Annex 1
Memorandum on Department for International
Development—Spring Supplementary Estimate 2004-05
SUMMARY OF
CHANGES SOUGHT
IN THE
ESTIMATE
1. The Department for International Development's
Spring Supplementary Estimate requests additional provision above
Main Estimates totals of:
| Net resources within Request for Resources 1
| £190.762 million |
| Net resources within Request for Resources 2
| £7.622 million |
| Net Capital expenditure | £20.851 million
|
| Net Cash Requirement | £138.069 million
|
| |
2. The most significant changes arising from the Estimate
are:
(a) an addition of programme resource grants totalling
£151.532 million to Sections A, B, and F of Request for Resources
1. This results from the take up of EndYear Flexibility to support
planned increases in spending on ongoing development programmes
in sub-Saharan Africa, Asia, and on central programmes supporting
several of the Department's objectives.
(b) the inclusion of £25.0 million of additional
programme resource grants in Section D of Request for Resources
1 representing a claim on the Treasury DEL Reserve to allow the
Department to provide increased humanitarian assistance following
the Asian tsunami.
(c) a transfer of £35.0 million of programme resource
grants from Section I to Section D of Request for Resources 1
representing the allocation of the Department's contingency reserve
to humanitarian assistance programmes following the Asian tsunami.
(d) an addition of £9.400 million of administration
provision to Sections A, B, C, D and F of Request for Resources
1. This increase is the take up of End Year Flexibility to support
increased expenditure on the administration of development programmes
in sub- Saharan Africa and Asia, the administration of humanitarian
assistance, the development and implementation of systems to improve
the efficiency of the organisation; and to meet higher forecasts
for early retirement provisions and impairments than were included
in Main Estimates.
(e) an addition of £6.088 million of capital provision
to Sections F and G of Request for Resources 1. This is the take
up of End Year Flexibility to support capital investment in improvements
to the department's management information and financial systems,
and the acquisition of equity in Actis Capital LLP following the
restructuring of CDC Group in July 2004.
(f) the creation of a new section, section L in Request
for Resources 1, to record the cost of capital charge on the department's
investment in CDC Group in Annually Managed Expenditure (AME).
Treasury agreement to reclassify these costs from the Departmental
Expenditure Limit (DEL) to AME was secured early in 2004-05. The
gross provision sought against the new section is £55.305
million, of which £35.000 million has been transferred from
section F of Request for Resources 1.
(g) an addition to Section B of Request for Resources
2 of £6.500 million of programme resource grants. This represents
a transfer from the Foreign and Commonwealth Office, who administer
the cross government Global Conflict Prevention Pool, to provide
increased funding for conflict prevention projects to be undertaken
by DFID in 2004-05.
(h) the creation of a new section, Section C in Request
for Resources 2, to record provision for the new inter-departmental
Post—Conflict Reconstruction Unit. Gross provision of £2.160
million resource and £0.440 million capital is being sought
to cover the initial set up costs of the unit in 2004-05. Funds
are being found from the take up of End Year Flexibility.
DETAILED EXPLANATION
OF THE
CHANGES
3. The transfers and other changes outlined in the Introduction
to the Estimate are analysed in this section of the memorandum.
Request for Resources 1: Eliminating Poverty in Poorer Countries
Section A—Reducing Poverty in sub-Saharan Africa
4. There is an increase in gross and net resource provision
of £67.732 million. This comprises a draw down of £67.000
million of programme resource and £0.200 million of administration
costs End Year Flexibility, together with a transfer of £0.532
million of programme resource from Section H of Request for Resources
1.
5. The £67.532 million of programme resource grants
provision will support additional expenditure on development programmes
in the key countries covered by the PSA target to reduce poverty
in sub-Saharan Africa. Decisions have been taken to increase country
programmes in Nigeria, Rwanda, Sierra Leone, and Ethiopia above
the allocations reflected in Main Estimates. Planned spending
on regional programmes will also increase. The £0.200 million
of additional administration costs provision supports an increase
in planned spending by DFID's country offices on the administration
of development programmes in sub-Saharan Africa. The increased
provision in section A of the Estimate will ensure that the gross
and net provision in the section is sufficient to fund the expected
level of expenditure on Africa programmes and the administration
of those programmes.
