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SIPU ANNUAL REPORT 2013 SIPU Annual report 2013

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At SIPU, we can help your organisation to develop and grow in the following ways :

We believe that effective organisations are necessary for developing democracy, growing the economy, and for fostering an inclusive, equitable and enduring society. We call this developing organisational capacity.

About Us

Learning is at the core of capacity development. A learning organisation is constantly evolving and learning from its mistakes as well as successes. SIPU International help organisations with performance reviews, capacity analyses and evaluations which are all part of learning. Learning is also important on the individual level. SIPU trains thousands of people every year, and the combined effect of new knowledge and practical experience is increased capacity. But organisations also need institutional learning processes, which can only be established with committed leadership and management. SIPU is your partner in learning. Our role will depend on your needs and together we will design the solution which best fits your needs.

Change With learning comes the need for change. We need to adjust our business according to what works and what does not, and find the optimal way forward. But the world is also changing, and fast. We believe that all organisations need to be agile, and able to plan as well as implement change at minimum cost and disturbance. Change should become a natural part of development of an organisation. But what change? How much? When?

SIPU is Scandinavia’s leading consultancy and training organisation specialising in public sector development, and we are the number one provider of specialised training to the Swedish Civil Service. Our clients include national, regional and local governments, as well as private sector and civil society organisations. Our international development assignments and projects are commissioned by donor organisations such as Sida, GIZ, SDC, the EU, and the World Bank.

Our extensive knowledge and track record in organisational development and capacity building projects means that we can help you answer these questions. We can advise or be more hands-on depending on your sitaution. That we also have our own in-house experts for our core business areas is our warranty for achieving great quality and tangible change.

SIPU is a value driven organisation, meaning that you will find us trustworthy, dedicated and disciplined, and that our solutions are innovative, imaginative and ambitious. Despite the fact that we work with a variety of clients and projects sizes – ranging from a simple call to our Public Finance Management helpdesk to multi-million Euro projects spanning several years and countries – you will find that everything we do is tailored to your requirements and delivered to the highest possible standards.

Learning and change builds capacity which we define as the ability of an organisation to both set and achieve its targets. Performance is the measurement of how well this is done in terms of effectiveness and efficiency. SIPU is your partner also in performance management, checking how well the overall outcomes and impact of your organisation is in line with expectations from owners or stakeholders. That can be the starting point in a development process. It should be a regular feature of your business.

That’s why we think you will find no better sounding board for the “Scandinavian Model” than SIPU.

We make sure that everything we do is results driven and properly evaluated against predefined targets and measures. We also provide a first class project management and evaluation service for professional project implementation and for measuring the success of third party projects and programmes.

When it comes to training we are known for our innovative and “hands-on” approach. We recognise that every course participant can contribute to discussions with his or her own knowledge, expertise and experience. It is our unique method of enabling and exploiting this diversity of talent in the training room that makes our courses so dynamic. We employ more than 40 staff at our head office in Stockholm and another 70 or so staff in project offices abroad. We have a roster of close to 20 000 senior experts and an extensive network of partner organisations all over the world. Currently operating in more than 30 countries, SIPU has lent its expertise to over 90 countries across the globe. 2

Learning

SIPU Annual report 2013

Performance

Developing Organisational Capacity: Learning, Change and Performance


Introduction

An exciting year, as usual :

During our 20 th anniversary year 2012 we vowed to spend the next 20 years being a more extrovert and communicative company. In 2013, it was time to begin to realise this vision. We have arranged several public seminars during the year: in the spring we presented the latest news in public procurement for a large audience of Swedish civil servants, and in July we also hosted a debate on the role of Swedish public agencies in international development cooperation at Almedalen, Sweden’s largest political, governmental and media gathering, which is held each year on the island of Gotland. We have also become much more active and communicative on social media channels, including Facebook and Twitter. All in all, I think we are off to a good start. It is more about changing culture and attitudes in-house, than just the practical planning of events or press releases. We have to learn to become more communicative about all that we do, and that is going to take a while. Otherwise, two large projects related to civil society dominated 2013. We carried out the assessment of more than 30 NGOs aspiring for framework contracts with Sida. In terms of complexity and the number of person days in a limited time span, this was one of our most challenging assignments ever. Also, we managed to win the extension of the regional Technical Assistance to Civil Society Organisations (TACSO) project that we have implemented for four years in seven countries in the Balkan region. We have also implemented a new business and project management system which is greatly enhancing our financial control and work processes. As is always the case with implementing new financial systems, this did not happen without pain. However, now we are thankfully back on track and starting to realise some of the benefits. A major step forward for our training business was the new training venue on our premises which opened up in August. It consists of a large room, big enough for 25 people, a smaller room for group work and a cozy lounge area. This gives us the possibility to have more trainings “at home” and ensure a five star customer experience.

I believe that the world “ should be better organised.

At SIPU we are working hard towards that end.

Anders Olin Managing Director SIPU International AB SIPU Annual report 2013

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The SIPU 2013 Calendar:

January

June

20 th Anniversary Annual Mingle

Thai executives visit SIPU

SIPU holds its annual reception at its office in Stockholm with partners and clients. This year there is a special exhibition to celebrate the 20 th anniversary of SIPU International AB. As usual the place is packed and spirits high. The Economist

March

The Economist launches 2013 with a feature on the Nordic Model, paying particular attention to the public sector.

Fostering Interventions for Rapid Market Advancement (FIRMA) project helps companies in Bosnia and Herzegovina grow

February Strategic Budget Allocations For the second year in a row, Joint Annual Reviews for the Education and Forestry Sectors are successfully organised in Kosovo with the help of SIPU International. The Joint Annual Reviews gather all major stakeholders – governments, civil society, private sector and donors – to review the sector strategic plans and results obtained, and to discuss and agree on priorities for future strategic budget allocations including external financing.

7/2 Seminar at Sida on the findings of the pilot Reality Check programme

Bosnian companies visit the Swedish Nordbygg Fair in Stockholm, Northern Europe’s largest and most important construction industry event. During the trade visit, 15 bilateral meetings are organised between Bosnian and Swedish companies. Stats also show that sales of the companies taking part in the FIRMA project increase by 23% compared to those companies not part of the project. This figure rises further still when comparing exports.

April

Visit to the Chinese Academy of Governance Josua Falck and Tim Greenhow visit China and, under a Memorandum of Understanding with the Chinese Academy of Governance (CAG), hold lectures on the concept of Training of Trainers (ToT) at three provincial colleges in Chonching, Harbin and Beijing. As a result of discussions during the visits, SIPU is approached to undertake a more fully fledged programme on ToT at CAG, sponsored by the Chinese private sector. Breakfast Seminar SIPU holds a fully-booked breakfast seminar on the theme “Trends in Public Procurement – greater focus on strategic sourcing and good deals”, led by Magnus Nilsson.

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SIPU Annual report 2013

International Training Programmes 50 business leaders and high profile decision makers from Ethiopia, Kenya, Rwanda, Tan­zania and Uganda arrive in Stockholm for three weeks of training, lectures and study visits related to Private Sector Development. The programme aims to contribute to the development of a dynamic and sustainable private sector, and to strengthen collab­oration between the private and public sector for better functioning markets and improved integration in world trade.

