Open Data Kosovo Financial Statements and Independent Auditors' Report for the year ended 31 December 2017

Size: px

Start display at page:

Download "Open Data Kosovo Financial Statements and Independent Auditors' Report for the year ended 31 December 2017"

Barnaby James
5 years ago
Views:

1 Financial Statements and Independent Auditors' Report for the year ended 31 December 2017

2 Contents Page Independent Auditor s Reports - Statement of financial position 1 Statement of comprehensive income 2 Statement of fund balance 3 Statement of cash flows 4 Note to the financial statements 5-15

5 Statement of comprehensive income for the year ended (Amount in EUR) Notes 31 December December 2016 Income , ,199 Total income 201, ,199 Personnel cost 11 (106,618) (66,775) Operting expenses 12 (72,078) (45,479) Depreciation 5 (2,074) - Total expenses (180,770) (112,254) Finance expenses Surplus/(Deficit) of the year 21,221 28,945 Income tax epenses (958) (2,895) Total comprehensive income for the year 20,263 26,050 Notes to the financial statements set out on pages 5 to 15 are part of these financial statements. 1

6 Statement of change in accumulated funds for the year ended (Amount in EUR) Accumulated surplus (deficit) Total Balance at 1 January ,540 21,540 Surplus (deficit) 26,050 26,050 Other comprehensive income/expense - - Total comprehensive expenses - - Balance at 31 December ,590 47,590 Balance at 1 January ,590 47,590 Surplus (deficit) 20,263 20,263 Other comprehensive income/expense Total comprehensive expenses - - Balance at 31 December ,853 67,853 Notes to the financial statements set out on pages 5 to 15 are part of these financial statements. 2

7 Statement of cash flows for the year ended 31 December 2017 Notes Cash flows from operating activities: Deficit for the period 20,263 26,050 Adjustments for: Depreciation 5 2,074 - Operating profit before changes in working capital 22,337 26,050 Changes in prepayments 6 (6,845) (5,660) Changes in deferred revenue 7 27,311 9,390 Changes in payables (1,034) 6,658 Net cash from operating activities 41,769 36,438 Cash flows from investing activities: Purchase of assets (23,058) - Net cash used in investing activities (23,556) - Cash flows from financing activities Net cash generated from financing activities - - Net increase in cash and cash equivalents 18,711 36,438 Cash and equivalents at the beginning of the year 7 71,720 35,282 Cash and equivalents at the end of the year 90,431 71,720 Notes to the financial statements set out on pages 5 to 15 are part of these financial statements. 3

8 1. Information about the organisation The organization "Open Data Kosovo ("Organisation ) was established as non governemntal organisation and registered on in Kosovo with Registration Certificate with registration number The Organization has a business address inganimete Tërbeshi Str 26A, Aktash, Prishtina, 10000, Kosovo. The Non-Governmental Organization "Open Data Kosovo " promotes the idea that governance data should be made freely available for everyone to use and republished as they wish, without restrictions from copyright, patents or other mechanisms of control. 2. Statement of compliance These financial statements have been prepared in accordance with International Financial Reporting Standards for Small and Medium Enterprises (IFRS for SMEs) issued by the International Accounting Standards Board approved by the Kosovo Council for Financial Reporting for Kosovo and accounting policies of the parent organisation. 3. Adoption of New and revised International Financial Reporting Standards 3.1 New standards and interpretations effective in the reporting period The following standards, changes to existing standards and interpretations issued by the International Accounting Standards Board are effective for the reporting period: IFRS 14 - Deferred regulatory accounts Changes in IFRS 11 - Accounting for the acquisition of interest in joint operations Amendments to IAS 16 and IAS 38 - Clarification of acceptable methods of depreciation and amortization Amendments to IAS 27- equity method in the individual financial statements Changes in IFRS 10, 12 and IAS 28 -Investment entities, the application of exceptions Changes to IAS 1- Disclosure Initiative The adoption of these amendments to existing standards and interpretations has not sent any changes in accounting policies of the Organisation or the financial position and financial performance. 4

