To the Management of Association of Citizen ”Nansen Dialogue Centre“ - Skopje

AUDITOR'S REPORT

BALANCE SHEET

As of 31 December

(In thousands of MKD) 

Notes to the financial statements on pages 7 - 13 are part of the financial statements

STATEMENT OF REVENUES AND EXPENSES

For 2005 and 2006 

(In thousands of MKD) 

Notes to the financial statements on pages 7 - 13 are part of the financial statements 

CASH-FLOW STATEMENT

For 2006

(In thousands of MKD) 

Notes to the financial statements on pages 7 - 13 are part of the financial statements   

STATEMENT FOR CHANGES IN FUNDS

For 2006 

(In thousands of MKD) 

Notes to the financial statements on pages 7 - 13 are part of the financial statements

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. ESTABLISHMENT AND ACTIVITY OF THE ASSOCIATION

Nansen Dialogue Center - NDC is association of citizens established at 17.01.2000 according to the Law of Associations of Citizens and Foundations (Official Gazette of RM No.31/98). The Association is registered in the register of the Association of Citizens and Foundations with Registration No. 01/ZG.956/2000.

The Association operates in accordance with the Law of Associations of Citizens and Foundations and a Statute. According them, the Association is non-governmental, non-party and non-profit association of citizens, which operates in the field of strengthening the democratic consciousness, peace, mutual tolerance, dialogue and cooperation in the society, as well as giving basic assistance to those who need it.  The Association's management bodies are Assembly, Executive Body - Board, Manager of the Executive Body - Board and Council.   

The Association is located in Skopje, with address at TC Leptokarija/Sek.No.1-loc.10-A, municipality of Karpos.

NOTE 2. BASIS FOR PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

The financial statements of the Association are conducted in accordance with the Non-Profit Association Accounting Law ("Official Gazette of RM" No. 24/2003) and the accepted accounting principles, practice and accounting standards for a presentation of the balance sheet items, balances of the assets, liabilities, sources of the assets, revenues and expenses, and the operating results on true, fair, confidential, complete, punctual basis.

The amounts in the statements and the notes are stated in thousands of MKD, except when otherwise indicated in the text.

NOTE 3.  BASIC ACCOUNTING POLICIES

The basic accounting policies used for preparation of the financial statements are listed in the following text. The accounting polices of the Association are being adequately applied from year to year.

Cash and cash equivalents

Cash flow Statement requires presentation of the Association's cash that comprises the cash on hand and the cash on bank account in the commercial banks. 

Money at the cash account and at the bank accounts stated in domestic currency are presented in the general ledger at their nominal value, while the foreign exchange currency is stated according to the exchange rate of NBRM at the reporting date. 

Cash-Flow Statement is prepared using the indirect method.

Material and intangible assets

Material and intangible assets (fixed assets) are stated at cost. 

The operating fund of the Association increases for the amount of the value of fixed assets purchased. According to the accounting policy concerning fixed assets, they are all recognized as expenses for the period they are purchased, i.e. when the funds (in cash or non-current assets) are received from the donors. 

The cost of the fixed assets comprise the purchasing price increased for the import customs, VAT, manipulative expenses and all other expenses that can be added to the cost, i.e. to the purchasing expenses.

Depreciation

Material and intangible assets (fixed assets) are depreciated using the straight-line method, by using the official depreciation rates prescribed in the Nomenclature for depreciable assets for non-profit association, so their cost and revaluation are depreciated in equal annual amounts during the estimated utilization period of the fixed assets.

The calculation of the depreciation is performed separately for each item, and not for groups of assets.

Recognition of the revenues and expenses

The recognition of the revenues and expenses for non-profit organizations is based upon the accounting principle for modified presentation of the operating transactions.

