Information Commissioner’s Office

FINANCE REPORT
November 2012 (month 08)

Overview
The current forecast is for the ICO to underspend by £79K (£115K DP under-spend
and £36K FOI overspend).

It is worth noting that the DP fee is comfortably within the carry forward limits of
£468K, but the foi grant-in-aid is currently overspent.

Following last month’s discussion about risk appetite in respect of fee income, the
forecast has been increased by £450K this month, in the light of actual income to
date this year. Fee income for November 2012 has been higher than originally
profiled.

The only IS activity not currently funded is the sending of secure Emails Egress
Switch installation for which more detailed costs are being obtained (original
estimate £5K to £20K).

Although not formally requested at this stage, there is a note from the Re-
procurement Project that the budget for legal support may need to be increased by
£20K, from the current budget of £80K.

Action 1: ET is asked to confirm budget changes made since last month

1. Additional £450K – increase annual fee forecast to £15.6M.

2. Release £50K – Policy research provision no longer required.
3. Release £132K - Corporate Affairs budget no longer required.
4. Additional £103K – IS development budget for named projects
5. Additional £5K – Corporate Services budget for building surveyor.

Action 2: ET is invited asked to note the Egress Switch work (£5K to £20K) and
potential need for £20K additional IS development re-procurement (legal costs) that
are currently not funded within this forecast.

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Summary income comments

Grant-in-aid for FOI £1,000K was last drawn in October 2012, making £3,250K
drawn for the year to date. A final £1,000K has been requested for drawdown in
January 2013.

Fees collected and available to spend were:

(£’000) Actual Budget* Variance Variance %

2012-13
Tier 1 (£35) 8,867 8,914 -47 -0.5%
Tier 2 (£500) 2,078 1,958 +120 +6.1%

Total 10,945 10,872 +73 +0.7%

*Budget increase in November 2012 by £450,000 (Tier 1).

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Proposed changes to the budget for approval:

Budget Amount
Fees Forecast judgementally increased by 3.3% for the year, in line £450K
with experience of receipts for the year to date.

Policy Data protection research work is being procured, likely -£50K

expenditure in this financial year estimated to be in the region of
£75K, hence budget release
Corporate Review of budgets in light of current workloads and -£132K
affairs expectations has enabled the following to be released
Communications planning £35K
Communications on-line £3K
Communications internal £4K
Communications research £90K
Corporate A surveyor has been engaged through an MOJ framework +£5K
services agreement to make an initial review the lease obligations
and options in connection with Wycliffe House, in view of
the lease expiry on 1 January 2017.
IS: Budget provision for IS work: +£103K
Development Upgrade VMWare to V5 £47K
Replace/update firewalls £14K
Imperva £12K
Active Directory £30K

Payroll Updated salary forecast -£51K

Net decrease -£125K
Expenditure forecast 31October 2012 £20,346K
Expenditure forecast 30 November 2012 £20,221K

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 Summary expenditure comments

Area Forecast Actual Comment (on a cash spent in the year

Variance
£’000 £’000 £’000 basis)
Payroll 8,088 8,079 -9 Payroll forecast has been updated as at 30
-0% November 2012 for all known starters and
leavers.

Working proposition is for any pay deal

payments to be paid in December 2012.
Human 134 119 15 L&D budget reviewed and will be fully
Resources -12% spent. Plan to use POCA receipts from last
year £27K against some of this training,
which could provide a £20K under-spend on
this budget, though this will not be clear
until later in the year.

L&D £7K lower than profiled.

Staff recruitment £8K lower than profiled.
Facilities 782 744 -38 Under-spending is mainly as a result of the
-5% Cardiff Regional Office MOTO not yet being
signed, so no occupation charges have
been paid over since occupation in May
2011, currently owe i.r.o. £45K.
IS 1,779 1,737 -42 Notification postage is matching the revised
-2% budget for the year.

Service costs do not include print service

invoices.
Corporate 621 332 -289 The budget has been reviewed in detail this
affairs -46% month to estimate likely expenditure over the
remainder of the year, so budget expected to
be spent albeit expenditure is skewed to the
end of the year.
Legal and 330 180 -150 Legal costs invoiced are lower than profiled
professional -45% but this no guarantee that the full budget will
not be spent, and there is a significant
amount of work in progress and we are
dependent on events.

