WORLD YOUNG WOMEN'S CHRISTIAN ASSOCIATION STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31

Transcription

1 STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31 ASSETS Non Current Assets Notes Leasehold improvements, net 7 145' '296 Current Assets Cash and cash equivalents 1'672'375 3'464'205 Available-for-sale financial asset 5 14'385'628 13'347'525 Accounts receivable 6 350' '305 Donations receivable 6 2'159'849 1'581'589 Withholding tax receivable 15A 49'047 30'045 Prepayments - 1'629 Total Current Assets 18'617'205 18'773'298 Total Assets 18'762'287 18'941'594 FUND BALANCES AND RESERVES Unrestricted Funds Endowment Fund 3, 10 3'879'454 3'988'800 Other Reserves ' '470 Total Unrestricted Funds 4'472'236 4'822'270 Restricted Funds Specific Programme Funds 9, 10 1' '555 Leadership Permanent Funds 3, 10 9'901'057 9'494'517 International Building Fund 3, ' '715 J & U Porter Fund - Capital 3, ' '824 Total Restricted Funds 10'287'807 10'268'611 Total Fund Balances and Reserves 14'760'042 15'090'881 LIABILITIES Non Current Liabilities Deferred income 15D, ' '724 Pension liability 12, 15D 523' '805 Amount held on behalf member associations 15D - 164'680 Donations received in advance 8, 15D 65'503 77'980 Total Non Current Liabilities 1'105'857 1'635'189 Current Liabilities Deferred income 15D, 16 1'950'039 1'487'704 Accounts payable and accrued liabilities 15D 234' '423 Amounts held on behalf member associations 15D 699' '920 Donations received in advance 8, 15D 12'477 12'477 Total Current Liabilities 2'896'388 2'215'524 Total Liabilities, Fund Balances and Reserves 18'762'287 18'941'594 The accompanying notes are an integral part of these statements. 1

2 STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31 Unresticted Restricted Total Total Notes INCOME Member Affiliation Fees Membership Contributions Ecumenical Support Governments / Co-op Agencies Trusts and Foundations Individuals and Legacies Other Donations Other Income Donations new headquarters 8, Total income EXPENSES Program services: Advocacy Leadership Training SRHR & HIV/AIDS VAW, Peace and Justice Movement Building World Council P2C Global Initiatives Supporting services: Management and general administration Governance Fundraising Other expenses Total Expenditures Total Operational Result ( ) ( ) ( ) ( ) FINANCE (COSTS) / INCOME Interest and dividend income Gain (loss) on disposal of available-for-sale Gain (loss) on foreign currency exchange ( ) Total net financial result SURPLUS (DEFICIT) for the year ( ) ( ) ( ) OTHER COMPREHENSIVE INCOME Adjustment for available for sale Securities Reserves Actual (losses) / gains on benefit plan (OCI) ( ) ( ) Total other comprehensive income TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR ( ) ( ) The accompanying notes are an integral part of these statements. 2

3 STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31 Notes Unrestricted Restricted Total Balance as of 1 January '117'823 10'327'503 14'445'326 Transfered between funds ( ) Net surplus/(deficit) for the year ( ) Other comprehensive income Balance as of 31 January '822'270 10'268'611 15'090'880 Balance as of 1 January '822'270 10'268'611 15'090'880 Net surplus/(deficit) for the year ( ) ( ) ( ) Other comprehensive income Transfered between funds ( ) Other ( 110) ( 110) Balance as of 31 December '472'236 10'287'807 14'760'042 The accompanying notes are an integral part of these statements. 3

4 Cash flows from operating activities Surplus / (Deficit) for the year ( ) Adjustment for : Depreciation expense Gain on disposal of available-for-sale assets ( ) ( ) Realised foreign exchange (gain) / loss on disposal of available for sale assets ( ) Unrealised foreign exchange (gain) / loss of available for sale assets ( ) Other adjustments Operating surplus / (deficit) before changes in working capital ( ) ( ) (Increase) / decrease in accounts receivable ( ) ( ) (Increase) / decrease in prepayments ( 1 629) Decrease / (increase) in withholding tax receivable ( ) 253 Increase / (decrease) in deferred income Increase / (decrease) in accounts payable and accrued liabilities Increase / (decrease) in amounts held for member associations Cash flows used in operating activities ( ) Cash flows from investing activities Acquisitions of available-for-sale financial assets ( ) ( ) Proceeds from disposal of available-for-sale financial assets Interest and dividends income received Cash flows used by investing activities ( ) Net (decrease) / increase in cash and cash equivalents ( ) Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year The accompanying notes are an integral part of these statements. 4

