Report and Accounts
2010
Sociedade Gestora dos Fundos de Pensões do Banco de Portugal, S.A.
Sociedade Gestora dos Fundos de Pensões do Banco de Portugal, S.A. | 1
TABLE OF CONTENTS
Data on Sociedade Gestora dos Fundos de Pensões do Banco de Portugal, S.A.
Members of the Company’s Boards
Management Report
1. Business Developed in 2010
2. Financial and Economic Condition
3. Proposal for the Allocation of Results
4. Closing Remarks
Financial Statements
Balance Sheet
Income Statement
Cash Flows Statement
Statement of Changes in Equity
Notes on the Financial Statements
Certification of the Financial Statements
Report of the Statutory Auditor
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DATA ON SOCIEDADE GESTORA DOS FUNDOS DE PENSÕES, S.A.
The Sociedade Gestora dos Fundos de Pensões do Banco de Portugal, S.A. was
incorporated on 3 June 1988 to manage the Banco de Portugal Pension Funds.
The authorised and issued capital is 1,000,000 euros.
Shareholders:
 The Banco de Portugal, with a shareholding corresponding to 98% as at 31
December 2010; and
 Members and beneficiaries of the Banco de Portugal Pension Fund –
Defined Benefit.
Its registered office and services are located at Av. da República, No 57, 7th floor, in
Lisbon.
As at 31 December 2010:
 The Company’s Net Assets stood at 2,630,190.11 euros;
 The Company’s Shareholders’ Equity amounted to 2,521,662.23 euros.
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SHAREHOLDERS’ MEETING
Chairman Armando da Silva Couto
Secretary Hernâni Fontoura Pires
BOARD OF DIRECTORS
Chairman António Manuel Martins Pereira Marta
Director Vítor Manuel da Silva Rodrigues Pessoa
Executive Director Helena Maria de Almeida Martins Adegas
Statutory Audito Ernst & Young Audit & Associados – S.R.O.C., S.A.
Alternate Statutory Auditor Rui Abel Serra Martins, R.O.C.
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MANAGEMENT REPORT
To the Shareholders,
Pursuant to the law and the articles of association, the Board of Directors hereby
submits the 2010 Report and Accounts and other documents concerning the 2010
financial year for your appraisal.
1.
BUSINESS DEVELOPED IN 2010
The Sociedade Gestora dos Fundos de Pensões do Banco de Portugal, S.A. is the entity
responsible for managing the Pension Funds of the Banco de Portugal, as well as for
preparing the actuarial valuations to compute the value of liabilities related to the
benefit scheme and other commitments financed by the Defined Benefit Pension
Fund. The Banco de Portugal holds 97.8% of the Sociedade Gestora’s equity and its
staff is mainly composed of employees of Banco de Portugal on secondment.
In 2010, it was particularly important the setting up of a new Defined Contribution
Pension Fund, which emerged as a result of the alterations to the general Social
Security Scheme applicable to bank employees, as well as to the Company-Level
Agreements (Acordos de Empresa) of the Banco de Portugal, published on 22 June
2009 in the Work and Labour Bulletin (Boletim de Trabalho e Emprego).
The new Banco de Portugal Defined Contribution Pension Fund covers the employees
of Banco de Portugal who started working in the banking sector after 3 March 2009
and who are covered by the general Social Security Scheme, by virtue of Degree Law
No 54/2009 of 2 March. This Fund is financed by contributions made by both the
Banco de Portugal and the employees. Adherence to the Fund is considered to be an
option for the employee and mandatory to the Banco de Portugal, given the
employee’s choice to join.
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The new Pension Fund’s main feature is to allow each participant to associate the risk
profile of the investment policy to their own life cycle. The Fund has been active since
the end of 2010, after authorization from the Instituto de Seguros de Portugal (The
Portuguese Insurance and Pension Funds Supervisory Authority) being granted.
During 2010, the project to implement the Regulatory Standard No 8/2009-R of 4
June of the Instituto de Seguros de Portugal on risk management and internal control
was pursued. In this context, a review of the organisational structure of the Sociedade
Gestora dos Fundos de Pensões was also proceeded, particularly through the
development of the internal audit and compliance function, as well as through the
formalisation of the risk management and internal control function.
Within this scope, the assessment project for the internal control system, which aims to
assess, implement and establish controlling procedures for the different risks incurred
by the Sociedade Gestora dos Fundos de Pensões was further developed.
As a result of another legislative change, which also had an impact on the activity
undertaken by the Sociedade Gestora, the preparatory steps were taken for the
integration in the general Social Security Scheme of the employees covered by the
substitutive social security scheme, provided for in the regulatory acts of the collective
labour agreement for the banking sector, and who were active staff on the publication
date of Decree-Law No 1-A/2011. This legislative change will imply the future sharing
of the liabilities relating to pension payments by statutory retirement age between both
this Pension Fund and the Social Security.
Regarding the investment on the systems and information technology, a new
technological infrastructure project supporting the Fund’s activity was implemented.
This project emerged from the recommendations issued within the scope of the
Business Continuity Plan with particular emphasis on the modernisation of the security
systems and the redundancy implementation in critical components.
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It was also of significant importance the joint implementation project with the Banco
de Portugal of a software upgrade for the management of financial and real estate
assets.