There does not appear to be any unfunded

pressures materialising to date.

Information rights research is being procured

and surplus budget released
Travel 256 246 -10 Analysis across each department suggests
&subsistence -4% that the current budgets are sufficient for the
year.
Projects 752 761 +9 Detailed project progress comments below.
-5%
Total 12,742 12,198 -544 See below
-4%

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Projects

Current position Future position

ICE – replacement of the The Project now has a budget Current expectation is that
DUIS notification software for the year of £950K. which the Project has sufficient
systems on current assumptions looks budget, however the margins
an appropriate amount to within which it is operating
complete the project, with remain very tight.
the caveat that the project
plan costs are still estimates
and will be firmed up in the
light of progress during the
‘sprint’ based approach.

There has been no invoicing

from Capita during the
month.
Re-procurement of IS The project began with no
Managed Services Contract budget.
A budget of £80K was agreed
in April 2012.
Spend to date is £48K.
Belfast Regional Office Budget of £18K allocated to
relocation this project in April 2012.
Project team suggest that
budget may be under
pressure, and there is a
chance it may need to
request up to a further £20K
to complete.
Move is in progress first week
of December 2012.

Break clause exercised 18

September 2012.

New premises not yet

sourced.
Replacement of accounting The £100K funding Expenditure will now take
software tentatively allocated to this place in 2013-14
has been transferred to the
ICE project.

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Previous changes to the budget for the first half year

£000
Budgeted spending at 1 April 2012 19,695

ET decision 14May12 Payroll: Expansion of Enforcement team +165

ET decision 14May12 Payroll: Procurement Manager +55
ET decision 14May12 Payroll: Project Manager IS procurement project +55
ET decision 14May12 Legal: Support for IS procurement project +80
ET decision 16Jul12 Communications: release of website development -257
ET decision 16Jul12 IS: ICE project +200
ET decision 16Jul12 Enforcement: additional provision for legal actions +40
ET decision 16Jul12 Accommodation: Belfast office move +18
ET decision 24Sep12 Payroll: Addition overtime/agency resources for First +50
Contact helpline
ET decision 08Oct12 IS: Cognos support server and maintenance +30
ET decision 08Oct12 Notification: DUIS postage +100
ET decision 08Oct12 General administration: other +10
ET decision 08Oct12 Stationery -10
ET decision 08Oct12 Travel and subsistence UK +2
ET decision 08Oct12 Conference attendances -2
ET decision 19Nov12 IS Service Charges +140
ET decision 19Nov12 IS Development +40
(sharepoint/COGNOS/CIPHR/Idol/Web attacks)
ET decision 19Nov12 General administration +30
ET decision 19Nov12 Conference attendance budget -8
ET decision 19Nov12 Travel and subsistence UK (post review) +2
ET decision 19Nov12 Audit fee – correct to actual -1
ET decision 19Nov12 IS Development: VMWare upgrade +47
ET decision 19Nov12 IS Development: End of life firewalls +14

Not yet approved Corporate affairs – budget released following review -132
Not yet approved IS Development – Imperva and Active Directory web +42
Not yet approved Corporate Support – Building surveyor +5
Not yet approved Policy – surplus Information Rights Research budget -50

Net revisions to payroll forecast in respect of vacancy -139

profiling and use of agency staffing

Budgeted spending at 30 November 2012 20,221

Changes to the apportionment model during the first half year

Proposed Change Amount

ET approved 16Jul12 Enforcement: Expansion of Enforcement 97.5% DP
team. (previously
95% DP)

