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Financial statements

By Martha Morgan,2014-05-16 09:22
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Financial statements

    Financial statements

World Blind Union

    Seventh General Assembly Geneva, August 20008

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Table of content

    Purpose ......................................................................................... 2 Independent auditor’s report ......................................................... 2 Notes to financial statement for the year ended December, 2007 5 Note A Nature of activities and summary of significant

    accounting policies ........................................................................ 5

    Nature of activities ..................................................................... 5

    Basis of accounting ................................................................... 6

    Specific accounting policies ....................................................... 6

    Board restricted ......................................................................... 6

    Temporarily restricted ................................................................ 6

    Permanently restricted ............................................................... 7 Note B Membership fees ............................................................ 7 Note C Tax status ....................................................................... 7 Note D Commitments and contingencies ................................... 7

Purpose

    Statements of cash receipts and disbursements with changes

    reflected in unrestricted, temporarily restricted, and permanently

    restricted amounts for the year ended December 31, 2007

Independent auditor’s report

    To the Board of Directors of

    World Blind Union

    c/o American Foundation for the Blind, Inc.

    11 Penn Plaza, Suite 300

    New York, NY 10001-2018

We have audited the accompanying statement of cash receipts

    and disbursements with changes reflected in unrestricted,

    temporarily restricted, and permanently restricted amounts of

    World Blind Union for the year ended December 31, 2007. The

    financial statement is the responsibility of the World Blind Union’s

    management. Our responsibility is to express an opinion on the

    financial statement based on our audit.

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    We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

    As described in Note A, the financial statements were prepared on the pure cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles.

    In our opinion, based on our audit, the financial statement referred to in the first paragraph present fairly, in all material respects, the statement of cash receipts and disbursements with changes reflected in unrestricted, temporarily restricted, and permanently restricted amounts for the year ended December 31, 2007 on the basis of accounting described in Note A.

Dinowitz & Bove Certified Public Accountants, PC

    150 Broadway, Suite 1105

    New York, NY 10038

    (212) 973-0935

June 6, 2008

    New York, NY

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Statement of cash receipts and disbursements

    WORLD BLIND UNION

    STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

     WITH CHANGES REFLECTED IN UNRESTRICTED, TEMPORARILY RESTRICTED, AND PERMANENTLY RESTRICTED AMOUNTS

    FOR THE YEAR ENDED DECEMBER 31, 2007Permanently RestrictedUnrestricted Temporarily Restricted

    General Subtotal Hermoine Grant Assembly Hermoine Grant Arne Husveg Pedro Zurito Subtotal Temporarily Calhoun Operating (Board Calhoun Development Scholarship Permanent UnrestrictedDesignated)Scholarship FundFundFundOfficeUnrestrictedRestrictedScholarship FundTotalCASH RECEIPTSMembership Dues154,718 -154,718 154,718 Contributions2,242 2,242674184,860 187,776185,534 Unrealized gain (loss) on foreign exchange conversion - - (11,172) (11,172)(11,172) Interest Income7,151 3,511 10,662 2331,285 1,015 2,309 15,5044,842 Net assets released from restrictions111,519 111,519 (109,709)(1,810) -(111,519)

    Total cash receipts$ 3,511275,630$ $ 279,141$ 233(525)$ 1,689$ 66,288$ $ -67,685$ 346,826$ CASH DISBURSEMENTS

     Officers and Executive Committee70,504 70,50470,504

     Other Committee and Work Group Expenses

    Children's Committee5,272 5,2725,272

    Low Vision Committee4,874 4,8744,874

    UN Committee10,621 10,62110,621

    Youth Committee3,150 3,1503,150

     Permanent Office expense134,709 134,709134,709

     Postage, Printing, and Translation Services900 900900

     Travel advance (returned in 2008)4,000 4,0004,000

     Grant to Louis Braille Museum5,000 5,0005,000

     Scholarships and grants1,810 1,8101,810

     Professional services6,785 6,7856,785

     Membership fee to UPU1,664 1,6641,664

     Government filing fees100 100100

    Total cash disbursements$ -249,389$ $ 249,389$ --$ -$ -$ $ --$ 249,389$ Excess of cash receipts over cash 26,241 3,511 (525) 233 1,689 66,288 disbursements - 97,437 29,752 67,685

     (65,000) 65,000 Funds transfer - Board Restricted - --

    Cash, beginning257,246 137,877 395,123 10,38223,029 44,892 162,447 35,000240,750 670,873

