On the implementation of the JINR budget for 2022

Three years ago, when the COVID-19 pandemic began, JINR had to drastically adapt to the restrictions and difficulties concerning it: new working conditions for staff members, more complex supply chains for purchased goods and the impossibility of traveling abroad. On the whole, JINR then managed to successfully deal with these tasks thanks to persistent efforts of JINR Directorate, the staff of laboratories and subdivisions.

The events of the past year entailed unprecedented challenges and difficulties for JINR that have had a direct impact on its activities. Due to the ongoing tense geopolitical situation affecting a number of Member States, the impact of these events on JINR cannot yet be completely estimated.

The main source of funding for the activities of the Institute consist contributions from Member States. Their receipts in 2022 amounted to 89% of the plan. Due to sanctions against Russian banks, some Member States have been unable to pay their contributions in full due to blocked transfers. Also, some Member States have refrained from paying contributions to JINR due to geopolitical tensions. In total, in 2022, the actual receipt of funds from all budget revenue items amounted to 201.7 million US dollars.

In 2022, the actual expenditures of the JINR budget amounted to 230.5 million US dollars. The excess of actual expenditures over the revenues was due to the use of the 2021 residual budget.

The main priorities of JINR budget expenditures in 2022, as before, were:

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

- ensuring a competitive level of remuneration of staff members and implementation of incentive payments depending on the results of work;

- development of JINR engineering infrastructure;

- enhancing working and living conditions for staff members and their families, as well as invited specialists.

Budget expenditures are focused on two main areas of ensuring the activities of the Institute. These are staffing expenses that determine the remuneration level of the Institute's staff and material costs that mainly concern the implementation of scientific projects and the development of engineering infrastructure.

In 2022, staffing expenses accounted for 44% of the total budget expenditures and material expenses - for 40%. Other budget expenditures are related to repair work, service costs, provision of electricity and utilities, as well as international cooperation costs.

The Directorate of the Institute tries to make every effort to ensure that staffing expenses provide a competitive level of remuneration and the attractiveness of the Institute for highly qualified scientists and young specialists. In the difficult conditions of the past year, measures were also taken to preserve the human resources of the Institute, concerning foreign workers.

In 2022, actual staffing expenses amounted to 100.9 million US dollars. They include wages, charge on payroll and social assistance. The wages of all employees of the Institute were indexed by 4% from 1 April, 2022. The other part, equivalent to 6% of the wage increase, was paid in bonuses to compensate for the increased rate of inflation. Also, employees were paid out from the incentive fund that was established to increase the motivation for efficient performance, as well as to ensure incentive payments to depend on the results of work.

Actual material expenses in 2022 amounted to 92.7 million US dollars. They consist of expenses for materials, equipment, design and construction of buildings, facilities and technological systems, payment for research carried out by third parties.

Material expenses for 2022 were implemented by 68%. The shortfall was largely due to difficulties in purchasing high-tech equipment from foreign companies caused by sanctions against Russia. The main reasons for the delay in the use of funds were the breach of current contracts by counterparties, the need to search for new suppliers, changes in supply chains, extension of delivery deadlines, delays in the preparation of project documentation. Some of these issues have already been addressed, while others are currently met.

In general, despite serious difficulties with procurement, all scientific projects are currently carried out in accordance with plans. The major projects at the Institute that require the most material resources are the development of the NICA accelerator and the DRIBs-III cyclotron complexes, the implementation of the Neutrino Research Programme, the development of the IBR-2 nuclear research facility and spectrometers, as well as the development of the Multifunctional Information and Computing Complex.

Significant financial resources were allocated in 2022 for the modernization of the engineering infrastructure of the Institute. Further work on the reconstruction of two electrical substations at the JINR sites to provide electricity to the experimental facilities has been carried out, the construction of a new checkpoint at the DLNP site that meets all modern requirements for convenience and safety has been started, the reconstruction of the heating network from the boiler house to the VBLHEP site has been carried out, work on the modernization of the physical protection system of the DLNP site has been implemented and the establishment of an emergency technical centre has been completed.

It should be noted that in order to implement the objectives of the Seven-Year Development Plan of JINR for 2017-2023, almost all the balances of material resources unused in 2022 have been transferred to the JINR budget for 2023 to ensure the planned expenditures for scientific projects and the development of engineering and technical infrastructure.

In 2022, due to the difficult geopolitical situation, some of the plans for the development of international cooperation were not implemented. Due to the forced reduction in the number of business trips and conferences, the actual expenses for international cooperation amounted to 59% of the planned USD 8.9 million.

Actual expenses for the repair of buildings and facilities amounted to USD 11.1 million in 2022, or 89% of the plan. About half of these funds were used by laboratories for the repair of technological, industrial and administrative buildings and facilities located at the sites of the Institute. The other half was used to repair the Institute's administrative and social facilities located outside the Institute's sites. Here, it is worth highlighting the overhaul of the new building of the JINR University Centre, located at 4a Vavilova Street.

In conclusion, I would like to say that in order to improve the efficiency, clarity and transparency in the use of funds available to JINR, intensive work is currently underway to improve the system of budget planning and control, in particular, taking into account the planned changes in the organization of scientific activities at the Institute.

Nikolay KALININ, Head of Budget and Economic Policy Department of JINR,
based on the report at the CP session