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Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 2
Table of Contents
INDEPENDENT AUDITOR’S REPORT ............................................................................................................... 3
STATEMENT OF FINANCIAL POSITION .......................................................................................................... 4
STATEMENT OF INCOMES AND EXPENDITURES ........................................................................................ 5
STATEMENT OF CASH FLOWS ........................................................................................................................... 6
DETAILS OF FUNCTIONAL EXPENSES BY DONOR ....................................................................................... 7
NOTES TO FINANCIAL STATEMENTS .............................................................................................................. 8
NOTE 1: GENERAL INFORMATION ........................................................................................................................................... 8 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .......................................................................................... 10 NOTE 3: CASH AND CASH EQUIVALENT ............................................................................................................................... 11 NOTE 4: GRANTS RECEIVABLE FROM DONORS ................................................................................................................... 12 NOTE 5: ADVANCES TO SUB-GRANTEES ............................................................................................................................ 12 NOTE 6: PROPERTY PLANT AND EQUIPMENT ................................................................................................................... 13 NOTE 7: DEFERRED GRANT INCOME .................................................................................................................................. 14
Crowe Horwath®
Georgian Audit & Consulting Company
Member Crowe Horwath International
Axis Business Palace, 4th floor 2, D. Gamrekeli Str., Tbilisi 0160, Georgia +995 32 290 4522 Tel +995 32 290 4523 Fax
www.gacc.com.ge
INDEPENDENT AUDITOR’S REPORT
To the management of Women’s Fund in Georgia
We have audited the accompanying Financial Statements of the Women’s Fund in Georgia (the Entity)
which comprises the Statement of financial position, Statement of incomes and expenditures, and the
Cash Flow Statement prepared for the year ended 31 December 2015, and a summary of significant
accounting policies and other explanatory notes.
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with the Temporary Accounting Standard for Non-for-profit Organizations approved by
Accounting Standards Committee at the Parliament of Georgia on March 22, 2005. This responsibility
includes designing, implementing, and maintaining internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error; selecting and applying appropriate accounting policies; and making accounting estimates that are
reasonable in the circumstances.
Our responsibility is to express an opinion on these 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
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statement, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and presentation of the 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
In our opinion, the financial statements give a true and fair view of the disbursements made and funds
received for the given period, and of its financial performance.
Georgian Audit & Consulting Company (GACC)
Member Crowe Horwath International
December 27, 2016, Tbilisi, Georgia
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 4
Statement of Financial Position
(All stated in Georgian Lari)
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 5
Statement of Incomes and Expenditures
(All stated in Georgian Lari)
Year 2015 Year 2014 GRANT INCOME FOR THE PERIOD
Heinrich Boll Stiftung 27,108 - Embassy of the Kingdom of the Netherlands in Georgia 99,597 25,074 French Expertise International 45,237 1,562 International Network of Women's Funds 22,316 18,338 Sigrid Rousing Trust 154,629 68,640 International Women Association Georgia - - Mama Cash 100,556 98,929 Global Fund for Women 46,034 64,399 Filia die frauenstiftung 17,441 290 Estonian Ministry of Foreign Affairs - 77
Slovak AID/PIPA- People in Peril Association - 2,353 Urgent Action Fund 18,079 13,524 United States Agency for International Development 146,569 25,492 OAK Foundation 137,052 65,827 Slovak-Czech Women’s Fund - 202
Activist Convening ECA 264,986 -
Kvinna till Kvinna Foundation 20,127 - Total grant incomes 1,099,732 384,708
