CAF Financial Report 2015 MEXICO CITY, 11 MAY 2016

Transcription

1 38th CAF Congress MEXICO CITY, 11 MAY

2 Equatorial Guinea / Burkina Faso Orange CAN 2015 Côte d Ivoire - Winner Africa Cup of Nations

3 Foreword Contents Page CAF President 5 Chairman of the Finance Committee 6 Chairman of the Audit Committee 7 Auditor s Report 8-9 Financial statements Statement of Financial position 10 Income statement 11 Statement of changes in equity 12 Cash Flow Statement 13 Notes to the financial statements Accounting policies A. General information and statement of compliance 15 B. Basis of presentation 15 C. Functional and presentation currencies 15 D. Foreign currency translation 16 E. Property and equipment 16 F. Work in progress 16 G. Intangible assets H. Revenue recognition 17 I. Impairment 17 J. Capital grants 17 K. Executive Committee members benefit obligations 17 L. End of service bonus 17 M. Comparative figures 17 N. Value-in-kind 17 Notes to statement of financial position 1. Property and equipment Work in progress Intangible assets Cash and cash equivalent Receivables and prepayments Pension obligations Development subventions FIFA FAP Payables, accruals and deferred income 20 Notes to the income statement 10. Contribution from competitions Other revenues Administration Annual and other meetings Development Other expenses Financial (Expenses) / Income 23 Other disclosures A. Media and publicity contracts 24 B. Financial instruments and risk management C. Capital commitments 25 D. Statement of Financial Position (Summarized) 26 E. Income statement (Summarized) 26 F. Budget 27 3

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5 Mr. Issa Hayatou CAF president The financial report of the 38th Ordinary General Assembly Meeting of CAF is within the premise of what was already announced during the last General Assembly by the Chairman of CAF s Finance Committee. Namely, crossing a symbolic threshold of our equity and thus confirming an upsurge and a financial stability. A result of the mastery of the organisation of our competitions, their development, the professionalism of our administration, and the commitment of all the stakeholders of football on our continent. All of which contribute to our credibility and which have allowed us, despite an unfavourable environment due to the turmoil we have been observing in football in particular and sports in general for about a year now, to renew the different marketing contracts of our competitions for the cycle that opens in Our competitions therefore have to witness a substantial financial afflux. We therefore have reasons to be optimistic as concerns the application of clubs licences, the implementation of our financial aid programmes vis-a-vis CAF s member associations, and as well as training programmes for referees, coaches, administrators, and even media officers henceforth. This current financial report is consistent with practices in the domain, for it was written and reviewed in accordance to the laws in force and in conformity to international reference standards. It is an opportunity to thank the members of the Finance Committee, those of the Internal Audit Committee, as well as the staff of CAF for selflessly carrying out the job. ISSA HAYATOU CAF president 5

6 Mr. Suketu Patel Chairman of the Finance Committee It is with great satisfaction for us to present to you another set of unqualified CAF Financials at a time when credibility of world football is under heavy security. We have recorded a $30.6 M over a financial period when CAF has faced unforeseen financial risks, primary from having to seek a new host in matters of weeks for our main revenue generating activity the AFCON. In this context, we can all take great pride in the capacity which we have built up in Africa which allowed us to successfully overcome this huge obstacle. We cannot but show our appreciation for our sponsors who steadfastly stood by CAF during this time for which we are extremely grateful. We have to applaud the fact that CAF has successfully negotiated our long term media and publicity rights over 12 years for a minimum sum of $ 1Bn particularly at a time when world of football was facing a serious crisis of credibility. However, this was only possible because of hard work by all those involved in football in Africa, especially you and your efforts at national level, which has enabled our commercial partners to commit to this amount. For this, we want to thank and assure you that these resources will be put to the maximum benefit of African Football. Suketu Patel Chairman of the Finance Committee 6

