Annual Report 2011 - Fai

Notes to the financial statements
Structure and content
Article 2427 of the Civil Code, the following information is
provided:
Historical cost of assets subject to finance
leases, at end of period 236,791
Accumulated depreciation at end of period (42,622)
Liabilities to other lenders (148,344)
Reversal of deferred amounts of lump-sum
payment (18,066)
Total gross effect on equity 27,759
Financial expenses for the year (5,6565)
Theoretical amortisation (28,415)
Finance lease payments deducted in the year 53,209
Gross effect on income for the year 19,138
Tax effect (6,009)
Net effect on result for the year 13,129
In order to hedge the risk of fluctuations in the interest rate
applicable to the finance lease, an interest rate cap was
entered into as a hedge, with the intention of holding such
fluctuations within a ceiling at 3 per cent.
STATIONERY AND PRINTING
These expenses amounted to € 142,593, a decrease of €
67,860.
OTHER OPERATING EXPENSES
Other operating expenses amounted to € 1,268,131, an
increase of € 121,251 [over 2010], and comprised the
following:
Administrative operating costs 364,215
Ordinary operating expenses 833,796
Charges for taxes and other duties 88,120
Total 1,268,131
Administrative Operating costs primarily comprised Insurance
Premiums, of € 186,439; bank charges on our bank accounts
of € 79,248; and € 48,571 for participation in courses.
Ordinary operating expenses primarily comprised personnel
and advisors’ travel expenses, of € 435,667; cleaning
expenses, of € 109,008; security services of € 125,277; and
the costs of audioguides, entertainment expenses, and fuel
costs. Charges for taxes and other duties regarded stamp
duty, registration duty, council taxes, securities taxes, and
other local taxes.
PERSONNEL
In 2011, personnel costs amounted to € 7,669,150, inclusive
of entitlements accrued as at 31 December 2011, an increase
of € 843,411 compared to 2010, including € 129,953 for
individual settlements with employees.
Beginning in 2011, this item includes the staff employed
under other types of contract, as follows:
Employees 5,947,050
Associates 1,156,501
Professional advisors 565,599
Total 7,669,150
The following table shows the average number of employees
during the year, by location and contractual classification.
Milan and Rome offices At Properties, and regional offices Total
2010 2011 2010 2011 2010 2011
Executive employees 4 4 4 4
Office staff 58 60 56 51 114 111
Temporary staff 0 6 15 20 15 26
Total 62 70 71 71 133 141
DEPRECIATION AND AMORTISATION
Depreciation and amortization amounted to € 216,459, and
comprised the following:
Intangible assets:
Costs with long-term utility 66,829
Assets on loan or under licence 8,850
Tangible fixed assets
Plant and machinery 32,722
Sundry equipment 28,568
Photo library and camera equipment 160
Motor vehicles 676
Furniture and office furnishings 18,206
Office equipment 60,448
Total 216,459
RESERVES FOR LOSSES ON RECEIVABLES
The provision of € 35,326 was made in order to adjust the
reserve to reflect receivables that at present are considered
difficult to collect.
INVENTORIES
INCOME AND CONSUMPTION BY WAY OF SALES
In 2011, there was a profit on sales of € 154,870, a decrease
of € 30,218 compared with the previous year. Detail is
provided in the following table. Sales to third parties of:
Books and sundry items 431,297
Purchases from third parties (285,132)
Change in inventories 8,705
Inventory obsolescence 0
Consumption of stock (276,427)
Margin 154,870
FINANCIAL OPERATIONS
2011 showed an operating profit of € 122,459, an increase of
€ 7,163 compared with the previous year. The Generali shares
paid higher dividends than in 2010, offsetting an increased
use of bank lending.
