Finance Review

Principal Activity

LOCSU’s purpose and principal activity is to support Local Optical Committees (LOCs) across a spectrum of activities. This support is delivered through practical hands-on engagement via a network of leads, as well as through services provided to LOCs remotely by the national team.

The members of LOCSU (its “shareholders”) are the 3 optical sector bodies, being Association of Optometrists (“AOP”), FODO – The Association for Eye Care Providers and The Association of British Dispensing Opticians (“ABDO”).

LOCSU is funded almost entirely by levy payments from LOCs, and the audited figures in this review show how this funding has been used.

LOCSU is the sole shareholder (via an intermediate company) of 92 primary eyecare companies. The majority of these companies have now consolidated their operations within Primary Eyecare Services Limited, which is also owned by LOCSU. Primary eyecare companies act as contracting bodies which sit between commissioners and individual practices. The results of primary eyecare companies are not consolidated within these audited figures.

Financial Results

The audited results for the year ended 31 March 2022 are shown below. These are compared to the audited results for the prior year.

The result for the year ended 31 March 2022 is a surplus of £428,000 on a turnover of £1,497,000 (compared with a deficit of £204,000 on a turnover of £939,000 in the prior year). Company reserves at the end of 31 March 2022 are £1,373,000.

The increase in levy income from 2021 to 2022 is due to the levy holiday that LOCSU announced at the outset of the COVID-19 pandemic. The levy holiday was for a period of four months from April to July 2020, and 2022 therefore reflects a full 12-months of levy income as compared to 8 months in the prior year. Other income to LOCSU consists of reimbursement from NHSE for seconded members of staff working within PCSE and the National Eye Care Recovery and Transformation Programme. The overall increase in income for the year has resulted in the surplus presented.

Throughout the last three years LOCSU has been able to ensure that business continued as usual, adjusting delivery where required. As the impact of the pandemic eased, more regular in person activity could take place resulting in travel and meeting costs returning to the pre-pandemic level.   The NOC was deferred until the fall of 2022 to allow for an active, in person, networking event to take place as a direct response to LOC needs and to enable the agenda accommodated full understanding of the NHS reforms as the detail was not readily available in spring 2022. As such there are limited costs incurred in this financial period.

With the exit of CegedimRx from the optical market in 2020-21, development and licence fees for the provision of the Optomanager platform and National Data Repository are no longer incurred.

The above savings has contributed to the surplus in the year and this combined with a full year of income results in the surplus presented.

The strong reserve position that has been built in recent periods ensures that LOCSU has a financial stability to enable the continued delivery of support to LOCs even during difficult periods such as that faced during the height of the COVID-19 pandemic. This also allows for flexibility in responding to new requirements for support where needed.

LOCSU will undertake a strategic review and needs assessment in conjunction with LOCs and stakeholders to ensure reserves are appropriately invested directly into LOCs. Primary eye care and the NHS is in a state of transition; utilisation of reserves will ensure that all LOCs are fully supported to maximise opportunities for the benefit of professionals and practices across the country.

Summary Audited Statement of Financial Activities For The Year Ended 31 March 2022

Income

Expenditure

^* Reflects staff and director salaries/payments plus NI and pension, it also includes recruitment costs and staff (health) insurance. The consultants are external consultants and for this period includes Cream Design for their communications work, and independent contractors fulfilling the interim clinical director role. 

^** Contains fees to both Advisors and Optical Leads (contract rate plus expenses).

Balance Sheet as at 31 March 2022

These summarised financial statements are an extract from the statutory financial statements for the year ended 31 March 2022 which have been audited by Menzies LLP, who gave an unqualified audit report on 11 November 2022. The auditors have confirmed to the directors that these summarised accounts for the periods ended 2021 and 2022 are consistent with the statutory financial statements.