Annual Adudit Report 2010

Page 1

Financial Statements and Independent Auditors' Report

H.E.R.A. - Health Education and Research Association, Skopje 31 December 201,0


H.E.R.A

- Health €dueation

and Researeh AssoeEation, Skopje

Contents

Page I

ndependent Auditors' Report

1

Balance Sheet

3

Statement of lncome, Expenses and Changes in Fund Balances

5

Statement of Functional Expenses

7

Notes to the financial statements

8


ffi GrantThornton Indep enden

t Au dit o s' Re p o r t 1---------------

Grant Thornton DOO lV,H.Jasmin 52 v-1,7 '1000 Skopje ivlacedonia

T *389 (2) 3214 700 F +389 (2) 3214714 www.

g

rant-thornton.com,

To the Executive Committee of H.E.R.A

-

Health Education and Research Association, Skopje

We have audited the accompanying ltnancial statements of Health Education and Research Association Skopje (furthet tefered to as "FI.E.R.A" ot the "Association") which compdse of the Balance sheet zs at31, December 2010, and the Statement of income, expenses and changes in fund balances and Statement of functional expenses fot the yeat then ended, and a summarT of signihcant accounting policies and othet explanatory notes, included on pages 3 to 15. Managemenf s responsib ility for the financial statements The Association Management is responsible fot the preparation and fait ptesentation of these financial statements in accordance with accounting policies and procedutes disclosed as Management determines is necessary to enable that are free from matedal misstatement, whether hnancial statements of the preparation due to fraud ot eror.

in Note 2 and for such intetnal conttol

Audito rs' respon si bil ity Our responsibility is to express an opinion on these financial statements based on out audit.

We conducted our audit in accordance with Intetnational Standards on Auditing. Those standards require that we comply with ethical requitements and plan and perform the audit to obtain reasonable assurance whether the financial statements are ftee from material misstatement. An audit involves perfotming ptocedures to obtain audit evidence about the amounts and disclosures in the ftnancial statements. The procedutes selected depend on the auditors' judgment, including the assessment of the tisks of matedal misstatement of the flnanclal statemeflts, whether due to fraud or error. In making those risk assessments, the auditot considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit ptocedures that ate apptopriate in the cfucumstances, but not fot the purpose of exptessing 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 ovetall presentation of the financial statements.

mk


O

GrantThornton We believe that the audit evidence we have obtained is sufflcient and appropdate to provide a basis

for our audit opinion.

Opinion

In out opinion the financial statements of H.E,.R.A. present fatly, rn all material respects, the financial position of H.E.R.A. as of 31 December 2010, and its financial performance and its cash flows for the year then ended in accordance vrith accounting policies and procedures disclosed in Note 2.

Grant Thotnton

01" t

Skopje,

27 Aprt

201.L

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Fl.E.R.A.

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Health €dueation

ame$

Research Assoeiation, $kopje

Notes to the ftnancial statements

'l

General H.E.R.A - Health Education and Research Association is an independent, non-governmental organization, an association of citizens established during 2000 according to the Law of Associations of Citizens and Foundations (OfficialGazette of RM no.31,/98). The Association is registered in the register of the Association of Citizens and Foundations with Decision no. 01 / 3G.963 /2000 from 20 January 2000 in the Basic Court Skopje 1 in Skopje. The Association opetates in accordance with the Law of Associations of Citizens and Foundations and a Statute. The main bodies of H.E.R.A. are the Assembly, Executive Committee and Executive office. The Association is located in Skopje, 56/1,-4 Debarca Sreet. The Association's mission is inclined towatds achieving enjoyment of basic human rights of women, men and the young who must be cortecdy informed and have appropriate access to high quality conf,tdential services in ordet to make their infotmed choice regatding issues such as their sexuali$, as rvell as the prevention, care and treatment of sexually transmittable infections and HIV, including achievement of fuli protection of the rights of people who live with HIV/AIDS and their close families, conftaception, access to safe and legal abortion and exercise of sexual and reproductive rights. The Association's five ptiotity focus ateas are: Abortion - in order to guarantee the right of choice to any woman, provide access to safe and legal abortion and increase the tate of use of contraception; Adolescents - in order to achieve greater consciousness among the youth with tegard to their sexual and reproductive health and rights and ptovide access to comprehensive information, education and services for the enhancements of sexual and reproductive health among the youth; HIV/AIDS - in order to achieve lower tates of HIV/AIDS prevalence in the country, which is in accotdance with the 2007 - 2011 National HIV/AIDS Sttategy and provide fu1l ptotection of the tights of the persons infected and affected by HIV. Access - in order to sewe each petson with valid information and knowledge in connecuon with his/her sexual and reproductive health and provide access to a variety of services in otdet for each person to be able to exercise his/het health, social, sexual and reproductive dghts; Advocacy - in order to achieve full compliance with the different needs of each individual and to protect his/her rights and in this sense achieve highest possible standatds, hatmonize accotdingly: national policies, regulations, laws and programs in connection with sexual and teproductive health and rights.


