View
1
Download
0
Category
Preview:
Citation preview
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements
for the year ended 31 December 2019
1
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
General Information
Country of incorporation and domicile South Africa
Nature of business and principal activities The company is engaged in the promotion and
advocacy for fundamental human rights with respect
to the environment.
Directors Ketty Olive Lubandi (Board Chair)
Charles Paul Iheanacho Abani
Joanna Kerr
Registered Office Ground Floor
293 Kent Avenue
Randburg
Johannesburg 2194
Postal Address Postnet Suite 125
Private Bag X09
Melville
Johannesburg 2109
Bankers Standard Bank of South Africa
ECO Bank
Mercantile Bank
Auditors Bonani Chartered Accountants
Secretary
Company Registration number 2008/004583/08
Level of assurance These financial statements have been audited in
compliance with the applicable requirements of the
Companies Act of South Africa.
Preparer Gert Cornelius I. Combrink CA(SA)
Wilfred Andile Present
2
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Index
Page
Directors' Responsibilities and Approval 4 - 5
Directors' Report 6 - 7
Independent Auditors' Report 8- 9
Statement of Financial Position 10
Statement of Comprehensive Income 11
Statement of Changes in Accumulated Funds and Reserves 12
Statement of Cash Flows 13
Accounting Policies 14 - 22
Notes to the Financial Statements 23 - 30
Detailed Statement of Comprehensive Income 31
The reports and statements set out below compromise the financial statements presented to the head
office:
3
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Directors' Responsibilities and Approval
The directors are required in terms of the Companies Act of South Africa to maintain adequate accounting
records and are responsible for the content and integrity of the financial statements and related financial
information included in this report. It is their responsibility to ensure that the financial statements fairly
present the state of affairs of the company as at the end of the financial year and the results of its
operations and cash flows for the period then ended, in conformity with International Financial Reporting
Standards. The external auditors are engaged to express an independent opinion on the financial
statements.
The financial statements are prepared in accordance with International Financial Reporting Standards and
are based upon appropriate accounting policies consistently applied and supported by reasonable and
prudent judgements and estimated.
The directors acknowledge that they are ultimately responsible for the system of internal financial control
established by the company and place considerable importance on maintaining a strong control
environment. To enable the directors to meet these responsibilities, the directors set standards for internal
control aimed at reducing the risk of errors or loss in a cost effective manner. The standards include the
proper delegation of responsibilities within a clearly defined framework, effective accounting procedures
and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored
throughout the company and all employees are required to maintain the highest ethical standards in
ensuring the company's business is conducted in a manner that in all reasonable circumstances is above
reproach. The focus on risk management in the company is on identifying, assessing, managing and
monitoring all known forms of risk across the company. While operating risk cannot be fully eliminated, the
company endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and
ethical behaviour are applied and managed within predetermined procedures and constraints.
The code of corporate practices and conduct has been integrated into company strategies and operations.
The directors are of the opinion, based on the information and explanations given by management, that the
system of internal control provides reasonable assurance that the financial records may be relied on for the
preparation of the financial systems. However, any system of internal financial control can provide only
reasonable, and not absolute, assurance against material misstatement or loss.
The external auditors are responsible for independently auditing and reporting on the company's financial
statements. The financial statements have been examined by the company's external auditors and their
report is presented on page 9 and 10.
4
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Directors' Report
The directors submit their report for the year ended 31 December 2019.
1 Review of Activities
Main business and operations
Registered Office Ground Floor
293 Kent Avenue
Randburg
Johannesburg 2194
Postal Address Postnet Suite 125
Private Bag X09
Melville
Johannesburg 2109
2 Going Concern
3 Events of the reporting period
The company is engaged in the promotion and advocacy for fundamental human rights with respect to
the environment, with particular concern for conservation, rehabilitation and protection of the natural
environment and the rights to secure an environment that is not harmful to people's health and well-
being and to undertake such actions and activities as may serve these purposes, primarily within the
republic of South Africa, the Democratic Republic of the Congo, Senegal, and Cameroon, but also in other
parts of Africa and the world.
The operating results and state of affairs of the company are fully set out in the attached financial
statements and apart from the following event do not in our opinion require any further comment.
Net deficit of the company was R968,429 (2018: R2,507,730 surplus) . Greenpeace Environmental
Organisation NPC has been approved as a public benefit organisation in terms of section 30 of the income
tax act and the receipts and accruals are exempts from income tax in terms of section 10(1)(cN) of the
act.
