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Volume 2.4Central Function CostsSector-Wide and Detailed Statistics Report

February 2014

Finance Count 2014Third Sector Financial Management Benchmarking

Finance Count 2014 Third Sector Financial Management Benchmarking Volume 2.4 – Central Function Costs

Sector-Wide and Detailed Statistics Report February 2014

Copyright in this publication is protected under the Copyright Designs and Patents Act 1988 (as amended from time to time) and is owned by Agenda Consulting Ltd. Neither the whole nor any part of this survey may be copied, reproduced, distributed or transmitted to a third party by any means whatsoever without first obtaining our consent in writing. Extracts from this publication may only be used or quoted with our prior permission (which is at our sole discretion) and provided we are fully credited. Disclaimer: This publication should not be relied upon as a substitute for specific advice concerning your organisation. Agenda Consulting Ltd accept no responsibility for any consequences and/or for any loss occasioned to your organisation (whether directly or indirectly) as a result of any person acting or refraining from acting as a result of any statement or opinion contained in this publication.

© Agenda Consulting 2014

Finance Count Third Sector 2014, Volume 2.4 Central Function Costs © Agenda Consulting 1

FOREWORD As charities continue to adapt to the “new normal” of the current challenging economic environment with its increasing pressures to do more with less, efficient and effective management of resources and finances is more important than ever. Finance Count offers the opportunity to compare your finance function with that of your peers. We hope that this study will give participating teams the knowledge and confidence to continue to develop their organisations and identify new areas for efficiencies and improvements, making them more sustainable in the long-term. These findings will give valuable insight into administrative processes and strategic decisions that have been taken around resources, pensions, outsourcing, business development, and working effectively with other teams. The results show that there are significant differences in performance between participants. This should give charities pause for thought on how well they are faring in some areas and what they might do to improve on measures where results are less favourable. The data from this survey is not necessarily representative of the sector nor of CFG members. However, we do believe that it will help you to review your finance function by learning from other organisations. We hope some will find useful insights in these results. Others will find reassurance that you’re on the right track. We hope that it will provide perspective for your resources planning and a better backdrop for the conversations you have with senior colleagues and trustees as you look for ways to continue to develop and improve. Caron Bradshaw

Chief Executive Officer, Charity Finance Group

Finance Count Third Sector 2014, Volume 2.4 Central Function Costs © Agenda Consulting

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CONTENTS

FOREWORD ........................................................................................................................................... 1

1 INTRODUCTION .................................................................................................................................. 3

2 WHY NOT PARTICIPATE IN FINANCE COUNT? ............................................................................... 4

3 KEY FINDINGS .................................................................................................................................... 5

3.1 CENTRAL FUNCTION COSTS ..................................................................................................... 5

3.2 GOOD PRACTICE ....................................................................................................................... 10

4 STATISTICS TABLES ........................................................................................................................ 11

4.1 GENERAL INFORMATION .......................................................................................................... 12

4.2 CENTRAL FUNCTION COSTS ................................................................................................... 25

ANNEX A: DEFINITIONS OF MEASURES ........................................................................................... 35

ANNEX B: METHODOLOGY AND SAMPLE ......................................................................................... 37


1 INTRODUCTION Finance Count 2014 This report – Finance Count 2014: Volume 2.4 Central Function Costs – is based on findings from the Finance Count 2014 Benchmarking Study. Finance Count is a financial management benchmarking study specifically tailored to the needs of the UK Third Sector. The study involved benchmarking the financial management of 57 medium and large Third Sector organisations in the UK (Annex B sets out the list of participants). The study was undertaken by Agenda Consulting in partnership with the Charity Finance Group, Sayer Vincent and VODG. The aims were to build a picture of financial management in the Third Sector and to support organisations in developing further their financial management policies and practices through enabling organisations to compare their performance with their selected peers and to pinpoint both their strengths and areas for development. Information in the study corresponds to activities and resources in the most recent complete financial year for which organisations have the required information; in most cases, this will be the financial year 2012-2013. This report

This report focuses on measures from the Finance Count 2014 study relating to the finance function. The report is organised into the following chapters:

Chapter 2 – Why Not Participate in Finance Count? describes the benefits of participating in the study as experienced by previous participants

Chapter 3 – Key Findings: sets out the key findings from the study on the topic transaction processing.

Chapter 4 – Statistics Tables: sets out, for each measure, a detailed table broken down by organisation size (income over the year) and sub sector showing lower quartile, median and upper quartile figures.

Annex A – Definitions of Measures: sets out the formulae used to calculate each measure in the report.

Annex B – Methodology and Sample: describes the sample in detail and the way in which we have analysed and presented the data.

Other publications in the Finance Count 2014 study The following publications are also available from our website:

Volume 2.1 – Transaction Processing

Volume 2.2 – Reporting & Control and Decision Support

Volume 2.3 – The Finance Function

Volume 2.5 – Public Service Delivery & Non-Charitable Trading


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2 WHY NOT PARTICIPATE IN FINANCE COUNT? We hope that you find this report valuable and that it provides you with useful benchmarking information against which to compare your own organisation. If so, we encourage your organisation to participate in the Finance Count study in the future, which involves completing the study questionnaire in respect to your own organisation. Participating in the Finance Count Study itself is by far the best way to gain the most benefit, both in the quality and breadth of the information you receive and cost effectiveness. In short, you pay less and get far, far more. By taking part your organisation enjoys a significant number of benefits which are not available to non-participants:

1. Sector Wide Reports – every report containing the sector-wide results from all participants in the study is included.

2. Your Own Organisation Scorecard – a detailed comparison of your organisation’s performance against your chosen peers and the whole sample on all measures in the study.

3. Access to a suite of online tools to examine your performance in more detail and illustrate

your performance graphically.

4. Ability to track your performance over time.

5. One-to-One Telephone Consultation with one of our team to help get the most out of the reports.

6. Access to a Good Practice Zone and Contacts from each organisation to share information

and best practice with others.

7. Invitation to a Training Session providing the opportunity to learn more about using all the reports effectively and to network with colleagues from other participating organisations.

To find out more about the study and how to participate, go to www.agendaconsulting.co.uk/benchmarking/finance_count or contact Brita Benson: Email [email protected] Phone 01865 263720

http://www.agendaconsulting.co.uk/benchmarking/finance_count

mailto:[email protected]


3 KEY FINDINGS

3.1 CENTRAL FUNCTION COSTS In this section, we asked participants about central function costs in five functions:

Finance function

HR function

Information systems/information technology function

Estate management function

CEO’s office. One caveat is that there may be differing definitions of each function. Although we used the following definitions in the guidance notes to the questionnaire, participants may have interpreted these guidelines in different ways.

Finance: anyone with a role pertaining to: financial accounting, management accounting, sales ledger, purchase ledger, income processing, payroll, pensions, taxation, grant and funder reporting, treasury management, investment management, banking relationships, budgeting analysis and support.

HR function: anyone with a role/job title pertaining to: personnel/HR, recruitment, training and

management development, organisation development, compensation and benefits, health and

safety, employee relations, and HR policy.

IS/IT: anyone with a role pertaining to: software development and management, hardware management, support, website maintenance and development.

Estate Management: anyone involved in the provision of building and office accommodation, whether owned or leased including maintenance, repair and security.

CEO’s office: anyone working in the CEO’s office. We identified the following key performance indicators:

Cost of each function as a percentage of total expenditure;

Total cost of the function per organisation employee;

Function employees (FTE) as a percentage of total employees;

Staffing cost per function employee;


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Cost of each function as a percentage of total expenditure

Source: Tables 15.1.1, 15.2.1, 15.3.1, 15.4.1, 15.5.1, Base = 53-56

Key Findings:

The median cost of the finance function as a percentage of total expenditure is 2.4%. This is higher than in 2013 (1.9%).

The median cost of the HR function as a percentage of total expenditure is 4.5%. This is higher than in 2013 (1.4%).

The median cost of the information systems/IT function as a percentage of total expenditure is 1.9%. This is a slight increase since 2013 (1.5%).

The median cost of the estate management function is 1.7% of the total expenditure. This is a slight increase on the 2013 score (1.3%).

The median cost of the CEO’s office as a percentage of total expenditure is 1.8%. This is an increase since 2013 (0.7%).

There is significant variation between the quartiles for all of the functions. This is particularly evident in the HR function; for a quarter of organisations, the HR function costs 2.8% of total expenditure or less, and for a quarter it costs 7.5% or more.