5 NOTE 1 BACKGROUND AND ACTIVITIES The World Young Women's Christian Association (World YWCA) was founded in 1894 in the United Kingdom and is incorporated as a non-profit organisation in Switzerland. The World YWCA unites member associations that are working in accordance with its basis and principles and meet the requirements for affiliation. World YWCA seeks to co-ordinate them in a world movement, and it acts on their behalf in matters for which it has received authority. The World YWCA currently has 108 member associations affiliated worldwide. NOTE 2 BASIS OF PREPARATION (A) Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). Currently the IFRS do not contain specific guidelines for non-profit organisations and non-governmental organisations concerning the accounting treatment and the presentation of the financial statements. Where the IFRS are silent or do not give guidance on how to treat transactions specific to the non-profit sector, accounting policies have been based on the general IFRS principles. (B) Basis of measurement The financial statements are prepared using the historical cost convention, except for financial assets and liabilities, which are measured at their fair value. (C) Functional and presentation currency The financial statements are presented in Swiss Francs which is the organisation's functional and presentation currency. (D) Use of judgments, estimates and assumptions Management has made a number of judgments, estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with IFRS. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about estimates and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes: Note 15 Financial instruments; and Note 12 Personnel costs, including employee benefits. 5

6 NOTE 3 FINANCIAL RISK AND CAPITAL MANAGEMENT (A) Financial risk and fund management As most of the assets are available-for-sale financial assets, the World YWCA has exposure to foreign currency risk, market risk, credit risk and liquidity risk with the primary risks being foreign currency and market. The Board has overall responsibility for the establishment and oversight of the World YWCA's risk assessment framework. The Board has established an Investment Advisory Group, which monitors these risks for the available-for-sale financial assets and advises management of the portfolio. (B) Funds The Statement of Comprehensive Income and the Fund Balances and Reserves of the Statement of Financial Position distinguish between Restricted and Unrestricted Use Funds. The former are those funds received from donors who have imposed restrictions on the purposes for which the funds may be used. Unrestricted Use Funds are those that are freely available to the Association or are appropriated to reserves for internally designated purposes. Restricted Funds Leadership Permanent Funds These funds, which include a general fund and a number of named funds, are capital funds generated by the World YWCA Global Campaign Power to Change. Initiated at the World Council in July 1999, one of the objectives of the Global Campaign is to establish a permanent fund to endow leadership development programmes for women and girls. In June 2007, as the fund had reached USD 10 million, the Board approved that income from the fund would be used to support the leadership development of women and girls. Specific use of this fund may be approved by the Board. Specific Programs (Note 10) These funds include potential surplus from grants to be used for programmes. International Building Fund The USD 200,000 capital of this fund, which was set up by the YWCA of the USA many years ago to support YWCA building programmes around the world, was transferred to the World YWCA for management in January The International Building Fund committee meets annually and reviews applications from member YWCAs for grants and loans, which are made using the income from the funds and are administered through the World YWCA. James and Una Porter Fund Set up many years ago in honour of Una Porter, a former World YWCA President, this fund is invested and income from the fund is allocated by the James and Una Porter Fund trustees to support the empowerment of young women and girls through the World YWCA. 6

7 Unrestricted Funds Capital Reserve Fund At each year-end closing, upon approval by the Board, any annual surplus of the World YWCA core programme is allocated to the Capital Reserve Fund and any deficit is covered from the Capital Reserve Fund, or, if necessary, from the Endowment Fund. On occasion, the Board may make additional allocations from this Reserve or allocate all or part of the annual surplus to the Endowment Fund. The Capital Reserve Fund is zero at the end of December 31, 2014 and 2013, respectively. Endowment Fund Built up over the past decades from donations to the World YWCA, this Fund is invested and annual income from the Fund is used to support the core programme. Other reserves (note 10) Other reserves show funds that are internally restricted by the Board for special purposes. (C) Fair value hierarchy World YWCA s financial instruments consist of cash and cash equivalents, available-for-sale financial assets, accounts receivable and payable, other current and non current assets and liabilities. The carrying value of cash and cash equivalents, accounts receivable and payable, other current and non current assets and liabilities approximate their fair values due to the short-term nature of the instrument. All financial instruments measured at fair value are categorised into one of three hierarchy levels. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). Transfers between levels of the fair value hierarchy are recognised at the date of the event or change in circumstances that caused the transfer. There were no transfers during the years ended December 31, 2014 and December 31, The classification of World YWCA s financial instruments is the following As at Dec 31, 2014 : all are Level 1 except K as level 2 As at Dec 31, 2013 : all were classified as Level 1, except for 4,484,222 which were classified as level 2. NOTE 4 - PRINCIPAL ACCOUNTING POLICIES (A) Foreign currencies Monetary assets and liabilities denominated in foreign currencies have been translated into Swiss Francs at year-end exchange rates. Revenues and expenses have been translated into Swiss Francs using monthly exchange rates (previous month-end rates) that approximate exchange rates ruling at the date of the transaction. Exchange gains and losses thereon are recorded in the Statement of Comprehensive Income. 7

