Summary of activities undertakenhttps://www.anacom.pt/render.jsp?contentId=55129
Activity of ICP-ANACOMhttps://www.anacom.pt/render.jsp?contentId=55130
Human resourceshttps://www.anacom.pt/render.jsp?contentId=55131
Investmenthttps://www.anacom.pt/render.jsp?contentId=55132
Balance and statement of resultshttps://www.anacom.pt/render.jsp?contentId=55133
Annual Report and Accountshttps://www.anacom.pt/render.jsp?contentId=55134
Opinionhttps://www.anacom.pt/render.jsp?contentId=55135
Summary of activities undertaken
Under the terms of the legal and statutory provisions, specifically as set in point d) of article 33 of the Statutes of ICP - Autoridade Nacional de Comunicações (ICP-ANACOM), as approved by Decree- Law number 309/2001 of 7 December, it is our duty to present a report on our inspection of, and to issue our opinion on, the Report and Accounts of ICP-ANACOM for the financial period ending 31 December 2009.
The Audit Committee has held meetings and monitored the most relevant aspects of the management of this Authority, and:
- examined, on a sample basis, the available financial information, with favourable outcome;
- was informed of the External Audit Report, performed by the company PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda., responsible for auditing the accounts of ICP-ANACOM in the 2009 financial year, which entity cooperated with the Chartered Accountant in the exercise of their specific functions.
We examined the Report and Accounts of ICP-ANACOM, presented by the Management Board, and we verified their clarity and detail in respect of their characterization of the activity carried out during the 2009 financial year.
Activity of ICP-ANACOM
ICP-ANACOM is a legal person governed by public law, endowed with administrative and financial autonomy and its own assets. Its responsibility is to advise the Government in areas of coordination, oversight and planning of the communications sector, and to regulate, supervise and represent the sector under the terms of its Statutes, performing its activity under the tutelage of the Ministry of Public Works, Transport and Communications.
For the financial period being analyzed, the mission of ICP-ANACOM was to ''regulate, supervise and monitor the communications market, in order to ensure that all citizens benefit from diversity of choice and universality of access to (electronic and postal) communications services in a market governed by conditions which are conducive to innovation, investment and the efficient provision of service, guaranteeing to final consumers both quality and affordability, besides its responsibility in contributing to the development of the European Union's internal market''.
Regarding the activity of ICP-ANACOM, we refer to the 2009 Activities Report, which summarizes the main occurrences of the financial year under review.
We also highlight the work of the Advisory Council, supporting and participating in the definition of the general guidelines governing ICP-ANACOM’s remit.
Human resources
In the area of human resources, this Authority remained focused on achieving excellence in performance and on the development of competencies of its entire staff.
It should be noted that the average number of employees, which includes employees on permanent contracts, on requisition and on fixed-term contract, excluding those providing service to other entities, as of 31 December 2009, was reported at 393, representing an increase of about 1.6% when compared to the same period of the previous year.
The Training Plan for the financial year under review reflects the needs identified across different area to further develop skills, while the training provided by ICP-ANACOM to its staff remains a crucial factor in the enhancement of staff performance.
Investment
As can be seen in the following table, the investment made by ICP-ANACOM in 2009 totaled 2,567,636 euros, falling about 32% in comparison with the previous financial year.
|
Investment |
2009 |
2008 |
Variation |
Variation |
|
Budget |
4,981,500 |
4,719,200 |
262,300 |
5.56 |
|
Execution |
2,567,636 |
3,771,229 |
(1,203,593) |
(31.92) |
|
Deviation |
(2,413,864) |
(947,971) |
|
|
|
Outstanding |
(48.46) |
(20.09) |
|
|
Analysing the values of execution and comparing them with the budgeted amounts, it is found that the value of the former is lower than that of the latter, with a deviation of around 48% on 31 December 2009.
As far as the execution of investment is concerned, the items of most consequence are IT equipment (1,689,502 euros) and Basic and Radio Equipment (588,417 euros).