1.7%

2.8%

1.1%

0.6%1.0%

2.4%

4.5%

1.9%1.7% 1.8%

3.9%

7.5%

2.6%

4.0%

2.9%

1.9%

1.4% 1.5%1.3%

0.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Finance function HR function Informationsystems/informationtechnology function

Estate managementfunction

CEO's office

Figure 3.1 Cost of each function as a percentage of total expenditure (%)

Lower Quartile (25%) Median (50%) Upper Quartile (75%) 2013 Median (50%)


Total cost of each function per organisation employee


Key Findings:

At median, the total cost of the finance function per organisation employee is £1,940. This is an increase on the 2013 result (£1,315).

The median total cost of the HR function is £1,299 per organisations employee. This is an increase on the 2013 result (£1,001).

At median, the total cost of the information systems/IT function per organisation employee is £1,577. This is an increase since 2013 (£1,034).

At median, the total cost of the estate management function is £1,604 per organisation employee. This is an increase since 2013 (£828).

The median total cost of the CEO’s office is £1,492 per organisation employee. This is an increase since 21013 (£660).

All the functions have a significant range between the quartiles, particularly the estate management function; for a quarter of organisations, the cost of estate management is £331 or less per organisation employee and for a quarter it is £3,933 or more. This is probably because the scope of this function varies hugely between organisations within the sector.

£1,041

£747£873

£331

£681

£1,940

£1,299

£1,577 £1,604£1,492

£3,690

£2,041

£2,772

£3,933

£3,013

£1,315

£1,001 £1,034£828

£660

£0

£500

£1,000

£1,500

£2,000

£2,500

£3,000

£3,500

£4,000

£4,500


Estate managementfunction

CEO's office

Figure 3.2 Total cost of the function per organisation employee (FTE) (£)



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Employees of each function as a percentage of total employees


Key Findings:

At median, finance function employees make up 4.5% of participant organisations’ total employees (FTE). This is slightly more than 2013 (3.2%). This is more than any other function.

At median, HR function employees make up 2.3% of participant organisations’ total employees (FTE). This is similar to 2013 (1.9%).

At median, IT function employees make up 1.8% of participant organisations’ total employees (FTE). This is similar to 2013 (1.0%).

At median, estate management function employees make up 1.2% of participant organisations’ total employees (FTE). This is comparable to 2013 (1.1%).

At median, CEO’s office employees make up 1.6% of participant organisations total employees

(FTE). This is more than in 2013 (0.7%).

2.8%

1.6%

0.8%0.4%

0.8%

4.5%

2.3%

1.8%

1.2%1.6%

7.5%

2.8%

3.7%

2.8%

3.3%3.2%

1.9%

1.0% 1.1%0.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%


Estate management CEO's office

Figure 3.3 function employees (FTE) as a percentage of total employees (FTE) (%)



Staffing cost per function employee


Key Findings:

At median, the staffing cost of the finance function per finance employee is £35,339. This is

similar to the 2013 result (£34,523).

At median, the staffing cost of the HR function per HR employee is £37,392. This is slightly

higher than the 2013 result (£35,396).

At median, the staffing cost of the IT function per IT employee is £36,832. This is slightly higher

than the 2013 result (£37,721).

At median, the staffing cost of the estate management function per estate management

employee is £33,501. This is slightly higher than the 2013 result (£31,028).

At median, the staffing cost of the CEO’s office per employee is £71,167. This is slightly higher

than the 2013 result (£67,297).

Again, there is significant variation between the quartiles in each function.

£27,828 £31,000 £29,673£26,978

£56,473

£35,339£37,392 £36,832

£33,501

£71,167

£42,963£44,775

£43,264

£40,561

£86,667

£34,523 £35,396 £37,721£31,028

£67,297

£0

£10,000

£20,000

£30,000

£40,000

£50,000

£60,000

£70,000

£80,000

£90,000

Finance HR Informationsystems/informationtechnology function

Estate management CEO's office

Figure 3.4 Staffing cost per function employee (£)



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3.2 GOOD PRACTICE In the study, participating organisations were asked to share any recent examples of good practice. For the open question in this topic, we show:

The written responses from 2014, in full, under the heading ‘2014 participant responses’.

Summaries of good practice based on responses from the 2014 and previous Finance Count studies, under the heading ‘Key points from past studies’.

Responses from the 2014 study have been attributed to each organisation. We encourage participants to make contact with each other to explore good practice further, by using the contact details available in the client area. GOOD PRACTICE IN CENTRAL FUNCTION COSTS (TABLE 15.99) 2014 Participant Responses:

We have established a full cost allocation system to attribute support costs to the main fundraising teams. As part of this process we are moving to a full accrual accounting system, including monthly depreciation.

Weekly Senior Management Team meetings; regular communication with organisation.

We allocate our support costs to other functions of the business based on our workforce (volunteers and staff) being the main cost driver.

Key points from past studies: Allocation of costs:

Consider how you allocate costs across the business, e.g. by number of staff/volunteers in the

function.

Allocate overhead costs for each function as closely as possible to get a true picture of the

costs, without becoming too focussed on the minute detail.

Capture data at departmental level to ensure accurate allocation of future costs.

Review cost allocation monthly.

Correct apportionment of overhead costs to activities/funding streams in order to demonstrate

full cost recovery has been applied.

Investment

Consider investing in systems and processes that support growth without increasing staffing

costs.

Consider investing in tools such as IT which allow people to work more efficiently.

Other

Centralise costs where possible.

Consider best value comparisons on everything more than £3k.


4 STATISTICS TABLES This section sets out the detailed statistics tables for all measures in the Transaction Processing topic

as well as some general information about the sample.

Where the measure is numerical, a standard format has been applied. The columns used are:

Number of responses: this is the number of organisations that answered the question, as not all of the 57 participating organisations answered each question.

10%: this is the value below which 10% of the distribution lies.

Lower Quartile is the value below which 25% of the distribution lies, or, equivalently, above which 75% of the sample lies.

Median is the value below which and above which 50% of the distribution lies.

Upper Quartile is the value below which 75% of the distribution lies, or, equivalently, above which 25% of the sample lies.

90%: this is the value below which 90% of the distribution lies.

Where the measure is multi choice e.g. Yes/No, we have reported the percentage of participants with each answer. The above statistics are calculated for the following rows in each table:

Whole sample: based on the answers from all respondents.

Under £5m: based on the answers from those respondents with an income of less than £5m.

£5m – £10m: based on the answers from those respondents with an income between £5m - £10m.

£10m - £25m: respondents with an income between £10m - £25m.

£25m - £50m: respondents with an income between £25m - £50m.

Over £50m: respondents with an income of more than £50m

Sub-sectors: based on answers from those participants that work in specific sectors. Participants could choose up to three sectors to describe their work.

In some cases, percentages may not add up to 100 due to rounding differences. Measures with fewer than 5 responses are not shown in this report. Similarly, in each table, rows for which there were less than 5 responses have been taken out of this report.


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4.1 GENERAL INFORMATION

1.2 Income of organisation (£millions)

Number of Responses

Lowest (10%)

Lower Quartile (25%)

Median (50%)

Upper Quartile (75%)

Highest (90%)

