1 FINANCE REPORT FOR ET DISCUSSION FEBRUARY 2015 FINANCIAL OVERVIEW & KEY RISK AREAS DP Income Year to date actual income is 15.78M against a forecasted budget year to date of 15.75M, a difference of 32k. Total projected income is expected to be 17.37M, this is being monitored weekly until the year end. Cash Underspend The dedicated project group has identified business needs across the estate and IT budgets where excess income and a projected underspend could be spent. The risk of a material underspend has been reduced, however this is an ongoing risk and continues to be closely monitored weekly in the run up to the end of the financial year. Management Accounts Update The new Management Report is now included as an appendices to the finance report, showing a simplified income and expenditure account along with budgeted vs real-time staff figures. The budget we will report against will be the up to date projections based on the management meetings from the prior month. The full year forecast, takes the actual figures to the current period and adds the budget figures for the coming months this demonstrates the importance of getting the budget month by month profiles spend as close to actual as possible. As previously agreed at finance steering group, from the new financial year, we will report against the MOJ agreed budget quarterly to allow us to develop the proceeding Budget Version for approval with the MOJ. This keeps our business reporting and decisions reactive and up to date. INCOME Grant-in-aid for freedom of information activities The grant-in-aid available for drawdown over 2014-15 was originally set at 3.75M, however it was agreed that we would payback 50k to the MOJ as part of efforts to mitigate a wider government funding gap. Data Protection fees processed The table below shows the actuals vs MOJ approved budget BV2. Our fee income for February was 1.5M, 3% higher than BV2. We are expecting a full year income of 17.36M. This additional income has been factored
2 into our spending projections to the end of the year as shown on the Management Report. 000 Budget Actual Variance (BV2) 2014 April 1,395 1,281-114 2014 May 1,259 1,280 +21 2014 June 1,157 1,432 +275 2014 July 1,358 1,456 +98 2014 August 1,228 1,303 +75 2014 September 1,392 1,514 +122 2014 October 1,611 1,812 +201 2014 November 1,517 1,433-84 2014 December 1,022 1,118 +96 2015 January 1,528 1,632 +104 2015 February 1,480 1,526 +46 Year to date 14,946 15,784 +838 The fee income receipt mix is: 000 Cheque % BACS % Direct Debit % Credit Cards % Refund % Apr-14 322 25% 55 4% 582 45% 325 25% -4 0% May-14 316 25% 65 5% 556 43% 345 27% -2 0% Jun-14 404 28% 76 5% 597 42% 359 25% -5 0% Jul-14 331 23% 48 3% 646 44% 433 30% -2 0% Aug-14 295 23% 51 4% 588 45% 374 29% -4 0% Sep-14 350 23% 72 5% 640 42% 456 30% -4 0% Oct-14 464 26% 80 4% 757 42% 513 28% -2 0% Nov-14 352 25% 57 4% 622 43% 406 28% -4 0% Dec-14 239 21% 45 4% 475 42% 364 33% -5 0% Jan-15 379 23% 51 3% 699 43% 505 31% -3 0% Feb-15 366 24% 50 3% 783 51% 327 21% 0 0% Year to date 3,818 24% 650 4% 6,945 44% 4,407 28% -36 0% Sundry Income The additional income as shown on the management report, shows income to date from recovered UK and overseas travel costs, recovered legal costs and conference delegate income.
3 EXPENDITURE Spending controls The ICO is complying with the Cabinet Office Spending Controls Guidance v 3.2 https://www.gov.uk/government/publications/cabinet-officecontrols/cabinet-office-controls-guidance-version-32 We are also required to obtain specific MOJ approval for any IT or communications spend over 50k for individual projects. We have received approval from the MOJ for the 2014-15 IS budget. We will thus only be required to report spend over 50k not included in the original budget. No such spend has occurred to date. We have received approval from Cabinet Office for additional spending on the redevelopment of the website. Total office costs We can now see detailed splits of all estate costs, which allows for tighter profiling for 2015/16. Due to coding issues from the old system to the new system, we can see that service charges and car parking appear to be over and under budget, these net off to an immaterial difference. There are also some categories that have immaterial under or over spends, however, the overall spend on office costs is within 1% of budget. Key differences to budget: Repairs & Maintenance: 97% over due to additional works on Wycliffe house to limit potential dilapidations. This is balanced out by an underspend of 65% on furniture. Overall office costs are expected to be in line with our budget projections. Total staff costs From the Management Report, we can see that we are we are very close to our compliment FTE which indicates that in terms of staff FTE, we are managing our vacancies appropriately overall. Work is underway to develop a departmental reporting line linking actual staff budgets and staff FTE levels to enable departmental heads to react quickly to changes in resource or business need and plan adequately and efficiently. Overtime year to date remains under budget, however the underspend has been reduced to only 14%. This is expected to come in on budget.
