Association of National Olympic Committees Lausanne Report of the statutory auditors to the General Assembly on the financial statements 2014
Report of the statutory auditors on the limited statutory examination to the General Assembly of the Association of National Olympic Committees Lausanne As statutory auditors, we have examined the 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 balances and notes, for the year ended 31 December 2014. These financial statements are the responsibility of the Executive Council. Our responsibility is to perform a limited statutory examination on these financial statements. We confirm that we meet the licensing and independence requirements as stipulated by Swiss law. We confirm that we meet the licensing and independence legal requirements. In the year under review, employees of our Firm provided tax and accounting services to your association. However, these employees were not personally involved in the limited statutory examination. We conducted our examination in accordance with the Swiss Standard on Limited Statutory Examination. This standard requires that we plan and perform a limited statutory examination to identify material misstatements in the financial statements. A limited statutory examination consists primarily of inquiries of association personnel and analytical procedures as well as detailed tests of association documents as considered appropriate in the circumstances. However, the testing of the operational processes and the internal control system, as well as inquiries and further testing procedures to detect fraud or other legal violations, are not within the scope of this examination. Based on our limited statutory examination, nothing has come to our attention that causes us to believe that the financial statements do not comply with Swiss law and the association s articles of incorporation. PricewaterhouseCoopers SA Beresford Caloia Martin Steiner Audit expert Auditor in charge Audit expert Lausanne, 9 September 2015 Enclosure: - Financial statements (statement of financial position, statement of activities, statement of cash flows, statement of changes in fund balance and notes) 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.
ASSOCIATION OF NATIONAL OLYMPIC COMMITTEES, LAUSANNE Statement of financial position at December 31, 2014 (expressed in US dollars) Assets 2014 2013 Current assets Cash on hand and at banks 145 875 2 093 017 Bank deposits 17 000 000 11 750 000 Other current assets 82 626 165 932 Prepaid expenses & guarantee deposits 410 308 68 429 17 638 809 14 077 378 Tangible fixed assets Land and building Les Charmettes 13 469 767 5 714 157 Restauration Les Charmettes - 5 174 226 Other tangible fixed assets 4 771 467 284 773 18 241 234 11 173 156 Total assets 35 880 043 25 250 534 Liabilities and fund balance Current liabilities Accrued liabilities 1 184 584 212 197 Fund balance Fund balance 34 695 459 25 038 337 Total liabilities and fund balance 35 880 043 25 250 534 The accompanying notes are an integral part of these financial statements. 3
ASSOCIATION OF NATIONAL OLYMPIC COMMITTEES, LAUSANNE Statement of activities for the year ended December 31, 2014 (expressed in US dollars) 2014 2013 Income Subsidies of the IOC for the activities 12 000 000 12 000 000 Subsidies of the IOC for les Charmettes 7 000 000 12 000 000 Bank interests 27 265 14 601 19 027 265 24 014 601 Expenditure ANOC Meetings General Assembly 3 450 823 3 025 579 Executive Council 716 661 757 299 ANOC Commissions and Working Groups, Seminars 726 295 6 841 International Events International and Continental Meetings 660 468 106 010 International Forums 140 033 - ANOC Offices Running Expenses 3 149 236 1 688 610 Auditors' fees 47 277 12 545 Depreciation on fixed assets 419 909 65 578 Miscellaneous (including bank taxes) 3 676 6 122 9 314 378 5 668 584 Excess income for the year, net 9 712 887 18 346 017 Exchange difference ( 55 765) 27 963 Net income for the year transferred to fund 9 657 122 18 373 980 The accompanying notes are an integral part of these financial statements. 4
ASSOCIATION OF NATIONAL OLYMPIC COMMITTEES, LAUSANNE Statement of cash flows for the year ended December 31, 2014 (expressed in US dollars) 2014 2013 Net income for the year 9 657 122 18 373 980 Adjustments for : Depreciation 419 909 65 578 Decrease / (Increase) in bank deposits over 3 months 6 000 000 ( 4 250 000) Decrease / (Increase) in other current assets 83 306 ( 165 932) Interest income ( 27 265) ( 14 601) Decrease / (Increase) in prepaid expenses ( 341 879) 1 371 698 (Decrease) / Increase in accrued liabilities 972 387 ( 90 650) Cash generated from operations 16 763 580 15 290 073 Cash flow from investing activities Interest received 27 265 14 601 Investment in land and building Les Charmettes ( 2 675 369) ( 10 888 383) Purchase of other tangible fixed assets ( 4 812 618) ( 280 030) Cash used for investing activities ( 7 460 722) ( 11 153 812) Net increase of cash and cash equivalents 9 302 858 4 136 261 Cash and cash equivalents at beginning of year 7 843 017 3 706 756 Cash and cash equivalents at end of year 17 145 875 7 843 017 The accompanying notes are an integral part of these financial statements. 5
ASSOCIATION OF NATIONAL OLYMPIC COMMITTEES, LAUSANNE Statement of changes in fund balance December 31, 2014 (expressed in US dollars) Fund Balance Balance as at December 31, 2012 6 664 357 Net income for the year ended December 31, 2013 18 373 980 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 The accompanying notes are an integral part of these financial statements. 6
ASSOCIATION OF NATIONAL OLYMPIC COMMITTEES, LAUSANNE 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. Certain comparative statement of financial position, statement of activities, statement of cash flow figures have been reclassified to conform to the current year presentation. 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
ASSOCIATION OF NATIONAL OLYMPIC COMMITTEES, LAUSANNE 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 50 years Furniture and equipment 10 years Information technology systems 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, 2014, the average interest rate was 0.22 % p.a. for bank deposits (2013 0.22 % p.a.). Maturity Up to 3 months Up to 1 year 2014 17 000 000-2013 5 750 000 6 000 000 17 000 000 11 750 000 8
ASSOCIATION OF NATIONAL OLYMPIC COMMITTEES, LAUSANNE NOTES TO THE FINANCIAL STATEMENTS Note 4 - Tangible fixed assets are composed of the following Land and building les Charmettes Furniture Information and technology equipment systems Total Sub total Book value at 1.1.2014 Accumulated depreciation Acquisitions 2014 Depreciation 2014 10 888 383 2 675 369 (93 985) 169 125 (55 465) 4 654 332 (241 946) 288 692 (117 579) 158 286 (83 978) 457 817 11 346 200 (173 044) (173 044) 4 812 618 7 487 987 (325 924) (419 909) Net closing book value 13 469 767 4 526 046 245 421 4 771 467 18 241 234 Investment costs Accumulated depreciation 13 563 752 (93 985) 4 823 457 (297 411) 446 978 (201 557) 5 270 435 18 834 187 Net book value 13 469 767 4 526 046 245 421 4 771 467 18 241 234 At December 31, 2014 (498 968) Note 5 ANOC Offices Running Expenses Salaries and related expenses Administrative expenses Communication charges Publications, Page Web 9 2014 2013 680 238 1 507 612 22 182 939 204 411 671 1 229 793 26 315 20 831 3 149 236 1 688 610 (592 953)
ASSOCIATION OF NATIONAL OLYMPIC COMMITTEES, LAUSANNE 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. Note 7 - Commitments In 2012, the Association entered into a contract with Projectim-Courtim SA for the transformation and renovation of its newly acquired Charmettes property. The transformation and renovation have been completed during the year and the Association has moved in its new headquarter on August 1, 2014. All the costs generated by the project are shown under Land and building les Charmettes. These investments were financed by a special subsidies granted by the International Olympic Committee. 10