H.E.R.A.

-

Health Ec{ueation and R.esearch Association, Skopje

Notes to the finaneial statem'ieflts {eomtinuled} A,s of and fon tl'le year ended 31 Beeen'lhcr 2010

(All amounts cxpnessed in Macedonian Denans asld U$ Dollars unless otherwise stated)

General ieomtinued)

The following table summarizes the Ptojects implemented dudng 2010:

goal

Project name

Strategic

Medical abortion in Macedonia - Providing choice for women

Abortion

Supported by lnternational Planned Parenthood Federation

lnternational Planned Parenthood Sexuality and learning disabilities

Access

Youth friendly services "Sakam da znam" Raising awareness campaign for Human Trafficking Two Litlle Girls Roma Health Facilitators: Macedonia Scaling Up Roma Health Facilitators (RHF) in Macedonia Keeping low prevalence of Domestic Violence

Access

Sexuality Education in Macedonia Capacity buildlng for 11 municipalities in implementing national SRHR strategy HIV PREVENTION CARD FOR MEN WHO HAVE SEX WITH MEN (MSM) HIV PREVENTION CARD FOR YOUNG WOMEN AND GIRLS

Advocacy

Prevention: Testing and counselling

HIV/AIDS

Secretariat of Country Coordinating Mechanism

HIV/AIDS

Nothing About Us Without Us Peer education for prevention of tuberculosis among young people aged 15-25 Sexuality Education in Macedonia - Now make it happen

HIViAIDS

Development of medium{erm Strategic Plan NGO H.E.R.A.

TECHNICAL SUPPORT BY HERA TO

2

Access Access

HIV/AIDS HIV/AIDS HIV/AIDS

Working with boys and girls in rural areas "Boys do matterl" - engaging men and boys in

Skopje

Access Access

of

SPFM

Federation/ Municipality of City Skopje lnternational Planned Parenthood Federation lnternational Planned Parenthood Federation Norwegian Church Aid Norwegian Church Aid United Nations Population Fund lnternational Planned Parenthood Federation Centre for institutional development lnternational Planned Parenthood Federation United Nations AIDS Fund Global Fund to fight HIV/AIDS, Tuberculoses and Malaria Global Fund to fight HIV/AIDS, Tuberculoses and Malaria lnternational Planned Parenthood Federation

Global Fund to fight HIV/AIDS, Tuberculoses and Malaria

YOUTH YOUTH

United Nations Population Fund lnternational Planned Parenthood

YOUTH

Federation

lnternational Planned Parenthood YOUTH

Federation

Capacity

Building

Capacity

Building

lnternational Planned Parenthood Federation

lnternational Planned Parenthood Federation

Accounting policies

Following are the principal accounting policies adopted in the preparation of these financial statements:

2.1

Basis of preparation

The financial statements of H.E.R.A ate prepared under the historical cost convention modified in accordance with the International Planned Parenthood Federation (IPPF)'s accounting polices issued in June 1,992, and revised in June 1995, and the accepted accounting principles, practice and

accounting standards for a presentation of assets, liabilities, funds, revenues and expenses, and the operating results on accutate, fair, confidential, complete and punctual basis.


l{.E.R.A.

- Health â‚ŹdueetEon

{s

and Researeh Association, $kopje

t{otcs to the financial statcmemâ‚Źs {cos'rtinued} As of and fon the year ended 31 December ?01 0 {ANl aneounts expressed in Macedonian Denars and U$ Dollars unless otherwise stated} Basis of preparation (continued)

The financial statements have been prepared as of and fot the years ended 31 December 2010 and 2009. Current and comparative data stated in these financial statements are expressed in Denats as functional currericy, and translated into US Dollars as ptesentation currency.

