Unédic : Financial report 2009

FINANCIALREPORT 2009

2010 - Unédic financial report 3

CONTENT

CONSOLIDATED FINANCIAL STATEMENTS 4

CONSOLIDATED BALANCE SHEET 6

CONSOLIDATED PROFIT AND LOSS ACCOUNT 7

CONSOLIDATED CASH FLOW STATEMENT 8

APPENDIX 91. Key events of the financial year 9

2. Accounting principles, rules and methods 12

3. Balance sheet analysis 14

4. Profit and loss account analysis 20

5. Additional information 24

AUDITORS’ REPORT 25

4 2010 - Unédic financial report

ASSETS 2009 2008

Fixed assets 464.0 554.9Intangible fixed assets 14.1 23.3Tangible fixed assets 420.5 4 99.1Long-term investments 29.4 32.5

Current assets 7 832.8 4 742.9Receivables : 4 256.3 4 113.7• Benefit recipients 176.4 166.2• Affiliates 4 079.9 3 947.5Other receivables 295.3 208.8Marketable securities 3 265.2 357.2Cash and cash equivalents 12.7 37.4Prepaid expenses 3.3 25.8

Deferred expenses 4.4 0.5Bond redemption premiums 12.2 0.4

TOTAL ASSETS 8 313.4 5 298.7

LIABILITIES

Net worth - 5 903.4 - 4 737.9Retained earnings - 4 738.0 - 9 712.3Profit / Loss for the year - 1 165.4 4 974.4

Provisions for contingencies and expenses 33.0 43.9Liabilities 14 162.7 9 971.6

Borrowing 8 942.5 5 352.7• Bond issuance 6 266.6 2 260.2• Loans and miscellaneous financing 2 627.2 3 002.5• Bank loans and overdrafts 34.9 78.5• Other debts 13.8 11.5Other Liabilities 5 220.2 4 618.9• Affiliates 102.7 128.0• Benefit recipients 2 345.8 1 943.7• Tax and social security debts 63.2 140.9• Trade payable 15.3 117.5• State debts 0.0 0.0• Other debts 2 693.2 2 288.7

Deferred income 21.1 21.1

TOTAL LIABILITIES 8 313.4 5 298.7

CONSOLIDATED BALANCE SHEET – UNEMPLOYMENT INSURANCE (IN MILLION EUROS)


CONSOLIDATED BALANCE SHEET – UNEMPLOYMENT INSURANCE (IN MILLION EUROS)

CONSOLIDATED PROFIT AND LOSS ACCOUNTS – UNEMPLOYMENT INSURANCE (IN MILLION EUROS)

TECHNICAL MANAGEMENT 2009 2008

Income 30 886.4 30 636.3Contributions 30 562.3 30 339.3Other income 238.7 113.7Reversals of provisions 9.8 33.5Expenses reallocated 75.6 149.8

Expenses 31 884.2 24 342.4Re-employment allowance 23 761.3 19 582.3Other benefits 2 144.2 1 507.5Redeployment benefits 778.0 822.3Validation of retirement points 1 603.5 1 447.3Other expenses 3 345.7 979.9Provisions 251.5 3.1

Technical profit or loss - 997.8 6 293.9

ADMINISTRATIVE MANAGEMENT

Income 121.5 424.4Provision of services 63.6 232.3Other income 57.9 192.1

Expenses 167.9 1 483.1Purchases 0.9 23.4External services 52.0 543.6Taxes and levies 7.9 76.5Wages and social security contributions 27.2 757.7Other expenses 0.0 2.4Depreciation expenses and amortization 79.9 79.9

Administrative management profit or loss - 46.4 - 1 058.7

FINANCIAL MANAGEMENTFinancial income 2.4 13.5Financial expenses 118.0 277.9

Financial profit or loss - 115.6 - 264.4

EXTRAORDINARY TRANSACTIONSTechnical management 0.0 0.0Administrative management - 0.8 3.6

Extraordinary profit or loss - 0.8 3.6

Corporate tax and similar levies - 4.8

NET PROFIT OR LOSS - 1 165.4 4 974.4


CONSOLIDATED CASH FLOW STATEMENT –UNEMPLOYMENT INSURANCE(IN MILLION EUROS)

2009 2008Consolidated net result - 1 165.4 4 974.4

Elimination of transactions with no effect on the cash flow or not linked to the activity: 314.5 - 134.7• Depreciation, Amortisation and provisions 325.8 - 129.0• Capital gains or losses on disposals - 11.2 - 5.7Change in working capital requirement 191.7 - 353.8

Net cash flow linked to the activity - 659.2 4 485.9

Acquisition of tangible and intangible fixed assets - 54.1 - 49.9Disposal of tangible and intangible fixed assets 24.1 8.0Change in long term investments 3.1 - 1.1Change in suppliers of fixed assets - 8.2 - 9.7

Net cash flow linked to investment operations - 35.1 - 52.7

Bond issuance 4 000.0 - 4 000.0Short-term credit lines 0.0 0.0Commercial paper - 375.0 130.0Securitisation 0.0 - 100.0Other transactions - 3.9 - 39.5

Net cash flow linked to financing transactions 3 621.1 - 4 009.5

Change in cash flow (all schemes) 2 926.9 423.7

Net cash flow at the opening of the period 316.1 - 107.6Cash flow (assets): cash and cash equivalents 394.6 25.3Cash flow (liabilities): bank loans and overdrafts - 78.5 - 132.9

Net cash flow at the closing of the period 3 243.0 316.1Cash flow (assets): cash and cash equivalents 3 277.9 394.6Cash flow (liabilities): bank loans and overdrafts - 34.9 - 78.5


1. KEYS EVENTS OF THE FINANCIAL YEAR

1.1 REORGANISATION OF THE PUBLIC EMPLOYMENT SERVICE

1.1.1 START OF THE PÔLE EMPLOI ACTIVITYThe year 2009 has been marked by the start up of the Pôle emploi [job centre] activity, resulting from a merger of the Assédic/Garp and ANPE operational networks. Pôle emploi duties are based on Law No. 2008-126 of 13 Feb-ruary 2008 relating to the re organisation of Public Employ-ment Service and the tripartite State-Unédic-Pôle emploi agreement setting its objectives and specifying the terms and conditions of the financing of its activities by the State and Unédic.

A detailed cash-pooling agreement outlines the calcula-tion and payment principles for the share of funding ensured by Unédic with a statutory contribution of 10% of the amount of contributions based on the latest certified accounts, i.e. 2007, for the amount due in 2009.

The merger also entails the transfer of the activities of the Unemployment insurance allocation service and the col-lection of Assédic/Garp contributions by Pôle emploi, the latter exercising these duties on behalf of Unédic. Pôle emploi implements the provisions of the Unemployment insurance agreement under the following texts:• Unédic-Pôle emploi agreement for the insurance

allocation service;• Unédic-Pôle emploi agreement on the recovery of

contributions due by employers.