The Sociedade Gestora dos Fundos de Pensões continued to cooperate with its peers
of Portuguese-speaking countries, in order to develop pension funds for the employees
of the respective Central Banks. Within this scope, the training programmes in the
fields of accounting and actuarial calculation are particularly noteworthy.
2.
FINANCIAL AND ECONOMIC CONDITION
The operating of income, worth 3,572,780 Euros, decreased by 56,000 Euros (-1,57%)
from 2009, chiefly due to the reduction in the management commission paid by the
Sponsor.
The reduction aforementioned, which was decided by the Board of the Sociedade
Gestora, together with the added reduction of financial income and other income and
gains, resulted in a decrease of the total income by 165,746 euros (-4.52%) compared to
2009.
The total of costs and losses, before Corporate Income Tax (CIT), was kept virtually
stable compared to 2009 (+0.02%).
Resulting from the transition process of the Official Plan of Accounts (Plano Oficial de
Contabilidade – POC) to the new Accounting Standardization System (Sistema de
Normalização Contabilística - SNC), the amount of -3,917.27 Euros was reported as
Retained Earnings, mainly due to the assets derecognition.
Net income and equity stood at 78,137.83 Euros and 2,521,662.23 euros, respectively.
Thus, the solvency margin of the Sociedade Gestora, reached a coverage ratio of
131.98% at the end of the fiscal year.
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3.
PROPOSAL FOR THE ALLOCATION OF RESULTS
The net result of the Sociedade Gestora dos Fundos de Pensões do Banco de Portugal,
S.A., for the fiscal year of 2010, reached 78,137.83 euros and is proposed to be
allocated as follows:
Legal reserve:
3,906.89 euros
Other reserves: 74,230.94 euros
We also propose to transfer to Other Reserves the negative retained earnings, to the
amount of 3,917.27 euros, resulting from the adjustments of transition to the new
accounting base.
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4.
CLOSING REMARKS
The Board of Directors would like to conclude the 2010 Report and Accounts by
thanking all of those who contributed to the achieved results, being particularly worthy
of mention:
The Banco de Portugal, for its confidence and cooperation;
The Instituto de Seguros de Portugal, for the way it monitored the business of
the Sociedade Gestora dos Fundos de Pensões, S.A.;
The employees of the Sociedade Gestora, for the effort and high level of
professionalism shown in the performance of their duties.
Lisbon, 28 February 2011
The Board of Directors
António Manuel Martins Pereira Marta
Chairman
Vítor Manuel da Silva Rodrigues Pessoa
Director
Helena Maria de Almeida Martins Adegas
Executive Director
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FINANCIAL STATEMENTS
Balance Sheet
Income Statement
Cash Flows Statement
Statement of changes in Equity
Notes on the Financial Statements
Certification of the Financial Statements
Report of the Statutory Auditor
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BALANCE SHEET AS AT 31 DECEMBER 2011
EUR
Notes
31‐Dec‐10
31‐Dec‐09
ASSETS
Non‐current assets
Tangible fixed assets
4
258,929.76
229,204.04
Intangible fixed assets
4
92,014.86
101,005.54
Deffered income tax assets
8
1,828.60
3,805.95
352,773.22
334,015.53
52,221.57
0.00
Current assets
Other receivables
Deferrals
9
9
193,990.83
39,972.42
Financial assets held for trading
5
1,832,469.09
1,825,485.92
Cash and bank deposits
6
TOTAL ASSETS
198,735.40
499,956.60
2,277,416.89
2,365,414.94
2,630,190.11
2,699,430.47
SAREHOLDERS’ EQUITY AND LIABILITIES
Equity
Realised capital
7
1,000,000.00
1,000,000.00
Legal reserves
7
129,563.69
118,861.38
Other reserves
7
1,317,877.98
1,114,534.18
Retained earnings
7
‐3,917.27
‐61,547.25
Net profit (loss)
7
78,137.83
271,676.09
2,521,662.23
2,443,524.40
Total equity
Liabilities
Current liabilities
Suppliers
9
64,498.38
38,037.13
State and other public entities
8
25,119.12
24,875.90
Other payables
9
8,423.31
192,118.99
Deferrals
9
Total liabilities
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
10,487.07
874.05
108,527.88
255,906.07
108,527.88
255,906.07
2,630,190.11
2,699,430.47
The Board of Directors
António Manuel Martins Pereira Marta
The Accountant
Vitor Manuel da Silva Rodrigues Pessoa
Paulo José Antunes Jorge
Helena Maria de Almeida Martins Adegas
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Sociedade Gestora dos Fundos de Pensões do Banco de Portugal, S.A. | 11
INCOME STATEMENT BY NATURE
EUR
INCOME AND EXPENSES
Notes
31‐Dec‐10
31‐Dec‐09
Revenue
11
3,572,780.00
3,628,848.00
Administrative Expenses
12
‐1,169,519.40
‐1,107,985.74
Personnel costs
10
‐2,153,785.89
‐2,136,079.51
‐3,979.30
‐12.827.37
Provisions (increases/decreases)
15
