Suleyman Kerimov Foundation. Luzern. Report of the statutory auditor to the Foundation Board

Transcription

1 Suleyman Kerimov Foundation Luzern Report of the statutory auditor to the Foundation Board on the financial statements 2016

2 Report of the statutory auditor to the Foundation Board of Suleyman Kerimov Foundation Luzern Report of the statutory auditor on the financial statements As statutory auditor, we have audited the accompanying financial statements of Suleyman Kerimov Foundation, which comprise the balance sheet, income statement, cash flow statement, statement of changes in equity and notes, for the year ended 31 December As permitted by Swiss GAAP FER 21 the information in the performance report is not required to be subject to audit. Foundation Board s responsibility The Foundation Board is responsible for the preparation of the financial statements in accordance with the requirements of Swiss GAAP FER 21, Swiss law and the foundation s deed and internal regulations. 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 Foundation Board 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 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 2016 give a true and fair view of the financial position, the results of operations and the cash flows in accordance with Swiss GAAP FER 21 and comply with Swiss law and the foundation s deed and internal regulations. PricewaterhouseCoopers AG, Werftestrasse 3, Postfach, CH6002 Luzern, Switzerland Telefon: , Telefax: , PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

3 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 83b paragraph 3 CC in connection with article 728 CO) and that there are no circumstances incompatible with our independence. In accordance with article 83b 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 Foundation Board. We recommend that the financial statements submitted to you be approved. PricewaterhouseCoopers AG Thomas Illi Andreas Brun Audit expert Auditor in charge Audit expert Luzern, 7 June 2017 Enclosure: Financial statements (balance sheet, income statement, cash flow statement, statement of changes in equity and notes) 3

4 BALANCE SHEET ASSETS Notes Current assets Cash and marketable securities 4 5'751 2'939 Accounts receivable 5 1'161 3'840 Accrued income '925 6'780 Fixed assets Intangible assets ASSETS 6'926 6'781 LIABILITIES Shortterm liabilities Accounts payable Other liabilities 4 5 Provisions 6 39 Accrued expenses Organisation capital Paidin foundation capital 5'000 5'000 Earned fixed capital Earned free capital 1'900 1'716 6'900 6'716 LIABILITIES 6'926 6'781 The information in the notes is an integral component of the annual financial statements

5 INCOME STATEMENT Notes Income from donations received 7 1'422 33'793 Income from donations 1'422 33'793 Contributions of free donations 8 (920) (32'957) Donation expenses (920) (32'957) Total operating income Personnel expenses 9 (270) (277) Rental expenses (42) (35) Fundraising expenses (1) (1) Other operating expenses (60) (70) Operating expenses (373) (383) Operating result Financial income Financial expenses 10 (5) (261) Financial result 55 (261) Annual result before allocation to organisation capital Allocation to organisation capital (184) (192) Annual result The information in the notes is an integral component of the annual financial statements.

6 Cash flow statement Notes Annual result before fund result (Consumption) / formation of provisions 6 (39) 1 Decrease / (Increase) in agreed donations 5 2'679 (1'118) Decrease / (Increase) of accrued income (12) (Decrease) in other shortterm liabilities and deferred income (6) Cash flow from operating activities 2'812 (931) Cash flow from investment activities Cash flow from financing activities Increase in cash 2'812 (931) Opening balance of cash / '939 3'870 Closing balance of liquid funds / '751 2'939 Change in cash 2'812 (931) The information in the notes is an integral component of the annual financial statements.

7 Statement of changes in equity 1 January 2015 Allocations to free capital (annual result) 31 December 2015 Funds from fund capital borrowed capital n/a Fund capital (restricted funds, borrowed capital) Funds from equity financing Paidin capital 5'000 5'000 Revaluation reserves Earned free capital (accumulated) 1' '716 Organisation capital 6' '716 1 January 2016 Allocations to free capital (annual result) 31 December 2016 Funds from fund capital n/a Fund capital (restricted funds) Funds from equity financing Paidin capital 5'000 5'000 Revaluation reserves Earned free capital (accumulated) 1' '900 Organisation capital 6' '900 The founding capital of CHF 5,000,000 was paid in by the founder of the foundation on The information in the notes is an integral component of the annual financial statements.