The financial statements have been prepared on the basis of accounting policies applicable to a going
concern. The basis presumes that funds will be available to finance future operations and that the
realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in
the ordinary course of business.
The directors are not aware of any matter or circumstances arising since the end of the financial year.
6
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Directors' Report
4 Directors' interests in contracts
5 Authorised and issued share capital
6 Directors
Name
Ketty Olive Lubandi (Board Chair)
Charles Paul Iheanacho Abani
Joanna Kerr
7 Auditors
8 Secretary
9 Prescribed Officer
No material contracts in which the directors have interest were entered into during the year.
The prescribed officer of the company is Lagi Toribau.
The company has no share capital as it is a non-profit company of the Companies Act of South Africa.
The directors of the company during the year and to the date of this report are as follows:
Bonani Chartered Accountants (South Africa) were appointed auditors of Greenpeace Environmental
Organisation NPC with effect from the financial year ended 31 December 2014.
The secretary of the company is Wilfred Andile Present.
7
8
Independent Auditors Report
Bonani Chartered Accountants Inc.
Building 3, Clearwater Office Park, Cnr
Millenium and Christiaan de Wet Roads
Strubensvalley, 1724
(tel) 010 541 0591 (fax) 086 545 6404
(email) info@bonanica.co.za
Reg No. 2009/024810/21
To the members of Greenpeace Environmental Organisation NPC.
We have audited the annual financial statements of Greenpeace Environmental Organisation NPC, which comprise the statement of financial position as at 31 December 2019, the statement of comprehensive income, statement of changes in equity and the statement of cash flows for the year then ended, the notes, a summary of significant accounting policies and other explanatory information, as set out on pages 10 to 30. Directors Responsibility for the Annual Financial Statements
The company’s directors are responsible for the preparation and fair presentation of these annual financial statements in accordance with the International Financial Reporting Standards, and requirements of the Companies Act of South Africa. This responsibility includes designing, implementing and maintaining and internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors' Responsibility
Our responsibility is to express an opinion on these annual financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the annual financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the annual financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the annual financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the annual financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion
In our opinion, the annual financial statements present fairly, in all material respects, the financial position of Greenpeace Environmental Organisation NPC as at 31 December 2019, and its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standards, and the requirements of the Companies Act of South Africa. Other reports required by the Companies Act
As part of our audit of the financial statements for the year ended 31 December 2019, we have read the Directors’ Report for the purpose of identifying whether there are material inconsistencies between these reports and the audited financial statements. The directors’ report is the responsibility of the directors. Based on reading the directors’ Report, we have not identified material inconsistencies between this report and the audited financial
9
statements. However, we have not audited the Directors’ report and accordingly do not express an opinion on the report. Supplementary information
The supplementary information as set out on page 31 does not form part of the financial statements and is presented as additional information. We have not audited this information and accordingly do not express an opinion thereon.
______________________________
Per: M. N. Radebe
Chartered Accountant (South Africa)
Registered Auditor
12 May 2020
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Statement of Financial Position as at 31 December 2019
2019 2018
Notes ZAR ZAR
ASSETS
Non-Current Assets
Property, plant and equipment 6 3,306,338 4,186,820
Current Assets
Due from Greenpeace International and regional offices 15 1,634,471 -
Other receivables 7 3,458,522 6,799,394
Cash and cash equivalents 8 20,120,723 20,778,996
25,213,716 27,578,390
Total Assets 28,520,054 31,765,210
FUNDS BALANCE AND LIABILITIES
Long-term Liabilities
Loan from related parties 9 - -
Current Liabilities
Loan from related parties - short-term portion of loan 9 - 1,202,753
Due to Greenpeace International and regional offices 15 7,661,473 9,422,957
Trade and other payables 8,730,707 8,043,196
10 16,392,180 18,668,906
Fund Balance
Accumulated funds 12,127,874 13,096,304
Total fund balance and liabilities 28,520,054 31,765,210
10
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Statement of Comprehensive Income for the year ended 31 December 2019
2019 2018
Notes ZAR ZAR
INCOME
Contributions from Greenpeace International and regional
offices 15 89,662,490 80,150,784
Other Contributions and Donations 25,142,416 18,863,970
Interest income 298,769 335,706
Profit on exchange differences 2,248,563 2,471,375
Profit on disposal of assets - 10,295
Total income 117,352,238 101,832,130
Less: Fundraising expenditure 27,214,882 23,126,272