Unédic’s annual financial statements have been established based on financial information produced by Pôle emploi and summarised in the summary documents reflecting transactions made on behalf of Unemployment insurance scheme. These summary documents were subjected to an audit opinion by the Pôle emploi statutory auditors.

Another text, the agreement relating to the transfer of the debts and receivables and of the provisions of assets, has enabled Pôle emploi to use the immovable, movable assets and computer applications to carry out its duties. This agreement was applied during the year 2009, including in particular the payment of 50 million Euros in rent for the use of the Unemployment insurance premises.

The tripartite State-Unédic-Pôle emploi agreement provided in 2009 a global financial settlement of the consequences of this merger. This was principally reflected by the coverage of social welfare provisions (retirement benefit, long–term service award (“Médaille du travail”) paid leave, and, holiday allowances and 13th month salary)by the 10% contribution to financing of Pôle emploi, thus without additional costs for Unemployment Insurance scheme.

1.1.2 THE REORGANISATION OF UNEMPLOYMENT INSURANCE SCHEMEThe creation of Pôle emploi resulted in taking over Assédic’s and Garp’s operational activities and transferring their staff, while the Unédic Board of Directors decided on a merger measure of these institutions, which was then carried out by the Boards of Directors of these agencies. The majority of institutions accepted this proposal, with two of them, being subject to special merger rules (Alsace-Moselle local law) and two others (Centre and Aquitaine regions) saw this process completed in January 2010. Moreover, this merger measure has not been approved to date by the Board of Directors of Guyana Assédic, causing the Unédic Board of Directors to declare a withdrawal of approval.

As at 31 December 2009, 25 Assédic and Garp units have merged with Unédic and five other agencies have estab-lished separate financial statements.

The merger process entails the transfer of all of the institutions’ assets, as well as their debts and receivables, to Unédic.


1.2. AGREEMENT OF 19TH FEBRUARY 2009

This agreement entered in force on 1st April 2009 follow-ing agreement by the Ministry of Employment for a period of two years.

The agreement provides for simplified procedures for allocating entitlements:• one day of affiliation allows one day of compensation

(with a minimum duration of affiliation of 4 months, and a maximum term of compensation of 24 months for those under 50 and 36 months for those over 50);

• an unchanged compensation rate at 40.4% of daily ref-erence salary + fixed portion or compensation rate of 57.4% without fixed portion;

• an unchanged contribution rate at 6.4% (employer’s share of 4% and employee’s share of 2.4%). This rate is likely to be reduced under the dual condition of a surplus in technical management and an improvement in the Unédic net debt.

Three types of benefit are also included in the agreement:• partial accumulation of allowances and wages for

recipients in situation of reduced activity;• differential allowances for recipients returning to work

at a lower paid job;• payment in the form of capital allowances for business

purchasers and business creators.

The individualised return to work agreement (CRP) was also signed on the 19th February 2009 and has been improved with compensation increased to 80% of the reference salary and a maximum term of 12 months of compensation instead of 8 months previously.

The Unédic Board of Directors decided in its meeting of 26 June 2009, to increase the reference salary – which serves as the basis for calculating insurance– by 1% as of July 2009.

1.3. FINANCING THE UNEMPLOYMENT INSURANCE SCHEME

1.3.1 2009 FINANCING TRANSACTIONSAt the end of the financial year 2009, the net worth of outstanding financing is 5.595 million Euros, i.e.: • Bond issues: 6.200 million Euros;• Commercial paper: 2.625 million Euros; • Investments: - 3.265 million Euros;• Bank overdrafts: 35 million Euros.Note: therefore the total net debt including amounts owed to Pôle emploi under the 10% scheme and not yet paid (550 million Euros) stands at 6.145 million Euros.

1.3.1.1 BOND ISSUE The outstanding bond debt amounts to 6.2 billion Euros at the close of the financial year 2009.It corresponds to:• the bond issue of 2.2 billion Euros at a rate of 3%,

maturing in February 2010 (borrowing guaranteed by the State - Article 107 of Law No. 2004-1485 of 30 December 2004);

• the bond issue of 4 billion Euros (3 years, 2.125%) issued in December 2009.

1.3.1.2 COMMERCIAL PAPER The use of this financing solution for associations was authorised, under certain conditions, in Article 37 of Law No. 2003-706 of 1st August 2003. The initial amount of 1.200 million Euros in 2004 was gradually increased to reach a ceiling amount of 6.000 million Euros on 31 Decem-ber 2009 authorised by the Board of Directors. These commercial papers are drawn down as required.This commercial paper programme obtained a short-term rating of “A1+” from Standard & Poor’s and “P1” from Moody’s rating agencies since its launching in January 2004. Since July 2009, it has also received a “F1+” rating from Fitch Rating agency.

Initially, at the request of Moody’s rating agency, syndicated and confirmed credit lines have been put in place to ensure 100% coverage of this programme and to mitigate any malfunctioning in the European monetary market.Since July 2009, the agencies’ coverage requirement has been reduced to 50% of the authorised programme.


1.3.1.3 STANDARD BANK FINANCING Very short-term financing requirements are covered in the form of bank overdrafts agreed with Unédic’s banking part-ners on a case by case basis (1.5 billion Euros negotiated).The use of these bank overdrafts at the close of the year 2009 is 35 million Euros for Unédic.

1.3.1.4 INVESTMENTSIn late 2009, surpluses of cash and cash equivalents totalled 3.265 million Euros. They mainly comprised the residual proceeds from the 4 billion Euro bond issuance of 3 Decem-ber. From then until February 2010, redemption date of the 2005 bonds, no commercial paper was issued so as to gradually reduce the volume of investments.It should also be noted that a commitment was made vis-à-vis the rating agencies to constitute investments when the draw downs on the commercial paper programme exceed an outstanding total over 3 billion Euros.It was agreed in return for this commitment that the level of coverage was reduced to 50%.

1.3.2 FINANCING OF THE 2010-2011 PERIODThe 2009 loss is one of the consequences of negative growth rate observed (provisional: -2.50%).The gradual emergence from recession envisaged in the next few years leads the Unemployment insurance scheme to anticipate results which should remain negative in 2010 and 2011. On the basis of growth rate assumptions of +1.40% in 2010 and +1.60% in 2011, the financial posi-tion could thus reach -13.8 billion Euro late 2011.

In 2009, Unédic defined its financing strategy and set out the instruments necessary to address its deteriorating financial position.This strategy hinges around three axes:• obtain a rating allowing it to access capital markets

under optimum cost conditions;• increase the size of its commercial paper programme

enabling it to obtain short-term financing;• implement an EMTN programme to raise the necessary

medium term financing.