2.2

Foreign currencies

Transactions and balances

Transactions denominated in foreign curlencies have been translated into Macedonian Denats using exchange tate at the date when amount is teceived ot paid; Translations into US Dollars exchange Income and expenditures in local currency are ttanslated into US Dollars using the ^verage rate obtained from the National Bank of the Republic of Macedonia middle exchange rate on the the exchange of US Dollats during the pedod, as follows 1 US Dollar = 46.8877 Denars;

Assets and liabilities are translated into US Dollats at the exchange rate prevailing as at the year end, using the National Bank of the Republic of Macedonia middle exchange rate on the last day of the reportingperiod as follows: 1 US Do1lar = 46.314 Denats; Exchange differences atising from translation ate taken directly to reserves / fund balances (i.e. not recognized in the statement of income, expenses and changes in fund balances).

2.3

Gash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks and other shotttetm highly liqurd investments with original matudties of three months ot less.

2.4

Fixed assets

Items of equipment ate stated at cost less accumulated depteciation. Cost includes expenses directly attributable to purchase of assets. The operating Fund of the Association increases for the amount of the value of equipment putchased. Equipment is recognized as capital expenditure in the period of acquisition, i.e. when the funds (in cash or in assets) ate received ftom the donors. Depreciation of equipment items is calculated using the straight - line method as to allocate the cost / deemed cost to their tesidual values during the estimated useful life, as follows:

2010

Vehicles, computers, equipment

10-25%

2009 10-25%

Depreciation is charged against the funds.

2.5

Fund

Funds ate initially created by foundets' contributions made in monetary andf or in kind assets carried at their fair values. Subsequently, funds are increased/ decreased through additional foundets' conttibutions, than results (surplus/shortages) fiom opetations during the periods, as well as changes in the net carrying amounts of the equipment (capital expenditures) as explained in Note 2.4.


$4.E.R.A.

*

}$ealth Education agrd Research A,ssoeiation, Skopje

N6tes te the fEnancial staterments (continued) As of and for the year ended 31 Decernber 20tr 0 (All amounts expressed in Macedonian Denars and US Eollars unless otherwise stated)

2,6

Revenue and expense recognition The recognition cdteda of the revenues and expenses of the Association principle for modified presentation of the operating transactions. On this basis revenues and expenses ate tecognrzed

.

are based on the accounting

as foilows:

Revenues are recognized in the accounting period in which they occurred, measurable and available. Revenues are measutable

if they are

if determinable in term of value. Revenues within 30 days

are available when they are generated in the accounting period when occurted or

after the explry of the accounting period, provided that the reveoues refer to the accounting period and are used to cover the liabilities fot the respective accounting period.

'

Expenses are recognized in the accounting petiod in which they occurred ot within 30 days

aftet the explry of the accounting period, ptovided that the related liability has occuted in that accounting period.

3

Gash and cash equivalents 2010 US Dollars

9,966,395

215,192

5,029

108

5,581,701 638,779

130,826 14,972

9,971,424

215,300

6,220,490

145,798

Bank accounts: - in domestic currency

- in foreign currency Cash on hand

4

2009 Macedonian

Macedonian Denars

Denars

US Dollars

Fixed assets Computers and

Medical/ clinical

Furniture Equipment Accessories

equipment

Office Office

Total in Vehicles

Macedonian Denars

Gost of valuation At 01 January 2009

248,782_ 413,115_

1,110,406

248,782

413,'115

1 ,1

64,720

89,630

1,772,303

Additions during the year Disposals

At 31 December 2009/

1

Januarv 2010 Additions during the year

1.772.303

10.406

103,864

Donations

-

258,214

1,769,969

1,769,969

1.769.969

3.800.486

Disposals

At 31 December 2010

313,s02

502,745

1,214,270

139,318

224,990

619,865

33,645

104,409

134,249

984,173 272.303

172,963

329,399

754,114

1,256,476

26,753

50,442

130,497

1,078,209

1,285,901

199,716

379,841

884.611

1.078.209

2.542.377

109,464

188,125

490,541

75.819 113,786

83,716

356.292

122.904

329,659

Accumulated depreciation At 01 January 2009 Charge for the year Release of disposal

At 31 December 2009/1

January

2010

Charge for the year Release of disposal

At 31 December 2010 Net carrying amount

2009

At 01 January At 31 December 2009/ Januarv 2010

At 31 December 2010

788,1 30

1

515.827 691,760

1

,258,109


H.E.R.A.

