Finance Report for Finance Steering Group, SMT

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1 Finance Report for Finance Steering Group, SMT October 2016 Executive Summary This report shows our year to date position against our revised budget agreed at the end of August. If income is received and funds spent in line with projections we would see a small cash surplus of 22,000 at year end. There are currently no material areas for concern. When setting our revised budget we accepted the need to track income and expenditure closely, adjusting the latter in line with the significant areas of discretionary spend our budget includes if necessary. During October our year to date data protection fee income fell short of our revised target by 242,000. A further review of our expenditure, indicates a projected underspend on costs of 108,000. If we recover the income position we would have a net cash surplus of 170k. If we do not a net cash overspend of 330k. That said there is still 195k of discretionary spend in the budget which has not yet been approved ( 100k training and 95k IT projects). We will be continuing to track income and expenditure extremely closely and revise our forecasts and plans accordingly as the year progresses. Financial Overview as at 31 st October DP Income VARIANCE TO BV1 BV2 ACTUAL BV1 BV2 APRIL 1,434 1,505 1, MAY 1,420 1,524 1, (0) JUNE 1,593 1,611 1, (0) JULY 1,709 1,474 1,474 (235) (0) AUGUST 1,401 1,559 1, SEPTEMBER 1,843 1,898 1,736 (107) (162) OCTOBER 1,771 1,825 1,744 (26) (81) CUMULATIVE YTD 11,170 11,397 11,155 (15) (242) We have collected 11.2m of DP fee income so far this year. This is 720k ahead of the same point last year and 242k below our revised target for

2 April May June July August September October November December January February March this year. Our DP fee income therefore continues to rise year on year, but is presently 2.1% behind our revised year end target. Fee Income 2,000 1,800 Fee income ( 000) 1,600 1,400 1,200 1, BV1 BUDGET BV2 BUDGET ACTUAL ACTUAL ACTUAL Month Grant in Aid (GIA) FoI annual GIA Is 3.75m for 16/17 18/19 inclusive. This is paid monthly and returns to and receipts from DCMS are up to date. A relatively small addition to our annual GIA has also recently been agreed to cover the cost of our EIDAS work. This GIA has been agreed as 40,000 for this year and then 44,100, 44,500, and 45,000 for the next three years. Receipts will start to be collected during the coming quarter, including those to cover funds spent so far this year. Staff, training and recruitment Our FTE at 31 October is inclusive of agency filled posts against a full year budget of 435 and March 16 figure of 409. We anticipate reaching the budget complement during November. Budgets for training courses and recruitment were increased significantly during the budget review process. 100k of this increase is so far uncommitted spend set aside for training. IT service and projects Total IT spend is under budget year to date by 125k. The IT project budget is 1.38m. This was increased from 1.215m in the recent review. 70k of the increase relates to external legal costs

3 connected to the procurement of new service contracts and the remaining 95k to uncommitted project costs. Our IT service budget was increased by 100,000 to cover the expected increase in software license costs associated with an expanding workforce and some parallel running during our IT transformation programmes. Our IT service budget is expected to spend in full this year. Capital allowance We have a capital allowance from DCMS of 650,000 this year. Irrespective of our broader financial position, if we have plans to spend in excess of this allowance on capital projects we need authority to do so from the DCMS. During the November estimates exercise, we requested an additional 30k for expenditure relating to internal office moves and furniture. Note this is a switch of budget between resource and capital and is not an increase in our total funding. Total office costs Anticipated spend in this area has been reviewed, and reduced, to account for future reductions in car parking costs and the reduction in the cost of our Wycliffe House lease. Finance costs Following a meeting with our bank managers our bank charges for the current calendar year have been confirmed. At 38,000 this represents a reduction of 7000 over the previous year. This reduction is due to the elimination of cheques in our payments process and reduced receipts in the registration service which attract much higher processing fees. Legal, professional & other together with communications costs Legals costs are generally on target across the board, with the exception of Enforcement. A budget increase of 112k was made relating to Operation Spruce. The hearing has been delayed until November 2017, so some of these costs will be incurred in the next financial year, resulting in an underspend this year.

