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Explanatory notes to the balance sheet

Assets

Stocks relate to vaccines held by RIVM for the National Immunisation Programme and increased by € 1.1 million compared to 2013. Stock per balance date is the position at one particular time and depends on the supply and use of vaccines. In 2014, there was shorter provision for vaccine expiration because of improved stock management.  The intention is a decrease in the safety stock level to prevent unnecessary capital investment and vaccine expiry. In December 2014, agreements with the Ministry of Health, Welfare and Sport on acceptable stock levels were re-assessed. During the year, supply agreements were revised with various suppliers. The effect of the decrease in stocks will only become visible in 2015 because of the long running agreements and contracts with suppliers.

Accounts receivable decreased by € 4.8 million, of which about 40% is the consequence of the lower position at year end of the internal services to BBIO, and also by decrease in various accounts receivable.

The decrease in outstanding amounts (€ 20.5 million) largely relates to the settlement of claims by the parent Ministry from 2013 (€ 36 million) with use of equity capital as a consequence of discontinuing the financial agreement for the vaccine stock out of € 18.2 million. From 2013, RIVM has no longer been permitted to finance the vaccine stock with extra equity capital above 5% of the income standard as set out in the Agency regulation rules.

For an analysis of liquid assets, see overview of cash flow for 2014.

Liabilities

The movement in equity capital is a follows:

Movement in equity capital (amount x € 1,000)

As at 31-12-13

  36,586

Use of equity capital 2013

-18,213

Result 2014

     -551

As at 31-12-14

  17,822

The 2014 negative result of -€ 0.6 million is the balance of the income and expenditure for the year. This balance has been added to the operating reserve, which includes the previous Reserve for Acceptable Costs (RAK) of the RIVM integrated regional vaccine administration as at 2008 (end 2014: € 8.3 million). With agreement of the Ministry of Health, Welfare and Sport, since 2008 RAK has been applied to the cost of re-organisation of the previous vaccine administration. Based on the average income of RIVM in the last three years, the equity capital amounts to € 17.5 million. This means that in 2014, RIVM was € 0.3 million above the permitted equity capital. In line with the Agency regulations rules, the first supplementary budget act 2015 will set out how this is to be rectified.

Movement in provisions is as follows:

Movement in provisions (amount x € 1,000)
 

Personnel

Reorganisation

Projects

Other

Total

As at 
31-12-13

3,106

2,495

6,630

-

12,231

Contributions to operations

1,143

 

   461

    15

  1,619

Withdrawals

  -612

  -447

  -690

 

 -1,748

Release

  -609

   -48

    -83

 

    -740

           

Movement

   -78

  -495

  -312

    15

    -870

Total as at 31-12-14

3,028

2,000

6,318

    15

11,361

The provision for personnel comprises future obligations, such as rights of former employees as on the balance date. The provision for the reorganisation costs includes the foreseen contribution to the pension rights of transferred employees. These provisions are based on calculation at the time of the agreement (2008) and as a result, payments may be higher or lower at the time of transfer. For administrative efficiency, the choice has been made not to do a recalculation. The insufficient level of cover of the pension funds hampers the actual transfer and payment.

The provision for projects is a contribution to foreseen shortfall in implementing these projects. Under short-term liabilities, a sum of € 1.0 million has been taken up for the short-term component of the total € 11.4 million in provisions.

Amounts payable decreased by about € 8.7 million in respect to the previous year. The difference can be explained by the fact that two major amounts payable had very little owing at the end of 2014.

Finally, the outstanding amounts decreased by about € 12.3 million. This decrease was largely compensated by the lower level for advance payments (work still be carried out on different projects and clients).

As of 31-12-2014, there were the following claims/debt with regard to the ministries and agencies: debtors € 3.3 million (VWS € 0.2 million), outstanding receivables € 19,0 million (VWS € 18.2 million), creditors € 0.2 million (VWS € 0.0 million) and outstanding payable € 41.9 million (VWS € 28.9 million).

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