How the Court of Auditors judges the ISPI budget

16 November 20236 months ago babelfish

What emerges from the Court of Auditors' report on the ISPI (Institute for International Political Studies) budget

The Court of Auditors, with resolution no. 108/2023 , approved the 2022 management report of ISPI, the Institute for International Political Studies. In 2022 the Institute closed its income statement in balance: a result achieved thanks to the withdrawal of 105,705 euros from the fund for institutional activities to cover the actual deficit, of the same amount, of the 2022 management. For this reason the Court, among its recommendations , urges the Institute to monitor cost items more carefully "in order to ensure the maintenance of economic balance without having to resort to withdrawals from reserve funds" and to allocate the fund's resources for institutional activities "in the net assets by offering a representation of the same that is more in line with accounting principles".

WHAT IS ISPI

ISPI was founded in 1934 by a group of young scholars from the University of Milan and Pavia, as a study center focused on foreign policy, inspired by the model of the Royal Institute of International Affairs in London and the Foreign Policy Association of New York. The Institute pursues civic, solidarity and socially useful purposes, and operates under the supervision of the Ministry of Foreign Affairs and International Cooperation (Maeci). Specifically, ISPI deals with the "study and dissemination of the problems relating to international relations in the entire meaning of the term and in particular in their political-cultural, economic, institutional and strategic aspects". Therefore, the Institute's activities are concentrated in the area of research, the publication of periodicals, monographs, collections of documents, information bulletins, training and the organization of events.

HOW ISPI IS FINANCED

Until 2018, ISPI received the annual contribution from the state budget but from the "2019 Budget Law" ISPI, like other international bodies, can only benefit from contributions to research projects assigned on the basis of agreements stipulated following a public selective procedure. Therefore, in 2022 ISPI received funding for 6 projects, for a total amount of 124,000 euros, a reduction compared to the funding for 9 projects obtained in 2021 for 137,000 euros.

ISPI'S INCOME STATEMENT: DECREASES IN REVENUE FROM TRAINING ACTIVITIES

The 2022 income statement highlights, unlike recent years, a break-even result, the 2021 financial year, in fact, closed with a surplus of 22,832. This result was achieved thanks to the withdrawal of 105,705 euros from the fund for institutional activities to cover the deficit. In 2022 the value of production, which corresponds to the value of revenues and income, amounts to 5,991,556 euros, 169,983 euros less than in 2021. In particular, revenues from sales and services decreased by 70,105 euros, as did the item other revenues and income for 99,878 euros. Among the revenues, the item from training activities, research and conferences decreased the most, which recorded -574,980 euros.

On the other hand, the item concerning the members' shares is of the opposite sign, with a positive change of 9 percent (2,294,995 euros for the year 2022), and the item relating to the management of Palazzo Clerici, with a change of 53 percent one hundred (684,300 euros). Production costs also increased, which stood at 6,080,828 euros, compared to 5,700,035 euros in 2021. The change of 380,793 is due to the increase in costs for goods and services (198,291 euros) and of personnel costs (159,558 euros). Finally, the difference between revenues and production costs is negative for the 2022 financial year, equal to 89,272 euros, compared to a positive result of 461,504 euros for the 2021 financial year.

REVENUES FROM NON-PROFIT AND INSTITUTIONAL ACTIVITIES ARE DECREASING

Non-profit revenues also decreased, going from 3,301,305 to 3,173,888 euros, while the corresponding costs recorded an increase, from 2,872,932 to 3,180,991 euros. This means that there is a non-profit operating deficit of 7,103 euros (in 2021 there was a surplus of 428,373). Commercial revenues also decreased, going from 2,860,234 euros to 2,817,668 euros but production costs increased, from 2,827,103 to 2,899,837 euros: an operating deficit in the profit area amounted to 82,169.

For this aspect, the Court recommends the strengthening of planning activities, in conjunction with the supervising Ministry, and "careful and timely reporting necessary to encourage an orderly development of the profit area". Revenues deriving from institutional activities also decreased despite the greater income from membership fees: more than 191,000 euros compared to 2021. The remaining revenue items were also decreasing (-127,417 euros). In this regard, the Court recommends "the strengthening of planning activities, in collaboration with the supervising Ministry, and careful and timely reporting, necessary to encourage an orderly development of the profit area".

THE INCREASE IN ISPI STAFF COST

The cost that recorded the greatest difference compared to the year 2021 is that of personnel. This is a change equal to 79,571 euros due to the entry of two new employees. The Institute uses employees for administrative tasks and collaborators for all other tasks. ISPI's operational structure is made up of employees and external collaborators who are specialized and expert in the various sectors of activity. The staff in service in 2022 consists of a manager and 34 employees while there are 536 collaborators, with an increase of 30 consultancies compared to the previous year. The total cost for employees amounts to 2,064,328 euros while that for collaborators amounts to 1,361,416 euros. In 2021, personnel costs accounted for 33.42 percent of total production costs, in the 2022 budget, this item accounts for 33.95 percent.

THE RENEWAL OF THE BODIES AND THE EXTENSION SYSTEM UNTIL AUTUMN 2023

The ISPI statute provides that the bodies are renewed every three years. In November 2022, the assembly, given the delicate international situation and the reduced activity of the expiring bodies, due to the pandemic crisis in the two-year period 2020-2021, postponed the renewal of the positions until autumn 2023. This means that the bodies acted under a prorogatio regime. The president has expressed his desire to renounce the annual compensation (40 thousand euros) which will therefore not be paid for the year 2023. Among the Court's recommendations is a rapid return to ordinary management.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-la-corte-dei-conti-giudica-il-bilancio-dellispi/ on Thu, 16 Nov 2023 07:49:43 +0000.