SECURITIES
• Interest on [debt] securities 150,717
• Dividends on shares 103,892
• Gains on sales of securities in the year,
as a result of sales made at prices higher
than book prices 26,286
• Losses on sales of securities in the year,
as a result of sales made at prices lower
than book prices (0)
• Adjustment to allowance for excess of
cost for marketable securities (69,077)
Total 250,937
INTEREST AND ALLOWANCES
Interest on bank accounts (128,002)
Other interest (566)
Discounts and allowances 90
Total (128,478)
EXTRAORDINARY OPERATIONS
EXTRAORDINARY INCOME (EXPENSES)
These amounted to a net positive balance of € 28,191, and
comprised:
Sale of property in Lavagna 113,178
Sale of land and building in Borgosesia 5,262
Sale of depreciated assets 1,500
Winding-up of la Fonte S.a.s. 16,628
Clients, prior years 10,875
Sums previously set aside for suppliers’ invoices
not received 33,043
Holiday periods for previous years, recovered 38,966
Insurance payments, prior years 10,279
Suppliers’ invoices, prior years (79,963)
Incorrect provision for rental fees (21,424)
Incorrect provision for receivables (30,000)
Revocation of contributions (15,000)
Writedown of Milan guarantee (22,803)
Refuse, council tax, registration taxes, prior years (9,264)
Other extraordinary income and expenses (28,086)
Total 28,191
MANAGEMENT OF THE PROPERTIES
ORDINARY COSTS OF THE PROPERTIES
RESTORATION AND RENOVATION WORK RECOGNISED
AMONG FIXED ASSETS
This amounted to € 8,654,556 and related to the value
of restoration and renovation work, and extraordinary
maintenance, performed on Foundation-owned property and
on property owned by others, as follows:
Restoration of Foundation-owned properties 5,173,495
Extraordinary maintenance on
Foundation-owned properties 2,287,900
Total, Works recognised as assets 7,461,395
Purchase of fixed assets 1,124,348
Work on third-party property 68,813
Total, work fully covered 1,193,161
ORDINARY INCOME OF THE PROPERTIES
Specific contributions
These amounted to € 5,274,546, and covered work that
accrued in the year, on the following:
Restoration of Foundation-owned properties 2,730,074
Extraordinary maintenance on
Foundation-owned properties 1,351,311
Total, Provisions for Specific Contributions 4,081,385
Covering fixed assets 1,124,348
Covering work on third-party property 68,813
Total covering works 1,193,161
It should be noted that accordingly € 3,380,010 was borne
by FAI.
EQUITY INCOME AND EXPENSE
These represent the income and expense for which there is
largely a balancing item among the items of Equity to offset
the result of Core Operations, as follows:
PROPERTY VALUE ADJUSTMENTS
These amounted to € 7,461,395 and increased the value of
property.
ALLOCATIONS TO SPECIFIC CONTRIBUTIONS
These amounted to € 4,081,385, and increased the Provision
for Specific Contributions which is included among the
Foundation’s Equity.
OTHER INCOME RECOGNISED IN EQUITY
RECAPITALISATION CONTRIBUTIONS
These amounted to € 747,688, an increase over the previous
year.
RESTRICTED GIFTS
These amounted to € 1,500,000, and regarded the donation
that accompanied the non-institutional asset, Villa Flecchia in
Magnano.
ALLOCATION TO RECAPITALISATION FUND
This amounted to € 747,688, a figure that increased the
Recapitalization Fund included in Equity.
ALLOCATIONS, RESTRICTED DONATIONS
This amounted to € 1,500,000, a figure that increased the
Reserve for Operating Activities that is included in Equity.
TAXES FOR THE YEAR
Taxes for the year amounted to € 192,594, and related to
accrued corporation tax in an amount of € 32,764, and
accrued production tax (IRAP) in an amount of € 159,830.
DEFICIT FOR THE YEAR
The deficit for the year amounted to € (442,871).
on behalf of the Board of Directors - Chair
Ilaria Carla Anna Borletti Dell’Acqua
86 Annual Report 2011 Annual Report 2011 87