8 (B) Financial assets and liabilities (a) Cash and cash equivalents For the purpose of the cash flow, cash and cash equivalents consist of cash in hand and deposits with banks that have maturity of 90 days or less from the date of acquisition. (b) Available-for-sale financial assets Available-for-sale financial assets are available-for-sale securities and are stated at fair value. Acquisitions and disposals of available-for-sale financial assets are accounted for at trade date. Unrealised gains and losses on available-for-sale securities are recorded directly through the Availablefor-sale Securities Reserve in the Statement of Other Comprehensive Income until disposed of, at which time the gains and losses on sale against the acquisition cost are recorded through profit and loss for each fund. However unrealised foreign exchange gains and losses on available-for-sale instruments are excluded from the fair value gains and losses recognised directly in the Available-for-sale Securities Reserve. These foreign exchange gains and loss are recognised through profit and loss as they arise. (c) Impairment of financial assets Financial assets are assessed at each reporting date to determine whether there is any objective evidence that they are impaired. A financial asset is considered to be impaired if objective evidence indicates that there has been a 20% decline in the quoted market price for a period of nine months or more. The impairment losses are the difference between the acquisition costs and the current fair values of the financial assets less any impairment losses previously recognised and are recorded in the Statement of Comprehensive Income. (d) Accounts receivable Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost, net of an allowance on doubtful receivables. Non-interest-bearing or low-interest receivables are carried at their present value. Accounts receivable include receivables from member associations, accrued investment income and donations pledged. An estimate is made for doubtful receivables based on a review of all outstanding amounts at year-end. Bad debts are recorded in the Statement of Comprehensive Income during the year in which they are identified. (e) Accounts payable Accounts payable and amounts held on behalf of member associations are initially recognized at fair value and subsequently measured at amortised cost. (f) Determination of fair value The fair value of available-for-sale financial assets is determined by reference to their quoted market price at the reporting date. The fair value of accounts receivable and payable is determined as the present value of future cash flows, discounted at market rate of interest at the reporting date. The carrying amounts of accounts receivable and payable are not materially different from their fair values. 8

9 (C) Equipment, including leasehold improvements Leasehold improvements are measured at historical cost less accumulated depreciation. Depreciation and impairment losses are recognised in the Statement of Comprehensive Income on a straight-line basis over the estimated useful lives of the assets. The estimated useful life of leasehold improvements is 25 years, which is the lease term for the World YWCA Office (note 17 Leases). Acquisitions of office furniture and computers are neither capitalised nor depreciated since these operations are not significant. (D) Employee benefits The World YWCA provides pension benefits for its employees using a Swiss pension plan. The method and basis for the calculation of the pension liability at the end of the current financial year and the preliminary charge for the new financial year are prescribed under IAS 19 (R). The actuarial valuation used the projected unit credit cost method to determine liabilities and service cost as at IAS 19 (R) required that the assumed discount rate is determined by reference to market yields at the balance sheet date on high quality corporate bonds. The discount rate used for the calculations reported here is based on the yields on high quality Swiss corporate bonds. The defined benefit asset or liability comprises the present value of the defined benefit obligation less the fair value of plan assets out of which the obligations are to be settled directly and less any unrecognised net actuarial losses or gains. IFRIC 14 addresses the defined benefit pension assets and their minimum funding requirements. (a) An additional liability is recognised only if both of the following conditions exist: If the entity has a statutory or contractual obligation to pay additional amounts to the plan, and If the entity s ability to recover those amounts in the future by refund or otherwise is restricted. (b) A surplus can be recognised if the association has an unconditional right to use the surplus at some point during the life of the plan or on its wind up. (E) Amounts held on behalf of member associations The World YWCA holds funds for certain member associations as a service and funds received by the World YWCA to distribute to member associations, if certain conditions under the donor agreements are met. The World YWCA additionally has internal requirements that member associations have to comply in order to properly account for the disposition of the funds. The World YWCA therefore, classifies these funds that are held on behalf of the member associations as a liability of the World YWCA to the respective associations. (F) Revenue recognition In general revenue is recognised when the following criteria are met: a) The amount of revenue can be measured reliably. b) It is probable that the economic benefits associated with the transaction will flow to the entity. Membership affiliation fees, membership contributions and investment income are recognised on the accrual basis provided there is a reasonable assurance that they will be received. For government or government related grants, the organisation recognises revenue following IAS 20 based on the level of expenditures. For grants / contracts that are restricted to a specific project/fund, the organisation recognises revenue based on the level of services rendered or level of expenditures incurred, considering any restrictions made by the donor. 9

