INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2019€¦ · FONDO PARA LA ACCIÓN AMBIENTAL Y LA...

INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2019

Table of Contents

Statutory Auditor's Report ........................................................................................................... 4

Certification of the Company's Legal Representative and Accountant ............................ 7

1 Financial Statements ................................................................................................. 8

1.1 Statement of the Financial Position .......................................................................... 8

1.2 Income Statement ......................................................................................................................... 9

1.3 Cash Flow Statement ............................................................................................................ 10

1.4 Statement of Changes in Equity ......................................................................................... 11

General Company Information ............................................................................... .12

2 Summary of Main Accounting Policies ...................................................................... 12

2.1 Basis for Preparation .................................................................................... 12

2.2 Materiality .................................................................................................13

2.3 Functional and presentation currency ............................................................ 14

2.4 Financial Instruments - Cash and cash equivalents ........................................ .14

2.5 Financial Instruments - Financial Assets ................................................................ 14

2.5.1 Other accounts receivable ................................................................................ .14

2.5.2 Impairment of financial assets ..................................................................... .15

2.6 Property, plant and equipment ................................................................... .15

2.7 Investment Properties ................................................................................. .16

2.8 Impairment of Non-Financial Assets ............................................................... .17

2.9 Intangible Assets ......................................................................................17

2.10 Government Grants ............................................................................................ .17

2.11 Trade Accounts Payable .................................................................................... .18

2.12 Income Tax ..................................................................................................... .18

2.13 Employee benefits .................................................................................................... 18

2.14 Revenues Recognition ....................................................................................... .19

3 Disclosures…………………………………………………………………………………20

3.1 Cash and cash equivalents ......................................................................... .20

3.2 Accounts Receivable ................................................................................20

3.3 Financial Assets .......................................................................................... .23

3.4 Property, Plant and Equipment .................................................................. .24

3.5 Investment Properties………………………………………………………………..25

3.6 Intangible Assets ......................................................................................26

3.7 Prepaid expenses ........................................................................................ .26

3.8 Accounts payable ................................................................................ .27

3.9 Employee Benefits ....................................................................................27

3.9.1 Short and long-term employee benefits ............................................................ .27

3.9.2 Short-term employee benefits ......................................................................... .28

3.10.5 Long-term employee benefits .................................................................................... 27

3.10 Other Financial Liabilities....................................................................................... .28

3.11 Equity ................................................................................................ .37

3.12 Revenues for Administrative Expenses ........................................................... .37

3.13 Administrative Expenses ................................................................................... .38

3.14 Financial Expenses ............................................................................................. .40

3.15 Subsequent Events……………………………………………………………………..40

Statutory Auditor's Report on Interim Financial Statements

To the Board of Directors of Fondo para la Acción Ambiental y la Niñez

We have carried out a review of the Interim Financial Statements of Fondo para la Acción Ambiental y la Niñez, which include the Statement of Financial Position as of June 30, 2019 and the corresponding Income Statement, changes in equity and cash flows for the six (6) month period that ended on that date, as well as a summary of the main accounting policies and other explanatory notes.

Management's responsibility for the financial statements

The Administration of Fondo para la Acción Ambiental y la Niñez, is responsible for the preparation and presentation of the interim financial statements in accordance with the requirements established by the International Accounting Standard IAS 34, Interim Financial Reporting, adopted by the accounting and financial reporting standards accepted in Colombia.

Responsibility of the Statutory Auditor

Our responsibility is to express a conclusion on the interim financial statements based on my review.

I have carried out my review in accordance with International Standard for Review Work 2410 "Review of Interim Financial Reporting performed by the Independent Auditor of the Entity". This standard requires planning and performing the review to obtain reasonable assurance about whether the financial statements are free from material errors.

Bogotá, D.C, - Colombia. Calle 37 No. 24 – 28, PBX: (571) 208 75 00. [email protected]

Medellin – Colombia, San Fernando Plaza. Torre Protección, Carrera 43A No. 1 – 50 6th floor. (574) 6052757 www. amezquita.com.co

Amezquita & Cia., is a member f irm of PKF Internat ional L imited, a netw ork of legal ly independent f irms and I accept no responsib i l i ty for the act ions or omissions of any indiv idual member or correspondent f irm or f irms.

A review of interim financial statements consists of asking questions to the

entity's staff, primarily those responsible for financial and accounting

matters, and applying analytical and other review procedures.

The scope of a review is substantially less than that of an audit conducted

with international auditing standards and consequently does not allow for

assurance that all important matters that could be identified in an audit have

come to my knowledge. As a result, I do not express an audit opinion on the

interim financial statements.

We conclude on the appropriateness of management's use of the going

concern accounting principle and, based on the audit evidence obtained,

conclude on whether or not there are material uncertainties related to facts

or conditions that may cast significant doubt on Fondo's ability to continue

as a going concern. If we conclude that there is material uncertainty, it is

required that we draw attention in our review report on the corresponding

information disclosed in the interim financial statements or, if such

disclosures are not adequate, that we express a modified conclusion. Our

conclusions are based on the audit evidence obtained up to the date of our

auditor’s report. However, future events or conditions may lead to the

Company ceasing to be a going concern.

Conclusion

As a result of our review, no matter has come to our knowledge that makes

me think that the interim financial statements for the period ended June 30,

2019, do not reasonably present in all significant aspects the financial

position of Fondo para la Acción Ambiental y la Niñez, the results of their

operations, the changes in their equity and their cash flows for the six (6)

month period ended on said date in accordance with International Accounting

Standard IAS 34, Interim Financial Reporting, adopted by the accounting and

financial reporting standards accepted in Colombia.

Bogotá, D.C, - Colombia. Calle 37 No. 24 – 28, PBX: (571) 208 75 00. [email protected] Medellin – Colombia, San Fernando Plaza. Torre Protección, Carrera 43A No. 1 – 50 6th floor. (574) 6052757

www. amezquita.com.co Amezquita & Cia., is a member f irm of PKF Internat ional L imited, a network of legal ly independent

f irms and I accept no responsib i l i ty for the act ions or omissions of any indiv idual member or corr espondent f irm or f irms.

Another issue

We warn about the fact that the interim financial statements do not include

all the information required by complete financial statements prepared in

accordance with the accounting and financial reporting standards accepted

in Colombia, and therefore they should be read in conjunction with the annual

financial statements of Fondo para la Acción Ambiental y la Niñez for the

fiscal year ended 31 December, 2018.

DEYANIRA BARRAGAN RUIZ Statutory Auditor Professional Card No 83.187-T Appointed by Amézquita y Cía. S.A.S Bogota, October 16, 2019

Bogotá, D.C, - Colombia. Calle 37 No. 24 – 28, PBX: (571) 208 75 00. [email protected] Medellin – Colombia, San Fernando Plaza. Torre Protección, Carrera 43A No. 1 – 50 6th floor. (574) 6052757

www. amezquita.com.co Amezquita & Cia., is a member f irm of PKF Internat ional L imited, a network of legal ly independent

f irms and I accept no responsib i l i ty for the act ions or omissions of any indiv idual member or correspondent f irm or f irms.