6. The changes in the capital totals in section A since
Main Estimates are an increase in the gross provision of £2.450
million and a reduction of the Appropriations in Aid total to
nil. The increase in gross provision is fully offset by increased
Appropriations elsewhere in the Estimate. It represents additional
planned investment on buildings, furniture, vehicles, and other
fixed assets by DFID's country offices. The continued expansion
of DFID's development programmes in sub-Saharan Africa has created
a need for new and enhanced office accommodation to facilitate
the delivery of those programmes.
7. The Non Operating Appropriations in Aid figure has been
reduced to nil as a number of bilateral loan repayments originally
expected from countries in Africa will not be received in 2004-05.
Section B—Reducing Poverty in Asia
8. There is an increase in gross and net resource provision
of £30.100 million. This comprises a draw down of £30.000
million of programme resource and £0.100 million of administration
costs End Year Flexibility.
9. The £30.000 million of programme grants resource
provision supports additional expenditure on development programmes
in the key countries covered by the PSA target to reduce poverty
in East Asia and the Pacific. Decisions have been taken toincrease
programmes in Bangladesh, Pakistan, and China above the allocations
reflected in Main Estimates. The £0.100 million of additional
administration costs provision supports an increase in planned
spending by DFID's country offices on the administration of development
programmes in Asia. The increased provision in section A of the
Estimate will ensure that the gross and net provision in the section
is sufficient to fund the expected level of expenditure on Asia
programmes and the administration of those programmes.
10. The changes in the capital totals in section B since
Main Estimates are an increase in the gross provision of £0.990
million and a reduction in Appropriations of 1.0 million. The
increase in gross provision is fully offset by increased Appropriations
elsewhere in the Estimate. It represents additional planned investment
by DFID country offices in West Asia and South East Asia, including
a security upgrade for the office in Afghanistan.
11. The Asia Non Operating Appropriations in Aid figure
has been reduced from the Main Estimates total as some loan repayments
expected countries in Asia will not now be received this year.
Section C—Reduce Poverty in Rest of the World
12. The overall gross and net resource provision in section
C has decreased by £3.848m from Main Estimates. This comprises
a programme grants transfer of £10.000 million from Section
E, a draw down of £1.652 million of administration costs
End Year Flexibility, an inward interdepartmental transfer of
£0.500 million, offset by a resource to capital transfer
within the section of £16.000 million.
13. The transfer of £10.000 million within the Request
for Resources moves provision originally earmarked to support
policy innovation to development programmes to reduce poverty
in the rest of the world. Increased provision is needed within
the section as spending on development programmes in some countries
in the Middle East, particularly Palestine and Yemen, has proved
to be higher than the allocations allowed for in Main Estimates.
Expenditure on reconstruction programmes in Grenada and other
countries in the Caribbean affected by Hurricane Ivan also charges
against this section, and provision was not included in Main Estimates.
14. The draw down of administration costs End Year Flexibility
allocated to section C represents transitional costs incurred
as a result of the reprioritisation of DFID'sprogrammes away from
Middle Income Countries towards Low Income Countries. As a consequence
there will be mergers or closures of DFID offices in Eastern Europe
and the Middle East. The full extent of these costs has emerged
since Main Estimates and administration costs End Year Flexibility
is required to meet them.
15. The £0.500 million interdepartmental transfer
relates to funds from DEFRA to support environmental projects
in Russia and the Ukraine.
16. A sum of £16.000 million has been transferred
within section C from resource to capital. It relates to a subscription
made to the European Bank for Reconstruction and Development by
means of a promissory note. At the time of the 2002 Spending Review
settlement, there was some doubt about the public expenditure
classification of this subscription, and the funding was provided
as part of the Resource DEL. Subsequently, it has been established
that the subscription is classified as capital as it is a financial
transaction to acquire equity in an international financial institution.