May

SIPU has the honour to welcome 60 senior executives from Thailand, representing public and private sectors as well as regional and local governments. The study visit is arranged by the Institute for Good Governance Promotion (IGP) and the Office of the Public Sector Development Commission (OPDC) in Bangkok, as part of the Executive Program in Good Governance for Sustainable Development Program. SIPU’s company profile is introduced by the Managing Director Anders Olin and arouses great interest among the participants in terms of potential cooperation. Two presentations on the “Swedish New Public Management System and Integrity”, and “Anti-Corruption in Sweden” – made by SIPU senior consultants Hans Norgren and Alf Persson respectively – are highly appreciated and followed by a barrage of related questions.

The Swedish Public Employment Service Arbetsförmedlingen – The Swedish Public Employment Service (Swedish PES) holds its annual international training programme on “The Role of Labour Policy in Poverty Alleviation”. SIPU has previously provided administrative assistance to the Swedish PES in these programmes, but for the first time we now also provide the training module on project design, teambuilding and mentorship. SIPU provides five mentors to support participants in project formulation and implementation. A one week follow-up workshop is held in December in Dar-esSalaam, at which participants report on their accomplishments. New Director of Development Consulting After more than 12 years at SIPU, Karin Schulz moves on to become the CEO of The Natural Step. Michael Taylor, who previously worked for the British Council as Head of Digital for the EU region, joins us as the new Director Development Consulting.

This is a great opportunity to enhance new ideas and paradigms for further development and develop networks of good governance for sustainable development through joint learning.

Alf Persson, Senior Consultant at SIPU


The SIPU 2013 Calendar

Palestine Evaluation A team from SIPU goes to Palestine to assess the management of humanitarian operations implemented by Swedish NGO We Effect and their local partners, visiting interventions in the seam zone between the separation barrier and the Green Line.

30/6 – 5/7 Almedalen 2013

August Sustainable Coastal Development SIPU hosts the course “Integrated Sustainable Coastal Development”, run by Nirás Natura. Training is focused on spatial planning for coastal and marine areas, comparing the Swedish systems with common practices in developing countries, and introducing participants to tools they could use in their home countries. SIPU’s Tim Greenhow also organises a study tour of the Stockholm area highlighting specific coastal issues and solutions. New Training Venue Inauguration of SIPUs new training venue, with a capacity of up to 30 persons, plus adjacent lounge area.

July

October

November

Working with the Swedish Civil Service

Sida’s PFM Heldesk

SIPU holds the final training day within the project “EU competence in Småland Blekinge”. The training programme reaches 251 civil servants in South Sweden, consisting of 45 training days in 10 different EU-courses. Training in Zambia with GIZ

Panel Discussion at Almedalen

September

SIPU, together with the Swedish International Centre for Local Democracy (ICLD), hosts a panel discussion at Almedalen –

MOPAN Report, Paris SIPU presents the evaluation of the Multilateral Organisation Performance Assessment Network (MOPAN) to key stakeholders at the OECD in Paris. The report is very well received, as well as the presentation and the following Q&A session, led by the Team Leader Paul Balogun.

We launch our first project financed by GIZ – a management and leadership training programme for middle and senior staff in the Ministry of Finance in Zambia. The training consists of four modules each of which runs three times. The training employs the concept of “action learning”, with a focus on transformational leadership.

TACSO II – The Sequel Sweden’s largest political, governmental and media gathering, held each year on the island of Gotland. The topic for discussion is the role and potential in mobilising Swedish public administration expertise for development cooperation. Panel guests include: Charlotte Petri Gornitzka, Director General of Sida; Joakim Palme, Professor at Uppsala University; Lari PitkäKangas, Municipal Commissioner of Malmö; Fredrik Zetterquist, CEO of Swedesurvey; Pernilla Trägårdh, International Programme Director at Statistics Sweden; and Elisabet Rothenberg, Vice President of the Municipal Council of Gothenburg.

We are awarded a two-year helpdesk contract with Sida, providing global support in all areas related to Public Finance Management (PFM) and Aid Effectiveness. A core group of in-house consultants and associated experts are available to give expert advice on demand.

December

23/11 SIPU launches on Twitter – @SIPUInt

Phase II of the Technical Assistance to Civil Society Organisations (TACSO) project – SIPU’s largest ever undertaking – launches in Albania, Bosnia and Herzegovina, Kosovo, Former Yugoslav Republic of Macedonia, Montenegro, Serbia, and Turkey.

Budget Reform and Aid Management, Ukraine The very successful four year project, Budget Reform and Aid Management (BAM), finishes in Ukraine, resulting in (amongst other things) a concrete budget reform agenda. The same month the Maidan Demonstrations gain even greater momentum in Kiev.

We believe that the Swedish public service, in the right context and with the right type of support, can play an important role to strengthen institutions and public service in developing and transitional countries around the world.

SIPU Annual report 2013

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Where we work:

FIRMA Project Helps Companies Grow By improving the quality of their products and becoming better at marketing, the companies in Bosnia and Herzegovina are able to increase their profits and better compete in the European Market. FIRMA stands for “Fostering Interventions for Rapid Market Advancement”, and the project focuses on three sectors: wood processing, tourism and product manufacturing. This five-year project is supported by Sida and the American development agency, USAID. The project has a clear focus on achieving results and identifying indicators to measure them. All companies taking part in the project report their results every month and the figures have been very positive. Although supporting industry in itself gives more short-term results than the reforms of social structures, the knowledge and expertise that are built up in the country through the FIRMA project become long-term.

National Integrated Monitoring & Evaluation System (NIMES), Kenya

Kenya’s 2030 development objective is to transform itself into a sustainable, industrialised, middle-income country with a high quality of life and secure environment. This is a huge challenge and cannot be managed without a well-functioning monitoring and evaluation system. SIPU has since 2011 been supporting the Government of Kenya to better track progress and achievements by collaborating with their Monitoring & Evaluation Directorate. The challenge is to strengthen the capacity to both monitor progress and to further improve adequate and timely reporting on results up to the level of the Legislature and the President. The newly established Counties are a special focus for the project. SIPU accompanies the Directorate within a joint Capacity Development Plan where SIPU focuses on improving the IT environment for reporting, development of an M&E framework that defines roles, responsibilities and procedures, as well as curricula development and capacity building for improved assessment of different programs.

We have shown the way in which companies can develop their production, introduce a qualityoriented approach and become competitive with EU companies. Many of the activities that we implemented were designed to help companies get on track, give them support to get started, then they are to stand on their own feet. Pelle Persson, Counsellor, Swedish Embassy in Sarajevo

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SIPU Annual report 2013

Budget and Aid Management project The four year Sida financed Budget and Aid Management project in Ukraine is implemented by a team of 15 Ukrainian and international experts with the aim to enhance the aid coordination and the budget processes within the Ministry of Finance and Ministry of Economy. The project has laid a solid ground for the introduction of macro-economic forecasting, medium term budgeting as well as strategic and operational planning.


