OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM Actual To Budget Variance Report Five Months Ending May 31, 2007

Transcription

1 OHIO PUBLIC EMPLOYEES RETIREMENT SYSTEM Actual To Budget Variance Report Five Months Ending May 31, 2007 PROFESSIONAL SERVICES MTD Expended: $1,097,590; Budgeted: $1,304,689; Variance: Under Budget $207,099 or 15.9% YTD Expended: $4,972,225; Budgeted: $5,728,561; Variance: Under Budget $756,336 or 13.2% Audit Services MTD Expended: $0; Budgeted: $60,000; Variance: Under Budget $60,000 or 100.0% YTD Expended: $153,028; Budgeted: $234,500; Variance: Under Budget $81,472 or 34.7% This line item provides funding for activities related to the audit of the OPERS year-end financial statements, and third party reviews of investment-related activities. The favorable variances in this line item are primarily due to the following: 1) Funds totaling $40,000 were budgeted in May for the annual audit of the 2006 financial statements. The annual audit of OPERS financial statements was completed in May, and an invoice for $33,000 was paid in June. The invoices have been delayed for over two months at the Auditor of State s office. This invoice represents the second of three installment payments. Processing of the third and final payment is expected to occur in July. A total of $118,000 was budgeted for these services, contributing $60,000 to the year to date favorable variance. 2) The May budget also includes $20,000 for audit services related to the investment incentive compensation program and third party reviews. The cost for these services was less than planned, contributing $20,000 to the month and year to date services. This is a permanent savings that will be addressed during the mid-year budget review process. Actuarial Services MTD Expended: $12,377; Budgeted: $30,540; Variance: Under Budget $18,163 or 59.5% YTD Expended: $170,885; Budgeted: $203,150; Variance: Under Budget $32,265 or 15.9% This line item provides funding for actuarial services related to the annual pension and health care valuations, as well as for special projects throughout the year. The month and year-to-date variances are primarily the result of the following activities: 1) The May budget included $18,540 for costs related to health care rate setting. The year-todate budget through May for this project is $48,410, for which there have been no actual expenditures against this budget. While preliminary work has been started on this activity, the bulk of the work will be completed in June with the billing likely to occur in July. This constitutes the $18,163 favorable variance for the month and the year-to-date variance of $48,410 is offset by $16,145 of other unfavorable variances discussed below. 2) While the timing of the item discussed above causes the line item to display a favorable variance, this expenditure is expected to exceed budget at year-end. The 2007 budget included $40,000 of funds for special projects of which $54,000 has been expended to date. These expenditures include: $19,700 to develop option factor tables, $15,000 for development of the GASB ARC calculator to facilitate the HCPP 2.0 analysis, $14,400 for work to facilitate the health care asset liability study and $5,900 to prepare additional gain/loss information for inclusion in the CAFR. Based on the additional projects currently contemplated for the remainder of the year (disability, final HCPP 2.0 billings, mitigating rate analysis and purchased service analysis) it is anticipated that this line item will be over 1

2 budget at the end of the year. This budget is likely to be re-evaluated during the mid-year budget review process. Consulting Services MTD Expended: $90,584; Budgeted: $116,913; Variance: Under Budget $26,329 or 22.5% YTD Expended: $269,514; Budgeted: $374,702; Variance: Under Budget $105,188 or 28.1% The Consulting Services line includes expenses for Health Care consultants and other consulting services used throughout the organization. The month and year to date variances are the net result of the following activities: 1) Health Care budgeted $6,250 for the month and $12,500 year to date for plan selection analysis services in support of the rate setting process. Expenses related to this activity are expected to occur in the third quarter. In addition, the monthly invoice for risk performance management services is pending, adding $5,979 to the month and year-to-date variances. 