The Board of Directors approved this strategy on 26 June 2009.

Thus:• in July 2009, reviews conducted with the agencies have

enabled it to achieve the best possible rating (Standard & Poor’s: AAA; Moody’s: Aaa; Fitch: AAA);

• also in July, the commercial paper programme was increased to 6 billion Euros (compared to 3 billion previously);

• in November 2009, the closure of a 12 billion Euro EMTN programme enabled the launching of a first bond issue programme of 4 billion Euros, maturing in three years.

All of these operations have enabled to cover the require-ments of the year 2009 and to prepare for the repayment of 2.2 billion Euros in February 2010, corresponding to the amortization of the bond issue launched in February 2005.A new bond issue as part of the EMTN programme should be launched in 2010 to cover estimated needs (10.3 billion Euros deficit at the end of 2010).

1.3.3 REGULATION FUND FOR ENSURING STABILITY OF BENEFITS AND CONTRIBUTIONS IN FLUCTUATING ECONOMIC CLIMATE Article 13 of the Protocol of 20 December 2002, included in Article 7 of the Agreement of 1st January 2004 and in Article 6 of the Agreement of 18 January 2006, provides for the creation of a “regulation fund intended to guarantee the stability of benefits and contributions in fluctuating economic climate.” The fund will be financed using the reserves of the Unemployment insurance scheme and could correspond to three months of technical management expenses.On 15 February 2007, the Unédic Board of Directors took the decision to create this fund, and he financing method was determined on 21st June 2007.The change in the financial markets from the second half of 2007 did not allow the implementation of these decisions.


2. ACCOUNTING PRINCIPLES RULES AND METHODS

2.1. GENERAL PRINCIPLES

The Unemployment insurance scheme’s consolidated annual financial statements for the year ended 31 December 2009 drawn up in Euros, including the balance sheet, the profit and loss account and the note, were drawn up in accordance with the Unemployment insurance organisations chart of accounts approved by the National Accounting Council (CNC) dated 9 January 1995 (certificate of compliance no. 79).

They take into account the specific information linked to the declaratory nature of Unemployment insurance and the consequences that arise therefrom, with regard to both the declarations of affiliates and payments to recipients.

The signatory organisations of the agreement of 19 February 2009 on Unemployment insurance pursuant to Article L.351-3-1 of the French Labour Code on the method of financing benefits paid under this scheme, certify that Unemployment Insurance is a specific pay-as-you-go scheme.

2.2. UNEMPLOYMENT BENEFITS

2.2.1. EXPENSES Regulatory provisions stipulate that job seekers register then provide Pôle emploi with evidence of their situation on a monthly basis to avoid their entitlements being called into question. These formalities enable the benefits to be dealt with on a monthly basis under technical manage-ment expenses.Persons exempt from signing-on formalities are also, accounted for exceptionally on a monthly basis.

2.2.2. BENEFIT RECIPIENT DEBTSUnder the item “Benefit Recipient debts” is the amount of benefits considered as owing for the current financial year, according to the principles referred to above, and which are calculated by using the benefits paid in January of the following year.

2.2.3. BENEFIT RECIPIENT RECEIVABLESBenefit recipients’ accounts with a debit balance (overpayments and advances) are provided for based on the age of receivables.

The method for calculating provisions for depreciation of the benefit recipients’ over payments is based on statistical law, that measures the probability of recovering them.Over payments for fraud were the subject of a 100% provision.

2.3. CONTRIBUTIONS OF AFFILIATES

2.3.1. INCOMEThe income from technical management correspond to general and specific contributions that the employers are required to pay for the year according to mandatory periodic declarations that they make to the institutions.

When the forms are not received within the specified time, an estimate of the contributions due is carried out per affiliate.

2.3.2. AFFILIATE RECEIVABLESContributions yet to be received for the year are calculated according to the income recorded between 1 January and 28 February of the following financial year and relating to the financial year elapsed.

A provision is recorded at the end of the year on affiliates’ doubtful debts It is calculated based on the age of the debts, the litigation stage reached and the type of debts (declared or estimated amounts).

2.3.3. CREDITOR AFFILIATESFunds paid by the affiliates and collected by the various regional departments of Pôle emploi and which could not be allocated have remained as balance sheet liabilities.


2.4. OTHER ITEMS

2.4.1. FIXED ASSETSThe intangible and tangible fixed assets are recorded in the accounts according to CRC (Accounting Regulatory Commit-tee) provisions Regulation No. 2002-10 on the amortisation and depreciation of assets and CRC Regulation No. 2004-06 on the definition, accounting and evaluation of assets.

Assets are depreciated using the straight-line method over the following terms:

Software 5 yearsBuildings 10 to 40 yearsFixtures and fittings 10 to 20 yearsIT facilities and equipment 3 to 6 yearsOffice furniture 10 yearsOffice equipment 5 yearsOther 4 to 10 years

2.4.2. EMPLOYEE-RELATED COMMITMENTSGiven the provisions of the National collective labour agreement for Unemployment insurance scheme personnel, Unédic is required to pay retirement benefits calculated in months’ salary per number of years of service.

Furthermore, long-term service awards (médailles du tra-vail) are paid.

Commitments are calculated using the following information:• use of personal information: age, gender, salary, length

of service;• determination of internal actuarial assumptions: staff

turnover rate, retirement age and terms and conditions, wage increase rate;

• use of a discount rate for the commitment corresponding to the Bloomberg reference rate, i.e. 4.81% for the 2009 financial year.

Based on this data, the amount of the commitments is calculated individually for each active employee,it being understood that for the long-term service awards, the commitment must be calculated for the bonuses likely to be paid for the entire period of work, i.e. a maximum of four award levels.

The amounts thus obtained are recorded in the accounts as provisions for contingencies and losses and the change in these provisions is recorded in the profit / loss for the period including the impacts of changes in the assumption.

2.4.3. EXTRAORDINARY PROFIT Extraordinary profit includes:• technical management transactions; • items relating to administrative management, that is to

say the items provided for by the general chart of accounts and, in particular, the capital gains or losses from disposals of tangible and intangible fixed assets.

The capital gains or losses from disposals of long term investments are recorded as financial transactions.

2.5. PRINCIPLES OF CONSOLIDATION OF UNEMPLOYMENT INSURANCE SCHEME ACCOUNTS

Unédic shall “consolidate” all Unemployment insurance institutions’ accounts. Strictly on a legal basis, the “consolidated” accounts correspond to a “combination” of the accounts according to Regulation No. 99-02 of the National Accounting Council. There is no affiliation between the entities included in the scope of consolidation except for the SCIs (Non-trading Real Estate Companies), subsidiaries of Unédic. For the 2009 financial year, this situation only concerns five institutions which did not merge with Unédic as at 31 December 2009.

