Financial statement

Head with numbers
SFIVET/Anatina Meier
Graphic finance Balance Sheet
Graphic finance Income Statement
Graphic finance Cash flow Statement
Graphic finance Statement of changes in equity

According to Article 32 of the Ordinance of 14 September 2005 on the Swiss Federal Institute for Vocational Education and Training (SFIVET Ordinance; SR 412.106.1, status on 20 June 2017), SFIVET may allocate no more than the equivalent of 10% of each year’s budget to reserves. Grants are not included in the calculation.

Reserves are used to offset losses as well as to finance projects and planned capital expenditure.

Appendix to financial statement

5.1 General information

The Swiss Federal Institute for Vocational Education and Training (SFIVET) is a public institution with its own legal personality and registered office in Berne (Art. 2 of SFIVET Ordinance; SR 412.106.1).

According to Art. 25 of the SFIVET Ordinance, the Federal Council establishes the SFIVET Board’s strategic objectives. On 9 November 2016, the Federal Council adopted the strategic objectives to be pursued by the SFIVET Board for 2017–2020.

5.2 General information about SFIVET

Legal form

Public institution with its own legal personality

Activities

SFIVET is the Confederation’s competence centre for teaching and research in vocational pedagogy, upper-secondary-level vocational education and training, tertiary-level professional education and the cyclical review and revision of the training content of VET programmes for the whole of Switzerland. SFIVET’s activities include the following:

  • Provision of training to VET professionals
  • Provision of continuing training to VET professionals
  • Research and development in the VET field
  • Provision of services (particularly in relation to the cyclical review and revision of the training content of VET programmes)
LocationsLausanne, Lugano and Zollikofen

No. of employees at the end of 2018

170 (in FTEs)

 

5.3 Generally accepted accounting principles

The present financial statement was prepared in accordance with the accounting principles set forth in the SFIVET Ordinance, namely materiality, clarity, consistency and no-netting. It is also compliant with the accounting standards set forth in the Federal Act of 7 October 2005 on the Federal Financial Budget (Financial Budget Act, FBA; SR 611.0).

Materiality
All information needed for a quick and comprehensive assessment of current assets, finances and earnings should be disclosed.

Clarity
Information must be clear and comprehensible.

Consistency
Bookkeeping and accounting records should remain unchanged over an extended period of time wherever possible.

No-netting
The full amounts of revenue and expenses must be presented separately, without offsetting against each other.

Balancing and valuation
Balancing and valuation principles are determined on the basis of established accounting principles.

Foreign currency
SFIVET’s financial statement for 2018 is presented in Swiss francs (CHF). Items in foreign currencies are converted to Swiss francs at the closing rate for the transaction in question. Monetary assets and liabilities in foreign currencies are converted to Swiss francs at the closing rate on the balance sheet date and any exchange differences are reported in the income statement.

Revenue entries
Revenue entries use the date when goods are delivered or services rendered. If the point in time is a determining factor (e. g. date when a decision is reached or an authorisation is given), then the entry will be based either on the date when the service is rendered or the date when the decision is reached.

Cash
This includes cash and cash equivalents with a maturity period of 90 days or less (incl. time deposits), which can be readily converted to hard cash at any time. Cash is reported at nominal value.

Accounts receivable
The reported amounts correspond to invoiced amounts minus a lump-sum adjustment (for bad debts).

Property, plant and equipment
Property, plant and equipment (PP&E) are valued at the acquisition or production cost and depreciated on the income statement on the basis of the estimated useful life as indicated below:

Land/buildingsNone
Movable assets5 years
Machines and equipment5 years
Office machines5 years
Vehicles5 years
Computer hardware3 and 5 years
Computer software3 years

 

The principle of individual valuation applies (Art. 50 para. 3 FBA). According to Art. 56 para. 1 let. b of the Financial Budget Ordinance of 5 April 2006 (FBO; SR 611.01), movable assets must be capitalised when they reach the capitalisation limit of CHF 5,000. Accounting rules do not permit the bundled capitalisation of computer hardware.

Fixed assets are reported as property, plant and equipment if the acquisition value exceeds CHF 5,000. If the acquisition value is lower, then the fixed assets are directly reported as overhead.

Intangible assets
Computer software is listed under fixed assets (PP&E). Other than this, SFIVET has no other intangible assets.

Accounts payable trade
Accounts payable trade are estimated at nominal value.

Provisions
Provisions are established when a past event gives rise to a liability that is likely to cause a drain on resources and when the amount of that liability can be reliably determined. If the drain on resources associated with a given liability is deemed unlikely, then this liability is referred to as a contingent liability.

Provisions have only been established to cover anticipated costs associated with risk events that have already occurred. No provisions have been established for potential risk events in the future.

At the end of the year, provisions are established to cover untaken annual leave, untaken days off, unused flexitime, overtime and other time credits.

Equity
According to Art. 32 of the SFIVET Ordinance (SR 412.106.1), SFIVET may allocate no more than the equivalent of 10% of each year’s budget to reserves.

Reserves are used to offset losses as well as to finance projects and planned capital expenditure.

5.4 Explanations of balance sheet


I Cash

Graphic finance cash

II Accounts receivable

Graphic finance Accounts receivable

Trade receivables include registration fees and tuition for courses offered by the Basic Training Division as well as fees charged by the Continuing Education and Training Division. It also includes services provided by the Continuing Education and Training Division and the Centre for the Development of Occupations as well as ongoing projects carried out by the R&D Division. The decrease of CHF 225,000 is mainly due to the fact that SFIVET billed a smaller number of services in December 2018 compared to the same period in the previous year.