Increases/decreases in fair value
14
Other income and gains
13
72,744.43
83,511.56
Other expenses and losses
16
‐93,069.16
‐44,511.92
225,170.68
446,299.89
4
‐133,294.32
‐127,884.37
91,876.36
318,415.52
19,950.00
39,569.28
Net Profit (Loss) before Depreciations, financial function and income tax
Expenses/reversals in amortisation and depreciation
35,344.87
Impairment on depreciable/amortisable investments (losses/reversals)
Operating profit (loss) before financial function and income tax
Interest and similar income received
17
Interest and similar expenses paid
17
Profit (loss) before income tax
Income tax
Net profit (loss) for the period
‐16.30
111.810,06
357,984.80
‐33,672.23
‐86,308.71
78,137.83
271,676.09
The Board of Directors
António Manuel Martins Pereira Marta
The Accountant
Vitor Manuel da Silva Rodrigues Pessoa
Paulo José Antunes Jorge
Helena Maria de Almeida Martins Adegas
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CASH FLOWS STATEMENT
EUR
INCOME AND EXPENSES
31‐Dec‐10
31‐Dec‐09
Proceeds from clients
2,319,428.47
3.702.027,51
Payments to suppliers
‐1,036,470.47
‐1.162.958,75
Payments to personnel
‐1,007,778.97
‐1.934.025,80
275,179.03
605.042,96
‐57,775.98
‐99.195,27
Cash generated from operations
Payment/proceeds from Corporate Income Tax
Other proceeds/payments
Cash flows from operating activities (1)
‐286.192,19
‐22.504,13
‐68.789,14
483.343,56
‐161.718,11
‐42.906,94
CASH FLOWS FROM INVESTING ACTIVITIES Payments in respect of:
Tangible fixed assets
Intangible assets
Financial investments
‐73.466,23
‐6.478,07
‐1.954.150,52
‐3.872.179,13
Proceeds from:
Tangible fixed assets
39,98
Intangible assets
Financial investments
Interest and similar income
Cash flows from investing activities (2)
1.955.853,00
3.644.799,79
1.049,80
884,41
‐232.432,06
‐275.839,96
CASH FLOWS FROM FINANCING ACTIVITIES
Cash flows from financing activities (3)
Change in cash and cash equivalents (1+2+3)
0,00
0,00
‐301.221,20
207.503,60
Cash and cash equivalents at beginning of period
499.956,60
292.453,00
Cash and cash equivalents at end of period
198.735,40
499.956,60
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STATEMENT OF CHANGES IN THE SHAREHOLDERS’ EQUITY AS AT 31 DECEMBER 2009
EUR
EQUITY ASSIGNED TO SHAREHOLDERS
REALISED
CAPITAL
AS AT 1 JANUARY 2009
1
LEGAL RESERVES
1,000,000.00
OTHER RESERVES
113,373.23
RETAINED EARNINGS
NET PROFIT/LOSS FOR THE PERIOD
1,010,259.27
TOTAL EQUITY
TOTAL
109,763.06
2,233,395.56
2,233,395.56
0.00
‐61,547.25 ‐61,547.25 271,676.09
271,676.09
271,676.09
210,128.84
210,128.84
0.00
0.00
2,443,524.40
2,443,524.40
CHANGES IN THE PERIOD
13,670.63
New accounting principles – first application
Translation differences of financial statements
Revaluation surplus of tangible and intangible fixed assets
‐132,228.58 Revaluation surplus of tangible and intangible fixed assets and respective changes
57,010.70
Deferred income tax adjustments
Other changes in equity
2
NET PROFIT/LOSS FOR THE PERIOD COMPREHENSIVE RESULT
0.00
0.00
0.00
‐61,547.25
3
4=2+3
SHAREHOLDERS’ EQUITY MOVEMENTS IN THE PERIOD
5,488.15
104,274.91
‐109,763.06
0.00
5,488.15
104,274.91
0.00 ‐109,763.06
1,000,000.00
118,861.38
1,114,534.18
Allocations
Other operations
5
AS AT 31 DECEMBER 2009
6=1+2+3+5
‐61,547.25
271,676.09
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STATEMENT OF CHANGES IN THE SHAREHOLDERS’ EQUITY AS AT 31 DECEMBER 2010
EUR
EQUITY ASSIGNED TO SHAREHOLDERS
REALISED
CAPITAL
AS AT 1 JANUARY 2010
LEGAL
RESERVES
OTHER RESERVES
6
1,000,000.00
118,861.38
1,114,534.18
7
0.00
0.00
0.00
RETAINED
EARNINGS
NET PROFIT/LOSS FOR THE PERIOD
‐61,547.25 271,676.09
TOTAL EQUITY
TOTAL
2,443,524.40
2,443,524.40
0.00
0.00
0.00
78,137.83
78,137.83
78,137.83
78,137.83
78,137.83
CHANGES IN THE PERIOD
New accounting principles – first application
Revaluation surplus of tangible and intangible fixed assets
Revaluation surplus of tangible and intangible fixed assets and respective changes
Deferred income tax adjustments
Other changes in equity
NET PROFIT/LOSS FOR THE PERIOD COMPREHENSIVE RESULT
0.00
8
9=7+8
SHAREHOLDERS’ EQUITY MOVEMENTS IN THE PERIOD
Allocations
10,702.31
203,343.80
57,629.98 ‐271,676.09
0.00
0.00
0.00
10,702.31
203,343.80
57,629.98 ‐271,676.09
0.00
0.00
1,000,000.00
129,563.69
1,317,877.98
2,521,662.23
2,521,662.23
Other operations
10
AS AT 31 DECEMBER 2010
6+7+8+10
‐3,917.27 78,137.83
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PRESENTATION
The Sociedade Gestora do Fundo de Pensões do Banco de Portugal, S.A. was
incorporated on 3 June 1988 through a notary deed entered on folio 74 to folio 76 of
deed book No 677 - C of the 9th Lisbon Notary Office, and its corporate object is to
administer, manage and represent the Banco de Portugal Pension Funds.
