From official sources

On the execution of the JINR budget for 2021

Despite the coronavirus pandemic still ongoing in 2021, as well as restrictions and difficulties concerning it, the result of execution of the JINR budget for 2021 can be considered very good. The intensive work of JINR Directorate, employees of Laboratories and departments, the efforts of the Plenipotentiaries of the JINR Member States ensured the execution of the Institute's budget at a high level that allowed to carry out the main tasks for the development of the Institute and the implementation of scientific activities for 2021.

JINR budget revenues in 2021 were executed by 98% and amounted to 209.4 million US dollars. The main source of funding for JINR's activities is contribution from the JINR Member States that accounted for 97% of the total amount of the revenues. The income also includes the payment of arrears of Member States for the payment of contributions, funds received under agreements on scientific and technical cooperation with JINR non Member States and other income.

In 2021, JINR budget expenditures amounted to 228.1 million US dollars. The excess of actual expenses over revenues was possible by using the 2020 residual budget.

The main priorities of JINR budget expenditures in 2021 were:

- ensuring funding for scientific projects in accordance with their implementation schedules;

- ensuring a competitive level of compensations and benefits of employees and the implementation of incentive payments depending on the work results;

- development of the engineering infrastructure of JINR that is necessary for the modernised and developed experimental facilities;

- improvement of working and living conditions for employees and their families, as well as for invited specialists that directly affects the attractiveness of the Institute as a place of work.

JINR budget expenditures in 2021 were executed by 86% that is significantly higher than in previous years (in 2019-2020 this figure was about 75%). Such a high result in the execution of expenses was possible both due to the vigorous activity of Laboratories and departments for the implementation of scientific projects and the development of engineering infrastructure, as well as regarding the activities of JINR Directorate aimed at improving the efficiency of budgetary processes and cost optimization.

Budget expenditures are focused on two main areas of the Institute's activities, on which its development as an international research organisation largely depends. These are personnel costs that determine the level of remuneration of the Institute's employees, and material costs, mainly concerning the implementation of scientific projects, as well as the construction and development of experimental facilities. In 2021, personnel costs accounted for 39% of all budget expenditures and material costs - for 47%. Other budget expenditures are related to repair work, service costs, provision of electricity and utilities, international cooperation costs.

The most affected by the ongoing coronavirus pandemic in 2021 was the development of international cooperation. Due to air travel restrictions and travel bans, international cooperation costs amounted to about half of the $7.1 million budgeted.

The salary of all employees of the Institute was indexed from 1 April, 2021 by 4% in order to compensate for inflation. Also, personnel costs include additional funds that are aimed at supporting employees that participate in scientific projects, grants for young scientists, researchers and support for highly qualified researchers (candidates and doctors of science). Directorate of the Institute tries to make every effort to ensure that personnel costs provide a competitive level of remuneration and attractiveness of the Institute for highly qualified scientists and young professionals.

Material expenses in 2021 amounted to USD 106.0 million. They include the purchase of materials, equipment, expenses for the design and construction of buildings, structures and technological systems, payment for commissioning, payment for research work performed by third parties.

82% of material expenses were for the implementation of scientific research and scientific projects of the Institute. The most large-scale projects at the Institute, requiring the greatest amount of resources, are the development of the NICA accelerator complex, of the DRIBs-III cyclotron complex, the implementation of the Neutrino Research Program, the development of the IBR-2 nuclear research facility and spectrometers and the development of the Multifunctional Information and Computing Complex. These projects are financed in full compliance with the JINR Seven-Year Development Plan for 2017-2023. The most costly JINR project is the project of development of the NICA complex, for which 43.4 million US dollars were used in 2021 that is half of all actual material costs for scientific projects.

Material expenses were also used in 2021 for the development of engineering infrastructure: reconstruction of electrical substations and reconstruction of heating networks and water supply networks at the VBLHEP and DLNP sites, modernisation of the video surveillance system at the DLNP site, establishing an emergency technical center and other work.

Material expenses were executed by 83% or 106 million US dollars, but almost the entire balance in the amount of 19.9 million US dollars was postponed to 2022 to fulfill the Institute's transferable obligations in accordance with the JINR Financial Rules in order to efficiently use budget funds and timely finance expenses.

Other budget expenses that can be discussed separately are repair costs. In 2021, 11.2 million US dollars were used to repair buildings and structures of the Institute. The need for these expenses is related to the maintenance of facilities located both on the Institute's sites and outside them. Compared to previous years, the actual repair costs in 2021 decreased due to the completion of the reconstruction of the JINR hostel-hotel at Moskovskaya 2, one of the main facilities of JINR to accommodate the staff of the Institute, as well as participants of meetings, conferences and schools.

In conclusion, I would like to note that there are regular improvement activities on the system of budget planning and control, as well as the accounting policy in order to increase the efficiency of using the resources available to the Institute and increase the transparency of reporting information that is necessary for the development of JINR as a modern international research organisation.

Nikolay KALININ,
Head of the Budget and Economic Policy Department