Financial situation remained stable
The PRH achieved most of the financial targets for the year 2020 laid out in the performance agreement between the PRH and the Ministry of Economic Affairs and Employment.
Increase in the number of
applications and notifications helped us to keep our financial situation
on a stable basis. Income from ordinary operations and budget funding
covered the expenditure arising from the agency’s operations.
In
2020, our income totalled EUR 54 million and the expenditure EUR 53.3
million. The surplus, calculated on the basis of the income and
expenditure, totalled about EUR 700,000.
Financing structure
The PRH is a net-budgeted agency. This means that most of our operating costs are covered with the fees that we charge for such work as the processing of notifications and applications and for information services. By law, the fees must cover the expenditure incurred by the PRH in carrying out its tasks.
The
PRH received EUR 1.7 million in appropriations to cover expenses arising
from the processing of matters related to associations and religious
communities. The services performed for these customers are priced below
cost for social policy reasons.
The PRH was also granted
appropriations for the following tasks: oversight of foundations (EUR
650,000), information disclosure compensation (EUR 214,000), maintenance
of the register of industrial property attorneys (EUR 80,000),
monitoring of collective copyright management (EUR 120,000), and for
auditor oversight (EUR 2.3 million).
To maintain the BIS service, we received one million euros as a transfer from the Finnish Tax Administration and another one million in a supplementary budget.
In the supplementary budget, the PRH was also granted EUR 250,000 to improve the accessibility of the information system of the Register of Associations.
Income per result area in 2020
Total operating income and expenditure
According to the income and expenditure sheet, our income from operations totalled EUR 54 million, which consisted almost exclusively of income from ordinary operations.
The income rose by EUR 1.4 million from the previous year. The increase is mainly due to a higher number of trade register notifications and increasing demand for information services and for changes in associations’ rules and persons entitled to sign for associations.
Operating expenditure totalled EUR 60.1 million, an increase of about seven per cent from the previous year.
Staff expenses (EUR 28.9 million) were the biggest expenditure item, accounting for about 48% of the total expenditure. Decrease in the proportion of staff expenses is due to an increase in other expenditure items, such as outsourced services and depreciation.
Purchases of external services (EUR 20.9 million) were the second biggest expenditure item and they increased by about EUR 2.3 million from 2019. The increase is due to higher system maintenance expenditure and increases in small-scale systems development expenditure.
Balance sheet
The balance sheet total on 31 December 2020 was EUR 29.5 million. The balance sheet total increased by about EUR 200,000 due to the increase in long-term expenditure arising from higher investments in relation to depreciation.
The assets side of the balance sheet consists almost entirely of capitalised development items of data systems and related IT software.
The liabilities side of the balance sheet comprises State equity and the changes in PRH equity in the previous years (totalling EUR 14.4 million).
A total of about EUR 5.5 million was spent on investments in fixed assets (mainly data systems) during the year. Investments decreased by EUR 1.8 million from the previous year.
Current receivables, which are included in inventories and current assets, remained at previous year’s levels.
Expenditure 2020