10 (F) Revenue recognition (continued) For grants / contracts that are not restricted to a specific project but are restricted to a time period, the organisation recognises revenue based on the specified time frame. In general, a donor s payment schedule would not prevent recognition unless the payment schedule implies that expenditure was limited to a future accounting period. For grants / contracts that are not restricted to a specific project or time period, the organisation recognizes revenue up front upon signing of the agreement. For grants which are not contractual based, the organisation recognises revenue up front upon receipt of the funds (i.e., donations). (G) Programme expenditure Programme expenditure is recognised in the period when it is incurred. Contract costs incurred that relate to future activities are deferred. (H) Leases Payments made under operating leases (net of any incentives received from the lessor) are charged to the Statement of Comprehensive Income on a straight-line basis over the period of the lease. (I) Statement on the new standards: The World YWCA has applied new and revised IFRS and IAS that became effective on January 1, 2014 without any significant impact in the financial statements. The following new and revised Standard and Interpretations have been issued, but are not yet effective. They have not been applied early in these financial statements. Their impact on the financial statements of the World YWCA has not yet been systematically analysed, unless indicated otherwise. However, management has conducted a preliminary assessment and the expected impact of each new or amended Standard and Interpretation is presented below. Effective Date Planned application Revisions and amendments of Standards and Interpretations Defined Benefit Plans: Employee Contributions * (Amendments to IAS 19) 30 June 2015 Calendar year 2015 Annual Improvements to IFRSs Cycle * 30 June 2015 Calendar year 2015 Annual Improvements to IFRSs Cycle * 30 June 2015 Calendar year 2015 IFRS 14 Regulatory Deferral Accounts * 31 December 2016 Calendar year 2016 Accounting for Acquisitions of Interests in Joint Operations * (Amendments to IFRS 11) 31 December 2016 Calendar year 2016 Clarification of Acceptable Methods of Depreciation and * Amortisation (Amendments to IAS 16 and IAS 38) 31 December 2016 Calendar year 2016 Agriculture: Bearer Plants (Amendments to IAS 16 and IAS * 41) 31 December 2016 Calendar year 2016 Equity Method in Separate Financial Statements * (Amendments to IAS 27) 31 December 2016 Calendar year 2016 Sale or Contribution of Assets between an Investor and its * Associate or Joint Venture (Amendments to IFRS 10 and IAS 31 December 2016 Calendar year ) Annual Improvements to IFRSs Cycle various * standards 31 December 2016 Calendar year 2016 IFRS 15 Revenue from Contracts with Customers * 31 December 2017 Calendar year 2017 IFRS 9 Financial Instruments * 31 December 2018 Calendar year 2018 * No impact or no significant impact is expected on the financial statements. 10

11 NOTE 5 AVAILABLE-FOR-SALE FINANCIAL ASSETS Available -for-sale securities as recorded at December 31 14'385'628 13'347'525 Available-for-sale securities are held mainly in Swiss Francs, US Dollars, and Euro. The movement in the available-for-sale financial assets in the Statement of Financial Position from December 31, 2013 to December 31, 2014 of 1,038,104 is comprised of the following: December 31 Movement December 31 Available -for-sale Assets Pictet & Cie 4'210' '521 4'575'377 Porter Fund 133'514 (2'784) 130'730 Chase Manhattan Lombard Odier 3'691' '455 3'934'173 JP Morgan 5'310' '911 5'744'769 The movements in the cash balances for these portfolios are as follows: 13'347'525 1'038'103 14'385' December 31 Movement December 31 Portfolio Cash Pictet & Cie 124'681 (113'889) 10'792 Porter Fund 52'573 (765) 51'808 Chase Manhattan (546) 0 (546) Lombard Odier 32'456 37'756 70'212 JP Morgan 443'751 (22'842) 420' '914 (99'740) 553'174 11

12 NOTE 6 - ACCOUNTS AND DONATIONS RECEIVABLE Accounts and donations receivable have been recorded as follows: December 31,2014 December 31, 2013 Accrued investment income 18'221 19'919 Accounts receivable from member associations & others 332' '386 Accounts receivable from donors 2'159'749 1'581'589 Total accounts and donations receivable 2'510'155 1'929'894 The World YWCA's exposure to credit risk and foreign currency risk related to other accounts receivable is disclosed in note 15. NOTE 7 - LEASEHOLD IMPROVEMENTS The leasehold improvements (renovation costs) for the headquarters are being depreciated over the lease period and are recorded in the financial statements, at December 31, as follows: December 31, 2014 December 31, 2013 Total leasehold improvements Less: accumulated depreciation ( ) ( ) Balance in leasehold improvements - end of year Depreciation expenses are included in the caption administrative costs : Depreciation expense 23'213 23'213 NOTE 8 - DONATIONS RECEIVED IN ADVANCE The World YWCA celebrated its centenary year in Donations were received in advance for work in its second century. The intent of the donors in giving these donations was first to assist in financing the expenses of the renovations of the headquarters (which is being leased for 25 years) and thereafter to increase the Endowment Fund. Therefore, the World YWCA has made a commitment to pay an equivalent amount of the donations to the Endowment Fund over 25 years by transferring funds annually from core programme to Endowment Fund. 12