9 3. Adoption of New and revised International Financial Reporting Standards (continued) 3.2 Standards and interpretations in issue not yet effective A number of standards and amendments to standards are effective for annual periods beginning after 1 January 2016 with the early adoption is allowed, either way the organisation has not made early application of the following standards in the preparation of these financial statements: IFRS 9 Financial Instruments In July 2014, the Board of International Accounting Standards issued final version of IFRS 9 Financial Instruments. IFRS 9 is effective for annual periods beginning on or after 1 January 2018 and earlier applications are allowed. The organisation currently plans to apply IFRS 9 on January 1, 2018 initially. The actual impact of the adoption of IFRS 9 on the financial statements of the organisation in 2018 is not known and cannot be estimated reliably because it will be dependent on the financial instruments that the group maintains and economic conditions at the time as the elections of accounting and judgments to be taken in the future. The new standard requires the organisation to review accounting procedures and internal controls related to the reporting of financial instruments and these changes are not yet completed. However, the organisation has carried out a preliminary assessment on the potential impact of adopting IFRS 9 on the basis that her position on December 31, 2016 and protective relations (hedge) designed in 2016 under IAS 39. IFRS 15 Revenue IFRS 15 establishes a comprehensive framework to determine if, how and when the revenue will be recognized. It replaces IAS 18 Revenue, IAS 11 Construction Contracts, and IFRIC 13 Customer Loyalty Programs. IFRS 15 is effective for annual periods beginning on or after January 1, 2018 and the early adoption permitted. The new standard provides a framework to replace the revenue recognition existing IFRS guidance. Subjects will adopt a five-step model to determine when to recognize revenue, and in what amount. The new model provides that the revenue is recognized when (or as) an entity transfers control of goods or services to a client in the amount for which the entity expects to be entitled. Although the entity has not fully completed the initial assessment of the potential impact of IFRS 15 on its financial statements, management does not expect the new standard when initially applied, will have a material impact on the financial statements of the entity. Time and measurement of income of the entity is not expected to change under IFRS 15 because of the nature of the entity's operations and the types of income that it earns. IFRS (IFRS) 16 Leases IFRS (IFRS) 16 represents a single model in the mirror lease rents of financial position. The lessee recognizes the right of the asset base and representing its right to use the asset and recognizes a lease obligation, representing the obligation to make lease payments. Optional exceptions for short-term leases and rents small valuables. Accounting (registration) for the lessor remains the same as the current standard, ie the landlord will continue to classify leases as finance leases or operating leases (common). IFRS (IFRS) 16 replaces the guidance (standards) of existing leases including IAS 17 Leases IFRIC (IFRIC) 4 Determining whether an arrangement contains rental, SIC (SIC) 15 Operating leases (common) - Incentives, SIC (SIC) 27 content rating of transactions involving the legal form of a lease. This standard is effective (enters into force) for periods beginning on or after 1 January Application (application) earlier is permitted for entities that apply IFRS (IFRS) 15 Income from contracts with customers, on or before the initial the application of IFRS (IFRS) 16. The entity does not expect the new standard when initially applied, will have a material impact on the final. 5

10 3. Adoption of New and revised International Financial Reporting Standards (continued) 3.2 Standards and interpretations in issue not yet effective (continued) Disclosure initiatives (Amendments to IAS 7) Additions (change) requires disclosure updates so that users of financial statements to evaluate changes in liabilities arising from financing activities, including changes arising from outflows cash and non-cash (such as the effect of earnings losses from exchange rates changes that arising from the acquisition of companies subsidiaries control changes in their fair values. Changes are effective (enters into force) for periods beginning on or after 1 January 2017, the previous applications are allowed. The entity expects that changes when initially applied, will have no material impact on the presentation of financial statements of the entity. Recognition of deferred tax losses (not caused) (Additions to IAS 12) The amendments clarify accounting (records) Deferred tax loss not caused Debt instruments measured at fair value. Changes are effective (enters into force) for periods beginning on or after 1 January 2017, the previous applications are allowed. Entity is assessing the potential impact on the financial statements resulting from consolidated additions. So far, the entity does not expect any significant impact. 4. Summary of key accounting policies 4.1 Basis of preparation These financial statements have been prepared under historical cost basis except for revaluation for certain properties and certain financial assets and liabilities, which are stated at fair value. 4.2 Plant and equipment Items of plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the asset. Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of specific items. Assets held under operating leases are depreciated over the shorter of the lease term and their useful lives. Subsequent expenditures are capitalized only when they increase the future economic benefit embodied in the specific asset to which they relates. An item of plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. Any revaluation increase arising on the revaluation of such properties is recognized in other comprehensive income and accumulated in equity, except to the extent that it reverses a revaluation decrease for the same asset previously recognized in the profit or loss, in which case the increase is credited to profit or loss to the extent of the decrease previously expensed. A decrease in the carrying amount arising on the revaluation of such properties is recognized in profit or loss to the extent that it exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation of that asset. 6

