Association of National Olympic Committees Lausanne Report of the statutory auditor to the General Assembly on the financial statements 2015
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 2015. 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: +41 58 792 81 00, Téléfax: +41 58 792 81 10, www.pwc.ch PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.
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
Statement of financial position at December 31, 2015 (expressed in US dollars) Assets 2015 2014 Current assets Cash on hand and at banks 900 184 145 875 Bank deposits 18 206 728 17 000 000 Prepaid expenses & Other current assets 254 087 492 934 19 360 999 17 638 809 Tangible fixed assets Land and building Les Charmettes 13 244 204 13 469 767 Other tangible fixed assets 5 180 428 4 771 467 18 424 632 18 241 234 Total assets 37 785 631 35 880 043 Liabilities and fund balance Current liabilities Accrued liabilities 908 318 1 184 584 Fund balance Fund balance 36 877 313 34 695 459 Total liabilities and fund balance 37 785 631 35 880 043 The accompanying notes are an integral part of these financial statements. 3
Statement of activities for the year ended December 31, 2015 (expressed in US dollars) 2015 2014 Income Subsidies of the IOC for the activities 12 000 000 12 000 000 Subsidies of the IOC for les Charmettes 1 000 000 7 000 000 Bank interests 23 688 27 265 13 023 688 19 027 265 Expenditure ANOC Meetings General Assembly 3 705 242 3 450 823 Executive Council 792 159 716 661 ANOC Commissions and Working Groups, Seminars 615 945 726 295 International Events International and Continental Meetings 385 765 660 468 International Forums 98 931 140 033 ANOC World Beach Games 702 664 - ANOC Offices Running Expenses 3 494 386 3 149 236 Auditors' fees 70 609 47 277 Depreciation on fixed assets 915 178 419 909 Miscellaneous (including bank taxes) 14 002 3 676 10 794 881 9 314 378 Excess income for the year, net 2 228 807 9 712 887 Exchange difference ( 46 953) ( 55 765) Net income for the year transferred to fund 2 181 854 9 657 122 The accompanying notes are an integral part of these financial statements. 4
Statement of cash flows for the year ended December 31, 2015 (expressed in US dollars) 2015 2014 Net income for the year 2 181 854 9 657 122 Adjustments for : Depreciation 915 178 419 909 (Increase) / Decrease in bank deposits over 3 months ( 5 200 000) 6 000 000 Interest income ( 23 688) ( 27 265) Decrease / (Increase) in prepaid expenses 238 846 ( 258 573) (Decrease) / Increase in accrued liabilities ( 276 267) 972 387 Cash (used) for / generated from operations ( 2 164 077) 16 763 580 Cash flow from investing activities Interest received 23 688 27 265 Investment in land and building Les Charmettes - ( 2 675 369) Purchase of other tangible fixed assets ( 1 098 574) ( 4 812 618) Cash used for investing activities ( 1 074 886) ( 7 460 722) Net (Decrease) / Increase of cash and cash equivalents ( 3 238 963) 9 302 858 Cash and cash equivalents at beginning of year 17 145 875 7 843 017 Cash and cash equivalents at end of year 13 906 912 17 145 875 The accompanying notes are an integral part of these financial statements. 5
Statement of changes in fund balance December 31, 2015 (expressed in US dollars) Fund Balance Balance as at December 31, 2013 25 038 337 Net income for the year ended December 31, 2014 9 657 122 Balance as at December 31, 2014 34 695 459 Net income for the year ended December 31, 2015 2 181 854 Balance as at December 31, 2015 36 877 313 The accompanying notes are an integral part of these financial statements. 6
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
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 (2014 0.22 % p.a.). US$ US$ Maturity 2015 2014 Up to 3 months 13 006 728 17 000 000 Up to 1 year 5 200 000-18 206 728 17 000 000 8
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 1.1.2015 13 563 752 4 823 459 446 978 5 270 437 18 834 189 Accumulated depreciation (93 985) (297 411) (201 557) (498 968) (592 953) Acquisitions 2015-977 583 120 991 1 098 574 1 098 574 Depreciation 2015 (225 563) (576 021) (113 594) (689 615) (915 178) Net closing book value 13 244 204 4 927 610 252 818 5 180 428 18 424 632 At December 31, 2015 Investment costs 13 563 752 5 801 042 567 969 6 369 011 19 932 763 Accumulated depreciation (319 548) (873 432) (315 151) (1 188 583) (1 508 131) Net book value 13 244 204 4 927 610 252 818 5 180 428 18 424 632 Note 5 ANOC Offices Running Expenses US$ US$ 2015 2014 Salaries and related expenses 890 160 680 238 Administrative expenses 1 914 551 1 507 612 Communication charges 52 179 22 182 Publications, Page Web 637 496 939 204 3 494 386 3 149 236 9
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