4.14 Forecasts of expenditure were prepared by the Agency's financial advisers, Capita, and included in the business case to demonstrate how value for money would be achieved. Figure 14 shows the expected expenditure on the key IT services up to 31 December 1999 and the actual expenditure that has been incurred.
4.15 The savings on the cost of desktop services were achieved despite the Agency having 2,200 non-standard items instead of the 380 they had included in the projections in the business case. Charges levied by Radio Spectrum International are based on the numbers of such items in use. Radio Spectrum International and CMG agreed, in the spirit of partnership, to waive charges for most of these non-standard items. We estimate that this saved the Agency up to £500,000 in the year ended 31 December 1999. This waiver is now recognised contractually in a new agreement that came into effect on 1 January 2000 (paragraphs 3.27 and 3.28).
4.16 The overspend of £800,000 on development and optional services was due to expenditure on items and projects that had not been foreseen when the partnership agreement was signed. Unforeseen items of expenditure included a computer system necessary to support the auction of licences to operate parts of the radio spectrum, enhancing the system supporting the new general ledger, various studies into new requirements and the Agency's move into a refurbished headquarters building.