2018 budget confirms the new dynamics featured in the COP

The Institute’s COP features five guiding principles which underpin the establishment’s fiscal policy:

• increase our own resources as part of efforts to turn around public accounts through donor diversification policy at European and international levels
• protect and, as far as possible, bolster the jobs of tenured researchers and IT staff involved in scientific activities
• optimise the position of the Global South by renovating its network and the model used to forecast resource allocation abroad;
• secure the support functions through a policy designed to sustain employment and, in return, rationalise the use of short-term contracts funded by State subsidies
• optimise and rationalise support costs (real estate, purchases, IT, day-to-day management chain, etc.) to provide the room for manoeuvre required to fund the establishment’s priority actions and help with the overall balancing of IRD’s accounts

Key budget and account figures

At the end of the financial year, the amount of commitments fulfilled came to €226.947 million. The budget implementation balance shows a loss of -€3.044 million.

The public service grant (SCSP) is €202.596 million, compared with €205.810 million, i.e. a decrease of €3.214 million. This decrease is due to the management of the oceanographic research fleet being transferred to IFREMER (-€5.380 million) mitigated by budgetary additions, to compensate for the series of salary measures contributing to the civil servants’ pay rise (PPCR - Professional Progression, Careers and Pay protocol - index point, RIFSEEP - Payment regime taking into account roles, constraints, expertise and professional engagement - CSG social contribution), as well as a bonus paid to support the laboratories’ operating budget.

The share of national public stakeholder contributions remained stable (51% versus 53% in 2017), as did that of foreign contributors (15% versus 16% in 2018). Contract resources continued their upward trend, initiated in 2016, in accordance with the objective set out in the COP. The 2018 turnover was €31.071 million (versus €27.957 million in 2017), an increase of nearly 30% compared with 2015.

Cash expenses reported for 2018 stood at €223.270 million (authorised expenses) versus €237.504 million receivable income (securities issued). Taking into account the expenses and income calculated, the 2018 income statement reports a surplus of €14.310 million.

The preparation of two new investment plans in the IT (digital master plan) and real estate sectors (multi-annual real estate strategy scheme) led to the rescheduling of certain operations from 2019.

At the end of the 2018 financial year, gross working capital stood at €52.620 million versus €37.019 million in 2017, i.e. an increase of €15.600 million. It was notably boosted by sales of non-strategic property assets due to a desire to share resources with academic and university partners. The working capital immediately available (gross working capital minus commitments to be hedged and provisions) amounts to €33 million, putting IRD in a safe position in terms of budget, while giving it the investment capacity it needs for the 2019-2021 period to fulfil its strategic objectives.

Consolidated resources to the benefit of research

Having begun in 2015, the process aiming to strengthen the resources directly allocated to research units continues. The bonus granted by the ministry (€0.677 million) was entirely allocated to the laboratories via their regular allocation. This was supplemented by the reallocation of +€0.400 million via a “contract” bonus awarded to the units based on the volume of formalised contracts, and those who put a candidate forward for the ERC.

The units’ resources also increased with the creation of 7 additional IJLs (32 in total). In total, they increased by + €2.146 million, i.e. +15% compared with 2017.

Continued modernisation of financial guidance and management scheme

2018 was marked by the continuation of several projects intended to secure and optimise financial processes.

Consistent with the deployment of the SIFAC tool in 2017, the Institute continued its efforts to consolidate its reporting system, for external (regulatory reports arising from the “GBCP” decree, or Public Budgetary and Accounts Management) or internal purposes (data centre). This process improved the quality of information and made it easier to process for all users and decision-makers within the new budgetary and accounting framework resulting from the 2016 regulatory reform.

Furthermore, a new “tour operator” contract was signed this year. Developed by UGAP and AMUE, it paves the way for the complete digitisation of the mission process by 2020/2021.

Finally, in accordance with the action plan relating to internal budgetary and accounting control, two priorities were determined this year:

• training in internal control for the devolved network and the heads of newly created financial management departments within regional delegations
• start-up of financial control and evaluation missions in foreign representations.