Its incorporation was authorised by Executive Order No 245/88 of 20 April of the
Ministry of Finance.
In 2010, the company name was altered to Sociedade Gestora dos Fundos de Pensões
do Banco de Portugal, S.A..
Note 1 – BASIS OF PREPARATION
After Decree-Law No 158/2009 of 13 July having entered into force on 1 January
2010, the Sociedade Gestora dos Fundos de Pensões do Banco de Portugal, S.A. was
complied to adopt the standards listed in the Accounting Standardization System
(SNC), which is based on the International Accounting Standards, published by IASB
(International Accounting Standards Board) and adopted by the European Union.
The financial statements were prepared for the first time in 2010 in accordance with
the Accounting Standards and the Financial Report (NCRF) approved by the
Administration Board on 31 January 2011.
The financial statements had been approved and published according to the provisions
of the Official Accounting Plan until 31 December 2009. However, so as to meet
adequate comparability standards, these financial statements were subject to
adjustment, in order to conform to the SNC.
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The adjustments of transition report back to 1 January 2010 and were made in
accordance with the provisions of “IFRS 1 – The first adoption of the International
Financial Reporting Standards”.
The disclosures established by the Standard aforementioned, with regard to the
transition of the accounting standards in force in Portugal to the Financial Report
(CNRF) will be disclosed in Note 18.
The main accounting policies used in the preparation of the financial statements were
the following:
Intangible Assets
Intangible assets consist mainly of application software. These are initially valued at
their acquisition cost and include all costs incurred in implementing the software for
internal use. Subsequently, adjustments are made to meet the accumulated
depreciation.
These costs are amortized, on a straight line basis, over the estimated useful life of the
assets, which does not exceed 3 years regarding computer applications (33.33% rate).
Tangible Fixed Assets
Tangible fixed assets are valued at their cost value less depreciation. These costs are
amortized on a straight-line basis over the expected useful life of each underlying asset,
as shown in the following table:
Basic equipment Office equipment: office, furniture, fittings and social Other tangible assets Annual percentage 10.00%
10 to 33.33%
10.00%
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Any gains and losses arising from write-offs or disposals are determined by the
difference between the amounts actually received and the book value of the asset.
These are recorded in the financial statements as income or expense.
Financial assets held for trading
These assets are acquired principally for both the purpose of selling in the short-term
and for the purpose of generating a profit, whether based on income, or on fluctuation
in price.
The purchase and sales of financial assets are recorded at the time of transaction and
are immediately recognised at fair value. The gains and losses, whether realised or not,
arising from changes in the fair value, are included in the financial statement in the
period in which they arise, under either profit or loss accounts.
The fair value of investments is calculated on current bid prices. As for listed securities,
whose quotes significantly deviate from the fair value, this is established by using
appropriate valuation techniques regarding each type of financial asset. Hence, to
obtain fair values, it is taken into consideration the recent transaction price of similar
assets, carried out by unrelated parties, as well as valuation techniques such as
discounted cash-flow analysis.
The valuation of listed securities with low liquidity in regulated markets and chiefly
traded over the counter is determined by using prices made available by the main
providers of financial information.
Interests and charges are recorded in their specific accounts upon establishment of
receipt or payment, save for dividends, which are recorded upon receipt.
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Recognition of income and costs
In accordance with the accrual principle, income and costs are recognised according to
the duration of the operations, i.e., they are recorded as they arise, without taking into
account the time in which they are received or paid.
Income is only recognised if the future economic benefits associated to each
transaction are likely to flow to the Sociedade Gestora, and when the revenue can be
reliably measured.
Income tax
Income tax is calculated on a taxable result basis, in accordance with deferred taxes.
Deferred tax assets are recognised only to the extent of the probable existence of
sufficient expected future taxable income to absorb the deductible temporary
differences.
Deferred tax assets are recalculated on an annual basis and adjusted to meet the
expectable usage value in accordance with the provisions laid down in the corporate
income tax code applicable to the period in which deferred tax assets are realised.
Note 2 – ASSUMPTIONS, JUDJEMENTS AND ESTIMATES USED IN THE
PREPARATION OF THE FINANCIAL STATEMENTS
In the preparation of the current financial statements, we elaborated estimates and
adopted assumptions, which affect the accounting value of the assets, liabilities,
revenues and expenses, as well as contingent liabilities, if applicable.
The elaborated assumptions and estimates were based on the information available
until the approval date of the accounts given by the Administration Board on 28
February 2010.
