Decree No. 296 / 2010 Coll.
Order on procedures for drawing up the financial model and determining the maximum amount of compensation
Valid
Order
Effective from 01.11.2010
Text versions:
01.11.2010
29.10.2010
296
DECLARATION
of 20 October 2010
on procedures for drawing up the financial model and determining the maximum amount of compensation
The Ministry of Transport provides pursuant to § 36 (2) of Act No. 194 / 2010 Coll., on public passenger transport services and amending other laws, for the implementation of § 23 (7):
Subject matter
This decree provides for a direct application of the European Union1)
(a) the method of drawing up the financial model and determining overcompensation;
(b) the costs, revenues and operating assets which may be used to establish the financial model;
(c) the way in which the costs, revenues and operating assets of the carrier are demonstrated by the client;
(d) the definition of net income and the maximum allowable rate of return on capital; and
(e) rules on changes in the level of compensation.
Definition of terms
For the purposes of this decree:
(a) the initial financial model of the model of revenues, costs and net income to be derived from the public passenger transport service contract;
(b) the initial costs assumed by the economically justified costs indicated in the initial financial model affecting net income;
(c) the initial revenue of the forecast revenue shown in the initial financial model which affects net income;
(d) the actual costs of the actual economically justified costs of the carrier during the period;
(e) the actual revenues realised by the carrier during the period;
(f) compensation for the amount to be paid by the client during the period under the public passenger transport service contract;
(g) net income, the sum of the compensation and the revenue minus costs; and
(h) operating assets of long-term tangible and intangible assets (2) which are strictly necessary to ensure the performance of the contract obligation.
Initial financial model and method of determining overcompensation
(1) The initial financial model shall be drawn up in the structure set out in Annex 1 to this Regulation for public passenger transport services in public rail transport and Annex 2 to this Regulation for public passenger transport services in public regular transport.
(2) The initial financial model shall be designed to cover all assumptions known at the time of conclusion of the contract and their expected development and to avoid negative net income.
(3) In the case of a public service contract concluded on the basis of a direct award, this is an overcompensation if, in any year under the initial financial model, the share of net income on operating assets exceeds the maximum allowable rate of return on capital under Section 7.
Costs
(1) Where the procedure referred to in paragraph 2 is not applied, the initial and actual costs shall be included:
(a) the costs incurred in achieving, securing and maintaining income under the Income Tax Act (3) necessary for the performance of the contract obligation, with the exception of:
1. depreciation under the Income Tax Act (3), instead of which the cost of accounting depreciation is applied under the Accounting Act (4),
2. Remaining prices of tangible and intangible assets sold and disposed of;
3. costs incurred by the carrier for advertising other than its own services under a public service contract in its premises or in vehicles exceeding the revenue generated by that activity; and
4th Gifts,
(b) the cost of an operating advance of 15% of the fleet required to ensure the performance of the contract obligation;
(c) the cost of port, weaning and crossing trips resulting from the performance of a contract obligation;
(d) instalments associated with the lease of goods linked to the right of subsequent purchase (lease);
(e) repayments of the leasing company for cases previously owned by the carrier and subsequently sold to the leasing company and leased by the carrier with the right of subsequent purchase ("reverse leasing");
(f) adjustments and write-offs of irrecoverable claims arising from the performance of the obligation under the contract;
(g) damage not caused by the carrier and not covered by insurance premiums;
(h) the cost of promoting its own services under the public service contract; and
(i) remuneration of members of the carrier's statutory bodies; for each of them up to a maximum of six times the average monthly wage for the national economy on the month of December preceding the calendar year declared by the Czech Statistical Office.
(2) The public service contract may provide that the costs referred to in points (b) to (h) of paragraph 1 and the costs of promoting own services operated under the public service contract shall not be included in the initial and actual costs or shall be included to a different extent. The remuneration of the members of the carrier's statutory bodies may be included in the initial and actual costs only within the maximum amount referred to in paragraph 1 (i).
(3) The actual costs shall be presented by the carrier in respect of a public service contract concluded on the basis of a direct award in the structure referred to in Annex 3 to this Regulation in the case of public passenger transport services in public rail transport and in accordance with Annex 4 to this Regulation in the case of public passenger services in public regular transport.
Proceeds
(1) The initial and actual revenues include revenue from the fare, revenue for other services covered by the contract, revenue from the carriage of baggage, premiums for non-compliance with the timetable (5), and other revenues made in connection with the provision of the carrier's performance under the public service contract, excluding the proceeds from the sale of long-term assets.
