Further supplementary written evidence
submitted by the Department for International Development
Running costs are to be reduced to 2% by 2014-15.
Is the NAO right that on a comparable basis running costs are
currently 2.6% of the total budget?
Yes, Total Operating Costs are currently £128
million core admin + £72 million PFA totalling £200
million against programme spend of c £7.5 billion which equate
to 2.6%.
Is the NAO right that given the increase in the
total budget running costs will increase by 6% over the period
(I assume Spending Review?)?
Yes, DFIDs running costs of £200 million would
increase to £219 million if only inflation applied over the
SR period. The Total Operating Costs agreed in SR10 of £233
million in 2014-15 equates to real growth of 6%.
Core administration costs are currently £128
million and are expected to fall to £94 million. Can we have
a breakdown of the £128 million and how each of the main
items is expected to decline (to make the savings of£34 million
in real terms)
The breakdown of the £128 million is as follows:
| Employee Costs | £76 million
|
| Property Costs | £24 million
|
| Comms & IT | £6 million
|
| Consultancy, service & supply | £8 million
|
| Staff Training, Travel | £12 million
|
| Other admin Costs | £2 million
|
| Total | £128 million
|
Organisational Units across DFID will be preparing Operational
Plans for the SR period in early 2011. These plans will set out
how the department will meet the reductions in administrative
costs. There are already a number of plans in place to achieve
significant reductions, notably on against consultancy, increased
income from property and further rationalisation and systems improvements
in the corporate support functions. Further details of these plans
will be available in 2011.
14 December 2010
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