OTHER INCOME
Individual donations 11,174 11,293 Interest earned on bank balances 2,931 1,771 Other non-operating income - 861 Total other income 14,104 13,925
SUB-GRANTS GRANTS ISSUED AND OPERATING EXPENSES INCURRED
Sub-grants issued (340,003) (119,986) Administrative and operational expenses (769,413) (275,945) Total sub-grant and operating expenses (1,109,416) (395,931)
Gain/(Loss) from exchange differences 64,113 (18,877)
Other non-operating expenses
-
(317)
(Decrease)/increase in unrestricted net assets 68,533 (16,491) Net assets at the beginning of the year 5,631 22,121 Net assets at the end of the year 74,164 5,631
Accompanying statements are integral part of the Report
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 6
Statement of Cash Flows
(All stated in Georgian Lari)
Year 2015 Year 2014
Cash flows from operating activities
Grants received from donors 1,249,987 786,138
Individual donations received 11,174 10,674
Interest received 2,931 1,980
Payments to sub-grantees (535,876) (220,797)
Operational expenses paid (765,522) (275,130)
Net cash flow from operating activities (37,307) 302,865
Cash flows from investing activities
Payments for fixed assets acquisition (2,430) -
Net cash flows from investing activities (2,430) -
Cash flows from financing activities
Net cash flows from financing activities - -
Net (decrease)/increase in cash and cash equivalents (39,737) 302,865
Cash and cash equivalents at the beginning of the year 539,618 252,795
Exchange rate difference 47,655 (16,042)
Cash and cash equivalents at the end of the year 547,536 539,618
Accompanying statements are integral part of the Report
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 7
Details of functional expenses by Donor
(All stated in Georgian Lari)
Expenses BOLL Convening KtK REAP DUTCH LGBTI INWF SRT FILIA RRG GFW USAID MC OAK
Individual Donors
Total Total
2015 2015 2015 2015 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Sub-grants
issued - - - - - - - - - - 75,458 8,670 - - 14,969 12,362 35,110 30,632 144,472 23,403 - 151 60,388 31,193 9,606 11,222 340,003 119,986
Office Rent 2,937 - - - - - - - - - 16,279 12,380 - - - - - - - - - 2,492 - - - - 19,216 14,872
Communication 724 - 204 - - - - - - - 137
- - - - - - - 80 3,404 3,218 24 - - - 4,493 3,298
Office Uttility 1,254 - 668 - - - - - - - 105 2,223 - - - - - - - - 1,308 2,293 - - - - 3,335 4,586
Fuel expenses - - 907 - 762 204 110 - 516 - 746 806 - - - - - - - 373 2,138 1,941 815 603 - - 5,994 3,927
Stationery - 1,032 887 - 581 -
- - -
- - - - - - - - - 227 406 850 - - - 3,577 406
Training expenses
3,830 21,712 2,344 - 4,476 1,236 2,184 - - 18,213 2,871 3,018 - - - - - - - - 800 - 615 4,464 - - 38,833 26,931
Fundraising expenses
- - - - - - - - - -
- - - - - - - - - 11,053 3,597 - - - - 11,053 3,597
Business trip expenses
43 4,863 3,013 45 6,670 188 4,359 - 525 113 2,997 - - - - - - - - 75 9,688 6,717 11,907 1,448 - - 44,110 8,658
Transportation costs
- - -
632 - 1,631 - 603 -
- 3,432 - - - 9,900 4,708 - - 4,377 7,005 193 - - - 20,768 11,713
Administrative expenses
- - - - - 617
- - -
- - - - - - 183 - - - 14,204 - 2,468 - - - 17,471
Salary 8,313 - 10,403 2,051 78,867 18,766 25,151 1,441 10,126 - 52,334 41,459 13,663 - 2,661 704 923 27,727 - 1,557 55,841 52,820 54,363 25,024 - - 314,695 169,499
Project Presentation
- 786 - - - -
- - - 2,484 - - - - - - - - - 5,584 - 1,875 - - - 10,728 -
PR Event 9,873 - - - - 4,048 4,234 - - - - - - - - - - 604 - - 2,701 2,721 - - - - 16,807 7,373
Bank commission fee
46 66 90 1 185 16 63 1 32 13 135 84 8 - 4 13 5 42 - 4 372 327 565 69 4 - 1,577 658
Depreciation and amortization
- - - - - - 287 - - - - - 338 290 445 445 96 505 - - 1,084 1,037 962 559 75 - 3,288 2,836
Conference expenses
- 234,344 - - - - - - - - - - - - - - - - - - - - - - - - 234,344 -
Co-financing - - - - - - - - 10,515 - - - - - - - - - - - - - - - - - 10,515 -
Other Expenses 90 2,183 1,611 - 7,425 - 7,219 120 - - 1,083 - - - - - - - - - 1,978 - 4,493 - - - 26,081 120
Total Expenses 27,108 264,986 20,127 2,097 99,597 25,074 45,23
7 1,562 22,316 18,338 154,629 68,640 17,441 290 18,079 13,524 46,034 64,399 144,472 25,492 100,556 98,929
137,052
65,827
9,685 11,222 1,109,41
6 395,931
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 8
Notes to Financial Statements
Note 1: General Information
Women's Fund in Georgia is set up by the Educational Cooperation and Development Center.
The fund is registered at the Ministry of Justice of the Republic of Georgia on May 24, 2005.
Tbilisi office location is:
8, Sergo Zakariadze Str., Entrance 4, I floor, Apt. #74, 0177 Tbilisi, Georgia
Women's Fund in Georgia is the first locally established grant making organization which
supports women's groups' activities and initiatives for social changes in Georgia.