-

Health Education and Research A,ssociation, Skopje

12

Notes tâ‚Źr tlre financial staternents (continued) As of and fon the year ended 31 December Z&tr0 (All an'lor;nts expressed in Macedonian Denars and US D6llers unless otherwise stated)

Fixed assets (continared)

Office

Office

Computers

and

Furniture Equipment Accessories

Medical/ clinical equipment

Total in US

Vehicles

Dollars

Cost of valuation

6,220 (38e)

At 01 January 2009 Exchange adjustments

"

10,328 (645)

27,760 (1,734)

44,308

(2,768)

Additions during the year Disposals

At 31 December 2009/

1

Januarv 2010

5,831

9.683

26.026

Exchange adjustments

(442)

(73e)

(2,023)

Additions during the year

1,380

1,912

2,215

41.540

Donaiions

467 _ 37,749

(2,737)

38.216

82.059

5,507 37,749

Disposals

At31 December2010

6.769

10.856

26.218

At 01 January 2009

3,483

5,625

15,496

24,604

Exchange adjustments

(1s2)

(270)

(864)

(1,326)

763

2,366

3,043

6,172

4,054

7,721

17,675

(3e5)

(513)

(1,358)

571

1,076

2,783

4,230

8,284

19,100

2,737

4,703

12,264

19,704

1,777

1,962 2,572

8.351

12.090

Accumulated depreciation

Charge for the year Release of disoosal At 31 December 2009/

January

2010

1

Exchange adjustments Charge for the year

29,450

285 22,995

(1

,981) 27,425

Release of disposal

At 31 December 2010

23,280

54,894

Net carrying amount

2009

At 01 January At 3'1 December 2009/

January 2010 At31 December2010

1

2,539

7,118

-

14,936

27,165


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H.E.R.A.

-

hlealth Eduaation and R.esearc&'r Association, $kopje

15

Notes to the financial staternents {contimared} As of and for the yean emded 3n Deeernben ?01 0 (All amounts expressed in Macedonian Denars and tl$ DolNars unless otherwise stated)

6

Accounts payable

As at 31 December 2010 payables in the amount of US Dollats 7,664.38 (2009: US Dollars 775.27), telate to conftacted liabfities which are not settled as of this date. Following table provides details of the Association's payables as at Balance Sheet dates: 2010 Macedonian

Denars

Liabilities for Personal and benefits expenses Trade payables

7

354,968 354,968

US Dollars

2009 Macedonian Denars

US Dollars

33,077

775

33,077

775

7,664 7,664

Gontingencies and eommitments

Tax liabilities The Assosiation's tax books and tecotds, for the years ended 31 December 2010 and 2009, have not been completely inspected by the local tax authorities. Consequentially, H.E.R.A.'s tax l-iabilities may not be consideted frnaltzed. Additional taxes that may arise in the event of tax audit cannot be detetmined with any reasonable accura.cy.

Litigations

At

31 December 2010, there are no legal proceedings raised against H.E.R.A. No ptovision has been made as of the balance sheet date, as professional advice indicates that it is unlikely that any significant loss will arise. In addition, various legal actions and claims may be asserted in the futute against H.E.R.A from litigations and claims incident to the ordinary course of business. Related risks have been analyzed as to Lkelihood of occurence. Although the outcome of these matters cannot always be ascertained with ptecision, the management of H.E.R.A believes that no material liabilities are likely to result.

Commitments

As at 31 December 2010, the Association has commitments in amount of Macedonian Denats 224,999 equivalent to US Dollars 4,858 for intellectual serwices for 2010.

8 Events after râ‚Źporting date After 31 December 2010 - the tepoting date until the approval of these finzncial statements, there ate no adjusting events teflected in the f,nancial statements or events that are matedally signif,cant for disclosure in these ftnanc]al statements.


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