2003 Annual Report

_{2. Sources of funding and the volume and structure of expenditure}

2. 1 Sources of funding

Funding for activities within the ESS sphere of responsibility is determined by the Act. Funding for unemployment insurance (unemployment benefits and unemployment assistance) is partly accrued through contributions by workers from their wages and by employers from the wages they pay, but mostly comes from other budget sources.

Funding for programmes carried out by the ESS, its professional tasks and ESS operations in 2003 was determined on the basis of a contractual relationship with the Ministry of Labour, Family and Social Affairs.

_{2. 2 Funding of programmes}

In 2003 a total of SIT 62,732,895,000 was paid from the budget as unemployment welfare, for the implementation of active employment policy programmes, and for scholarships. Expenditure in 2003 amounted to SIT 62,744,141,000. The 2002 revenue surplus of SIT 84,356,000, minus the 2003 revenue deficit of SIT 11,246,000, gave a total revenue surplus of SIT 73,110,000 in 2003.

Table I shows expenditure on the implementation of rights and other programmes.

Table I: Expenditure on programmes, 2002 and 2003

Attention needs to be drawn here to the fact that the ESS, as the designated user of a single accounts plan, recorded its business events in line with the provisions of the Accountancy Act and Slovene Accounting Standards, i.e. according to the principle of the origin of the business event and in line with the accountancy principle of cash flow.

_{2. 3 Funding of ESS operations}

Pursuant to the Accounting Act, the revenue and expenditure of the ESS are analysed in line with accounting standards, i.e. the principle of the origin of a business event.

Figure 6 shows expenditure on ESS operations in 2003.

Expenditure in 2003 amounted to SIT 5,907,676,000.

The largest proportion of ESS expenditure went towards staff costs (for the annual average of 859 employees, by working hours), which include the costs of 12 staff who were financed from its profitmaking activities.

In comparison with 2002, overall expenditure was down by 1.1% as a direct result of effective cost-saving measures and spending control.

ESS expenditure includes tax on wages paid, funds spent on leasing/final payments, and tax on commercial activities.

The difference between total revenue and total expenditure, i.e. the ESS operating results, was SIT 34,305,000.