Where we work

Afghanistan

Estonia

Latvia

Sweden

Albania

FYROM – Former Yugoslav Republic of Macedonia

Liberia

Tanzania

Lithuania

Tunisia

Moldova

Turkey

Mozambique

Ukraine

Palestine territories

Vietnam

Russia

West Bank/Gaza

Rwanda

Zambia

Belarus Bhutan Bolivia Bosnia & Herzegovina Botswana China Croatia

Georgia India Kazakhstan Kenya Kosovo

Serbia

An integrated register of investment locations to support Serbia’s economic growth Through the development of good business infrastructure, the Ministry of Regional Development and Local Government contributes to the prerequisites for greater competitiveness, accelerated economic growth and increasing employment. The implementation of this strategic goal requires a clearly defined joint action to be taken by the national, regional and local institutions and partners, a difficult undertaking without a unified, consistent and up-to-date information system and appropriate legal framework. Thanks to grant funds from the Sida-financed project “Support to public administration reform”, which SIPU is implementing, the Ministry was able to develop a comprehensive solution and plan for an Integrated Business Infrastructure Cadastre, which is the common basis for action from now to 2016. Upon completion, the Cadastre system will be an important instrument for creating and implementing development strategies and policies at all levels, as well as for providing pertinent and reliable data to potential investors – domestic as well as foreign companies, large as well as small and medium-sized businesses.

I believe in “ democracy and transparency. Pasi Lampinen, SIPU International

Swedish Support to the Albanian State Police In the project “Swedish Support to the Albanian State Police” SIPU supports the efforts to introduce community policing. The focus areas in this Sida financed project (runs from 2012–15 and amounts to 25 MSEK) includes a) partnership between the police and youth b) the combatting of domestic violence and c) introduction of a modern performance management system.

SIPU Annual report 2013

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What we do:

Staff Surveys for Swedish Municipalities:

At SIPU we work in a variety of business areas, both international and domestic.

The Workplace of the Future – Development and Learning in Municipalities

In Sweden we are the leading provider of professional training to the Swedish Civil Service. Indeed, this business area is now proving so successful that we have recently started branching out into the private sector too, winning a contract under 2013 to provide professional training to new managers at Fortum – one of northern Europe’s leading energy companies – in Sweden, Finland and Estonia. We also run successful International Training Programmes (ITP) on behalf of Sida, which have now been running for almost ten years and have trained more than 800 participants. Finally, an increasingly large chunk of our work is in international development. These projects cover a wide range of both topics and geographies. Even here, however, our portfolio is expanding beyond the traditional development sectors, with several new promising partnerships recently emerging in China. In the following sections you can read about all of these different business areas, as well as how we might best help you in achieving your aims and in building sustainable solutions together.

SIPU has worked with personnel and organisational development at national and local government levels since the 1970s, and has wide experience from Sweden as well as from international work. The year 2012 saw the launching of a new initiative in the form of staff surveys for municipalities. Now in 2013 the service is established and appreciated with a growing demand from the municipalities. Through a combination of the company’s long experience and a new specially designed survey instrument we can now offer municipalities a unique support tool for both personnel and work environment development. The staff survey is specifically designed with municipalities’ reality in mind. The survey’s accurate and relevant results create the conditions for successful improvement programs. SIPU collects and collates all the information in a database. As municipalities join the system, the database grows and provides an increasingly valuable statistical base for comparative and trend analyses. Municipalities will be able to compare one another against common benchmarks and learn from one another’s best practices. Our vision is to provide municipalities throughout the country with the possibility of developing knowledge collectively, and make available to them practical examples, research findings and information.

I believe in the power of education for building the competency of organisations.

Merli Romell, SIPU International

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SIPU Annual report 2013


Business Areas

Professional Training in Sweden:

Contact person: Birgitta Andreasen, sales manager birgitta.andreasen@sipu.se +46 8 698 06 01

SIPU is Sweden’s leading supplier of high quality courses for public administration officials

Well performed public procurement is an essential component of an efficient and fair public administration

Do you need to stay up-todate with changes in public administration regulations and law?

In Sweden, SIPU has more than 30 years of experience providing courses and training within the field of public administration. In 2013, SIPU offered more than 150 courses, and more than 3 000 people from the central and local government attended.

The Public Procurement Act is generally seen as unclear and complicated, thus the role of the procurement officer is both complex and demanding. SIPU courses offer competence building both for procurement officers and other personnel involved in procurement processes. Examples of courses:

As a public administration employee you need to stay up-to-date with changes in regulations and laws relevant to your field of work. SIPU Public Administration and Law courses offer expert presentations combined with opportunities for individual questions and case discussions. The courses attract a broad spectrum of professionals: case officers, managers, legal advisors/solicitors, assistants or registrars. Example of courses:

Whatever SIPU course you choose, regardless of topic, it will have a practical focus and the clear objective of providing you with concrete tools and new skills to bring back to your organisation. Our courses are designed to be highly interactive, offering expert presentations mixed with group exercises and discussions. Your own project and case studies often play an integral part throughout the sessions, and you are invited to further develop your projects’ potential under the trainer’s direct supervision – an approach which enhances learning and gives you and your organisation a direct return on investment. SIPU hires only the best and most qualified trainers in their respective fields based on topics in a clear, interesting and inspiring way. All courses provided by SIPU can be customised and designed specifically for your team, institution or company. For more info about specific courses dates, please visit our website – www.sipu.se.

SIPU offers a wide range of courses within technical management and community building It is a challenge to follow the laws governing community building, and to meet the necessary requirements of creating a sustainable society. SIPU offers courses providing participants with methods, tools and techniques to work both effectively and legally within the area of public technical management and community building. Examples of courses: • Costal protection law • Legal contracts for land development • Contaminated land

• Public procurement – basic and advanced levels • Procurement of consultancy and other services

• Public administrative law for managers

• How to work strategically with public procurement

• Public administrative law in practice for case officers

Interested in managing an EU-funded project? EU funding offers opportunities to implement new development projects, which boost professional network building, create transnational collaboration opportunities and add significant value to participating organisations. Managing an EU financed project however is very demanding – rules and regulations are numerous and financial controls stringent. SIPU EU courses give participants the foresight to avoid the most common traps and the ability to develop both strategic and realistic projects, define achievable goals and comply with audit requirements. SIPU also arranges visits to EU institutions in Brussels. Examples of courses: • Strategic planning and development of EU projects – from idea to project • Managing an EU project – from start to finish • Financial management of EU projects – from budgets to audit

Probably the best course I’ve ever attended, high quality content and excellent trainers. Christina Sjökvist, Herrljunga Municipality

• Freedom of information act and secrecy laws in practice for legal advisors

Case study: Delivering leadership training to northern Europe’s globally expanding energy company Since 2013, SIPU delivers leadership training for new managers to Fortum, one of northern Europe’s leading energy companies. We now deliver “New as a Manager” training in the relevant local languages (which also takes onboard various cultural understandings) to all new Fortum managers in Sweden, Finland and Estonia. The objective is to help Fortum create a successful leadership that builds a corporate culture of involvement, engagement, delegation of assignments, accountability, coaching, mutual trust and motivation. In the Fortum training – as in all SIPU training – we use a blended training method, combining theory with lots of practice, as well as coaching and facilitating in a process oriented approach. This way, the attendees gain new knowledge, new ideas and practical tools to use in their every-day work.