The transfer included in the Supplementary Estimate ensures that
the provision appears in the correct column in the Part II tables.
17. The main increase in the gross capital provision
within section C relates to the resource to capital transfer.
Additionally, the gross provision has been increased by a further
£0.440 million to fund enhancements to the DFID office in
Yemen that were not planned at Main Estimates.
18. The Rest of the World Non Operating Appropriations
in Aid figure has been reduced from the Main Estimates total.
This is a consequence of the fact that loan repayments originally
expected from Belize and St Kitts will not be received in 2004-05.
Section D—Improve the Effectiveness of Multilateral Aid
19. The gross and net resource provision in the section
has increased by £115.8 million from Main Estimates. This
increase includes additional provision of £55.0 million directly
related to expenditure on humanitarian assistance in the immediate
aftermath of the Asian tsunami. The source of this provision is
partly a transfer of £30 million of previously unallocated
resource from section I of Request for Resources 1. By agreement
with the Treasury DFID holds a contingency reserve of £30
million within our Resource DEL until late in the financial year.
In 2004-05 we were able to allocate this provision for humanitarian
assistance for victims of the tsunami as announced by the Secretary
of State for International Development on 30 December 2004. The
remaining £25 million is an agreed claim on the Treasury
DEL reserve and represents the remainder of the £75 million
for the immediate humanitarian response announced to Parliament
by the Prime Minister on 10 January 2005.
20. A related increase in provision in Section D is the
£0.800 million for the draw down of administration costs
End Year Flexibility. DFID has had to deal with a number of major
humanitarian emergencies in 2004-05, including the Darfur conflict
and hurricane damage in the Caribbean as well as the Asian earthquake
and tsunami. Spending on administration by the conflict and humanitarian
assistance department has been higher than planned at Main Estimates.
Administration costs End Year Flexibility will meet the shortfall
between the original budget and the expected level of expenditure.
21. The balance of the increase in resource provision
derives from a transfer of £60.0million from section E of
Request for Resources 1. The transfer moves funds originally earmarked
for the support of policy innovation to programmes designed to
increase the effectiveness of multilateral aid. DFID funds a large
number of multilateral aid organisations and the provision included
in Main Estimates understated the level of contributions that
we are required to make this year.
22. The level of Non Operating Appropriations in Aid
in Section D has been increased by £3.897 million. This reflects
increased forecasts for multilateral loan repayments, particularly
for loans made via the European Investment Bank. The increased
Appropriations in this section offset increased capital expenditure
in sections A, B, C, and G of Request for Resources 1.
Section E—Developing Innovative Approaches to Development
23. There is a reduction of £70.0 million in the
gross and net provision in this section relating to programme
resource grants transfers to sections C and D. The transfers are
discussed in paragraphs 13 and 21 above.
Section F—Programmes Contributing to Multiple Objectives
24. The overall change in gross and net provision in
this section is an increase of £20.9 million. This consists
of a draw down of £54.532 million of programme resource and
£0.9 million of administration costs End Year Flexibility,
a transfer of £0.468 million of programme resource from Section
H, partly offset by a transfer of £35.000 million to Section
L.
25. The £55.000 million of additional programme
resource grants included in section F supports additional planned
spending on programmes contributing to multiple objectives, that
was not reflected in Main Estimates. Decisions have been taken
to increase spending on a number of centrally managed programmes.
These include the funding of partnership programme agreements
with UK civil society organisations and the central research programme.
The allocation of £0.9 million of administration costs End
Year Flexibility to section F relates to the establishment of
a central research department within DFID during 2004-5. The unit
has been set up to give a stronger focus to research and to enhance
the quality of the research we commission. The new unit is incurring
consultancy costs on renewable natural resources and infrastructure
research that were not planned at Main Estimates.