7 Mr.MahmoudHammami Chairman of the Audit Committee In our capacity as CAF audit committee, we verified through the auditor the consolidated financial statements of the African Confederation of football for the financial year 1st July 2014 ending 30th June These financial statements include the balance sheet, the income statement, the arrays of changes in equity and cash flows and the accompanying notes. Our statutory mission is to ensure compliance and reliability of the CAF accounts and audit reports of the external auditors. At our meeting held on October 23rd, 2015 in Cairo and attended by the CAF General Secretary, the auditor, the Director of the Finance Department, we reviewed the various CAF financial statements ending June 30th, 2015 and the report of the auditor as well as the audit report. We also reviewed and checked the accounting principles used and the significant estimates made and the overall financial statements presented.thus, we believe that our audit provides a reasonable basis in order to express our opinion In addition; we confirm that we had access to all necessary information for our audit. On this basis, we believe that the statements presented give a true picture of the assets, financial position and results in accordance with International Accounting Standards and CAF statutes. We recommend to the CAF General Assembly, the approval of the consolidated accounts from 1st July 2014, to 30th June Mr.MahmoudHammami, Chairman of the Audit Committee 7

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10 Statement of Financial Position In US$ 000. As at 30 June Note Assets Property and equipment 1 23,770 21,890 Work in progress 2 4,485 7,305 Intangible assets Non-currentassets 28,898 29,619 Cash and cash equivalent 4 97,647 77,243 Receivables and prepayments 5 22,510 9,489 Current assets 120,157 86,732 Total assets 149, ,351 Equity,reserves and liabilities Equity Brought forward 95,866 89,750 Surplus for the year 30,693 6,116 Reserves 126,559 95,866 Pension obligations 6 3,113 2,922 Development Subvention 7 2,957 2,325 Non-current liabilities 6,070 5,247 FIFA FAP 8 1,476 2,491 Payables, Accruals and deferred income 9 14,950 12,747 Current liabilities 16,426 15,238 Total equity, reserves and liabilities 149, ,351 Hicham El Amrani Mohamed EL Sherei Secretary General Finance Director 10

11 Income Statement In US$ 000. Note Revenue from competitions 75,507 43,341 Distributions (41,345) (33,601) Competition expenses (9,368) (3,651) FIFA assistance 8 6,488 1,447 Contribution from competitions 10 31,282 7,536 FIFA assistance 8 5,867 4,680 Royalties 2,875 2,855 Other revenues 11 3,334 1,293 Disposal income 43,358 16,364 Administration 12 (3,088) (2,623) Annual and other meetings 13 (3,438) (2,676) Development 14 (4,180) (5,526) Other expenses 15 (788) (914) Operating result before Financial Items 31,864 4,625 Financial (Expenses) / income 16 (1,171) 1,491 Surplus for the year 30,693 6,116 11

12 Statement of changes in equity In US$ 000. Equity at 1st of July ,750 Operating surplus for the year 6,116 Equity at 1st of July ,866 Operating surplus for the year 30,693 Equityat 30 June ,559 12

13 Cash Flow Statement In US$ 000. Note Surplus for the year 30,693 6,116 Depreciation and amortization 1,147 1,417 Increase in pension obligation Increase in development provision (Increase) Decrease in receivables (13,088) 11,557 Increase (Decrease) in payables, accruals & deferred income 2,203 (9,872) (Decrease) in unexpended FAP (1,015) (565) Net cash flows provided by operating activities 20,763 9,178 (Payments) for Property, equipment and work in progress (228) (1,909) (Payments) for Intangible assets (131) (165) Net cash flows (used in) investing activities (359) (2,074) Net changes in cash and cash equivalents during the year 20,404 7,104 Cash and cash equivalents at the beginning of the year 77,243 70,139 Cash and cash equivalents at the end of the year 4 97,647 77,243 13