Whole Sample 57 3.0 5.0 13.5 48.1 99.1

Income

Under £5m 15 1.6 2.3 3.3 4.1 4.6

£5m-£10m 12 5.2 5.6 7.1 8.5 9.4

£10m-£25m 7 13.3 14.9 16.3 20.4 23.1

£25m-£50m 9 28.2 29.4 31.9 39.0 42.0

Over £50m 14 58.7 65.8 97.3 138.3 199.3

Sector

Children/Young People 16 2.2 3.1 5.2 12.9 50.1

Economic/Community development/Employment 6 2.2 3.7 9.0 43.4 75.9

Education/ Training 20 2.5 4.0 6.3 29.8 96.6

Grant making 9 2.8 4.2 29.4 70.1 307.1

Health care/Medical research 17 3.0 6.3 9.8 39.0 80.6

Housing 10 4.1 5.1 7.3 36.5 67.9

International development 9 7.7 16.3 25.6 66.4 120.3

People with disabilities 8 4.0 8.3 26.6 35.5 60.2

Social care 11 4.2 6.9 9.8 31.4 53.5

Umbrella body/Trade association 5 2.0 2.6 3.7 4.1 4.2

Other 7 6.1 9.9 13.5 33.4 69.0

1.3.1 Percentage of income from individual donations and fundraising, legacies

and fundraising branches

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 0.0 0.3 11.2 54.0 76.5

Income

Under £5m 15 0.1 0.2 11.2 34.0 82.1

£5m-£10m 12 0.0 0.1 1.6 10.3 36.4

£10m-£25m 7 0.0 0.1 0.3 34.1 68.7

£25m-£50m 9 0.2 2.6 15.7 54.0 77.8

Over £50m 14 1.2 16.6 51.4 61.4 69.7

Sector




Grant making 9 0.0 3.5 27.4 76.7 83.4


Housing 10 0.1 0.3 1.8 9.8 18.5



Social care 11 0.1 0.4 8.9 39.4 53.4


Other 7 0.0 0.0 0.1 1.4 28.5


1.3.2 Percentage of income from companies and their staff, including payroll

giving and trusts and foundations

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 55 0.0 0.0 4.4 12.8 37.4

Income

Under £5m 15 0.0 1.5 7.6 29.4 59.1

£5m-£10m 11 0.0 0.0 0.0 6.2 10.3

£10m-£25m 6 0.0 0.5 7.8 14.9 15.9

£25m-£50m 9 0.0 0.1 1.4 5.0 13.4

Over £50m 14 0.0 0.0 4.5 11.7 27.2

Sector




Grant making 9 0.0 0.1 4.5 13.0 24.9


Housing 10 0.0 0.0 0.0 8.8 41.5



Social care 10 0.0 0.4 3.4 10.9 19.6


Other 6 0.0 0.0 0.1 1.6 8.8

1.3.3 Percentage of income from statutory grants, service level agreements

with statutory bodies and contracts with statutory bodies

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 56 0.0 0.4 29.6 78.0 96.8

Income

Under £5m 15 0.0 0.0 0.0 62.8 85.5

£5m-£10m 12 0.3 20.3 43.7 68.3 95.6

£10m-£25m 6 0.7 21.4 90.0 98.9 99.7

£25m-£50m 9 0.0 0.8 63.7 93.4 95.3

Over £50m 14 0.4 7.1 25.0 34.7 75.7

Sector




Grant making 9 0.0 0.0 0.3 0.8 70.7


Housing 10 22.8 27.0 50.8 86.3 96.5



Social care 10 18.7 23.7 41.7 77.1 94.0


Other 6 0.0 7.3 56.0 92.5 96.6


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1.3.4 Percentage of income from investments

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 0.0 0.2 0.6 1.5 4.7

Income

Under £5m 15 0.0 0.2 0.4 3.2 6.4

£5m-£10m 12 0.0 0.2 0.6 1.1 2.8

£10m-£25m 7 0.1 0.1 0.2 0.4 2.0

£25m-£50m 9 0.4 0.6 1.1 2.6 4.1

Over £50m 14 0.1 0.2 0.5 0.9 4.0

Sector




Grant making 9 0.4 0.5 2.1 6.3 20.1


Housing 10 0.1 0.3 0.4 0.6 8.9



Social care 11 0.0 0.2 0.3 0.6 0.6


Other 7 0.0 0.1 0.2 0.6 1.0

1.3.5 Percentage of income from membership subscriptions

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 54 0.0 0.0 0.0 0.0 2.6

Income

Under £5m 15 0.0 0.0 0.0 0.0 19.2

£5m-£10m 11 0.0 0.0 0.0 1.1 16.1

£10m-£25m 5 0.0 0.0 0.0 0.0 0.0

£25m-£50m 9 0.0 0.0 0.0 0.0 4.4

Over £50m 14 0.0 0.0 0.0 0.0 0.1

Sector




Grant making 9 0.0 0.0 0.0 0.0 0.7


Housing 10 0.0 0.0 0.0 0.0 1.6



Social care 10 0.0 0.0 0.0 0.0 0.0


Other 6 0.0 0.0 0.0 0.0 42.4


1.3.6 Percentage of income from trading income not included above

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 55 0.0 0.3 3.2 11.4 21.1

Income

Under £5m 15 0.8 1.2 3.3 15.5 47.7

£5m-£10m 11 0.0 0.1 12.5 19.4 44.7

£10m-£25m 6 0.0 0.0 0.0 8.0 11.2

£25m-£50m 9 0.2 1.1 3.3 4.8 7.6

Over £50m 14 0.0 0.6 2.7 9.3 13.4

Sector




Grant making 9 0.1 0.7 1.3 4.8 23.6


Housing 10 0.0 0.1 1.1 2.8 23.2



Social care 10 0.9 1.8 12.8 19.9 34.0


Other 6 0.0 0.1 1.6 11.4 57.1

1.3.7 Percentage of income from other income

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 56 0.0 0.1 1.0 3.7 15.7

Income

Under £5m 15 0.0 0.2 0.9 2.0 9.5

£5m-£10m 12 0.0 0.1 1.1 8.3 24.5

£10m-£25m 6 0.0 0.0 0.3 1.6 2.5

£25m-£50m 9 0.0 0.3 4.6 10.2 24.6

Over £50m 14 0.1 0.4 1.1 3.4 9.6

Sector




Grant making 9 0.6 1.0 2.2 10.2 24.6


Housing 10 0.2 0.4 4.4 12.7 24.6



Social care 10 0.1 0.3 1.2 4.3 10.9


Other 6 0.0 0.0 0.0 0.0 0.9


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1.15 Expenditure of organisation (£millions)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 3.0 4.5 13.3 38.6 97.9

Income

Under £5m 15 1.2 2.2 3.4 3.9 4.3

£5m-£10m 12 5.3 5.5 6.6 8.2 9.4

£10m-£25m 7 13.1 14.8 18.6 21.2 23.5

£25m-£50m 9 24.3 25.3 31.4 35.1 40.3

Over £50m 14 56.0 59.4 93.2 136.3 272.6

Sector




Grant making 9 2.4 4.3 20.7 32.8 399.9


Housing 10 3.6 5.2 6.9 34.9 83.1



Social care 11 3.6 6.5 9.5 30.9 58.8


Other 7 6.0 9.5 13.3 32.9 66.8

1.16 Number of employees (FTE)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 31.0 71.0 148.0 374.0 1,139.4

Income

Under £5m 15 17.2 22.9 34.5 66.0 91.6

£5m-£10m 12 45.4 65.5 127.5 177.3 219.4

£10m-£25m 7 90.8 112.5 146.0 365.5 469.8

£25m-£50m 9 132.4 185.0 304.7 760.0 1,235.6

Over £50m 14 209.6 249.5 498.0 1,293.3 2,558.1

Sector


Economic/Community development/Employment 6 38.7 49.2 75.0 846.5 1,228.5


Grant making 9 21.9 32.0 139.0 189.2 484.2


Housing 10 68.4 111.8 259.5 526.0 1,126.9


People with disabilities 8 39.4 92.0 378.5 914.5 1,408.0

Social care 11 71.0 144.2 310.0 760.0 1,378.0


Other 7 61.6 80.5 146.0 342.0 704.4


1.17 Number of employees (headcount)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 34 84 178 421 1,458

Income

Under £5m 15 18 27 38 87 120

£5m-£10m 12 48 74 160 198 270

£10m-£25m 7 100 120 159 401 533

£25m-£50m 9 152 185 321 1,210 1,434

Over £50m 14 216 265 570 1,735 3,769

Sector

Children/Young People 16 29 38 144 192 330

Economic/Community development/Employment 6 45 57 77 1,180 2,687

Education/ Training 20 27 38 95 326 1,243

Grant making 9 25 35 162 205 557

Health care/Medical research 17 22 89 166 237 651

Housing 10 95 139 305 662 1,791

International development 9 30 107 185 227 1,024

People with disabilities 8 42 99 487 1,299 1,635

Social care 11 89 169 380 1,003 3,624

Umbrella body/Trade association 5 26 27 38 84 140

Other 7 67 85 159 377 788

1.18 Analysis by sector

Number of Responses

Animal Welfare

(%)

Arts/

Culture (%)

Children/ Young People (%)

Whole Sample 57 2 2 28

Income

Under £5m 15 0 0 47

£5m-£10m 12 0 0 42

£10m-£25m 7 0 0 14

£25m-£50m 9 11 0 11

Over £50m 14 0 7 14

Sector

Children/Young People 16 0 0 100

Economic/Community development/Employment 6 0 0 33

Education/ Training 20 5 0 35

Grant making 9 0 11 22

Health care/Medical research 17 0 0 29

Housing 10 0 0 40

International development 9 0 0 22

People with disabilities 8 0 0 13

Social care 11 0 0 27

Umbrella body/Trade association 5 0 0 40

Other 7 0 0 0


18

Civil rights/

Citizenship/

Law and Order (%)

Economic/

Community development/

Employment (%)

Education/

Training (%)

Elderly/

Old people

(%)


Income

Under £5m 7 13 53 0

£5m-£10m 0 8 50 0

£10m-£25m 14 14 0 0

£25m-£50m 0 0 33 0

Over £50m 0 14 21 7

Sector






Housing 0 20 20 0





Other 14 14 29 0

Environment/

Conservation (%)