26. The transfer of £35.0 million of other current
provision out of section F to the new section L within Request
for Resources 1 relates to the reclassification of the cost of
capital charge on the department's investment in CDC Group from
the DEL to Annually Managed Expenditure (AME). Further details
are given under section L.
27. The changes in the capital totals within Section
F since Main Estimates are an increase in the gross provision
of £3.827 million, arising from a draw down of capital End
Year Flexibility and an increase in Appropriations of £1.800
million.
28. A total of £1.677 million within the End Year
Flexibility draw down has been allocated to a purchase of a minority
shareholding in Actis Capital LLP (Actis); the limited liability
partnership formed to take over the investment management activities
conducted by CDC Group prior to July 2004. The reorganisation
of CDC Group, announced by the Secretary of State for International
Development in a written statement on 12 July 2004, is designed
to enhance the group's capacity to mobilise private and other
third-party capital for investment in the poorer developing countries,
by separating responsibilities for asset holding and investment
policy from the management of investments. Actis has a five-year
contract to manage CDC's existing investments. The stated purpose
of Actis is to manage investments so as to promote the creation
and growth of viable businesses in poorer countries, to mobilise
private and other third-party investment, and to add value to
businesses in which investments are made by promoting responsible
business practices and providing management advice.
29. As negotiations to set up Actis were not concluded
by Main Estimates, provision for the acquisition of equity was
not included in that Estimate.
30. The remaining £2.15 million of capital End Year
Flexibility allocated to section F will support additional capital
expenditure on improvements to management information and financial
systems. DFID is investing heavily in new systems to improve efficiency
and free up staff time to allow for concentration on the delivery
of the Public Service Agreement targets. The planned improvements
are major capital projects and with all such projects there is
a degree of uncertainty over the pattern of spend. The sum of
£2.15 million is attributable to Aries project, which covers
DFID's financial and performance management systems, and recognises
that we will spend more on the project this year than expected
at Main Estimates.
31. The increase in Appropriations relates to the repayment
of loans that DFID took over from CDC Group. The income has been
identified since Main Estimates.
Section G—Central Departments
32. The gross provision within this section increases
by £6.122 million and the net provision by £5.772 million.
Most of the increase in gross provision, £5.748 million,
relates to the draw down of administration costs End Year Flexibility.
The main elements within the additional provision are IT support
costsrelated to DFID's investment in improvements to management
information systems, significant training costs to be incurred
in training staff in the use of new systems, the costs of staff
early retirements, and higher forecasts for impairments.
33. A small increase in provision within section G relates
to an interdepartmental transfer of £0.024 million from the
Cabinet Office. This is a contribution to the costs of DFID use
of the Parliamentary Counsel's Office.
34. There is a change in the gross and net capital provision
in section G of £2.261 million. This represents an allocation
of Capital End Year Flexibility to support additional expenditure
on improvements to information systems. DFID is devoting considerable
resources to the enhancement of our corporate and network IT infrastructure
to improve efficiency and free up staff time to allow them to
concentrate on delivery of the Public Service Agreement targets.
Spending on enhancement projects has proved to be higher than
allowed for in Main Estimates. The draw down of End Year Flexibility
recognises the need for additional capital provision within the
Estimate.
Section H—Certain beneficiaries of the Gibraltar Social
Insurance Fund
35. The gross and net provision within this section has
been reduced by £1.0 million from the Main Estimates total.
Savings have been reallocated to sections A and F of Request for
Resources 1 as described in paragraphs 4 and 24 above.
36. The reduction in provision reflects a lower forecast
for payments to beneficiaries of the Gibraltar Social Insurance
Fund than that made at Main Estimates.
Section I—Unallocated
37. Provision against this section is now nil following
the allocation of the department's contingency reserve to humanitarian
assistance programmes in the aftermath of the Asian earthquake
and tsunami.
Section L—Programmes Contributing to Multiple Objectives
(AME)
38. A new section has been created to make provision
for the cost of capital charge on the department's investment
in CDC Group in Annually Managed Expenditure.
