Annual Report 2007-08 - the Parliamentary and Health Service ...

Financial reviewPHSO’s net operating cost for 2007-08was £24,345,000, comprising expenditureof £24,785,000 spent in carrying out itsactivities offset by operating incomeof £440,000. Excluding £93,000 of incomethat must be surrendered to theExchequer and £186,000 funding fromthe Consolidated Fund for the salaryand on-costs of the Ombudsman, PHSO’snet total resource requirement for theyear was £24,252,000, which was anunderspend of £174,000 (0.7%) of PHSO’s2007-08 funding as approved by Parliament.This underspend was within our internaltargets of not exceeding our total netresource expenditure sanctioned byParliament and limiting any underspend toless than £500,000.Capital investment expenditure forthe year was £1,338,000, mainly utilisedon completing our accommodationrefurbishment project. Our netunderspend of £199,000 met ourtarget of not exceeding our totalcapital investment sanctioned byParliament (£1,537,000). However, itexceeded our internal target of limitingany underspend to less than £100,000.This was due to a decision to deferreplacement of IT hardware.PHSO’s reserves have increased by£21,000, which mainly reflects the increasein the gross value of the asset base as aresult of the capitalisation of the costsof our accommodation refurbishmentproject, net of related depreciation.88