4 Depreciation & Amortisation These costs are currently running under budget, but will catch up when new assets are capitalised. A current estimate of the additional sums to write off at year end is 130k. Other activities The TPS contract is due to come across to the ICO from a date yet to be confirmed. From that point we expect to consolidate those figures into our accounts. These accounts do not therefore reflect any changes for this activity.there will be a need to include some 60k legal costs spanning this year and next for the reprocurement of this contract. Plans to introduce a research bursary are also underway. The extent to which funds can be set aside this financial year will depend on any year end budget surplus. However, discussions with DCMS and HM Treasury to establish the necessary arrangements and approval for such a fund are expected to commence as soon as our proposal has been developed. Civil Monetary Penalties The debtor of CMPs owed to the ICO as at 31 October 2016 is 3,001,140 of which 815,000 was provided as a bad debt at the end of March 2016 net outstanding is 1,750,560 as follows: B/f ,873,940 less bad debt provision 15/16 (815,000) accounts balance 1,058,940 Issued penalties gross 2,025,400 Issued penalty increase post appeal - Issued prompt payment discount (234,200) Net 2,850,140 Receipts (1,248,480)* Impaired - Balance 1,601,660 *Amount due to be paid to consolidated fund in January 638,700 The creditor due to the consolidated fund (via DCMS) in respect of the above is 2,240,360. At the present time we do not impair and fully write off penalties until such time as we receive legal advice that the debt

5 cannot be recovered. For prudent accounting purposes we were obliged to make provision for those debtors in liquidation at the end of the last financial year, however these debts have not yet been fully written off as we are still chasing them. For clarity we will not make similar provision until the year end for current year debts. Simon Entwisle October 2016

6 MANAGEMENT REPORT For the Seven Months Ending 31 October 2016 Year To Date Full Year Prior year BV Actual Variance Var % BV Forecast Variance Var % ( ) GRANT IN AID 2,187,500 2,187, ,750,000 3,790,000 40, % 3,730,768 DP FEE INCOME 11,396,805 11,154,705 (242,100) (2.1%) 20,080,000 20,080, ,311,232 DRIPA INCOME 165, , , , , TOTAL INCOME 13,749,305 13,507,205 (242,100) (1.8%) 24,160,000 24,200,000 40, % 22,372,000 RENT 446, ,320 27, % 759, , , % 746,048 RATES & BUILDING INSURANCE 139, ,140 6, % 240, ,949 4, % 236,183 SERVICE CHARGES 17,341 17,514 (173) (1.0%) 30,571 30,997 (426) (1.4%) 32,176 CAR PARKING 25,714 57,260 (31,546) (122.7%) 89,999 60,771 29, % 80,779 HEAT & LIGHT 51,199 58,100 (6,901) (13.5%) 106, , ,069 WATER 10,482 10,912 (430) (4.1%) 15,997 15, ,317 CLEANING 43,463 52,275 (8,812) (20.3%) 60,003 70,003 (10,000) (16.7%) 60,358 SECURITY 35,475 30,354 5, % 59,000 59, ,502 WASTE 2,726 2,956 (230) (8.4%) 4,056 4, ,443 STORAGE 2, , % 10,002 10, ,815 REPAIRS & MAINTENANCE 42,768 24,065 18, % 95,003 95, ,556 MOTOR COSTS 24 (142) % % 970 KITCHEN 14,765 17,989 (3,224) (21.8%) 21,500 21, ,127 FURNITURE 11,092 10, % 13,472 13, ,968 GENERAL EQUIPMENT 19,187 5,730 13, % 56,472 56, ,516 STATIONERY 23,644 23, % 34,149 34, ,930 POSTAGE 36,111 29,201 6, % 60,841 60, ,606 DOCUMENT DESTRUCTION 4,596 3,437 1, % 8,001 8, ,984 OTHER 68,324 68,712 (388) (0.6%) 53,109 53, ,207 TOTAL OFFICE COSTS 995, ,285 30, % 1,718,210 1,559, , % 1,713,554 SALARIES 6,978,918 6,932,423 46, % 12,184,700 12,184, ,864,109 OVERTIME 65,319 62,800 2, % 126, , ,144 PENSION 1,420,118 1,410,074 10, % 2,481,608 2,481, ,170,213 NATIONAL INSURANCE 659, ,463 6, % 1,168,080 1,168, ,893 AGENCY STAFF 96,647 91,213 5, % 195, , ,945 SALARIES INCOME (71,440) (76,136) 4,696 (6.6%) (81,645) (81,645) - - (118,912) OVERTIME INCOME (5,016) - (5,016) 100.0% (17,556) (2,508) (15,048) 85.7% - PENSION INCOME (12,630) (16,244) 3,614 (28.6%) (8,410) (17,556) 9,146 (108.8%) (24,757) NATIONAL INSURANCE INCOME (5,493) (8,680) 3,187 (58.0%) 2 (8,408) 8, % (10,104) NON EXEC BOARD MEMBER 28,737 23,565 5, % 56,467 44,900 11, % 46,707 TOTAL STAFF COSTS 9,154,807 9,072,478 82, % 16,104,745 16,090,670 14, % 14,118,238

