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plan & budget 2004/05 for the year ending 31 March 2005 - budget 2004/05

6.1 introduction

We expect our income in 2004/05 to be £43.0m, 4% greater than in 2003/04. Further analysis is given in chapter 7. Expenditure at £44.9m will be 14% higher than in the current year, reflecting the full annual cost of staff recruited in 2003/04, increased cost of telephone, postage, photocopying, paper etc, increased IT costs, and additional accommodation. We have leased an extra half floor at our premises at South Quay Plaza but - because of the very depressed state of the commercial property market - we have been able to obtain this at a rent below the level we originally negotiated four years ago for other floors in the building.

6.2 capital expenditure

Capital expenditure of £1.2m is planned for 2004/05. This consists of £0.5m for IT hardware purchases, £0.5m for software development, and £0.2m for building improvements.

6.3 summary of income/expenditure

budget 2003/04 £m
forecast 2003/04 £m
budget 2004/05 £m
income
34.6
41.3
43.0
staff and staff-related costs
24.4
29.2
34.9
professional fees
0.4
0.4
0.4
IT costs
1.4
1.5
1.5
premises and facilities
4.2
4.7
5.1
other costs
0.5
0.4
0.4
depreciation
3.2
3.0
2.3
operating costs
34.1
39.2
44.6
financing costs
0.6
0.3
0.3
total costs
34.7
39.5
44.9
surplus (deficit)
(0.1)
1.8
(1.9)
cases resolved
63,000
80,000
88,000
unit cost
£541
£489
£507

6.4 staff numbers

The full-time equivalent headcount is expected to reach 768 by April 2004. Recruitment will be predominantly in the casework divisions, to help deal with the increasing workload and to reduce the level of work-in-progress.

budget 2003/04
forecast 2003/04
budget 2004/05
casework divisions and ombudsmen
408
586
580
customer contact division
93
96
96
external liaison/publications
18
18
18
knowledge management and information
12
12
12
support services
53
56
57
total
584
768
763