Grant making

(%)

Health care/

Medical research (%)

Housing (%)


Income

Under £5m 0 20 27 13

£5m-£10m 0 0 42 33

£10m-£25m 29 0 29 14

£25m-£50m 11 33 22 11

Over £50m 7 21 29 14

Sector






Housing 0 10 0 90





Other 14 0 0 0


International development

(%)

Mental Health (%)

People of a particular

ethnic or racial origin (%)

People with disabilities

(%)


Income

Under £5m 7 0 0 13

£5m-£10m 8 8 0 8

£10m-£25m 29 29 0 14

£25m-£50m 11 0 0 33

Over £50m 29 0 0 7

Sector






Housing 0 10 0 20





Other 29 14 0 0

Religious/

Missionary (%)

Social care (%)

Sport/

Recreation (%)

Umbrella body/

Trade association (%)


Income

Under £5m 0 20 7 33

£5m-£10m 0 25 17 0

£10m-£25m 0 29 0 0

£25m-£50m 0 11 0 0

Over £50m 7 14 0 0

Sector






Housing 10 40 30 0





Other 0 14 0 0


20

Other (%)

Whole Sample 12

Income

Under £5m 0

£5m-£10m 17

£10m-£25m 43

£25m-£50m 11

Over £50m 7

Sector

Children/Young People 0

Economic/Community development/Employment 17

Education/ Training 10

Grant making 0

Health care/Medical research 0

Housing 0

International development 22

People with disabilities 0

Social care 9

Umbrella body/Trade association 0

Other 100

1.19 Participants by income band

Number of Responses % of Whole

Whole Sample 57 100

Income

Under £5m 15 26

£5m-£10m 12 21

£10m-£25m 7 12

£25m-£50m 9 16

Over £50m 14 25


1.20 Net assets (£millions)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 1.1 2.6 6.2 22.3 97.2

Income

Under £5m 15 0.6 1.0 1.9 3.9 11.6

£5m-£10m 12 1.6 2.5 4.8 6.1 8.5

£10m-£25m 7 3.3 4.4 9.7 15.5 17.1

£25m-£50m 9 4.6 22.3 33.2 65.1 118.2

Over £50m 14 6.8 15.4 31.7 120.5 149.0

Sector




Grant making 9 1.8 4.6 22.7 131.1 1,241.2


Housing 10 1.7 3.0 6.8 15.6 588.9



Social care 11 1.9 3.1 6.2 16.7 25.9


Other 7 3.4 4.4 6.0 12.5 20.3

1.21 Income per employee FTE (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 37,852 44,907 94,456 177,185 276,818

Income

Under £5m 15 31,225 45,025 93,384 157,096 206,050

£5m-£10m 12 38,445 41,878 50,325 98,853 112,628

£10m-£25m 7 44,343 48,892 122,887 136,687 158,373

£25m-£50m 9 37,930 44,412 104,611 205,980 223,602

Over £50m 14 53,822 71,985 224,979 316,031 423,997

Sector

Children/Young People 16 31,907 41,878 69,768 146,201 277,169

Economic/Community development/Employment 6 42,016 49,990 63,074 102,603 129,262

Education/ Training 20 38,407 55,469 79,496 133,416 213,875

Grant making 9 130,178 176,194 211,342 415,368 628,692

Health care/Medical research 17 47,436 53,035 122,887 211,342 262,847

Housing 10 28,025 31,749 43,914 56,259 142,960

International development 9 114,906 138,342 225,955 283,083 312,435

People with disabilities 8 39,903 44,408 58,388 107,316 179,356

Social care 11 29,415 43,948 48,714 55,904 64,362

Umbrella body/Trade association 5 30,197 37,015 119,616 174,816 175,643

Other 7 42,122 68,977 112,043 136,687 194,845


22

1.22 Expenditure per employee FTE (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 36,405 46,178 82,683 148,878 255,667

Income

Under £5m 15 32,020 43,384 78,268 127,128 173,755

£5m-£10m 12 34,928 41,133 48,387 93,858 119,789

£10m-£25m 7 43,586 49,647 127,375 143,139 157,128

£25m-£50m 9 37,076 46,178 82,683 148,878 189,736

Over £50m 14 57,205 71,972 156,887 282,277 537,449

Sector




Grant making 9 82,508 117,713 173,491 254,717 812,491


Housing 10 27,491 30,943 43,385 52,889 165,572



Social care 11 28,009 42,983 48,886 54,358 65,873


Other 7 41,455 65,104 120,500 135,232 188,690

1.23 Asset value per employee FTE (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 12,222 23,677 54,890 113,331 309,320

Income

Under £5m 15 9,247 26,460 62,754 131,019 458,089

£5m-£10m 12 13,296 27,790 35,335 64,670 94,308

£10m-£25m 7 15,648 23,314 37,822 84,401 119,912

£25m-£50m 9 18,730 23,199 54,411 239,180 440,452

Over £50m 14 16,034 31,775 63,926 151,235 239,384

Sector




Grant making 9 58,931 63,010 239,180 502,129 2,935,729


Housing 10 11,779 16,459 21,222 37,075 1,287,344



Social care 11 12,275 17,374 29,161 40,172 65,503


Other 7 14,606 17,371 55,472 70,883 101,899


1.24 Surplus/deficit as a % of income

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 -4.2 -2.2 1.9 7.1 14.4

Income

Under £5m 15 -3.2 -2.3 7.8 11.8 31.7

£5m-£10m 12 -0.5 0.4 3.7 6.5 7.5

£10m-£25m 7 -9.3 -2.5 0.1 1.7 1.9

£25m-£50m 9 -1.8 1.1 4.8 15.8 22.7

Over £50m 14 -8.7 -2.3 1.9 5.2 6.5

Sector

Children/Young People 16 -3.9 -2.4 1.6 7.6 27.8

Economic/Community development/Employment 6 -6.4 -2.8 -2.2 -1.0 0.6

Education/ Training 20 -3.8 -2.5 1.5 7.2 14.7

Grant making 9 -15.6 -3.4 10.5 29.6 49.6

Health care/Medical research 17 -0.8 3.4 7.1 15.8 44.3

Housing 10 -14.1 -1.8 1.2 4.6 6.7

International development 9 -0.9 0.1 2.6 4.2 7.1

People with disabilities 8 -1.1 0.6 3.3 8.3 22.6

Social care 11 -4.4 -1.1 3.4 6.3 9.1

Umbrella body/Trade association 5 -3.6 -3.4 -2.3 0.3 4.8

Other 7 -2.9 0.8 1.8 3.0 5.5

1.25 Average salary per employee (FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 56 20,127 24,898 30,805 38,768 43,958

Income

Under £5m 15 19,015 22,736 31,859 38,624 43,738

£5m-£10m 12 19,905 23,816 30,677 37,777 39,633

£10m-£25m 7 25,575 27,445 39,120 45,437 49,875

£25m-£50m 9 23,083 24,903 26,173 30,660 36,672

Over £50m 13 23,378 27,770 30,949 37,579 40,271

Sector




Grant making 9 25,187 30,660 36,011 37,579 39,014


Housing 10 15,558 19,248 27,209 30,238 38,906



Social care 11 15,874 23,231 26,857 30,521 32,869


Other 7 22,386 24,268 37,202 40,750 44,750


24

1.26 Cost of staff salaries as a percentage of expenditure

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 56 13.0 28.2 45.2 55.8 63.4

Income

Under £5m 15 23.5 29.1 49.4 61.1 63.8

£5m-£10m 12 32.3 48.2 55.6 58.1 72.0

£10m-£25m 7 28.2 30.9 34.2 51.9 58.6

£25m-£50m 9 14.5 24.2 31.8 55.8 58.0

Over £50m 13 6.1 9.6 31.9 45.2 50.6

Sector




Grant making 9 5.0 12.0 22.2 25.4 35.4


Housing 10 45.8 52.9 56.2 62.8 64.6



Social care 11 34.6 50.3 55.5 58.7 61.5


Other 7 21.7 31.9 34.2 50.2 58.4


4.2 CENTRAL FUNCTION COSTS 15.1.1 Total cost of the finance function as a percentage of total expenditure

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 56 1.1 1.7 2.4 3.9 4.5

Income

Under £5m 15 2.3 3.1 4.0 4.4 5.9

£5m-£10m 12 1.7 1.9 2.8 3.9 5.1

£10m-£25m 7 1.8 2.1 2.7 3.2 3.6

£25m-£50m 9 1.4 1.5 1.9 2.2 3.0

Over £50m 13 0.8 0.9 1.2 1.8 2.1

Sector




Grant making 9 0.7 1.2 1.8 4.0 4.3


Housing 10 1.4 1.8 2.3 3.2 3.5



Social care 11 1.7 2.0 3.3 3.9 4.6


Other 7 1.5 2.3 2.9 3.5 6.0

15.1.2 Finance employees (FTE) as percentage of total employees (FTE)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 57 2.1 2.8 4.5 7.5 12.6

