ADMINISTRATION DIVISION COSTS Vestcor administration clients continue to benefit from our cost-effective not-for-profit model and our focus on their specific needs and service requirements. Our overall Administration Division costs of $10.7 million increased by approximately $744 thousand, or 7.5%, versus the prior year. Year ended December 31, 2021 ($ thousands) Salaries and benefits
$
Information systems
6,793
Year ended December 31, 2020 ($ thousands) $
6,430
1,399
1,394
Client directed administration
594
467
Office rent
495
468
Office and business
348
305
Professional services
314
245
Amortization
726
615
$
10,669
$
9,924
The Administration Division expenses include salaries and benefits for approximately 84 employees on a full-time, part-time, casual or contract basis. Salaries and benefits for the year ended December 31, 2021 were 5.6% higher than the costs in 2020. This reflects modest annual compensation increases as well as the filling of vacant positions. Further information on Vestcor’s compensation program can be found in the Compensation Discussion and Analysis section of this Annual Report (see page 39). Information systems costs continued to represent a large portion of the Administration Division’s annual expenditures; however, with the implementation having been completed on the new administration system in 2020, information systems costs remained consistent with the prior year. For the year ended December 31, 2021, total information systems costs were $1.4 million and only increased by 0.4% over 2020. Office rent costs of $0.5 million for the year ended December 31, 2021 were 5.7% more than the prior year, mainly as a result of double rent being paid for January 2021 during our office move to 140 Carleton Street. Professional services costs in the amount of $0.3 million for the year ended December 31, 2021 were $0.1 million more than the prior year reflecting the costs associated with the preparation and audit of Vestcor’s initial Service Organization Control Report on internal controls of financial reporting. Amortization costs of $0.7 million reflect the continuing amortization of the administration system project costs of approximately $4.5 million.
VESTCOR ANNUAL REPORT 2021
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