Docstoc

Expenditure

Document Sample
Expenditure Powered By Docstoc
					    Human resources                           Communication                             Financial situation




I          n order to successfully
     complete its missions,
     the Institut Pasteur imperatively
     requires
     new financial resources. Launching
     new research programmes,
     modernising equipment, recruiting
     new talent, and expanding its




                             >
     international role cannot be
     implemented
     without real
     growth in financing.




                                                                                                                                      Report
                                                                                                                                      Annual
The financial situation, whilst remaining   That trend results from the high-volume                    Expenditure



                                                                                                                                      2000
fundamentally healthy, has become           and regular bequests from which the
more difficult.                             Institut Pasteur benefits, the capital     In the year 2000, the Institut Pasteur
                                            gains achieved through industrial          running expenses amounted to FF
Over the last ten years, the Institut       restructuring and management of            1,008 million, as against FF 964 million   1
Pasteur has been able to markedly           the Institute's fixed and mobile assets.   in 1999 (excluding carry-over of


                                                                                                                                      Pasteur
expand its research potential,              Growth in equity constitutes an            resources unused in previous years).
through the favourable trend in its         essential objective for the Institut
own resources (in particular, industrial    Pasteur insofar as equity generates        Personnel expenditures accounted for
royalties), and continuing State            new operating resources, which will        a little more than half of all expenses
subsidies, despite the setting of           be indispensable in coming years.          (51%). This ratio is normal for a
                                                                                                                                      Institut



an upper limit.                                                                        research organisation, whose perfor-
                                            In order to give fresh impetus to          mance essentially depends on the
The growth rate was particularly high       the Pasteur mission, take up the public    number and quality of its scientists.
over the first half of the period, in       health challenges of the 21st century      Operating expenditures (purchasing,
parallel with bringing three important      and maintain the Institut Pasteur          external expenditures, taxes and
new buildings into service: the AIDS        position on the international scene,       duties, etc.) accounted for 38% and
and Retrovirus building, the Medical        it is today important to increase          depreciation and provisions for 11%.
Biology building, and the Scientific        financial resources.                       Those proportions have changed
Information Centre.                                                                    little over the last ten years.
                                            In order to do so, considerable work
Over the same period, the policy of         has been done on developing
actively reconstituting the Institut        sponsorship and the revenue derived
Pasteur heritage has borne fruit            from research spin-offs but those
since, in twelve years, the Foundation      measures are not liable to have an
equity has increased four-fold.             immediate effect.
                                                           > S t r u c t u re o f f i n a n c i n g i n t h e ye a r 2 0 0 0
                                                                                                                 Excluding carry-over of resources unused
                                                                                                    in previous financial years and recovery of provisions




                                 Structure
                              of financing                                                                                                  (2)


               Three headings have been selected in
               order to analyse the financing struc-
               ture of the Institut Pasteur everyday
               operations:

               >   Revenue from own activities;

               >   Sponsorship and heritage revenue;
Report




               >   The State contribution.

               Revenue from own activities
               (FF 473 million as against
Annual




               FF 421 million in 1999) contributed
               44.4% of the Institute financing in
               2000. Industrial royalties account for
               60% of that total. The remainder was
2000




               generated by sales and services rendered   is reported as an operating resource        contribution), the research contracts
               (expert assessments and agreements         (the part exceeding that threshold          and agreements concluded with
               with industry and international            is posted as an exceptional resource,       public research organisations, such
           2   organisations, Medical Centre consul-      then posted in the endowment                as the ANRS, Inserm and CNRS, and
               tations and vaccinations, etc.).           fund). The annual coverage of depre-        the incentive credits allocated by
Pasteur




                                                          ciation of acquisitions financed by         the Ministry of Research (10% of the
               Giving and endorsement revenues            gifts is also taken into account.           State's contribution). Those amounts
               (FF 258 million as against                                                             are equivalent to the funds managed
               FF 251 million in 1999) generated          Heritage revenue, which accounted           and accounted for by the Institut
               24.2% of the Institute everyday            for 7.2% of the Institute overall           Pasteur. They do not take into account
Institut




               resources in the year 2000.                resources in the year 2000, cover           the salaries of people working on
                                                          current financial revenue, rents            the Institut Pasteur campus but
               Sponsorship accounts for almost            and agricultural revenue.                   remunerated by public organisations
               three quarters of that total.                                                          and the universities, which amount
               Sponsorship consists in donations          The Government contribution                 to about FF 100 million, or the credits
               and bequests, the apprenticeship           amounted to FF 335 million (as against      to support programmes allocated
               tax and miscellaneous subsidies.           FF 319 million in 1999) and accounted       to associated units, but managed
               The amounts reported for that item         for 31.4% of the Institute current          by those organisations, which amount
               in the profit-and-loss account with        resources in the year 2000. The major       to a little less than FF 20 million
               respect to the donations and               part (86%) of the State contribution        in the direct and indirect State
               bequests are different from those          consists in the Ministry of Research        contributions, assessed at 38% of
               actually received during the financial     subsidy. The contribution also includes     the expenditure made on campus,
               year. Pursuant to the articles of asso-    the subvention from the Ministry            irrespective of whether that expenditure
               ciation, only the unit part of donations   of Health for the activities of the         relates to running the Institut Pasteur,
               and bequests under 1 million francs        Reference Centres (4% of the State's        public bodies, or universities.
    Human resources                          Communication                                    Financial situation




                                                                      > C h a n g e s i n re s o u rce s
                                                                                     Excluding carry-over of resources unused during
                                                                                   previous financial years and recovery of provisions




                Changes in
             the financing
                 structure
Over the last ten years, the current
resources of the Institut Pasteur have
grown, overall, by 70% in value,
equivalent to 44% volume growth.
This marked increase in the Institute
potential is practically exclusively
related to the first half of the period,




                                                                                                                                             Report
since current resources grew
by 40% between 1990 and 1995 and
4% between 1995 and 2000.