Income

Under £5m 15 3.2 4.4 6.3 10.4 17.1

£5m-£10m 12 2.2 3.0 3.3 4.8 8.4

£10m-£25m 7 2.0 2.8 5.3 8.4 10.3

£25m-£50m 9 1.9 2.4 2.7 5.5 7.7

Over £50m 14 2.0 2.9 3.8 8.2 11.4

Sector




Grant making 9 3.2 5.5 6.8 11.2 14.1


Housing 10 2.0 2.2 3.1 3.9 5.3



Social care 11 1.4 2.1 3.1 3.8 6.0


Other 7 2.0 3.3 5.6 8.3 10.1


26

15.1.3 Staffing cost per finance employee (FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 56 23,221 27,828 35,339 42,963 48,114

Income

Under £5m 15 16,929 23,496 34,996 44,283 50,658

£5m-£10m 12 27,653 32,131 34,214 37,915 43,089

£10m-£25m 7 30,064 31,992 39,286 41,630 44,818

£25m-£50m 9 27,975 28,151 36,963 47,727 50,751

Over £50m 13 23,881 27,918 34,376 38,181 41,975

Sector




Grant making 9 27,707 34,010 36,963 43,125 47,564


Housing 10 26,853 28,326 33,806 34,860 37,989



Social care 11 27,476 29,827 34,996 38,266 39,515


Other 7 29,282 31,992 32,935 41,964 46,948

15.1.4 Total cost of the finance function per organisation employee (FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 56 827.4 1,041.1 1,939.5 3,689.6 5,094.8

Income

Under £5m 15 996.7 1,560.3 3,097.9 4,202.5 10,461.5

£5m-£10m 12 935.8 1,012.7 1,418.3 2,132.5 3,964.2

£10m-£25m 7 759.9 1,352.9 3,157.9 4,554.4 4,809.8

£25m-£50m 9 787.1 1,017.7 1,632.1 2,780.7 4,082.9

Over £50m 13 879.8 1,149.8 1,369.3 3,720.8 4,898.4

Sector

Children/Young People 16 833.8 1,008.1 1,946.6 4,387.9 9,866.1

Economic/Community development/Employment 6 1,210.9 1,378.1 1,734.1 2,318.5 3,401.7

Education/ Training 20 931.0 1,121.9 1,611.4 3,424.0 7,301.9

Grant making 9 1,826.6 2,780.7 3,189.6 3,679.2 5,049.3

Health care/Medical research 16 832.1 1,121.9 1,999.0 3,400.2 4,991.0

Housing 10 648.1 948.9 1,056.4 1,565.9 2,310.9

International development 9 1,522.2 2,220.2 4,416.3 4,934.3 7,126.5

People with disabilities 8 612.8 790.6 1,312.0 3,133.9 3,373.1

Social care 11 728.8 932.4 1,369.3 1,772.9 2,002.2

Umbrella body/Trade association 5 712.0 1,022.7 3,189.6 4,811.3 9,767.9

Other 7 961.5 1,637.2 2,500.0 4,658.2 7,367.8


15.2.1 Total cost of the HR function as percentage of total expenditure

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 53 0.5 1.0 1.3 2.5 3.3

Income

Under £5m 12 0.7 0.9 1.1 2.0 3.9

£5m-£10m 12 0.5 0.9 2.0 3.1 3.4

£10m-£25m 7 1.2 1.3 1.5 2.6 3.0

£25m-£50m 9 0.7 0.8 1.7 2.1 2.9

Over £50m 13 0.3 1.0 1.2 1.8 2.6

Sector




Grant making 8 0.2 0.4 0.7 1.5 3.1


Housing 10 0.9 1.6 2.0 2.8 3.3



Social care 11 1.1 1.9 2.6 3.1 3.4

Other 7 0.9 1.2 1.9 2.8 3.2

15.2.2 HR employees (FTE) as percentage of total employees (FTE)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 52 1.1 1.6 2.3 2.8 4.3

Income

Under £5m 12 1.1 1.2 1.9 3.2 6.5

£5m-£10m 11 1.1 1.4 2.3 3.0 4.3

£10m-£25m 7 1.4 1.9 2.7 3.2 3.5

£25m-£50m 9 1.8 1.9 2.1 2.6 2.7

Over £50m 13 1.7 1.9 2.4 2.7 4.0

Sector




Grant making 8 1.8 2.1 2.5 2.7 2.8


Housing 10 1.3 1.4 1.8 2.2 3.1



Social care 10 1.4 1.8 2.1 3.1 4.8


Other 7 1.4 1.7 2.2 2.6 3.4


28

15.2.3 Staffing cost per HR employee (FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 51 25,333 31,000 37,392 44,775 49,444

Income

Under £5m 11 24,162 28,167 37,114 38,742 56,000

£5m-£10m 11 18,623 30,493 35,697 41,098 46,000

£10m-£25m 7 28,740 32,011 43,000 47,091 50,588

£25m-£50m 9 25,930 34,399 39,286 44,893 48,006

Over £50m 13 29,346 33,304 37,486 41,279 47,173

Sector




Grant making 8 37,295 38,812 44,790 48,174 52,611


Housing 10 25,216 25,883 30,142 38,797 42,606



Social care 10 26,063 30,799 32,241 35,099 40,500

Other 7 30,429 32,593 43,000 50,887 72,033

15.2.4 Total cost of the HR function per organisation employee (FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 53 488.4 746.6 1,298.9 2,040.6 3,244.5

Income

Under £5m 12 482.0 487.0 905.7 2,100.1 2,334.1

£5m-£10m 12 307.0 734.3 1,140.2 1,513.5 2,334.9

£10m-£25m 7 631.1 1,102.5 1,629.2 2,692.1 3,835.1

£25m-£50m 9 755.3 806.4 1,211.0 1,388.0 1,668.1

Over £50m 13 860.5 1,287.2 1,404.2 2,296.3 3,284.9

Sector

Children/Young People 14 483.1 722.8 1,306.8 2,376.5 3,702.0

Economic/Community development/Employment 6 502.1 675.8 1,226.6 1,378.7 1,516.7

Education/ Training 19 442.3 748.3 1,302.1 1,682.4 2,771.0

Grant making 8 1,070.8 1,220.2 1,343.5 1,672.4 2,801.6

Health care/Medical research 15 353.0 890.8 1,449.8 2,019.2 3,290.5

Housing 10 654.4 709.5 841.6 1,262.0 1,467.9

International development 9 1,466.3 1,623.7 2,278.8 3,181.9 3,266.3

People with disabilities 8 654.5 768.0 967.9 1,229.9 1,570.4

Social care 11 567.3 776.5 1,404.2 1,577.5 2,040.6

Other 7 939.4 1,329.7 1,629.2 2,424.3 3,596.6


15.3.1 Total cost of the information systems/information technology function

as percentage of total expenditure

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 52 0.7 1.1 1.9 2.6 3.5

Income

Under £5m 11 1.1 1.5 1.9 2.5 2.6

£5m-£10m 12 0.8 1.0 1.6 2.1 4.6

£10m-£25m 7 0.8 1.0 2.1 2.7 2.9

£25m-£50m 9 1.2 1.5 2.0 3.2 3.4

Over £50m 13 0.3 1.0 2.0 2.6 3.8

Sector




Grant making 8 0.2 0.9 1.4 2.4 3.8


Housing 9 0.7 0.9 1.1 1.8 2.4



Social care 10 0.6 0.9 1.2 2.5 2.9

Other 7 0.8 0.9 1.8 2.9 4.0

15.3.2 Information systems/information technology employees (FTE) as

percentage of total employees (FTE)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 53 0.0 0.8 1.8 3.7 4.8

Income

Under £5m 12 0.0 0.4 1.0 2.2 4.0

£5m-£10m 12 0.0 0.4 0.9 2.0 4.2

£10m-£25m 7 0.8 1.2 2.1 2.3 2.4

£25m-£50m 9 0.8 1.4 2.2 3.8 5.5

Over £50m 13 1.2 1.9 3.7 4.6 5.3

Sector




Grant making 8 3.0 3.3 4.2 5.0 5.7


Housing 10 0.0 0.0 0.4 0.9 1.9



Social care 10 0.0 0.1 0.7 1.0 1.8


Other 7 1.2 1.4 2.2 3.6 4.7


30

15.3.3 Staffing cost per information systems/information technology

employees (FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 46 22,818 29,673 36,832 43,264 53,854