8 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 1 General remarks The Suleyman Kerimov Foundation is a foundation within the meaning of article 80 ff. (personified, specialpurpose fund) of the Swiss Civil Code based in Lucerne with the purpose of global charity and nonprofit, in particular through assistance provided to people in need or in distress, assistance to needy and sick people as well as through the education and support of young people, the promotion of the arts and culture, research of every kind and support for mediumsized enterprises of any kind and the promotion of social and sports development projects. 2 Accounting principles The accounts of the Suleyman Kerimov Foundation are in accordance with all the rules and regulations of the Accounting and Reporting Recommendations (Swiss GAAP FER, in particular Swiss GAAP FER 21) and give a true and fair view of the Foundation's assets, financial position and results. The firsttime application of Swiss GAAP FER was on 1 January In principle, the historic cost principle applies for the annual financial statements. This is based on the principle of the individual valuation of assets and liabilities. The main accounting principles are set out below. 3. Valuation principles 3.1 Cash and securities Cash and securities are valued at their nominal value. 3.2 Accounts receivable Accounts receivable are valued at their nominal value less necessary value adjustments. 3.3 Liabilities Liabilities are valued at their nominal value. 3.4 Provisions Provisions are made for legal and constructive obligations where the existence or causation due to an event in the past is likely. The amount of the provision is based on estimates of the Foundation Board and reflects future expenses expected per the balance sheet date. 3.5 Other assets/other short and longterm debt Unless otherwise noted, other assets and other short and longterm debt are shown in the balance sheet at nominal value, less any valuation adjustments required. 3.6 Transactions and financial positions in foreign currencies Transactions in foreign currencies are translated at exchange rates current at the time of the transaction. Exchange gains and losses resulting from transactions denominated in foreign currencies are recorded as income and the monetary assets and liabilities held in foreign currencies at the balance sheet date are translated at the yearend rate. The resulting gains and losses resulting from this translation are incorporated into the operating account.

9 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 4. Cash and marketable securities Cash Marketable securities Total '751 5' '939 2' Accounts receivable In respect of third parties In respect of the community In respect of associated companies In respect of related parties/organisations Total receivables, gross Provision for bad debts Total receivables, net '160 3'840 1'161 3'840 1'161 3'840 Receivables from related parties relate to agreed donations. 6. Provisions General provisions Total 2016 Total 2015 Status on Consumption with neutral impact on income (55) (55) Charged to income Reversed to income Status on of which shortterm 39 of which longterm

10 Suleyman Kerimov Foundation, Lucerne 7. Income from donations received Donations and gifts from third parties Donations and gifts from related persons 1'422 33'793 Total income from donations 1'422 33' Contributions of free donations Donations earmarked for projects Donations for education Donations for culture Donations for medicine Donations for social purposes Donations for sport Donations for infrastructure Donations for religious projects (mainly constructions) (136) '448 Total donation expenses ' Personnel expenses Personnel wage costs Social security expenses Pension costs Other personnel expenses Total Financial result Capital interest income Foreign exchange differences Other financial income Total financial income Interest expense on borrowings Foreign exchange differences Other financial expenses Total financial expenses Financial result (261)

11 11. Expense for service provision in accordance with Swiss GAAP FER Project expenses Contributions of free donations Total project expenses Personnel expenses Rental expenses Fundraising expenses Other operating expenses Total administrative expenses Total operating expenses ' ' '293 33' Events after the balancesheet date There are no events after the balance sheet date that could affect the accounts for Compensation to the Foundation board and transactions with related parties and organizations Analogous to the previous year, no remuneration or compensation was paid to the Foundation board. The Foundation received donations from companies formerly related to the founder in the amount of TCHF 1'422 (2015: TCHF 33,793). 14. Approval of the annual financial statements The Foundation board gave its approval to these annual financial statements at a meeting held on 15 May 2017 and released them for submission to the Swiss Federal Supervisory Authority for Foundations, Berne (Eidgenössische Stiftungsaufsicht, Bern). The Foundation board requests the Swiss Federal Supervisory Authority for Foundations, Berne to approve these annual financial statements.