Consolidated Trust Position Summary This position is reported

Consolidated Trust Position Summary This position is reported to Monitor and feeds our FRR. The annual budget is the budget approved at the start of 2012/13. The consolidated financial position is a surplus before impairment of £ 1. 44 m. A technical accounting adjustment has been made to include asset impairments of £ 5. 3 m at year end. This comprises a reduction in the value of the Tamarind Centre on sale to SSL of £ 1. 9 m and a downwards valuation in trust land properties of £ 3. 4 m as a result of the annual Valuation. There has been a general decrease in buildings values for the buildings and external works elements of specialised operational assets since 31 March 2012. This is due to a reduction in the cost index over the year. Monitor exclude these adjustments from calculation of the Financial Risk Rating. • Trust performance is described on pages 3 to 12 of this report • • 1

Consolidated Financial Risk Rating (FRR) • • Monitor assess Foundation Trust’s financial performance by use of four criteria. These generate a financial risk rating between 1 -5, 1 is high and 5 is low risk. The plan for 2012/13 achieved a 3, this was for the Trust’s financial plan excluding SSL. The risk rating for the consolidated financial position is 3. In addition to the Financial Risk Rating, Monitor sets each Foundation Trust a Prudential Borrowing Limit and trusts must keep their borrowings within these limits to stay within their terms of authorisation. The Trust has a Tier 2 PBL of £ 112. 6 m. All tier 2 ratios have been met. 2

I&E Summary – Comparison to original plan Movement in forecast While the position before impairments is consistent with that previously reported, there were a number of movements. • The trust secured an additional £ 0. 5 m from the final assessment of CQUIN performance in year • Divisional positions deteriorated by a combined £ 1. 1 m (AWA and SCC worsened partially offset by an improvement in YAHBHM, especially as a result of increased nurse bank and agency activity, medical agency spend and non pay costs • An increase in the level of provisions made for estates dilapidations and potential back pay claims. This will provide an element of Balance Sheet security into 2013/14 3

Statement of Financial Position (Balance Sheet) Highlights Non-current assets • The total spend on the 2012 -13 capital programme was £ 13. 7 m compared to planned expenditure of £ 14. 9 m • The year-end valuation resulted in an overall decrease of £ 5. 6 m Current Assets • Trade and other receivables have decreased in the month due to a reduction in the underlying trade receivables because of resolutions as part of year end. • The cash position is £ 32 m at month 12. Liabilities • The movement in trade and other payables is mainly due to year-end accruals and timing re the payment of invoices due to the financial year-end. • Provisions have been recognised to cover the predicted cost of exit costs, dilapidations and legal cases 4

Healthcare Income Performance against Contracts • At month 12 Healthcare Income has an over recovery against plan of £ 0. 9 m. The key drivers for this are: • CQUIN is forecast of £ 4. 6 m, £ 0. 5 m more than plan. The budget was set at 90% achievement, however the forecast is that 100% will be received in relation to specialised services and addictions schemes, and 95% in relation to Birmingham & Solihull cluster schemes. • There has been £ 0. 4 m over-performance against contracts and cost per case targets for adults, older adults and youth services. • At the start of the year the income risk in relation to forensic CAMHS occupancy was recognised by inclusion of an income provision in the plan – this has not needed to be utilised. Average occupancy for the year has been 15 beds (76%). There has been a downwards trend in occupancy over recent months however and this remains a risk into 2013/14. • Tamarind is £ 0. 3 m behind plan. The plan assumed we would receive £ 0. 4 m in relation to community services income which has not yet been agreed with commissioners. This loss has been offset in part by the earlier opening of beds which has generated higher inpatient income than planned. Inpatient occupancy is less than the target of 96. 5% which along with community income is a risk carried forward into 2013/14. • NAIPS as at M 12 has an average occupancy of 98% with an over performance of £ 1. 1 m. This is in line with the income generation target which was part of AWA’s savings plan for the year. 5

Savings • The savings target for 2012/13 is £ 8 m plus £ 0. 5 m of unachieved schemes brought forwards from prior year, meant a total target of £ 8. 5 m. • As at month 12 there was a YTD shortfall of £ 1. 7 m which was being covered within divisional positions by other underspends, vacancies and other non recurrent credits although the full recurrent savings target has been met. Cash • The Trusts cash holding was £ 32 m at the end of month 12. • The level of cash held on deposit was nil as at the 31 st March 2013. This will be reviewed in line with the treasury management policy and placed back on deposit in Q 1 of 2013 -14 6

Cash Flow Forecast 7

Receivables and Payables Performance Receivables The overall position of the debtors has significantly improved this month. The ageing of debtors of 90+ days, £ 515 k (27%) of total of £ 1, 903 k - Improvement has been made with BEN PCT, payments received with a further payment of £ 54 k received on 08/04/12. Issues still remain with UHB £ 161 K & He. FT £ 53 K but payments are slowly coming through. £ 31. 5 k has been disputed by Ansell Group and £ 29 K by University of Birmingham, these are currently being reviewed by senior managers to resolve. The ageing debtors of 1 -30 & 31 -60 days remain at a steady level and these are closely been chased and monitored to identify any early issues with payment. Adequate provisions have been recognised to minimise any exposure to the I&E position. Payables There was a significant increase in the total creditors in March compared to February. The majority of this increase is accounted for by the high volume of invoices received in March and the timing of payment runs due to year-end. The Creditor payments team have been focusing on resolving many of the historic queries with the aim of reducing our overall balance 8

Capital expenditure 9

Capital expenditure • • • Expenditure is £ 1. 3 m behind plan. This equates to 91% expenditure of YTD plan. £ 1. 1 m of the underspend relates to the Tamarind Centre. In line with prior month forecast, £ 0. 6 m slippage is still expected in 2013/14 for landscaping, FF&E, emergency lighting, and other works. The remaining variance to plan is part due to expenditure items deemed as revenue rather than capital as part of year end review, with the remainder being due to VAT reclaim on expenditure. Due to the sale of the Tamarind Centre to SSL, it has been possible to reclaim 100% of the VAT on invoices, whereas a reclaim of 25. 9% had been assumed in the initial plan. Summary of Disposals: In Q 2, Marsh Lane & Howard Court were sold, with a net profit of £ 0. 09 m. Both properties were vacant but protected on the asset register at the time. Ladywood Health Centre was sold with a loss of £ 0. 05 m. Redwoods and Grounds & Gardens on the Rubery Hill site were recognised as assets held for sale. In Q 3, Soho House was sold with a net profit of £ 0. 05 m. In Q 4, Azardi was transferred to assets held for sale. As at 31 March 2013, Monyhull Hall Rd and Denis Shilston were transferred to assets held for sale. Denis Shilston is a vacant protected building, therefore will be unprotected as not required for the provision of mandatory services or commissioner requested services from 1 st April. 10