Total income less fundraising expenditure 90,137,356 78,705,858
EXPENDITURE
Campaigns 34,491,513 29,709,790
Oceans 5,857,716 4,486,138
Forests 15,652,318 12,693,820
Sustainable Agriculture and Genetic Engineering 4,312,886 3,771,692
Climate and Energy 5,415,479 5,373,454
Campaign Coordination 3,253,114 3,384,686
Campaign support 19,180,162 13,918,148
Media and Communications 12,147,288 9,496,868
Public information and outreach 542,248 421,706
Action support 6,490,626 3,999,574
Organisational support and Indirect Costs 35,375,745 32,133,580
Interest Cost 2,047 3,340
Foreign exchange loss 2,056,189 430,597
Loss from disposal of assets 130 2,673
Total non-fundraising expenditure 17 91,105,786 76,198,128
Net surplus/(deficit) -968,430 2,507,730
11
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Statement of Accumulated Reserves for the year ended 31 December 2019
Total
Fund Balance Fund Balance
Notes ZAR ZAR
Accumulated Fund Balance at 1 January 2018 10,588,574 10,588,574
Surplus for the year 2,507,730 2,507,730
Accumulated Fund Balance at 31 December 2018 13,096,304 13,096,304
Surplus for the year (968,430) (968,430)
Accumulated Fund Balance at 31 December 2019 12,127,874 12,127,874
12
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Statement of Cash Flows for the year ended 31 December 2019
2019 2018
Notes ZAR ZAR
CASH FLOWS FROM OPERATING ACTIVITIES
Surplus/(deficit) before interest and profit/loss on disposal of assets (1,265,022) 2,167,742
Add back depreciation 2,194,346 1,833,668
(Increase)/decrease in receivables 1,706,400 (3,900,214)
Increase/(decrease) in payables (1,073,973) 4,915,460
Net profit/(loss) on disposal of assets (129) 7,622
Net interest received 296,722 332,366
Cash flows from operating activities 1,858,344 5,356,644
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (1,353,703) (2,515,940)
Disposal of property, plant and equipment 39,839 335
Cash flows used in investing activities (1,313,864) (2,515,605)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash raised from new loans - -
Loans paid (1,202,753) (252,290)
Cash flows from financing activities (1,202,753) (252,290)
Net increase/(decrease) in cash (658,272) 2,588,749
Cash and cash equivalents at 1 January 20,778,996 18,190,247
Cash and cash equivalents at 31 December 8 20,120,724 20,778,996
13
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Accounting policies
1 Basis for preparation
1.1 Significant judgements and sources of estimation uncertainty
Residual value and useful lives of property and equipment
1.2 Property and equipment
(i)
(ii)
(iii)
Property and equipment is initially measured at cost.
The financial statements have been prepared in accordance with International Financial Reporting
Standards, and the Companies Act of South Africa. The financial statements have been prepared on the
historical cost basis and incorporate the principal accounting policies set out below. They are
presented in South African Rands.
In preparing the financial statements, management is required to make estimates and assumptions
that affect the amounts presented in the financial statements and related disclosures. Use of available
information and the application of judgement is inherent in the formation of estimates. Actual results
in the future could differ from these estimates which may be material to the financial statements.
Significant judgements include:
The company calculates depreciation on property and equipment on a straight-line basis so as to write
off the cost of assets over their expected useful lives. The economic life of an asset is determined
based on existing wear and tear, economic and technical ageing, legal and other limits on the use of
the asset to generate future cash flows, the company may accelerate depreciation charges to reflect
the remaining useful life of the asset or record an impairment loss.
The company determines residual values on an annual basis. Because residual values are the expected
value at the end of an asset's useful life, the following process of estimation was required to estimate
the useful life as at year end. Management determines the residual values and useful lives of the assets
with reference to the company's policy for depreciation for that specific class of asset as well as the
performance of the asset. Management reviews the remaining useful lives of all assets in the last year
of their useful lives.
The cost of an item of property and equipment is recognised as an asset when:
it is probable that future economic benefits association with the item will flow to the company,
the cost of the item can be measured reliably, and
the cost of the item is in excess of R5,000
14
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Accounting policies
1.2 Property and equipment (continued)
Item Average useful life
Furniture and fittings 6 years
Motor vehicles 5 years
Office equipment 3 years
Computer equipment 3 years
Campaign equipment 5 years
Lease hold improvements Remaining period of current lease
The gain or loss arising from the derecognition of an item of property or equipment is included in profit
or loss when the item is derecognised. The gain or loss arising from the derecognition of an item of
property or equipment is determined as the difference between the net disposal proceeds, if any, and
the carrying amount of the item. An asset's carrying amount is written down immediately to its
recoverable amount if the asset's carrying amount is greater than the asset's recoverable amount.