Other accounts receivable totalling CHF 70,000 include advances to suppliers, payment of loss of income insurance premiums in the event of illness or accidents as well as the final invoice from the Old Age and Survivors’ Insurance (OSI) office.

III Accrued income

Graphic finance Accrued income

This entry includes services provided in 2018 that will be billed in 2019.

IV Property, plant and equipment

Graphic finance Property, plant and equipment

The purchase of assets worth more than CHF 5,000 is entered here. The purchase of assets worth less than this amount is directly entered as expenditure.

The total decrease of CHF 262,000 is exclusively due to depreciation.

Graphic finance asset anlysis

V Current liabilities

Graphic finance current liabilities

Liabilities for social insurance and VAT stand at CHF 546,000. This amount also includes payments to the occupational pension fund totalling CHF 490,000 (2017: CHF 452,000).

VI Deferred income

Graphic finance deferred income

The decrease in accruals for external lecturers is explained by the fact that some of the services performed were invoiced more quickly in the reporting year and that costs are lower overall compared with 2017. The decrease in deferred revenues is due to the fact that the invoices issued in 2018 relating to 2019 were lower than in the previous year. The increase in ‘miscellaneous accrued expenses and deferred income’ is due, among other things, to obligations in connection with personnel changes in 2018.

VII Provisions

Graphic finance provisions

At the end of the year, provisions are made for annual leave, rest days, flexitime hours, over time and other time off (e.g. loyalty bonus) that remain unused by the end of the year. The increase of CHF 223,000 is mainly the result of resource-intensive strategic projects.

5.5 Explanations of income statement

VIII Revenue from services and research projects

Graphic finance Revenue from services and research projects

Revenue from services and research projects stands at CHF 3,202,000, which constitutes an increase of CHF 211,000 with respect to the previous reporting year. The increase is mainly due to the fact that the Basic Training Division and the Continuing Training Division were involved in more speaking engagements and other services. On the other hand, fewer third-party funds were secured by the Research & Development Division.

IX Revenue from fees

Graphic finance Revenue from fees

Income from fees was CHF 629,000 higher than in the previous year. The increase reported by the Basic Training Division is due in particular to the fact that the fee adjustment made in August 2017 took full effect for the first time in the reporting year.

X Operating subsidies from the Confederation

Graphic finance operating subsidies from the Confederation

Based on Art. 48 of the Federal Act of 13 December 2002 on Vocational and Professional Education and Training (VPETA, SR 412.10) and on Art. 29 para. 1 let. a of the SFIVET Ordinance of 14 September 2005 (SR 412.106.1), the Confederation provides operating subsidies to help pay for SFIVET activities and leasing costs.

The CHF 615,000 lower operating subsidy is due to the Confederation’s savings programme (1.5% reduction in inflation on non-committed expenditure).

XI  Personnel costs

Graphic finance personnel costs

SFIVET decreased the number of jobs compared to the previous reporting year by 0.5 positions, bringing the total down to 169.7 full-time equivalents by year-end. Overall, personnel expenses remained at the previous year's level. The increase in wages is due on the one hand to individual wage increases and inflation and on the other hand to the conversion of various fee-based contracts into fixed-term contracts. The lower costs for external lecturers and project partners are also due to the lower level of incoming orders for third-party funded projects and the fact that tasks were increasingly carried out internally.

XII Property expenditure

Graphic finance property expenditure

Property expenditure decreased by CHF 89,000 compared to the previous reporting year. The decrease in leasing costs for external course venues is due to the lack of additional external courses.

XIII Administrative expenses

Graphic finance administrative expenses

Administrative expenses were CHF 261,000 lower than in the previous year. In the ‘Printed material and publications’ item, the costs for external print orders and the procurement of printing material were lower. The lower costs for the item ‘Furniture, office supplies and equipment’ are due to the fact that the item ‘Modernisation of classrooms’ was largely eliminated in the reporting year.

XIV  IT costs

Graphic finance IT costs

The CHF 200,000 reduction in costs is explained in particular by the fact that more had to be invested in network and server infrastructure in 2017 and that leasing liabilities could be reduced in 2018 due to the replacement of notebook leasing contracts.

XV Financial result

Graphic finance Financial result

5.6 General comments

Auditing fees (BDO, Bern) in the reporting year amount to CHF 20,000 (previous year: CHF 32,000).

Leasing obligations

Operating leases relate exclusively to IT hardware.

Graphic finance leasing obligations

The decrease in leasing costs was due to the termination of certain leasing contracts from the previous reporting year. In addition, no new leasing contracts were signed in the reporting year.

Several liability

SFIVET jointly manages the ‘fordif’ continuing training programme with the University of Geneva, the University of Lausanne and the University of Teacher Education of the Canton of Vaud. Several liability may arise as a result of this partnership.

 

 

Events after the balance sheet date

Since the balance sheet date, no events have occurred that would have an impact on the information presented in the financial statement for 2018.

 

 

 

Zollikofen, 15 February 2019

 

Dr. Philippe Gnaegi  
SFIVET Board Chairman
Gabriel Flück
Head of Services
Title risk analysis

Carrying out a risk analysis
Each year, the SFIVET Board and the SFIVET Executive Committee carry out a systematic analysis of risks that could potentially skew the information presented in SFIVET’s financial statement. The main risks are assessed in terms of their potential severity and likelihood. These risks are eliminated or reduced whenever possible.