SIPU Annual report 2013

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Business Areas

Public Financial Management:

Public financial management at the core of development effectiveness Public Financial Management (PFM) is about ensuring an effective use of public resources. It entails the development of systems, organisations and frameworks which should enable effective, efficient and transparent management of public finances. PFM is not an end in itself but a means to enhance the benefits and development of other areas such as social service delivery, natural resource management, effective governance and democracy, accountability and transparency. SIPU International is an experienced service provider both for project implementation and advisory services when it comes to PFM. In 2013 we successfully completed a project in Kosovo where strategic planning together with qualitative improvements in budgeting in two sectors – education and forestry – led to improved prioritisation on how to use the scarce resources available, including a transparent and public process of scrutinising domestic as well as external donor resources for public goods. As a result, Joint Annual Reviews have been institutionalised in these two sectors. The integrated approach that SIPU applies provides a holistic perspective on how to best strengthen PFM through building the capacity of individuals, organisations and institutions. SIPU International has a clear understanding of the relationships between political and institutional processes and policy reform, not least the links between policies, budget and expenditure management, and institutional and organisational change. Assessing these links is a key aspect to the successful implementation of any reform process, not least within PFM itself. SIPU International provides a wide range of training and capacity building programmes across a diverse range of PFM areas with a clear link to service delivery at local level. Our approach to training is a participatory and results oriented approach where the client takes part in defining their own needs and expected results. In 2013 we also organised a number of study visits in cooperation with Swedish government agencies and organisations for participants 10

SIPU Annual report 2013

keen to learn more about the successful Swedish model of public administration and fiscal reform. Improvement in PFM is also a means to enhance aid effectiveness as well as external control and accountability for donor funded projects. SIPU international assists donor agencies in assessing and managing fiduciary risks as well as setting up more effective donor coordinated mechanisms with joint frameworks for expenditure management, risk assessments, results frameworks, and monitoring and evaluation.

Running Sida’s PFM Helpdesk In late 2013 SIPU was awarded a call-off contract providing advisory services to Sida on PFM and aid effectiveness. Sida can – through the helpdesk managed by SIPU – easily and quickly call off expert advise in all areas of PFM and aid effectiveness. This strengthens our relationship with Sida as their first provider and close advisers in areas related to PFM and aid effectiveness.

“Progress has been made in the education sector, especially as regards the systems and procedures for implementing a sector-wide approach to education …” “ In February, in the context of the second joint annual review for education,

SIDA Framework Agreements

SIPU International has a number of framework agreements on consulting services with Sida. The framework agreements are available to facilitate Sida’s procurements of specialised consultancy services. We have realised, in our frequent contacts with Sida staff, that those framework agreements, their content and how they can be utilised are not always well known. The following apply for all the framework agreements: • Framework agreements are easy to call-off. They can be utilised by Sida HQs and by the Embassies with already negotiated rates and conditions. • We can find experts in almost any area; SIPU International has a database of 20 000 experts available world-wide. In addition to the in-house and core experts listed in the agreements we can help you find available experts in almost any field or can assist in contracting an expert that you propose. • Quality assurance for all assignments; experienced project leaders and in-house experts make sure that all assignments are in line with the ToR and fulfil the highest quality standards. Opposite is a list with all available framework contracts where SIPU International is one of the providers. Please do not hesitate to contact us on info@sipuinternational.se should you require any further information.


Business Areas

Local Government and Urban Development:

I believe in the “ role of institutions and their importance in creating welfare for human beings. Karin Metell Cueva, SIPU International

the Ministry of Education, Science and Technology produced a sectoral progress report and an aide memoire setting out policy priorities for 2013–2014.” European Commission Kosovo 2013, Progress Report

Sustainability and transparency of government at local level and in urban areas SIPU’s long experience in developing organisational capacity takes on a specific form in urban and local level related issues. “On the ground” we suddenly come across a completely new set of issues, often related to local governments’ lack of, or inefficient delivery of, specific services, infrastructure or urban planning.

Here, SIPU’s involvement focuses around our extensive understanding and long experience of supporting organisations – to create a sustainable Local Government Institute that will be able to “stand on its own feet” long after SIPU withdraws. In all of the projects we make full use of the SIPU cross-sectorial dimensions: we have a wide and deep knowledge of capacity building, corruption, gender, sustainable planning, and institutional development, which together make real and lasting organisational development possible.

In these situations SIPU’s focus lies in capacity building and institutional strengthening, and in enabling governments to be able to support themselves and to give the civil servants the right tools to keep developing. A good example of this is one of our current projects in Rwanda, where SIPU is assigned to support the Local Government Institute to develop curricula for civil servants, strengthening their capacity in more efficient service delivery to the people.

Name

Area

Limitations on individual call-offs

Contract Number and Period

SIPU Contact person

Democracy and Public Administration (Open Framework Agreement)*

Public Financial Management, Public Administration, Local Democracy, Political Institutions and Rule of Law

Max 9 person months over a period of three years.

C61143/F61011

Pontus Förberg pontus.forberg@sipu.se

Private Sector Development (Ranked Framework Agreement)**

Private Sector Development, Trade-related Cooperation, Financial Systems and Financing

Max 1.2 million SEK.

C61157/F61021

Infrastructure and Urban Development (Ranked)**

Water, Energy, Urban Development, Transport

Max 1.2 million SEK.

Evaluation (Ranked)**

Reviews, Evaluations and Advisory Services on Results Framework

Max 1.2 million SEK.

Gender (Open)*

Reviews, Evaluations and Advisory Services on Results Framework

Max 9 person months over a period of three years.

Until 2015-01-31

Until 2014-05-31

C61154 Until 2015-05-31 C01547 Until 2015-04-10

* Open framework agreements are based on renewed competitive bidding and SIPU is one of several providers who compete for each new call-off on technical and financial grounds. The process requires a formal procurement procedure from Sida’s side, but far less complex than open tenders.

F00080/C84012 Until 2014-10-06

Daniel Gronvius daniel.gronvius@sipu.se

Tim Greenhow tim.greenhow@sipu.se

Viktoria Hildenwall viktoria.hildenwall@sipu.se Lucia Acosta lucia.acosta@sipu.se

** In the ranked framework agreements, the highest ranked provider receives the first opportunity to make an acceptable offer on a request from Sida. If no. 1 cannot do this or is in a conflict of interest, the opportunity passes to the next provider.

SIPU Annual report 2013

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Business Areas

Civil Society:

Public Administration Reform:

Technical Assistance to Civil Society Organisations

Building government institutions that deliver on development

During 2013, the position of Civil Society as one of SIPU’s leading business areas was further consolidated with the awarding of a new four year contract for the Technical Assistance to Civil Society Organisations (TACSO) project. This EU-funded project, running to some 10.5 Million Euros, works with key stakeholders in the Western Balkans and Turkey, with interventions ranging from institutional framework reforms to capacity development aimed at strengthening the role of civil society in the democratic process. An important step in the initial phase of the project will be the transfer of established TACSO services to selected resource organisations, which in turn will take on the leadership and management of these services. An exciting new additional element in the project is the inclusion of the programme People-to-People (P2P). This set of activities offers opportunities for key people in the beneficiary countries to engage in exchange visits with institutions and organisations from the EU, the aim of which is to stimulate and facilitate the continued harmonisation and accession process. As a complement to this activity, SIPU is also implementing a project in Serbia funded by the EU Delegation there. The aim of this assistance project is to support the Government Office for Cooperation with Civil Society to build its capacity to act as a competent partner to civil society in Serbia. Through this intervention the EU Delegation in Serbia is also receiving support to manage grant schemes for civil society organisations. Finally SIPU (in cooperation with NIRAS), has been assigned by the Swiss Development Cooperation (SDC) to capacitate the Civil Society Organisations in Macedonia. The four year project aims at strengthening the constituency of the CSOs by providing advice, training and grants.