(2) If the contract does not provide otherwise, the proceeds from the sale of the property in the course of the lease shall be included, which shall be differentiated in time for the purposes of this decree for the duration of the lease.
(3) The actual revenues shall be presented by the carrier in respect of a public service contract concluded on the basis of a direct award in the structure referred to in Annex 3 to this Regulation in the case of public passenger transport services in public rail transport and in accordance with Annex 4 to this Regulation in the case of public passenger services in public scheduled transport.
Operating assets
(1) The operating assets of the carrier shall be recognised by the carrier before the conclusion of the contract in the structure referred to in Annex 5 to this Decision.
(2) The value of operating assets for each period is determined as the residual price at the end of the immediately preceding accounting year.
(3) Long-term tangible and intangible assets are only included in the operating assets on the part of the residual price from which they are used to discharge the public service obligation in question.
(4) Operating assets are not included
(a) fixed fixed assets and intangible assets,
(b) advances on tangible and intangible fixed assets granted;
(c) property or part thereof acquired using a subsidy; and
(d) valuable rights and goodwill under other legislation6).
(5) In the case of the acquisition of assets in the form of leasing, the carrier shall include in the operating assets the first exceptional payment to the leasing company, the value of which for the purposes of this decree is equally reduced over the duration of the lease.
(6) The procedure referred to in paragraph 5 shall not apply in the case of reverse leasing.
(7) The actual operating assets shall be submitted by the carrier in the case of a public service contract concluded on the basis of a direct award in the structure referred to in Annex 6 to this Decree.
Maximum allowable rate of return on capital
(1) The maximum allowable rate of return on capital is 7,5% per year of the operating assets defined in Section 6.
(2) The share of net income in operating assets is determined by the public service contract so as not to exceed the maximum allowable rate of return per capital.
Rules on changes in the level of compensation in the event of direct award
(1) If the actual costs or actual revenues deviate from the initial costs or revenues, the compensation may be increased only if the terms and conditions of the contract and the manner in which the compensation is increased and the change in costs or revenues could not be foreseen by the carrier at the time the contract was concluded in the light of the known facts.
(2) Save as otherwise provided in the public service contract, the change in compensation due to the reduction of the actual costs from the initial costs or the increase in the actual revenues from the initial revenues always covers half of those derogations.
(3) The client and the carrier may identify in the public service contract one or more parts of the initial costs or the initial revenues affecting the level of compensation to be indexed during the performance of the contract in the manner set out in the contract.
(4) For the duration of the contract commitment, the total annual amount of compensation paid shall not exceed the amount resulting from which the share of net income in operating assets would exceed the maximum allowable rate of return on capital.
Efficacy
This Decree shall take effect on 1 November 2010.
Minister:
JUDr. Barta v. r.
Příloha č. 1
Annex No 1 to Decree No. 296 / 2010 Coll.
Initial financial model (public rail transport)
Příloha č. 2
Annex No 2 to Decree No. 296 / 2010 Coll.
Initial financial model (public regular transport)
Příloha č. 3
Annex No. 3 to Decree No. 296 / 2010 Coll.
Statement of actual costs and revenues (public rail transport)
Příloha č. 4
Annex No. 4 to Decree No. 296 / 2010 Coll.
Statement of actual costs and revenues (public regular transport)
Příloha č. 5
Annex No 5 to Decree No. 296 / 2010 Coll.
Default model of operational assets
Příloha č. 6
Annex No 6 to Decree No. 296 / 2010 Coll.
Reporting of operating assets
1) Regulation (EC) No 1370 / 2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and road and repealing Regulations (EEC) No 1191 / 69 and 1107 / 10.
2) For example, Decree No. 500 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are entities accounting in the double accounting system, as amended.
3) Act No. 586 / 1992 Coll., on Income Tax, as amended.
4) Act No. 563 / 1991 Coll., on Accounting, as amended.
5) Decree No. 175 / 2000 Coll., on the Transport Regulations for public rail and road passenger transport.
6) For example Article 6 (3) (c) and (d) of Decree No 500 / 2002 Coll., as amended by Decree No 472 / 2003 Coll.
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Regulation Information
| Citation | Decree No. 296 / 2010 Coll., on procedures for establishing the financial model and determining the maximum amount of compensation |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 29.10.2010 |
|---|---|
| Effective from | 01.11.2010 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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