The revenue from own activities




                                                                                                                                             Annual
accounted for 44.4% of resources
in 2000 as against 32.5% in 1990.
The growth is the consequence
of markedly-contrasting trends in




                                                                                                                                             2000
the components of that aggregate.          from the incorporation of consultancy             Sponsorship and heritage revenue
                                           and vaccination activities, previously            showed a two-fold increase in their
Sales and services, which generated        conducted in the context of the                   contributions to the Institut Pasteur
over 60% of revenue from own               Institut Pasteur Hospital, which shut             resources over ten years. The growth        3
activities at the start of the period,     down at the end of 1999.                          mainly results from the extremely-


                                                                                                                                             Pasteur
decreased in relative importance due                                                         positive trend over the first part of
to discontinuation of the manufacture      In 1999 and 2000, the amount of                   the period with regard to the number
of the main products marketed              industrial royalties received by the              and amount of bequests to the
by the Institut Pasteur. However,          Institute increased three-fold in volume.         Institut Pasteur. The growth was
in 1992, the trend was reversed,           Over the same period, the contribution            further amplified by application of
                                                                                                                                             Institut



mainly as a result of the sustained        of that revenue to the Institute budget           the reform of the articles of association
growth in the revenue from medical         increased from 12 to 26%.                         in 1992. The reform resulted in a
laboratory tests, a consequence of         The Institut Pasteur has thus become              greater proportion of the gifts being
the reorganisation of that activity        the research organisation receiving the           posted to operating resources
within the framework of the specialised    highest amount of industrial royalties.           (FF 1 million instead of FF 500,000
Medical Laboratory Centre and the          These results are the fruit of a policy           in the form of donations or bequests).
very positive course of the volume of      of developing relationships with                  It should also be noted that
research contracts with the European       industry, encouraging the conclusion              the reorganisation of fund collection
Union in recent years. The reduction       of agreements, royalties related                  resulted in a change in the method
observed in 1999 reflects a loss           to research projects, and use of the              of accounting for donations, which
of revenue from medical laboratory         Pasteur brand. However, since 1997,               are now shown as current revenue.
work, subsequent to divestment             those resources have grown more                   Prior to 1995, those measures thus
of those activities to Laboratoire         slowly, pointing to a reduction in                resulted in a noteworthy progression
Pasteur Cerba. The resumption              coming years as HIV- and hepatitis-               in current resources derived from
of growth in 2000 mainly resulted          related patents expire.                           sponsorship.
                                                                        > Changes in the financing
                                                                                         st r u c t u re
                                                                                             Excluding carry-over of resources unused during
                                                                                           previous financial years and recovery of provisions




               The heritage revenue (rents, agricul-
               tural revenue and current financial
               revenue) have grown, on average,
               6.5% in volume per year over the
               last ten years. The trend is the result
Report




               of the policy of reconstituting the
               heritage, implemented over a number
               of years. However, the fall in interest
               rates from 1993 has limited growth
               over the second half of the period.
Annual




               With 18% growth in value, the State
               contributions in 2000 were equivalent,
               in constant francs, to those in 1990.
2000




               The State contribution to the Institute
               budget has thus fallen, in relative
               terms, from 46% in 1990 to 31.4%
           4   in 2000.                                   The contribution of the Ministry
Pasteur




                                                          of Health to financing the Reference
               The proportion remained close to           Centres activities has fallen in volume
               50% over several years, until the end      by 10% over twelve years. Currently,
               of the eighties. The proportion then       the contribution accounts for less than
               fell rapidly, over the phase of strong     40% of the cost of those activities.
               growth potential for the Institute,
Institut




               and has remained stable since 1995,        Public research contracts and agree-
               between 31 and 33%. The trend              ments accounted for between 6 and
               closely reflects that of the Ministry of   12% of all the State contributions
               Research subsidy, which is the major       over the period. The preponderant
               State contribution. That subvention        share of the ANRS with respect to
               partially accompanied the growth           financing AIDS research (on average,
               in the Institute budget until commis-      more than half throughout the period)
               sioning of the AIDS and Retrovirus         should be noted. In 1998, the Ministry
               building in 1991. The amount of the        of Research set up the National Fund
               subsidy first stabilised, and then was     for Science (FNS) and, in particular,
               reduced from 1993. The trend was           programmes devoted to microbiology
               reversed in 1999, by allocation of         and genomics. This enabled the trend
               an additional subsidy of FF 6 million,     towards reduction in the amount of
               inclusive of VAT, which was confirmed      public financing, observed since 1993,
               in the year 2000.                          to be reversed.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:5
posted:9/23/2011
language:English
pages:4