1 Financial Statements

1.1 Statement of Financial Position for the period ended June 30, 2019

FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ Tax ID No. 830.077.866-3

Expressed in thousands of pesos COP

Note

For the period ended June 30,

2019

For the year

ended December 31, 2018

CURRENT ASSETS Current Assets Cash and cash equivalents

3.1

15.991.476

11.923.332

Accounts Receivable 3.2 751.108 1.128.086

Total Current Assets 16.742.584 13.051.418

Non-current assets Financial Assets 3.3 142.006.023 142.081.472 Investments 3.3 430.842 430.842 Property, Plant and Equipment 3.4 2.274.301 2.294.011 Investment Properties 3.5 2.485.062 2.485.062 Intangible Assets 3.6 44.585 29.431 Prepaid expenses 3.7 1.590 1.590

Total Non-Current Assets 147.242.403 147.322.407

TOTAL ASSETS 163.984.987 160.373.825

1.1. Statement of Financial Position for the period ended June 30, 2019

FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ

Tax ID No. 830.077.866-3 Expressed in thousands of pesos COP

Note


2019

For the year ended December

31, 2018

LIABILITIES Current Liabilities Accounts Payable

3.8

455.742

378.996 Employee Benefits 3.9 337.564 391.372

Other liabilities and prepayments received

3.10(1)

132.775

13.575.109

Total Current Liabilities 926.082 14.345.478

Non-Current Liabilities Other liabilities and prepayments received

3.10(2-3-4)

158.910.448

141.827.717

Employee Benefits 3.10(5) 77.781 84.359

Total non-current liabilities 158.988.229 141.912.076

TOTAL LIABILITIES 159.914.311 156.257.554

EQUITY Capital Stock 3.11 1.000 1.000 Capital Surplus 3.11 13.500 13.500 Retained Earnings 3.11 (205.264) (132.969) Fiscal year income 3.11 (45.594) (72.295) Retained earnings through convergence

3.11

1.604.502

1.604.502

Revaluation surplus 3.11(1) 2.702.532 2.702.532

TOTAL EQUITY 4.070.676 4.116.271

TOTAL LIABILITIES AND EQUITY

163.984.987

160.373.825

See disclosures accompanying Financial Statements

Legal Representative

Accountant

Professional Card No. 81009-T

Statutory Auditor Professional Card No. 83.187- T Appointed by Amezquita & CIA SAS

1.2. Income Statement for the period January 1 to June 30, 2019


Expressed in thousands of pesos COP

Note


2019

For the year ended June

30, 2018

NON-OPERATING INCOME Revenues for administrative expenses (-) NON-OPERATING EXPENSES

3.12

1,644,600

1.527.094

Administrative 3.13 1.690.070 1.557.090

NON-OPERATING PROFIT (45.470) (29.996)

(+) FINANCIAL REVENUES (-) FINANCIAL EXPENSES 3.14 124 131

LOSS BEFORE INCOME AND COMPLEMENTARY TAXES

(45.594)

(30.127)

NET LOSS FOR THE FISCAL YEAR

(45.594)

(30.127)

See disclosures accompanying Financial Statements


Accountant Professional Card No. 81009-T


1.3. Cash Flow Statement for the period ended June 30, 2019


As of June 30,

2019

As of June

30, 2018

(loss) for the fiscal year

(87.762)

299.775

CASH FLOW FROM OPERATING ACTIVITIES Amortizations of prepaid expenses 4.381 2.417 Depreciation 83.382 60.311 Net movements of current assets and liabilities (Decrease) in trade accounts receivable (644.208) 434.065 (Decrease) in prepaid expenses 0 6.080 (Increase) in intangibles (17.714) (19.339) (Decrease) in Financial Assets 1.865.794 (6.260.705) (Increase) in trade accounts payable and other accounts payable 214.034 (93.611) (Decrease) in Employee Benefits 9.781 25.476 Other Liabilities 5.527.194 2.553.153 Cash flow provided (used) by operating activities 6.954.882 (2.992.377) CASH FLOWS FROM INVESTING ACTIVITIES Property, plant and equipment additions (55.711) (54.223) Cash flow used for investing activities (55.711) (54.223) CASH FLOW FROM FINANCING ACTIVITIES Cash flow (used) provided by financing activities 0 0 Change in cash and cash equivalents 6.899.171 (3.046.599) Initial balance of cash and cash equivalents 9.092.305 12.138.904 Ending balance of cash and cash equivalents 15.991.476 9.092.305


Accountant

Professional Card No. 81009-T


1.4. Statement of changes in Equity for the period ended June 30, 2019


Capital Stock

Capital Surplus

Fiscal year income

Prior fiscal year incomes

Revaluation surplus

Profits through convergence

Total equity

Balance as of June 30, 2017 1.000 13.500 (388.565) (74.306) - 1.604.502 1.156.131

Income transfer 388.565 (388.565) 0 Net profit (loss) (30.127) (30.127) Prior fiscal year income 329.902 - 329.902

Balance as of June 30, 2018 1.000 13.500 (30.127) (132.969) 1.604.502 1.455.906

Income transfer 30.127 (30.127) 0 Net profit (loss) (45.594) (45.594) Prior fiscal year incomes (42.167) (42.167) Revaluation surplus 2.702.532 2.702.532

Balance as of June 30, 2019 1.000 13.500 (45.594) (205.264) 2.702.532 1.604.502 4.070.676


Accountant Professional Card No. 81009-T


FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ

DISCLOSURE NOTES TO THE FINANCIAL STATEMENTS FOR INTERIM PERIODS

FROM JANUARY 1 TO JUNE 30, 2019

(Expressed in thousands of Colombian pesos)

1. General Information

FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ is a non-profit foundation established

on June 23, 2000, by Public Deed No. 2538 of the First Notary of Bogotá, on April 5, 2013,

a statutory reform was made, which was registered by Public Deed No. 1185.

The domicile of its headquarters and main business center is the city of Bogota.

Its main purpose is the administration, supervision and management of the resources of the

Americas Initiative account, as contemplated in the Agreement between the Government of

the Republic of Colombia and the Government of the United States of America, additionally it

can be part of Agreements or Contracts to manage funds contributed by third parties and

create accounts for specific objectives.

Therefore, Fondo Para la Acción Ambiental y la Niñez shall promote activities designed to

preserve, protect or manage the natural and biological resources of the Republic of Colombia,

in a sustainable and ecologically viable manner, and at the same time shall promote the

survival and development of children within a conception of sustainable development of the

Republic of Colombia.

The validity of FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ is undefined.

2. Summary of significant accounting policies

The significant accounting policies applied in the preparation of the financial statements

are detailed below, which were prepared in accordance with IAS 34.

2.1 Basis of preparation

The financial statements of FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ have been

prepared in accordance with the International Financial Reporting Standards for Small and

Medium-sized Entities (IFRS for SMEs) issued by the International Accounting Standards Board

(IASB).

International Financial Reporting Standards (IFRS)

Decree 2483 of 2018 compiles and updates the technical frameworks of the Financial Reporting

Standards for SMEs, IFRS for SMEs, Group 2, incorporated in Decree 2420 of 2015, as

amended by Decrees 2496 of 2015, 2131 of 2016 and 2170 of 2017, respectively. In the case

of Fondo para la Acción Ambiental y la niñez, this compilation and update of the Financial

Reporting Standards applies.

