Explanatory notes
Demonstração de Resultados
b) Administrative Program
The results of the Administrative Program were negative in R$297,305 thousand (negative in R$428,392 thousand in 2006).
To identify the administrative expenses incurred by the common areas we use Pro rata apportionment criteria based on the expenses of the personnel allocated to each area (Pension Fund and Investment) and percentage of physical space occupied by those activities. When calculating the administrative cost of investment in Benefit Plans, it is applied the percentage of the participation of each Plan's asset in the administrative expenses of the investments.
Applying the pro rata parameters among the programs, the percentage found was of 62.3 % for the administration of investments and of 37.7% for the administration of Pension Plan.
The administrative expenses reached during this fiscal year the amount of R$124,553 thousand (R$133,187 thousand in 2006), equivalent to 12.8 % of the regular pension plan contributions, of which 4.8 % were administrative pension plan expenses and 8 % administrative investments ones.