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Action by Churches Together Report of the Auditor to the Governing Board on the Financial Statements 2016

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Action by Churches Together Report of the Auditor to the Governing Board on the Financial Statements 2016 ACT Alliance - Action by Churches Together Le Grand-Saconnex Report of the auditor to the Governing Board on the financial statements 2016 Report of the auditor to the Governing Board of ACT Alliance - Action by Churches Together Le Grand-Saconnex On your instructions, we have audited the financial statements of ACT Alliance - Action by Churches Together, which comprise the balance sheet, statement of income and expenditure and notes, for the year ended 31 December 2016. Management’s responsibility The management is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law and the accounting principles described in Note 2 of the financial statements. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Management is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor’s responsibility 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 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 statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s preparation 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 existence and effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, 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. Opinion In our opinion, the financial statements for the year ended 31 December 2016 comply with Swiss law and the accounting principles of ACT Alliance – Action by Churches Together as described in the Note 2 of the financial statements. PricewaterhouseCoopers SA, avenue Giuseppe-Motta 50, case postale, CH-1211 Genève 2, Switzerland Téléphone: +41 58 792 91 00, Téléfax: +41 58 792 91 10, www.pwc.ch PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity. PricewaterhouseCoopers SA Philippe Tzaud Coralie Dumollard Audit expert Genève, 28 April 2017 Enclosure: • Financial statements (balance sheet, statement of income and expenditure and notes) 3 ACT ALLIANCE Appendix I.a BALANCE SHEET AS AT DECEMBER 31 2016 2016 2015 2015 Appendix /Notes USD CHF USD CHF ASSETS Current assets Cash at bank 1'518'559 1'547'107 2'679'865 2'659'766 Short term deposits 2'000'168 2'037'771 2'000'112 1'985'111 Income receivable net 123'433 125'754 326'140 323'694 Staff advances 46'977 47'860 44'675 44'340 Other debtors 125'117 127'469 91'679 90'992 TOTAL ASSETS 3'814'254 3'885'961 5'142'471 5'103'903 LIABILITIES AND OWN FUNDS Current liabilities Accrued expenses 105'154 107'131 240'808 239'002 Accounts payables 73'102 74'477 92'613 91'918 Funds received in advance (Unspent earmarked contribution) 151'025 153'864 23'150 22'976 329'281 335'472 356'571 353'896 Funds in trust Appeals funds Appendix IV 1'417'262 1'443'906 2'657'234 2'637'304 Appeal Evaluation Fund 26'802 27'305 26'802 26'601 Total Funds in Trust 1'444'064 1'471'211 2'684'036 2'663'905 Own funds General reserve Appendix III / Note 4 A. Restricted Reserve 1'216'451 1'239'321 1'213'656 1'204'554 B. Designated Unrestricted Reserve (Assembly 2018) from 2015 150'000 152'820 150'000 148'875 B. Designated Unrestricted Reserve (Assembly 2018) from 2016 72'000 73'354 C. Unrestricted Reserve at beginning of year 738'208 752'086 352'050 349'410 Result of operations for the year (135'750) (133'711) 386'158 371'485 Currency translation adjustment (4'593) 11'781 Unrestricted Reserve at end of year 824'458 839'956 888'208 881'552 Total general reserve 2'040'909 2'079'278 2'101'864 2'086'101 Total own funds 2'040'909 2'079'278 2'101'864 2'086'101 TOTAL LIABILITIES AND OWN FUNDS 3'814'254 3'885'961 5'142'471 5'103'903 ACT ALLIANCE Appendix I.b STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 2016 2016 2015 2015 Appendix / Notes USD CHF USD CHF INCOME Fees Membership fees Appendix VI 145'583 143'395 148'177 142'546 Income based fees Appendix VI 1'852'547 1'824'703 2'035'870 1'958'507 International coordination fees Appendix VI 732'055 721'053 1'147'075 1'103'486 Total fees 2'730'185 