2) The May budget also includes $10,000 for vendor analysis and reporting services for the health care scorecard and ad hoc reporting. These services have been delayed until the third quarter, adding to the month and year to date favorable variances. Health Care also budgeted $5,000 for the month and $15,000 year-to-date for activities related to strategic planning of the health care cornerstone goals. Completion of these services is expected to occur early in the third quarter. 3) Health Care budgeted $5,000 for the month and $34,000 year-to-date for the prescription drug coalition and development of a request for proposal. Pending invoices totaling $28,045 were paid in May, creating unfavorable variances of $23,045 for the month and $7,420 yearto-date. 4) Benefits budgeted $35,000 for the annual Cost Effectiveness Measurement analysis and report. A draft of the report has been received, and payment for these services is expected to occur in June. 5) Invoices totaling $25,555 for design and layout services for the 2006 Comprehensive Annual Financial Report were paid in May but budgeted in prior months, creating an unfavorable variance for the month. Year-to-date, these services are $3,250 over budget. 6) Government Relations budgeted $12,500 in May for engagement of a public relations firm. Procurement of these services is being deferred until the 4 th quarter. The remaining year-to-date variance is related to a variety of activities planned throughout the organization related to the preparation of Board election materials, and member and employer communication materials. These variances will be addressed during the mid-year budget review process. Legal & Investigation Services MTD Expended: $25,759; Budgeted: $125,005; Variance: Under Budget $99,246 or 79.4% YTD Expended: $93,680; Budgeted: $463,404; Variance: Under Budget $369,724 or 79.8% Expenditures in this line item include services to validate the status of disability and survivor benefit recipients, and legal services in support of Real Estate, Private Equity, and General Counsel activities. The favorable variances in this line item are comprised of the following: 1) The Investment division budget includes favorable variances of $86,356 for the month and $246,437 year-to-date for legal expenses related to agreements for new commitments and amendments. Charges for these services will vary with changes in investment options necessary to keep pace with market conditions and OPERS investment objectives. Currently approximately $40,000 and $34,600 in legal bills are pending for private equity and real estate commitment closings and amendments, respectively. 2) General Counsel s budget includes favorable variances of $9,025 for the month and $106,880 year to date for legal fees related to reimbursement of Attorney General (AG) expenses, tax services, administrative hears, and general litigation / corporate services. Historically AG invoices are received as much as 3 months after services are rendered. Since OPERS accrued invoices related to the last quarter of 2006 in 2006, OPERS will have a favorable variance in this category related to the 3-month delay. 2

3 3) The remaining month and year-to-date variances represent funds budgeted by Human Resources for legal services related to employment and immigration laws ($2,500 MTD and $11,225 YTD), and funds budgeted by Administrative Services for legal services related to the establishment and review of lease agreements for occupancy of the Annex ($5,000 YTD) Retirement Study Council MTD Expended: $1,097; Budgeted: $0; Variance: Over Budget ($1,097) or 100.0% YTD Expended: $121,650; Budgeted: $120,600; Variance: Over Budget ($1,050) or 0.9% The operating costs of the Ohio Retirement Study Council (ORSC) are funded by quarterly assessments to each of the five state retirement systems. OPERS share if these expenses were budgeted at $60,300 a quarter. The month and year to date unfavorable variances reflect an increased allocation of $1,097 for the ORSC fiscal year ended June 30, CUSTODIAL & BANKING FEES MTD Expended: $356,498; Budgeted: $368,934; Variance: Under Budget $12,436 or 3.4% YTD Expended: $2,451,076; Budgeted: $1,844,370; Variance: Over Budget ($606,706) or 32.9% Custodial & Banking Fees MTD Expended: $356,498; Budgeted: $368,934; Variance: Under Budget $12,436 or 3.4% YTD Expended: $2,451,076; Budgeted: $1,844,370; Variance: Over Budget ($606,706) or 32.9% This