
Supporting a practice with financial turnaround
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We supported a social enterprise practice in Stoke-on Trent with vital financial guidance, enabling additional income to be secured
Background
A Community Interest Company (social enterprise) practice in Stoke-on-Trent was concerned that they may not be able to fulfil contractual obligations. There was a danger the company could go into liquidation within seven months.
Action
- Deep dive 2017/18 financials
- Long outstanding queries regarding estates resolved
- Zero based budgeting approach for 2018/19 agreed
- Set detailed budget for 2018/19
- Monitoring strengthened
- Finance committee established to free up the Board to focus on more strategic issues
- TORs established for new Finance Committee, lay input into Board provided
- Cycle of Business established
- Key themed discussions held at each meeting e.g. Pay, drugs, QIF, QOF
- ‘Heavy lifting’ taken through Finance Committee
- Greater focus on income
- Rigour: monthly reporting
- Variances reviewed
- Forward looking
- Introduced pay award for staff
- Finance policies systematically reviewed (‘CQC ready’)
- Practice marketed
Impact
- £220,000 of additional income secured
- Achieving surplus against budget
- Financial processes strengthened
- List size growing
Further information
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