Page 1

Sandwell & West Birmingham Hospitals NHS Trust - Annual Accounts 2013-14

Statement of Comprehensive Income for year ended31 March 2014

2013-14 2012-13NOTE 000s 000s

Gross employee benefits 9.1 (291,589) (284,797)Other operating costs 7 (142,873) (144,346)Revenue from patient care activities 4 396,256 391,875Other Operating revenue 5 42,766 41,132Operating surplus/(deficit) 4,560 3,864

Investment revenue 11 129 146Other gains and (losses) 12 (193) (139)Finance costs 13 (2,284) (2,158)Surplus/(deficit) for the financial year 2,212 1,713Public dividend capital dividends payable (4,717) (5,154) Transfers by absorption - gains 0 0 Transfers by absorption - (losses) 0 0Net Gain/(loss) on transfers by absorption 0 0Retained surplus/(deficit) for the year (2,505) (3,441)

Other Comprehensive Income 2013-14 2012-13000s 000s

Impairments and reversals taken to the Revaluation Reserve 7,429 (5,649)Net gain/(loss) on revaluation of property, plant & equipment 1,486 580Total Comprehensive Income for the year 6,410 (8,510)

Financial performance for the yearRetained surplus/(deficit) for the year (2,505) (3,441)Prior period adjustment to correct errors and other performance adjustments 0 0IFRIC 12 adjustment (including IFRIC 12 impairments) (1,108) 882Impairments (excluding IFRIC 12 impairments) 10,030 7,990Adjustments in respect of donated gov't grant asset reserve elimination 334 1,092Adjustment re Absorption accounting 0 0Adjusted retained surplus/(deficit) 6,751 6,523

The notes on pages 5 to 45 form part of this account.

The Trust's reported NHS financial performance position is derived from its Retained Surplus/(Deficit), but adjusted in the statementabove for the following:-

a) Net impairment of assets of 8,922,000 which is not considered part of the organisations operating position (2012/13 8,872,000).

b) The net impact of changes resulting from the elimination of donated asset and government grant reserves.

Page 3

Sandwell & West Birmingham Hospitals NHS Trust - Annual Accounts 2013-14

Statement of Changes in Taxpayers' EquityFor the year ended 31 March 2014

PublicDividendcapital

Retainedearnings

Revaluationreserve

Otherreserves

Totalreserves

000s 000s 000s 000s 000s

Balance at 1 April 2013 160,231 (20,260) 34,356 9,058 183,385Changes in taxpayers equity for 2013-14Retained surplus/(deficit) for the year (2,505) (2,505)Net gain / (loss) on revaluation of property, plant, equipment 1,486 1,486Net gain / (loss) on revaluation of intangible assets 0 0Net gain / (loss) on revaluation of financial assets 0 0Net gain / (loss) on revaluation of available for sale financial assets 0 0Impairments and reversals 7,429 7,429Other gains/(loss) (provide details below) 0 0Transfers between reserves 1,372 (1,372) 0 0Transfers under Modified Absorption Accounting - PCTs & SHAs 1,909 1,909Transfers under Modified Absorption Accounting - Other Bodies 0 0Reclassification AdjustmentsTransfers to/(from) Other Bodies within the Resource Account Boundary 0 0 0 0 0Transfers between Revaluation Reserve & Retained Earnings in respect ofassets transferred under absorption

0 0 0

On Disposal of Available for Sale financial Assets 0 0Reserves eliminated on dissolution 0 0 0 0 0Originating capital for Trust established in year 0 0New PDC Received - Cash 1,409 1,409New PDC Received/(Repaid) - PCTs and SHAs Legacy items paid for byDepartment of Health

0 0

PDC Repaid In Year 0 0PDC Written Off 0 0Transferred to NHS Foundation Trust 0 0 0 0 0Other Movements 0 0 0 0 0Net Actuarial Gain/(Loss) on Pension 0 0Other Pensions Remeasurement 0 0Net recognised revenue/(expense) for the year 1,409 776 7,543 0 9,728Transfers between reserves in respect of modified absorption - PCTs &SHAs

0 0 0 0

Transfers between reserves in respect of modified absorption - OtherBodies

0 0 0 0

Balance at 31 March 2014 161,640 (19,484) 41,899 9,058 193,113

Balance at 1 April 2012 160,231 (18,622) 41,228 9,058 191,895Changes in taxpayers equity for the year ended 31 March 2013Retained surplus/(deficit) for the year (3,441) (3,441)Net gain / (loss) on revaluation of property, plant, equipment 580 580Net gain / (loss) on revaluation of intangible assets 0 0Net gain / (loss) on revaluation of financial assets 0 0Net gain / (loss) on revaluation of assets held for sale 0 0Impairments and reversals (5,649) (5,649)Movements in other reserves 0 0Transfers between reserves 1,803 (1,803) 0 0Release of reserves to Statement of Comprehensive Income 0 0Reclassification AdjustmentsTransfers to/(from) Other Bodies within the Resource Account Boundary 0 0 0 0 0Transfers between Revaluation Reserve & Retained Earnings Reserve inrespect of assets transferred under absorption