The mission of Women's Fund in Georgia is empowering women in Georgia for protection of
their rights, full self-realization and participation in society's life through providing financial
and technical support, capacity building and development of feminist philanthropy.
The vision of Women's Fund in Georgia is strong, equal, recognized and happy women in free,
safe and just world.
Priorities of the Women's Fund in Georgia: protecting women's rights, improving women's
economic opportunities, assisting women living in conflict zones, promoting legislative
initiatives, raising awareness of gender issues, increasing sensitivity of the community
towards women's issues, and supporting women's movement building.
The Fund's activities specifically address the varying, difficult problems that Georgian women
face. The locally established Fund is knowledgeable about the needs of the women who live in
Georgia and for this reason it will be able to help women's organizations and groups to realize
their goals, to create new organizations and innovations. The Fund raises money specifically
for the activities of women's organizations and groups.
Accounting and financial reporting are centralized in office in Tbilisi. The Entity uses
accounting software “ORIS ACCOUNTING” for recording and systematization of the sources
received and disbursements made by each project. The software supports multicurrency
transactions. Fiscal year of the Entity is set from 1 of January to 31 of December. Reporting is
required thereon by these dates. The Entity’s activity includes issuing the small grants.
Originals of supporting documents of the small grants disbursements are attached to the
financial reports, and kept in Tbilisi office.
The structure of the Fund is comprised of the Board of Directors, the Staff, the Advisory
Council and volunteers. The administration procedure of the Fund is simple and includes the
following mechanisms, such as: to announce the operational programs, to determine the grant
amount distributed annually, to produce annual reports for accountability, to conduct on-site
evaluation and monitoring of the programs. The decision-making will be based on a
participatory model and will involve representatives of the target groups.
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 9
Staff:
• Nana Pantsulaia – Executive Director
• Ekaterine Gejadze - Program Coordinator
• Guliko Vediashvili – Grant Financial Manager
• Ana Chiladze - Grant Manager
• Magda Berdzenishvili – Accountant
• Ia Kajaia – M&E Manager
• Tamar Tarkhan-Mouravi – Fundraiser
• Ana Gunia - Program Assistant
Board of Directors:
• Nana Pantsulaia (chair)
• Asmat Beshidze
• Nana Shugladze
• Maka Lomadze
Actors and stakeholders of the Women's Fund in Georgia:
Local and international NGOs including women's organizations, women's networks, donors and sponsors, government institutions, self-governing bodies, businesses, banks (local, joint or foreign), individuals, celebrities, experts, media, local communities. Women's Fund in Georgia is a member of the Women's Funding Network (WFN), the International Network of Women's Funds (INWF) and Grant makers Without Borders (Gw/oB), Association of Women's Rights in Development (AWID).
Applied abbreviations
BOLL - Heinrich Boll Stiftung
Convening – Activist Convening ECA
KtK – Kvinna till Kvinna Foundation
REAP - United States Agency for International Development
DUTCH - Embassy of the Kingdom of the Netherlands in Georgia
LGBTI - French Expertise International
INWF - International Network of Women's Funds
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 10
SRT - Sigrid Rousing Trust
FILIA - Filia die frauenstiftung
GFW - Global Fund for Women
USAID - United States Agency for International Development
RRG - Urgent Action Fund
MC - Mama Cash
OAK - OAK Foundation
Note 2: Summary of Significant Accounting Policies
Basis of preparation
The financial statements have been prepared in accordance with Temporary Accounting
Standard for Non-for-profit Organizations approved by Accounting Standards Committee at
the Parliament of Georgia on March 22, 2005. The temporary standard is based on underlying
assumptions and general principles of International Financial Reporting Standards (IFRS).
The accompanying financial statements have been prepared and presented using the
historical cost principle and accrual basis of accounting. Financial statements are prepared in
the national currency of Georgia, the Lari (GEL), which is the Company’s functional currency.
The principal accounting policies adopted are set out below.
Foreign currencies
Transfers from donor organizations and transactions denominated in foreign currency are
translated into GEL using the daily exchange rates of the TBC Bank. Year end balances are
translated at the official exchange rate of National bank of Georgia (NBG) of December 31 of
respective year.
Cash
Cash includes cash balances at the Bank accounts and petty cash.
Grants from donors
Grants from donors are initially recorded as grants receivable and simultaneously as deferred
grant income to the balance sheet when the grant agreement with donor is signed and it is
probable that the Fund will receive the grant funds
Deferred grants are then transferred to the income statement and recognized as the period
income in the period(s) when the relevant expenses of the program are recognized. Grants are
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 11
recognized in the period income with the amount equivalent to the expenses incurred for the
respective program.
