Women’s und in eorgia · Women's Fund in Georgia is a member of the Women's Funding Network...

Women’s Fund in Georgia

Financial Statements for the year ended December 31, 2015

and Independent Auditors’ Report




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Table of Contents

INDEPENDENT AUDITOR’S REPORT ............................................................................................................... 3

STATEMENT OF FINANCIAL POSITION .......................................................................................................... 4

STATEMENT OF INCOMES AND EXPENDITURES ........................................................................................ 5

STATEMENT OF CASH FLOWS ........................................................................................................................... 6

DETAILS OF FUNCTIONAL EXPENSES BY DONOR ....................................................................................... 7

NOTES TO FINANCIAL STATEMENTS .............................................................................................................. 8

NOTE 1: GENERAL INFORMATION ........................................................................................................................................... 8 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .......................................................................................... 10 NOTE 3: CASH AND CASH EQUIVALENT ............................................................................................................................... 11 NOTE 4: GRANTS RECEIVABLE FROM DONORS ................................................................................................................... 12 NOTE 5: ADVANCES TO SUB-GRANTEES ............................................................................................................................ 12 NOTE 6: PROPERTY PLANT AND EQUIPMENT ................................................................................................................... 13 NOTE 7: DEFERRED GRANT INCOME .................................................................................................................................. 14

Crowe Horwath®

Georgian Audit & Consulting Company

Member Crowe Horwath International

Axis Business Palace, 4th floor 2, D. Gamrekeli Str., Tbilisi 0160, Georgia +995 32 290 4522 Tel +995 32 290 4523 Fax

www.gacc.com.ge

INDEPENDENT AUDITOR’S REPORT

To the management of Women’s Fund in Georgia

We have audited the accompanying Financial Statements of the Women’s Fund in Georgia (the Entity)

which comprises the Statement of financial position, Statement of incomes and expenditures, and the

Cash Flow Statement prepared for the year ended 31 December 2015, and a summary of significant

accounting policies and other explanatory notes.

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with the Temporary Accounting Standard for Non-for-profit Organizations approved by

Accounting Standards Committee at the Parliament of Georgia on March 22, 2005. This responsibility

includes designing, implementing, and maintaining internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement, whether due to fraud or

error; selecting and applying appropriate accounting policies; and making accounting estimates that are

reasonable in the circumstances.

Our responsibility is to express an opinion on these financial statements based on our audit. We

conducted our audit in accordance with International Standards on Auditing. Those standards require

that we comply with ethical requirements and 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 statement, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and presentation 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. An audit also includes evaluating the appropriateness of accounting policies

used and the reasonableness of accounting estimates made by management, 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.

In our opinion, the financial statements give a true and fair view of the disbursements made and funds

received for the given period, and of its financial performance.

Georgian Audit & Consulting Company (GACC)

Member Crowe Horwath International

December 27, 2016, Tbilisi, Georgia




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Statement of Financial Position

(All stated in Georgian Lari)




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Statement of Incomes and Expenditures


Year 2015 Year 2014 GRANT INCOME FOR THE PERIOD

Heinrich Boll Stiftung 27,108 - Embassy of the Kingdom of the Netherlands in Georgia 99,597 25,074 French Expertise International 45,237 1,562 International Network of Women's Funds 22,316 18,338 Sigrid Rousing Trust 154,629 68,640 International Women Association Georgia - - Mama Cash 100,556 98,929 Global Fund for Women 46,034 64,399 Filia die frauenstiftung 17,441 290 Estonian Ministry of Foreign Affairs - 77

Slovak AID/PIPA- People in Peril Association - 2,353 Urgent Action Fund 18,079 13,524 United States Agency for International Development 146,569 25,492 OAK Foundation 137,052 65,827 Slovak-Czech Women’s Fund - 202

Activist Convening ECA 264,986 -

Kvinna till Kvinna Foundation 20,127 - Total grant incomes 1,099,732 384,708

OTHER INCOME

Individual donations 11,174 11,293 Interest earned on bank balances 2,931 1,771 Other non-operating income - 861 Total other income 14,104 13,925

SUB-GRANTS GRANTS ISSUED AND OPERATING EXPENSES INCURRED

Sub-grants issued (340,003) (119,986) Administrative and operational expenses (769,413) (275,945) Total sub-grant and operating expenses (1,109,416) (395,931)

Gain/(Loss) from exchange differences 64,113 (18,877)

Other non-operating expenses

-

(317)

(Decrease)/increase in unrestricted net assets 68,533 (16,491) Net assets at the beginning of the year 5,631 22,121 Net assets at the end of the year 74,164 5,631