line item includes fees paid to the custodial bank for domestic and international investment transactions processed through the bank. The variance in this line is primarily related to custody fees for international assets. Because of rising market conditions during the 4 th quarter of 2006, actual custody fees for these assets exceeded the year-end accrual by $160,185. In addition, the corresponding increase in the investment portfolio has resulted in higher than expected custody fees in Year to date, these fees are $456,370 over budget. These variances will be addressed during the mid year budget review process. INFORMATION TECHNOLOGY MTD Expended: $124,525; Budgeted: $266,293; Variance: Under Budget $141,768 or 53.2% YTD Expended: $1,826,776; Budgeted: $1,857,746; Variance: Under Budget $30,970 or 1.7% Data Processing Contract Expense MTD Expended: $69,818; Budgeted: $123,593; Variance: Under Budget $53,775 or 43.5% YTD Expended: $299,491; Budgeted: $374,973; Variance: Under Budget $75,482 or 20.1% Data processing contract expenses include expenditures for information technology consultants, disaster recovery services, off premises secured storage, and data processing rentals and leases. The favorable variances are primarily due to the following activities: 1) IT PIR (problem investigation report) support is under budget by $26,015 for the month and $34,740 year to date. The budget anticipated the need for three COBOL and one Net developer to assist with the backlog of issues identified in the Savings, Pension, and Investment systems. However, it has not yet been necessary to contract for support of the Pension and Investment systems. 3

4 2) An additional $30,000 was budgeted in May for the UIDP (Universal Identify Platform) upgrade. This project is being postponed until the 4 th quarter, contributing to the month and year to date variances. 3) The data processing budget also includes $16,638 per month for external data connectivity services. Delays in receipt of invoices for these ATT services contributed $8,800 to the year to date favorable variance. Information System License and Maintenance Agreements MTD Expended: $39,077; Budgeted: $108,713; Variance: Under Budget $69,636 or 64.1% YTD Expended: $1,354,374; Budgeted: $1,339,495; Variance: Over Budget ($14,879) or 1.1% This line item provides funding for the license and maintenance agreements for commercially owned software systems used by OPERS. The majority of the variances result from the following activities: 1) Approximately half of the May favorable variance can be attributed to licenses for investment research fees. These license fees were budgeted monthly, but have been billed on a quarterly basis, creating a favorable May variance of $30,670 and a year to date variance of $3,815. 2) The Benefits Division budget includes $16,500 for additional call center monitoring licenses. The licenses have been received, however payment is pending. Information Technology also budgeted $10,720 in May for additional IBM licenses not yet acquired. 3) These favorable month-to-date variances are offset in the year-to-date variance by the net impact of software acquisitions reported in prior months. Information System Purchases MTD Expended: $15,630; Budgeted: $33,987; Variance: Under Budget $18,357 or 54.0% YTD Expended: $172,911; Budgeted: $143,278; Variance: Over Budget ($29,633) or 20.7% The Information Systems Purchases line is comprised of computer hardware and software with a cost less than the capitalization threshold. The variances in this line are the net result of the following activities: 1) Network Support budgeted $30,000 in May for Microsoft Licenses that have been deferred to the 4 th quarter. This favorable May variance is offset by minor unfavorable variances for IT purchases throughout the organization. 2) The unfavorable year to date variance is primarily related to the net effect of several Network Support purchases. The unexpected purchase of blade sleeves for the infrastructure and upgrades project totaled $96,630, offset by $18,000 budgeted in April for disaster recovery equipment purchases that have been deferred to the third quarter. An additional $10,568 was budgeted for the new offices being constructed in conjunction with the restructuring of the department, however this purchase is not expected to occur until July. 3) The Applications Department budget included $3,000 in May and $17,580 year to date for the acquisition of computer workstations for new staff. The majority of these purchases are pending. COMMUNICATIONS MTD Expended: $156,349; Budgeted: $127,328; Variance: Over Budget ($29,021) or 22.8% YTD Expended: $896,181; Budgeted: $1,213,582; Variance: Under Budget $317,401 or 26.2% Postage MTD Expended: $104,984; Budgeted: $103,778; Variance: Over Budget ($1,206) or 1.2% YTD Expended: $767,446; Budgeted: $908,472; Variance: Under Budget $141,026 or 15.5% 4