The useful lives of items of property and equipment have been assessed as follows:
The depreciation charge for each period is recognised in profit or loss unless it is included in the
carrying amount of another asset.
Costs include costs incurred initially to acquire or construct an item of property and equipment and
costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised
in the carrying amount of an item of property or equipment, the carrying amount of the replaced part
is derecognised. All other repairs and maintenance are charged to profit and loss during the financial
period in which they are incurred.
Costs include costs directly attributed to bringing the asset to working condition for use as intended by
management.
The residual value, useful life and depreciation method of each asset is reviewed, and adjusted if
appropriate, at the end of each reporting period. If the expectations differ from previous estimates,
the change is accounted for as a change in accounting estimate.
Property and equipment is depreciated on the straight line basis over it's expected useful lives to the
estimated residual value.
Property and equipment is carried at cost less accumulated depreciation and any impairment losses.
15
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Accounting policies
1.3 Financial instruments
Classification
(i) Loans and receivables
(ii) Financial liabilities measured at amortised cost
Initial recognition and measurement
Subsequent measurement
Loans and receivables are subsequently measured at amortised cost, using the effective interest
method, less accumulated impairment losses.
Financial liabilities at amortised cost are subsequently measured at amortised cost, using the effective
interest method.
Classification depends on the purpose for which the financial instruments were obtained / incurred
and takes place at initial recognition. Classification is re-assessed on an annual basis, except for
derivatives and financial assets designated as at fair value through profit and loss, which shall not be
classified out of the fair value through profit and loss category.
The company classifies financial assets and financial liabilities into the following categories:
Financial instruments are recognised initially when the company becomes a party to the contractual
provisions of the instruments.
The company classifies financial instruments, or their component parts, on initial recognition as a
financial asset, a financial liability or an equity instrument in accordance with the substance of the
contractual arrangement.
Financial instruments are measured initially at fair value, except for equity investments for which a fair
value is not determinable, which are measured at cost and are classified as available-for-sale financial
assets.
For financial instruments which are not at fair value through profit and loss, transaction costs are
included in the initial measurement of the instrument.
Transaction costs on financial instruments at fair value through profit and loss are recognised in profit
or loss.
16
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Accounting policies
1.3 Financial instruments (continued)
Impairment of financial assets
Receivables and payables from / to related parties
At each reporting date the company assesses all financial assets, other than those at fair value through
profit or loss, to determine whether there is no objective evidence that a financial asset or group of
financial assets has been impaired.
For amount due to the company, significant financial difficulties of the debtor, probability that the
debtor will enter bankruptcy and default on payments are all considered indicators of impairment.
Impairment losses are recognised in profit or loss.
Impairment losses are reversed when an increase in the financial asset's recoverable amount can be
related objectively to an event occurring after the impairment was recognised, subject to the
restriction that the carrying amount of the financial asset at the date that the impairment was reversed
shall not exceed what the carrying amount would have been had the impairment not been recognised.
Reversals of impairment losses are recognised in profit and loss except for equity investments
classified as available for sale.
Where financial assets are impaired through use of an allowance account, the amount of the loss is
recognised in profit and loss within operating expenses. When such assets are written off, the write off
is made against the relevant allowance account. Subsequent recoveries of amounts previously written
off are credited against operating expenses.
These include loans to and from related companies and are recognised initially at fair value plus direct
transaction costs.
Loans to group companies are classified as loans and receivables.
Loans from group companies are classified as financial liabilities and are measured at amortised cost.
17
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Accounting policies
1.3 Financial instruments (continued)
Trade and other receivables
Trade and other payables
Cash and cash equivalents
Bank overdraft and borrowings
Bank overdrafts and borrowings are initially measured at fair value net of transaction costs incurred,
and are subsequently measured at amortised cost, using the effective interest rate method. Any
difference between the proceeds (net of transaction costs) and the settlement or redemption of
borrowings is recognised over the term of the borrowings in accordance with the company's
accounting policy for borrowing costs.
Trade and other receivables are classified as loans and receivables.
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost,
using the effective interest rate method.
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly
liquid investments with original maturities of 3 months or less and bank overdrafts that are readily
convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
These are initially and subsequently recorded at fair value.
