UK Fte (full time equivalent) - help!

[magicone99]

Hello fellow Accountants!

If anyone could be help on this I would be very grateful as its currently driving me insane!

its probably something very straight forward.

I am trying to tie back some budgeted data which is driven by contractor rates

For example if the charge out rate per person is £1500 at 240 days a year for 1 FTE , the money for the following 2.5 years is as follows

July - Dec (year 1 - 6 months only) £1,776,00
Year 2 (240 days) £5,116,800
Year 3 (240 days) £4,205,100

I work out the following FTE for each year

July-Dec (year 1 - 6months only ) 9.87 (£1,776,000/1500/120)
Year 2 12.41
Year 3 11.68

The average for 3 year FTE is 11.92

But this is bit that confuses me - if i then calculate 3 years of costs for 11.92 people this does not come back to my total figure of £11,098,800

I am sure this is something to do with the 6 month FTE calculation in year 1 but for some reason i just cannot seem to work this out.

I am trying to work out the accurate FTE's covered in this 30 month period.

Regards

James McPherson

 

[kirby]

Look at year 2.
Because for example
Yr 3 : 4,205,100 / 240/ 11.68 = your 1,500
But
Yr 2: 5,116,800/240/12.41 = 1,717.96. And not your 1,500