STICHTING WATER FOOTPRINT NETWORK AT ENSCHEDE. Report on the financial statements 2014

Transcription

1 STICHTING WATER FOOTPRINT NETWORK AT ENSCHEDE Report on the financial statements 2014

2 INDEX Page DIRECTORS' REPORT 1 Directors' report 3 FINANCIAL STATEMENTS 1 Balance sheet as of December 31, Profit and loss account Statement of cash flows for the year ended December 31, Notes to the financial statements Notes to the balance sheet as at December 31, Notes to the profit and loss account OTHER INFORMATION 1 Adjustments when financial statements were prepared in accordance with IFRS 21 2 Independent audit report 22

3 1 DIRECTORS' REPORT Following rapid growth in 2013, the Water Footprint Network continued to grow in Financially, there was a 33% increase in total income over 2013 numbers. The income from projects increased 57% while income from training remained essentially the same over the two years. Partner contributions decreased by 21%. This indicates a growing reliance on project income as the basis for the organization's growth. Personnel expenses increased by 26%, reflecting the addition of new staff to the Water Footprint Network's team. However, in 2013 personnel expenses were 84% of the total income while in 2014 this was reduced to 79%. Operational expenses remained flat over the two years. The end result was a balanced budget while maintaining the operational reserve at a consistent level. The two large projects procured in Building capacity in the apparel sector on reducing and managing the water footprint and Bangladesh Partnership for Cleaner Textile further consolidated our expertise in the textile sector. The former project is a continuation of our strategic partnership with C&A and has focused on the cotton agriculture and wet processing stages of the apparel supply chain. In Bangladesh, the Water Footprint Network has supported a growing understanding of the water footprint of wet processing in buyers and suppliers and used Water Footprint Assessment to build a picture of water use and its impacts in a textile cluster. The detailed Water Footprint Assessment done in collaboration with the UK Environment Agency was concluded in 2014 with strong results for the regulatory agency. The study highlighted the need to consider water uses and management for water quantity and quality, surface and groundwater and demonstrated how Water Footprint Assessment can be used to achieve integrated water resource management. A framework for regulatory reform based on Water Footprint Assessment was proposed for consideration by the agency. Two new staff were hired, a project officer and a project manager, with one staff leaving the Water Footprint Network for a position with the United Nations. Guoping Zhang was promoted to the position of Programme Director following his long employment and professional development in the organization and joined the Senior Management Team. The Water Footprint Network continued to invest in improving its communications through the development of a new website and with more consistent communications through its e-newsletter and other media. The annual Partner Forum was held during Stockholm World Water Week with a lively afternoon of partner project presentations and a dinner. Water Footprint Network staff presented in a large array of regional and international events. Trainings were held in India, China, Chile, Ecuador, Brazil, The Netherlands, Turkey, South Africa and United Arab Emirates in addition to four e-learning courses. Interest in the water footprint continues to grow as water crises are rising as a concern to business and limitation to economic development. As more examples of how Water Footprint Assessment can be used in both the public and private sectors and in supporting multi-stakeholder efforts to reach sustainable water management are completed, there is growing recognition of the value of the water footprint in driving strategic action. The Water Footprint Network is stabilizing as a strong international organization, which is well placed to contribute to the post-2015 development agenda and in reaching the Sustainable Development Goals once they are decided upon in

4 The Board of Directors consists of: R.E. Mathews The Supervisory Council consists of: R.D. Holland J.F. Cramwinckel A.IJ. Hoekstra J.L.G. de Schutter Enschede, May 11, 2015 R.E. Mathews, Managing director -4-

5 FINANCIAL STATEMENTS Balance sheet as per December 31, 2014 Profit & loss account for 2014 Cash flow statement for the year ended 2014 Notes to the Statements Notes to the balance sheet as of December 31, 2014 Notes to the profit & loss account for 2014