The scope of consolidation is presented in the supplementary information note.

The main restatements concern:• the financial lease held by SCI Reuilly 1;• the offset of depreciations and reversals by categories

of provisions: contingencies and expenses, affiliates, benefit recipients, administrative management;

• 50% proportionate consolidation of the SI Convergence Emploi EIG;

• elimination of transaction balances for managed third party (AGS) shown in Unédic’s annual financial state-ments, so that only Unemployment insurance transac-tions are presented in the consolidated balance sheet.


3.1. ANALYSIS OF BALANCE SHEET ASSETS

3.1.1. FIXED ASSETS

3.1.1.1. TANGIBLE AND INTANGIBLE FIXED ASSETSThe transactions recorded with regard to the fixed assets and the depreciation and amortisation during the 2009 financial year are as follows:

CHANGES IN GROSS FIXED ASSETS IN 2009

CHANGES IN DEPRECIATION AND AMORTISATION IN 2009

(in millions of Euros) Gross value at the opening of the financial

year (1)

Acquisitionsand

creations

(2)

Disposals and scrapping retirement

(3)

Transfers

(4)

Gross value at the closing of the financial

year (5)=(1)+(2)(3)+(4)

Total intangible fixed assets (A) 142.4 0.1 1.6 140.9

Total tangible fixed assets (B) 1 288.1 4.7 57.2 1 235.6

Property: land, buildings and fittings 904.4 7.5 17.6 1.1 895.4

Other tangible fixed assets 379.0 0.4 39.6 339.8

Tangible fixed assets in progress 4.7 - 3.2 0.0 - 1.1 0.4

TOTAL (A + B) 1 430.5 4.8 58.8 0.0 1 376.5

3. BALANCE SHEET ANALYSIS

3.1.1.2. LONG TERM INVESTMENTSThis item, for the sum of 29.4 million Euros, mainly includes loans for their original amount for the building assistance programme of 29 million Euros and the deposits and collateral paid amounting to 0.4 million Euros.

(in millions of Euros) Depreciation andamortisation at the opening of

the financial year (1)

Increases: Provisions

(2)

Reductions: Disposals and

scrapping retirement

(3)

Transfers

(4)

Gross value at the closing of the financial

year (5)=(1)+(2)(3)+(4)

Total intangible fixed assets (A) 119.2 7.8 0.1 126.9

Total tangible fixed assets (B) 789.0 70.6 44.5 0.0 815.1

Property: buildings and fittings

485.9 47.6 14.0 0.0 519.5

Other tangible fixed assets 303.1 23.0 30.5 0.0 295.6

TOTAL (A + B) 908.2 78.4 44.6 0.0 942.0


3.1.2. CURRENT ASSETS

3.1.2.1. RECEIVABLES

a) Benefit recipient debtorsThe gross value of this item is up by 3.00% on the previous financial year: 388.1 million Euros versus 376.4 million Euros. Some 95.65% of it is made up of Unemployment insurance over payments to benefit recipients, i.e. 371.2 million Euros. Transactions relating to Unemployment insurance over payments are as follows:

(in millions of Euros) 2009 2008 Change 2009/2008

Over payments and advance payments on account

at the opening of the financial year (A) 376.4 377.4 - 0.3 %

Detection of over payments during the financial year (B) 746.2 586.8 34.1 %

Reimbursement and recoveries of over payments (C) 715.0 561.2 27.4 %

Write-offs and losses on over payments (D) 20.3 38.7 55.6 %

Advances and payments on account paid (E) 12.3

Recovered advances and payments on account at end of financial 2008 (F) 11.5

Recovered advances and payments on account at end of financial 2008 (F1) 12.1

Benefit recipient debtors at the end of the financial year

(including advances and payments on account)

(G) = (A)+(B)-(C)-(D)+(E)-(F)+(F1) 388.1 376.4 + 3.1 %

Provision recognised for bad debts (H) (211.7) (210.3) 1.1 %

Provisioning rate (H) / (G) 54.5 % 55.9 % - 1.4 pts

Net book value (I) = (G)-(H) 176.4 166.1 6.2 %

The risk of not recovering over payments is covered by a provision equal to 54.5% of the debt compared with a rate of 55.9% for the 2008 financial year.

b) AffiliatesOutstanding gross contributions i.e. 5,063.4 million Euros, is up by 0.8% compared with the previous financial year. It is broken down into:• main contributions: 4,492.3 million Euros or 88.7% of the total,• special contributions: 378.3 million Euros or 7.5% of the total,• ancillary contributions: 192.8 million Euros or 3.8% of the total.

(in millions of Euros) 2009 2008 Change 2009/2008Uncontested receivables to be received from 1st January and 28th February N+1 (A) 3 711.3 3 596.2 3.2 %

Doubtful receivables (B) 1 352.1 1 089.2 24.1 %

Gross value (C) = (A)+ (B) 5 063.4 4 685.4 8.1 %

Provision recognised for doubtful debts (D) (983.5) (738.0) 33.3 %

Provisioning rate (D) / (B) 72.7 % 67.8 % 4.9 pts

Net book value (E) = (C)- (D) 4 079.9 3 947.5 3.3 %


The provision recognised to cover the risk of not recover-ing bad debts, which represents 72.7% of the disputed contributions to be received or an increase of 4.9 points compared with the 2008 financial year. This change is explained, in particular, by greater number of cases ending in the recovery stage or bankruptcy, for which the rate of provisioning is considerable. This applies equally to cases in situations of formal warning notice. More generally, the increase in provisioning results from the deterioration of the economic situation and the con-tribution recovery rate.

3.1.2.2. STATEThis item, for the sum of 53.7 million Euros, represents an amount due by the State for arrangements managed on behalf of the State and not transferred to Pôle emploi.

3.1.2.3. OTHER DEBTSThis item, for the sum of 241.1 million Euros, predomi-nantly comprises:• an income to be received under the Franco-Swiss agree-

ment for 21.3 million Euros;• the AGS current account representing the balance of

2009 financial transactions of 87,6 million Euros;• an income to be received from the State as part of the

CA (Contract for the future) - CAE (Employment Support Contract) arrangement balance for 16.1 million Euros;

• a claim against institutions under management agree-ments amounting to 15.3 million Euros;

• a claim against disposals of fixed assets for 5.7 million Euros;• an 87.1 million Euro claim against Pôle emploi relating

to current transactions of benefit recipient domains and other agreements.

3.1.2.4. MARKETABLE SECURITIESThis item, for the sum of 3,265.2 million Euros, corresponds to monetary SICAVS, which allowed to cover repayment of the 2,200 million Euros in bonds maturing in February 2010.

