Monterey, USA

1
38th Argos Operations Committee Meeting

• Monterey, USA
• June 30th to July 2nd, 2004

Calculation of Argos costs to be attributed to
the JTA
2
Method

• We have developed a 3-step approach using
• our analytical accounting principles,
• Distribution by percentage.

• Our expenses are identified in 4 categories
• salaries and related operating costs,
• external operational costs,
• depreciation of assets,
• financial expenditure.

3
Step N1 identification of costs per family

• Each expense is allocated to a family Argos,
  Space oceanography, Doris, Sarsat, Novacom, Radar
  systems, other.
• Every one allocates his/her time every week to a
  specific family.
• For expenses or working hours that cannot be
  allocated to a family, we use a distribution by
  percentage
• Percentage of income (financial departments
  related costs are allocated to each family pro
  rata each familys contribution to the global
  incomes),
• Percentage of working hours (human resources
  related costs are allocated to each family
  pro-rata each familys contribution to the global
  working effort in man-hour).

4
Summary of 2003 total Argos costs 19 939 168
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Step N2 distribution of Argos costs

• Each expense and every man. hour is allocated to
  an Argos application Science, Fishing, Sensitive
  Use.
• Each expense and every man. hour is categorized
  as basic or value-added.
• For expenses or working hours that cannot be
  directly allocated, we use a distribution per
  percentage
• Pro-rata incomes (2003)
• Science 41.76
• Fishing 34.71
• Sensitive 23.52
• Ratio basic versus total costs for each
  application
• Science 90
• Fisheries 60
• Sensitive 60

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Summary of 2003 total Argos costs per application
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(No Transcript)
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Summary of Argos costs per application per
distribution basic/value-added
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Step 3 Calculation of costs to be attributed to
the JTA

• Argos basic costs to be attributed to Science
• 7472 k in 2003
• Income contributing to offset these costs
• Animal tracking applications outside JTA (1)
• Oceanography applications outside JTA (2)
• Meteorology and Volcanology applications outside
  JTA (3)
• JTA (4)
• In 2003 (1) 411k (2) 949k (3)
  47k (4) should then be 6065 k

2003 costs attributed to JTA should then be
6065k
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Final Assessment Comparison with the two methods
used so far

• The pro-rata method gives the following result
• Argos costs attributed to JTA total Argos
  basic costs x JTA active PTTs/total active PTTs
• In 2003 11091 x 58 6460 k
• This method gives a pretty fair approximation of
  the reality.
• The 5-year plan gives the following
• Argos costs attributed to JTA total Argos
  basic costs capped at the inflation since 2001 x
  JTA active PTTs / total active PTTs capped at
  53.5 in 2003.
• In 2003 9930 x 1.0202 x 53.5 5420 k
• The goal to reduce the JTA loss was perfectly
  achieved through the 5-year plan. The
  differential cost to be attributed to JTA being
  offset by non JTA Argos basic incomes, during
  this period.