7 MANAGEMENT REPORT For the Seven Months Ending 31 October 2016 Year To Date Full Year Prior year BV Actual Variance Var % BV Forecast Variance Var % RECRUITMENT 60,173 47,378 12, % 140, , ,071 RELOCATION EXPENSES 22,727 15,817 6, % 40,002 40, HEALTH & SAFETY 26,195 23,854 2, % 45,000 45, ,002 FURTHER EDUCATION 7,298-7, % 8,003 8, TRAINING COURSES 153,790 82,419 71, % 397, , ,440 CONFERENCES 67, ,469 (44,765) (66.1%) 32,179 32, ,235 MANAGEMENT DEVELOPMENT 12,518 9,298 3, % 23,998 23, ,036 TOTAL TRAINING AND RECRUITMENT 350, ,235 59, % 686, , ,144 HOSTING, WEB AND TELEPHONY 409, ,809 (12,232) (3.0%) 716, , ,360 APP & DESKTOP SUPPORT 409, ,424 (12,121) (3.0%) 680, , ,905 SOFTWARE LICENSING 248, ,046 (4,468) (1.8%) 384, , ,177 SECURITY CONTRACT 28,006 19,207 8, % 50,001 50, ,457 NOTIFICATION PRINTING 87, ,324 (14,441) (16.4%) 154, , ,938 MANAGED PRINT 11,174 36,773 (25,599) (229.1%) 42,234 63,934 (21,700) (51.4%) 53,443 HARDWARE MAINTENANCE 66,395 69,961 (3,566) (5.4%) 80,000 80, ,110 GOV SECURE INTERNET 37,142-37, % 129, , ,548 TELEPHONY CALLS & BROADBAND 56, ,660 (85,820) (151.0%) 101, , ,822 TOTAL IT COSTS 1,354,898 1,467,204 (112,306) (8.3%) 2,340,113 2,361,813 (21,700) (0.9%) 2,399,760 ICE CRM DEVELOPMENT 119,844 19, , % 399, , ,092 DOCUMENT STORAGE SOLUTION 51,416 1,982 49, % 175, , ,358 DIGITAL DELIVERY 6,625 12,435 (5,810) (87.7%) 20,000 20, ,609 INFRASTRUCTURE 161,444 21, , % 574, , ,702 OTHER PROJECT WORK 74,033 22,185 51, % 209, , ,795 PRE-PROJECT INVESTIGATION - 1,297 (1,297) NPS RESOURCE 137, ,753 (221,571) (161.5%) TOTAL PROJECT SPEND (INC CAPITAL) 550, , , % 1,379,999 1,379, ,166,556 CAMPAIGNS, MEDIA RELATIONS & PR 21,998 18,281 3, % 44,998 44, ,580 MEDIA MONITORING 32,207 57,255 (25,048) (77.8%) 45,002 95,002 (50,000) (111.1%) 71,084 DESIGN & PRINT 41,922 21,220 20, % 54,997 54, ,918 DISTRIBUTION 20,700 12,322 8, % 40,000 40, ,900 SURVEYS 24,893 26,779 (1,886) (7.6%) 66,003 66, ,191 CONFERENCES GENERAL 49,134 52,400 (3,266) (6.6%) 154, ,000 50, % 288,952 CONFERENCE INCOME (1,035) (1,035) - - (44,000) (44,000) - - (57,151) CONFERENCES EUDP ICON DEVELOPMENT 6,858-6, % 24,003 14,003 10, % 5,178 STAFF EVENTS 16,867 16,874 (7) (0.0%) 6,002 36,002 (30,000) (499.8%) 27,651 WEB MAINTENANCE 10,480 6,397 4, % 30,000 10,000 20, % 49,397 TOTAL COMMUNICATIONS 224, ,493 13, % 421, , ,700 BANK CHARGES ,952 (37,497) (8241.1%) 30,001 47,501 (17,500) (58.3%) 30,956 CARD PROCESSING CHARGES 44,944 48,126 (3,182) (7.1%) 72,719 72, ,726 BAD DEBT WRITE OFFS (99) (39.6%) ,410 EXTERNAL AUDIT ,500 32, ,500 INTERNAL AUDIT 21,790 19,581 2, % 37,365 37, ,642 CORPORATION TAX % 2 17 (15) (750.0%) 61 TOTAL FINANCIAL COSTS 67, ,025 (38,514) (57.0%) 172, ,102 (17,515) (808.3%) 181,295