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Note 3 – FINANCIAL RISK MANAGEMENT
The Sociedade Gestora is subject to several financial risks, namely, market risk
(exchange and interest rate), credit and liquidity risk:
i)
Exchange rate risk, given the lack of assets denominated in foreign currency,
results from the acquisition of goods and services in currencies other than the
Euro, thus, there being no need for coverage negotiation;
ii)
Interest rate risk arises from financial investments, at a fixed or variable rate,
which are managed so as to ensure adequate liquidity and a low counterparty
risk;
iii)
Credit risk, given the nature of the activity pursued by the Sociedade Gestora, is
ensured by the existence of contractual agreements with the main shareholder;
iv)
Liquidity risk is prudently managed by maintaining sufficient cash and cash
equivalents available for the pursue of the activity, as well as by trading
financial investments in the short-term.
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Note 4 – MOVEMENTS IN FIXED ASSETS
Movements in fixed assets, including depreciation, were as follows:
EUR
Opening Balance
Increases
Write‐offs
Closing Balance
INVESTMENTS
TANGIBLE FIXED ASSETS
Basic equipment
Office equipment
Other tangible assets
270,420.34
734,695.73
73,936.48
1,079,052.55
76,701.38
29,212.72
0.00
105,914.10
68,623.18
171,643.57
0.00
240,266.75
278,498.54
592,264.88
73,936.48
944,699.90
117,229.02
1,591,660.95
1,708,889.97
2,787,942.52
0.00
48,115.26
48,115.26
154,029.36
117,229.02
884,796.20
1,002,025.22
1,242,291.97
0.00
754,980.01
754,980.01
1,699,679.91
186,812.28
614,774.32
41.631,97
843,218.57
22,694.24
47,360.48
6,133.66
76,188.38
62,175.62
171,461.19
0.00
233,636.81
147,330.90
490,673.61
47,765.63
685,770.14
117,229.01
1,490,655.41
1,607,884.42
2,451,102.99
0.00
57,105.94
57,105.94
133,294.32
117,229.02
884,796.20
1,002,025.22
1,235,662.03
‐0.01
662,965.15
662,965.14
1,348,735.28
336,839.53
20,735.04
6,629.94
350,944.63
INTANGIBLE FIXED ASSETS
Development projects
Computer software
DEPRECIATION
TANGIBLE FIXED ASSETS
Basic equipment
Office equipment
Other tangible assets
INTANGIBLE FIXED ASSETS
Development projects
Computer software
Note 5 – MARKETABLE SECURITIES
At the end of the year, the securities’ portfolio is broken down as follows:
EUR
31‐Dec‐10
Currency
Amount
Average cost
31‐Dec‐09
Capital gains/ Accrued Book value
interest
losses
Book value
FINANCIAL INSTRUMENTS HELD FOR TRADING Treasury bills
Treasury bonds
Total
EUR
1,552,000.00
1,540,051.55
EUR
280,000.00
1,832,000.00
4,657.26
0.00
1,544,708.79
803,773.98
288,919.20
‐8,250.27 7,091.37
287,760.30
1,021,711.94
1,828,970.75
‐3,593.01 7,091.37
1,832,469.09
1,825,485.92
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Note 6 - CASH AND CASH EQUIVALENTS
This heading is broken down as follows:
EUR
Demand deposits
31‐Dec‐10
31‐Dec‐09
197,488.42
148,709.62
0.00
350,000.00
197,488.42
498,709.62
Term deposits
The amount of 1,246.98 Euros regarding the cash fixed fund should be added to the
amounts aforementioned.
Note 7 – SHARE CAPITAL, RESERVES AND RETAINED EARNINGS
The equity of the Sociedade Gestora is fully paid up and is represented by 200,000
shares with a nominal value of 5 euros each.
The list of shareholders, as set forth in No 4 of Decree 448 of the code of Commercial
Companies, as at 31 December 2010, is as follows:
Holder
Shares
Banco de Portugal
195,564
%
97.78%
The changes in the shareholders’ equity structure are recorded on the Statement of
Changes in the Shareholders’ Equity.
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Resulting from the transition process of the Official Plan of Accounts to the new
Accounting Standardization System, the amount of -3,917.27 euros was recorded under
Retained Earnings, mainly due to the derecognition of assets.
Note 8 - STATE AND OTHER PUBLIC ENTITIES
The detailed balances in this section of the balance sheet, on 31 December 2009 and
2010, are as follows:
EUR
31‐Dec‐10
31‐Dec‐09
STATE AND OTHER PUBLIC ENTITIES
Corporate Income Tax payable
1,491.79
23,403.52
Retained taxes
1,987.79
438.98
20,951.59
357.02
687.95
676.38
25,119.12
24,875.90
Value Added Tax
Contributions to the Social Security
Under current legislation, the Sociedade Gestora is subject to Corporate Income Tax
and is not only framed as having “Management Funds Activities” , but also subject to
the general scheme of income taxation. Hence on the profit earned in each tax period,
a nominal tax rate of 25% is charged.
Additionally, in each tax period, 1.5% of income from the Corporate Municipal Tax is
charged on the taxable income not exempt from Corporate Income Tax.
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Tax returns of the Sociedade Gestora can be reviewed and corrected by the tax
authorities, for a four-year period, with the exception of the Social Security statements,
which may be reviewed for a five-year period, in both cases, with the exceptions
foreseen by Law.
In late 2010, this exceptions were not applicable to the Sociedade Gestora, namely due
to the absence of tax losses or tax benefits, or due to the fact that there were no tax
audits in progress, complaints or fiscal challenges that, depending on the case, may
extend or suspend the aforementioned time-limit.