Trade receivables are measured at initial recognition at fair value, and are subsequently measured at
amortised cost using the effective interest rate method. Appropriate allowances for estimated
irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset
is impaired. Significant financial difficulties of the debtor, probability that the debtor will enter
bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days
overdue) are considered indicators that the trade receivable is impaired. The allowance recognised is
measured as the difference between the asset's carrying amount and the present value of estimated
future cash flows discounted at the effective interest rate computed at initial recognition.
The carrying amount of the asset is reduced through the use of an allowance account, and the amount
of the loss is recognised in profit or loss within operating expenses. When a trade receivable is
uncollectable, it is written off against the allowance account or trade receivables. Subsequent
recoveries of amounts previously written off are credited against operating expenses in profit or loss.
18
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Accounting policies
1.3 Financial instruments (continued)
1.4 Income tax
1.5 Leases
Operating leases - lessee
1.6 Impairment of assets
If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset
is reduced to its recoverable amount. That reduction is an impairment loss.
An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is
recognised immediately in profit or loss. Any impairment loss of a revalued asset is treated as a
revaluation decrease.
Bank overdrafts and borrowings are classified as current liabilities unless the company has an
unconditional right to defer settlement of liability for at least 12 months after the statement of
financial position date.
Taxation was not provided for, as the company is a non-profit company incorporated in terms of the
Companies Act and has been granted a tax exemption certificate in terms of section 10(1)(cN) of the
Income Tax Act.
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to
ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and
rewards incidental to ownership.
Operating lease payments are recognised as an expense on a straight-line basis over the lease term.
The difference between the amounts recognised as an expense and the contractual payments are
recognised as an operating lease liability. This liability is not discounted.
Any contingent rents are expensed in the period they are incurred.
The company assesses at each end of the reporting period whether there is any indication that an asset
may be impaired. If any such indication exists, the company estimates the recoverable amount of the
asset.
The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to
sell and its value in use.
19
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Accounting policies
1.6 Impairment of assets (continued)
1.7 Employee benefits
Short-term employee benefits
1.8 Revenue
(a) Grant income
Direct payments made by Greenpeace International in respect of expenditure relating to the South
African operations are recognised as income in the period in which such payments are made, and the
corresponding amounts included in the expenditure so as to reflect more comprehensively the
operating costs of the South African operations.
An entity assesses at each reporting date whether there is any indication that an impairment loss
recognised in prior periods for assets other than goodwill may no longer exist or may have decreased.
If any such indication exists, the recoverable amounts of those assets are estimated.
The increased carrying amount of an asset other than goodwill attributable to a reversal of an
impairment loss does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in prior periods.
A reversal of an impairment loss of assets carried at a cost less accumulated depreciation or
amortisation other than goodwill is recognised immediately in profit or loss. Any reversal of an
impairment loss of a revalued asset is treated as a revaluation increase.
The cost of short-term employee benefits, (those payable within 12 months after the service is
rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as
medical care), are recognised in the period in which the service is rendered and are not discounted.
The expected cost of compensated absences is recognised as an expense as the employees render
services that increase their entitlement or, in the case of non-accumulating absences, when the
absence occurs.
The expected cost of profit sharing and bonus payments is recognised as an expense when there is a
legal or constructive obligation to make such payments as a result of past performance.
All other income is generally brought to account in the period in which it was received.
20
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Accounting policies
1.8 Revenue (continued)
(b) Interest income
(c) Donations income
(d) Montly donation income collected via debit orders
Repayment of grant related income is applied first against any unamortised deferred credit set up in
respect of the grant. To the extent that the payment exceeds any deferred credit, or where no
deferred credit exists, the repayment is recognised immediately as an expense.
Repayment of a grant related to an asset is recorded by increasing the carrying amount of the asset or
reducing the deferred income balance by the amount payable. The cumulative additional depreciation
that would have been recognised to date as an expense in the absence of the grant is recognised
immediately as an expense.
Interest is recognised in surplus or deficit, using the effective interest rate method.
Donations income is recognised as revenue when it is paid into the bank account.
Donation income collected via monthly debit orders are held in a Mercantile bank clearing account for
the duration of the cooling-off period stipulated by the Consumer Protection Act 68 of 2008. During
the cooling-off period the donor retains ownership of the funds and can recall their donation at any
time and for any reason in terms of the Act.