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SIPU Annual report 2013

The state, rule of law and accountability are the basis of political order. A strong state counterbalanced by a strong civil society helps to ensure accountability upwards as well as downwards and creates conditions for democracy to function. Political and economic institutions that are inclusive contribute to making socioeconomic development sustainable, fair and equitable for all citizens. “Quality of Government” is increasingly recognized as a key factor enabling governments to deliver on development and promote the safety and happiness of citizens. To achieve this, governments need a wide range of effective and well-crafted mechanisms and tools as well as the capacity to efficiently apply them. SIPU supports governments to design and implement solutions that work in the real world, at local, regional and central level. We strive to take the experience of good and tested practices from around the world and support our clients to adapt them to local needs, based on a profound knowledge and respect for the local context. We have the ambition to be a valuable partner in development.

We allow the client’s experiences, competencies and values to determine our role as governance consultants. SIPU works at all levels in organisations, from concrete work with organisations, processes and human resources and capacity strengthening at operational level, to management, leadership development, and institutional frameworks. We help in analysing situations, finding solutions and improving work practices, to delivering public services and performing functions impartially and professionally with high quality. We have the capacity to take on a mentoring role and to be a sounding board for organisations. In other situations we may be hands-on experts, “getting things done” together with members of staff. At the other end of the spectrum we can assist with development of organisational policies that guide the way of working, govern the relation to external and internal stakeholders, and communicate essential aspects of the organisation’s vision, mission, goals, and values, as well as its obligations. SIPU also recognizes that change and reform are difficult, time-consuming and challenging, and that the process, doing things in the right order, at the right pace, at the right time and with the right people, is just as important as the content in achieving sustainable results. SIPU can support and accompany the process


Business Areas

Evaluation:

Evaluation at SIPU International – helping organisations to do the right things in the right way Evaluation has a central role to play in today’s international development cooperation. It is promoted as a key tool for ensuring development effectiveness, transparency and accountability in policy-making and social and organisational learning. SIPU’s vision is to contribute to evidencebased development policy and decision making. We aim to get there by providing the insights and ideas needed to help our clients assess what works and why.

combining sector expertise and skills in change management, in order to build sustainability. SIPU is a learning organisation, as we consider this to be important in the field of governance, where ready-made “solutions” from somewhere else are abundant but rarely appropriate without careful localisation. Based on our solid experience in external evaluation of development activities, we apply the same perspective in our own work with clients, monitoring and assessing approaches and implementation together in real time.

Our services span across organisational assessments, project and programme reviews and strategic and thematic evaluations:

A SIPU evaluation is both reliable and useful to those who commission it. It is based on well-grounded, robust methodologies and carried out by evaluation professionals and thematic experts. Through a close dialogue with the commissioner, and by involving the main stakeholders throughout the evaluation process, we ensure the best utility of our evaluations.

• In the same year, the OECD commissioned us to perform an evaluation of a tool for assessing the effectiveness of multilateral organisations (MOPAN).

We are committed to constantly improving our work, and to expanding our services across clients, thematic areas and methodologies. Our team has comprehensive expertise in evaluation practice and in project management, as well as across a wide range of development themes and countries – all of which guarantees quality in design and implementation of our evaluation projects.

• We are also currently evaluating the Swedish CSO Strategy from the perspective of people living in poverty and marginalisation.

For more details about how our Evaluation Unit can help your organisation/project enhance performance, please visit our website www.sipu.se.

• In 2013, we performed assessments of some 30 Swedish Civil Society Organisations (CSO) with the purpose of helping Sida select new framework and strategic partner organisations.

I believe in the capacity of individuals to grow, change and develop organisations, society and the future.

Daniel Stendahl, SIPU International

SIPU Annual report 2013

13


Business Areas

Market Development:

Natural Resource and Environmental Management:

Supporting inclusive economic growth

Leaders, climate change and sustainable development

Effective and efficient markets are a key driver of economic growth and have huge potential for contributing to poverty reduction. The private sector is a key driver in this – providing jobs and essential goods and services, as well as being a source of government revenue. However, equitable economic developments that benefit the poor are only possible with responsive and transparent institutions.

There is an increasing need for leadership at all levels, in all sectors and in all parts of the world as the impacts of climate change become more apparent, and we enter a new period seeking to achieve sustainable development goals.

SIPU International aims to promote inclusive economic growth by supporting the business enabling environment and institutions as well as policy and regulatory reform. SIPU has a long tradition of working with public sector reform and institutional capacity building, and our work with private sector development is rooted in our extensive experience of capacity building for a diverse range of actors. Through the Technical Assistance to Civil Society Organisations (TACSO) project, SIPU is a key actor in supporting social entrepreneurship in the Western Balkans, while through its Sida-funded International Programmes SIPU supports employmentgeneration and entrepreneurship in Sida partner countries across the globe. In 2014 SIPU is also successfully finalising a 5 year programme in Bosnia and Herzegovina to increase competitiveness in key export sectors. Since May 2011 SIPU has been the lead contractor on Sida’s Market Development framework contract. In this capacity we have provided analysis and policy support to both Sida headquarters and Swedish Embassies working with development cooperation. Support has been provided in areas such as trade promotion, financial sector deepening, and supporting small businesses. Through this framework we have provided input to Sida country strategies, built capacity for Sida staff and supported private-public cooperation.

SIPU International offers services that combine support to organisational, institutional and leadership development in the areas of environmental and natural resource management, climate change adaptation, and other related issues. The issues are complex and multifaceted. SIPU responds with a holistic approach that combines training, institutional development and relevant subject matter competence. The result is a more adaptive and transformational approach to leadership – a key factor necessary to meeting the future’s challenges. People, individually and collectively, in urban as well as rural settings, are at the heart of the issues involved and will be central to the achievement of a future based on social, economic and environmental sustainability. SIPU focuses on equipping people, in particular leaders, to protect and enhance their multiple assets, deal creatively with difficult issues, and pursue desirable futures while mitigating negative impacts. Working across sectoral boundaries, and hierarchical levels, our approach encourages inclusion, the reduction of sectorial silos and conflicts. This helps maximise stakeholder engagement and draw on their collective creativity and energy. We recognise that successful change management is often built on incremental steps, so that while we take a holistic view of issues and solutions, we also provide focus on specific measures and areas in a prioritised and sequenced approach. We can also arrange study visits to demonstrate the possibilities that already exist within current technology and institutional frameworks, as a means to inspire and generate new ideas for specific interventions. SIPU can provide support through individual projects of defined length and specified

14

SIPU Annual report 2013

Comments from a recent leadership training event in Zambia: “The training was unique and very useful.” “The content was revolutionary. ”

scope, to generalised support through framework agreements over longer periods of time. We frequently offer services through competitive bidding, but are also able to enter into negotiated agreements. In all cases the needs of our customers are our primary concern. SIPU has provided advanced international training in local environmental management over a 5 year period, with participants from Africa, Asia and Europe. During this time we have undertaken a sustainability review of the large industrial city of Visakhapatnam in India, supported Thailand in developing a sustainable coastal development strategy, and undertaken numerous training programmes on management and leadership. We have a large network of experts in a wide variety of fields on which we draw to meet specific requirements.