The tax authorities may still make corrections whenever special agreements, on
different terms from those that would normally be agreed with independent entities,
have been established.
During the fiscal year of 2010, the tax authorities conducted an internal audit, regarding
the 2008 fiscal year, from which no adjustments to the taxable base or to the missing
tax determination took place.
The board of the Sociedade Gestora believes that any adjustments resulting from tax
reviews, applicable to the exercises subject to revision, should not have any significant
impact on the financial statements presented.
The Sociedade Gestora recognises the tax effects of the temporary differences between
the accounting and tax result, for purposes of taxation on Corporate Income Tax
regarding the depreciation of the securities portfolio.
Deferred income taxes represent the recoverable and payable tax value in the
foreseeable future resulting from temporary differences. Deferred taxes are calculated
and evaluated annually by using the current effective tax rate when the temporary
differences reverse.
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In the transition to the Accounting Standardization System, the deferred income taxes
associated to the transition adjustments were recognised, as well as deferred taxes on
assets and liabilities not recognised in accordance with the rules of the Official Plan of
Accounts.
The amount recorded in Deferred Taxes was of 1,828.60 euros.
Note 9 – SUPPLIERS, DEFERRALS AND OTHER RECEIVABLE AND
PAYABLE VALUES
This heading is broken down as follows:
EUR
Suppliers
Deferred taxes
Deferred assets
Deferred liabilities
31‐Dec‐10
31‐Dec‐09
64,498.38
38,037.13
1,828.60
3,805.95
193,990.83
39,972.42
10,487.07
874.05
The amount regarding the item Suppliers records the movements of current accounts.
On 31 December 2010, the value recorded on deferred assets highlights in particular
the monthly payments incurred for services regarding Information Systems. It should
also be mentioned that the amount of 7,744.00 euros for costs incurred for audit
services is included in deferred liabilities.
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The recorded amount of 8,423.31 euros, on the same date, corresponds mostly to legal
services rendered in 2010, which were paid in early 2011.
The receivable amount of 52,221.57 euros related to the Banco de Portugal employees
on secondment was recorded in late 2010 and represents a value to be settled by the
Banco de Portugal in 2011.
Nota 10 – PERSONNEL COSTS
This heading is broken down as follows:
EUR
Personnel salaries
31‐Dec‐10
31‐Dec‐09
2,118,217.57
2,074,800.40
6,377.97
6,493.68
29,190.35
54,785.43
2,153,785.89
2,136,079.51
Charges with salaries
Other costs
The item Personnel salaries corresponds to the amounts reimbursed to the Banco de
Portugal on the charges paid to the employees of the Sociedade Gestora, who are
employees of the Banco de Portugal on secondment.
Other costs include mostly the training costs incurred by the Sociedade Gestora.
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Note 11 – REVENUES
Revenues exclusively concern the management commission, whose value is set on an
annual basis in accordance with the management agreement entered into by and
between the Banco de Portugal and the Sociedade Gestora.
Following a resolution by the Board of Directors of the Sociedade Gestora, the
management fees for 2010 were set at 3,572,780 euros.
Note 12 – ADMINISTRATIVE EXPENSES
At the end of the fiscal years of 2009 and 2010, this heading is as follows:
EUR
31‐Dec‐10
31‐Dec‐09
693,455.13
636,483.34
5,684.85
6,817.93
Enery and fluids
21,267.35
20,957.27
Travel, accommodation and transport
18,444.60
15,263.01
430,667.47
428,464.19
1,169,519.40
1,107,985.74
ADMINISTRATIVE EXPENSES
Specialised services
Materials
Sundry services
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Note 13 – OTHER INCOME AND GAINS
Other Income and gains, on 31 December 2009 and 2010, were as follows:
EUR
31‐Dec‐10
31‐Dec‐09
315.84
1,919.50
Income and gains in disposals
5,557.69
7,805.20
Excess of estimated taxes
1,562.50
0.00
Additional income
11,913.16
11,587.28
Other
53,395.24
62,199.58
72,744.43
83,511.56
OTHER INCOME AND GAINS
Corrections to preceding years
Note 14 – INCREASES AND DECREASES IN FAIR VALUE
The losses and gains resulting from fair value of the financial instruments held for
trading are as follows:
EUR
31‐Dec‐10
31‐Dec‐09
Losses due to decreases in fair value
7.314,41
15.540,04
Gains due to increases in fair value
3.335,11
2.712,67
‐3.979,30
‐12.827,37
INCREASES AND DECREASES IN FAIR VALUE
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Note 15 – PROVISIONS
At the end of 2010 there were no movements made in provisions.