Accompanying statements are integral part of the Report




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Statement of Cash Flows


Year 2015 Year 2014

Cash flows from operating activities

Grants received from donors 1,249,987 786,138

Individual donations received 11,174 10,674

Interest received 2,931 1,980

Payments to sub-grantees (535,876) (220,797)

Operational expenses paid (765,522) (275,130)

Net cash flow from operating activities (37,307) 302,865

Cash flows from investing activities

Payments for fixed assets acquisition (2,430) -

Net cash flows from investing activities (2,430) -

Cash flows from financing activities

Net cash flows from financing activities - -

Net (decrease)/increase in cash and cash equivalents (39,737) 302,865

Cash and cash equivalents at the beginning of the year 539,618 252,795

Exchange rate difference 47,655 (16,042)

Cash and cash equivalents at the end of the year 547,536 539,618

Accompanying statements are integral part of the Report




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Details of functional expenses by Donor


Expenses BOLL Convening KtK REAP DUTCH LGBTI INWF SRT FILIA RRG GFW USAID MC OAK

Individual Donors

Total Total

2015 2015 2015 2015 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

Sub-grants

issued - - - - - - - - - - 75,458 8,670 - - 14,969 12,362 35,110 30,632 144,472 23,403 - 151 60,388 31,193 9,606 11,222 340,003 119,986

Office Rent 2,937 - - - - - - - - - 16,279 12,380 - - - - - - - - - 2,492 - - - - 19,216 14,872

Communication 724 - 204 - - - - - - - 137

- - - - - - - 80 3,404 3,218 24 - - - 4,493 3,298

Office Uttility 1,254 - 668 - - - - - - - 105 2,223 - - - - - - - - 1,308 2,293 - - - - 3,335 4,586

Fuel expenses - - 907 - 762 204 110 - 516 - 746 806 - - - - - - - 373 2,138 1,941 815 603 - - 5,994 3,927

Stationery - 1,032 887 - 581 -

- - -

- - - - - - - - - 227 406 850 - - - 3,577 406

Training expenses

3,830 21,712 2,344 - 4,476 1,236 2,184 - - 18,213 2,871 3,018 - - - - - - - - 800 - 615 4,464 - - 38,833 26,931

Fundraising expenses

- - - - - - - - - -

- - - - - - - - - 11,053 3,597 - - - - 11,053 3,597

Business trip expenses

43 4,863 3,013 45 6,670 188 4,359 - 525 113 2,997 - - - - - - - - 75 9,688 6,717 11,907 1,448 - - 44,110 8,658

Transportation costs

- - -

632 - 1,631 - 603 -

- 3,432 - - - 9,900 4,708 - - 4,377 7,005 193 - - - 20,768 11,713

Administrative expenses

- - - - - 617

- - -

- - - - - - 183 - - - 14,204 - 2,468 - - - 17,471

Salary 8,313 - 10,403 2,051 78,867 18,766 25,151 1,441 10,126 - 52,334 41,459 13,663 - 2,661 704 923 27,727 - 1,557 55,841 52,820 54,363 25,024 - - 314,695 169,499

Project Presentation

- 786 - - - -

- - - 2,484 - - - - - - - - - 5,584 - 1,875 - - - 10,728 -

PR Event 9,873 - - - - 4,048 4,234 - - - - - - - - - - 604 - - 2,701 2,721 - - - - 16,807 7,373

Bank commission fee

46 66 90 1 185 16 63 1 32 13 135 84 8 - 4 13 5 42 - 4 372 327 565 69 4 - 1,577 658

Depreciation and amortization

- - - - - - 287 - - - - - 338 290 445 445 96 505 - - 1,084 1,037 962 559 75 - 3,288 2,836

Conference expenses

- 234,344 - - - - - - - - - - - - - - - - - - - - - - - - 234,344 -

Co-financing - - - - - - - - 10,515 - - - - - - - - - - - - - - - - - 10,515 -

Other Expenses 90 2,183 1,611 - 7,425 - 7,219 120 - - 1,083 - - - - - - - - - 1,978 - 4,493 - - - 26,081 120

Total Expenses 27,108 264,986 20,127 2,097 99,597 25,074 45,23

7 1,562 22,316 18,338 154,629 68,640 17,441 290 18,079 13,524 46,034 64,399 144,472 25,492 100,556 98,929

137,052

65,827

9,685 11,222 1,109,41

6 395,931




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Notes to Financial Statements

Note 1: General Information

Women's Fund in Georgia is set up by the Educational Cooperation and Development Center.