6 1 BALANCE SHEET AS OF DECEMBER 31, 2014 December 31, 2014 December 31, 2013 ASSETS FIXED ASSETS Intangible fixed assets (1) Website 58,351 46,696 Tangible fixed assets (2) Equipment 3,945 4,773 CURRENT ASSETS Receivables, prepayments and accrued income (3) Outstanding contributions 29,516 97,578 Other receivables 2,000 14,000 31, ,578 Cash and cash equivalents (4) 312, , , ,641

7 December 31, 2014 December 31, 2013 EQUITY AND LIABILITIES EQUITY (5) Reserves 281, ,232 CURRENT LIABILITIES (6) Accounts payable 2,814 15,605 Taxes and social security charges 13,323 11,166 Accruals and deferred income 108, , , , , ,641-6-

8 2 PROFIT AND LOSS ACCOUNT Nett turnover (7,8) 791, ,800 Expenses Expenditure of income (9) 63,008 99,250 Wages and salaries (10) 415, ,587 Social security charges (11) 54,621 48,461 Other personnel expenses (12) 162,205 76,878 Depreciation of tangible fixed assets (13) 1,650 1,495 Operating expenses (14) 88,692 91, , ,429 Operating result 5,895 (98,629) Financial income and expenses (15) (1,493) (732) Result from general operations 4,402 (99,361) Taxation on ordinary activities 0 0 Result 4,402 (99,361) - 7-

9 3 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014 The cash flow statement has been prepared using the indirect method Cash flow from operating activities Operating result 5,895 (98,629) Adjustments for: Amortisation and depreciation 1,650 1,495 Movement of working capital: Movements in operating accounts receivable 80, ,529 Movement of short-term liabilities (113,354) 187,038 Cash flow from operating activities (25,747) 240,433 Interest paid (1,493) (732) Cash flow from operating activities (27,240) 239,701 Cash flow from investment activities Investments in intangible fixed assets (11,655) (46,696) Investments in tangible fixed assets (822) (3,204) Cash flow from investment activities (12,477) (49,900) (39,717) 189,801 Compilation of cash Cash and cash equivalents as at January 1 Movement of cash and cash equivalents 352, ,793 (39,717) 189,801 Cash and cash equivalents as at December , ,594-8-

10 4 NOTES TO THE FINANCIAL STATEMENTS 2014 Activities Stichting Water Footprint Network undertakes the following activities: 1. developing standards (methods, guidelines, criteria) for water footprint accounting, water footprint impact assessment and the reduction and offsetting of the negative impacts of water footprints; 2. developing practical tools to support people and organizations interested in water footprint accounting, impact assessment and water footprint reduction and offsetting; 3. providing for, or arranging for third parties to provide for, meetings, publications, education, research and development with regard to the water footprint concept; 4. promoting the exchange, communication and dissemination of knowledge about water footprint; 5. supporting government bodies, international institutions, non-governmental organizations, businesses and other organizations in implementing water footprint accounting and developing a sustainable and fair water policy; and 6. providing advice on the application of the water footprint and by checking and certifying the use of the water footprint. GENERAL ACCOUNTING PRINCIPLES FOR THE PREPARATION OF THE ANNUAL ACCOUNTS The financial statements have been prepared in accordance with "Richtlijnen voor de Jaarverslaggeving voor kleine Organisaties-zonder-winststreven". Valuation of assets and liabilities and determination of the result takes place under the historical cost convention. Unless presented otherwise at the relevant principle for the specific balance sheet item, assets and liabilities are presented at face value. Income and expenses are accounted for on accrual basis. Profit is only included when realized on the balance sheet date. Losses originating before the end of the financial year are taken into account if they have become known before preparation of the financial statements. Translation of foreign currency Receivables, liabilities and obligations denominated in foreign currency are translated at the exchange rates prevailing at balance sheet date. Transactions in foreign currency during the financial year are recognised in the financial statements at the exchange rates prevailing at transaction date. The exchange differences resulting from the translation as at balance sheet date, taking into account possible hedge transactions, are recorded in the profit and loss account. - 9-