    Cash, ending$ 206,388218,487$ $ 424,875$ 10,61522,504$ 46,581$ 228,735$ $ 35,000308,435$ 768,310$

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    Notes to financial statement for the year ended December, 2007

    Note A Nature of activities and summary of

    significant accounting policies

    Nature of activities

    The World Blind Union (the Union) is an international non-profit association whose constitution was adopted at the Founding Assembly in Riyadh, Saudi Arabia on October 26, 1984, and amended at the 3rd General Assembly in Cairo, Egypt, November 2-6, 1992, at the 4th General Assembly in Toronto, Canada, August 26-30, 1996, at the 5th General Assembly in Melbourne, Australia, November 20-24, 2000, and at the 6th General Assembly in Cape Town, South Africa, December 2-10, 2004. The Union was formed in accordance with the law of July 1, 1901 of the French Republic. The finances are directed from the Treasurer’s home office in New York, NY. World Blind Union had one bank account in Auckland, New Zealand which was closed January 2006. World Blind Union maintains two bank accounts in New York, NY. World Blind Union opened a bank account in Toronto, Canada where it is setting up a permanent office. Membership fees were collected by the Treasurer in New York.

    The Union’s purpose is to protect and promote the human, civil, political, economic, social, and cultural rights of blind and partially sighted people; to enable blind and partially sighted persons to join together and express their views and aspirations and, in accordance with democratically adopted decisions, to take collective action to work towards the advancement and well-being of blind and partially sighted people with the goal of equalisation of opportunities and full participation in society, if necessary by special, legal or administrative measures; to strengthen the self-awareness of blind and partially sighted persons, to develop their personality, self-respect and sense of responsibility, to provide an international forum for the exchange of knowledge and

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    experience in the field of blindness, and to work for the prevention of blindness.

    Basis of accounting

    The accompanying financial statement has been prepared on the cash receipts and disbursements basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. Under that basis, the only asset recognized is cash, and no liabilities are recognized. All transactions are recognized as either cash receipts or disbursements, and noncash transactions are not recognized. The cash basis differs from generally accepted accounting principles primarily because the effects of outstanding dues and obligations for assessments unpaid at the date of the financial statement are not included in the financial statement.

    Specific accounting policies

    All transactions are recorded on a pure cash basis. Transactions for the year ended December 31, 2007 are recorded in US Dollars. Canadian dollar transactions are converted at the rate of exchange at the date of the transaction. At year end, the cash balance in Canadian dollars is translated at the closing rate and variations arising from these translations are included in the statement of cash receipts and disbursements as unrealized loss on foreign exchange conversion.

    Board restricted

    The board of the Union sets aside funds for the General Assembly which is held every four years. The last General Assembly was held in Cape Town, South Africa, December 2-10, 2004. The General Assembly Fund is used to cover the cost of operating the General Assembly and to subsidize travel and accommodation expenses for developing countries’ delegates who otherwise would be precluded from participating.

    Temporarily restricted

    World Blind Union has four temporarily restricted funds. - Hermoine Grant Calhoun Scholarship Fund provides annual

    scholarships for blind female students for education at the

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    college level in developing countries attending colleges in their

    own countries.

    - Arne Husveg Development Fund provides grants for

    development of organizations for and by blind and partially

    sighted people.

    - Pedro Zurito Scholarship Fund provides scholarships for blind

    youths in developing countries.

    - Permanent Office Fund provides funding for a permanent office

    which will be in Toronto, Canada.

    Permanently restricted

    Hermoine Grant Calhoun Scholarship Fund was established by a

    $35,000 bequest in memory of Hermoine Grant Calhoun. The will

    stipulated that interest earned on the bequest is to be used to

    award annual scholarships to blind female students from

    developing countries attending college in their own country. The

    original bequest is permanently restricted.

    Note B Membership fees

    Total membership fees billed for the year ended December 31,

    2007 amounted to $324,985 (including outstanding balances

    owed from previous years). The amount collected was $154,718

    or 48% of total billings.

    Note C Tax status

    The Union is a not-for-profit organization exempt from federal

    taxes on income under Section 501(c) (4) of the Internal Revenue

    Code.

    Note D Commitments and contingencies

    On July 24, 2007, the Angola Ministry of Finance transferred

    $257,990 into the bank account of World Blind Union and

    requested that the Union retain 10% of the funds transferred and

    return the difference. As of the date of this financial report, this transaction is under investigation by attorneys hired by the Union. In addition, this fund is temporarily deposited in a separate new

    account in the possession of World Blind Union and is not

    recognized in the statement of cash receipts and disbursements.

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