4 Overall staff costs, i.e. permanent and agency combined, to date are in line with budget and expected to remain so for the year. Once the pay deal has been confirmed for payment, actual costs for this will be recognised in the current financial year either paid or accrued. This is unlikely to be significantly different to the original 418k budgeted. Training and Recruitment The budget for recruitment has been increased by 25K to reflect DRIPA recruitment costs, resulting in a 41% underspend to date. This recruitment cost will come out in March. There is a slight overall overspend on learning and development training costs which net off to 7k; this is considered immaterial. IT Costs Service Delivery Service delivery overall is within budget. As with estates, we have now widened the coding structure to allow each budget line to be analysed separately hence there are some variances both under and overspends. The net result is an overspend of 2%. An overall overspend of 50k is expected, as previously reported on the January Management accounts. IT Projects Project spend is expected to come in on or slightly over budget overall. The other category denotes any ongoing project with a small budget (< 5k) that does not require month on month reporting. Please note, the figures reported on include the capital spend for budgeting review purposes. The Capital figures quoted later in the report are taken from the IT costs and project spend that is capital in nature. Communications Spend The 37% overspend within Communications is attributed to prepayments that have yet to be journaled out of this year s spend. The expectation is that communications spend will be to budget. All accruals and prepayments will be reflected at year end and continued through to monthly reporting from April 2015. Banking and finance costs Card commission charges were originally forecast at 5.8k pcm, actual costs are between 4k generating a year to date saving of 29%. This saving will be used to pay for additional audit fees that may arise from the new finance system implementation.
5 Staff travel Overseas travel is lower than expected (9%), this is mainly due to a largely unpredictable profile of spend, it is expected to come in under budget at the year end but not by any material amount. Legal, professional & other One DP Enforcement legal case has slipped into the following year, however additional court costs and policy costs are likely to increase in March. Overall the legal budget is likely to be under budget by approximately 28%. Additional cases has led to increases in library & subscription and research costs however this will be covered by the decreased legal costs. Other represents miscellaneous expenditure; the 16k to date is for insurance costs on Wycliffe House. Included within professional services is 6k spend related to the external agent contracted to negotiate the rates on Wycliffe House and 6k contribution towards the Global Privacy Enforcement Network. CAPITAL EXPENDITURE The year to date capital spend is 672k, 3% behind the revised budget. Expectation is that the capital spend will be in line with budgets. Simon Entwisle, Deputy Chief Executive Officer February 2015
