European investment in ECMWF

ECMWF is financed principally by contributions from its 34 Member and Co-operating States, which in 2014 totalled £42.0 million out of the Centre’s funding of £54.5 million (net of internal tax). Revenue from sales of data and products provided additional income of £4.7 million, while funding of £7.7 million from external organisations supported research and the other goals of the Centre. ECMWF continued to invest in its staff, infrastructure and systems to provide the highest-quality products to its Member and Co-operating States.

ECMWF’s budget remains on a cash basis and the Financial Statements include a reconciliation of the results under IPSAS and in cash terms. Under cash accounting, the Centre generated a surplus of £1.0 million in 2014, which is available either for future investment or distribution to Member States according to a decision to be made by the Council in 2015.

The Centre’s future pension and post-employment medical cost obligations have been valued at £181.3 million and are fully guaranteed by the Member States.

The main areas of expenditure were remuneration and related items (£24.2 million; £18.9 million net of internal tax), pension and post-employment benefits (£5.5 million), computer expenses (£15.1 million) and buildings (£3.8 million). Net finance costs were £4.9 million. Costs associated with externally funded research projects amounted to £7.5 million (£6.0 million net of internal tax, of which £5.0 million were personnel costs). Capital investment, principally in IT and infrastructure,
totalled £2.3 million.

 

Statement of Financial Performance for the year ended 31 December 2014

Revenue £k £k
  2014 2013
Member & Co-operating States' contributions 41,997 41,184
Taxes 6,827 6,705
Externally funded income 7,700 6,876
Sales of forecasts and data 4,748 4,450
Other operating revenue 19 45
  61,291 59,260
Expenditure £k £k
Personnel costs 24,223  23,667
Pension and post-employment benefits 5,547 5,825
Buildings expenditure 3,847 3,837
Computer expenditure  15,086 14,769
Other operating expenditure 3,283 3,115
Externally funded expenditure1 7,524 7,037
  59,510 58,250
Operating surplus 1,781 1,010
Net finance costs  (4,859) 

(6,087)

Net deficit for the year (3,078) 

(5,077)

1 Externally funded expenditure is inclusive of optional programme expenditure

 

Reconciliation of IPSAS and Cash Results £k  £k
Net deficit for the year (3,078) (5,077)
Assets capitalised in the year (2,261) (3,620)
Depreciation in the year 2,457 2,279
Spend on commitments from previous years 1,847 2,136
Commitments carried forward to future years (2,092) (1,847)
Finance costs for post-employment benefit 4,681 6,260
Post-employment benefit (556) (37)
Accruals (181)  678
Prepayments 210 344
Change in inventory (81) 391
Other IPSAS timing differences 67 527
Surplus per cash accounts 1,013 2,034
Member States’ Contributions £k
  2014
Austria 898
Belgium 1,129
Denmark 759
Finland 595
France 6,363
Germany 8,139
Greece 743
Iceland 32
Ireland 498
Italy 5,016
Luxembourg 95
Netherlands 1,888
Norway 934
Portugal 539
Slovenia 115
Spain 3,415
Sweden 1,081
Switzerland 1,105
Turkey 1,159
United Kingdom 6,044
  40,547
Co-operating States’ Contributions £k 
  2014
Bulgaria 53
Croatia 72
Czech Republic 209
Estonia 24
Former Yugoslav Republic of Macedonia 10
Hungary 153
Israel 205
Latvia 35
Lithuania 47
Montenegro 4
Morocco 93
Romania 202
Serbia 45
Slovakia 97
  1,249
Single Additional Contributions 201
Total Member & Co-operating States’ Contributions 41,997