Corporate
10. Research, Development and Innovation finances
10.1 RD&I Finance
10.1.1 Background/Context
The RD&I Division manages all income and expenditure relating to the R&D Office, Research Delivery Teams (Nurses, Data Managers & Trial Coordinators), Early Phase Team, and Innovation Team. In addition to other individually funded projects and trial budgets, this comprises the majority of Trust Research and Innovation activity and is the subject of this finance report. Outside of this report are other support staff (e.g., pharmacy/radiotherapy) managed outside of the RD&I Division who are reported as part of the relevant divisional reports.
The RD&I Division Financial Plan for 2023/24 has been set at similar levels to previous years. In summary as follows:
The overall R,D&I Financial Plan comprises targets to:
- Spend £3.1m on research activities, of which the majority (92%/£2.9m) are staff pay costs with the remaining £263K of non-pay including Clinical Supplies/Services, Education & Development, Travel and office equipment and consumables.
- Secure Income of £3.2m from various sources,
- Health & Care Research Wales (34%)
- Clinical Trial Income - Commercial & Non-Commercial (28%)
- Support from Velindre Charity Integrated Bid & other individual business cases (27%)
- Wales Cancer Research Centre (WCRC) & Experimental Cancer Medicine Centre (ECMC) (5%)
- Grant income & Velindre Lead sponsor income (6%)
10.2 Summary of performance against key financial targets: Quarter 4
Key Financial Target 1: to remain within monthly budget expectations.
|
PERIOD |
£000 |
|
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|
PAY |
NON-PAY |
INCOME |
TOTAL |
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|
QUARTER 4 |
Budget |
£2,443 |
£592 |
-£2,858 |
£177 |
|||||
|
Actual |
£2,283 |
£805 |
-£3,026 |
£61 |
||||||
|
Variance |
£160 |
-£212 |
-£168 |
-£116 |
Quarter four variances |
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|
YEAR TO DATE |
Budget |
£3,217 |
£654 |
-£3,756 |
£114 |
|
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|
Actual |
£3,037 |
£888 |
-£3,925 |
-£0 |
|
|
||||
|
Variance |
£180 |
-£234 |
£168 |
£114 |
Year-To-Date Variance |
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|
|
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Performance for the full year shows a favourable variance to budget of £114k this is mainly due to additional pay budget from Welsh Government.
Key Financial Target 2: to pay at least 95% of invoices within 30 days
|
% Compliance |
Current Month* |
Year to Date |
Forecast Outturn |
|
84% |
90% |
>95% |
Performance year to date has fallen below the required target, processes are currently being reviewed, to improve the position of the remaining half of the year to achieve the forecast outturn. Additionally, a Trust Task & Finish Group has been established to support Trust performance, RD&I will have representation to cascade measures and lessons resulting from the Group.
10.3 Analysis of performance
Performance for the full year shows a favourable variance of £114k this is due to additional funding received for pay awards:
- Pay costs have been slightly lower for the period than budgeted, due to the level of vacancies, however.
- Higher than expected non-pay costs for the period are related to the continued replacement of small equipment, higher patient reimbursement which is represented in the increase in commercial trial income and legal fees regarding FAKTION.
Pay analysis by group:
|
Cumulative to date |
|||
|
£180K below budget |
|||
|
|
YTD |
YTD |
YTD |
|
PAY GROUP |
Budget (£’000) |
Actual (£’000) |
Variance (£’000) |
|
Administrative & Clerical |
1,362 |
1,266 |
96 |
|
Medical |
551 |
520 |
31 |
|
Nursing |
1.185 |
1,102 |
83 |
|
Additional Clinical Services |
52 |
52 |
0 |
|
Healthcare Scientists |
92 |
97 |
-4 |
|
Vacancy Factor |
-26 |
0 |
-26 |
Non pay analysis by category:
|
Cumulative to date |
|||
|
£234K above budget |
|||
|
Overall non-pay budget |
654 |
888 |
234 |
|
Clinical/General Services/Supplies |
654 |
728 |
-174 |
|
Maintenance & Repairs |
0 |
17 |
-17 |
|
Transport (Patient) |
0 |
20 |
-20 |
|
Printing / Stationary / Postage |
0 |
2 |
-2 |
|
Travel & Subsistence |
0 |
12 |
-14 |
|
Education & Development (inc Innovation) |
0 |
33 |
-33 |
|
Legal Fees |
0 |
37 |
-37 |
|
Equipment & Consumables |
0 |
26 |
-26 |
|
Computer Maintenance & Supplies |
0 |
13 |
-13 |
- Non pay for the period has exceeded budget as a result of Legal fees in relation to FAKTION money in addition to increased costs associated with the increased Clinical trial income.
Income Analysis by category:
|
Full Year |
|||
|
£168k above budget |
|||
|
Clinical Trial Income |
-898 |
-903 |
6 |
|
Charity Income |
-1,030 |
-1,144 |
114 |
|
Welsh Gov |
-1,112 |
-1,323 |
211 |
|
WCRC & ECMC |
-180 |
-127 |
-52 |
|
Grant/Lead sponsor income |
-537 |
-427 |
-110 |
- Full year Income is up from Annual budget this is due to an increase in Charity funding and increase of Welsh Gov income in relation to support and delivery funding compared to initial agreed figure.
10.4 Key consideration for future periods
The Trust’s Integrated Medium-Term Planning (IMTP) and supporting financial plan and associated budgeting will be concluded in the coming months. It is important to note that the financial challenge for the Trust and NHS Wales is likely to cascade to all Divisions. Therefore, the Group is asked to consider opportunities to support income generation and cost reductions. Additionally, any cost pressures and changes to funding sources will require articulation to ensure factored into financial plan.