Balance and statement of results
The base-structure of the Balance of ICP-ANACOM on December 2009 was as shown in the following table:
|
Items |
2009 |
2008 |
Variation |
Variation % |
|
Assets |
112,920,032 |
118,631,576 |
(5,711,544) |
(4.81) |
|
Equity capital |
52,941,910 |
59,915,461 |
(6,973,551) |
(11.64) |
|
Liabilities |
59,978,122 |
58,716,115 |
1,262,007 |
2.15 |
Below some points are made with reference to the Balance of ICP-ANACOM:
- The variation in the Assets of the Authority is due mainly to the decline seen in cash in hand (5,253,839 euros), due to the cash surpluses resulting from lower investment offset by the sponsorship, not provided for in the Budget and amounting to 10,000,000 euros, granted to FCM - Fundação das Comunicações Móveis (Mobile Communications Foundation), which sponsorship was approved by Order of the Minister of Public Works, Transport and Communications of 24 April 2009. We must also refer to the reduction of approximately 571,270 euros recorded in the fixed assets category, resulting from the disappearance of stamps from the philatelic collection in the custody of Fundação Portuguesa das Comunicações (Portuguese Communications Foundation).
- In terms of this Authority's equity, the variation reported over the previous year results from the following effects: variation in net results for the year (9,258,622 euros), application of part of the 2008 net results for the special reserves (2,856,218 euros), as well as the adjustment of special reserves following the disappearance of stamps mentioned above (571,270 euros).
- Regarding the liabilities of ICP-ANACOM, we point out the item related to provisions for ongoing legal proceedings, with the amount of 49,320,163 euros, which was increased during this period by 337,213 euros. This results from a growing number of legal proceedings which have been brought against this Authority, particularly in connection with appeals against decisions taken concerning the regulation of the market. If these proceedings were to be won by the operators concerned, they may be granted the right to receive compensation from ICP-ANACOM. Given the great difficulty in determining the amount of compensation, but taking into account the need to constitute a provision of an appropriate value, this Authority based the level of provision on the opinion of the lawyers handling the cases. It should be further noted that the value of the provision on 31 December 2009 corresponds to approximately 50% of the sums sought in the various cases, with the exception of those processes where a greater level of risk justifies a different level of coverage.
The following table describes the variation registered in the various items of results between 2009 and 2008. Accordingly:
|
Items |
2009 |
2008 |
Variation Value |
Variation % |
|
Operating income and earnings |
74,780,405 |
71,610,694 |
3,169,711 |
4.43 |
|
Financial income and earnings |
2,501,542 |
3,446,942 |
(945,400) |
(27.43) |
|
Extraordinary income and earnings |
601,151 |
414,249 |
186,902 |
45.12 |
|
Total income |
77,883,098 |
75,471,885 |
2,411,213 |
3.19 |
|
Operating costs and losses |
63,245,624 |
51,031,865 |
12,213,759 |
23.93 |
|
Financial costs and losses |
18,365 |
43,830 |
(25,465) |
(58.10) |
|
Extraordinary costs and losses |
21,513 |
539,972 |
(518,459) |
(96.02) |
|
Total costs |
63,285,502 |
51,615,667 |
11,669,835 |
22.61 |
|
Operating results |
11,534,781 |
20,578,829 |
(9,044,048) |
(43.95) |
|
Financial results |
2,483,177 |
3,403,112 |
(919,935) |
(27.03) |
|
Extraordinary results |
579,638 |
(125,723) |
705,361 |
561.04 |
|
Net result |
14,597,596 |
23,856,218 |
(9,258,622) |
(38.81) |
Below, we present a number of references concerning the Financial Statements of ICP-ANACOM:
- Over the previous year, income and earnings increased by about 3%, whereas costs and losses reported an increase of about 23%. Consequently, the net result for the 2009 financial year was reported as 14,597,596 euros, whereas in 2008 it was reported as 23,856,218 euros, corresponding to a decline in results of 9,258,622 euros (39%).
- In terms of operating results, a reduction is reported of around 9,044,048 euros, due in large part to the granting of sponsorship to FCM with a value of 10,000,000 euros.
- Regarding the financial results, a reduction is reported of about 27% over the previous period, resulting from the sharp decline in the average interest rate associated with term deposits, and a smaller amount of invested capital. Application was lower, due mainly to the following factors: the issue and collection of invoices, performed on an annual basis according to the new tariff model, was affected only at the end of the year; and payment regarding the application of the results of 2008 was made earlier than in the previous year.