An agreement was reached with the Treasury early in 2004-05
that CDC Group should be classified as a self- financing public
corporation for public expenditure purposes; it had previously
been treated as an ordinary public corporation in Treasury budget
aggregates. The reclassification of CDC Group automatically moved
the cost of capital charge from the DFID DEL to AME.
39. The provision within Section L consists partly of
a transfer of £35.0 million transfer from Section F equivalent
to the cost of capital charge charged on the investment prior
to the reclassification of the costs from DEL and AME. The remainder
of the provision, £20.305 million, is required because the
cost of capital charge is now being calculated at a higher rate,
5% rather 3.5%, in line with the rate of return that CDC Group
is required to make on capital employed.
Section M—EU Research Grants (Net)
40. A token net section and subhead has been created
for research grants being received from the European Union for
onward disbursement to third parties. These transactions are being
brought to Parliament's attention as required by Government Accounting,
Chapter 19.
Request for Resources 2: Conflict Prevention
Section A—Africa Conflict Prevention
41. The gross and net provision against this section
has been reduced by £1.038 million as a consequence of a
transfer to the Foreign and Commonwealth Office. The Africa Conflict
Prevention Pool is a cross government programme involving DFID,
the Foreign and Commonwealth Office, and the Ministry of Defence.
Budget provision is ring-fenced within DFID's DEL as part of Spending
Review settlements. Funds are allocated to the three departments
at the beginning of the year on the basis of Ministerial decisions
about priorities for conflict prevention. Where new requirements
arise in year the funds are usually found from unallocated provision
or the draw down of End Year Flexibility. In 2004-05, the Foreign
and Commonwealth Office requires significant additional funds
above those transferred at Main Estimates, particularly to support
conflict prevention work relating to the emergency in Sudan. Their
requirement exceeded the funds available, after allowance was
made for a smaller transfer of funds to the Ministry of Defence.
A review of DFID's programmes identified a small amount of savings
against the Main Estimates provision and these savings are being
transferred to the Foreign and Commonwealth Office in the Supplementary
Estimate.
Section B—Global Conflict Prevention
42. The gross and net provision against this section
has been increased by £6.500 million as a consequence of
a transfer from the Foreign and Commonwealth Office to support
planned programme activity by DFID on global conflict prevention.
The budget for the cross government Global Conflict Prevention
Pool is held by the Foreign and Commonwealth Office, and additional
funds are transferred to DFID at Supplementary Estimates for Pool
projects approved in year where provision was not included in
Main Estimates.
Section C—Post -Conflict Reconstruction Unit
43. Provision of £0.600 million for administration
costs, £1.560 million for programme grants, and £0.440
million for capital has been made in this new section. All of
the provision derives from a draw down of End Year Flexibility.
44. The intention to establish a cross government unit
to improve the United Kingdom's capacity to deal with immediate
post conflict stabilisation was announced by the Secretary of
State for International Development in a written statement on
16 September 2004. The new unit is incurring costs during the
latter part of 2004-05 as it moves towards becoming fully operationalin
the Spring of 2005.
45. The provision included in the Supplementary Estimate
supports the staffing of the Post-Conflict Reconstruction Unit
on a part-year basis, the initial purchase of equipment to support
the unit's operations, and the acquisition of specialised information
technology equipment to allow the unit to communicate securely
with partners in the Ministry of Defence and the Foreign and Commonwealth
Office.
Net Cash Requirement
46. The additional cash sought in the Supplementary Estimate
is £62.4 million less than the combined increase sought for
resource and capital provision. This difference is a consequence
of significant changes in the detail of the Resource tocash reconciliation
since Main Estimates.
47. The key change relates to the classification of promissory
notes deposited with international financial institutions. At
Main Estimates the deposit of a promissory note, which is a commitment
to make a payment, were included in the Estimate as provisions.
The Estimate also recorded cash payments made against the promissory
note as the use of the provisions. It has now been agreed with
the Treasury that promissory notes should be classified as creditors
not provisions. The movement in the deposit and payments of promissory
notes are now included in the increase/decrease in creditors total,
and the figures for provisions and use of provisions relate solely
to identified new provisions and cash paid out against historic
provisions.