The fund is registered at the Ministry of Justice of the Republic of Georgia on May 24, 2005.

Tbilisi office location is:

8, Sergo Zakariadze Str., Entrance 4, I floor, Apt. #74, 0177 Tbilisi, Georgia

Women's Fund in Georgia is the first locally established grant making organization which

supports women's groups' activities and initiatives for social changes in Georgia.

The mission of Women's Fund in Georgia is empowering women in Georgia for protection of

their rights, full self-realization and participation in society's life through providing financial

and technical support, capacity building and development of feminist philanthropy.

The vision of Women's Fund in Georgia is strong, equal, recognized and happy women in free,

safe and just world.

Priorities of the Women's Fund in Georgia: protecting women's rights, improving women's

economic opportunities, assisting women living in conflict zones, promoting legislative

initiatives, raising awareness of gender issues, increasing sensitivity of the community

towards women's issues, and supporting women's movement building.

The Fund's activities specifically address the varying, difficult problems that Georgian women

face. The locally established Fund is knowledgeable about the needs of the women who live in

Georgia and for this reason it will be able to help women's organizations and groups to realize

their goals, to create new organizations and innovations. The Fund raises money specifically

for the activities of women's organizations and groups.

Accounting and financial reporting are centralized in office in Tbilisi. The Entity uses

accounting software “ORIS ACCOUNTING” for recording and systematization of the sources

received and disbursements made by each project. The software supports multicurrency

transactions. Fiscal year of the Entity is set from 1 of January to 31 of December. Reporting is

required thereon by these dates. The Entity’s activity includes issuing the small grants.

Originals of supporting documents of the small grants disbursements are attached to the

financial reports, and kept in Tbilisi office.

The structure of the Fund is comprised of the Board of Directors, the Staff, the Advisory

Council and volunteers. The administration procedure of the Fund is simple and includes the

following mechanisms, such as: to announce the operational programs, to determine the grant

amount distributed annually, to produce annual reports for accountability, to conduct on-site

evaluation and monitoring of the programs. The decision-making will be based on a

participatory model and will involve representatives of the target groups.




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Staff:

• Nana Pantsulaia – Executive Director

• Ekaterine Gejadze - Program Coordinator

• Guliko Vediashvili – Grant Financial Manager

• Ana Chiladze - Grant Manager

• Magda Berdzenishvili – Accountant

• Ia Kajaia – M&E Manager

• Tamar Tarkhan-Mouravi – Fundraiser

• Ana Gunia - Program Assistant

Board of Directors:

• Nana Pantsulaia (chair)

• Asmat Beshidze

• Nana Shugladze

• Maka Lomadze

Actors and stakeholders of the Women's Fund in Georgia:

Local and international NGOs including women's organizations, women's networks, donors and sponsors, government institutions, self-governing bodies, businesses, banks (local, joint or foreign), individuals, celebrities, experts, media, local communities. Women's Fund in Georgia is a member of the Women's Funding Network (WFN), the International Network of Women's Funds (INWF) and Grant makers Without Borders (Gw/oB), Association of Women's Rights in Development (AWID).

Applied abbreviations

BOLL - Heinrich Boll Stiftung

Convening – Activist Convening ECA

KtK – Kvinna till Kvinna Foundation

REAP - United States Agency for International Development

DUTCH - Embassy of the Kingdom of the Netherlands in Georgia

LGBTI - French Expertise International

INWF - International Network of Women's Funds

http://www.womensfundingnetwork.org/

http://inwf.org/

http://awid.org/




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SRT - Sigrid Rousing Trust

FILIA - Filia die frauenstiftung

GFW - Global Fund for Women

USAID - United States Agency for International Development

RRG - Urgent Action Fund

MC - Mama Cash

OAK - OAK Foundation

Note 2: Summary of Significant Accounting Policies

Basis of preparation

The financial statements have been prepared in accordance with Temporary Accounting

Standard for Non-for-profit Organizations approved by Accounting Standards Committee at

the Parliament of Georgia on March 22, 2005. The temporary standard is based on underlying

assumptions and general principles of International Financial Reporting Standards (IFRS).

The accompanying financial statements have been prepared and presented using the

historical cost principle and accrual basis of accounting. Financial statements are prepared in

the national currency of Georgia, the Lari (GEL), which is the Company’s functional currency.

The principal accounting policies adopted are set out below.

Foreign currencies

Transfers from donor organizations and transactions denominated in foreign currency are

translated into GEL using the daily exchange rates of the TBC Bank. Year end balances are

translated at the official exchange rate of National bank of Georgia (NBG) of December 31 of

respective year.

