A good year in terms of finances
The PRH achieved most of the financial targets for the year 2021 laid out in the performance agreement between the agency and the Ministry of Economic Affairs and Employment.
Our financial situation remained stable. Income from ordinary operations and budget funding covered the expenditure arising from the agency’s operations.
In 2021, our income (including net income and appropriations from the state budget) totalled EUR 60.8 million and the expenditure EUR 59.4 million.
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.
In the supplementary budget, EUR 400,000 was also granted for combating the grey economy and EUR 35,000 for rental compensation.
Income per result area in 2021
In 2021, our income totalled EUR 54.36 million. The income per result area:
- Enterprises and Corporations EUR 31.39 million;
- Patents and Trademarks EUR 22.94 million; and
- Support Services EUR 0.03 million.
Total operating income and expenditure
According to the income and expenditure sheet, our income from operations totalled EUR 54.4 million, which consisted almost exclusively of income from ordinary operations.
The income rose by EUR 344,000 from the previous year. This was mainly the result of an increase in the number of trade register notifications.
Operating expenditure totalled EUR 60.6 million, an increase of about one per cent from the previous year.
Staff expenses (EUR 29.5 million) were the biggest expenditure item, accounting for nearly 49 per cent of the total expenditure. Staff expenses increased by EUR 650,000 and the number of personnel by about six person-years.
Purchases of services, the second biggest expenditure item, increased by only about EUR 200,000. However, it should be noted that the rate of growth has been extremely rapid over the past few years.
Expenditure 2021
In 2021, expenditure totalled EUR 60,9 million. Expenditure items were:
- staff expenses EUR 29,5 million;
- services purchased EUR 23,1 million;
- depreciation EUR 5,7 million;
- rents EUR 2,0 million;
- other expenses EUR 0,4 million;
- raw materials and consumables EUR 0.2 million; and
- internal expenses EUR 0 million.
Balance sheet
The balance sheet total on 31 December 2021 was EUR 28.7 million. The balance sheet total declined by about EUR 800,000 as the balance sheet value of intangible assets decreased by the same amount.
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 11.9 million).
A total of about EUR 4.7 million was spent on investments in fixed assets (mainly data systems) during the year. Investments decreased by EUR 800,000 from the previous year.
Current receivables, which are included in inventories and current assets, remained at previous year’s levels.