13 These donations in advance for the renovations of the headquarters have been recorded as follows: December 31, 2014 December 31, 2013 Donations received in advance Amount recognised as income previous years ( ) ( ) Amount recognised as income current year (12 477) (12 477) Donations received in advance - end of year Short term portion Long term portion Total donations received in advance

14 NOTE 9 - SPECIFIC PROGRAMMES Dec. 31, 2014 Total Income Total Expenses Result of Programs Advocacy CSW (97 052) 177 Advocacy (4 626) 200 AU Summit ( ) (3 630) Beijing +20 Africa (25 341) (6 527) Beijing +20 Asia Pacific (11 339) ( 0) Beijing +20 Europe 501 (1 984) (1 483) Beijing +20 Latin America and Caribbean (8 706) 879 Cecilia Koo Advocacy Institute (97 241) (3 111) ( ) Human Rights Council (50 318) 0 CEDAW (32 079) VAW Campaigne (26 774) ( 107) Advocacy Global Program - PM Total Advocacy ( ) ( ) YW Leadership Asia Pacific ( ) ( 815) EED Project (53 700) ITI / ILI Bogota Colombia ( ) (18 372) YWTP 0 ( 400) ( 400) YWTP/Developing ( ) 0 Leadership Global Program - PM 0 (64 439) (64 439) Total Leadership Training ( ) (82 025) Aids Conference (88 712) ( 864) Arrow Project (30 982) ( 0) HIV SRHR Mobilising Women Leadshp (8 796) ( 127) HIV SRHR Packard Phase (71 891) 0 ITI Arusha ( ) 0 Mobilising Faith Based Communities - NORAD (36 202) (9 304) SRHR & HIV Global Program - PM 0 ( ) ( ) Total SRHR & HIV/AIDS ( ) ( ) Finland Project (92 975) ( 0) UNSCR 1325 Project (54 166) (8 660) South Sudan ( ) (3 868) VAW Global Program - PM 0 (73 313) (73 313) Total VAW, Peace and Justice ( ) (85 841) Training French Speaking Africa Organisational Effectiveness (37 120) 0 New Associatioins (7 890) 10 Movement Building Global Program - PM 0 ( ) ( ) Total Movement Building ( ) ( ) World Council (14 740) (6 306) World Council Global Program - PM 0 (95 179) (95 179) Total World Council ( ) ( ) Power to Change ( ) International Building Fund (2 716) (66 826) (69 542) Project Management P2C 0 ( ) ( ) Total Power to Change Global Initiatives ( ) ( ) Other Total ( ) ( ) 14

15 NOTE 10 FUND BALANCES AND RESERVES Endowment Fund Other Reserves Specific Programme Funds Leadership Permanent Funds International Building Fund J & U Porter Fund - Capital TOTAL transfer of 2014 results Opening balance unrestricted Op. result ( ) ( ) - - ( ) - - ( ) restricted Op. Result ( ) ( ) - ( ) ( ) Financial result - Core Financial result - restricted Interest and dividend income Disposal of available-for- sale (losses)/gains Realised Foreign exch (losses) / gains (60 607) (59 450) (1 156) - (60 606) Unrealised Foreign exch (losses) / gains (2 639) restricted financial result (2 439) surplus for the year ( ) ( ) - ( ) (2 439) ( ) OCI impact pension (64 087) - (64 087) (64 087) Unrealized G/L investment price transfer pension OCI impact from Endowment to Other reserve ( ) other ( 110) ( 110) Dec 31, 2014 ( )

