Report of the epi-Finances Committee
C. Quintelier (BE), Chair
T. Powell (GB), Secretary
The 90th Meeting of the Finances Committee took place as a video call on 3 April 2023, with continuation of the meeting scheduled on 19 April 2023 owing to the length of the original agenda. The Treasurer, Deputy Treasurer and Internal Auditors attended as invited guests. The Executive Director, Head of Finance and Ms Ullmann acting as Committees Co-ordinator also attended.
The Treasurer presented a summary of the overall financial performance of epi, which showed a deficit for 2022 of approximately €204.000. This was acceptably in line with the budgeted deficit of €193.000.
Both revenues and expenses in 2022 were lower than expected. The reduction in revenues derived in part from reduced fees for educational events and lower income for the EPO CSP and EQE. Expenses were lower than planned as a result of committee meetings continuing to be organized as on-line events; lower Secretariat expenses; and reduced EPO CSP and EQE expenses. The lower income from educational events was explained in part by the inability at the time of setting the budget to be certain of the impact of the UP/UPC.
Some investments had been required to be revalued at reduced valuations, owing on the one hand to the financial market situation at the end of 2022 and on the other hand to (strict) HGB accounting rules.
The Committee commented on reported costs in relations to Board and Council meetings that had been held in Malaga. These were higher than in some other cities but apparently were unavoidable because of difficulty in locating suitable venues in the larger cities in Spain. The Committee urges a financially prudent approach to the selection of meeting venues.
Overall the Committee was satisfied with the Treasurer’s report.
The Committee reviewed the financial implications of current IT projects in epi, and is satisfied with the situation.
The Treasurer presented a revised budget, including a proposal to celebrate the 50th Anniversary of signing of the EPC by holding a dinner intended primarily for the members of the EQE Examining Committees. After extensive debate the Committee approved the revised budget, but suggested some details of the celebratory dinner that the Treasurer indicated he would consider.
The Committee received a report of the Internal Auditors. The Internal Auditors do not recommend any changes to the manner of handling invoices and other instruments in the Secretariat at this time. However some amendments to the By-Laws were proposed, in particular to remove the Terms of Reference (which either are repetitive of the By-Laws, or which do not make sense). The Committee contributed to the proposed wordings, including making the appointment of External Auditors mandatory and involving the Committee in the selection of the External Auditors; and gave its approval of the proposal.
There was discussion of whether meetings of the Board of epi on cost grounds could continue to be held away from the Bayerstrasse office location. The Committee drew attention to the fact that one of the reasons invoked to have more office space at the Bayerstrasse was to have a meeting room for the Board; and urges caution over the costs of such events away from the Bayerstrasse.
The finance function within the Secretariat has become considerably more analytical in recent months. The Committee was able to review some highly detailed, and useful, information that had been prepared by the Finance Department. The Committee urged that such information always be available at its meetings.
A proposal to amend the Guidelines for Reimbursement was presented and debated by the Committee. After extensive review an amended wording was approved.
The Committee received with approbation the news that the underwriters of the epi professional liability insurance product are willing to provide an add-on insurance module, at a cost of €500 per year, to cover situations when a European Patent Attorney acts as a recorded representative in litigations before the UPC.