5 Activities in this line item include mailing costs for employer, member and retiree communication materials, annual statements, and monthly mail meter postage. The most significant items contributing to the year to date variance include the following: 1) Mailing expenses for the Annual Personal Statement of Estimated Benefits are under budget by $64,190 year-to-date. Significant savings were achieved through the use of a presort agreement, reducing the postage cost per piece. 2) The Defined Contribution budget includes $16,458 for the month and $33,292 year to date for the mailing of plan selection kits to new members. Invoices for these expenses were anticipated to be paid in April and May, however no costs have been incurred to date. 3) Mailing expenses for items such as first check pocket folders, employment and earning letters, process forms requests, presort services and general office mail are under budget by $18,330 for the month and $42,690 year to date. 4) The favorable May variance noted above was offset in part by mailing costs for the quarterly retiree newsletter. Distribution of this newsletter was originally planned for April, but was delayed to permit inclusion of an article regarding the implications of House Bill 151. Printing & Publishing MTD Expended: $51,365; Budgeted: $23,550; Variance: Over Budget ($27,815) or 118.1% YTD Expended: $128,735; Budgeted: $305,110; Variance: Under Budget $176,375 or 57.8% Activities in this line item include the printing and publication of employer, member and retiree communication materials. The month and year-to-date variances are primarily due to the timing of invoice receipts for printing services for the following activities: 1) Printing costs for production of the Annual Personal Statement of Benefits were budgeted at $155,000 in April. Only one invoice has been received in May at a cost of $5,313, for the production of 216,840 annual statement postcards. 2) Printing costs for production of the spring member newsletter were budgeted for payment in April at a cost of $51,750. The invoice for these services was paid in May resulting in an unfavorable variance of $43,500 for the month, and a favorable variance of $8,250 year to date. 3) Printing costs for the Retiree Newsletter were budgeted at $22,500 in May, however the invoice has not yet been received. OFFICE SUPPLIES AND EQUIPMENT MTD Expended: $44,788 Budgeted: $30,103; Variance: Over Budget ($14,685) or 48.8% YTD Expended: $315,510 Budgeted: $356,319; Variance: Under Budget $40,809 or 11.5% Office Supplies & Equipment MTD Expended: $43,495; Budgeted: $28,017; Variance: Over Budget ($15,478) or 55.2% YTD Expended: $304,268; Budgeted: $345,889; Variance: Under Budget $41,621 or 12.0% Expenses budgeted in this line item include paper and envelopes, copier and fax materials, print shop supplies, and office equipment valued at less than the capitalization threshold. The variances in this line are primarily the net result of the following activities: 1) Funds totaling $167,650 were budgeted in March for office cubicles and furniture for relocation of the IT consultants from the plaza facility to the annex. Invoices for furniture, fixtures, and equipment totaling $145,355 were paid through May for this relocation, resulting in an unfavorable variance of $7,297 for the month, and a $22,296 favorable variance year to date. 5