- Regarding the extraordinary results, ICP-ANACOM has reported an increase of around 561% over the previous period. This change resulted from the following situations: The accounting of the adjustment of the specified value set aside for 2008 productivity bonuses, to the sum of 242,030 euros, whereas the value actually awarded was lower than that forecast; and the forfeiture in favor of ICP-ANACOM of a provisional bond provided by RNT - Rede Nacional de Telecomunicações, S.A., which forfeiture resulted from breach of the regulation of the public tender for the allocation of the right of use of frequencies, on a national basis, to provide the publicly available land mobile service (Regulation no. 474/2008 of 22 August), amounting to 250,000 euros.
The remaining variation is reported and duly reasoned in the 2009 Management Report, as well as the Report and Accounts for the same year.
Annual Report and Accounts
The Audit Committee has conducted its activity in order to verity the financial, accounting, administrative and management aspects and subsequently issue an opinion on the Annual Report and Accounts. It is governed in this matter by the provisions of ICP-ANACOM's Statutes, supplemented by those applying to public undertakings;
The 2009 Annual Report and Accounts submitted by the Management Board clearly defines the macro-economic and sectorial framework in which the activity of ICP-ANACOM takes place, as well as its activities, the evolution of human and material resources, and the economic and financial situations regarding the financial period ended on 31 December 2009;
The financial statements and accounting systems supporting said statements appear to globally fulfill the Official Accounting Plan, and adequately and substantively express ICP-ANACOM's assets as on 31 December 2009, as well as the results of its operations during the financial period ending on that date;
As mentioned in notes 3 and 31 of the Annex to the Balance Sheet and to the Statements of Results (ABSR), on 1 October 1996 ICP-ANACOM constituted an autonomous pension fund to cover and fund liabilities for the payment of pensions to the staff co-opted from former CTT - Correios e Telecomunicações, E. P..
In accordance with an actuarial study carried out by the pension fund management company -BPI-Pensões, on 31 December 2009 the current value of total liabilities for active and retired staff transferred from former CTT and recruited into ICP-ANACOM was estimated at 24,217,110 euros, which sum is fully financed;
In line with the procedure adopted in previous years, ICP-ANACOM chose to recognise the totality of healthcare liabilities of retired and active personnel, resulting in an increase of around 44,000 euros. We were informed of the actuarial study conducted by the company Watson Wyatt (Portugal), Unipessoal Limitada;
We note that in this financial year ICP-ANACOM reported an amount of 1,045,649 euros concerning participations, shares, costs and other expenses, under the terms of the protocol signed by the founders of Fundação Portuguesa das Comunicações (Portuguese Communications Foundation) and about 4,425,648 euros regarding the contribution to the budget of Autoridade da Concorrência (Competition Authority) (in accordance with Note 52 of the ABSR);
On 22 April 2009, Administrative Rule no. 423/2009 of the Ministers of State and Finance and of the Controlling Minister was published, which determined the transfer of a part of the net results of 2008 of ICP-ANACOM, to a total amount of 21,000,000 euros, to Fundação para as Comunicações Móveis (Foundation for Mobile Communications) (20,000,0000 euros), and to Entidade Reguladora da Comunicação Social (Media Regulatory Authority) (1,000,000 euros).
Opinion
In light of the above, it is our opinion that approval should be given to:
a) the Annual Report and Accounts submitted by ICP-ANACOM's Management Board, in respect of the financial year ended on 31 December 2009; and
b) the proposed application of the 2009 net result, to the amount of 14,597,596 euros, by means of the transfer of 2,189,639 euros to ''Free reserves'', for the purpose of constituting statutory capital, under the terms of Administrative Rule no. 1534-A/2002 of 23 December, and of 12,407,957 euros as ''Delivery to the State'', corresponding to 85% of the financial year's net results.
Finally, the Audit Committee acknowledges and is grateful for all collaboration provided by the Management Board and all the contacted Services.
Lisbon, 19 April 2010
The Audit Committee,
Dr. Henrique Armando Antunes Ferreira, Chairman
Oliveira, Reis & Associados, SROC, Lda.
Represented by
Dr. José Vieira dos Reis, ROC no. 359, Member
Dr. Duarte Nuno de Carvalho Gomes de Castro, Member
