Association of National Olympic Committees Lausanne. Report of the statutory auditor to the General Assembly on the financial statements 2015

Transcription

1 Association of National Olympic Committees Lausanne Report of the statutory auditor to the General Assembly on the financial statements 2015

2 Report of the statutory auditor to the General Meeting of Association of National Olympic Committees Lausanne Report of the statutory auditor on the financial statements As statutory auditor, we have audited the accompanying financial statements of Association of National Olympic Committees, which comprise the statement of financial position, statement of activities, statement of cash flows, statement of changes in fund balance and notes, for the year ended 31 December Executive Council s responsibility The Executive Council is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law and the association s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Executive Council is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. 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 Swiss law and Swiss Auditing Standards. Those standards require that we 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 statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity s preparation 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 system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, 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. Opinion In our opinion, the financial statements for the year ended 31 December 2015 comply with Swiss law and the association s articles of incorporation. Report on other legal requirements We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (article 69b paragraph 3 CC in connection with article 728 CO) and that there are no circumstances incompatible with our independence. PricewaterhouseCoopers SA, avenue C.-F. Ramuz 45, case postale, CH-1001 Lausanne, Switzerland Téléphone: , Téléfax: , PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

3 In accordance with article 69b paragraph 3 CC in connection with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists which has been designed for the preparation of financial statements according to the instructions of the Association s Executive Council. We recommend that the financial statements submitted to you be approved. PricewaterhouseCoopers SA Beresford Caloia Audit expert Auditor in charge Martin Steiner Audit expert Lausanne, 5 April 2016 Enclosure: - Financial statements (statement of financial position, statement of activities, statement of cash flows, statement of changes in fund balance and notes) 2

4 Statement of financial position at December 31, 2015 (expressed in US dollars) Assets Current assets Cash on hand and at banks Bank deposits Prepaid expenses & Other current assets Tangible fixed assets Land and building Les Charmettes Other tangible fixed assets Total assets Liabilities and fund balance Current liabilities Accrued liabilities Fund balance Fund balance Total liabilities and fund balance The accompanying notes are an integral part of these financial statements. 3

5 Statement of activities for the year ended December 31, 2015 (expressed in US dollars) Income Subsidies of the IOC for the activities Subsidies of the IOC for les Charmettes Bank interests Expenditure ANOC Meetings General Assembly Executive Council ANOC Commissions and Working Groups, Seminars International Events International and Continental Meetings International Forums ANOC World Beach Games ANOC Offices Running Expenses Auditors' fees Depreciation on fixed assets Miscellaneous (including bank taxes) Excess income for the year, net Exchange difference ( ) ( ) Net income for the year transferred to fund The accompanying notes are an integral part of these financial statements. 4

6 Statement of cash flows for the year ended December 31, 2015 (expressed in US dollars) Net income for the year Adjustments for : Depreciation (Increase) / Decrease in bank deposits over 3 months ( ) Interest income ( ) ( ) Decrease / (Increase) in prepaid expenses ( ) (Decrease) / Increase in accrued liabilities ( ) Cash (used) for / generated from operations ( ) Cash flow from investing activities Interest received Investment in land and building Les Charmettes - ( ) Purchase of other tangible fixed assets ( ) ( ) Cash used for investing activities ( ) ( ) Net (Decrease) / Increase of 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 financial statements. 5

7 Statement of changes in fund balance December 31, 2015 (expressed in US dollars) Fund Balance Balance as at December 31, Net income for the year ended December 31, Balance as at December 31, Net income for the year ended December 31, Balance as at December 31, The accompanying notes are an integral part of these financial statements. 6

8 NOTES TO THE FINANCIAL STATEMENTS Note 1 - Incorporation and Activity The Association of National Olympic Committees (the Association or ANOC) is an association created by the National Olympic Committees recognized by the International Olympic Committee (IOC). Its principal objectives are to promote the Olympic Movement through the National Olympic Committees (NOC), to enhance cooperation between the different NOCs and to provide them with assistance. The activities of the Association are funded by subsidies received from the IOC. Its headquarters are located in Lausanne, Switzerland. Note 2 - Accounting policies Basis of preparation The ANOC uses the accrual basis of accounting. Foreign currency translation a) Functional and presentation currency The financial statements of the Association are presented in US dollars, which is the Association s functional and presentation currency. b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains or losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of comprehensive income. Non monetary items carried at historical cost denominated in a foreign currency are reported using the historical exchange rate at the date of the transaction. Income and expense recognition Income and expenses are recorded on the accruals basis. Income generated by the Association is based primarily on subsidies received from the IOC. 7

9 NOTES TO THE FINANCIAL STATEMENTS Cash and cash equivalents For purposes of the statements of cash flows, cash and cash equivalent consists of current balances and fixed deposits with maturities of less than three months from the closing date. Fixed assets Buildings, furniture, equipment and information technology systems are stated at cost less accumulated depreciation. Depreciation is calculated on straight-line basis over the estimated life of the assets as follows: Buildings Furniture and equipment Information technology systems 50 years 10 years 5 years Land is stated at cost and is not depreciated. Note 3 - Bank deposits Fiduciary deposits and other bank deposits have been made through major banks in US dollars. At December 31, 2015, the average interest rate was 0.27 % p.a. for bank deposits ( % p.a.). US$ US$ Maturity Up to 3 months Up to 1 year

10 NOTES TO THE FINANCIAL STATEMENTS Note 4 - Tangible fixed assets are composed of the following Land and Furniture Information building les and technology Sub total Total Charmettes equipment systems US$ US$ US$ US$ US$ Book value at Accumulated depreciation (93 985) ( ) ( ) ( ) ( ) Acquisitions Depreciation 2015 ( ) ( ) ( ) ( ) ( ) Net closing book value At December 31, 2015 Investment costs Accumulated depreciation ( ) ( ) ( ) ( ) ( ) Net book value Note 5 ANOC Offices Running Expenses US$ US$ Salaries and related expenses Administrative expenses Communication charges Publications, Page Web

11 NOTES TO THE FINANCIAL STATEMENTS Note 6 - Taxation The Association is not subject to income taxes as such no tax liability or expenses have been recorded in the accompanying financial statements. 10