EUR
31‐Dec‐10
31‐Dec‐09
REVERSALS OF PROVISONS
Current Law‐Suits
0.00
35,344.87
0.00
35,344.87
Note 16 – OTHER EXPENSES AND LOSSES
This heading is broken down as follows:
EUR
31‐Dec‐10
31‐Dec‐09
Indirect taxes
60,441.98
18,656.15
Fees
11,666.27
9,249.42
Expenses and losses in disposals
6,267.89
4,256.54
Corrections to preceding years
3,921.70
2,231.77
Contributions
8,400.00
7,950.00
Fees and other financial expenses
2,371.32
2,167.76
93,069.16
44,511.64
OTHER EXPENSES AND LOSSES
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Nota 17 – INTEREST AND INCOME RECEIVED AND INTEREST AND
EXPENSES PAID
At the end of the fiscal years of 2009 and 2010, this heading is as follows:
EUR
31‐Dec‐10
31‐Dec‐09
INTEREST AND INCOME RECEIVED
Interest received from deposits
2,608.88
2,213.79
17,341.12
37,355.49
19,950.00
39,569.28
Interest on arrears and compensatory
16.49
0.00
Others
‐0.19
0.00
16.30
0.00
19,933.70
39,569.28
Interest received from investments
SIMILAR INTEREST AND EXPENSES
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Note 18 – TRANSITION ADJUSTMENTS
The main adjustments made following the transition of the Official Plan of Accounts
to the new Accounting Standardization System are as follows:
EUR Retained
Earnings
Net Profit/Loss
Deferred Income Taxes
Tangible Fixed Assets
Accumulated Depreciation
‐1.242.291,97
1.110.063,39
Restructuring Provision
Financial Instruments held for Trading
Derecognition of assets recorded in POC in tangible and intangible assets
Cancellation on 01/01/2009 of fixed assets
132.228,58
Establishment of deferred income tax
‐34.307,62
34.307,62
Derecognition of depreciation
‐125.598,64
Reversal of deferred tax by applying the effective tax rate
32.587,43
125.598,64
‐32.587,43
Securities Fair Value
Adjustments in the portfolio fair value
Recognition of deferred tax by applying the effective tax rate
Recognition of the securities fair value Negotiable on 31/12/2009
Recognition of deferred tax regarding the fair value of securities in 2009
Derecognitionof gains and losses realised in financial investments
Reversal of deferred tax inherent in fair value of securities on their disposal
‐13.670,63
13.670,63
3.546,93
‐3.546,93
‐2.712,67
703,82
2.712,67
‐703,82
‐13.670,63
‐3.465,00
13.670,63
3.465,00
Cancellation of the Restructuring Provision
Cancellation of provision
‐35.000,00
Establishment of deferred tax regarding provision
8.750,00
Derecognition of the cancellation of the restructuring provision made in 2009
Reversal of deferred tax regarding the restructuringprovision
35.000,00
‐8.750,00
35.000,00
‐8.750,00
‐35.000,00
8.750,00
Note 19 - REMUNERATION OF THE MANAGEMENT AND
SUPERVISORY BOARD
In compliance with Article 3 of Law No 28/2009 of 19 June, it should be highlighted
that members of the Board of Directors of the Sociedade Gestora dos Fundos de
Pensões do Banco de Portugal, S.A. did not receive any remuneration in 2010.
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The supervisory board of the Sociedade Gestora, consisting of a Statutory Auditor,
represented by Ernst & Young Audit & Associados, SROC, S.A. received a fee
amounting to 15,246 euros, with reference to 2010.
Note 20 – SUSPENSE ACCOUNTS
In accordance with the Standards of the Instituto de Seguros de Portugal, the accounts
of the Banco de Portugal Pension Funds, managed by the Sociedade Gestora, are
recorded under the following off-balance sheet accounts:
01 – Banco de Portugal Pension Funds
02 – Management of the Banco de Portugal Pension Funds
As at 31 December 2010, these accounts were balanced and amounted to
1,235,684,436.80 euros, corresponding to the net assets of the two Pension Funds
under management.
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CERTIFICATION OF THE FINANCIAL STATEMENTS
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Sociedade Gestora dos Fundos de Pensões do Banco de Portugal, S.A. | 33
Ernst & Young
ERNST & YOUNG
Audit & Associados – SROC, S.A.
Avenida da República, 90, 6th floor
1600-206 Lisbon
Portugal
Tel: +351 217 912 000
Fax: +351 217 957 586
www.ey.com
Legal Certification of Accounts
Introduction
1. We have audited the attached financial statements of Sociedade Gestora dos
Fundos de Pensões do Banco de Portugal, which comprise the Balance Sheet as at
31 December 2010 (which shows total assets of 2,630,190.11 Euros and total
shareholders’ equity of 2,521,662.23 Euros, including net profits of 78,137.83
Euros), the Income Statement by Nature, the Statement of Changes in Equity and
the Cash Flows Statement for the year then ended, as well as the corresponding
Notes.
Responsibilities
2. The Board of Directors is responsible for preparing financial statements, which
give a true and fair view of the financial condition of the Managing Company, the
results of its operations, the changes in its equity and cash flows, as well as for
adopting appropriate accounting policies and criteria and maintaining an
appropriate internal control system.
3. We are responsible for expressing an independent and professional opinion on the
basis of our audit of the aforementioned financial statements.