8 MANAGEMENT REPORT For the Seven Months Ending 31 October 2016 Year To Date Full Year Prior year BV Actual Variance Var % BV Forecast Variance Var % TRAVEL UK 239, ,968 2, % 437, , ,385 TRAVEL OVERSEAS 43,268 65,663 (22,395) (51.8%) 43,508 83,508 (40,000) (91.9%) 76,093 TRAVEL INCOME - UK (3,437) (4,977) 1,540 (44.8%) (2,917) (7,000) 4,083 (140.0%) (6,404) TRAVEL INCOME - OVERSEAS (6,576) (8,144) 1,568 (23.8%) (5,461) (10,000) 4,539 (83.1%) (16,302) TOTAL TRAVEL 272, ,510 (16,552) (6.1%) 472, ,741 (31,378) (6.6%) 433,772 LEGAL 207, ,672 30, % 491, , ,118 LEGAL COSTS RECOVERED (14,360) (16,257) 1,897 (13.2%) (14,145) (20,000) 5,855 (41.4%) (7,289) LIBRARY & SUBSCRIPTIONS 37,708 38,109 (401) (1.1%) 68,203 68, ,720 PROFESSIONAL SUBS 8,775 12,434 (3,659) (41.7%) 21,150 21, ,727 SUBSISTENCE (150) (111.1%) RESEARCH 25,455 20,116 5, % 50,000 50, ,367 PRIVACY SEALS ,655 DP REGULATION FUTURES PROJECT ,000 PROFESSIONAL SERVICES 86,040 70,217 15, % 216, , ,067 STAFF RECOGNITION 2,548 (1,260) 3, % 8,883 8, , TOTAL LEGAL, PROFESSIONAL & OTHER 353, ,316 53, % 841, ,067 5, % 580,505 TOTAL COSTS 13,324,325 13,140, , % 24,137,724 24,029, , % 21,497,524 OPERATING CASH SURPLUS 424, ,976 58, % 22, , , % 874,476 paid 907,776 - CAPITAL SPEND , , ,225 DEPRECIATION 438, ,571 1, % 965, , ,002,015 AMORTISATION 533, ,938 10, % 999, , % 821,079 LOSS ON DISPOSAL OF FIXED ASSETS (858) (514) (344) 40.1% 2 (514) % 340,211 TOTAL NON CASH COSTS 971, ,995 11, % 1,965,000 1,963,897 1, % 2,163,305

Finance Report for Finance Steering Group. January Executive Summary. Financial Overview as at 31 January

Finance Report for Finance Steering Group January 2017 Executive Summary This report shows our year to date position against our revised budget agreed at the end of August. If income is received and funds