Greenpeace Environmental Organisation has no legally enforceable claim to donation income and only
gains ownership of donations when donations collected via debit orders are transferred from the
clearing account to the organisation's current account once the cooling-off period has passed.
Income is recognised when ownership is deemed to have transferred.
21
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Accounting policies
1.9 Translation of foreign currencies
Foreign currency transaction
(i) foreign currency monetary items are translated using the closing rate;
(ii)
(iii)
Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic
environment in which the entity operates (functional currency)
The financial statements are presented in South African Rands (ZAR), which is the company's functional
and presentation currency.
A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign
currency amount the spot exchange rate between the functional currency and the foreign currency at
the date of the transaction.
At the end of the reporting period:
non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rate at the date of the transaction; and
non-monetary items that are measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined.
When a gain or loss on a non-monetary item is recognised to other comprehensive income and
accumulated in equity, any exchange component of that gain or loss is recognised to other
comprehensive income and accumulated in equity. When a gain to loss on a non-monetary item is
recognised in profit or loss, any exchange component of that gain or loss is recognised in profit or loss.
Cash flows arising from transactions in a foreign currency are recorded in Rands by applying to the
foreign currency amount the exchange rate between the Rand and the foreign currency at the date of
the cash flow.
Exchange differences arising on the settlement of monetary items or on translating monetary items at
rates different from those at which they were translated on initial recognition during the period or in
previous financial statements are recognised in profit or loss in the period in which they arise.
22
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Notes to the Financial Statements
2 New Standards and Interpretations
2.1 Standards and Interpretations Issued but not yet effective as at 31 December 2019
Standard Effective Date
IAS 1 Amendments on classification of liabilities as current or non-current 1 January 2022
1 January 2020
IFRS 17 Insurance contracts 1 January 2021
3 Risk Management
Capital risk management
The company has decided not to early adopt the following standards and interpretations, which have
been published and are mandatory for the company's accounting records for the future periods.
The company's objectives when managing capital are to safeguard the company's ability to continue as a
going concern in order to provide benefits for stakeholders and to maintain an optimal capital structure to
reduce the cost of capital.
The capital structure of the company consists of debt, which includes the borrowings disclosed in note 9
cash and cash equivalents, and equity as disclosed in the statement of financial position.
There are no externally imposed capital requirements.
IAS 8 Amendments to references on the conceptual framework in IFRS standards
There has been no changes to what the entity manages as capital, the strategy for capital maintenance or
externally imposed capital requirements from the previous year.
23
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Notes to the Financial Statements
3 Risk Management (Continued)
Financial risk management
Price risk
Liquidity risk
2019 2018
Trade and other payables - less than 1 year 16,392,180 18,668,906
Cash flow and fair value interest rate risk
Credit risk
The company's activities expose it to a variety of financial risks: market risk (including currency risk, fair
value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.
Surplus cash held by the company over and above the balance required for working capital management
is invested in interest-bearing current accounts.
The table below analyses the company's financial liabilities into relevant maturity groupings based on the
remaining period at the end of the reporting period to the contractual maturity date. The amounts
disclosed in the table are the contractual undiscounted cash flows:
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding
through an adequate amount of committed credit facilities. Due to the nature of the underlying business,
the company maintains flexibility in funding by keeping cash on hand.
The company does not hold any investment in listed securities, nor does it hold any commodities. The
company is therefore not exposed to price risk.
As the company has no significant interest bearing assets, the company's income and operating cash flows
are substantially independent of changes in market interest rates.
Potential concentration of credit risk consists principally of cash investments and deposits. The company's
main income stream is derived from grants received. Therefore, no trade receivables exist. The company
deposits cash surpluses with major banks of high quality credit standing.
24
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Notes to the Financial Statements
3 Risk Management (Continued)
Foreign exchange risk
The company does not hedge its foreign currency fluctuations.
As the company receives funds that are denominated in foreign currency, there is an element of risk due
to fluctuations in the rate of exchange. The company is further exposed to currency risk to the extent that
some funds are held in foreign currency bank accounts.
The company conducts transactions with its head office in the Netherlands and other branches of the
head office. Transactions with these companies might result in receivables and payables denominated in
currency that is not in South African Rands.