0 0 0

On Disposal of Available for Sale financial Assets 0 0Reserves eliminated on dissolution 0 0 0 0 0Originating capital for Trust established in year 0 0New PDC Received 0 0PDC Repaid In Year 0 0PDC Written Off 0 0Transferred to NHS Foundation Trust 0 0 0 0 0Other Movements in PDC In Year 0 0Net Actuarial Gain/(Loss) on Pension 0 0Net recognised revenue/(expense) for the year 0 (1,638) (6,872) 0 (8,510)Balance at 31 March 2013 160,231 (20,260) 34,356 9,058 183,385

Page 4

Sandwell & West Birmingham Hospitals NHS Trust - Annual Accounts 2013-14

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED31 March 2014

2013-14 2012-13000s 000s

Cash Flows from Operating ActivitiesOperating Surplus/(Deficit) 4,560 3,864Depreciation and Amortisation 13,673 14,220Impairments and Reversals 8,922 8,872Other Gains/(Losses) on foreign exchange 0 0Donated Assets received credited to revenue but non-cash (213) 0Government Granted Assets received credited to revenue but non-cash 0 0Interest Paid (2,218) (2,072)Dividend (Paid)/Refunded (4,327) (5,594)Release of PFI/deferred credit 0 0(Increase)/Decrease in Inventories 332 326(Increase)/Decrease in Trade and Other Receivables (6,965) 4,263(Increase)/Decrease in Other Current Assets 0 0Increase/(Decrease) in Trade and Other Payables 13,395 7,545(Increase)/Decrease in Other Current Liabilities 0 0Provisions Utilised (5,643) (9,682)Increase/(Decrease) in Provisions 2,529 5,035Net Cash Inflow/(Outflow) from Operating Activities 24,045 26,777

CASH FLOWS FROM INVESTING ACTIVITIESInterest Received 131 140(Payments) for Property, Plant and Equipment (22,985) (15,698)(Payments) for Intangible Assets (210) (210)(Payments) for Investments with DH 0 0(Payments) for Other Financial Assets 0 0(Payments) for Financial Assets (LIFT) 0 0Proceeds of disposal of assets held for sale (PPE) 0 9Proceeds of disposal of assets held for sale (Intangible) 0 0Proceeds from Disposal of Investment with DH 0 0Proceeds from Disposal of Other Financial Assets 0 0Proceeds from the disposal of Financial Assets (LIFT) 0 0Loans Made in Respect of LIFT 0 0Loans Repaid in Respect of LIFT 0 0Rental Revenue 0 0Net Cash Inflow/(Outflow) from Investing Activities (23,064) (15,759)

NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING 981 11,018

CASH FLOWS FROM FINANCING ACTIVITIESPublic Dividend Capital Received 1,409 0Public Dividend Capital Repaid 0 0Loans received from DH - New Capital Investment Loans 0 0Loans received from DH - New Revenue Support Loans 0 0Other Loans Received 0 0Loans repaid to DH - Capital Investment Loans Repayment of Principal (2,000) (2,000)Loans repaid to DH - Revenue Support Loans 0 0Other Loans Repaid 0 0Cash transferred to NHS Foundation Trusts 0 0Capital Element of Payments in Respect of Finance Leases and On-SoFP PFI and LIFT (1,081) (984)Capital grants and other capital receipts (excluding donated / government granted cash receipts) 0 0Net Cash Inflow/(Outflow) from Financing Activities (1,672) (2,984)

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (691) 8,034

Cash and Cash Equivalents (and Bank Overdraft) at Beginning of the Period 42,499 34,465Effect of Exchange Rate Changes in the Balance of Cash Held in Foreign Currencies 0 0Cash and Cash Equivalents (and Bank Overdraft) at year end 41,808 42,499

Page 5

Sandwell & West Birmingham Hospitals NHS Trust - Annual Accounts 2013-14

NOTES TO THE ACCOUNTS

1. Accounting PoliciesThe Secretary of State for Health has directed that the financial statements of NHS trusts shall meet theaccounting requirements of the NHS Trusts Manual for Accounts, which shall be agreed with HMTreasury. Consequently, the following financial statements have been prepared in accordance with the2012-13 NHS Manual for Accounts issued by the Department of Health. The accounting policiescontained in that manual follow International Financial Reporting Standards to the extent that they aremeaningful and appropriate to the NHS, as determined by HM Treasury, which is advised by theFinancial Reporting Advisory Board. Where the NHS Trusts Manual for Accounts permits a choice ofaccounting policy, the accounting policy which is judged to be most appropriate to the particularcircumstances of the trust for the purpose of giving a true and fair view has been selected. Theparticular policies adopted by the trust are described below. They have been applied consistently indealing with items considered material in relation to the accounts.

1.1 Accounting conventionThese accounts have been prepared under the historical cost convention modified to account for therevaluation of property, plant and equipment, intangible assets, inventories and certain financial assetsand financial liabilities.

1.2 Acquisitions and discontinued operationsActivities are considered to be acquired only if they are taken on from outside the public sector.Activities are considered to be discontinued only if they cease entirely. They are not considered to bediscontinued if