Scope
4. We conducted our audit in accordance with the Standards and Technical
Recommendations issued by the Institute of Statutory Auditors, which require that
we plan and execute with a view to obtaining reasonable assurance whether the
financial statements are free from material misstatement. Accordingly, the
aforementioned audit included:
___________________________________________________________________
Limited liability company * Share capital 1,105,000 euros * Registered in the Statutory Auditors’ Association under no. 178 * Registered in the
CMVM under no. 9011 * Taxpayer no. 505 988 283 * Registered in the Lisbon Commercial Registry under the same number * A member of Ernst &
Young Global Limited
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Sociedade Gestora dos Fundos de Pensões do Banco de Portugal, S.A. | 34
 examination, on a test basis, of documentation supporting the amounts and
disclosures in the financial statements and an evaluation of the estimates, based
on the judgements and criteria defined by the Board of Directors, used in the
preparation of the financial statements;
 an assessment as to whether the accounting policies and the disclosures adopted
are appropriate, as applicable;
 assessing that the accounts were prepared on a going-concern basis; and
 an overall assessment of the appropriateness of the financial statements.
5. Our audit also covered the verification that the financial information included in
the Management Report is consistent with the financial statements.
6. We believe that the audit carried out provides a reasonable basis for expressing our
audit opinion.
Opinion
7. In our opinion, the aforementioned financial statements present fairly, in all
material respects, the financial position of Sociedade Gestora dos Fundos de
Pensões do Banco de Portugal as at 31 December 2010, the results of its
operations and the changes in its equity and cash flows for the financial year then
ended, in accordance with accounting principles generally accepted in Portugal.
Report on other legal requirements
8. It is also our opinion that the financial information included in the Management
Report is consistent with the financial statements for the year.
Lisbon, 12 March 2010
Ernst & Young Audit & Associados – SROC, S.A.
Firm of Statutory Auditors (no. 178)
Represented by:
[signature]
Ana Rosa Ribeiro Salcedas Montes Pinto (ROC no. 1230)
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REPORT OF THE STATUTORY AUDITOR
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Ernst & Young
ERNST & YOUNG
Audit & Associados – SROC, S.A.
Avenida da República, 90, 6th floor
1600-206 Lisbon
Portugal
Tel: +351 217 912 000
Fax: +351 217 957 586
www.ey.com
Report of the Statutory Auditor
To the Shareholders
In compliance with the provisions of sub-paragraph g) of article 420 of the “Código
das Sociedades Comerciais” (the Portuguese Companies Act), we issue the annual
report on our auditing activities and give our opinion on the Management Report, the
Financial Statements and the proposal on the distribution of results presented by the
Board of Directors of the Sociedade Gestora dos Fundos de Pensões do Banco de
Portugal, relating to the financial year ending on 31 December 2010.
During the financial year of 2010, we monitored the Company’s activities and did the
following:
 Verified, to the extent deemed appropriate, the accounting records and
supporting documents;
 Verified, when appropriate and to the way and extent deemed appropriate, the
existence of goods or valuables belonging to the Sociedade Gestora, or
received by way of guarantee, deposit or other;
 Verified the accuracy of the documents for rendering of accounts;
 Verified that the accounting policies and the valuation criteria, which include
those arising from the first application of the Accounting Standardization
System, approved by Decree-Law No 158/2009 of 13 July, lead to a correct
assessment of the assets and earnings;
 Assessed the efficacy of the risk management, internal monitoring and internal
audit systems;
_________________________________________________________________________________
Limited liability company * Share capital 1,105,000 euros * Registered in the Statutory Auditors’ Association under no. 178 * Registered in the
CMVM under no. 9011 * Taxpayer no. 505 988 283 * Registered in the Lisbon Commercial Registry under the same number * A member of Ernst &
Young Global Limited
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Sociedade Gestora dos Fundos de Pensões do Banco de Portugal, S.A. | 37
 Showed availability to receive reports of irregularities from the shareholders,
the employees and other (if any);
 Confirmed that the Management Report, the Balance Sheet, the Income
Statement by Nature, the Statement of Comprehensive Income, the Statement
of Changes in Equity, the Cash Flows Statement and Notes, are in accordance
with the applicable laws and regulations and reflect the position of the
accounting records at the end of the year;
 Ensured compliance with the law and the articles of association;
 Fulfilled the duties required by the law and the articles of association.
During our auditing activities we counted on the evidence and clarification, which we
felt to be necessary, of the Board of Directors and the Company’s services.
Within the scope of the work done for Statutory purposes, we have issued, on the date
hereof, the corresponding unqualified Legal Certification of Accounts.
In the light of what has been said, we are of the opinion that:
Opinion of the Statutory Auditor
To the shareholders,
We have inspected Sociedade Gestora dos Fundos de Pensões do Banco de Portugal
under the provisions of article 420 of “Código das Sociedades Comerciais” (The
Commercial Companies Act) and we declare that:
a) The proposal for the distribution of results contained in the Management
Report for the year 2010 is in accordance with the requirements regarding the
constitution of the legal reserve and with the limits of profit distribution to the
members, foreseen in the Commercial Companies Act.
b) The Management Report for the financial year 2010 complies with the
requirements foreseen in the Commercial Companies Act.
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c) The balance-sheet, the Income Statement by Nature, the Statement of
Comprehensive Income, the Statement of Changes to Equity and the Cash
Flows Statement and the corresponding Notes for the year 2010, meet the
applicable legal and accounting requirements.
Lisbon, 12 March 2010
The Single Supervisor
Ernst & Young Audit & Associados – SROC, S.A.
Firm of Statutory Auditors (no. 178)
Represented by:
[signature]
Ana Rosa Ribeiro Salcedas Montes Pinto (ROC no. 1230)
Relatório e Contas | 2010