In the second regulatory framework indicated for Group 2, the "Editorial Corrections", issued

by the IASB in December 2017, for the purpose of having an updated legal instrument that

provides interested parties with a better understanding and application of financial reporting

standards in the country.

FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ presents its general information

financial statements as of December 31 of each year in accordance with the financial statement

presentation policy. It also presents interim financial statements as of June 30 of each year.

2.2 Materiality

The presentation of economic facts is made according to their materiality. For disclosure

purposes, a transaction, event or operation is material when, because of its amount or nature,

its knowledge or lack of knowledge, considering the circumstances surrounding it, affects the

decisions that may be taken or the assessments that may be made by users of the accounting

information.

In the preparation and presentation of the financial statements, materiality is determined on

the basis of total assets in relation to current and non-current assets; total liabilities in relation

to current and non-current liabilities, equity or fiscal year income, as appropriate. Generally,

any item that exceeds the unit of measure shown in the table below is considered to be

material:

CATEGORY UNIT OF MEASURE

Cash and cash equivalents 2 Current legal minimum wage (SMMLV)

Trade Accounts Receivable and Other Accounts Receivable

0

Property, Plant and Equipment 5 SMMLV

Investment Properties 2 SMMLV

Non-financial assets 2 SMMLV

Intangible Assets 1 SMMLV

Financial liabilities 1 SMMLV

Non-financial liabilities 0

Tax Liabilities 0

Liabilities for employee benefits 0

Revenues 1 SMMLV

Expenses 1 SMMLV

2.3 Functional Currency

a) Functional currency and repor t ing currency

The items included in the financial statements are expressed in the currency of the primary

economic environment where the entity operates. The financial statements are presented in

"Thousands of Colombian pesos", which is the functional currency of FONDO PARA LA

ACCION AMBIENTAL Y LA NIÑEZ and the reporting currency.

b) T r ansac t ions and ba lances

Foreign currency transactions are translated into the functional currency, and their results and

financial position are translated into a different reporting currency using the following

procedures:

a. The assets and liabilities of each statement of financial position presented (ie, including

comparative figures), shall be converted at the closing exchange rate on the date of that

statement of financial position;

b. Revenues and expenses for each total comprehensive income statement (i.e.

including comparative figures) shall be converted at the exchange rates on the date

of the transaction.

Exchange differences arising on the settlement of monetary items or on the translation of

monetary items at rates different from those used for translation at initial recognition are

recognized in the income of the period.

Those from a non-monetary item are recognized in other comprehensive income.

2.4 Financial Instruments – Cash and cash equivalents

Cash and cash equivalents include cash in Hand and Banks and demand deposits, along with

other short-term, highly liquid investments that are readily convertible to known amounts of

cash and subject to an insignificant risk of change in value.

2.5 Financial Instruments - Financial assets

This policy applies to all accounts receivable of the company considered under IFRS as financial

assets, since they represent a right to receive cash or another financial asset in the future.

Consequently, it includes the following policies:

2.5.1 Other accounts receivables

They shall be measured at fair value at initial recognition and at the end of each reporting period,

measured in accordance with the following flow chart:

Changes in financial assets at fair value are recognized in results.

2.5.2 Impairment of financial assets

Before any impairment measure is taken, at the end of each accounting period, it shall be

evaluated whether there is objective evidence of impairment in the value of the financial assets

being measured at cost or at amortized cost.

When there is objective evidence of impairment, an impairment loss is recognized immediately

in results.

2.6 Properties, plant and equipment

Initial Measurement

All items with a value of more than 50 TVU shall be recognized as property, plant and equipment

assets; those with a lower value shall be recognized as an expense of the period in which they

are acquired.

Property, plant and equipment acquired for the execution of agreements shall be recognized as

property, plant and equipment assets at fair value at the time of measurement, which shall be

made at the termination of the agreement provided that there is an intention to donate or act of

settlement.

Property, plant and equipment items are measured at cost less accumulated depreciation and any accumulated impairment losses.

Subsequent Measurements Real Estate:

The Real Estate is expressed at revalued cost. The revalued amounts are fair market values

determined in valuations made by external professional appraisers, once every 3 years or earlier

if market factors indicate a substantial change in fair value. Any increase or decrease in real

estate revaluation shall be recognized in the revaluation surplus. For buildings, the recognition

of revaluations affects their accumulated depreciation.

Computer and communication equipment, furniture and appliances, office equipment.

Initial measurement

Computer and communication equipment, furniture and appliances, and office equipment are

recognized at acquisition cost or cost including any costs directly attributable to moving the

assets in the location and condition necessary to operate as intended by Fondo Acción. These

assets are measured at cost less accumulated depreciation and impairment losses.

Hereunder, we list the measurements that currently apply to property, plant and equipment.

CATEGORY INITIAL MEASUREMENT SUBSEQUENT

MEASUREMENT

REAL ESTATE COST REVALUATION

FURNITURE AND APPLIANCES COST COST

OFFICE EQUIPMENT COST COST

COMPUTER AND COMMUNICATION EQUIPMENT COST COST

The method of depreciation used shall be straight line.

Depreciation is recognized on the straight-line basis to reduce the cost, less its estimated residual value of the property, plant and equipment.

The residual value for office equipment, furniture and appliances, and computer equipment shall

be zero, for constructions and buildings the residual value shall be 30% of the acquisition cost.

The useful life of the assets shall be as follows according to the class:

ASSETS USEFUL LIFE (YEARS)

Constructions and buildings 30

Office Equipment 10

Computer and communications equipment 5

Furniture and appliances 10

2.7 Investment Properties

Initial Measurement

Investment properties in Fondo Acción, corresponds to Real Estate Donation, carried out by

Mrs. Marta Arango Montoya with the purpose of supporting programs or projects and the actions

that are carried out in the development of the missionary object. This donation has the following

conditions:

I t is of an equity nature The beneficiary of the donation is Fondo Acción

The returns or revenues generated by the assets shall be to the programme or project.

Investment property assets are measured at cost. No depreciation is calculated for these properties.

Subsequent measurements to Investment Properties:

Investment properties are expressed at revalued cost. Revalued amounts are fair market values

determined in valuations performed by external professional appraisers, once every 3 years or

earlier if market factors indicate a substantial change in fair value. Any increase or decrease in real

estate revaluation shall be recognized in the revaluation surplus. The recognition of revaluations

does NOT affect depreciation.

If there are other investment properties in Fondo Acción with a specific destination, the

subsequent measurement shall be determined in due course.

2.8 Impairment of Non-Financial Assets

At each reporting date, FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ, shall review property,

plant and equipment and intangible assets to determine whether there is any indication that such assets

have suffered an impairment loss.

The recoverable value shall be determined as the fair value of the asset, less costs to sell. In all

cases, the value of use shall be zero, since its estimation implies incurring disproportionate costs

and efforts.

2.9 Intangible assets

Intangible assets are acquired computer programs that are expressed at cost less accumulated

amortization and accumulated impairment losses.

If FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ cannot determine a reliable estimate of the

useful life of an intangible asset, the useful life shall be assumed to be ten (10) years, using the

straight-line method.