Forecast Operating Cost Statement
48. This now excludes the £607.5 million of non-voted
expenditure for European Union budget spending on attributed aid.
Although this charges against the DFID DEL it does not form part
of the department's operating costs reported in the resource account.
Notes to the Estimate
49. Additional notes are included on Contingent Liabilities
and International Subscriptions. These notes were mistakenly omitted
from Main Estimates.
IMPACT ON
THE DEPARTMENT'S
PUBLIC SERVICE
AGREEMENT
50. A full report on progress against DFID's Public Service
Agreement targets was given in the 2004 Autumn Performance Report.
51. The report confirmed that the off track targets for
key countries in Africa were: the ratio of girls to boys primary
school enrollment; under five mortality rates; and births assisted
by skilled birth attendants. Ethiopia's low baseline for the primary
school enrolment ratio and its lowest rate in the world for births
assisted by skilled birth attendants were referred to in the performance
report. Reference was also made to Sierra Leone having the highest
under-five mortality rate in the world. Development programmes
for both of these countries have been increased this year as discussed
in paragraph 5.
52. Africa programmes are receiving £67.0 million
or 45% of the additional resource provision in the Supplementary
Estimate that derives from the draw down of End Year Flexibility.
This additional provision will contribute to the delivery of the
PSA targets for Africa.
53. The autumn performance report said that two of the nine
targets for the four key countries in Asia were off track or that
it was too early to say. The need for progress to be made in Pakistan
on gross primary school enrolment, ratio of girls to boys enrolment,
the under-five mortality rate, and the proportion of births assisted
by skilled birth attendants was highlighted. The budget for development
programmes in Pakistan has been increased as discussed in paragraph
9.
54. Asia programmes are receiving 20.0 million or 20%
of the additional resource provision in the Supplementary Estimate
that derives from the draw down of End Year Flexibility. All of
this additional provision will contribute to the delivery of the
PSA targets for Asia.
55. In the autumn performance report it was stated that
most of the targets to improve the effectiveness of the international
system were on target to be met. Much of the additional provision
included in Section D of Request for Resources 1 is linked to
humanitarian assistance following the Asian tsunami and has no
direct link to a PSA target. However, we have moved £60 million
of provision within the Estimate to support increased contributions
to multilateral organisations. This increase in provision is consistent
with what we have said in the performance report about the effectiveness
of these organisations.
56. The fifth PSA target for DFID includes an increase
in the proportion of DFID's bilateral programme going to low-income
countries to 90%. In the autumn performance report we said that
we had made provision to reach the target by 2006.
57. Much of the increase in programme provision included
in the Supplementary Estimate supports the move towards the low-income
countries target; particularly the additional resources allocated
to sub-Saharan Africa country programmes and most of the additional
resources allocated to Asia country programmes. Departmental Expenditure
Limit
58. The Supplementary Estimate will increase the DFID
Resource DEL to £3,901,268,000 and the Capital DEL to £40,258,000.
The table shows a comparison with the 2003-04 outturn and the
expected DELs for 2005-06 to 2007-08.
| | |
| | £,000s |
| 2003-04 | 2004-05
| 2005-06 | 2006-07
| 2007-08 |
| Resource DEL | 3,792,970 |
3,901,268 | 4,473,044 | 4,995,000
| 5,289,000 |
| Capital DEL | 27,343 | 40,258
| 30,000 | 20,000 | 22,000
|
| Depreciation* | -14,617 | -20,000
| -22,000 | -22,000 | -22,000
|
| Total | 3,805,696 | 3,921,796
| 4,481,044 | 4,993,000 | 5,289,000
|
| *Depreciation, which forms part of resource DEL is excluded from total DEL, since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.
| | | |
| |
| |
| | | |
59. The outturn on the Resource DEL for 2003-04 of £3,792,970,000
was against a final provision of £3,936,037,000. This represented
an underspend of £143,067,000 equivalent to 3.63% of the
DEL. After allowing for prior period adjustments, the underspend
against the voted element of the Resource DEL in 2003-04 was £104,707,000
or 3.4% of the provision voted in the Spring Supplementary Estimate
for that year. The underspend on the non-voted element of the
Resource DEL was £4,355,000 or approximately 0.5% of the
provision.