25
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Notes to the Financial Statements
4 Financial assets by category
Loans and Total Loans and Total
Receivables Receivables
Receivables (exclusive of repayments) 5,092,993 5,092,993 6,799,394 6,799,394
Cash and cash equivalents 20,120,723 20,120,723 20,778,996 20,778,996
25,213,716 25,213,716 27,578,390 27,578,390
5 Financial liabilities by category
Financial Total Financial Total
liabilities at liabilities at
amortised amortised
cost cost
Payables 16,392,180 16,392,180 18,668,906 18,668,906
16,392,180 16,392,180 18,668,906 18,668,906
6 Property and equipment
2019 2018
Cost Accumulated Carrying Cost Accumulated Carrying
Depreciation value Depreciation value
Software 609,582 (206,470) 403,112 214,664 (61,090) 153,574
Motor vehicles 475,739 (461,573) 14,166 501,092 (434,620) 66,472
Office equipment 1,901,773 (882,677) 1,019,096 2,157,890 (821,917) 1,335,973
Computer equipment 2,767,071 (1,588,579) 1,178,492 3,703,866 (2,080,945) 1,622,921
Campaign equipment 422,067 (157,020) 265,047 539,464 (419,333) 120,131
Leasehold Improvements 1,383,977 (957,552) 426,425 1,383,976 (496,227) 887,749
7,560,209 (4,253,871) 3,306,338 8,500,952 (4,314,132) 4,186,820
Reconciliation of property and equipment - 2019
Opening Additions Disposals Depreciation Closing
Balance Balance
Software 153,574 425,288 - (175,750) 403,112
Motor vehicles 66,472 - - (52,306) 14,166
Office equipment 1,335,973 158,131 - (475,008) 1,019,096
Computer equipment 1,622,921 577,840 (39,839) (982,430) 1,178,492
Campaign equipment 120,131 192,444 - (47,528) 265,047
Leasehold improvements 887,749 - - (461,324) 426,425
4,186,820 1,353,703 (39,839) (2,194,346) 3,306,338
The accounting policies for financial instruments have been applied to the line items below:
The accounting policies for financial instruments have been applied to the line items below:
2019 2018
2019 2018
26
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Notes to the Financial Statements
6 Property and equipment (continued)
Reconciliation of property and equipment - 2018
Opening Additions Disposals Depreciation Closing
Balance Balance
Software 30,922 157,639 - (34,987) 153,574
Motor vehicles 161,620 - - (95,148) 66,472
Office equipment 1,150,252 545,710 - (359,989) 1,335,973
Computer equipment 1,416,374 1,116,319 (335) (909,437) 1,622,921
Campaign equipment 170,804 - - (50,673) 120,131
Leasehold improvements 574,911 696,272 - (383,434) 887,749
3,504,883 2,515,940 (335) (1,833,668) 4,186,820
7 Receivables
2019 2018
Staff salary and expense advances 252,472 769,036
Prepayments 444,197 604,780
Lease deposits 1,427,825 1,381,942
South African Revenue Services - Value added tax 1,334,028 4,043,636
3,458,522 6,799,394
Amounts due from related parties 1,634,471 -
5,092,993 6,799,394
8 Cash and cash equivalents
Cash on hand 44,427 19,379
Bank balances 20,076,296 20,759,617
20,120,723 20,778,996
A register containing the information required by Regulation 25(3) of the companies regulations, 2011, is available for
inspection at the registered office of the company.
The depreciation charged to the statement of comprehensive income during the year amounted to R2,194,347 (2018:
R1,833,667)
Lease rentals amounting to R4,045,736 (2018: R3,719,552) relating to property and equipment are included in the
statement of comprehensive income as part of operating expenses.
For the purpose of the statement of cash flows, cash, cash equivalents and bank overdrafts include total cash assets less
bank overdrafts:
27
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Notes to the Financial Statements
9 Long-term liability
Notes 2019 2018
Loans from Greenpeace International - 1,202,753
Short-term portion of loans - 1,202,753
Minimum repayments due including interest
- within one year - 1,202,753
- in second to fifth year inclusive - -
- 1,202,753
These loans are with a related party, are unsecured, and bears interest at 0.3% per year
10 Trade and other payables
Short-term portion of loan - 1,202,753
Amounts due to related parties 7,661,473 9,422,957
Lease accrual 367,319 430,678
Deferred income 4,464,730 3,930,320
Accrued leave pay 1,309,053 999,846
Accrued expenses 1,269,562 1,455,737
Staff advances 98,631 4,615
Provision for bad debts - 427,550
Other payables 1,221,412 794,450
Trade and other payables at fair value 16,392,180 18,668,906
11 Income tax expense
12 Employee benefit expense
Salaries and Wages 64,992,151 50,086,346
Number of employees 90 88
13 Auditors remuneration
Fees 166,073 158,475
14 Commitments
Operating leases - as lessee (expense)
Minimum lease payments due
- within one year 2,088,971 1,934,232
- in second to final year inclusive 1,084,658 3,173,629
3,173,629 5,107,861
No provision has been made for 2018 or 2017 tax as the company has been granted a tax exemption certificate in terms of
section 10(1)(cN) of the Income Tax Act. This is due to the fact that the company is incorporated as a non-profit company in
terms of the Companies Act.