11 4. Summary of key accounting policies (continued) 4.2 Plant and equipment (continued) Depreciation is calculated on a straight-line basis over the estimated remaining useful lives based on the following rates: Building and infrastructure 5% 5% Vehicles 20% 20% Office equipments 20% 20% Depreciation methods, useful lives and residual values are reviewed at each reporting date. Other leases are operating leases for which lease assets are not recognized in the statement of financial position of the organisation. Payments made for operating leases are recognized in profit or loss on a straight-line basis over the lease term. 4.3 Income tax As a not-for-profit Organization, ODK is exempt from income taxes. A non-governmental organisation registered in Kosovo may apply for public benefit status and exemption from income tax. ODK has also other sources of income which are subject to taxation based on local tax legislations. 4.4 Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash held with banks including deposits with maturity of less than three months. 4.5 Trade and other payables Trade payables and other payables are measured at cost that is the fair value of the amount to be paid in the future for the goods and services received if invoiced to the organisation or not. 4.6 Borrowings Borrowings are initially recognized at fair value. After initial recognition, loans and borrowings are presented at amortized cost and any difference between cost and repurchase value is recognized in the statement of comprehensive income over the borrowing period using the effective interest method. 7

12 4. Summary of key accounting policies (continued) 4.7 Grant income recognition Grants are not recognized until there is reasonable assurance that the Organization will comply with the condition~ attaching to them and that the grants will be received. Grants are recognized in profit or Loss on a systematic basis over the periods in which the Organization recognizes as expenses the related costs for which the grants are intended to compensate. Specifically, grants whose primary condition is that the Organization should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue in the consolidated statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets. 4.8 Transaction in foreign currecies Transactions in currencies other than Euro are initially recorded at the rates of exchange ruling on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated using the exchange rates ruling on the balance sheet dates. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Profits and losses arising on exchange are dealt with in the profit and loss in the period in which they arise. 4.9 Impairment The carrying amounts of the Organisation s assets, with the exception of inventories are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognized in the income statement. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. In respect of property, plant and equipment, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount Financial income and expenses Financial income includes interest income on bank balances recognized in profit or loss. Interest income is recognized as accrual, using the effective interest method. Interest expense is recognized in profit or loss on an accrual basis using the effective interest method Retirement benefit The Organization makes no provision for and has no obligation for, employee pensions over and above the contributions paid into the Kosovo Pension Saving Trust (KPST). 8

13 4 Summary of key accounting policies (continued) 4.12 Contigencies and provisions Contingent liabilities are not recognized in the financial statements. They are disclosed unless the possibility of flow of resources involving economic benefits is remote. Contingent assets are not recognized in the financial statements but are disclosed when the outflow of economic benefits is probable. The provision is recognized if the Organization has a present (legal or constructive) obligation as a result of previous events, it is possible that an outflow of resources involving economic benefits will be required to settle the obligation; And a reliable estimate can be made for the amount of the obligation 4.13 Going concern The financial statements are prepared in conformity with going concern principle, which implies the realization of assets and settlement of liabilities in the normal course of business Critical judgments and key sources of assessed uncertainty In the process of implementing the Organization's accounting policies that are described above, management has not made any judgment that has a significant impact on the amounts recognized in the financial statements. Future key assumptions and other key sources of estimates uncertainty at the reporting date that are likely to cause a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below: Povision for impairment of trade receivable and decrease in the value of inventory In the normal course of business, the Organisation makes estimation for recovery and realization of receivables. Based on this assessment, management aims to record an appropriate impairment of receivables. Actual results may differ from estimation. Factors and circumstances reviewed by management at the reporting date do not result in provisioning of trade receivables. 9

14 5. Property and equipment Cost Leasehold IT and other improvement equipment Total At 1 January Additions for the year Disposals during year At 31 December Additions for the year 9,190 13,868 23,058 Disposals during year - - At 31 December ,190 13,868 23,058 Accumulated depreciation At 1 January Depreciation charge for the - - period - Disposals during year At 31 December Depreciation charge for the (546) (1,528) period (2,074) Disposals during year At 31 December 2017 (546) (1,528) (2,074) Net carrying value At 31 December At 31 December ,644 12,340 20,984 10

15 6. Prepayment and other receivables 31 December December 2016 Receivable from donors 9,804 - Other prepayments 2,702 5,660 Total receivables 12,506 5, Cash and cash equivalents Cash and cash equivalents as of 31 December 2017 is composed as below: 31 December December 2016 Cash on hand 60 - Current accounts with local banks 90,371 71,720 Total 90, Deferred revenue Deferred revenue related to grants as of 31 December 2017 are composed as per below table: Deferred revenue as of 31 December 2016 Income received during 2017 Income recognized during 2017 Deferred revenue as of 31 December 2017 Receivables from donors ActionSee 4,938 35,000 11,861 28,077 - GIZ - 3,143 7,234-4,091 Tech4Policy - 73,344 53,299 20,045 - Techstitution 1 4,372 20,230 24, Techstitution - 9,331 15,044-5,713 UNKT 11,190 5,660 16, CFLI Usaid - 3,420 3, KCSS - 5,346 5, IMD - 12,977 12, Total 20, , ,944 48,122 9,804 11