16 NOTE 11 - CONTRIBUTIONS Contributions were received from the following donors along with membership affiliation fees and other income: Action Aid 7'568 13'801 ARROW Project 14'454 9'470 Department of Foreign Affairs and Trade - AusAid 226' '813 Christian Aid - Great Britain (1) 15'012 28'950 Bread for the World 277' '282 FINLAND 119'999 Horyzon Switzerland (YWCA/YMCA Switzerland) 130' '000 ICCO -Interchurches Organisation for Development - Netherlands (2) 167' '375 IPAS 13'732 Member YWCAs 102' '191 Nike Foundation - 64'035 Norwegian Church Aid - Norway 65'072 52'495 NORAD 323' '199 The David and Lucile Packard Foundation - USA 382' '101 Robert CARR 40'623 - Rutgers 4'755 - UNDP 91'673 - UN Women - 100'998 United Methodist Women 9'585 - United Methodist Committee on Relief 25'701 - Urgent Action Africa - 8'989 Y Global - Norway 257'388 81'596 World Day of Prayer - Germany 48'848 49'120 WHO - 35'000 Other individuals and Legacies 66' '566 Miscellaneous Donations (3) 29'011 2'248 Donations New Headquarters 12'477 12'477 Membership Affiliation Fees 594' Other income 49' Total contributions as per Statement of Comprehensive Income 3'075' (1) Christian Aid grants are allocated to Restricted for 7, and Unrestricted for 7,853 (2) ICCO grant is purely Unrestricted (3) Remaining donations after allocations to per donor 16

17 NOTE 12 PERSONNEL COSTS, INCLUDING EMPLOYEE BENEFITS December 31, December 31, Wages and Salaries 1'617'638 1'479'888 Social security costs 216' '568 Pension costs defined benefit plan 177' '494 Pension payments to former staff * 17'548 19'139 Total personnel costs 2'029'177 1'884'089 * Included in "personnel costs" are pension payments to former staff following a World Executive Committee decision in 1963 to supplement the original pensions of these persons until their death. These pension payments are recorded when made as a period expense. Number of full time equivalent staff (all located in Switzerland): Full time equivalent Employee Benefits For all staff, in addition to their salaries, the organisation also contributes to a pension plan on a ratio of approximately 60% employer and 40% employee. The assets of the plan are held separately from the World YWCA in a collective Foundation Patrimonia, Geneva. For the purpose of IAS 19 accounting, this plan has been evaluated as a defined benefit scheme, using the projected unit credit method. The plan assets were invested as follows: December 2014 % Expected Return December 2013 % Expected Return Category: Other 100% 2% 100% 2% 17

18 Employees Benefits (continued) The net liability in the Statement of Financial Position is reconciled with the defined benefit obligation as follows: December 31, December 31, Present value of funded defined benefit obligation Fair value of plan assets ( ) ( ) (Surplus) / deficit Amount not recognised due to asset limit 0 0 Unrecognised actuarial gain / (loss) 0 0 Net liability Amounts recognised as pension expense are as follows: December 31, December 31, Service cost Net interest on the Defined Benefit Liability/(Asset) Immediate recognition of gain/loss 0 0 Administration expenses Total pension expense Amounts recognised in Statement of Comprehensive Income in respect of the defined benefit plan are as follows: December 31, December 31, DBO gain/loss due to changes in demographic assumptions 0 0 DBO gain/loss due to changes in financial assumptions 0 ( ) DBO gain/loss due to experience (12 569) Return on plan assets excluding amount included in interest income ( ) (12 597) Total remeasurements recognised in Other Comprehensive (Income)/Loss (86 122) 18

19 Employees Benefits (continued) The movement during the period in the net liability is as follows: December 31, December 31, Net (Asset) / Liability recognised, beginning of year Total (charge)/credit recognised in profit and loss Total remeasurements recognised in Other Comprehensive Income/(loss) (86 122) Employer contributions ( ) ( ) Net (Asset ) / Liability recognised end of the year The opening and closing balances of the defined benefit obligation may be reconciled as follows: December 31, December 31, Present value of defined benefit obligation beginning of year Service cost (employer only) Interest cost Contributions by plan participants Benefits paid ( ) (Gain)/Loss due to Experience ( ) (12 597) (Gain)/Loss due to Demographic Assumption Changes - ( ) (Gain)/Loss due to Financial Assumption Changes (12 569) Present value of defined benefit obligation - end of year

20 Employees Benefits (continued) The opening and closing balances of the fair value of plan assets may be reconciled as follows: December 31, December 31, Fair Value of Plan Assets, Beginning of Year 1'620'088 1'349'387 Employer Contributions 141' '974 Employee Contributions 94'805 89'047 Net Benefits paid (802'790) 72'115 Actual administration Expenses Paid (6'597) (6'214) Interest income on plan assets 38'356 28'198 Return on plan assets excluding amounts included in interest income (49'676) (45'419) Fair value of plan assets - end of year 1'035'734 1'620'088 Key assumptions used: December 31, December 31, Future interest credited to members' accounts 1.10% 2.30% Discount rate 1.10% 2.30% Expected return on plan assets * 1.10% 2.30% Future salary increases 1% 1% Mortality rate LPP/BVG 2010 (generational) LPP/BVG 2010 (generational) * The expected return on plan assets is calculated as weighted average by target allocation of estimated return for each category of assets. The summary below shows the calculation of the IAS 19 (R) preliminary operating expenditure charge/(credit) for year ended 31 December 2015, based on a discount rate of 1.10% Impacts of past service costs / (Credits), settlements, or termination benefit during year ending December 31, 2015 are not included. The final operating expenditure charge for 2015 may, therefore be different from the amount shown below. The following table shows the composition of the Profit and loss Charge / (Credit) and the Calculation of Net Service Cost for 2015: 2015 Service cost 232'955 Net interest on the Net Defined Benefit Liability 4'491 Administration expenses 8'373 Total charge / (Credit) recognised in Profit and Loss 245'819 Normal cost Interest on normal cost Expected employee Contributions ( ) Net Current Service Cost The weighted average duration of the DBO at the end of the current financial year is 17 years. 20

