Activities and Financial Results

From the economic and financial point of view, the working model of the company is based on two distinct framework agreements underwritten with the MEF that have three-year duration and regulate its two principal activities, the Program for the Rationalization of Public Expenditure in Goods and Services and the development of information technology services for the MEF. 

On the basis of the aforementioned two activities that are delegated to Consip, the Ministry provides the financial resources that are required for corporate activity through two different remuneration systems:  a pre-defined amount (which includes a fixed and a variable sum, the latter tied to the achievements of the goals that have been jointly defined) for the financing of costs incurred by the Program for the Rationalization of Public Expenditure, and a daily rate for all the operational resources employed in the management and development of information technology services. Also in this second method of remuneration, a fixed quota (5% up to 2005, 10% from 2006 on) is paid upon achievement of the goals that have been jointly identified.

These financial resources are classified as  “returns for compensation”, to which are added the “returns for reimbursements”, a term that covers all charges to the MEF relating to costs incurred through external suppliers for the implementation of projects, services, infrastructural rehabilitation, etc… that have been authorized in advance by the Ministry. These charges are invoiced without any mark-up or commission on behalf of Consip. 

The primary objective in the economic management of Consip (obviously a non-profit organization) is that of employing in the most efficient manner possible the resources disbursed by the MEF through the two currently standing framework agreements.

The following balance file details costs and returns of the 2006 financial year in relation to the previous year. Excluding costs and returns for reimbursed activities, returns for compensation amounting to 62.2 million euro have corresponded 55.4 million euros in operational costs.