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MANAGEMENT REPORT For the Eleven Months Ending 28 February 2015 ICO BV2 FEB 2015 Year to Date Actual Variance Var % BV2 FEB 2015 Full Year Forecast Variance Var % GRANT IN AID 3,750,000 3,750,000 0 0% 3,700,000 3,700,000 0 0% DP FEE INCOME 15,752,383 15,784,197 (31,813) 0% 17,366,383 17,398,197 (31,813) 0% DRIPA INCOME 30,000 30,000 0 0% 30,000 30,000 0 0% TRAVEL INCOME - UK 19,510 16,209 3,301 17% 19,510 16,209 3,301 17% TRAVEL INCOME - OVERSEAS 0 756 (756) 0% 0 756 (756) 0% LEGAL COSTS RECOVERED 21,000 17,543 3,457 16% 21,000 17,543 3,457 16% CONFERENCE INCOME 14,667 14,400 267 2% 44,000 43,733 267 1% TOTAL INCOME 19,587,560 19,613,105 (25,545) 0% 21,180,893 21,206,439 (25,545) 0% RENT 732,420 761,118 (28,698) (4%) 797,640 826,338 (28,698) (4%) RATES 174,163 187,143 (12,980) (7%) 190,000 202,980 (12,980) (7%) SERVICE CHARGES 24,792 13,214 11,578 47% 32,500 20,922 11,578 36% CAR PARKING 60,000 74,123 (14,123) (24%) 60,000 74,123 (14,123) (24%) HEAT & LIGHT 61,875 59,362 2,513 4% 67,500 64,987 2,513 4% WATER 13,750 11,387 2,363 17% 15,000 12,637 2,363 16% CLEANING 53,900 46,763 7,137 13% 58,800 51,663 7,137 12% SECURITY 38,896 40,352 (1,456) (4%) 42,432 43,888 (1,456) (3%) WASTE 3,718 3,023 695 19% 4,056 3,361 695 17% STORAGE 19,174 22,642 (3,468) (18%) 19,174 22,642 (3,468) (18%) REPAIRS & MAINTENANCE 13,750 27,145 (13,395) (97%) 15,000 28,395 (13,395) (89%) MOTOR COSTS 1,833 1,361 473 26% 2,000 1,527 473 24% KITCHEN 44,583 41,098 3,486 8% 50,000 46,514 3,486 7% FURNITURE 22,917 8,003 14,914 65% 25,000 10,086 14,914 60% GENERAL EQUIPMENT 19,000 15,266 3,734 20% 150,000 146,266 3,734 2% STATIONERY 27,500 31,365 (3,865) (14%) 30,000 33,865 (3,865) (13%) POSTAGE 59,583 51,619 7,964 13% 65,000 57,036 7,964 12% DOCUMENT DESTRUCTION 9,167 5,276 3,891 42% 10,000 6,109 3,891 39% TOTAL OFFICE COSTS 1,381,021 1,400,259 (19,238) (1%) 1,634,102 1,653,340 (19,238) (1%) SALARIES 9,267,021 9,023,184 243,837 3% 10,955,134 10,711,297 243,837 2% OVERTIME 55,000 47,323 7,676 14% 60,000 52,323 7,676 13% PENSION 1,540,619 1,601,316 (60,697) (4%) 1,821,263 1,881,960 (60,697) (3%) NATIONAL INSURANCE 599,129 591,270 7,859 1% 708,269 700,410 7,859 1% AGENCY STAFF 304,337 330,238 (25,901) (9%) 332,000 357,901 (25,901) (8%) NON EXEC BOARD MEMBER 46,292 46,292 0 0% 50,500 50,500 0 0% TOTAL STAFF COSTS 11,812,398 11,639,624 172,774 1% 13,927,165 13,754,391 172,774 1% RECRUITMENT 70,000 40,978 29,022 41% 85,000 55,978 29,022 34% HEALTH & SAFETY 29,000 31,624 (2,624) (9%) 29,000 31,624 (2,624) (9%) FURTHER EDUCATION 2,917 51 2,866 98% 5,000 2,134 2,866 57% TRAINING COURSES 130,000 138,172 (8,172) (6%) 130,000 138,172 (8,172) (6%) CONFERENCES 5,000 4,379 621 12% 5,000 4,379 621 12% MANAGEMENT DEVELOPMENT 10,000 12,665 (2,665) (27%) 10,000 12,665 (2,665) (27%) TOTAL TRAINING AND RECRUITMENT 246,917 227,868 19,049 8% 264,000 244,951 19,049 7%
MANAGEMENT REPORT For the Eleven Months Ending 28 February 2015 ICO Year to Date Full Year BV2 FEB 2015 Actual Variance Var % BV2 FEB 2015 Forecast Variance Var % HOSTING, WEB AND TELEPHONY 692,083 648,237 43,846 6% 755,000 711,154 43,846 6% APP & DESKTOP SUPPORT 609,583 660,920 (51,337) (8%) 665,000 716,337 (51,337) (8%) SOFTWARE LICENSING 261,250 315,691 (54,441) (21%) 285,000 339,441 (54,441) (19%) SECURITY CONTRACT 64,167 60,941 3,226 5% 70,000 66,774 3,226 5% NOTIFICATION PRINTING 132,917 166,492 (33,576) (25%) 145,000 178,576 (33,576) (23%) MANAGED PRINT 36,667 37,115 (449) (1%) 40,000 40,448 (449) (1%) HARDWARE MAINTENANCE 123,750 51,165 72,585 59% 135,000 62,415 72,585 54% GOV SECURE INTERNET 132,917 134,362 (1,445) (1%) 145,000 146,445 (1,445) (1%) TELEPHONY CALLS & BROADBAND 91,667 103,269 (11,603) (13%) 100,000 111,603 (11,603) (12%) TOTAL IT COSTS 2,145,000 2,178,193 (33,193) (2%) 2,340,000 2,373,193 (33,193) (1%) ICE CRM DEVELOPMENT 208,680 266,515 (57,835) (28%) 227,651 285,486 (57,835) (25%) FINANCE