ASSETS USEFUL LIFE (YEARS)

Software licenses 10

If there is any indication that there has been a significant change in the amortization rate or

useful life of an intangible asset, the amortization of that asset is reviewed prospectively to

reflect the new expectations.

2.10 Government Subsidies

The agreements and projects of the corporate purpose carried out by FONDO PARA LA ACCIÓN

AMBIENTAL Y LA NIÑEZ with national and international organizations are resources managed by

the entity, therefore, they should be recognized as liabilities at the time of receiving the resources

and reduce this liability according to the disbursements made for the implementation of these

projects or agreements.

In accordance with Guideline 14 of the Technical Council of Public Accounting, contributions

received for the implementation of agreements and projects are collected for third parties. They

cannot be treated as revenues, as they do not meet the definition in the IFRS technical standard

frameworks for SMEs. Collecting money with an obligation to deliver it to another party does not

generate economic benefits and could therefore be considered as items that generate increases

in net assets and rather imply a repayment obligation that meets the definition of liabilities in the

technical regulatory frameworks.

FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ must measure government subsidies at the

fair value of the asset received or to be received. In many cases the entity shall receive cash or

reimbursement of expenses, and therefore few difficulties shall arise in determining fair value.

2.11 Trade accounts payable

Goods and services purchased from a supplier are recognized at the price of the invoice or equivalent

document.

At the end of each accounting period FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ shall

measure their financial liabilities following the following flowchart:

Changes in financial liabilities at fair value are recognized in results.

2.12 Income Taxes

FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ is a non-profit entity exempt from income

taxes, but it must file a declaration of income and assets, in accordance with the provisions of

Article 598 of the Tax Statute.

2.13 Employee benefits

FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ shall classify employee benefits for accounting

purposes into four (4) categories as follows:

a. Short - term benef i ts .

b. Terminat ion benef i ts

c . Long-term benef i ts

d . Pos t -employment bene f i ts

Post-Employment benefits: Since no employee of FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ

is under the pre-Law 50 of 1990 pension scheme, which establishes that old-age pensions shall no longer

be paid by employers but by the pension funds, the Post-Employment benefits of FONDO PARA LA

ACCIÓN AMBIENTAL Y LA NIÑEZ shall correspond only to defined contribution plans.

Other long-term benefits for employees include, for example: unpaid vacations longer than 12

months.

2.14 Revenue recognition

FONDO PARA LA ACCIÓN AMBIENTAL Y LA NIÑEZ shall recognize revenues from ordinary

activities for the fair value of the consideration received or to be received.

Donations in money may be recognized as revenues if they are not conditioned; otherwise they should

be recorded as a liability.

3. Notes and disclosures

3.1 Cash and cash equivalents

Cash and cash equivalents are integrated as:

At the end of the periods 30 June 2019 and 31 December 2018, Fondo Acción does not present

values represented by cash and cash equivalents that are restricted.

Description Jun-30-19 Dec-31-18

Cash in Hand and Banks

Petty cash: 500 208

Banks (1) 5.940.928 2.709.491

Investments (2) 10.050.048 9.213.633

Total 15.991.476 11.923.332

(1) Banks include current and savings accounts opened in Bancolombia and a current

account number 90110000034 opened in Bancolombia abroad (Puerto Rico).

(2) Fondo Acción has investment trusts in the following trustees Servitrust, GNB and

Fiducolombia.

The types of accounts that are held are: current bank accounts, savings accounts and trust

accounts in which the resources delivered for agreements developed by Fondo Acción in its

corporate purpose are held.

3.2 Accounts Receivable:

Customer balances are integrated as:


TRADE ACCOUNTS RECEIVABLE AND OTHERS Loans to private borrowers “Community Redd + Portfolio (1)

Acapa y Bmf 2.264 43.372

Cajambre 21.997 141.758

Bc&Lpbm 27.056 165.635

Concosta 31.547 73.123

Supp 59.318 98.156

Acaba & Pepe 65.642 95.537

Cdd 61.069 25.362

Mutata 21.578 114.338

Miscellaneous Debtors (2)

Suppliers 19.791 11.357

Contractors 20.426 0

Employees 3.450 0 Implementers 233.487 184.044

Others 183.483 175.403

Total 751.108 1.128.086

(1) Fondo Acción in the Pacific region has worked since 2015 as executor of the USAID

Connected Landscapes Program and has served as an implementing agent and authorized

representative and ally of twenty (20) ethnic communities: nineteen (19) Community Councils

of Black Communities and one (01) Indigenous Major Cabildo, owners of nine (09) REDD +

community projects, which are now represented by Fondo Acción for the search for resources

and sales of carbon certificates grouped in what is called Community Portfolio REDD +

(hereinafter Portfolio), consisting of the projects of 1) ACAPA-Bajo Mira and Frontera, 2)

Cajambre, 3) Bajo Calima and La Plata Bahía Málaga, 4) Concosta, 5) Río Pepe and ACABA, 6)

Sivirú, Usaragá, Pizarro, Pilizá (SUPP), 7) Carmen del Darién, 8) Mutatá and 9) Chocó Darién

conservation corridor.

The first 8 projects have implemented REDD+ and MRV activities from 2013 to date, and have

a monitoring, reporting and verification plan in accordance with the VCS/CCBA standards, now

YERRA, to generate a potential of 6.3 million carbon certificates, corresponding to the period

between 2013 and 2017.

These activities described were carried out through processes of full and informed participation with

members of the communities that own the projects for viable, legitimate, coherent construction that

respects collective rights.

In December 2016, through the Tax Reform (law 1819), the National Government created the

Carbon Tax, which determined that the purchase of fossil fuel and natural gas for energy

purposes would be recorded with a value of 15,000 pesos for the year 2017 per ton of carbon

dioxide (CO2) that said fuel produces once consumed and that would increase in the CPI

(inflation) plus one point until reaching the price of a Tax Value Unit - TVU.

In 2017 the Ministry of Finance and Public Credit and the Ministry of Envi ronment and

Sustainable Development issued Decree 926 through which it was determined that those

required to pay the carbon tax could by purchasing carbon certificates declared Carbon Neutral

and so the obligation to pay the tax would not be caused.

The above, opened a window of opportunity for the sale of carbon certificates that were previously

marketed in the international market, under foreign laws and different languages; As a result,

companies such as those that are part of the PRODECO Group became interested in the Portfolio

and under the condition that the projects that are part of it were verified and signed a purchase

agreement to declare themselves carbon neutral until the year 2020.

To give continuity to the development of REDD+ Projects, Fondo Acción seeks to advance and

support actions aimed at the verification of the projects of the REDD+ Pacific Community Portfolio

before the VCS/CCBA standards, today YERRA.., therefore, it requested the Board of Directors, in

ordinary session OS No. 119-153 dated February 7, 2018, to fund through a mutual agreement

without interest, without administrative costs and with the obligation to return the money with the

resources obtained from the sale of carbon certificates, the verification of eight (08) of the REDD+

projects of the REDD+ Community Portfolio, in order to accelerate the verification process and thus

have the carbon certificates in the shortest time possible.