3.1.3. DEFERRED EXPENSESThis item for the sum of 4.4 million Euros concerns the costs of bond issues which are spread over the life of the loan on a straight line basis, i.e. three years for the Decem-ber 2009 issue and five years for the February 2005 issue.

3.1.4. REDEMPTION PREMIUMSThe bond issued by Unédic includes an issue premium, corresponding to the difference between the nominal value of the bonds and the issue value, for the sum of 12.5 mil-lion Euros for the 4 billion Euro bond issued in 2009.

This premium is amortised over the life of the issue, i.e. three years, and represents a net value of 12.2 million Euros as at 31 December 2009.

3.2. ANALYSIS OF BALANCE SHEET LIABILITIES

3.2.1. NET WORTHThe net worth, at the end of the 2009 financial year, is negative by 5,903.4 million Euros and breaks down as follows:• net worth as at 31 December 2008: -4,738.0 million Euros;• negative result for the 2009 financial year: -1,165.4 mil-

lion Euros;• net worth as at 31 December 2009: -5,903.4 million Euros.


3.2.2. PROVISIONS FOR CONTINGENCIES AND EXPENSESThis item for a total amount of 33.0 million Euros pre-dominantly comprises the following provisions:• Unédic’’s contribution to the financing of AS-FNE (spe-

cial benefit from the national employment fund) for 22.6 million Euros;

• the rights acquired up to their retirement by the recipients of ARPE (job substitution allowance) for 0.5 million Euros (i.e. a reduction of 0.4 million Euros compared with 2008); this provision covers the costs of benefits yet to be paid and the financing of additional pension benefits;

• provisions for employee-related commitments: • provisions for retirement indemnities (IDR) for the sum of

4.9 million Euros • provisions for long-term service bonuses for 1.1 mil-

lion Euros.

The change in provisions for contingencies and expenses during the 2009 financial year is presented in the table below.

(in millions of Euros) Opening Provision Write- Closing balance back balance provision used

ARPE 0.9 -- 0.4 0.5

AS-FNE 33.9 -- 11.3 22.6

IDR 4.2 0.7 -- 4.9

Long-term service bonuses 1.0 0.1 -- 1.1

Other 3.9 -- -- 3.9

Total 43.9 0.8 11.7 33.0

3.2.3. BORROWINGSThe change in financing during the year 2009 is as follows:

Financing Opening Of which Additional Financing Closing Of which balance accrued financing repayment balance accrued interest interest

Bond issues 2 260 60 4 000 6 267 67

Bank loans / financings 3 002 375 2 627

of which Commercial papers 3 000 375 2 625

of which other loans 2 2

Current bank loans 78 35

TOTAL 5 340 60 4 000 375 8 929 67

Amounts in millions of Euros


3.2.3.1. BOND ISSUES The bond debt increased to 6,267 million Euros at the end of the 2009 financial year. It corresponds to:• the 2.2 billion Euro loan at a 3% rate due February 2010

(borrowing guaranteed by the State – Article 107 of the Law No. 2004-1485 of 30 December 2004);

• the 4 billion Euro loan (three years, 2.125%) issued in December 2009;

• the accrued interest on the 2.2 billion Euro loan, i.e. 60.1 million Euros.

• the accrued interest on the 4 billion Euro loan, i.e. 6.5 million Euros.

3.2.3.2. BANK LOANS AND MISCELLANEOUS FINANCINGThe total amount of this item comes to 2,672.2 million Euros. It comprises:• the commercial paper issued by Unédic amounting to

2,625 million Euros;• the finance leasing debt corresponding to the financing

of the IT production centre for 2.2 million Euros.

The due dates of the commercial paper are as follows:

During the During the TOTAL 1st quarter 2010 2nd quarter 2010

1 990 635 2 625

Amounts in millions of Euros

3.2.3.3. CURRENT BANK LOANSThe total amount of this item comes to 34.9 million Euros and comprises:• the accounting balances of bank and postal accounts

creditors for 34.8 million Euros;• the accrued interest on bank overdrafts used for 0.1 mil-

lion Euros.

The current bank loans correspond to the negative cash flow presented in the cash flow statement.

3.2.4. OTHER LIABILITIES

3.2.4.1. AFFILIATE DEBTSThis item, amounting to 102.7 million Euros, corresponds to the sums received from employers and that could not be assigned to debts at the end of the financial year.

3.2.4.2. BENEFIT RECIPIENT DEBTS AND RELATED ACCOUNTSThis item, for a total amount of 2,345.8 million Euros cor-responds, essentially, to the benefits to be paid: benefits from the month of December 2009 paid at the start of 2010, i.e. 2,391.0 million Euros and 52.8 million Euros for the redeployment benefits to be paid to benefit recipients minus the advance retirement levy for the sum of 98 million Euros.

3.2.4.3. TAX AND SOCIAL DEBTSThis item for a total of 63.1 million Euros comprises:• provision for paid leave and holiday and 13th month

bonuses amounting to 3.1 million Euros instead of 4.2 mil-lion Euros in 2008;

• the benefit recipient deductions outstanding, i.e. 46.6 mil-lion Euros corresponding to benefits paid in December 2009;

• other tax and social debts for 13.4 million Euros. 3.2.4.4. TRADE PAYABLEThe sum of 15.3 million Euros, representing the invoices yet to be paid as at 31 December 2009, is divided into two sections:• suppliers of goods and services: 13.0 million Euros;• suppliers of fixed assets: 2.3 million Euros.


3.2.4.5. OTHER LIABILITIES The main items of this section, the total amount of which comes to 2,693.2 million Euros, concern:• the various creditors for 770.1 million Euros essentially

consist of a bank debt of 769.6 million Euros. This debt results from the sale in 2007 of a State debt to a bank that Unédic undertook to pay on maturity, i.e. 3 January 2011;

• the cost to be paid as at 31 December 2009 to various pension funds, for the validation of the benefit recipi-ents’ additional pension points:• 416.5 million Euros due to ARRCO (Association of sup-

plementary pension plans for salaried employees) • 887.1 million Euros due to AGIRC (General Associa-

tion of Pension Institutions for Managerial Staff) which is primarily broken down into:

- 660.6 million Euros corresponding to Unédic’s com-mitment to AGIRC, as provided for in the agreement of 19 December 1996 which had valued the amount of supplementary retirement contributions for the periods of unemployment prior to this date and set a 20 year payment schedule at the rate of 1/20th each year, with the debt amount being re-assessed each year by applying the price index;

- 226.5 million Euros corresponding to contributions yet to be paid for 2009;

• 49.9 million Euros due primarily to IRCANTEC (Supplementary Retirement Pensions Institution for Non-Certified State Employees and Employees of Public Administrations);

• the Pôle emploi current account for 550.5 million Euros.