6 2) Records budgeted $9,000 in previous months for labels and toners to support the Infolinx project. To date this purchase has not been made, contributing to the favorable year-to-date variance. Funds totaling $6,900 were also budgeted in April for server racks and security cages in support of disaster recovery and business continuity planning. These purchases are also pending. 3) The remaining variances are comprised of minor variances in department purchases through the organization. Office Equipment & Facility Rentals MTD Expended: $1,293; Budgeted: $2,086; Variance: Under Budget $793 or 38.0% YTD Expended: $11,242; Budgeted: $10,430; Variance: Over Budget ($812) or 7.8% Offsite record storage, storage and facility rentals, and uniform/clothing rentals are budgeted in this line item. The May favorable variance is due primarily to the timing of invoice payments for offsite records storage and the purchase of work shirts for the Office Services staff. The year-todate variance is primarily related to the annual postage meter rental ($1,320) that was paid during the first quarter. This renewal is typically paid in December. TRAINING AND TRAVEL EXPENSES MTD Expended: $163,769; Budgeted: $163,153; Variance: Over Budget ($616) or 0.4% YTD Expended: $617,185; Budgeted: $748,404; Variance: Under Budget $131,219 or 17.5% Travel Expense MTD Expended: $44,601; Budgeted: $39,023; Variance: Over Budget ($5,578) or 14.3% YTD Expended: $143,686; Budgeted: $178,202; Variance: Under Budget $34,516 or 19.4% The favorable variances in this line are the cumulative effect of minor variances throughout the organization. The most significant variances arise in the Investments area, which comprise ($2,900) of the month, and $17,913 of the year-to-date variances. Travel and training in this area fluctuates monthly due to the uncertainty of investigational needs related to investment opportunities. The remaining month and year-to-date variances reflect variances in departments throughout OPERS, much of which is related to timing differences between training dates and expense report payment date. Employee Training Fees MTD Expended: $46,715; Budgeted: $83,097; Variance: Under Budget $36,382 or 43.8% YTD Expended: $232,251; Budgeted: $283,013; Variance: Under Budget $50,762 or 17.9% Employee training fees include off-site conference registration fees, web based seminars, employee tuition reimbursements, and in-house training provided by Human Resources. The most significant activities contributing to these variances relate to the following activities: 1) Expenditures for employee tuition reimbursements were $39,916 under budget for the month and $3,266 under budget year-to-date. Human Resources budgeted for a total of 72 participants, and there are currently 61 employees enrolled in the program. 2) Human Resources also provides a number of in-house training activities such as the Leadership Institute, managerial assessment and service essentials, and professional skills and technical training for staff. Invoice timing and training delays in these areas resulted in an unfavorable May variance of $7,717, and a favorable variance year to date of $23,650. Employee training activities are expected to increase over the next few months. Dues & Subscriptions 6

7 MTD Expended: $34,292; Budgeted: $8,297; Variance: Over Budget ($25,995) or 313.3% YTD Expended: $108,547; Budgeted: $123,841; Variance: Under Budget $15,294 or 12.3% Dues and subscriptions include fees for professional organizations, associations, and subscriptions to publications. The most significant activities contributing to the year-to-date variance are related to the following: 1) General Counsel budgeted $25,000 in March for the Investor Responsibility Support subscription to monitor securities litigation. This subscription is typically renewed in late February but was paid in May, resulting in an unfavorable variance for the month. 2) Human Resources budgeted $7,700 for Watson Wyatt salary survey and market pricing analysis. An invoice was paid in May for the salary survey totaling $3,000, contributing $4,700 to the year to date variance. The remaining year-to-date variance represents minor variances in departments throughout OPERS. Member & Employer Training MTD Expended: $38,161; Budgeted: $32,736; Variance: Over Budget $5,425 or 16.6% YTD Expended: $132,701; Budgeted: $163,348; Variance: Under Budget $30,647 or 18.8% Member and Employer training expenses are comprised of costs incurred for retirement awareness seminars, remote interviews, and employer outreach activities. The May variance is comprised primarily of invoices paid for Group Education seminar supplies that were budgeted in prior months. The majority of the year-to-date variance relates to retiree seminars. Expenses for these seminars were on target for the month but $10,285 under budget for the year. Retirement readiness seminars and remote interview expenses contributed an additional $21,075 to the favorable year to date