21 NOTE 13 - CORE ADMINISTRATION COSTS December 31 December 31 Headquarter expenses 13'494 47'637 Depreciation expense for leasehold improvements (Note 7) 23'213 23'213 Board meetings & Envisioning Roundtable - - Audit and professional fees 94'527 75'317 Travel expense 34'578 30'139 Communications 70'703 32'378 Bank charges 114' '923 Membership fees 6'728 - Personnel costs (1) 470'284 - Office supplies and utilities 68'578 83'447 Other Administrative expenses 52'958 76'615 Total administrative cost 949' '669 (1) The core administration cost in 2013 had been classified in Specific programs for 323,108. NOTE 14 FOREIGN CURRENCY EXCHANGE The net gain / (loss) on foreign currency exchange as at December 31 includes the following: December 31, 2014 December 31, 2013 FX Net realised gain / (loss) (52 555) ( ) FX Unrealised gain / (loss) (10 321) Total net gain / (loss) on foreign currency ( ) NOTE 15 FINANCIAL INSTRUMENTS Financial instruments carried on the Statement of Financial Position include cash and cash equivalents, availablefor-sale financial assets, accounts receivable and payable, other current and non current assets and liabilities. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item. (A) Foreign Currency Risk Exposure to fluctuations in foreign currency exchange rates arises from the available-for-sale financial assets and the transactions denominated in currencies other than the World YWCA's functional currency, which is the Swiss Franc. As a result of the foreign currency exposure, exchange rate fluctuations can have a significant impact on the Statement of Comprehensive Income. The World YWCA may also incur foreign currency risk on pledged contributions that are denominated in a currency other than Swiss Francs. The currencies giving rise to this risk are primarily the Euro and the US Dollar. 21

22 The International Building Fund and a portion of the Leadership Permanent Fund are both denominated in US Dollars. The foreign currency risks on these funds are managed through corresponding available-for-sale securities held in US Dollars. All other funds are denominated in Swiss Francs. With respect to other monetary assets and liabilities held in currencies other than Swiss Francs, the World YWCA ensures that the net exposure is kept to an acceptable level, buying or selling foreign currencies at spot rates where necessary to address short-term needs. (A) Foreign Currency Risk (continued) The overall exposure to foreign currency risk was as follows based on carrying values and expressed in thousands of : USD AUD EUR USD AUD EUR Cash and cash equivalents Available-for-sale ' Withholding tax receivable (1) Net Exposure ' (1) The withholding tax receivable in 2014 are in currency For the main currencies involved, the following rates against the Swiss Franc were applied at December 31, 2014 and December 31, 2013: December 31 December 31 USD 1 = EUR 1 = AUD 1 = For the cash held with Pictet, Lombard Odier and JP Morgan, the cash was revalued according to each bank s exchange rate at the end of the year. Similarly to the investment portfolio. Sensitivity Analysis A 10 percent strengthening of the US Dollar and Euro against the Swiss Franc at December 31 would have increased the value of the fund balance and reserves and increased total comprehensive income by the amounts shown below. This analysis assumes that all other variables would have remained constant. A 10 percent weakening would have had an equal but opposite effect. December 31, 2014 December 31, 2013 Effect of a 10 percent strengthening of the: K K USD EUR AUD

