IIT’s Financial Statements are certified by an independent auditing firm (in 2015, Ria Grant Thorton). IIT prepares its financial statements in accordance with the accrual accounting principle, recognising contributions and costs based on their actual use, with the corresponding temporal variance between acquisition and actual financial collection of external projects (average duration of 3 years).
In 2015, State financing received through the Ministry of Economy and Finance amounted to approximately EUR 96 million (total gross financing totals EUR 98 million, from which EUR 2 million are subtracted for spending review activities), of which 85% was allocated to scientific and technological activities. Independent financial resources from fund raising activities amount to approximately EUR 25 million (130 million from 2006 to today), of which EUR 19 million were obtained as of 31/12/2015 as financial contributions and EUR 6 million in industry contracts, licenses, joint lab activities, production/sales of prototypes and samples and dissemination activities, as well as joint lab agreements and in-kind contributions. 2015 competitive funding also includes 2 grants from the European Research Council (ERC), added to the 9 ERC grants already obtained by IIT researchers (11 total ERC grants in 2016 with respect to 208 staff researchers of which 66 Principal Investigators).
IIT’s total external funding portfolio from its inception to 31/12/2015 amounts to EUR 129.7 million, broken down as follows: Competitive projects (EUR 107.1 million); Commercial projects (EUR 17.1 million); In-kind projects (5.4 million Euro). The acquisition of competitive projects has already grown to EUR 119.5 million during the first 4 months of 2016. Starting in 2009, year marking the completion of the Institute’s start-up phase, to 31/12/2015, IIT has recorded an annual average of approximately EUR 20 million in external funding.
The financial statements for the year ended 31/12/2015 counts cash and cash equivalents amounting to approximately EUR 452 million. Of these, EUR 426 million have been sourced using ordinary reserve savings allocated during the Foundation’s start-up phase (2005-2008), as a result of spending proportionate to actual operational requirements, and in particular to the growing scientific/technical staff (from zero units in 2005 to 1450 units in 2013). The remaining EUR 26 million in cash and cash equivalents derive from the Foundation’s direct activities. These savings are technically within the State’s available assets, deposited in a non-interest bearing treasury current account with the Bank of Italy. The nominal budget of approximately EUR 100 million/year is fully accounted for after reaching the set-up phase.
The allocation of funds from the transfer of assets of the former IRI Foundation (Decree Law 112 of 2008) is also recorded in the financial statements, which together with the share resulting from IIT’s direct activities (Competitive projects, Commercial projects, interest), represents a temporary allocation of funds designated by IIT for scientific and technological research projects. Once taken over by the IIT Foundation, the financial assets of the former IRI Foundation (composed of a different types of securities including bonds, capitalisation policies, repurchase agreements, French government bonds) were converted into securities suitable to the Institute’s nature and goals (public debt bonds issued by the Italian State), over a period of approximately 24 months. Interest-bearing assets are managed in accordance with principles of prudence, risk reduction and value preservation.