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III.
Budget Results -
Fourth Quarter 2004
Significant
Spending Variances by Major Expense Category1
Ongoing Operations
- Outside
Services-Personnel expenditures were $6.8 million, or 5 percent,
less than budgeted. This variance was largely attributable
to information technology planning and development delays,
system enhancement cancellations, and lower-than-anticipated
contractor labor rates for IT infrastructure operational services.
- Travel
expenditures were $5.0 million, or 11 percent, less than budgeted.
The majority of this variance was in the Division of Supervision
and Consumer Protection and was attributable to unused travel
funds resulting from vacant positions, higher-than-anticipated
leave taken in the summer, and changes in travel patterns. Additionally,
spending for reassignment travel was lower than anticipated.
- Building
expenditures were $5.1 million, or 6 percent, less than budgeted,
primarily due to delays in spending approximately $2.9 million
for capital improvements that were not completed in 2004 and
$2.2 million for major repair projects that experienced contracting
delays.
-
Equipment expenditures were $4.3 million, or 10 percent,
less than budgeted, primarily due to lower-than-budgeted unit costs
for personal computers purchased for the Office of Inspector General
($1.3 million), and another $1.3 million ordered in 2004 but received
in early January 2005.
- Outside Services - Other expenditures were $1.3 million,
or 10 percent, greater than budgeted due to the unanticipated costs
of revising and reprinting insurance brochures and the printing
and mailing of financial institution letters that were originally
expected to be distributed electronically.
- Other Expenses were $1.8 million, or 16 percent, less
than budgeted largely due to reduced spending for off-site conferences
and occupational training in the Division of Supervision and Consumer
Protection.
Receivership Funding
- Salary and Compensation expenditures for overtime
were $3.4 million, or 91 percent, less than budgeted, primarily
due to less resolution activity than budgeted during the year.
- Outside
Services-Personnel expenditures were $45.7 million, or 74 percent,
less than budgeted, primarily due to less resolution activity
than budgeted during the year.
- Travel
expenditures were $4.9 million, or 89 percent, less than budgeted,
primarily due to less resolution activity than budgeted during
the year.
- Buildings
expenditures were $1.5 million, or 83 percent, less than budgeted,
primarily due to less resolution activity
than budgeted during the year.
Significant
Spending Variances by Division/Office2
- The
Division of Resolutions and Receiverships spent $48.7 million,
or 37 percent, less than budgeted. This was largely the result
of contractual service expenses in the Receivership Funding portion
of its budget that were $39.8 million lower than were budgeted
due to significantly less resolution activity workload than was
anticipated.
- The
Division of Information Resources Management spent $15.5 million,
or 7 percent, less than budgeted, primarily due to lower than
budgeted spending for “Equipment and Outside Services – Personnel.” Equipment
purchases for the infrastructure modernization investment project
and software maintenance and equipment expenditures in the Ongoing
Operations component of the budget were made more slowly than
anticipated. Lower than anticipated contractor labor rates and
reductions arising from contractor turnover without replacements
also contributed to this variance.
- The
Legal Division spent $9.5 million, or 10 percent, less than budgeted.
This was largely the result of contractual service expenses in
the Receivership Funding portion of its budget that were $5.5
million lower than budgeted due to significantly less resolution
activity than was budgeted for during the year. Approximately
$3.0 million of the variance was attributable to vacant authorized
positions that were budgeted, but not filled in a timely manner.
- The
Division of Insurance and Research spent $9.4 million, or 23
percent, less than budgeted. This was largely the result of slower
than anticipated spending for contractor costs associated with
the development of the Central Data Repository (CDR) and extended
vacancies in budgeted positions during the year.
- The
Corporate University spent $1.9 million, or 15 percent, less
than budgeted. This was largely the result of the reprioritizing
and rescheduling of various projects and extended vacancies in
budgeted positions during the year.
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1Significant
Spending Variances for the twelve months ending December 31, 2004,
are defined as those that exceed the annual budget or those that
are under the authorized budget by more than $1 million and represent
more than 3 percent of that budget.
2Information
on division/office variances reflects variances in both the Corporate
Operating and Investment portions of the budget.
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