Business Areas

International Training Programmes:

Contact person: Cecilia Norgren, project manager cecilia.norgren@sipu.se

Gender:

SIPUs International Training Programmes: a unique experience tailored for individual needs, benefitting large scale organisations

gives advice in institutional change and acts as an incubator and coordinates each participant’s unique learning experience in Sweden, complementing it with relevant meetings and site visits.

Achieving Gender Equality, Women’s Empowerment and Strengthening Development Cooperation

SIPU has been working with Sida’s International Training Programmes (ITP) for close to ten years, educating more than 800 participants. Our main expertise is the development of pedagogical curriculums and our training of trainers where we train lecturers to use a more dynamic and interactive approach. We also specialise in the administration of large scale trainings with activities all over the world. ITPs are part of Sida’s bilateral development assistance, designed for key individuals who are qualified to participate in important reform processes in their locality. The programmes are meant to inspire them and also connect them with each other. Our approach to “the project for change module”, which is one of the foundations of Sida’s ITPs, is unique. Our method is based on our mentors specialising mainly in the change process and only secondly in technicalities. The mentor

An example of how this works in practice comes from one of our Chinese participants, who was searching for new technologies for the construction of more energy efficient housing. His mentor was able to connect him with both Swedish architects designing passive housing and one of the Swedish companies building them. Inspired by Swedish technology, he redesigned an old building in China and now arranges regular site visits for building entrepreneurs interested in energy efficient housing. SIPU was able to visit that house with the next group of participants in the same programme and all were very impressed by what they saw.

For more information about our International Training Programmes, please visit our website at: www.sipu.se

I believe a responsible and qualitative service in development can only be designed with greater confidence in and engagement from local actors.

Ludmila Ceban, SIPU International

Gender equality is an important end in itself – it is a human rights issue and essential for long-term democratic and sustainable global development. Gender inequality is one of the main causes of poverty, so economic and political empowerment of women is not only a necessity for gender equality, it is also fundamental for achieving sustainable and inclusive economic growth. SIPU offers pragmatic and efficient gender-approaches and methodology as an integrated part of all our projects, but also runs projects which have gender equality as the main objective. Our approach is therefore two-fold: on the one hand we work in teams where sector specific knowledge is complemented by a gender approach, method and knowledge; on the other hand we work with gender specific projects where gender awareness, gender mainstreaming and the combating of gender based violence (amongst others), are the primary objectives of the project. Over the years SIPU has trained and strengthened over 200 gender experts in decision making roles in institutions and organisations in the field of human rights and gender equality. Each of these experts has implemented at least one change project in order to effect and change social and institutional structures that lead to increased gender equality. This means that over 200 change projects have been implemented in eleven countries.

SIPU Annual report 2013

15


Annual report 2013 :

The Board of Directors and Managing Director of

Administration Report

SIPU International AB Corporate Identity Number 556448-4771

SIPU International AB was founded in 1992 and since that time has undertaken international consulting and training for the development of, primarily, the public sector in developing and transition countries. Our largest clients are Sida and the EU. In Sweden, the Company has just over 40 employees; world-wide there was an average of 40 employees during the year. We also contract a large number of sub-consultants in order to execute short or long-term assignments. In many of the assignments, we cooperate with other Swedish, international and local consulting organisations.

hereby present the Annual Report for the period 1 January – 31 December 2013

Operations

In 2013 SIPU International has implemented a new business and project management system that will provide us with new opportunities for monitoring and control. After some initial difficulties, the system is now up running. Otherwise, all the company’s business units performed well and our turnover has increased compared with previous years.

Administration Report • 16

Results and financial position

Income Statement • 17

Operating income 146 635 128 111 134 906 130 690 95 256

Balance Sheet • 18

Profit after financial items

Cash Flow Statement • 19

Balance sheet total

Notes and comments • 20

2013 5 502

2012

2011

2010

2009

3 466

2 453

5 667

2 710

95 665 102 306

91 699

82 562

72 513

Equity/assets ratio (%)

18

18

19

22

24

Return on assets (%)

32

19

14

31

16

Return on equity after tax (%)

23

14

10

22

10

Change in sales (%)

14

-5

3

37

1

Average number of employees

40

62

55

55

35

Proposed appropriation of profits Retained earnings

5 814 351

Net profit for the year

3 936 506

Total

9 750 857

The Board of Directors proposes that profits brought forward be appropriated as follows: To be distributed to the shareholders

4 875 000

To be carried forward

4 875 857

Total

9 750 857

Board’s statement on the proposed dividend The proposed dividend will reduce the company’s equity ratio to 13%. The equity ratio is set in light of the company’s continued profitability. The liquidity of the company is expected to be maintained at a satisfactory level. The Board believes that the proposed dividend will not prevent the company from fulfilling its obligations in the short and long term, nor that the necessary investments will be affected. The proposed dividend can be justified with reference to what is stated in Companies Act, Chapter 17, section 3 § 2–3 (prudential rules). 16

SIPU Annual report 2013


Annual Report 2013

Annual report 2013 :

Income Statement Amounts in kSEK

Note

2013-01-01– 2013-12-31

2012-01-01– 2012-12-31

1, 2 142 615

126 944

Operating income Net sales

Other operating income

4 020

1 167

146 635 128 111 Operating expenses Direct project costs -106 847

-76 463

Other external expenses

-7 775

-11 836

4, 5, 6 -25 598

-33 790

Personnel costs

2, 3

Depreciation/amortisation 7 -972 Other operating expenses

-492

-644 -1 104

-141 684 -123 837 Operating profit

4 951

Interest income 140

4 274 23

Interest expenses

411

-831

Profit after financial items

5 502

3 466

Appropriations 8 -228

-650

Tax

-1 337

-863

Net profit for the year

3 937

1 953

SIPU Annual report 2013

17


Annual Report 2013

Balance Sheet Amounts in kSEK

Note 2013-12-31 2012-12-31 Fixed assets Intangible fixed assets Software 7 290 Goodwill

Annual report 2013 :

7

1 448

1 574

7

335

Land and buildings Cost of improvements, buildings Tangible fixed assets Equipment 7 518

683

Financial non-current assets Participations in Group companies

14

238

238

Investments held as fixed assets

15

3

3

Total fixed assets

2 832

2 498

Accounts receivable – trade

27 374

23 019

Current income taxes recoverable

810

1 277

Current assets Current receivables

Other receivables 246 Accrued, non-invoiced income Prepaid expenses and accrued income

9 10

40 704

48 605

1 413

1 536

70 547 Cash and bank balances

716

17 22 286

75 153 24 655

Total current assets

92 833

99 808

Total assets

95 665

102 306 

1 200

1 200

Equity 11 Restricted equity Share capital (12 000 shares with a quotient value of SEK 100)