Income

Under £5m 8 19,690 22,600 34,298 41,817 48,087

£5m-£10m 9 15,852 30,500 38,763 40,000 44,020

£10m-£25m 7 24,628 27,763 32,266 49,583 66,138

£25m-£50m 9 26,661 30,807 40,110 42,857 46,416

Over £50m 13 29,320 31,274 35,401 43,662 56,072

Sector




Grant making 8 29,760 32,588 41,429 44,563 49,924


Housing 6 22,595 27,434 30,083 34,175 39,531



Social care 7 26,358 27,813 32,266 37,082 39,258

Other 7 22,825 24,357 38,053 45,779 52,500

15.3.4 Total cost of the information systems/information technology function

per organisation employee (FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 52 433.7 872.6 1,576.9 2,771.6 4,177.9

Income

Under £5m 11 569.3 662.9 1,205.7 2,304.9 3,064.3

£5m-£10m 12 338.4 488.5 838.5 1,696.6 4,452.1

£10m-£25m 7 397.7 783.3 1,584.4 3,237.8 4,223.4

£25m-£50m 9 1,055.1 1,324.5 1,859.7 2,697.9 3,377.3

Over £50m 13 1,285.7 1,464.8 1,868.0 3,934.8 5,455.7

Sector


Economic/Community development/Employment 6 858.5 1,245.3 1,900.7 2,041.8 2,780.5

Education/ Training 18 743.0 1,058.5 1,798.6 2,889.6 4,341.4

Grant making 8 1,632.4 1,955.3 2,484.0 3,396.2 4,307.6


Housing 9 246.8 329.3 471.9 1,800.0 1,910.0

International development 9 839.2 1,094.7 1,464.8 2,697.9 5,486.0

People with disabilities 8 405.4 549.3 1,471.6 2,016.5 2,812.5

Social care 10 248.5 320.0 572.2 1,407.7 1,612.7

Other 7 771.4 1,209.6 1,569.4 3,071.8 4,451.0


15.4.1 Total cost of the estate management function as percentage of total

expenditure

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 47 0.1 0.6 1.7 4.0 5.9

Income

Under £5m 11 0.3 0.9 3.5 4.6 4.9

£5m-£10m 10 0.1 0.6 2.0 5.7 7.0

£10m-£25m 6 0.7 1.8 3.7 3.9 4.0

£25m-£50m 8 1.3 1.4 1.7 3.5 5.9

Over £50m 12 0.1 0.1 0.5 2.2 3.5

Sector




Grant making 6 0.0 0.1 1.1 2.6 3.7


Housing 9 0.2 0.7 1.5 3.0 5.6



Social care 10 0.1 0.5 1.1 2.4 4.1

Other 6 1.0 1.4 2.7 3.9 5.3

15.4.2 Estate management employees (FTE) as percentage of total employees

(FTE)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 48 0.1 0.4 1.2 2.8 4.7

Income

Under £5m 11 0.0 0.0 1.1 3.3 5.0

£5m-£10m 10 0.1 0.6 1.6 3.2 4.2

£10m-£25m 6 0.5 0.9 1.8 2.2 2.5

£25m-£50m 9 0.3 0.8 2.2 4.7 9.0

Over £50m 12 0.2 0.4 0.8 2.2 2.3

Sector




Grant making 7 0.0 0.3 2.3 3.8 4.7


Housing 9 0.3 0.5 1.0 2.0 3.4



Social care 9 0.0 0.1 0.5 1.0 1.0

Other 6 1.2 2.1 2.2 3.7 4.3


32

15.4.3 Staffing cost per estate management employee (FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 43 23,889 26,978 33,501 40,561 44,770

Income

Under £5m 8 18,509 22,644 32,873 39,771 58,000

£5m-£10m 9 24,245 26,483 29,000 36,219 38,690

£10m-£25m 6 26,532 27,674 34,720 41,941 44,054

£25m-£50m 9 25,454 29,978 34,151 35,292 40,109

Over £50m 11 26,565 28,883 40,577 44,302 44,812

Sector




Grant making 5 27,769 28,336 35,292 40,000 42,400


Housing 8 24,347 28,698 31,739 35,826 36,562



Social care 7 27,037 29,704 33,501 38,564 42,103

Other 6 24,722 25,391 29,471 41,094 44,500

15.4.4 Total cost of the estate management function per organisation employee

(FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 47 132.2 330.9 1,604.3 3,933.2 5,700.2

Income

Under £5m 11 205.8 345.4 1,716.5 3,191.7 5,282.1

£5m-£10m 10 32.9 340.2 1,551.6 2,143.2 3,730.5

£10m-£25m 6 376.7 1,740.3 5,144.2 5,577.7 6,057.1

£25m-£50m 8 482.1 603.1 1,817.7 5,146.5 6,263.3

Over £50m 12 113.0 225.1 1,102.0 2,507.6 3,967.2

Sector




Grant making 6 110.6 358.2 1,852.5 4,446.5 5,100.1

Health care/Medical research 13 191.6 651.2 2,935.6 4,950.1 5,591.4

Housing 9 81.8 420.3 807.9 1,344.3 1,581.2



Social care 10 32.9 260.3 560.5 1,646.0 2,079.8

Other 6 1,056.4 1,720.9 3,539.2 5,212.6 5,522.4


15.5.1 Total cost of the CEO's office as percentage of total expenditure

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 53 0.4 1.0 1.8 2.9 5.3

Income

Under £5m 14 2.5 2.7 3.5 5.8 9.0

£5m-£10m 11 1.5 2.1 2.7 3.8 5.0

£10m-£25m 7 1.1 1.2 1.7 1.8 2.2

£25m-£50m 8 0.8 0.9 1.3 1.7 2.1

Over £50m 13 0.3 0.3 0.4 0.7 1.2

Sector




Grant making 8 0.3 0.8 2.1 3.7 5.6


Housing 10 0.7 1.6 2.2 2.6 3.0



Social care 11 0.7 1.4 2.0 3.1 4.4

Other 7 0.6 0.9 1.2 3.5 5.6

15.5.2 CEO's office employees (FTE) as percentage of total employees (FTE)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 54 0.4 0.8 1.6 3.3 4.5

Income

Under £5m 14 1.9 2.2 3.4 6.3 9.2

£5m-£10m 11 0.7 1.4 1.5 3.3 4.4

£10m-£25m 7 1.0 1.3 1.4 2.5 3.0

£25m-£50m 9 0.2 0.5 0.7 1.1 2.5

Over £50m 13 0.2 0.4 0.8 1.7 2.0

Sector




Grant making 9 0.9 1.1 2.2 4.2 4.8


Housing 10 0.6 0.8 1.4 2.0 3.0



Social care 10 0.4 0.6 1.4 1.8 3.0


Other 7 0.5 0.7 1.4 3.9 4.8


34

15.5.3 Staffing cost per CEO's office employee (FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 53 44,537 56,473 71,167 86,667 103,000

Income

Under £5m 13 56,706 63,853 83,872 88,500 95,061

£5m-£10m 11 44,380 57,667 63,450 79,669 97,820

£10m-£25m 7 39,522 53,224 55,421 79,319 95,565

£25m-£50m 9 43,411 69,327 71,199 124,879 125,913

Over £50m 13 45,804 59,696 68,698 85,100 91,792

Sector




Grant making 9 62,975 85,259 88,500 103,500 110,696


Housing 10 34,089 42,480 53,484 63,752 80,695



Social care 10 42,933 44,576 48,490 56,163 65,543

Other 7 49,111 68,940 97,820 104,956 117,173

15.5.4 Total cost of the CEO's office per organisation employee (FTE) (£)

Number of Responses

Lowest (10%)


Median (50%)


Highest (90%)

Whole Sample 53 367.5 680.6 1,491.9 3,013.0 5,026.4

Income

Under £5m 14 1,008.9 1,878.4 2,659.2 6,919.7 10,287.9

£5m-£10m 11 540.5 774.2 1,493.9 2,677.0 5,099.0

£10m-£25m 7 662.1 871.2 1,491.9 2,454.4 3,405.8

£25m-£50m 8 331.8 512.3 910.5 1,850.5 2,637.8

Over £50m 13 309.7 318.8 862.5 1,332.2 2,066.7

Sector




Grant making 8 1,364.7 2,054.9 2,695.4 4,554.5 5,609.6


Housing 10 526.0 564.7 826.0 1,879.1 2,337.3


People with disabilities 7 343.3 461.7 810.6 1,768.2 4,284.5

Social care 11 395.6 501.1 931.8 1,830.5 2,262.2

Other 7 369.5 789.2 1,491.9 4,515.8 5,753.8


ANNEX A: DEFINITIONS OF MEASURES Table Indicator Definition (numbers in brackets refer to the

questions in the questionnaire)