16 9. Other liabilities Other liabilities as of 31 December 2017 are composed as below: 31 December December 2016 Accounts payable 5,615 7,954 Other payables 1,025 1,025 Tax on income Due to pension contribution and tax Due to withholding tax 99 - Total other liabities 7,945 8, Income Income is composed as below: For the year ended 31 December 2017 For the year ended 31 December 2016 Income from grants 150,944 57,999 Income from sale of services 44,653 83,200 Other income 6,394 - Total income 201, , Personnel expenses For the year ended 31 December 2017 For the year ended 31 December 2016 Salaries 99,103 61,900 Mandatory contributions 7,515 4,875 Total 106,618 66, Adminsitrative and expenses Administrative expenses are composed as below: For the year ended For the year ended 31 December December 2016 Sub grants 18,500 4,557 Rent 12,888 3,642 Consulting expenses 6,508 8,023 Workshop-Participant expenses 6,435 - Other taxes 5,041 1,643 Food & Beverages 4,954 2,927 Office Expenses 4,907 2,902 Traveling 4,791 16,588 Repairs and Maintenance 1, Other expenses 1,262 2,663 Light, Power, Water 1,001 - Mentoring Expenses 1, Advertising expenses Telephone & Internet Translation Expenses Licence fee Total 72,078 45,479 12

17 13. Commitments and contigencies (i) Commitments The organisation has not entered in any commitments for the year ended 31 December 2017 and (ii) Litigations and Claims As of 31 December 2017 the Organisation has not been involved in any legal case from its bussines activity. 14. Financial Instruments (i) Credit Risk Financial instruments that potentially expose the Organisation to concentrations of credit risk consist primarily of accounts receivable balances and cash. The Organisation's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The organisation has established a credit policy under which each new customer is analyzed individually for reliability before the terms and conditions of payment and delivery offered. The receivables credit risk is controlled through approvals receivables and generate budgetary costs of such receivables. Credit risk is controlled cash in investing in reputable banks in Kosovo. Instability in the world financial markets and Kosovo's financial markets The ongoing global financial crisis and the economic crisis have resulted in, inter alia, a lower level of capital market financing, lower liquidity levels in the banking sector, and, from time to time, higher interbank interest rates and higher volatility in stock markets. Uncertainties in the global financial markets have also resulted in bank failures and bank bailouts around the world. The full impact of the ongoing financial crisis is proving to be impossible to be foreseen or to be fully protected from it. 13

18 15. Financial Instruments (continued) ii). Foreign Currency Risk The organisation is not exposed to foreign currency risk since most of the funds received and expended in Euro. The Organisation does not use derivative instruments to avoid exposing her to the risk of foreign exchange rate. (iii) Interest rate risk The organisation's revenue and operating cash flows are substantially independent of changes in market interest rates. The organisation's financial instruments are interest-bearing loans. Instruments in the possession of the organisation are with fixed interest rates and therefore the organisation is not exposed to interest rate risk. (iv) Fair Value The organisation has financial assets which consist of accounts receivable, cash and cash equivalents. The organisation has financial liabilities which consist of accruals, loans and other payables. The fair values of these financial instruments are not materially different from their stated values due to their short maturity or other conditions. (v) Liquidity risk Liquidity risk is derived from total funding of activities of the organisation and management positions. It includes the risk of not being able to finance the property with appropriate maturities and rates and the risk of not being able to liquidate an asset at a reasonable price and timeframe suitable to meet obligations. The Organisation monitors its liquidity on a monthly basis in order to manage its obligations when they come to fruition. 16. Transactions with related parties Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operational decisions, or the parties are under common control with the Organisation. A summary of transactions with related parties is presentes below: Expenses For the year ended 31 December 2017 For the year ended 31 December 2016 Key management compensation 22,360 22, Events after the reporting date No material events subsequently to the date of the statement of financial position have occurred which require disclosure in the financial statements. 14

AMERICAN UNIVERSITY IN KOSOVO FOUNDATION. Financial statements for the year ended June 30, 2012 (with independent auditor s report thereon)

AMERICAN UNIVERSITY IN KOSOVO FOUNDATION Financial statements for the year ended 2012 (with independent auditor s report thereon) TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR S REPORT - STATEMENT OF FINANCIAL