23 (B) Market Risk The investment portfolio is comprised of: December 31, 2014 December 31, 2013 Bonds 39% 39% Shares and Portfolio investments 58% 60% US Treasury notes 0% 0% Other short term investments (1) 3% 1% Total 100% 100% (1) Including Swaps as detailed below: Quantity Market Value in Forex Swaps EUR/, Forex Swaps EUR/, EUR ( ) ( ) Forex Swaps EUR/, Forex Swaps EUR/, EUR ( ) ( ) Forex Swaps USD/, Forex Swaps USD/, USD ( ) ( ) Forex Forwards USD/, USD Forex Forwards USD/, ( ) ( ) The portfolio is exposed to fluctuations in market price. The World YWCA marks its Available-for-sale securities to market at the end of each accounting year. The unrealised gains and losses resulting from changes in market price are recorded in the Available-for-sale Securities Reserves in Other Comprehensive Income (note 10) until disposed of, unless the securities show objective evidence of impairment. The World YWCA mitigates market risk on the portfolio by ensuring that the Available-for-sale financial securities held are listed on major United States and European stock exchanges, that the bonds, notes and equivalents have been issued by high quality debtors, and that the portfolio s investments are diversified. Sensitivity Analysis All the World YWCA's Available-for-sale securities are listed on the Swiss Market Index, the New York Stock Exchange or European stock exchanges. A two percent increase in the underlying stock indices would have resulted in approximately an additional 175,943 in the fund balance and reserves and increase total comprehensive income in the December 2014 financial year and an additional 152,454 in December An equal change in the opposite direction would have resulted in an equal but opposite effect. (C) Credit Risk The World YWCA has no significant concentrations of credit risk. Cash and cash equivalents and available-for-sale securities are placed with credit worthy financial institutions. The accounts receivable are mainly affiliation fees due from member associations. Analysis has shown that member associations rarely default on these payments. (D) Liquidity Risk 23

24 Liquidity risk is the risk that the World YWCA will not be able to meet its financial obligations as they fall due. The World YWCA's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due under both normal and stressed conditions. Timing of donor contributions has a direct impact on liquidity risk. (D) Liquidity Risk (continued) The World YWCA's objective is to strike a balance between continuity of funding and flexibility by maintaining sufficient funds as cash in hand or short-term investments with maturities of three months or less to meet shortterm liabilities. The following are the contractual maturities of financial liabilities expressed in thousands of : December 31, 2014 Accounts payable and accrued liabilities Short term Long term Carrying 6 months More than amount * or less months years years 5 years Pension liability ** Amounts held on behalf of member associations (1) Donation received in advance Deferred Income (2) 2' ' Total liabilities 4' (1) these funds are available and should be distributed when the financed operations of the member associations are finalized (1) including 164,680 of Oenlager fund, availabe for the member associations. (2) Long term are mainly Finland for 446,960 and Packard for 70,000 (2 )Short term - 6 months or less includes EED 5,301, YGlobal 10,386, Plan 24,054, and Christian Aid 19,927. December 31, 2013 Accounts payable and accrued liabilities Short term Long term Carrying 6 months More than amount * or less months years years 5 years Pension liability ** Amounts held on behalf of member associations Donation received in advance Deferred Income 2' ' Total liabilities 3' '360 1'

25 NOTE 16 DEFERRED INCOME Deferred income represents signed donor commitments for future period as of the balance sheet date and it is presented in current and non-current portion in the statement of Financial Position. Deferred revenue is composed of: December 31, 2014 December 31, 2013 Action Aid Arrow Project - 8'906 AUSAID - Australia 33' '158 EED - Church Development Service - Germany 299' '881 Horyzon - Switzerland (YWCA-YMCA of Switzerland) - 130'000 NORAD 490' '178 The David and Lucile Packard Foundation 561' '505 UN Women 0 81'171 Yglobal - 58'629 Y global - South Sudan '386 - Finland 36'300 UMW 28'953 Robert Carr 54'695 Plan International 36'000 Finland 895'859 Christian AID 19'927 Total 2'467'010 2'456'428 Current portion 1'950'050 1'487'704 Non - current portion 516' '723 Total 2'467'010 2'456'426 NOTE 17 LEASES (A) Office Lease The World YWCA has a free office lease from the Republic and Canton of Geneva for a period of 25 years, with the possibility of renewal in December 2020 at which stage management would negotiate the future terms and possible rental fee. The conditions and restrictions of the lease are as follows: Renovate the house into offices Insure the building Maintain the building Do not sublet any space in the building 25

26 NOTE 18 RELATED PARTIES Under International Financial Reporting Standards, related parties relationships are those where one party controls or exercises significant influence over another in making financial and operating decisions. The World YWCA has a related party relationship with its Board members and key management personnel. Board members serve on a voluntary basis and receive no remuneration. They are compensated for travel and accommodation and incidental expenses for participation in Board meetings Board expenses & organisation of meetings also includes the Envisioning Roundtable that certain board members participated. Board expenses and organisation of meeting total expenses were 103,526 for 2014, 54,548 in NOTE 19 Taxes The World YWCA is exempt from taxes in Switzerland and is a 501 (c) (3) charity for US tax purposes. NOTE 20 SUBSEQUENT EVENTS No events occurred subsequent to December 31, 2014 and prior to the publication of the financial statements that would require modification of or disclosure in the financial statements. 26