Once the request for funding was authorized by the Board of Directors of Fondo Acción, it w as

proposed to the Community Councils and the Indigenous Major Cabildo, to celebrate a mutual

contract without interest, without administrative costs and with the obligation to return the money

with the resources obtained from the sale of carbon certificates in order to advance the

verification of the REDD+ project, so in March 2018 the legal representatives obtained the

approval of the Assemblies for the execution of this contract.

On April 5, 2018, the Community Councils, the Indigenous Major Cabildo and Fondo Acción met in

Bogotá to take stock of the assemblies held and to discuss issues related to the verification of the

projects that are part of the Portfolio, the sales agreement with the Prodeco Group and the

advanced negotiations for the sale of Carbon Certificates, the USAID "Paramos y Bosques" and

the Fondo Colombia Sostenible calls, the funding and resolution of the doubts raised by each

community council member of the REDD+ Community portfolio as stated in the minutes of the

meeting, which are an integral part of the contract.

(2) Miscellaneous Debtors correspond to accounts receivable for advances drawn on suppliers,

contractors, workers and executors, where their legalization or recovery is made before the end

of the second half of 2019.

The heading of other debtors corresponds to the collection for concepts of Disabilities to the

EPS also drawn up travel orders in the last days of the month of June 2019 legalized in July

2019.

3.3 Financial Assets

Financial assets consist of:

(1) In ordinary session OS 116-150 of August 2017 the Board of Directors and Administrative

Council of the Account of the Americas (Maximum governing body of Fondo Acción), approved in

the Strategic Plan and Investment Plan for the period 2017-2020 whose Strategic Objective 3

(Consolidate the financial sustainability of the organization), by virtue of which it was approved to

allocate up to $2,5 million dollars in accumulated returns on the assets of the Americas, from the

Missionary Investment Sub-Account for the creation of an impact investment fund, understood as

those that seek to generate "Environmental, social and financial returns, in areas consistent with

the mission of Fondo Acción"

The resources of the impact investment fund may be allocated as a priority capital investment,

with minority shareholdings, in enterprises and companies with operations in Colombia, which

have an impact on:

Community: Initiatives and/or ventures that facilitate the inclusion of communities as

suppliers and/or customers in business models.

Private sector: Establishment of synergies and alliances with for-profit companies (aligned

with the values and mission objectives of Fondo Acción), which add value and contribute

to maximizing environmental, social and economic impacts

Behavior: Companies and business models that st imulate changes in social

behavior and economic agents, highlighting the responsibil i ty for the

consequences of individual actions on the environment, and the wel l -being of

children

Impacts and metrics: It is essential to determine the commitment of the team and the

business potential to generate impacts aligned with the missionary purpose of Fondo

Acción.

MUCHO COLOMBIA SAS, is a platform of conscious consumption that connects consumers with local

producers (environmentally and/or socially responsible) through a technological application of markets

and recipes and a portal of content on responsible food. MUCHO COLOMBIA states that the way food

is eaten and prepared can maintain health, reduce environmental footprint and reduce social inequity

It also proposes a solution to the lack of connection between city and countryside, and of information

on conscious eating that prevents the use of local consumption as an engine for social change.


Financial Assets Shares

Other Investments - Mucho Colombia (1) 430.842 430.842

Financial Assets in Foreign Currency

JP MORGAN (2) 142.006.023 142.081.472

Total 142.436.865 142.512.314

The mission of MUCHO COLOMBIA is to inspire more sustainable habits by reconnecting

consumers with their food, its origin, its producers, its flavors, textures and its culinary

possibilities.

Fondo Acción makes a capital contribution to Mucho Colombia SAS according to Act No. 5

"Extraordinary General Shareholders' Meeting" equivalent to 12,925 shares at a par value of

$10,000 for a total contribution of $129,250,000 (one hundred and twenty-nine million two

hundred and fifty thousand pesos in current currency), is a value corresponding to 25% of

the capital stock. Plus an additional issue premium of $301,591,950 (Three hundred and one

million five hundred and ninety-one thousand nine hundred and fifty pesos).

(2) Financial assets in foreign currency consist of an investment account which is managed by the financial entity JP Morgan, which has its headquarters in the United States, these resources correspond to the equity of Fondo Para La Acción Ambiental y La Niñez.

As of June 30, 2019, JP Morgan has a balance of USD 44,298,391 which is recorded at the cut-off

TRM (Representative Market Rate) of $3,205.67 and as of December 31, 2018 the balance was

USD 43,720,739 at TRM 3,249.75.

3.4 Property, Plant and Equipment

The following is a detail of the movement of property, plant and equipment during the period:

Description as of June 30, 2019 Constructions and

buildings Office Equipment Computer equipment Total

Cost

Balance as of January 1, 2018 1.385.335 16.529 97.769 1.499.634

Additions 0 32.719 37.767 70.486

Revaluation 944.020 - - 944.020

Balance as of December 31, 2018 2.329.355 49.248 135.537 2.514.140

Additions

- 3.500 19.826 23.326

Revaluation - - -

Balance as of June 30, 2019 2.329.355 52.748 155.363 2.537.466

Description as of June 30, 2019 Construction and buildings depreciation

Office equipment

depreciation

Computer

equipment depreciation

Total

depreciation

Depreciation

Balance as of January 1, 2017 (96.973) (9.918) (44.172) (151.063)

Depreciation expense (32.324) (6.489) (30.253) (69.066) ( Balance as of December 31, 2018 (129.297) (16.407) (74.425) (220.129)

Depreciation expense as of June 2019 (25.021) (4.503) (13.512) (43.036)

Balance as of June 30, 2019 (154.318) (20.910) (87.937) (263.165)

Book Value as of June 30, 2019 2.175.037 31.838 67.426

2.274.301

The Constructions and Buildings are made up of the offices owned by Fondo Acción located

in the city of Bogotá at Kra 7 No. 32-33 floor 27, deeds number 837 of the notary 8, 2130

notary 32 and 7158 notary 71 of the circuit of Bogotá.

Plant and Equipment are depreciated in a straight line and according to the table described in

the asset policy for their useful life.

No impairment losses were recognized in property, plant and equipment in the periods

presented, here was no indication of impairment that would require the calculation of the

recoverable amount and its comparison with the book value.

In 2018, commercial appraisals of property, plant and equipment were carried out, resulting in

their recognition at fair value.

3.5 Investment Properties

The investment properties are donations in buildings and equipment given by Mrs. Martha

Arango to the Glen FBC Scholarship Fund, which aims to "Support the development of

knowledge and skills in individuals and organizations involved in early childhood projects.

They are made up of:

In 2018, commercial appraisals of investment properties were carried out, resulting in their

recognition at fair value.