2'689'151 3'331'122 3'204'539 Voluntary Contributions Voluntary contributions unearmarked Appendix VII 552'447 544'144 390'064 375'242 Voluntary contributions earmarked to aims Appendix VII 693'271 682'851 1'162'243 1'118'078 Support to Faith Based CPDE Appendix VII 43'675 43'019 61'812 59'463 Total Voluntary Contributions 1'289'393 1'270'014 1'614'119 1'552'783 TOTAL Income 4'019'578 3'959'165 4'945'241 4'757'322 EXPENSES Staff costs Appendix V.2 2'869'060 2'825'938 3'024'329 2'909'404 Office costs Appendix V.2 532'756 524'749 509'489 490'128 AIM 1 Human Dignity Appendix V.1 21'663 21'338 29'357 28'241 AIM 2 Community Resilience Appendix V.1 92'733 91'340 94'623 91'028 AIM 3 Environmental Sustainability Appendix V.1 69'526 68'481 147'826 142'209 AIM 4 Robust Alliance Appendix V.1 355'336 349'995 308'760 297'027 Provision for doubtful debts and write off Note 4 86'917 85'611 221'951 213'517 Support to Faith Based CPDE 43'675 43'019 75'233 72'374 Other Expenses MENA & COS 34'195 33'681 4'105'861 4'044'152 4'411'568 4'243'928 Interest received (2'795) (2'753) (3'562) (3'426) Other income (57'482) (56'618) ‐ ‐ Exchange (Gain)/Loss Core budget 34'949 34'424 (2'485) (2'391) (25'328) (24'947) (6'047) (5'817) TOTAL Expenditure 4'080'533 4'019'205 4'405'521 4'238'111 SURPLUS / (DEFICIT) FOR THE YEAR BEFORE ALLOCATIONS (60'955) (60'040) 539'720 519'211 Interest capitalized to restricted reserve Appendix II (2'795) (2'753) (3'562) (3'426) Exchange (Gain) / Loss transferred to restricted Reserve Appendix II ‐ ‐ ‐ ‐ Allocation (to) / from 2014/2018 Assembly provision (72'000) (70'918) (150'000) (144'300) SURPLUS / (DEFICIT) FOR THE YEAR AFTER ALLOCATIONS (135'750) (133'711) 386'158 371'485 ACT ALLIANCE Appendix IV NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2016 1. General ACT Alliance was created on January 1, 2010 bringing together the efforts, resources, people and organisations who have been working together since 1995 as ACT International and since 2007 as ACT Development. ACT Alliance is registered as a legal entity, i.e. “Association”, in Switzerland. ACT Alliance is currently composed of 140 member organisations and 7 observers working in 130 countries. ACT Alliance works towards a world community where all God’s creation lives with dignity, justice, peace and full respect for human rights and the environment. Members of the Alliance are working together for positive and sustainable changes in the lives of people affected by poverty and injustice through coordinated and effective humanitarian, development and advocacy work. ACT Alliance has a general assembly (GA) of all members which meets every four years. A Governing Board of up to 19 representatives is drawn from the GA and meets annually. The Governing Board is supported by a smaller Executive Committee of up to 7 members. The ACT Alliance Secretariat is based in the Ecumenical Centre, Geneva, Switzerland. Its role is to support the membership and governance through global level coordination, collaboration and facilitation of special initiatives, thematic groups, policy engagement and ACT’s response mechanism for coordinated humanitarian programmes. This includes the coordination of finances, material aid and personnel mobilised by members in response to emergencies and the processing of ACT appeals from members. The Secretariat also supports international communications, capacity building of the alliance members and global representation of the alliance in different platforms, networks and UN and multilateral bodies. 2. Summary of significant accounting policies These financial statements have been prepared in accordance with the provisions of commercial accounting as set out in the Swiss Code of Obligations (Art. 957 to 963b CO), effective since January 1, 2013. a) Contributions The ACT Alliance Secretariat funding mechanism was adopted in 2010. It is comprised of: Annual Membership fees of USD 1,000 for Members and USD 500 for Observers. Annual Income Based Fees for all members whose 2-year average income is USD 1 million and above.
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