GENERAL INFORMATION

1.2 Income of organisation in last financial year Income (A4) in millions

1.3.1 - 1.3.7

Percentage of income from various sources Sources of income (A5A - G) divided by income (A4)

1.15 Expenditure of organisation in last financial year

Expenditure (A6)

1.16 Number of employees (FTE) Number of employees (FTE) (A7)

1.17 Number of employees (headcount) Number of employees (headcount)(A8)

1.20 Total net assets Total net assets (A10)

1.21 Income per employee (FTE) Income (A4) divided by number of employees (FTE) (A7)

1.22 Expenditure per employee (FTE) Expenditure (A6) divided by number of employees (FTE) (A7)

1.23 Asset value per employee (FTE) Total net assets (A10) divided by number of employees (FTE) (A7)

1.24 Surplus/deficit as a percentage of income Income minus expenditure(A4-A6) divided by income (A4)

1.25 Average salary per employee (FTE) The cost of staff salaries (D2) divided by number of employees (FTE) (A7)

1.26 Cost of staff salaries as a percentage of expenditure

The cost of staff salaries (D2) divided by expenditure (A6)

CENTRAL FUNCTION COSTS

15.1.1 Total cost of the finance function as percentage of total expenditure

Total costs of the finance function (Q2C) divided by expenditure (A6)

15.1.2 Finance employees (FTE) as percentage of total employees (FTE)

Number of employees in the finance function (FTE) (M1) divided by the number of employees (FTE)(A7)

15.1.3 Staffing cost per finance employee (FTE) Staff costs in the finance function (Q2A) divided by the number of employees in the finance function (FTE) (M1)

15.1.4 Total cost of the finance function per organisation employee (FTE)

Total costs of the finance function (Q2C) divided by number of employees (FTE) (A7)

15.2.1 Total cost of the HR function as percentage of total expenditure

Total cost of the HR function (Q4C) divided by expenditure (A6)

15.2.2 HR employees (FTE) as percentage of total employees (FTE)

Number of employees in the HR function (FTE) (Q3) divided by number of employees (FTE) (A7)

15.2.3 Staffing cost per HR employee (FTE) Staff costs of the HR function (Q4A) divided by the number

of employees in the HR function (FTE) (Q3)

15.2.4 Total cost of the HR function per organisation employee (FTE)

Total cost of the HR function (Q4C) divided by number of employees (FTE) (A7)

15.3.1 Total cost of the information systems/information technology function as percentage of total expenditure

Total costs of the IS/IT department (Q6C) divided by expenditure (A6)

15.3.2 Information systems/information technology employees (FTE) as percentage of total employees (FTE)

Number of IS/IT employees (FTE)(Q5) divided by the number of employees (FTE)(A7)

15.3.3 Staffing cost per information systems/information technology employees (FTE)

Staff cost of the IS/IT department (Q6A) divided by the number of IS/IT employees (FTE)(Q5)

15.3.4 Total cost of the information systems/information technology function per organisation employee (FTE)

Total costs of the IS/IT department (Q6C) divided by number of employees (FTE) (A7)

15.4.1 Total cost of the estate management function as percentage of total expenditure

Total cost of the estate management function (Q8C) divided by expenditure (A6)


36

Table Indicator Definition (numbers in brackets refer to the questions in the questionnaire)

15.4.2 Estate management employees (FTE) as percentage of total employees (FTE)

Number of employees in the estate management function (FTE)(Q7) divided by the number of employees (FTE)(A7)

15.4.3 Staffing cost per estate management employee (FTE)

Staff cost of the estate management function (Q8A) divided by the number of employees in the estate management function (FTE)(Q7)

15.4.4 Total cost of the estate management function per organisation employee (FTE)

Total cost of the estate management function (Q8C) divided by number of employees (FTE) (A7)

15.5.1 Total cost of the CEO's office as percentage of total expenditure

Total cost of the CEO's office (Q10C) divided by expenditure (A6)

15.5.2 CEO's office employees (FTE) as percentage of total employees (FTE)

Number of employees in the CEO's office (FTE) (Q9) divided by the number of employees (FTE) (A7)

15.5.3 Staffing cost per CEO's office employee (FTE)

Staff cost of the CEO's office (Q10A) divided by number of employees in the CEO's office (FTE)(Q9)

15.5.4 Total cost of the CEO's office per organisation employee (FTE)

Total cost of the CEO's office (Q10C) divided by the number of employees (FTE) (A7)

15.99 Good practice in Central Function Costs Good practice in Central Function Costs. Do you have any particular examples of good practice from which other participants might learn? Please summarise briefly. (Q99)


ANNEX B: METHODOLOGY AND SAMPLE

Methodology and Timing Finance Count 2014 was undertaken by Agenda Consulting in partnership with The Charity Finance Group and Sayer Vincent. The Agenda team consisted of Brita Benson, Alicia Gayle, Clare Harris, Katharina Hutchings, Sarah Rushworth, Roger Parry, and Tim Walters. The study was funded entirely by the price charged to respondents. The study was overseen by a Steering Group which was consulted at key points during the study. The members of the Steering Group are listed towards the end of this Annex. The methodology divided into five main phases:

In Phase 1, the questionnaire was reviewed in close conjunction with the Steering Group.

In Phase 2 information about the study was circulated to finance directors of about 1,700 organisations in the UK through a number of means including direct mail, telephone, email and presentations. 64 organisations decided to participate.

In Phase 3, respondents completed the questionnaire. 57 organisations completed questionnaires by the data submission deadline (13th of December 2013). There were a number of reasons for non-completions, the most common being the inability to locate the required information.

In Phase 4, we analysed the data and prepared the reports.

In Phase 5, reports were made available online. Organisations who participate are invited to attend product training and offered a one-to-one telephone consultation in order to get the most out of their reports.

Phase 2: Recruitment of organisations

Phase 3: Completion of questionnaires

Phase 4: Report preparation

Phase 1: Revising the

questionnaire

Phase 5: Using the reports


38

Overview of the sample We do not contend that the sample of respondent organisations is representative of the sector as a whole, but it is a good sample about which a considerable amount of detailed information has been gathered, and we hope that it will contribute to financial management policy development in the Third Sector. 57 organisations participated in the study, and are listed towards the end of this report. Participants were self-selecting in that they chose to participate in the study. In aggregate:

Participants employed 74,342 staff (10,683 FTE staff).

The number of employees ranged from 7 to 4,000 FTE.

The median figure for headcount was 178 (148 FTE staff).

The median income was £13.5m.

Participants had combined total net assets of nearly £7 billion. Participants by size We defined size in terms of the income of the organisation. The median income for respondents in the study this year is £13.5 million. This is significantly lower than the median income of those participating in Finance Count 2012: £30m. The average organisation size is significantly smaller than the sample in the 2013 study. A number of Finance Count measures are influenced by economies of scale and therefore caution is required when considering 2014 results in relation to 2013 results; differences may not necessarily be reflective of a change in the Third Sector as a whole, but rather a change in the make up of the sample.

The median income per employee FTE is £94456 (Volume 2 Table 1.21).

The median expenditure per employee FTE is £82,683 (Volume 2 Table 1.22).

The median asset value per employee FTE is £54,890 (Volume 2 Table 1.23). The graph below illustrates the distribution of participants by size.

Source: Table 1.19, Base = 57

26%

21%

12%

16%

25%

Percentage of respondents by income band

Under £5m

£5m-£10m

£10m-£25m

£25m-£50m

Over £50m


Participants by subsector We asked each participants to choose up to three subsectors which best describe their activities, from a list of 20. The numbers in the graph below therefore add up to more than the 57 participants because many organisation chose more than one category. The graph below shows the number of participants in each subsector.