variance. Six seminars have been cancelled to date, and attendance at some of the seminars has been less than anticipated. OTHER MISCELLANEOUS MTD Expended: $7,160; Budgeted: $6,417; Variance: Over Budget ($743) or 11.6% YTD Expended: $36,055; Budgeted: $32,433; Variance: Over Budget ($3,622) or 11.2% Child Care & Other Miscellaneous Expenses MTD Expended: $7,160; Budgeted: $6,417; Variance: Over Budget ($743) or 11.6% YTD Expended: $36,055; Budgeted: $32,433; Variance: Over Budget ($3,622) or 11.2% OPERS subsidizes the Child Care Center for actual expenses in excess of the contract agreement. The amount of the subsidy varies depending on the number of children enrolled. In addition, OPERS pays AVI directly for daycare lunches. These invoices average approximately $1,300 a week. The year-to-date unfavorable variance reflects the payment of December 2006 invoices that were not received until January CENTRALIZED EXPENSE MTD Expended: $371,905; Budgeted: $387,473; Variance: Under Budget $15,568 or 4.0% YTD Expended: $1,729,022; Budgeted: $1,949,596 Variance: Under Budget $220,574 or 11.3% Building Contract Services & Supplies 7

8 MTD Expended: $76,432; Budgeted: $91,263; Variance: Under Budget $14,831 or 16.3% YTD Expended: $432,028; Budgeted: $481,740; Variance: Under Budget $49,712 or 10.3% This line item includes funds budgeted for security, janitorial, window cleaning and trash removal services. The majority of these variances relate to janitorial and security services. 1) Janitorial Services represent the largest component of the month and year to date favorable variances, contributing $7,420 and $39,943 respectively. These services were budgeted at $37,417 per month, however actual expenses have been averaging $29,190 a month. Janitorial supplies contributed an additional $3,580 and $3,270 to the month and year to date variances. 2) Security services are $3,560 under budget for the month. Year to date savings experienced in this line item were offset in part by the March payment of an invoice for September 2006 services that was not previously submitted for payment by the vendor. The net year to date favorable variance related to these services is $7,690. Building Maintenance & Repair MTD Expended: $46,312; Budgeted: $48,930 Variance: Under Budget $2,618 or 5.4% YTD Expended: $193,780; Budgeted: $246,150 Variance: Under Budget $52,370 or 21.3% Expenses budgeted in this line item are comprised of building maintenance contracts, and materials and supplies such as electrical, plumbing, HVAC, paint and minor tools needed to maintain the facility. Repair costs will vary month-by-month based on need, as will the timing of the purchase of repair parts kept on hand. The year-to-date variance is comprised primarily of funds budgeted for maintenance and repair contracts that have not yet been needed. Funds totaling $35,224 a month are budgeted for these contracts, however year to date contract expenses are $30,460 under budget. Maintenance supplies comprise the balance of the variance in this line item, representing $21,910 of the year to date variance. Building Utilities MTD Expended: $151,918; Budgeted: $161,767; Variance: Under Budget $9,849 or 6.1% YTD Expended: $678,337; Budgeted: $760,641; Variance: Under Budget $82,304 or 10.8% Building utilities include the electricity, heat, telephone, water and sewer charges for both the tower facility and the annex. The most significant items contributing to these favorable variances include the following activities: 1) Electric bills for the Tower and Annex are generally received for payment a month in arrears of the actual service. As a result, the May disbursements reflect the cost of April invoices, and the year to date expenses are understated by one month s service. Invoices for the month of May totaling $72,082 were paid in June, and reflect the rising energy costs of building air conditioning as we enter the summer months. Year to date, these services are only $51,375 under budget, reflecting the heating distribution costs of colder than expected temperatures during the first quarter. 2) Telephone expenses represent $21,835 of the year to date variance. Invoices for these services are often received near the end of the month, and as a result are frequently paid in the following month. The year-to-date variance reflects this timing issue. The most significant invoices related to this variance include the long distance and toll-free services provided by QWEST ($9,355), and Nextel cellular phone services ($5,750). Invoices for these May services were paid in June. Various Ameritech invoices for May services paid in June comprise the balance of this variance. 3) Invoices for Water and Sewer services experience a similar timing delay. Invoices for May services paid in June total $5,643. Year to date, the cost of these services is under budget by $6,009. Motor Vehicle Expense MTD Expended: $1,837; Budgeted: $2,400; Variance: Under Budget $563 or 23.5% 8