11 PRINCIPLES OF VALUATION OF ASSETS AND LIABILITIES Intangible fixed assets Intangible fixed assets are presented at cost less accumulated amortisation and, if applicable, less impairments in value. Amortisation is charged as a fixed percentage of cost, as specified in more detail in the notes to the balance sheet. Tangible fixed assets Tangible fixed assets are presented at cost less accumulated depreciation and, if applicable, less impairments in value. Depreciation is based on the estimated useful life and calculated as a fixed percentage of cost, taking into account any residual value. Depreciation is provided from the date an asset comes into use. Receivables Upon initial recognition the receivables are included at fair value and then valued at amortised cost. The fair value and amortised cost equal the face value. Any provision for doubtful accounts deemed necessary is deducted. These provisions are determined by individual assessment of the receivables. PRINCIPLES FOR THE DETERMINATION OF THE RESULT Determination of result The result is determined as the difference between the net turnover and the costs and other expenses taking into account the accounting principles mentioned before. Income and expenses are accounted for on accrual basis. Profit is only included when realized on the balance sheet date. Losses originating before the end of the financial year are taken into account if they have become known before preparation of the financial statements. Nett turnover Net turnover represents amounts invoiced for goods and services rendered during the financial year reported on, net of discounts and value added taxes. Revenues from services are recognised in proportion to the services rendered. The cost price of these services is allocated to the same period. Financial income and expenses Financial income and expenses represents the to the reporting period relating interest income and expenses of issued and received loans. -10-

12 PRINCIPLES FOR PREPARATION OF THE CASH FLOW STATEMENT The cash flow statement is prepared according to the indirect method. The funds in the cash flow statement consist of cash and cash equivalents. Cash equivalents can be considered as highly liquid investments. Cash flows in foreign currencies are translated at an estimated average rate. Exchange rate differences concerning finances are shown separately in the cash flow statement

13 5 NOTES TO THE BALANCE SHEET AS AT DECEMBER 31, 2014 FIXED ASSETS 1. Intangible fixed assets Website Book value as at January 1, 2014 Accumulated cost 46,696 Accumulated amortisation and other impairments in value 0 46,696 Movement Acquisitions 11,655 Amortisation 0 11,655 Book value as at December 31, 2014 Accumulated cost 58,351 Accumulated amortisation and other impairments in value 0 58,351 Amortisation percentage Website

14 2. Tangible fixed assets Equipment Book value as at January 1, 2014 Accumulated cost 7,838 Accumulated depreciation and other impairments in value (3,065) Movement Acquisitions 822 Depreciation (1,650) Book value as at December 31, 2014 Accumulated cost 8,660 Accumulated depreciation and other impairments in value (4,715) Book value as of December 31, ,945 4,773 (828) Depreciation percentage Equipment 20 CURRENT ASSETS 3. Receivables, prepayments and accrued income Included are receivables and accrued assets with a maturity of less than one year. Outstanding contributions 12/31/ /31/2013 Receivables 41, ,578 Doubtful debts (12,000) (15,000) 29,516 97,

15 12/31/ /31/2013 Other receivables Projects 0 12,000 Partner fee 2,000 2,000 2,000 14, Cash and cash equivalents Paypal 11,684 6,215 Triodos bank rendementsrekening 281, ,204 Triodos bank 20, , , ,

16 5. EQUITY Reserves Balance as at January 1 277, ,593 Appropriation of result for the year 4,402 (99,361) Balance as at December , , CURRENT LIABILITIES 12/31/ /31/2013 Taxes and social security charges Payroll taxes 13,323 11,166 Accruals and deferred income Holiday bonus 20,367 15,229 Audit costs 11,500 11,500 Hiring employees 17,542 0 Advanced payments on fee's 400 2,564 Remaining balance R&D fund 1,500 1,500 Projects invoiced in advance 22, ,845 Rent 18,177 0 Travelling expenses 13,059 0 Other 3, , ,