Description Jun- 30-19 Dec-31-18

Constructions and Buildings

Apartment City of Cali (Valle) 198.878 198.878

Increase by Commercial Appraisal 30.835 30.835

Total Apartment City of Cali (Valle) Appraised 229.713 229.713

Apartment Sabaneta (Antioquia) 400.049 400.049

Increase by Commercial Appraisal 347.607 347.607

Total Apartment Sabaneta (Antioquia) Appraised 747.656 747.656

Finca Rionegro (Antioquia) 127.624 127.624

Increase by Commercial Appraisal 1.380.069 1.380.069

Total Finca Riongro (Antioquia) Appraised 1.507.693 1.507.693

Total Investment Properties 2.485.062 2.485.062

3.6 Intangible

The intangibles are made up of:

Description as of June 30, 2019 Apoteosys

licenses Oracle

Licenses

Office Pro-

plus licenses

Fortogate-Endpoint

Licenses Total

Cost

Balance as of January 1, 2018 9.744 7.404 19.339 - 36.487

Additions - - - -

Balance as of December 31, 2018 9.744 7.404 - 36.487

Additions - - 4.494 13.220 17.714

Revaluation - - -

Balance as of June 30, 2019 9.744 7.404 4.494 13.220 54.200

Description as of June 30, 2019 Apoteosys

licenses amortization

Oracle Licenses amortization

Office Pro-

plus licenses

amortization

Fortogate-Endpoint

Licenses amortization

Total

amortization

Amortization

Balance as of January 1, 2017 (1.593) (740) (44.172) - (46.505)

Amortization expense (1.937) (1.111) (30.253) - (33.301) ( Balance as of December 31, 2018 (3.530) (1.851) (74.425) - (79.806)

Amortization expense as of June, 2019 (484) (370) (13.512) - (14.366)

Balance as of June 30, 2019 (4.014) (2.221) (87.937) - (94.172)

Book Value as of June 30, 2019 5.730 5.183 13.220 39.972

License for the accounting program "Apoteosys" which shall be amortized in 10 years.

Oracle license, which is necessary for the operation of "Apoteosys"

Office Pro Plus licenses are acquired in 2017 for 5 new computer equipments of Fondo Acción.

In February 2019, 6 Office Professional - Pro Plus licenses are acquired

Also in February 2019 Fortigate - Endpoint license is acquired, being a security system for the software

3.7 Prepaid expenses

This value is made up of payments from the GEF Sustainable Livestock Agreement to livestock

farmers for environmental service payments.


1.5

90

Prepaid expenses 1.590 1.590

Total prepaid expenses 1.590 1.590

3.8 Accounts Payable

Accounts payable are made up of:

(1) The Commission to be paid corresponds to the administration of the Americas Initiative

Trust.

(2) The other accounts payable correspond to the concepts of Suppliers of goods and services,

fees, among others.

(3) This item corresponds to the deductions made for salaries, fees, commissions,

services, leases and purchases in June 2019, which are consigned to the DIAN in July

2019.

Without exceptions, all accounts payable are short term. The book values of accounts payable to

suppliers are considered quantified at fair value.

3.9 Employee Benefits

3.9.1 Employee Benefits:

Employee Benefits are made up of short and long term:


Contributions to health entities

37.641

34.982

Contributions to ARL Professional Risks 2.094 2.095

Contributions lCBF, SENA, CCF 26.036 25.166

Promissory notes 8.917 9.252

Pension funds 50.877 47.237

Voluntary Pension Contributions 8.707 0

Short-term labor obligations (3.9.2) 203.292 272.640

Short term subtotal 337.564 391.372

3.10.5. Long term employee benefits


Leave 77.781 84.359

Long term subtotal 77.781 84.359

Total Employee Benefits 415.345 475.731


Commissions (1) 0 3.125

Other (2) 409.052 322.845

WithholdingTax Payable (3) 46.691 53.026

Total 455.742 378.996

3.9.2. Employee Benefits

Short-term employee benefits correspond to:


Termination indemnities payable

112.509

197.635

Interests on termination indemnities payable 6.657 22.063

Unpaid leave 84.126 52.942

Total 203.292 272.640

3.10 Other Financial Liabilities and prepayments received The balance of other financial liabilities in the short and long term includes:


Short-Term Committed Money (1) 132.775 455.255

Long-term employee benefits (5) 77.781 84.359

Long Term Deposits Received (2) 141.597.169 141.827.717

Revenues Received for Third Parties (3) 8.995.773 3.925.074

Long Term Committed Money (4) 8.317.507 9.194.780

Total 159.121.004 155.487.185

(1) Short-Term Committed Money.

The resources committed in the short term correspond to the following agreements which

are executed in a term of less than one year, among which we find:


IA- Serrania de San Lucas 40.104 71.323

IA - Sieni 188 12.651

IA ERSA Corpochivor 0 163.687

Community Redd + Portfolio 43.453 102.442

Corpochivor (39.496) (39.496)

Funbio 5.660 5.660

AFD Cambiarte 2017 (413) (413)

AFD Video Cambiarte 2017 (13.000) (13.000)

AFD Finanzas del Clima 2018 8 (3.579)

Portafolio Redd + Wildlife Works 82.484 142.357

Asociación Sieni 0 7.337

Art and Climate Change – Julie”s (1.214) (1.214)

Redd Riscales 15.000 7.500

Total Short Term Committed Money 132.775 455.255

(2) Long-term deposits.

It includes the equity of Americas Initiative and the TFCA, which serves as a long -term financing

instrument for promoting programs and projects aimed at the conservation and sustainable use

of biodiversity, as well as the integral development of children in Colombia.


Americas Initiative Equity 116.783.552 117.811.495

TFCA Equity 24.813.617 24.016.222

Total 141.597.169 141.827.717

(3) Revenues received for third parties:

It corresponds to the income generated by the savings and trust accounts of the resources

delivered for the execution of agreements.


Revenues received for third parties 8.995.773 3.925.074

Total 8.995.773 3.925.074

a) Americas Initiative:

There are the following Agreements and Programs

a) Americas Initiative Agreements

It corresponds to the resources committed from Agreements and Programs in execution of Americas Initiative resources:


Anglo Gold II 333.726 327.168

Anglo III 26.651 26.651

RS Propios (463.901) (456.630)

GEF-Fedegan 18 18

Amercias Initiative 3.985.360 467.361

Mal pelo 20.286 18.415

Fiducolombia TFCA (170.966) (55.554)

1CF-PES-Carbon 5.698 1.981

ICF-PES-Biodiversity (43.356) (43.757)

FBG 596.409 579.009

EPI Indirect Costs 1.652 1.484

Grants GNB 100-100025-050 2.565.957 1.365.168

Redlac Secretary 10.203 10.203

RPP - 90110000034 320.051 3.252

Prefactibility Inv. Impact 81.000 80.154

Donation (1.582) (1.582)

Choco Darien 1.615.172 1.584.978

Bajo Calima and Bahia Malaga 75.511 0

Landscapes 3.373 3.722

Service - 90010916550 (84) (85)

Corpochivor 4.291 4.291

GCF adaptation 01-900355-72 7.584 4.883

La Minga 7.977 3.946

FCS BID - 031-000284-08 14.644 0

CHOCO - DARIEN 100 0

Total 8.995.773 3.925.074

(4) Long-term committed money:

It corresponds to the resources committed from Agreements and Programs in execution of:

TOTAL LONG-TERM COMMITTED MONEY Jun-30-19 Dec-31-18

Total (a) Americas Initiative Agreements 3.745.828 6.688.017

Total (b) TFCA Agreements (862.849) 50.732

Total (C) Other sources 5.434.527 2.456.031

LONG-TERM COMMITTED MONEY 8.317.507 9.194.780

Americas Initiative

Agreements

Description

Agreement value Cop $

Balance as of Jun. 30,

2019

Balance as of Dec. 31,

2018

CI Alliance Strategic alliance aimed at minimizing biodiversity loss

4.211.337

38.060

38.050

CI Alliance-Accompaniment

Resources for monitoring the components of the Alliance with CI 349.510

(30.389)

(30.669)

Ecogourmet Supporting cases of excellence where a sustainable and equitable model is applied in fishing and marketing practices resulting in a better quality of life for the populations of artisanal fishermen and the conservation of Colombia's natural resources.