60. The outturn on the Capital DEL for 2003-04 of £27,343,000
was against a final provision of £39,000,000. The outturn
on the voted element of the Capital DEL was in line with the Estimates
provision. The underspend is attributable solely to excess Appropriations
which were surrendered as Consolidated Fund Extra Receipts (CFERs),
but which are treated as negative DEL for public expenditure control
purposes.
61. The Department did not submit a Winter Supplementary
Estimate in 2004-05 and all of the DEL changes are being announced
with the Spring Supplementary Estimate.
DEL END YEAR
FLEXIBILITY
62. The 2003-04 End Year Flexibility for DFID reported
in the Public Expenditure Provisional Outturn White Paper (Cm
6293) was:
| Other Resource DEL | £167.982 million
|
| Administration Costs | £18.696 million
|
| Capital DEL | £0.454 million
|
| |
63. This End Year Flexibility was accumulated mainly
from underspends against 2003-04 voted provision; but £70.0
million relates to a 2002-03 underspend on the non-voted provision
for European Union spending on attributed aid. The underspend
on this part of the DEL is not confirmed until the European Union
accounts are audited and any End Year Flexibility becomes available
one year later than that earned from DFID's voted programmes.
64. The Other Resource DEL figure breaks down between
DFID programmes and the ring-fenced Conflict Pools as follows:
| DFID Main Programmes | £159.166 million
|
| Africa Conflict Prevention Pool | £7.433 million
|
| Global Conflict Prevention Pool | £1.383 million
|
| |
65. All of the Capital End Year Flexibility has been
drawn down in the Supplementary Estimate. Additionally, £6.528
million of Other Resource DEL End Year Flexibility has been drawn
down, and with Treasury agreement to virement, has been included
in the Capital DEL. The use of this provision is discussed in
the detailed analysis part of the memorandum.
66. The remaining £153.092 million of Other Resource
DEL has been drawn down andallocated to DFID programmes in Requests
for Resources 1 and 2. Full details of the use of the provision
are given in the detailed analysis part of the memorandum.
67. A total of £10.0 million of administration costs
End Year Flexibility has been drawn down and allocated as discussed
in the detailed analysis part of the memorandum. The remaining
£8.7 million has been set aside for use in future years.
It is expected to be used to support efficiency programmes and
one off costs associated with restructuring of parts of the department.
68. The full amount of End Year Flexibility reported
for the Africa Conflict Prevention Pool has been drawn down. The
full provision has been transferred to the Foreignand Commonwealth
Office to support additional conflict prevention work by that
department; particularly in relation to the emergency in the Sudan.
69. The budget for the Global Conflict Prevention Pool
is managed by the Foreign and Commonwealth Office who are responsible
for decisions on the draw down of End Year Flexibility earned
by the Pool.
ADMINISTRATION COSTS
LIMIT
70. The Supplementary Estimate will increase the administration
costs limit to £232,024,000. A comparison with the 2003-04
outturn and the expected administration costs budgets for 2005-06
to 2007-08 is given in the table.
| | |
| | £,000s
|
| 2003-04 | 2004-05
| 2005-06 | 2006-07
| 2007-08 |
| Administration Costs Limit1 | 195,955
| 232,024 | 239,000 | 235,000
| 232,000 |
| 1. Following a change to administration costs control regime administration costs limit are known as net administration budgets from 2005-06 onwards.
| | | |
| |
| |
| | | |
71. The outturn against the administration costs limit
for 2003-04 was £18,861,000 below the final provision of
£214,816,000. This represents a percentage underspend of
8.8%.
Richard Calvert
Director of Finance and Corporate Performance
| 