14 2015 Charts 14

15 Notes to the financial statements Accounting policies A. General information and statement of compliance The African Football Confederation founded in 1957, with headquarters in Cairo - Egypt, is an international non-governmental organization operating under its own statutes, under auspices of FIFA; The objectives of CAF are to: Improve the game of football in Africa and promote its unifying educational, cultural, ethical and humanitarian values, particularly by implementing youth and development programs; Organize its own continental and international competitions; Draw up regulations and provisions related to its activities and ensure their implementation; Control all forms of football and, by taking any necessary or appropriate measures, to prevent infringements of the FIFA and CAF Statutes, regulations and decisions, as well as the Rules of the Game; Prevent practices which may jeopardize the integrity of the game or its competitions, or give rise to the abuse of football; Maintain relations with FIFA, the other continental football confederations and zonal unions; Promote football free of discrimination against any country, person or group of persons for ethnic, gender, language, religious, political or any other reasons; Encourage all national associations and public authorities to do their utmost to secure the professional and social future of footballers; Fight against doping and take measures to combat the use of prohibited substances in order to protect the health of footballers; Promote friendly relations between national associations, zonal unions, clubs, officials and players; Adhere to the fundamental principles of the Olympic Movement and engage itself in the: Promotion of peace, solidarity and unity in African sport; Support of the actions of the African Union and non-governmental organizations related to youth, sport and culture; Support of the United Nations System in its fight against the scourges which ravage the continent and threaten humanity; B. Basis of presentation The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), Statutes of the Confederation and under historical cost convention. C. Functional and presentation currencies The functional currencies of the Confederation are US dollars and Egyptian pounds, with the financial statements being reported in US dollars. 15

16 D. Foreign currency translation ransactions denominated in foreign currencies during the fiscal period are converted at rates applicable as at the transaction date. Monetary assets and liabilities denominated in foreign currencies on the statement of financial position date are converted at the foreign exchange rate ruling on that date. Foreign exchange differences arising from conversion are recognized in the income statement. Foreign exchange gains and losses that relate to cash and cash equivalents are presented in the income statement within finance income or (expenses). All other exchange gains and losses are presented in the income statement within other gain and losses. Currency against USD $ % % % Euro % % % LE % % % SF % % % E. Property and equipment Property and equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner indicated by the management. CAF adds to the carrying amount of an item of property and equipment the cost of replacing parts of such an item when cost is incurred if the replacement part is expected to provide future benefits to the Confederation. The carrying amount of the replaced part is derecognized. All repairs and maintenance are charged to profit or loss during the period in which they are incurred. Land is not depreciated. Depreciation on other assets charged so as to allocate the cost of assets less their residual value over their estimated useful lives. The estimated useful lives range as follows: Buildings Furniture and fittings Vehicles Office equipment 40 years 5-10 years 5 years 5 years The assets residual values and depreciation methods are reviewed, and adjusted prospectively, if there is an indication or a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within «other gains/ (losses)-net in the income statement. F. Work in progress Costs relating to purchase and construction of fixed assets which cover more than one accounting period are recorded as work in progress. When the asset is completed and is ready for its intended use, it is reclassified as property and equipment. G. Intangible assets Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. 16

17 An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition is measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is de-recognised. The estimated useful lives range as follows: Software 5 years H. Revenue recognition Grants, broadcasting rights and publicity are recognized as income when there is reasonable assurance that these will be received and the Confederation will comply with the applicable conditions. Grants, and revenue from broadcasting rights and publicity (reported net of agency commissions) are matched on a systematic basis with related costs which these are intended to compensate, and are recognized in the income statement as follows: - Receipts for specific competitions, the accounting period in which the competition takes place. - Competitions which cover more than one accounting period, pro-rata in relation to phase of a completion. - Interest income is recognized as it accrues (taking into account the effective yield of the assets) unless the collectability is in doubt. I. Impairment The carrying amounts of financial CAF s assets are reviewed periodically to determine whether there is any indication of impairment. If any such indication exits, the asset s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an assets or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognized in the income statement. J. Capital grants Grants of capital nature are carried forward as deferred revenue, and matched with amortization of asset for which the grant was received. K. Executive Committee members pension obligations In order to comply with IAS 19, the confederation has provided for its pension obligations in full. L. End of service bonus Based on length of service, employees are compensated upon retirement or resignation for continuous service from date of their employment. The financial statements include the liability accrued to the employees in full. M. Comparative figures Due to the nature and timing of sporting events and competitions organized by the Confederation, some events are repeated annually and others bi-annually, thus the comparability for competitions revenues and expenses may vary significantly between financial years. When necessary, to afford proper comparison, comparatives are restated. N. Value-in-Kind CAF receives value-in-kind revenue from its commercial affiliates. This value-in-kind revenue consists of pre-determined services and delivery of goods to be used in all CAF development programs, tournament and other CAF events. The monetary value for these benefits is not included in these financial statements. These financial statements are published in English & French. If there is any divergence in the wording, the English original text is authoritative. 17