749.924

172

172

Conservation agreements

Definition of areas for conservation giving incentives to the community 481.010

(108.010)

(108.010)

Threatened species

Stimulate research and conservation of species strategically linked to environmental action

plans such as conservation programs.

199.123

2.057

2.057

Cleaner production center

Develop the clean development mechanism (CDM) component to contribute to the reduction

of greenhouse gases through the management of small and large-scale projects.

810.000

6.481

6.481

Gien Nimnicht Scholarship Fund

To support the development of knowledge and skills in individuals and organizations involved

in early childhood projects

1.100.000

118.173

118.380

Api's- TNC Promote and operate the mechanism called "programa conserva Colombia", which provides

financial incentives and technical and administrative assistance to organizations aimed at the

decentralized creation of new public, local and regional protected areas in the country.

889.795

(12.692)

(12.692)

Eco-business Aimed at transforming companies at an industrial level in conjunction with community-based

organizations or groups, which have business units based on the sustainable use of

biodiversity and which act in conjunction with value chains.

1.506.584

492.778

554.689

GEF

Subsidiary agreement Fondo Acción - Fedegan of component two aimed at increasing

connectivity and reducing land degradation by establishing silvopastoral systems, through

differentiated schemes for Payments for Environmental Services (PES)

3.674.235

0

2.678.790

Acapa Technical improvement of coconut cultivation- ACAPA 80.000 25.708 25.708

Malpelo Malpelo equity subaccount. Financial mechanism to co-finance in a sustainable way the

implementation of the management plan of the Malpelo Flora and Fauna Sanctuary in the

Pacific Ocean.

529.200

170.942

(1.182)

1,2,3 por PI Call To achieve positive changes in NGOs and grassroots organizations serving early childhood. 1.600.000 9.886 9.886

Americas Initiative Agreements

Description



2019


2018

Human talent management

Manage the improvement of the human quality of Fondo Acción

240.000

88.482

121.841

ICAA Responding to the challenges associated with tropical forest deforestation

agents in the Pacific and Caquetá

180.000

8.969

58.100

IASerrania San Lucas Promoting the conservation and sustainable use of biodiversity and ecosystem services

(33)

0

Communication and branding

Disclosure and visibility of Fondo Acción 400.000

239.173

301.032

Public Policy Stimulation

The experiences of community work in the field until the takeover. It seeks to

influence national and regional policy so that these essentially facilitate the

sustainable development and conservation of

330.000

167.666

244.074

Inf. systems development

Improve the technical budget and contractual information system 80.000 1.296 1.296

Accounting IFRS Adoption and implementation of international accounting standards 25.000 5.000 5.000

Nagoya Development and production of natural dyes in the Choco region of Colombia,

for the food, cosmetics and personal care industries, under the provisions of the

Nagoya protocol.

150.000

35.588

35.588

Climate change program

It includes climate change adaptation and mitigation projects that seek to

reduce the effects of this phenomenon on populations and biodiversity that help

communities adapt to new ones.

338.922

(2.226)

62.513

Ecotur NGO capacities development

Develop Capacities in NGOs - OCBs in the area of Ecotourism 350.000

55.454

55.454

Donation Small donations platform to collect resources to finance environmental and

childhood projects

840.000

0

Harmos Accompany people and organizations to harmonize knowledge, relationships,

objectives, perspectives, ways of working, in short, to work generating greater

impact and welfare.

510.000

84.894

159.924

High Effect Investments Short and medium term investments in childhood 1.220.000 48.284 48.190

Macarthur III Sustainable environmental markets 142.493 571 571

Feasibility of investments

Impact Investment Alternatives 435.0000 83.213 14.595

Information system optimization 2017-2020

Information System Development for the period 2017-2020 100.000

(29.835)

0

Environmental Education 2017-2020

243.000

144.148

227.068

IKI Implementation Phase

Support the implementation of Colombia's low-carbon development strategy towards a less carbon-intensive economy.

352.000

352.000

352.000

ONFA/FFEM IA proyect To carry out a project on sustainable forest management in the Pacific region. 316.990

314.736

0

Americas Initiative Agreements

Description



2019


2018

Fondo Colombia Sostenible-BID

Decrease the current pressure on the forests of the Colombian Pacific due to increased deforestation, through support for REDD+ projects with Afro-Colombian and indigenous communities in the bio-geographic Choco.

822.195

560.483

1.320.000

Wildlife Project - WCS Development of the third phase of the Wildlife Project, which will allow the design

and implementation of conservation actions in the Andean Amazon foothills

landscape in Putumayo and strengthen the project's actions in the Magdalena

Medio and eastern plains landscapes.

885.000

389.177

399.102

Childhood and Climate Change 2017-2020

Childhood and Climate Change 2017-2020 period 500.000

485.625

0

Americas Initiative total 3.745.828 6.688.017

(b) TFCA Agreements

TFCA Agreements

Description



2019


2018

TFCA visibility and communication

Visibility and communication of the TFCA agreement

82.440

400

400

Yariguies Robles call - 2013

Co-financing of protection, restoration and sustainable use projects in forest areas of yariguies and robles

1.425.000

4.521

4.521

Yariguies Robles call- 2017

To promote the conservation of biodiversity, its ecological processes and environmental services, in order to mitigate or prevent the pressures to which they are subjected.

879.600

36.511

119.623

Yariguies Robles call - 2017

To promote the conservation of biodiversity, its ecological processes and environmental services, in order to mitigate or prevent the pressures to which they are subjected.

(904.280)

(73.812)

TFCA total (862.849) 50.732

c) Other sources

Other sources

Description



2019


2018

GEF

PES Sustainable Livestock-GEF

Subsidiary agreement Fondo Acción - Fedegan of component two aimed at increasing

connectivity and reducing land degradation by establishing silvopastoral systems,

through differentiated schemes for Payments for Environmental Services (PES)

7.533.056

4.812

4.812

ICF-PES biodiversity

Subsidiary agreement for biodiversity and carbon PES components with source of

resources ICF (International climate funda)

2.123.850

71.071

71.071

ICF-PES Carbon

Subsidiary agreement for carbon PES components with source of resource ICF (International climate found) will operate ex-post payments

2.829.849

187.817

(19.555)

RPP Phase II

Implementation of the climate change proposal in Colombia

8.820.000

0

366.339

INTERNATIONAL CONSERVATION

CI Conservation Agreements

Strategic alliance aimed at minimizing the loss of biodiversity

67.500.000

10.727

10.727

ANGLO GOLD

Anglo II

Best practices in mining and the environment

1.700.230

310.971

400.919

USAID

Connected Landscapes

Respond to the transformation pressures associated with the expansion of the agricultural

frontier (agriculture and livestock) and forest degradation and deforestation due to illegal

logging in Caquetá and Pacific, based on previous interventions carried out through

Connected Landscapes in Caquetá and BioREDD + Pacific. The value of the agreement

is updated equivalent in pesos according to the modification No. 8 of Dec. 13, 2017.