Sub-grants issued
Sub-grants issued are recorded in the balance sheet as advance upon transfer of funds to sub-
grantees by the Fund
Upon receipt of appropriate sufficient evidence of work performed and expenditures incurred
by sub-grantees, the issued sub-grants are recorded as sub-grants closed in proportion of
work performed and documentation received in the statement of revenue and expenses.
Fixed assets
Tangible fixed assets are stated at historical cost less accumulated depreciation. Depreciation
is provided on all fixed assets based on historical cost. The annual charge for depreciation is
computed using straight line method.
Revenue recognition
Revenue includes grants from various donors, donations from individuals, and interest
income on the bank balances. Grant income is recognized when the relevant expenses of the
program are incurred. Donations from individuals and interest income are recognized as
received.
Note 3: Cash and cash equivalent
(All stated in Georgian Lari)
31-Dec-15 31-Dec-14
Cash on hand 170.56 368
Cash in Bank in GEL 23,786 7,041
Cash in Bank in USD 49,795 46,276
Cash in Bank in EUR 258,377 311,703
Cash in Bank in GBP 215,406 174,230
Total cash and cash equivalent 547,535 539,618
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 12
Note 4: Grants receivable from donors
(All stated in Georgian Lari)
31-Dec-15 31-Dec-14
Mama Cash - 118,065
International Network of Women's Funds - 17,382
OAK Foundation 86662.5 265,778
Global Fund for Women 1.47 6,360
Sigrid Rousing Trust 141456 356,178 Embassy of the Kingdom of the Netherlands in Georgia
38286.83 226,527
French Expertise International 1369.88 55,384
United States Agency for International Development 0.98 2,093
Heinrich Boll Stiftung - 34,215
Activist Convening ECA 40.68 -
Kvinna till Kvinna Foundation 22847.77 -
Total grants receivable from donors 290,666 1,081,982
NOTE 5: Advances to sub-grantees
(All stated in Georgian Lari)
31-Dec-15 31-Dec-14
Funds to subgrantors 24488.22 -
DGP subgrantors 147533.25 157,720
Open Door subgrantors 16657.78 58,063
RRG subgrantors 20908.03 23,061
OAK subgrantors 103985 69,173
SRT subgrantors 125850 75,458
FEI subgrantors 71409 -
KtK subgrantors 31862.5 -
FILIA subgrantors 32077.5 -
Total advances to sub-grantors 574,771 383,475
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 13
NOTE 6: Property plant and Equipment
(All stated in Georgian Lari)
Land
Computer equipment
Furniture Office
equipment Vehicles Total
Historical Cost
At January 1, 2014 1,660 5,335 11,135 5,401 25,673 49,204
Acquisitions - - - - - -
Transfers/Disposals - - - - - -
At December 31, 2014 1,660 5,335 11,135 5,401 25,673 49,204
Acquisitions - 1566 415 449 - 2,430
Transfers/Disposals - - - - - -
At December 31, 2015 1,660 6,901 11,550 5,850 25,673 51,634
Accumulated depreciation
At January 1, 2014 - 2,817 9,238 1,512 25,673 39,239
Charge for the year - 1,067 689 1,080 - 2,836
Transfers/Disposals - - - - - -
At December 31, 2014 - 3,884 9,927 2,592 25,673 42,075
Charge for the year - 1,113 897 1,278
3,288
Transfers/Disposals - - - - - -
At December 31, 2015 - 4,997 10,824 3,870 25,673 45,363
Net book value
At December 31, 2014 1,660 1,451 1,208 2,809 0 7,128
At December 31, 2015 1,660 1,904 727 1,980 0 6,271
Women’s Fund in Georgia
Financial Statements for the year ended December 31, 2015
and Independent Auditors’ Report
Page | 14
NOTE 7: Deferred grant income
(All stated in Georgian Lari)
31-Dec-15 31-Dec-14
Heinrich Boll Stiftung - 34,215
Embassy of the Kingdom of the Netherlands in Georgia 348,197 447,795
French Expertise International 71,607 115,300
International Network of Women's Funds - 16,378
Sigrid Rousing Trust 452,031 606,660
Mama Cash 61,857 162,413
Global Fund for Women 23,813 38,825
US Embassy - 171
Estonian Ministry of Foreign Affairs - 373
Urgent Action Fund 16,561 34,641
United States Agency for International Development 23,413 169,982
OAK Foundation 233,297 370,349
Received money from fundraising - 10,342
Activist Convening ECA 24,161 -
Kvinna till Kvinna Foundation 56,901 - Filia die frauenstiftung 31,232 -
Closing balance of deferred grants 1,343,072 2,007,444
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