18 Notes to statement of financial position 1 - Property and equipment In US$ 000. Land Freehold Buildings Furniture& Fittings Equipment Vehicles Total Cost At 1 July ,472 3,841 1, ,383 Additions 13 2, ,881 At 30 June ,741 4,163 1, ,264 Depreciation At 1 July ,192 3,617 1, ,493 Current period ,001 At 30 June ,891 3,703 1, ,494 Carrying amount At 30 June , ,770 At 30 June , ,890 Net book value as at 30 June 2015 Egypt 730 5, ,057 Cameroon 18 11, ,533 Senegal 60 4, ,180 TOTAL , ,770 CAF has use of Land for its Academy in Ethiopia for a period of 90 years commencing 23 October No monitory value for this land had been included in property and equipment. 18

19 2 -Work in Progress In US$ Ethiopia 4,403 4,403 Cameroon - 2,821 Egypt Total work in Progress 4,485 7, Intangible assets In US$ Cost Opening balance Addition Cost at 30 June Accumulated Amortization Opening balance 46 - Amortization for the year Accumulated Amortizationat 30 June Net book value at 30 June The intangible assets represent the accounting software and CAF website. 4 - Cash and cash equivalent In US$ Current accounts 14,851 17,832 Deposits 82,796 59,411 Total cash and cash equivalent 97,647 77, Receivables and prepayments In US$ Media rights 17,939 3,382 Accrued interest Due from member associations Prepaid shares of competitions 2,400 2,400 Due from FIFA Staff loans Other Total cash and cash equivalent 22,510 9,489 19

20 6 - Pension obligations In US$ Balance as at 1 July 2,922 2,727 Provision for the year Paid during the year (60) (46) Total pension obligations 3,113 2,922 Under a retirement plan Executive Committee members receive a pension if they have served as a member of the committee in excess of eight years. Pensions are to be paid for up to a maximum of the number of years that the members served on the committee. Members have an option to choose a yearly payment or accept a lump sum equivalent to the total liability discounted at 5% at its net present value. 7 - Development subventions In US$ Balance as at 1 July 2,325 2,041 Provisions for the year 1,625 1,625 Subvention to national associations in the year (993) (1,175) Other subvention - (166) Total development subvention 2,957 2, FIFA FAP In US$ Opening balance unexpended FAP 2,491 3,056 Received in Period 11,340 5,562 Expended in Period (toward competitions) (6,488) (1,447) Expended in Period (toward Other expenses ) (5,867) (4,680) Total FIFA FAP 1,476 2, Payables, accruals and deferred income In US$ Payables Shares to clubs & national association 3,781 4,523 Shares to host countries 4,742-8,523 4,523 Deferred income TV & publicity- CL 1,800 3,600 TV & publicity-cc 600 1,500 Royalties 1,383 1,513 3,783 6,613 Others Uplink & Broadcasting fees due to Lagardère 1, Due to contractors Accrued expenses 1, ,644 1,611 Total accruals and deferred income 14,950 12,747 20