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 YTD ACTUAL SPENDING YEAR TO DATE FORECAST OUTTURN FOR THE YEAR
ACTUAL SUPPORT OPERATIONS POLICY TOTAL SUPPORT OPERATIONS POLICY
NOVEMBER 2012 2012-13 DB SE - £ DB SE DS/GS
Gross salaries - staff in post/offers 6,087,784 991,521 3,947,101 1,149,163 9,381,264 1,542,686 6,084,263 1,754,314
Gross salaries - NEBM's 37,875 37,875 - - 50,500 50,500 - -
Overtime 63,083 11,363 46,833 4,887 130,000 20,500 104,500 5,000
Employers NIC 431,347 70,781 267,881 92,685 669,323 112,958 433,213 123,152
Pensions 1,108,481 187,199 697,932 223,350 1,712,028 281,374 1,113,977 316,677
Agency and Temporary Staff 349,940 349,940 - - 349,940 349,940 - -
Payroll 8,078,510 1,648,679 4,959,747 1,470,084 12,293,055 2,357,957 7,735,954 2,199,143
Health and safety 19,895 19,895 - - 25,000 25,000 - -
Learning and development 39,950 39,950 - - 125,000 125,000 - -
Conference attendances 3,747 3,747 - - 10,000 10,000 - -
Staff recruitment 18,182 18,182 - - 40,000 40,000 - -
HR support 37,017 37,017 - - 55,000 55,000 - -
Human resources 118,790 118,790 - - 255,000 255,000 - -
Property rent and rates 447,113 447,113 - - 1,082,700 1,082,700 - -
Property maintenance charges 26,568 26,568 - - 85,000 85,000 - -
Property fuel and utilities 37,809 37,809 - - 82,500 82,500 - -
Property other (security, cleaning etc.) 81,776 81,776 - - 112,653 112,653 - -
Accommodation - fit out works 0 - - - 18,000 18,000 - -
Postage 48,603 48,603 - - 65,000 65,000 - -
Document Destruction 7,213 7,213 - - 15,000 15,000 - -
Furniture and equipment 14,354 14,354 - - 25,000 25,000 - -
General Administration: kitchen 31,156 31,156 - - 50,000 50,000 - -
General Administration: other 17,049 17,049 - - 55,000 55,000 - -
Van 651 651 - - 2,000 2,000 - -
Repairs/Maintenance 9,117 9,117 - - 20,000 20,000 - -
Stationery 23,082 23,082 - - 40,000 40,000 - -
Facilities 744,491 744,491 - - 1,652,853 1,652,853 - -
IS service contract 1,375,380 1,375,380 - - 2,398,000 2,398,000 - -
IS development 82,072 82,072 - - 275,000 275,000 - -
IS development: Replacement DUIS 712,755 712,755 - - 950,000 950,000 - -
Telecommunications 56,601 56,601 - - 80,000 80,000 - -
IS DUIS postage 223,537 - 223,537 - 333,000 - 333,000 -
IS 2,450,346 2,226,808 223,537 - 4,036,000 3,703,000 333,000 -
Communcations planning 270,841 270,841 - - 558,500 558,500 - -
Online 13,001 13,001 - - 147,000 147,000 - -
Internal communications 607 607 - - 2,000 2,000 - -
Research 10,291 10,291 - - 154,000 154,000 - -
Corporate governance 37,447 37,447 - - 70,000 70,000 - -
Corporate affairs 332,286 332,186 - - 931,500 931,500 - -
Legal costs 169,199 58,691 21,464 89,044 410,000 120,000 90,000 200,000
Specialist support 8,856 - 8,856 - 50,000 5,000 45,000 -
Information rights: research & projects 4,895 - - 4,895 75,000 - - 75,000
Audit fees external 30,000 30,000 - - 30,000 30,000 - -
Library and Subscriptions 8,874 7,835 1,039 - 59,500 55,000 4,500 -
Professional subscriptions 5,714 5,714 - - 10,000 10,000 - -
Bank charges 264 264 - - 35,000 35,000 - -
Legal and professional 227,803 102,505 31,359 93,939 669,500 255,000 139,500 275,000
T & S UK 219,389 32,695 96,460 90,235 335,500 48,000 165,000 122,500
T & S Overseas 26,666 10,619 1,030 15,017 48,000 5,000 7,000 36,000
Travel and subsistence 246,055 43,314 97,489 105,252 383,500 53,000 172,000 158,500
Accruals adjustments
Total expenditure 12,198,280 5,216,773 5,312,133 1,669,275 20,221,408 9,208,310 8,380,454 2,632,643
43% 44% 14% 46% 41% 13%

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