9 YTD Expended: $5,111; Budgeted: $10,600; Variance: Under Budget $5,489 or 51.8% Motor Vehicle Expenses include costs associated with maintenance of the OPERS fleet, gasoline purchases, and vehicle rentals. These expenses fluctuate with the number of miles the vehicles are driven. Gas and other fuels comprise the majority of the year to date variance ($4,082), primarily due to the reduced number of member and employer outreach activities noted under Training and Travel. 9

10 PERS of Ohio TOTAL OPERS ORGANIZATION Month Ending May 2007 Monthly Year to Date 10.0% 10.0% Actual Budget Variance Variance Actual Budget Variance Variance PERSONNEL EXPENSE Wages and Salaries $ 4,203,339 $ 4,375,742 $ 172, % $ 16,188,866 $ 17,043,786 $ 854, % Retirement - Employer Contributions 627, ,967 34, % 2,419,893 2,541, , % Employee Insurance 388, ,064 6, % 2,047,332 2,010,819 (36,513) (1.8%) Other Personnel Expense 30,812 23,736 (7,076) (29.8%) 187, ,060 (19,264) (11.5%) Total Personnel Expenses 5,249,571 5,456, , % 20,843,415 21,764, , % PROFESSIONAL SERVICES Audit Services 0 60,000 60, % 153, ,500 81, % Actuarial Services 12,377 30,540 18, % 170, ,150 32, % Consulting Services 90, ,913 26, % 269, , , % Investment & Financial Services 787, ,856 (1,267) (0.2%) 3,305,814 3,384,730 78, % Legal & Investigation Services 25, ,005 99, % 93, , , % Medical Examinations 180, ,375 5, % 857, ,475 89, % Retirement Study Council 1,097 0 (1,097) 100.0% 121, ,600 (1,050) (0.9%) Total Professional Services 1,097,590 1,304, , % 4,972,225 5,728, , % CUSTODIAL & BANKING FEES Custodial & Banking Fees 356, ,934 12, % 2,451,076 1,844,370 (606,706) (32.9%) Total Custodial & Banking Fees 356, ,934 12, % 2,451,076 1,844,370 (606,706) (32.9%) INFORMATION TECHNOLOGY Data Processing Contract Expense 69, ,593 53, % 299, ,973 75, % IT System License & Maint. Agreements 39, ,713 69, % 1,354,374 1,339,495 (14,879) (1.1%) Information System Purchases 15,630 33,987 18, % 172, ,278 (29,633) (20.7%) Total Information Technology 124, , , % 1,826,776 1,857,746 30, % COMMUNICATIONS Postage 104, ,778 (1,206) (1.2%) 767, , , % Printing & Publishing 51,365 23,550 (27,815) (118.1%) 128, , , % Total Communications 156, ,328 (29,021) (22.8%) 896,181 1,213, , % OFFICE SUPPLIES & EQUIPMENT Office Supplies & Equipment 43,495 28,017 (15,478) (55.2%) 304, ,889 41, % Office Equipment & Facility Rentals 1,293 2, % 11,242 10,430 (812) (7.8%) Total Office Supplies & Equipment 44,788 30,103 (14,685) (48.8%) 315, ,319 40, % TRAINING & TRAVEL EXPENSES Travel Expense 44,601 39,023 (5,578) (14.3%) 143, ,202 34, % Employee Training Fees 46,715 83,097 36, % 232, ,013 50, % Dues and Subscriptions 34,292 8,297 (25,995) (313.3%) 108, ,841 15, % Member and Employer Training 38,161 32,736 (5,425) (16.6%) 132, ,348 30, % Total Training & Travel Expenses 163, ,153 (616) (0.4%) 617, , , % OTHER MISCELLANEOUS Child Care & Other Misc. Expenses 7,160 6,417 (743) (11.6%) 36,055 32,433 (3,622) (11.2%) Total Other Miscellaneous 7,160 6,417 (743) (11.6%) 36,055 32,433 (3,622) (11.2%) CENTRALIZED EXPENSES Building Contract Services & Supplies 76,432 91,263 14, % 432, ,740 49, % Building Maintenance & Repair 46,312 48,930 2, % 193, ,150 52, % Office Equipment Maintenance & Repair 42,000 29,670 (12,330) (41.6%) 150, ,600 15, % Building Utilities 151, ,767 9, % 678, ,641 82, % Insurance 53,406 53, % 268, ,865 14, % Motor Vehicle Expense 1,837 2, % 5,111 10,600 5, % Subtotal 371, ,473 15, % 1,729,022 1,949, , % Depreciation Expense: Building 193, ,292 (722) (0.4%) 961, ,460 (49) (0.0%) Furniture & Equipment 685, ,694 (29,114) (4.4%) 3,328,289 3,283,470 (44,819) (1.4%) Total Depreciation Expense 878, ,986 (29,836) (3.5%) 4,289,798 4,244,930 (44,868) (1.1%) Total Centralized Expenses 1,250,727 1,236,459 (14,268) (1.2%) 6,018,820 6,194, , % Total Administrative Budget & Actual $ 8,450,977 $ 8,959,885 $ 508, % $ 37,977,243 $ 39,740,234 $ 1,762, %