3.2.5. PREPAYMENTS AND DEFERRED INCOMEDeferred income, i.e. 21.1 million Euros, essentially concerns payments made by public companies and public establishments which are not affiliated to the Unemployment insurance scheme, but which have signed a management agreement with Unédic.

Payments are made for benefit recipients registered as unemployed and whose acquired rights may be spread over several financial years according to their age.


4. PROFIT AND LOSS ACCOUNT ANALYSIS

4.1. TECHNICAL MANAGEMENT

4.1.1. PROCEEDS

4.1.1.1. CONTRIBUTIONSThe proceeds from contributions for the 2009 financial year are up slightly by 0.7% compared with 2008:

in millions of Euros 2009 2008 2009/2008

Main contributions 29 916.4 29 997.7 - 0.3 %

Special contributions 645.9 341.6 89.1 %

TOTAL 30 562.3 30 339.3 0.7 %

The main contributions decreased of 0.3% compared to the year 2008. Macroeconomic data with a direct impact on payroll adopted a reverse trend with an average salary increase of 1.9% and a reduction in staff of the same percentage.Special contributions have seen a major increase of 89.1%, as a result of changes made to the CRP (Personal rede-ployment agreement) scheme.

4.1.1.2. OTHER PROCEEDSThis item for the sum of 238.6 million Euros predominantly comprises proceeds pursuant to management agreements, i.e. 50.7 million Euros, in addition to overcharges for arrears and penalties for 158.1 million Euros.

4.1.1.3. NET REVERSALS OF PROVISIONSIn accordance with the accounting principles of the Unem-ployment insurance scheme, the net amounts of charges to and reversal of provisions and liabilities and expenses, and for depreciation of claims on benefit recipients and affiliates are presented for their net amount, i.e. a total of 9.8 million Euros, representing the difference between:• a reduction in provisions relating to:

• a change in the participation of Unédic to current financing of AS-FNE resulting in a reversal of 11.3 mil-lion Euros;

• a reversal of 0.4 million Euros to reflect a decrease in recipients’ acquired rights until their retirement by ARPE;

• and an increase of the provision for 2.2 million Euros relating to disputes on payment of allocations.

4.1.1.4. REALLOCATED EXPENSESThis item for the sum of 75.6 million Euros predominantly comprises:• reimbursements of insurance by the affiliates amount-

ing to 14.8 million Euros;• the full reimbursement of insurance paid to the EJEN

(National Youth Employment Programme) for the sum of 12.6 million Euros;

• the reimbursement of insurance within the framework of the Franco-Swiss agreement for 47.7 million Euros. It should be noted that this agreement will end on 31 May 2009 and will be replaced as of May 2010 by a new arrangement for the reimbursement of insurance between European community countries.

4.1.2. EXPENSESTechnical management expenses total rose by 31% in 2009 as a result of the deterioration in the economic outlook, resulting in a significant increase in benefits expenditure and the contribution of 10% due to Pôle emploi to fund its operations and duties This expense represents an amount of 2.936 billion Euros in 2009. For informational purposes, it has substituted 2008 administrative management expenses of approximately 1.3 billion Euros and the financing of aid and reclassification actions, for approximately 0.8 billion Euros, which are now borne by Pôle emploi.

4.1.2.1. ALLOWANCES

(in millions of Euros) 2009 2008 2009/2008

Unemployment benefit (ARE) 23 761.3 19 582.4 21.3 %Other allowances 2 144.2 1 507.5 42.2 %Training 948.0 937.3 1.1 %Benefit for older unemployed persons (ACA) 47.8 103.1 - 53.6 %Specific redeployment benefit (ASR) 1 126.2 450.1 150.2 %Other 22.2 17.0 30.6 %

TOTAL 25 905.5 21 089.9 22.8 %


• the ARE, for 2009, sees its expenditures increase by 21.3%, with a 0.7% increase in the average daily ben-efit amount and a 19.5% increase in the number of days for which benefits are paid;

• the expenses relating to ARE Training increased by 1.1% with the number of days for which benefits are paid decreasing 0.7% and an average daily compensation increasing 2.4%;

• the average daily ACA benefit amount dropped by 3.3% and the number of days for which benefits are paid was down by 52.2%, which results in a 53.6% decrease in expenditure;

• the ASR ((Specific redeployment benefit for CRP (per-sonalised redeployment agreement) recipients) increased by 150.2% due to a 131.1% increase in the number of days for which benefits are paid and an increase of 7.7% in the average rate of indemnification.

4.1.2.2. RETRAINING ALLOWANCESIt is to be noted that public aid to employers in 2009 falls within the Pôle emploi’s scope of intervention. It is the same for certain expenses in favour of the recipients, including funds available for training.Retraining allowances amounted to 778.0 million Euros in 2009, compared to 822.2 million Euros in 2008 and are broken down in the following manner:

• the ARCE (Company takeover and creation benefit) represents the main benefit amounting to 689.3 million Euros i.e. 88.6% of all benefits. Its amount rose by 19.6% in 2009.

4.1.2.3. VALIDATION OF PENSION POINTSThis item corresponds to the cost of validating benefit recipients’ supplementary pension points for the sum of 1,603.5 million Euros in 2009 compared with 1,447.3 million Euros in 2008. This increase is explained by the regularisation of previous financial years and a change in the expenses allowances.

The breakdown by pension scheme is shown in the table below:

(in millions of Euros) TOTAL

ARRCO 1 851.8

AGIRC 731.5

Other funds (IRCANTEC - CRPNPAC) 80.9

Total pension funds 2 664.2

Contribution of benefit recipients - 1 060.7

Validation of pension points 1 603.5

in millions of Euros 2009 2008 2009/2008

AFPE -Pre –employment training 0.0 28.0 - 100.0 %

ADE – Decreasing aid to employer 0.0 55.3 - 100.0 %

AFE - Flat-rate aid to employer 0.0 2.3 - 100.0 %

Aid to employers 0.0 85.6 - 100.0 %

AMG – Geographic mobility aid 0.0 16.4 - 100.0 %

VAE – Validation of prior experiences 0.0 2.2 - 100.0 %

Certified training 0.0 6.1 - 100.0 %

Accredited training 0.0 69.2 - 100.0 %

ASCRE – Supplementary specific unemployment benefit 0.7 1.1 - 36.4 %

ADR – Differential redeployment benefit 33.8 30.3 11.6 %

ARCE – Company takeover/creation benefit 689.3 576.4 19.6 %

IDR – CRP differential redeployment indemnity 6.7 3.4 97.1 %

Other benefits 47.5 31.5 50.8 %

Aid to recipients 778.0 736.6 5.6 %

Total redeployment benefits 778.0 822.2 - 5.4 %


4.1.2.4. OTHER TECHNICAL MANAGEMENT EXPENSESThis item, for the sum of 3,345.7 million Euros, is up sig-nificantly with the 10% contribution due by Unédic to Pôle emploi, which amounts to 2,936.8 million Euros.