17 6 NOTES TO THE PROFIT AND LOSS ACCOUNT Nett turnover The revenues increased in 2014 compared to 2013 with 33.3 % Nett turnover Partner contributions 131, ,275 E-learning 19,390 6,623 Travel reimbursement 2,416 3,505 Projects 632, ,510 Training fee 28,122 43,293 Donations Credit invoices (22,115) (29,426) 791, , Expenditure of income Project costs 55,613 37,037 Training costs 7,395 12,213 Development grant 0 50,000 63,008 99,250 Wages, salaries and social security charges 10.Wages and salaries Gross wages 327, ,797 Holiday allowance 0 2,929 30% rule 88,262 74, , , Social security charges Social security charges 54,621 48,

18 ther personnel expenses Education allowance and training costs Staff costs University Twente 11,608 14,989 Relocation costs 3,000 3,034 Travel interview costs Consultancy costs 145,105 57,371 Other personnel expenses 1, ,205 76,878 Remuneration of (former) directors and supervisory directors No remuneration of directors and supervisory directors is stated, as the report can be reduced to a single individual. Staff During the financial year 2014, the average number of employees of the group, converted into full-time equivalents, amounted to 7 (2013: 6). Amortisation and depreciation 13.Depreciation of tangible fixed assets Equipment 1,650 1, Operating expenses Meetings and travel costs 27,006 25,410 Accomodation expenses 36,418 35,244 Office expenses 8,244 1,838 Manual costs 0 9,717 General expenses 17,024 19,549 88,692 91,758 Meetings and travel costs Meetings and travel costs 15,625 15,961 Stockholm Water Week 11,381 9,449 27,006 25,

19 Accomodation expenses Rent 36,418 35,244 Office expenses Telephone/computer 3, Postage Contributions 2, Website costs Subscriptions 1, ,244 1,838 Manual costs Manual costs 0 9,717 General expenses Fees audit and other accountancy costs 18,668 18,711 Legal fees 74 0 Insurance Mutation doubtful debts (3,000) 312 Other general expenses 554 (202) 17,024 19,

20 15.Financial income and expenses Other interest income and similar income Payment differences Interest expenses and similar charges Triodos bank costs Paypal costs 0 29 Payment differences 1, , Signing of the financial statements Enschede, May 11, 2015 R.E. Mathews, Managing director

21 OTHER INFORMATION

22 OTHER INFORMATION 1 Adjustments when financial statements were prepared in accordance with IFRS The financial statements have been prepared in accordance with Dutch GAAP ("Richtlijnen voor de jaarverslaggeving voor kleine Organisaties-zonder-winststreven"). If the financial statements were prepared in accordance with IFRS, this would not lead to adjustments in the figures presented in this set of financial statements. Adjustment would have been made to the notes of the financial statements

23 KROESE WEVERS Stichting Water Footprint Network in Enschede To the Supervisory Board of Stichting Water Footprint Network 2 Independent audit report We have audited the accompanying financial statements 2014 of Stichting Water Footprint Network, Enschede, which comprise the balance sheet as at December 31, 2014, the profit and loss account for the year then ended and the notes, comprising a summary of the accounting policies and other explanatory information. Management's responsibility Management is responsible for the preparation and fair presentation of these financial statements and for the preparation of the management board report, both in accordance with "RJ voor kleine organisaties-zonderwinststreven". Furthermore management is responsible for such internal control as it determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about 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 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 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. Basis for qualified opinion The in this financial statements recorded comparable figures are based on the financial statements By these financial statement a disclaimer of opinion is provided given the importance of the following issue: "We have been unable to form an opinion retrospectively about whether the balance sheet as at December 31, 2012, gives a true and fair view of the financial position, which opinion can serve as a basis for the audit of the financial statements for the year If the amounts shown in the balance sheet mentioned were to require adjustment, this would directly affect the results reported for the year Both the composition and the amount of the result for 2013 therefore remain uncertain."

24 KROESE WEVERS Stichting Water Footprint Network in Enschede Qualified opinion with respect to the annual accounts In our opinion, except for the effects of the matter described in the Basis for qualified opinion paragraph, the financial statements give a true and fair view of the financial position of Stichting Water Footprint Network as at December 31, 2014 and of its result for the year then ended in accordance with "RJ voor kleine organisatieszonder-winststreven". Enschede, May 11, 2015 KroeseWevers Audit BV Was signed, E.H.A. Hutten RA