Statutory reserve 266

266

Non-restricted equity Retained earnings

5 814

9 661

Net profit for the year

3 937

1 953

Total equity

11 217

13 080

Untaxed reserves 12 7 847

7 619

Current liabilities Accounts payable – trade

7 912

8 583

Liabilities to Group companies

6 800

1 147

Advance payments from customers

49 460

55 169

Other current liabilities

5 662

7 505

6 767

9 203

Other interim liabilities

13

Total current liabilities

76 601

81 607

Total equity and liabilities

95 665

102 306

39 217

27 991

Memorandum items Pledged assets

16

Contingent liabilities None 18

SIPU Annual report 2013

None


Annual Report 2013

Cash Flow Statement Amounts in kSEK

2013-01-01– 2013-12-31

2012-01-01– 2012-12-31

Operating activities Operating profit before financial items

4 951

Depreciation/amortisation 973 Other non-cash items

5 924

4 274 644 4

4 922

Interest received 72

21

Interest paid -300

-204

Repayment of debt

1 410

-627

Income tax paid

-870

-1 855

Increase/decrease in work in progress

7 901

-4 503

Increase/decrease in accounts receivable – trade

-4 355

-6 222

Increase/decrease in other current receivables

593

-913

Increase/decrease in accounts payable – trade

-818

3 207

Increase/decrease in other current operating liabilities

-4 188

5 797

Cash flow from operating activities

5 369

8 629

Investments in intangible fixed assets

-704

-1 309

Investments in tangible fixed assets

-603

-178

Sales of tangible fixed assets

0

Annual report 2013 :

Changes in working capital

Investing activities

Investments in other financial non-current assets –

-14

Disposals of other financial non-current assets

-631

2

Cash flow from investing activities

-1 938

-1 499

-5 800

0

Financing activities Increase/decrease in current financial liabilities Dividend paid

-1 000

Cash flow from financing activities

-5 800

-1 000

Cash flow for the year

-2 369

6 130

Cash and cash equivalents at the beginning of the year

24 655

18 525

Cash and cash equivalents at year-end

22 286

24 655

SIPU Annual report 2013

19


Annual Report 2013

Notes and comments

Notes and comments

Accounting principles

Note 1 • Distribution of net sales per market

Amounts in kSEK

The annual report has been prepared in accordance with the Swedish Annual Accounts Act and the general advice and guidelines of the Swedish Accounting Standards Board, with the exception of BFNAR 2008:1, Annual reports in small limited liability companies (the K2 rules). The accounting principles remain unchanged compared with the previous year. Assets and liabilities have been valued at acquisition cost, unless otherwise stated. SIPU International AB does not prepare consolidated accounts, as the Company and all of its subsidiaries are included in the consolidated accounts prepared by the superior Parent Company.

Amounts in kSEK

Region 2013

2012

Eastern Europe and NIS

45 459

57 589

Latin America

424

2 668

Africa

22 293

11 727

MENA

1 867

Income

Asia

10 079

297

The Company renders fixed price service assignments for which income is recognised in pace with the execution of the assignment in accordance with the percentage of completion method. Depending on the customer, the percentage of completion is determined either on the basis of the number of worked and invoiced hours/days or on the basis of delivered products (milestones). Of these two determination methods, the former is the most common. Net sales includes invoiced out-of-pocket costs.

EU

67 380

52 796

146 635

126 944

Income tax Reported income tax includes tax which is to be paid or received, regarding the current year, and adjustments concerning the previous years’ current taxes and changes in deferred tax. All income tax liabilities and assets are valued at their nominal amount according to the tax regulations and tax rates that have been decided or that have been announced and are likely to be adopted. In the case of items reported in the income statement, related tax effects are also reported in the income statement. The tax effects of items that are accounted for directly against equity are also reported directly against equity. Deferred tax is calculated according to the balance sheet method on all temporary differences arising between the reported value and the tax value of the assets and liabilities. Due to tax regulations, the Parent Company reports deferred tax liabilities on untaxed reserves as untaxed reserves.

Translation of receivables and liabilities in foreign currency Receivables and liabilities in foreign currency are reported at the closing rate of exchange, with the exception of advance payments from customers are translated at the historical rate of exchange. Exchange rate gains and losses on receivables and liabilities relating to operations are reported under ‘Other operating income’ or ‘Other operating expenses’.

Intangible assets Goodwill is comprised of the amount by which the acquisition cost exceeds the fair value of the acquired company’s net assets on the acquisition date. Intangible fixed assets are amortised on a straight-line basis over the asset’s estimated useful life. An amortisation period of 5 years is applied for goodwill.

Field of activity

2013

2012

Development Consulting 107 332

93 465

International Training Programs

25 172

21 123

Training (Sweden)

14 131

11 356

146 635

126 944

The Company has included overhead expenses for SCB’s personnel administration for foreign-based personnel under sales for 2013. These expenses amount to kSEK 9 293 and have been reported under EU, above. The corresponding amount for 2012 was kSEK 7 814.

Note 2 • Purchases and sales between Group companies 2013

2012

Purchases from Group companies

966

884

Sales to Group companies

Note 3 • Remuneration to auditors

Tangible fixed assets

2013

2012

Tangible fixed assets are reported at acquisition cost less depreciation. The depreciation period for depreciation according to plan is 3 years for computer equipment and 5 years for office equipment. In terms of tax treatment, the Company applies the supplementary rule.

Audit engagement, PwC

179

150

Other services, PwC

49

128

228

278

Financial non-current assets Financial assets which are intended to be held over a long period of time are reported at acquisition cost. If, on balance sheet date, a financial fixed asset has a lower value than its book value, the asset is written-down to the lower amount if the decrease in value can be considered permanent.

Accounts receivable – trade Provisions for doubtful debts have been determined on the basis of individual assessment.

Definitions of key ratios

Note 4 • Average number of employees The average number of FTEs for 2013 was 40 (62), distributed by land/region as follows. For 2012 the average number of FTEs included some subcontractors who received compensation from the company. From 2013 only employed with employmentlike conditions are included.

Equity/assets ratio. Adjusted equity as a percentage of the balance sheet total.

Return on capital employed. Profit after net financial items plus financial expenses as a percentage of average capital employed. Capital employed consists of the balance sheet total less non-interest-bearing liabilities including deferred tax in untaxed reserves.

Land

Return on equity after tax. Profit after net financial items less tax payable for the year incl. deferred tax on appropriations as a percentage of adjusted equity.

2013

Sweden

Women

15 25 16 19

Africa

– – 3 2

Other

SIPU Annual report 2013

Men

Latin America

20

Women

Eastern Europe and NIS

Change in sales. Change to operating income in comparison to the previous year. In the following notes and descriptions, information in brackets refers to the previous year.