The other main expenses comprise:• the debt write-offs and waiver of affiliate debts for

218.2 million Euros;• the debt write-offs and waiver of benefit recipient debts

for 20.3 million Euros;• the assumption of responsibility by Unédic of its con-

tribution to the FNE (National Employment Fund) agree-ments for 25.7 million Euros;

• Unédic’s contribution to the CRP (Personalised rede-ployment agreement) balance sheet costs for 89.1 mil-lion Euros;

• Unédic’s contribution to the financing of reduced activ-ity (APLD) for the sum of 42.7 million Euros.

4.1.2.5. PROVISIONS In accordance with the accounting principles of the Unem-ployment insurance scheme, provisions and reversals of provisions for depreciation of debts and for contingencies and expenses are presented for their net amount.

The provision for depreciation of claims on affiliates amounts to 250.1 million Euros.

The provision for depreciation of over payments to benefit recipients is 1.4 million Euros.

4.2. ADMINISTRATIVE MANAGEMENT

4.2.1. PROCEEDS

4.2.1.1. PROVISION OF SERVICES This item, amounting to 63.3 million Euros, is essentially made up of proceeds received from third parties and from the State within the framework of management agreements:(in millions of Euros) 2009 2008

State (Solidarity Funds) 0.0 83.5

State (Employment Delegation) 0.0 20.9

AGS 39.3 38.4

ANPE - Pôle emploi 5.5 9.5

Other agreements with third parties 18.5 79.9

Other provisions of services 0.3 0.1

TOTAL 63.6 232.3

4.2.1.2. OTHER PROCEEDS This item, for a total amount of 57.9 million Euros, mainly represents:• the rent paid by Pôle emploi within the framework of

the availability of the Unemployment insurance scheme’s real estate assets for 50 million Euros;

• the reversals of provisions for the sum of 2.2 million Euros set aside in 2008 by Assédic/Garp and the Unédic information technology centre.

• the reallocated expenses : 4.7 million Euros.

4.2.2. EXPENSESAll expense items reported a large decrease in 2009 fol-lowing the transfer of Assédic, GARP and Unédic activi-ties to Pôle emploi. Only depreciation and amortisation remains at the same level of expenses as in 2008, pend-ing the implementation of real estate sales operations, including Pôle emploi.

4.2.2.1. PURCHASESThis item represents 0.5% of administrative management expenses, amounting to 0.9 million Euros compared to 23.3 million Euros for the year 2008.


4.2.2.2. EXTERNAL SERVICES This item represents 31% of administrative management expenses.(in millions of Euros) 2009 2008

Works and services provided by third parties 10.2 166.5

Other external services 8.1 130.8

Rents 2.4 71.0

Transportation and travel 2.2 38.6

Postal and telecommunications costs 0.9 73.4

Notary fees and costs 20.7 59.0

Bank and postal costs 7.5 4.3

TOTAL 52.0 543.6

4.2.2.3. TAXES AND LEVIESThis item represents 4.7% of administrative management expenses and is broken down as follows:(in millions of Euros) 2009 2008

Taxes on earnings 2.1 59.9

Other taxes and levies 5.8 16.6

TOTAL 7.9 76.5

4.2.2.4. WAGES AND SOCIAL SECURITY COSTSThis item represents 16.2% of administrative management expenses. It is broken down into:(in millions of Euros) 2009 2008

Wages 18.3 516.2

Social security costs 8.9 241.5

TOTAL 27.2 757.7

4.2.2.5. OTHER EXPENSES Debt write-offs on litigation costs incumbent on affiliates, which represented an expense of 2.4 million Euros in 2008, now fall under the management of Pôle emploi.

4.2.2.6. DEPRECIATIONS AMORTISATION AND PROVISIONS This item represents 47,6% of administrative management expenses, or the sum of 79.9 million Euros, compared with 79.4 million Euros in 2008.

4.3. FINANCIAL MANAGEMENT

The financial result is negative:• - 264.4 million Euros in 2008;• - 115.6 million Euros in 2009.

The 2009 expenses come to 118 million Euros and cor-respond essentially to:• structured financing expenses for 114.8 million Euros, i.e.:

• 72.4 million Euros for bond issues • 42.4 million Euros in interest on the commercial paper

programme • expenses relating to authorised bank overdrafts for

2,4 million Euros;• amortisation of bond issue redemption premiums for

0.7 million Euros.

The average financing rate for 2009 came to 2.047%.

4.4. EXTRAORDINARY PROFIT OR LOSS

The negative result from extraordinary transactions comes to -0.8 million Euros and is broken down as follows:• capital gains of 11.2 million Euros for fixed assets

disposals;• reduction in income from Pôle emploi related to the

“PPAE Monitoring” service for 4 million Euros;• miscellaneous expenses for the sum of 8 million Euros.

4.5. FINANCIAL YEAR PROFIT OR LOSS

This item represents the net profit or loss for the 2009 financial year for the Unemployment insurance scheme.

The result is negative by 1,165.4 million Euros.


5. ADDITIONAL INFORMATION

5.1. FINANCIAL COMMITMENTS LINKED TO TECHNICAL MANAGEMENT

The method of management by distribution implies that certain technical provisions which might be set aside within the framework of an insurance or welfare activity are not set aside within the specific framework of the Unemployment insurance scheme. However, they constitute financial com-mitments at the end of the financial year that only the break-even point of the Unemployment insurance scheme or a change in regulation might call into question in the future.With a view to ensuring better information for third par-ties, we present to you below the financial commitments we consider to be the most important.

5.1.1. ESTIMATE OF THE BENEFITS YET TO BE PAID BY THE UNEMPLOYMENT INSURANCE SCHEME TO THE BENEFIT RECIPIENTS RECEIVING BENEFITS AT THE END OF THE FINANCIAL YEARThe outstanding sum of benefits to be paid over the average duration of unemployment as of 31 December 2009 to benefit recipients registered on this date was assessed by Unédic’s depart-ment of studies and analyses at 22.6 billion Euros. This amount does not take into account the benefits to be paid to recipients of an indemnification maintenance until their retirement.

5.1.2. ESTIMATE OF THE BENEFITS YET TO BE PAID BY THE UNEMPLOYMENT INSURANCE SCHEME TO BENEFIT RECIPIENTS RECEIVING AN INDEMNIFICATION MAINTENANCEThese benefits concern the job seeker benefit recipients who may, under certain conditions, collect their indem-nities up to retirement age.The sum of outstanding benefits to these benefit recipients reg-istered at the end of the financial year was assessed by Unédic’s department for studies and analyses at 0.7 billion Euros.