28
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Notes to the Financial Statements
15 Related parties
Head office Greenpeace International
Branch of head office Greenpeace Australia
Greenpeace USA
Greenpeace Germany
Greenpeace Belgium
Greenpeace United Kingdom
Greenpeace Canada
Greenpeace Asia
Greenpeace
Directors Ketty Olive Lubandi (Board Chair)
Charles Paul Iheanacho Abani
Joanna Kerr
Related party balances 2019 2018
Payables to related parties
Greenpeace International 7,661,473 9,422,957
Greenpeace National offices - -
7,661,473 9,422,957
Receivables from related parties
Greenpeace Germany 1,634,471 -
1,634,471 -
Related party transactions
Contributions/Grants received
Greenpeace International 84,995,065 78,781,047
Greenpeace National Offices 4,667,425 1,369,737
89,662,490 80,150,784
16 Compensation of board members and remuneration of Board appointees
The receivables and payables to and from related parties arise from the annual budget allocation and transfer from
Greenpeace International. It also includes expenditure paid on behalf of the entity by Head Office and branches of the Head
Office and expenditure paid on behalf of the Head Office and branches of the Head Office by the entity.
The Chair and Members of the entity do not receive a salary, but their essential expenses incurred while serving the entity
are refunded in line with the entity's policies.
The entity's Board appointed Prescribed Officer is delegated duties associated with an organisation's prescribed officers in
terms of the company Act and is compensated as follows:
29
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Notes to the Financial Statements
16 Compensation of board members and remuneration of Board appointees (continued)
Prescribed officer - for services as prescribed officer
2019 2018
Salaries 2,048,780 1,540,702
Other payments 484,697 134,821
Total 2,533,477 1,675,523
17 Annual aggregated non-fundraising expenditure by region
2019 2018
Congo Basin (Cameroon and the Democratic republic of the Congo) 15,652,318 12,693,820
Senegal 5,857,716 4,486,138
Kenya 4,312,886 3,771,692
South Africa 65,282,865 55,246,478
Total 91,105,785 76,198,128
18 Going concern
19 Events after the reporting period
20 Rounding
Small casting inconsistancies within the financial statements are due to rounding.
The directors are not aware of any matter or circumstance arising since the end of the financial year.
The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis
presumes that funds will be available to finance future operations and that the realisation of assets and settlement of
liabilities, contingent obligations and commitments will occur in the ordinary course of business.
30
Greenpeace Environmental Organisation NPC
(Registration Number 2008/004583/08)
Financial Statements for the year ended 31 December 2019
Detailed Statement in support of Comprehensive income
for the year ended 31 December 2019
2019 2018
Notes ZAR ZAR
Operating expenses
Employee costs 12 64,992,151 50,086,346
Other employee related costs 5,904,472 3,058,246
Advertising costs 610,178 505,806
Auditors remuneration 13 166,073 158,475
Bad Debts - 8,110
Bank charges 491,984 398,719
Cleaning 567,087 573,800
Consulting and professional fees 8,852,050 11,520,599
Consumables 615,471 1,082,460
Depreciation 6 2,194,346 1,833,668
Health and safety 63,919 6,213
Hire 167,394 167,100
Interest paid 2,047 3,340
Lease rentals on operating lease 4,045,736 3,719,552
Legal expenses 491,176 321,206
Loss from disposal of assets 130 2,673
Loss on exchange differences 2,056,189 430,597
Motor vehicle expenses and insurance 739,873 589,481
Permits and fees 843,188 578,002
Postage 236,303 207,721
Printing and publishing 2,179,161 2,347,122
Repairs and maintenance 80,079 399,644
Security 447,663 528,840
Small parts 286,594 59,501
Subscriptions 2,399,271 2,050,610
Telephone and internet 4,870,778 4,961,895
Travel and accommodation 14,308,628 13,444,446
Utilities 245,285 178,903
Video and film production 449,457 101,326
118,306,682 99,324,401
31
Recommended