Cash

Cash includes cash balances at the Bank accounts and petty cash.

Grants from donors

Grants from donors are initially recorded as grants receivable and simultaneously as deferred

grant income to the balance sheet when the grant agreement with donor is signed and it is

probable that the Fund will receive the grant funds

Deferred grants are then transferred to the income statement and recognized as the period

income in the period(s) when the relevant expenses of the program are recognized. Grants are




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recognized in the period income with the amount equivalent to the expenses incurred for the

respective program.

Sub-grants issued

Sub-grants issued are recorded in the balance sheet as advance upon transfer of funds to sub-

grantees by the Fund

Upon receipt of appropriate sufficient evidence of work performed and expenditures incurred

by sub-grantees, the issued sub-grants are recorded as sub-grants closed in proportion of

work performed and documentation received in the statement of revenue and expenses.

Fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation. Depreciation

is provided on all fixed assets based on historical cost. The annual charge for depreciation is

computed using straight line method.

Revenue recognition

Revenue includes grants from various donors, donations from individuals, and interest

income on the bank balances. Grant income is recognized when the relevant expenses of the

program are incurred. Donations from individuals and interest income are recognized as

received.

Note 3: Cash and cash equivalent


31-Dec-15 31-Dec-14

Cash on hand 170.56 368

Cash in Bank in GEL 23,786 7,041

Cash in Bank in USD 49,795 46,276

Cash in Bank in EUR 258,377 311,703

Cash in Bank in GBP 215,406 174,230

Total cash and cash equivalent 547,535 539,618




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Note 4: Grants receivable from donors


31-Dec-15 31-Dec-14

Mama Cash - 118,065

International Network of Women's Funds - 17,382

OAK Foundation 86662.5 265,778

Global Fund for Women 1.47 6,360

Sigrid Rousing Trust 141456 356,178 Embassy of the Kingdom of the Netherlands in Georgia

38286.83 226,527

French Expertise International 1369.88 55,384

United States Agency for International Development 0.98 2,093

Heinrich Boll Stiftung - 34,215

Activist Convening ECA 40.68 -

Kvinna till Kvinna Foundation 22847.77 -

Total grants receivable from donors 290,666 1,081,982

NOTE 5: Advances to sub-grantees


31-Dec-15 31-Dec-14

Funds to subgrantors 24488.22 -

DGP subgrantors 147533.25 157,720

Open Door subgrantors 16657.78 58,063

RRG subgrantors 20908.03 23,061

OAK subgrantors 103985 69,173

SRT subgrantors 125850 75,458

FEI subgrantors 71409 -

KtK subgrantors 31862.5 -

FILIA subgrantors 32077.5 -

Total advances to sub-grantors 574,771 383,475




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NOTE 6: Property plant and Equipment


Land

Computer equipment

Furniture Office

equipment Vehicles Total

Historical Cost

At January 1, 2014 1,660 5,335 11,135 5,401 25,673 49,204

Acquisitions - - - - - -

Transfers/Disposals - - - - - -

At December 31, 2014 1,660 5,335 11,135 5,401 25,673 49,204

Acquisitions - 1566 415 449 - 2,430


At December 31, 2015 1,660 6,901 11,550 5,850 25,673 51,634

Accumulated depreciation

At January 1, 2014 - 2,817 9,238 1,512 25,673 39,239

Charge for the year - 1,067 689 1,080 - 2,836


At December 31, 2014 - 3,884 9,927 2,592 25,673 42,075

Charge for the year - 1,113 897 1,278

3,288


At December 31, 2015 - 4,997 10,824 3,870 25,673 45,363

Net book value

At December 31, 2014 1,660 1,451 1,208 2,809 0 7,128

At December 31, 2015 1,660 1,904 727 1,980 0 6,271




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NOTE 7: Deferred grant income


31-Dec-15 31-Dec-14

Heinrich Boll Stiftung - 34,215

Embassy of the Kingdom of the Netherlands in Georgia 348,197 447,795

French Expertise International 71,607 115,300

International Network of Women's Funds - 16,378

Sigrid Rousing Trust 452,031 606,660

Mama Cash 61,857 162,413

Global Fund for Women 23,813 38,825

US Embassy - 171

Estonian Ministry of Foreign Affairs - 373

Urgent Action Fund 16,561 34,641

United States Agency for International Development 23,413 169,982

OAK Foundation 233,297 370,349

Received money from fundraising - 10,342

Activist Convening ECA 24,161 -

Kvinna till Kvinna Foundation 56,901 - Filia die frauenstiftung 31,232 -

Closing balance of deferred grants 1,343,072 2,007,444

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