Memorandum for the Foreign Affairs Committee:
Foreign and Commonwealth Office Winter Supplementary Estimate
2005-06
SUMMARY OF
CHANGES
1. The 2005-06 Winter Supplementary Estimate
for the Foreign & Commonwealth Office (FCO) provides for changes
arising from a number of transfers to and from other government
departments. These are reflected in changes to the Departmental
Expenditure Limit and the Administration Budget. There are no
changes to the FCO's Capital budget.
DETAILED EXPLANATION
OF CHANGES
2. Table 1 lists the individual changes
included in the Winter Supplementary Estimate. The changes are
shown in descending value within each category. All changes affect
the Departmental Expenditure Limit (DEL).
Table 1
DETAILED EXPLANATION OF CHANGES
| Amount (£m)
| Description |
Transfers from Other Government Departments
RfR1
| |
| 7.985 | Transfer to Section A3 (grants) from the Department for International Development (DfID) for transfer of responsibility for the Small Grants Scheme. This is a baseline change that carries through to 2006-07 and 2007-08. From 2006-07 onwards these funds will form part of the FCO's bilateral programme budget.
|
| 1.000 | Transfer to Section A2 (other current) from the Home Office for funding of the Afghan Delivery Plan.
|
RfR2
12.000 | Transfer to Section C3 (grants) from DfID from the Conflict Prevention Pool for Africa Peacekeeping activity.
|
| 0.150 | Transfer to Section B3 (grants) from DfID for funding of the Caucasus Conflict Prevention Projects.
|
| 21.135 | Change to Resource DEL
|
Transfers to Other Government Departments
RfR1
-3.588
| Transfer from Section A2 (other current) to the SIA for planned programme activity.
|
| -1.400 | Transfer from Section A1 (administration) to the SIA for language training.
|
RfR2
-0.100 | Transfer from Section A3 (grants) to the SIA for funding revisions in conflict prevention activity.
|
| -5.088 | Change to Resource DEL
|
Increase in gross spending offset by Appropriations in Aid
RfR1
1.400
| Increase in administration provision for language provision (Section A1 administration).
|
| -1.400 | Offset by increased income from SIA for language training (Section 5 A in A)—see transfer to other government departments above.
|
| 0.000 | Change to Resource DEL
|
| 16.047 | Net total change to Resource DEL
|
| |
DEPARTMENTAL EXPENDITURE
LIMIT (DEL) AND
ADMINISTRATION BUDGETS
3. The tables below shows the effect of changes to the
FCO's DEL (Table 2); and a comparison of the 2005-06 DEL (Table
3) and Administration (Table 4) budgets with the 2003-04 outturn,
2004-05 forecast outturn and plans for 2006-07 and 2007-08.
Table 2
CHANGES TO DEPARTMENTAL EXPENDITURE LIMIT IN 2005-06
| 2005-06 |
| 2006-07 |
| 2007-08 | |
| | | |
| Voted | Non-Voted
| Total DEL | Total DEL
| Total DEL |
Resource1
Main Estimate Figure |
1,760.770 | 52.713 | 1,813.483
| 1,683.660 | 1,720.660 |
| Winter Supplementary Change | 16.047
| 0.000 | 16.047 | 7.985
| 7.985 |
| Current Resource DEL1 | 1,776.817
| 52.713 | 1,829.530 | 1,691.645
| 1,728.645 |
Capital
Main Estimate Figure |
121.978 | 1.000 | 122.978
| 111.203 | 109.203 |
| Winter Supplementary Change | -
| - | - | - |
- |
| Current Capital DEL | 121.978
| 1.000 | 122.978 | 111.203
| 109.203 |
| Less depreciation at start of year |
113.624 | 20.000 |
133.624 | 168.624 |
184.624 |
| Winter Supplementary Change | -
| - | - | -
| - |
| Current depreciation 2 | 113.624
| 20.000 | 133.624
| 168.624 | 184.624
|
Total Departmental
Expenditure Limit
| 1,785.171 | 33.713 | 1,818.884
| 1,634.224 | 1,653.224 |
| | |
| | |
Table 3
DEL COMPARISON (£m)
| 2003-04 | 2004-05
| 2005-06 | 2006-07
| 2007-08 |
| Actual | Forecast
| Budget | Plan |
Plan |
| Resource DEL1 | 1,585.188 |
1,786.890 | 1,829.530 | 1,691.645
| 1,728.645 |
| Capital DEL | 49.821 | 77.533
| 122.978 | 111.203 | 109.203
|
Less:
Depreciation 2 |
-103.538 | -111.218
| -133.624 | -168.624
| -184.624 |
| Total | 1,531.471 | 1,753.205
| 1,818.884 | 1,634.224 | 1,653.224
|
1 Resource DEL figures for 2006-07 and 2007-08 are understated
because they do not include conflict prevention expenditure, which
will be transferred at the time of the 2006-07 and 2007-08 Main
and Supplementary Estimates.
2 Depreciation, which forms part of Resource DEL, is excluded
from the total DEL, since Capital DEL includes the purchase cost
of capital assets. To add on the depreciation of those assets
would double count their cost.
Table 4
ADMINISTRATION BUDGET COMPARISON (£m)
| 2003-04 | 2004-05
| 2005-06 | 2006-07
| 2007-08 |
| Actual | Forecast
| Budget | Plan |
Plan |
| | |
| | |
| Administration Budget | 745.715
| 741.855 | 796.238 | 827.068
| 833.068 |
DEPARTMENTAL UNALLOCATED
PROVISION (DUP) 2005-06
4. There is no change to the Departmental Unallocated
Provision set out in the memorandum that accompanied the 2005-06
Main Estimate. For RfR1 there is a £16 million resource DUP
and £1 million capital DUP to meet unforeseen requirements
arising in-year. There is also a ringfenced non-cash DUP of £20
million to meet costs relating to the impairment of fixed assets.
For RfR2 there is £10 million of DUP remaining for the Global
Conflict Prevention Pool global programme expenditure.
5. The FCO is currently reviewing whether to draw down
these unallocated provisions in the Spring Supplementary.
END YEAR
FLEXIBILITY (EYF)
6. The Public Expenditure Outturn White Paper published
in July 2005 showed a total figure of £111.991 million for
carry forward of 2004-05 DEL underspending into 2005-06 under
the DEL EYF scheme. Table 5 below shows how this figure was made
up from a mixture of adjustment for 2003-04 final outturn, forecast
2004-05 underspend and unused Departmental Unallocated Provision.
7. The FCO is currently reviewing whether to request
take up of any of this end year flexibility requirement in the
Spring Supplementary.
Table 5
ACCUMULATION OF EYF in 2004-05 (£m)
| Administration |
Programme | Capital
| Total |
RfR1
Adjustment for 2003-04 final outturn
| (6.306) | - | 5.297
| (1.009) |
| Forecast voted underspend 2004-056 | 30.000
| - | 25.000 | 55.000
|
Ringfenced Impairments DUP 2004-05
not used
| 20.000 | - | -
| 20.000 |
| FCO Core DUP 2004-05 not used | 8.000
| 3.000 | 1.000 | 12.000
|
| RfR2 | - | 26.000
| - | 26.000 |
| Total FCO EYF in PEOWP | 51.694
| 29.000 | 31.297 | 111.991
|
6 An adjustment to reflect final outturn will be made in the 2005-06 EYF exercise.
| | | |
|
IMPACT ON
PSA TARGETS
8. Changes to the FCO's budget provision relate to planned
activity and so will not impact our public service agreements.
D R Todd
Director Finance
November 2005
|
