5
Annex A
HKG queries on 1992-93 outturn
Difference between original forecast
and actual expenditure
The original forecast for 1992-93 as supplied by HQBF in August 1991 estimated HKG liability at £57,060,000 and $954,238,000. These were adapted figures, which excluded sterling assessed costs to be paid in HKS.. The unadjusted
figures were quoted as £74,502,000
EKG liability
$734,469,000.
and
Underspend Factor
2.
HKG
After
considering past spending performance, and
accordance with recognised budget forecasting techniques, applied an underspend factor of 5% to the unadjusted
figures. This gave rise to discounted figures of £70,776,900
and $697,745,550.
Exchange Rate
3.
€ 1
The HQBF forecast had assumed an exchange rate of
= $12.60 for the purposes of adjusting the estimate of HKG
liability. HKG in its forecast was more conservative, and
assumed $13.50.
HKG Estimate
4.
Thus
the
amount sought by HKG in the draft
Estimates
for
1992-93
was $1,653,234,000
being
£70,776,900 x $13.5
$955,488,150 plus $697,745,550.