The accounting principle for modified presentation of the operating transactions means recognition of the revenues and the expenses during the period of their appearance according to the criteria of measurement and disposal. Revenues, i.e. expenses are measurable when they can be stated at value. Revenues, i.e. expenses are on disposal when they are realized, i.e. when they appear (when collected, i.e. paid) during the accounting period or within 30 days after this period, used for covering this period’s liabilities, i.e. the payment liability arisen during this period.

Amounts stated in foreign currency 

The transactions in foreign currency are stated in MKD according to the Official exchange rate of NBRM at the date of transaction.

Foreign exchange assets and liabilities of the balance sheet are stated in MKD according to the official exchange rates on the balance sheet date. 

The Income Statement includes the net foreign exchange gains and losses that resulted from the conversion of the amounts in foreign currency in the period when they occur.

The average (closing) exchange rates of the denar related to the foreign exchange currencies (for one unit of foreign exchange currency) as of 31 December are as follows:

NOTE 4. CASH AND CASH EQUIVALENTS

(In thousands of MKD) 

Cash and cash equivalents stated in the preview above are the most liquid assets of the Association and they are comprised of cash and the bank account. The Association has no limitations in the continual usage of the cash. 

NOTE 5. OTHER RECEIVABLES 

(In thousands of MKD) 

NOTE 6. PROPERTY, PLANTS AND EQUIPMENT 

(In thousands of MKD) 

During 2006 the Association performed new additions at total amount of 631 thousands of MKD. They totally refer to purchased computer lap-top, printer, fax machine and vehicle. During this period the Association has also performed disposals of one vehicle at amount of 320 thousands of MKD.

During the previous years the Association has calculated and entered depreciation by direct decrease of the value of the equipment and the operating fund, which results in incorrect (understated) carrying value of the equipment, which represents starting point for annual depreciation calculation.  

NOTE 7. ACCOUNTS PAYABLE 

(In thousands of MKD) 

The accounts payable towards suppliers as of 31.12.2006 refer to everyday activities (energy, water supply, telephone, etc). 

NOTE 8. ACCRUED EXPENSES AND DEFERRED INCOME

The accrued expenses and deferred income at the amount of 151 thousands of MKD (2005 - 151thousands of MKD) totally refer to the realized surplus of revenues over expenses for 2006, deferred to further periods.

NOTE 9. OPERATING FUND

(In thousands of MKD)

The Operating fund as of 31st December 2006 is stated in the Statement of Changes in Funds.

According to the Non-Profit Association Accounting Law, the Association is required to apply an accounting policy concerning the fixed assets and operating fund. Namely, each new addition of fixed assets results with increase of the operating fund, i.e. each disposal of fixed assets results with decrease of the operating fund. The operating fund is decreased as for the amount of the annual depreciation along with the entry of the valuation allowance of the fixed assets.

The depreciation for the previous year was entered by decrease of the fixed assets value along with decrease of the operating fund’s value, i.e. the account of valuation allowance was not used (Note 6).

NOTE 10. GRANTED DONATIONS

(In thousands of MKD) 

NOTE 11. OPERATING EXPENSES

(In thousands of MKD) 

The operating expenses in 2006 are at the amount of 16.649 thousands of MKD (2005 - 12.362 thousands of MKD). The most significant item in the operating expenses in 2006 is the salaries (5.124 thousands of MKD) as well as the other non-material expenses (2.394 thousands of MKD) which mostly refer to honoraria fees to persons engaged with agreements for part-time jobs, law services, etc. Other cost items with significant participation in the total operating costs refer to the equipment maintenance services (1.793 thousands of MKD), transportation and communication costs (1.641 thousands of MKD) and costs for office materials (1.371 thousands of MKD). The participation of the other items in the total sum of the operating expenses is insignificant.

NOTE 12.      OTHER REVENUES

(In thousands of MKD) 

NOTE 13.       SURPLUS OF REVENUES OVER EXPENSES 

(In thousands of MKD) 

NOTE 14. REVENUES AND EXPENSES RELATED TODIFFERENT PROJECTS

(In MKD) 

(In MKD) 

(In MKD)