21 Notes to the income statement 10 - Contribution from competitions In US$ ' CAN CHAN Clubs Youth & women World Cup Other Net contract revenues 37, ,468 2, ,789 Centralization revenue qualifiers 18, ,140 Unallocated direct revenues Prize monies (10,000) - (8,190) (655) - - (18,845) Host associations (7,100) - - (240) - - (7,340) Re - Distribution of centralization (15,160) (15,160) Direct expenses (6,549) (221) (455) (1,966) - (177) (9,368) FIFA assistance 3, , ,488 Contribution to income 21, , (36) 31,282 Total 2014 CAN CHAN Clubs Youth & women World Cup Other Net contract revenues 171 8,450 13, ,870 Centralization revenue qualifiers ,000-21,000 Unallocated direct revenues Prize monies - (3,720) (8,190) (11,910) Host associations - (1,691) (1,691) Re - Distribution of centralization (20,000) - (20,000) Direct expenses (57) (2,150) (672) (61) (550) (161) (3,651) FIFA assistance ,447 Contribution to income 211 1,811 5, (142) 7,536 Total 11 - Other revenues In US$ CAF share from other competitions Sanction for breach of media rights 2,475 - Fines, Protests and Appeals Annual subscription CAF Awards Other sundries Total other revenues 3,334 1,293 21

22 12 - Administration In US$ Salaries 1,313 1,141 Pensions & other benefits Insurance Consultancy General maintenance Bank charges Utilities Printing and stationery Audit Communication Transportation Building insurance 13 8 Publications and internet Depreciation and amortization Other Total administration 3,088 2, Annual and other meetings In US$ Annual meetings 2,000 2,081 General Assembly 1, Visits to federations International relations Total annual and other meetings 3,438 2, Development In US$ Subvention for education officers Technical courses 1,693 2,009 Administrative subvention to zonal unions Provision for development subvention 1,625 1,625 3,815 4,135 Centers of Excellence Salaries and Operating expenses Depreciation 568 1,050 Centers of excellence revenues (681) (391) 365 1,391 Total development 4,180 5,526 22

23 15 - Other expenses In US$ President office Executive pension right CAF Awards Medals, cups, flags, gifts and souvenirs Web-site & IT Sundries Total other expenses Financial (Expenses) / income In US$ Interest income from cash and cash equivalents 2,274 1,704 Foreign currency (Losses) (3,445) (213) Net financial (Expenses) / income (1,171) 1,491 23

24 Otherdisclosures A) Media and publicity contracts CAF is the proprietor of all media and publicity rights of its competitions and to assist in their commercialization, CAF has engaged a marketing agent, who for this exclusivity has provided the following future minimum guarantees to CAF. Minimum guarantees (in US$ 000) Competition Period Within 1 year Within 2 to 5 years Within 5 to 9 years Within 9 to 13 years Total CAN , , , ,000 CANQUALIFERS ,000 40,000 50, ,000 CHAN ,000 29,000 34,000 43, ,500 CL ,200 72,000 80, , ,200 CC ,000 32,000 36,000 45, ,000 SUPER CUP ,000 4,000 4,000 12,000 U ,000 4,000 5,000 12,000 U ,000 6,000 7,500 17,500 U ,055 WOMEN ,250 FUTSAL Beach Soccer Other amounts from CAF partners (in Euro 000) In Cash , ,625 Value in kind , ,750 CAF revenues are subject to distribution to member associations in accordance with rules of the competitions. VIK was utilized for National teams competitions, for Courses & Inter-clubs competitions. B) Financial instruments and risk management I. Fair Value for Financial Instruments CAF s financial instruments are represented in financial assets and financial liabilities. The financial assets include Cash and cash equivalent and Receivables. The financial liabilities include Payables, FIFA FAP and Accrued expenses and deferred income. According to the basis for the evaluation of assets and liabilities, included in the notes to the financial statements, the fair value of the financial instruments does not differ significantly from its book value as at the balance sheet date. II. Credit Risk The credit risk represents the ability of member associations to pay their debt the credit risk is considered minimal since CAF is offsetting these balances from the balances due to member associations related to their participant on CAF competitions. 24

