Services that matter
Annual report of the Department of Service & Innovation 2024
Finances
The department's 2024 annual report reflects the budget allocations, revenues and expenditures of the units that have belonged to the department since its establishment in 2019.
The department's total operations came to 4.611 million króna, compared to the year's revised budget of 4.171 million króna. Department operations were therefore about 440.5 million króna over budget, or about 10.6% above the year's budget allocations.
The department's total investment for the year was 2.624 million króna, while the year's budget allocated 2.615 million króna for investments.
Total operations
As mentioned earlier, the department's operating costs were 4.611 million króna. IT Services operations accounted for 2.690 million króna of this total, making it the largest single operating component at about 58% of the department's total operating costs.
IT Services went over its annual budget by a total of 539 million króna. Internal rent from the Real Estate Fund accounted for 177 million króna of this overage. Other operating costs have also risen considerably because of service contracts, many of which are linked to index adjustments.
Technical service needs at workplaces have grown over recent years, while the number of workplaces has increased and workplace relocations have become more frequent, partly because of mold and building maintenance issues. To address these needs, the city has had to hire additional contractors for managing and maintaining its IT infrastructure.
The department's facility services operating costs — covering Höfðatorg and City Hall operations — totaled 548 million króna, or about 12% of the department's total operating costs.
Operations services came in 58 million króna over the annual budget. The scope of work and resulting costs for development projects to upgrade key infrastructure at City Hall went beyond budget projections for the year. This stems partly from far more extensive work required for property maintenance and electrical infrastructure. Costs have also increased because of electricity rate increases and enhanced security measures in administrative buildings.
Total operating costs for services and transformation came to 409 million króna, or about 9% of the department's total operating costs.
Operations by units
| Unit | Actual 2024 | Revised budget 2024 |
Variance between actual and revised budget in % |
Actual 2023 | Change between years, in % |
|---|---|---|---|---|---|
| Reykjavík Municipal Archives | 199 | 202 | -1.7% | 204 | -2.4% |
| Data service | 70 | 101 | -30.1% | 61 | 16.3% |
| Information and Records Management | 160 | 193 | -17.0% | 139 | 14.9% |
| Facility services | 548 | 490 | 11.8% | 462 | 18.5% |
| Digital Reykjavík | 343 | 352 | -2.5% | 303 | 13.2% |
| ÞON central office | 192 | 210 | -8.4% | 171 | 12.6% |
| IT services | 2,690 | 2,151 | 25.1% | 2,379 | 13.1% |
| Service and transformation | 409 | 473 | -13.6% | 375 | 9.0% |
| Total | 4,611 | 4,171 | 10.56% | 4,094 | 12.6% |
Investments
The department's total investment in digital transformation during 2024 was 2.624 million króna. The year's investment plan allocated 2.615 million króna.
The largest portion went to software and new information systems at 971 million króna, representing about 37% of the year's total investment.
Investments in product development and process digitalization totaled 590 million króna, or about 22% of the year's total investment.
Investments in user equipment and IT infrastructure totaled 578 million króna, representing 22% of the year's total investment.
