The Christie Foundation Trust Annual Report and Accounts 2021-22

Consolidated Accounts of The Christie NHS Foundation Trust 2021-2022

2. Operating segments

Under IFRS 8 'Operating Segments', the Trust is required to disclose financial information across significant operating segments which reflect the way the management runs the Trust.

The Trust’s core activities fall under the remit of the Chief Operating Decision Maker ("CODM") as defined by IFRS 8 'Operating Segments', which has been determined to be the Management Board, a sub-committee of the Board of Directors. These core activities are primarily the provision of specialist NHS healthcare, the income for which is received through contracts with commissioners. The planned level of activity is agreed with our main commissioners for the year, and are listed in the related party disclosure (see Note 22).

The Trust manages the delivery of healthcare services across clinical divisions. Certain aspects of performance are reported at a divisional level to the Management Board, although this is not the primary way in which financial matters are considered.

The Trust has applied the aggregation criteria from IFRS 8 Operating Segments because the clinical divisions provide similar services, have homogenous customers, common production processes and a common regulatory environment. The overlapping activities and interrelation between the divisions also suggests that aggregation is appropriate. The divisions report to the CODM, and it is the CODM that ultimately makes decisions about the allocation of budgets, capital funding and other financial decisions.

3. Operating income

Group

NHS Foundation Trust

Group

NHS Foundation Trust

2021-2022 2021-2022

2020-2021

2020-2021

£000

£000

£000

£000

Income from activities 3.1.1 Other operating income 3.2

325,701 77,415

325,701 85,904

302,992 61,911

302,992 62,933

403,116

411,605

364,903

365,925

3.1.1 Income from activities by type

Group

NHS Foundation Trust

Group

NHS Foundation Trust

2021-2022 2021-2022

2020-21

2020-21

£000

£000

£000

£000

Block contract/system envelope income* High cost drugs income from commissioners

209,874 85,641 18,730

209,874 85,641 18,730

201,732 83,647 10,170

201,732 83,647 10,170

Other NHS clinical income Elective Recovery Funding

4,382 6,760

4,382 6,760

0

0

Pension contribution central funding**

6,398 1,045

6,398 1,045

Other

314

314

Total

325,701

325,701

302,992

302,992

**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. * As part of the coronavirus pandemic response, transaction flows in 2020/21 were simplified in the NHS and providers and their commissioners moved to a financial framework built predominantly on block contracts and system partnership arrangements. These arrangements continued in 2021/22. Comparatives in this note are presented to be comparable with the current year activity.

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