrent
Description Area of Spend (select from drop down)
Admission Prevention Schemes Other Programme Services 4000 4000
4,000
Acute Re-investment Acute contracts -NHS (includes Ambulance services) 1000 1000
1,000
Conti ngency Conti ngency 1000 1000
1,000
Sub-total Non-Recurrent - 1,000 4,000 1,000 - 6,000 6,000
Total planned Investment 1,500 1,000 4,000 1,000 - 6,000 7,500
Remaining Funds (1,500) 1,500 - - - 1,500 -
Recurrent
resource
(underying
and in-yr
surplus)
Non-Recurrent
10
Any benefits expected from this fund should be shown on the QIPP sheets.
11. Contract Value Triangulation
This information is being collated to provide more detailed analysis for planning
purposes and to provide an overall position of contract values reported between
Commissioners, NHS Trusts and Foundation Trusts.
It is expected that organisations will align their plans with those of the wider local
health economy. In order to test the alignment of key assumptions Monitor, NHS
England, and NTDA will reconcile provider and commissioner plans both for the two
and five year submission review phases.
The outputs of the reconciliation will be shared between the regional teams of
Monitor, NHS England and NTDA. Every step will be taken not to prejudice the
position of any trust or commissioner and no information will be shared at individual
organisation level without first contacting the appropriate party.’
There are separate sheets for each year detailing the significant contracts (over
£5m) for acute, mental health and community. The sheet breaks the contracts down
in to value and activity over the relevant headings.
For all contracts under £5m, the total value should be included within the other
contract line.
All contract spend across the headings should reconcile back to the value on the
financial plans elsewhere on the templates. Therefore, for 2013/14 please enter the
forecast performance for each provider rather than values contained within service
level agreements. And for subsequent years please enter the anticipated value of
activity with providers inclusive of any QIPP schemes. Please also outline the QIPP
per provider as a memorandum, as well as the value of CQUIN per provider.
The contracts data tab requires information to be split by point of delivery. If you are
in doubt as to what category activity falls into please refer to the NHS Data Model
and Dictionary (http://www.datadictionary.nhs.uk ).
Entries on this sheet will be compared with provider submissions via Monitor or the
TDA.
11
12. Cash flow and Statement of Financial Position
The cash draw-down profile for the CCG and a projected Statement of Financial
Position will be required for the first two years of the model.
13. Capital
The table captures direct CCG capital plans and those that it is expecting to be made
within its area by other organisations such as NHS Property Services and the NCB
(predominantly Primary Care related).
For 2014/15 the information provided should be in line with the Capital Planning
Returns submitted to your Area Teams and approved by your Region.