24.696.618

100.474

(252.345)

Other sources

Description


Balance as of Jun. 30, 2019


2018

REDLAC

Redlac Secretary

Activities of the Secretary of the environmentalists network

20.227

20.227

20.227

FRENCH DEVELOPMENT AGENCY

AFD Cambiarte 2017

Support for the contest cambiARTE 2017, to bring climate change to all citizens through art to raise

awareness about the challenges and opportunities that this phenomenon has in our lives

35.000

413

7.000

AFD Video Change you 2017

Make a communication product (Video) about the CambiARTE contest, art for climate change 13.000

13.000

13.000

AFD Climate Finance 2018

Make a communication product (Video) about the CambiARTE contest, art for climate change (8)

(8)

AFD Cambiarte 2018 Make a communication product (Video) about the CambiARTE contest, art for climate change 52.836 64.439

MARTHA ARANGO TRUST

MARTHA ARANGO TRUST

Join efforts to carry out certain activities aimed at the integration of climate

change adaptation strategies.

63.931

96.968

GCF NATIONAL ADAPTATION PREPARATION

GREEN CLIMATE FUND

Support the Government in the implementation of the National Climate Change Adaptation Plan

(PNACC) and strengthen the functioning of its Steering Committee, building capacity to plan,

prioritize, implement and monitor climate change adaptation measures in the country.

7.242.853

347.719

750.207

LA MINGA – SWEDEN

LA MINGA

The purpose of this agreement is to finance the implementation of the project/program through the

donation: La Minga (Project) which is described in the project/application document in the annex I

(project document) including budget and results framework. La minga seeks to ensure the

conservation of 3 marine protected regions located along the Colombian Pacific coast: Natural

regional park, La plata, the Gulf of Tribuga.

2.473.857

888.326

914.274

Total Other Sources $434.527 2.456.031

Total Long-Term Committed Money 8.317.507 9.194.780

Other sources

Description



2019


2018

IKI

IKI - IMPLEMENTATION PHASE

Support the implementation of Colombia's low-carbon development strategy towards a less

carbon-intensive economy

12.799.251

34.543

7.955

FFEM

STRENGTHENING OF SUSTAINABLE FOREST MANAGEMENT

1.444.065

301.087

0

BID

FONDO COLOMBIA SOSTENIBLE - BID

Reduce the current pressure on the forests of the Colombian Pacific due to increased

deforestation, through support for REDD+ projects with Afro-Colombian and indigenous

communities in the bio-geographic Choco.

9.208.100

2.648.362

0

P4F

P4F STRENGTHENING OF FOREST MANAGEMENT -NAID

600.000

199.566

0

STRENGTHENING OF THE ACHIOTE PRODUCTIVE CHAIN

STRENGTHENINGOF CHOCO ACHIOTE PRODUCTIVE CHAIN

625.830

178.663

0

The negative balances recorded at the cut-off date are presented basically by cash flow, these

balances are covered by the corresponding sources in the subsequent months with the

disbursements or reimbursements provided for in the Agreements signed.

Fondo Acción does not receive all the resources once the agreement is signed, these are received

as the agreement is executed and reports are delivered to the donor.

Own resources: Corresponds to the balances generated and not executed in the accounts that

are opened for the accounts of agreements and programs managed or executed by Fondo Acción,

these resources are invested in the object of the program itself or that of Fondo Acción and/or

their operating expenses.

3.11 Equity

The equity is classified as: Description Jun-30-19 Dec-31-18

Contributions — Fondo Acción

1.000

1.000

Capital surplus 13.500 13.500

Prior fiscal year loss (205.263) (132.969)

Fiscal year loss (45.595) (72.295)

Retained earnings (losses) IFRS convergence 1.604.502 1.604.502

Revaluations surplus 2.702.532 2.702.532

Total Equity 4.070.676 4.116.271

Fondo Acción was created with a capital of 1 million pesos which comes from our founder-

the government of the United States.

The capital surplus is represented by a server and screen donated in May 2015 by the

Biored program whose resources were from USAID.

In 2018, commercial appraisals were performed on property, plant and equipment and

investment properties, resulting in our recognition of their fair value.

3.12 Revenues for Administrative Expenses The revenues for administrative expenses are as follows:


Administrative Expenses revenues 1.644.600 1.527.094

Total Non-Operating revenues 1.644.600 1.527.094

The revenues of Fondo Acción, reflected as revenues from administrative expenses, come from the resources of the Americas account and from the Forest Conservation Agreement, allocated through Executive Directorate budgets and approved by the Council of the Americas and the TFCA oversight committee, to cover the expenses incurred for the operation of the corporate purpose.

3.13 Administrative Expenses

Administrative expenses included:

Description Jun-30-19 Jun-30-18

PERSONNEL EXPENSES

Salaries & Wages 969.535 962.924

Social Security expenses 251.543 256.315

Social Benefits 141.728 137.630

Worker’s Compensations 20.550 959

1.383.355 1.357.828

GENERAL EXPENSES

Fees 71.655 42.521

Taxes - Property 17.908

Leases 4

Insurance 15.108

Services (1) 35.797

Legal expenses 2.408

Repairs & Maintenance 1.085

Adaptation and Installation 130

Travel Expenses (2) 36.607

Amortization 1.406

Depreciation 28.720

Miscellaneous (3) 17.568

306.715 199.263

Total Administrative Expenses 1.690.070 1.557.090

(1) Services

(2) Travel Expenses


Air Tickets 14.910 15.000

Travel and entertainment expenses 30.855 21.600

Transportation 0 7

Total Travel Expenses 45.764 36.607

(3) Miscellaneous Expenses


Books, Subscriptions and newspapers 11.100 10.000

Toilet and Cafeteria Elements 7.023 5.254

Stationery and office supplies 1.556 0

Urban transport 803 0

Photocopies 544 0

Casino and restaurant 4.681 0

Parking 8 0

Other 9.733 2.313

Total Services Expenses 35.447 17.567


Cleaning and Security staff 824 835

Electrical Energy 7.017 2.502

Fixed telephony 5.817 1.099

Mobile telephony 869 4.088

Internet 2.207 1.626

Mail, postage and telegrams 86 3.957

Advertising 729 181

Administration 23.321 19.873

Others 1.881 1.645

Total Service Expenses 42.750 35.797

3.14 Financial Expenses

Non-operational expenses include:


Financial 110 131

Extraordinary expenses 15 0

Total Non-operational expenses 125 131

They correspond to the bank charges for payments made through the virtual page of

Bancolombia's bank account 039-073360-78 where resources from Americas Initiative are found.

3.15. Subsequent events

Between June 30, 2019 and the date of presentation of the Financial Statements, no events have

occurred that could affect the Financial Statements or the interpretation thereof.

INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2019€¦ · FONDO PARA LA ACCIÓN AMBIENTAL Y LA...

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