25 III. Foreign Currency Risk The foreign currency risk is basically represented in the risk of fluctuations in exchange rates which affects cash proceeds & disbursements in foreign currencies as well as the valuation of assets and liabilities in foreign currencies. IV. Operational Risk Financial Financial Currencyheld in 000: Assets Liabilities USD 79,167 22,076 L.E. 26, Euro 11, SF CFA 2,341 - Total 120,157 22,496 Minimum guarantees in note (A) are linked to CAF s ability to provide a predetermined quality of TV feed.failure to meet this requirement can result in reduction of the minimum guarantees.caf minimize this risk by engaging a reputable television producer. C) - Capital commitments Capital commitments at June 2015 comprise of :- - Executive Committee has approved to creat CAF TV Studio at an expected cost of 1.7 Million dollars - The Ethiopian Center of Excellence will be further upgraded to a high altitude training center with additional pitches, accomodation and other facilities at a cost of 4 Million Dollars. 25

26 D) Statement of Financial Position (Summarized) In US$ 000. As at 30 June Assets Non-current assets 28,898 29,619 28,868 25,763 26,088 Current assets 120,157 86,732 91,185 78,039 51,765 Total assets 149, , , ,802 77,853 Equity,reserves and liabilities Equity and Reserves 126,559 95,866 89,750 73,228 55,900 Non-current liabilities 6,070 5,247 5,043 4,231 3,700 Current liabilities 16,426 15,238 25,260 26,343 18,253 Total equity, reserves and liabilities 149, , , ,802 77,853 E) Income statement (Summarized) In US$ Revenue from competitions 75,507 43,341 51,646 55,637 24,009 Distributions (41,345) (33,601) (30,084) (33,285) (14,217) Competition expenses (9,368) (3,651) (4,722) (3,733) (2,918) Contribution from competitions 24,794 6,089 16,840 18,619 6,874 FIFA assistance 12,355 6,127 7,593 5,802 3,974 Royalties 2,875 2,855 2,456 2,549 1,928 Other revenues 3,334 1,293 1,721 1,662 1,824 Disposal income 43,358 16,364 28,610 28,632 14,600 Total Operating Expenses (11,494) (11,739) (11,906) (10,186) (9,509) Operating result before Financial Items 31,864 4,625 16,704 18,446 5,091 Financial (Expenses) / income (1,171) 1,491 (182) (112) 697 Surplus for the year 30,693 6,116 16,522 18,334 5,788 26

27 F) Budget for the year 2015/2016/2017 Income & Expenditure Account Revenue from competitions Actual Budget Variance BUDGET 2014/ / /2017 Revised Proposed 75,507,420 59,120,900 16,386,520 23,860,900 44,807,900 Distributions (41,345,000) (36,525,000) (4,820,000) (14,935,000) (15,225,000) Competition expenses (9,367,771) (5,450,000) (3,917,771) (3,560,000) (3,860,000) Contribution from competitions 24,794,649 17,145,900 7,648,749 5,365,900 25,722,900 FIFA assistance 12,355,452 8,000,000 4,355,452 10,000,000 5,500,000 Royalties 2,875,413 3,200,000 (324,587) 3,200,000 1,625,000 Other revenues 3,334,331 1,424,600 1,909,731 1,424,600 1,424,600 Disposale income 43,359,845 29,770,500 13,589,345 19,990,500 34,272,500 Administration 3,089,221 2,907, ,221 2,999,000 3,134,000 Annual and other meetings 3,437,999 3,470,000 (32,001) 2,920,000 3,620,000 Development 4,179,651 4,635,841 (456,190) 4,687,741 4,572,741 Otherexpenses 787,707 1,583,430 (795,723) 1,504,294 1,497,499 Operating Expenses 31,865,267 17,174,229 14,691,038 7,879,465 21,448,260 Financial (Expences) / income (1,172,267) 1,500,000 (2,672,267) 300, ,000 Surplus for the year 30,693,000 18,674,229 12,018,771 8,179,465 21,748,260 27

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