SYSTEM 69,155 75,562 (6,407) (9%) 75,442 81,849 (6,407) (8%) WEBSITE DEVELOPMENT 345,559 284,101 61,458 18% 376,973 315,515 61,458 16% DMZ DEVELOPMENT 60,178 69,067 (8,889) (15%) 65,649 74,538 (8,889) (14%) MOBILE WORKING SOLUTIONS 32,042 0 32,042 100% 34,955 2,913 32,042 92% SECURE EMAIL (EGRESS) 29,645 32,340 (2,695) (9%) 32,340 35,035 (2,695) (8%) DOCUMENT STORAGE SOLUTION 35,625 0 35,625 100% 38,864 3,239 35,625 92% OTHER PROJECT WORK 268,699 60,896 207,803 77% 293,126 85,323 207,803 71% TOTAL PROJECT SPEND (INC CAPITAL) 1,049,583 788,480 261,103 25% 1,145,000 883,897 261,103 23% CAMPAIGNS, MEDIA RELATIONS & PR 33,317 39,563 (6,246) (19%) 36,346 42,592 (6,246) (17%) MEDIA MONITORING 23,799 51,978 (28,180) (118%) 25,962 54,142 (28,180) (109%) DESIGN & PRINT 21,418 75,608 (54,190) (253%) 23,365 77,555 (54,190) (232%) DISTRIBUTION 19,038 25,781 (6,743) (35%) 20,769 27,512 (6,743) (32%) SURVEYS 31,413 40,934 (9,521) (30%) 34,269 43,790 (9,521) (28%) CONFERENCES 160,699 177,369 (16,670) (10%) 171,308 187,978 (16,670) (10%) ICON DEVELOPMENT 7,139 26,616 (19,477) (273%) 7,788 27,265 (19,477) (250%) STAFF EVENTS 2,380 0 2,380 100% 2,596 216 2,380 92% WEB MAINTENANCE 28,558 10,131 18,427 65% 31,154 12,727 18,427 59% TOTAL COMMUNICATIONS 327,761 447,981 (120,221) (37%) 353,557 473,778 (120,221) (34%) BANK CHARGES 36,667 33,931 2,735 7% 40,000 37,265 2,735 7% CARD PROCESSING CHARGES 64,167 45,735 18,432 29% 70,000 51,568 18,432 26% EXTERNAL AUDIT 27,500 30,000 (2,500) (9%) 30,000 32,500 (2,500) (8%) INTERNAL AUDIT 15,000 14,481 519 3% 50,000 49,481 519 1% TOTAL FINANCIAL COSTS 143,333 124,147 19,186 13% 190,000 170,814 19,186 10% TRAVEL UK 344,927 304,989 39,938 12% 374,510 334,573 39,938 11% TRAVEL OVERSEAS 41,250 45,292 (4,042) (10%) 45,000 49,042 (4,042) (9%) TOTAL TRAVEL 386,177 350,281 35,896 9% 419,510 383,614 35,896 9%
MANAGEMENT REPORT For the Eleven Months Ending 28 February 2015 ICO Year to Date Full Year BV2 FEB 2015 Actual Variance Var % BV2 FEB 2015 Forecast Variance Var % LEGAL 332,667 222,660 110,006 33% 391,000 280,994 110,006 28% LIBRARY & SUBSCRIPTIONS 51,792 78,297 (26,506) (51%) 56,500 83,006 (26,506) (47%) PROFESSIONAL SUBS 11,917 13,717 (1,800) (15%) 13,000 14,800 (1,800) (14%) ENTERTAINING 0 1,375 (1,375) 0% 0 1,375 (1,375) 0% RESEARCH 45,833 55,412 (9,578) (21%) 50,000 59,578 (9,578) (19%) PROFESSIONAL SERVICES 181,220 170,763 10,456 6% 197,694 187,238 10,456 5% OTHER 36,383 16,977 19,407 53% 39,691 20,284 19,407 49% TOTAL LEGAL, PROFESSIONAL & OTHER 659,811 559,201 100,610 15% 747,885 647,275 100,610 13% TOTAL COSTS 18,152,001 17,716,034 435,967 2% 21,021,219 20,585,253 435,967 2% SURPLUS 1,435,559 1,897,071 (461,512) (32%) 159,674 621,186 (461,512) (289%) CAPITAL SPEND 693,000 672,496 20,504 3% 765,000 744,496 20,504 3% FTE Staff Analysis Permanent Staff Band A 9.6 9.6 0.0 0.0 9.6 9.6 0.0 0.0 Permanent Staff Band B 31.5 22.7 8.8 0.3 31.5 22.7 8.8 0.3 Permanent Staff Band C 110.7 110.5 0.2 0.0 110.7 110.5 0.2 0.0 Permanent Staff Band D 86.5 77.8 8.7 0.1 86.5 77.8 8.7 0.1 Permanent Staff Band E 87.8 85.7 2.1 0.0 87.8 85.7 2.1 0.0 Permanent Staff Band F 36.6 39.4 (2.8) (0.1) 36.6 39.4 (2.8) (0.1) Permanent Staff Band G 12.8 12.0 0.8 0.1 12.8 12.0 0.8 0.1 Permanent Staff Band H 4.0 3.0 1.0 0.3 4.0 3.0 1.0 0.3 Agency Staff Band B 0.0 6.4 (6.4) 0.0 0.0 6.4 (6.4) 0.0 Agency Staff Band C 0.0 7.4 (7.4) 0.0 0.0 7.4 (7.4) 0.0 Agency Staff Band D 0.0 4.0 (4.0) 0.0 0.0 4.0 (4.0) 0.0 Agency Staff Band E 0.0 1.0 (1.0) 0.0 0.0 1.0 (1.0) 0.0 Total FTE staff 379.5 379.6 (0.1) 0.0 379.5 379.6 (0.1) 0.0