Source: Table 1.18, Base = 57

0

2

2

2

2

4

5

5

7

9

11

12

14

16

16

18

19

27

28

30

0 5 10 15 20 25 30 35

People of a particular ethnic or racial origin

Animal Welfare

Arts/ Culture

Elderly/ Old people

Religious/ Missionary

Civil rights/ Citizenship/ Law and Order

Mental Health

Sport/ Recreation

Environment/ Conservation

Umbrella body/ Trade association

Economic/ Community development/ Employment

Other

People with disabilities

Grant making

International development

Housing

Social care

Education/ Training

Children/ Young People

Health care/ Medical research

Number of respondents in each subsector


40

Acknowledgements

We are very grateful to the following for their support with the study:

Caron Bradshaw, CEO, Lindsay Derry, Head of Marketing and Communications and Katherine Smithson, Policy and Public Affairs Officer, at CFG;

Kate Sayer, Partner, at Sayer Vincent;

John Adams OBE, General Secretary at VODG;

Members of the Steering Group – their names are listed in Annex B;

Participating organisations.

Further details about our partners can be found later on in this report.


Participating Organisations 57 organisations participated in the Finance Count 2014 Study. All whole sample figures are based only on these participants. Arthritis Research UK Prostate Cancer UK

Arts Council of England Railway Children

Ashgate Hospice Limited RNIB

Asthma UK Roffey Park

AVOW Royal College of Ophthalmologists

Breakthrough Breast Cancer Shaw Trust

British Red Cross Society Shelter

Certitude Spinal Research

CHICKS St Clare West Essex Hospice Care Trust

Children’s Link The Anthony Nolan Trust

Children’s Liver Disease Foundation The Aryshire Hospice Trust

Church Commissioners for England The Chartered Quality Institute

CLIC Sargent The Physiological Society

Compass UK The Blue Cross

Gingerbread The Connection at St Martin’s in the Fields

Great Ormond Street Hospital Children’s Charity The Institute of Cancer Research

International Alert The Tropical Health and Education Trust

International Institute for Environment and Development

The Woodland Trust The Young Foundation

Islamic Relief Worldwide Transparency International Secretariat e.V

Marie Curie Cancer Care Victim Support

MCCH Society War Child

Mental Health Matters WaterAid

Motability Watford and District YMCA

Muscular Dystrophy Campaign North Staffs YMCA

World Association of Girl Guides and Girl Scouts

Northern Ireland Association for Mental Health World Vision UK

Norwood Children and Families First WWF UK

Overseas Development Institute YMCA – London South West

Porchlight


42

Steering Group Members

Organisation Name Job Title

Arthritis Research UK Karen Everett Director of Finance and Corporate Resources

Blue Cross Simon Hawkins Head of Finance

Brooke (The) Himali Fernando Accountant

Charity Finance Group Caron Bradshaw Chief Executive

Charity Finance Group David Membrey Deputy CEO

Charity Finance Group Katherine Smithson Policy Officer

Islamic Relief Javed Akhtar Finance Director

Marie Curie Cancer Care Andrew Whitehead Director of Finance

Muscular Dystrophy Campaign Judith Spencer-Gregson Head of Finance

Sayer Vincent Kate Sayer Partner

Turning Point Nick Swarbrick Chief Financial Officer

Wellcome Trust Sanger Institute Stephen Masson Head of Finance


Sayer Vincent Sayer Vincent are leading auditors and advisors working solely for charities, not-for-profit organisations and social enterprises. Measured by audited charity income, we are a top ten UK accountancy practice and widely regarded as charity sector experts. Our work focuses on making charities more effective through improved infrastructure, reporting and governance. We help charities with mergers, systems implementations, tax issues and training. Charities appoint us as consultants, internal auditors or external auditors. We believe in a strong and effective voluntary sector. Since 1983 Sayer Vincent has been at the forefront of initiatives to improve charity effectiveness. We introduced Financial Leadership Awards in 2013 as well as establishing a training course Inspiring Financial Leadership jointly with CFG and Cass Business School. Contact: Kate Sayer, Partner, [email protected] Sayer Vincent 8 Angel Gate City Road LONDON EC1V 2SJ Phone: 020 7841 6360 Web: www.sayervincent.co.uk

mailto:[email protected]

http://www.sayervincent.co.uk/


44

Charity Finance Group The Charity Finance Group (CFG) is the charity that champions best practice in finance management in the voluntary sector. Our training and development programmes enable finance managers to give the essential leadership on finance strategy and management that their charities need. Our growing membership of more than 2,000 members, representing 1,300 charities, means we are uniquely placed to challenge regulation, which threatens the effective use of charity funds. We are committed to supporting all those who work in charity finance. Our conferences and training are open to all, and our policy consultations, the results of sector surveys and our publications are widely available. CFG is represented on many committees and working parties established by professional bodies, government departments, regulators and not-for-profit committees. This enables us to give voice to the views of charity finance managers on issues that affect the effective management of charity funds, such as tax, investment, impact and regulation. Contact: Katherine Smithson, Policy Officer at [email protected] CFG Can Mezzanine 49-51 East Road London N1 6AH Phone: 0845 345 3192 Fax: 0845 345 3193 Email: [email protected] Web: www.cfg.org.uk


Voluntary Organisations Disability Group (VODG) 6 Market Road London N7 9PW Contact: John Adams OBE, General Secretary Tel: 07917 670 509 Email: [email protected] Website: www.vodg.org.uk About the VODG

The VODG is the leading representative grouping of voluntary sector providers of social care services for adults with disabilities. Our members’ shared aim is to ensure that people with disabilities are supported in ways that they themselves define, our vision is: ‘Full choice and control for everyone with a disability.’ The VODG seeks to combine and harness the separate skills, experiences and knowledge of individual member organisations to challenge barriers, facilitate best practice and work with others in the exchange of learning. Our role is to shape the development of social care policy, to influence its implementation and to provide sector leading information and research. VODG members deliver more than £2 billion of services each year and believe that constructive engagement and fair negotiation between commissioners and providers, focused on the needs of people who rely on social care support, helps to build effective strategic alliances, enhances service design and is more likely to deliver positive outcomes. The VODG is a pan-disability organisation with excellent contacts in government and across all of the relevant social care agencies. We estimate that VODG members collectively support around a million disabled people and employ more than 75,000 staff. Members range from the largest disability organisations, including Mencap; Leonard Cheshire Disability; Scope; Dimensions; Sense and the National Autistic Society, through to smaller innovative organisations like VoiceAbility; KeyRing and Certitude. We believe that provider organisations have a unique role to play in supporting disabled people to live more fulfilling lives. VODG: Shaping lives, supporting excellence


46

Agenda Consulting Successful organisations in the future will be those that maximise the capability and engagement of their people and make their organisations a great place to work. We are a people research agency that helps not for profit organisations drive forward this agenda. We undertake research to enable organisations to listen to and understand their people better:

Employee Surveys

Volunteer Surveys We provide consultancy expertise to develop people strategies and processes:

Reward

HR Strategy and Effectiveness

HR Consultancy

Organisational Change

Bespoke Benchmarking We run sector-wide benchmarking studies to provide hard evidence that supports decision making:

Third Sector HR Benchmarking – People Count Third Sector

Third Sector Finance Benchmarking – Finance Count

Volunteer Management Benchmarking – Volunteers Count

Law HR Benchmarking – People Count Law

Insurance People Benchmarking Our conferences aim to share good practice and provide inspiration for those leading change:

Third Sector Strategic People Conference

Third Sector Reward Conference

Third Sector Employee Engagement and Communications Conference To find out more about how we can help your organisation to achieve success through its people, please contact us: Agenda Consulting The Jam Factory 27 Park End Street Oxford OX1 1HU www.agendaconsulting.co.uk T: 01865 263720 F: 01865 791325

www.agendaconsulting.co.uk

Agenda ConsultingSuccessful organisations are those that maximise the capability and engagement of their people and make their organisations a great place to work.We are a people research consultancy that helps not for profit organisations drive forward this agenda.

We undertake research to enable organisations to listen to and understand their people better:• Employee Surveys

• Volunteer Surveys

We provide consultancy expertise to develop people strategies and processes:• Reward

• HR Strategy and Effectiveness

• HR Consultancy

• Organisational Change

• Bespoke Benchmarking.

We run sector-wide benchmarking studies to provide hard evidence that supports decision making:• Third Sector HR Benchmarking –

People Count Third Sector

• Third Sector Finance Benchmarking – Finance Count

• Volunteer Management Benchmarking –Volunteers Count

• Law HR Benchmarking – People Count Law

• Insurance People Benchmarking.

Our conferences aim to share good practice and provide inspiration for those leading change:• Third Sector Strategic People Conference

• Third Sector Reward Conference

• Third Sector Employee Engagement and Communications Conference.

To find out more about how we can help your organisation to achieve success through its people, please contact us:

Agenda ConsultingThe Jam Factory27 Park End StreetOxford OX1 1HU

T: 01865 263 720F: 01865 791 325

finance count 2014 - agendaconsulting.co.uk

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