5.2. INDIVIDUAL RIGHT TO TRAINING

The vocational training agreement, signed on 6 October 2005, implements, by adapting them to the context of

Unemployment insurance, the provisions of Law No. 2004-391 of 4 May 2004 and the national multi-sector agreement of 5 December 2003.The provisions of the agreement stipulate that from 1 January 2004, employees of the Unemployment insurance scheme acquire individual rights to training, capped at 21 hours per annum and per employee. This entitlement, cumulated over 6 years, therefore amounts to a maximum of 126 hours per employee as at 31 December 2009.When the accounts are drawn up, the acquired rights are calculated by using the personal data of the Unemployment insurance employees. As at 31 December 2009, the accumulation of acquired rights comes to almost 31,170 hours.

5.3. NUMBER OF UNEMPLOYMENT INSURANCE STAFF

The number of Unédic staff as at 31 December 2008 is 356 Unédic employees, of which 240 are allocated to the Unédic/AGS Delegation.

5.4. SCOPE OF CONSOLIDATION

The scope of consolidation includes:• Unédic, including equally 24 Assédic and Garp, which

is the object of a merger procedure with Unédic;• five unmerged Assédic agencies;• SCI Reuilly 1, a Unédic subsidiary which holds the

finance lease for the construction of the Montpellier IT production centre;

• SCI Reuilly 2, a Unédic subsidiary, created for asset purposes within the framework of the reform of the Public employment service;

• the SI convergence emploi EIG created in March 2007 by ANPE and Unédic within the framework of imple-menting a common IT system, and in the process of being dissolved.

No. INSTITUTIONS No. INSTITUTIONS

01 Aquitaine 17 Alsace35 Centre Region 63 Lorraine69 Guyane Unédic SCI Reuilly 2 SCI Reuilly 1 SI Convergence Emploi EIG


AUDITORS’ REPORT

In fulfilment of the assignment entrusted to us by your Board of Directors, we hereby report to you, for the year ended 31 December 2009, on:• the audit of the accompanying so-called consolidated

accounts of the Unemployment insurance scheme man-aged by Unédic, as they have attached to this report;

• the justification of our assessments;• the audits and specific informa¬tion required by law.The consolidated accounts have been drawn-up by the Managing Director of Unédic. Our role is to express an opinion on these accounts based on our audit.

1 - OPINION ON THE CONSOLIDATED ACCOUNTS

We conducted our audit in accordance with professional standards applicable in France. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the consolidated accounts are free of material misstatement. An audit includes examin-ing, on a test basis or by means of other methods of selec-tion, evidence supporting the amounts and information in the consolidated accounts.An audit also includes assessing the accounting principles used and significant estimates made, as well as evaluating the overall presentation of the accounts. We believe that the information that we have collected is sufficient and relevant on which to base our opinion.We certify that, in accordance with French accounting rules and principles, the consolidated accounts of the financial year give a true and fair view of the assets, the financial position, and the income of the whole made up

of the Unemployment insurance institutions and the other entities included in the combination of accounts (“the consolidation”).Although not to undermine the opinion expressed above, we draw your attention to the points referred to in the appendix relating to: • the measures taken in order to finance the Unemploy-

ment insurance scheme given the return to the economic trend recorded in 2008 and its impact on the technical equilibrium forecasts (see note 1.3.2. “Financing of the 2010-2011 period”);

• the effect of Law No. 2008-126 of 13 February 2008 on the reform of the Public Employment Service organisation on the accounts as at 31st December 2009 (see note 1.1 “Reor-ganisation of the Public Employment”) and its consequences in terms of comparability (see note 4.1.2 “Expenses”).

2 - JUSTIFICATION OF THE ASSESSMENTS

The consolidated accounts statements were approved at a time of financial crisis, which was accompanied by a slowdown in economic activity, a difficulty in accessing financing and a lack of visibility on the future. These ele-ments have been taken into consideration by your asso-ciation for assessing the appropriateness of the continuity of operation agreement selected for the establishment of accounts and to perform the required accounting esti-mates by applying the accounting policies required under accounting principles as at 31st December 2009. It is in this context that, in accordance with the provisions of Article L.823-9 of the Commercial Code, we made our own assessments that we bring to your attention.

• The note in the annex setting out the principles, rules and accounting methods states that the Unemployment insurance scheme is a specific scheme by distribution, and that the accounts have been drawn-up in accord-ance with the charts of accounts of the Unemployment insurance organisations approved by the National Accounting Council. For the establishment of the con-solidated accounts, the specificities that stem from the declarative nature of Unemployment insurance and the consequences arising therefore both as regards the statements of affiliates declarations and payments to recipients, have been taken into consideration.


Paris and Neuilly, the 28th June 2010

The Auditors

FCN

Michel DORAY Serge FLOCH

Deloitte & Associés

Anne BLANCHE Vincent BLESTEL

Furthermore, the financial year’s consolidated accounts were drawn up with a view to continued Unemployment Insurance activities, given the structuring hypothesis referred to in note 1.3.2 of the “Financing of the 2010-2011 period” appendix which sets out its ability to have access to the necessary financing. As part of our assessment of the accounting rules and principles used, we verified the appropriate nature of the accounting methods specified above and the infor-mation provided in the notes of the appendix and we have ensured that they have been properly applied.

• Note 1.1.1 of the appendix specifies that Unédic accounts were established based on financial information pre-pared by Pôle emploi regarding the operations performed by this entity on behalf of the Unemployment insurance scheme. These elements have been the subject of an audit opinion by the Statutory Auditors of Pôle emploi.

• We have been appraised of the “Auditors’ Report on Pôle emploi accounting statements linked to the management on behalf of Unédic of contributions from affiliates and payments to benefit recipients”, drawn up on 4 June 2010, and which gives a favourable opinion.

• We ensured the correct transcription of these account-ing statements in the Unemployment insurance scheme’s accounts.

• We were aware of the work carried out by the Pôle emploi Statutory Auditors and we supplemented it with specific requests concerning both the internal audit and the audit of the accounts. Our work consisted in examining the relevance and sufficient nature of the information obtained.

The assessments were made in the context of our audit of the consolidated accounts, taken as a whole, and therefore contributed to the forming of our opinion expressed in the first part of this report.

3 - SPECIFIC AUDITS AND INFORMATION

We have also performed the specific audits required by law of the information given in the management report, in accordance with professional standards applicable in France.

We have no comments to report regarding their fair presentation and conformity with the consolidated accounts.

Unédic- 80 rue de Reuilly - 75012 Paris - Tel. : +33 (0)1.53.17.20.00 - Fax : +33 (0)1.53.17.21.11 www.unedic.org U

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Unédic : Financial report 2009

Economy & Finance

Transcript of Unédic : Financial report 2009