Men

2012

– –

6 1

15 0

15 25 26 36


Annual Report 2013

Note 5 • Gender distribution among senior executives

Note 7 • Intangible and tangible fixed assets

Software and Goodwill 2013-12-31 2012-12-31

Land

2013

2012

Men

Women

Men

Women

Board of Directors, incl. MD

3

3

3

2

Management, incl. MD

3

1

2

2

Acquisition cost Opening value

2 059

750

Purchases

704

1 309

Sales/disposals – Closing value

Note 6 • Personnel costs

2012

MD and BoD Other

Sweden

1 256

16 544

MD and BoD

Other

782

14 967

Opening value

-485

-225

Amortisation for the year

-540

-260 -485

4 304

Closing residual value

1 738

1 574

1 288

Africa

2 602

MENA

843

782

-1 025

Latin America

16 544

Sales/disposals – Closing value

Eastern Europe and NIS

1 256

2 059

Amortisation

2013

Salaries and remuneration

2 763

24 004

Social security contributions Pension costs

345

1 692

164

2 201

Other social security contributions

477

5 572

308

5 092

822

7 264

472

7 293

2 078

23 808

1 254

31 297

Land, buildings and Inventories 2013-12-31 2012-12-31 Acquisition cost Opening value

2 253

2 521

Purchases 603

178

Sales/disposals -256

-446

Closing value

2 600

2 253

Opening value

-1 570

-1 628

Depreciation for the year

-433

-384

Depreciation

Sales/disposals 256

442

Salary costs for some subcontractors have prior years partially reported as salary expenses. From 2013 only salary expense under employment-like conditions are reported as personnel costs, other expenses are reported as direct project costs.

Closing value

-1 747

-1 570

Closing residual value

853

683

Salaries and other remuneration to the Managing Director and Board of Directors

Note 8 • Appropriations

Salaries and other remuneration to the MD and Board of Directors during 2013 amounted to kSEK 1 256 (782), of which bonus kSEK 0 (0).

2013

Pensions and similar benefits to the Managing Director and Board of Directors Pensions to the MD and Board of Directors during 2013 amounted to kSEK 345 (164).

-228

Agreed severance pay

Note 9 • Accrued, non-invoiced income

The MD has a term of notice of 6 months. 

2013

2012

Reversal of tax allocation reserve

1 749

482

Transfer to tax allocation reserve

-2 011

-1 090

Change in accelerated depreciation/amortisation

34

-42

-650

2012

Accrued, non-invoiced income

40 704

48 605

40 704

48 605

SIPU Annual report 2013

21


Annual Report 2013

Note 10 • Prepaid expenses and accrued income

2013

Note 13 • Accrued expenses and deferred income 2012

2013

2012

Prepaid insurance expenses

207

Deferred income

Prepaid rental

702

514

Accrued project expenses

4 005

6 484

Internal projects in progress

529

Other accrued liabilities

481

653

711

286

Holiday pay liability

832

947

1 413

1 536

Social security contributions

731

709

Special employer’s contribution on pensions

521

410

6 767

9 203

Other prepaid expenses and accrued income

Note 11 • Change in equity Share Statutory Retained capital reserve earnings

Opening balance Adjustment of pre- vious year’s net profit

1 200 -

Net profit for the year

Total

266

9 661

1 953

13 080

-

1 953

-1 953

0

Dividend according to resolution of annual general meeting

-

-

Net profit for the year

-

-

Amount at year-end 1 200

266

5 814

-

-5 800

3 937

3 937

3 937 11 217

Name/Corporate Identity Number Participation

2013

2012

Tax allocation reserve, tax assessment year 2008

1 749

Tax allocation reserve, tax assessment year 2009

1 011

1 011

Tax allocation reserve, tax assessment year 2010

918

918

Tax allocation reserve, tax assessment year 2011

1 995

1 995

Tax allocation reserve, tax assessment year 2012

814

814

Tax allocation reserve, tax assessment year 2013

1 090

1 090

Tax allocation reserve, tax assessment year 2014

2 011

8

42

7 847

7 619

Deferred tax

1 726

1 676

Accumulated excess depreciation

Nominal value

Book value

68

238

65%

Note 15 • Investments held as fixed assets Name/Corporate Identity Number Participation

FCG Ukraine LLC, 343428424, Ukraine

Note 12 • Untaxed reserves

Note 14 • Participations in Group companies SIPU AB, 556446-3577

-5 800

197

Nominal value

Book value

4

3

10%

Note 16 • Pledged assets 2013 37 067

19 491

Assets pledged for guarantee (CSO Gov Office Serbia)

2 150

8 500

39 217

27 991

Floating charges

Note 17 • Bank overdraft facilities Unused bank overdraft facilities amounting to 7 MSEK.

The tax rate for 2013 was 22%. The tax rate for 2012 was 26.3%.

Stockholm, 13 March 2014

Anders Olin Ari Kolehmainen Anette Vaini-Antila MD Chairman

Katrina Harjuhahto-Madetoja Merja Ritamo Åke Sahlin employee representative

Our audit report was presented on March 2014 Öhrlings PricewaterhouseCoopers AB

22

SIPU Annual report 2013

2012

Assets pledged for guarantees (Tacso I and II)

Birgitta Bjelkberg Authorized Public Accountant


Our corporate family

Our corporate family:

SIPU International is one of seven international subsidiaries of FCG – Finnish Consulting Group, a multi-industry consulting company operating worldwide. FCG provides services related to the development of public services, management consulting, multi-sector training and urban planning, as well as building and renovation construction. The Group’s client base consists of a wide spectrum of both private and public sector organisations. More than 40% of FCG’s turnover comes from international operations.

FCG’s strategy is to provide services tailored to meet the specific needs and requirements of FCG’s various clients. This is done by combining core project management capabilities with substance expertise, in cooperation with a variety of expert organisations globally. These partnerships include universities and other educational establishments, economic and social research organisations, public sector organisations, private consultancies and other companies, NGOs and independent consultants. FCG have been involved in creating well-being in more than 5 000 projects across the world with the experience of implementing complex, large-scale development projects in all our main sectors. The turnover of 2013 was 70,3 million Euros for FCG. The number of FCG Group’s employees is approximately 725. The Managing Director of FCG is Mr. Ari Kolehmainen, M.Sc. (Adm.). FCG is owned by the Association of Finnish Local and Regional Authorities.

FCG’s subsidiaries operate directly under the parent company. FCG’s international subsidiaries are:

The domestic subsidiaries in Finland are:

• FCG Anzdec Ltd, New Zealand

• FCG Training Ltd

• Invicta AS, Estonia • Finnish Consulting Group SRL, Romania • SIPU International AB, Sweden • POVVIK AD, Bulgaria.

• FCG Consulting Ltd • FCG Design and Engineering Ltd • FCG Knowledge Management Ltd • FCG International Ltd.

FCG – Working for well-being SIPU Annual report 2013

23


Our history :

1979

SIPU is established as the central public agency for training of civil servants

1981

SIPU’s first step on the international arena is taken in Sub-Saharan Africa: Botswana

1990

SIPU starts working in Eastern Europe in a series of projects addressing the transition process in the Baltic countries and Russia

1991

A cooperation between SIPU and The Mongolian Institute of Administration is established as SIPU’s first project in Asia

1992

The public agency SIPU is privatised and SIPU International AB is established

2001

The first project in Latin America is started in El Salvador

2007

SIPU International AB joins FCG Group 2010 SIPU International AB starts providing professional training in Sweden

2012

SIPU proudly looks back at 20 years as a private company

SIPU International AB Postal address: Box 45113 SE –104 30 Stockholm, Sweden Visiting address: Dalagatan 7 e-mail: info@sipuinternational.se Phone: +46 (0)8 698 06 00 Fax: +46 (0)8 698 06 10

B J ÖRKMAN & MI T CHELL AB

www.sipuinternational.se

SIPU Annual Report 2013  

SIPU International's Annual Report for 2013

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