Consolidated Financial Statements and Independent Auditor's Report
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Consolidated Financial Statements and Independent Auditor's Report “Hayastan” All Armenian Fund December 31, 2014 “Hayastan” All Armenian Fund Consolidated financial statements December 31, 2014 Contents Page Independent auditor’s report 1 Consolidated statement of financial position 3 Consolidated statement of comprehensive income 4 Consolidated statement of changes in net assets 5 Consolidated statement of cash flows 6 Notes to the consolidated financial statements 7 “Hayastan” All Armenian Fund Consolidated financial statements December 31, 2014 “Hayastan” All Armenian Fund Members of the Board of Trustees as of December 31, 2014 1. Serzh Sargsyan RA President, President of the Board of Trustees 2. Robert Kocharyan RA Ex-president 3. Bako Sahakyan NKR President 4. Arkadi Ghukassyan NKR Ex-president, Vice President of the Board of Trustees 5. Gagik Harutiunyan Vice President of the Board of Trustees, Chairman of RA Constitutional Court 6. Galust Sahakyan Speaker of RA National Assembly 7. Hovik Abrahamyan RA Prime Minister 8. Eduard Nalbandyan RA Minister of Foreign Affairs 9. Arayik Harutyunyan NKR Prime Minister 10. Arthur Djavadyan Chairman of RA Central Bank 11. Gagik Khachatryan RA Minister of Finance 12. Hranush Hakobyan RA Minister of Diaspora 13. H.H. Garegin II Catholicos of All Armenians 14. H.H. Aram I Catholicos of the Great House of Cilicia 15. Nerses Petros XIX Tarmouni Catholicos Patriarch of the Armenian Catholic Church 16. Very Rev. Mkrtich Melkonian Representative of the Armenian Evangelical Church 17. Mike Kharapian Representative of the Armenian Ramgavar Azadagan Party 18. Vagharsh Ehramdjian Representative of the Armenian Revolutionary Federation 19. Aram Maleyan Representative of the S.D. Hunchakian Party 20. Hirair Hovnanian President of the Armenian Assembly of America, 21. Berge Setrakian President of the Armenian General Benevolent Union 22. Viki Marashlyan Representative of the Armenian Relief Society 23. Arsen Ghazaryan President of the Union of Manufacturers and Businessmen (Employers) of Armenia 24. Jerry Manoukian President of Armenian Medical International Committee 25. Charles Aznavour France 26. Albert Boyajian United States of America 27. Vartan Gregorian United States of America 28. Eduardo Eurnekian Argentina 29. Bedros Terzian France 30. Dikran Izmirlian Switzerland 31. Samvel Karapetyan Russia 32. Mark Geragos United States of America 33. Kabriel Ghenberdji Syria 34. Vatche Manoukian Great Britain 35. Albert Boghossian Switzerland 36. Diruhi Burmayan Brazil 37. Eduardo Seferian Argentina Control committee 38. Vahe Jazmadarian France 39. Gagik Khachatryan Minister of Finance of the Republic of Armenia Independent auditor’s report ¶ñ³Ýà ÂáñÝÃáÝ ö´À ÐÐ, ù. ºñ»õ³Ý 0012 ì³Õ³ñßÛ³Ý 8/1 Ð. + 374 10 260 964 ü.+ 374 10 260 961 Grant Thornton CJSC 8/1 Vagharshyan str. 0012 Yerevan, Armenia T + 374 10 260 964 F + 374 10 260 961 www.grantthornton.am To the Board of Trustees of “Hayastan” All Armenian Fund We have audited the accompanying consolidated financial statements of “Hayastan” All Armenian Fund and its subsidiary, which comprise the consolidated statement of financial position as of December 31, 2014, and the consolidated statement of comprehensive income, consolidated statement of changes in net assets and consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated 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 about whether the consolidated financial statements are free from material misstatement. ²áõ¹Çï, гñÏ»ñ, ÊáñÑñ¹³ïíáõÃÛáõÝ Audit, Tax, Advisory ¶ñ³Ýà ÂáñÝÃáÝ ÆÝûñÝ»ßÝÉÇ ³Ý¹³Ù Member of Grant Thornton International Ltd “Hayastan” All Armenian Fund 4 Consolidated financial statements December 31, 2014 Consolidated statement of comprehensive income In thousand drams Year ended Year ended December 31, December 31, Note 2014 2013 Contribution income 14 7,821,503 3,833,892 Other income 93,789 95,031 Operating expenses 15 (7,666,446) (3,499,204) Administrative expenses 16 (386,363) (428,767) Other expenses (151,561) (204,845) Results from operating activities (289,078) (203,893) Finance income 17 50,688 48,554 Finance expense 17 (6,134) (5,682) Other financial items 18 90,032 7,526 Result before taxes (154,492) (153,495) Income tax expense 19 (11,433) (2,215) Result for the year (165,925) (155,710) Other comprehensive income Items that will not be reclassified subsequently to result Decrease in revaluation reserve - (64,242) Income tax recovery on other comprehensive income - 12,848 - (51,394) Total comprehensive result for the year (165,925) (207,104) The consolidated statement of comprehensive income is to be read in conjunction with the notes to and forming part of the consolidated financial statements set out on pages 8 to 43. “Hayastan” All Armenian Fund 5 Consolidated financial statements December 31, 2014 Consolidated statement of changes in net assets In thousand drams Revaluation Accumulated reserve loss Total as of January 1, 2013 51,394 (583,659) (532,265) Result for the year - (155,710) (155,710) Other comprehensive result for the year (51,394) - (51,394) Total comprehensive result for the year (51,394) (155,710) (207,104) as of December 31, 2013 - (739,369) (739,369) Result for the year - (165,925) (165,925) Total comprehensive result for the year - (165,925) (165,925) as of December 31, 2014 - (905,294) (905,294) The consolidated statement of changes in net assets is to be read in conjunction with the notes to and forming part of the consolidated financial statements set out on pages 8 to 43. “Hayastan” All Armenian Fund 6 Consolidated financial statements December 31, 2014 Consolidated statement of cash flows In thousand drams Year ended Year ended December 31, December 31, 2014 2013 Cash flows from operating activities Result for the year (165,925) (155,710) Adjustments for: Depreciation and amortization 17,400 18,810 Loss on disposal of property and equipment - 34 Impairment loss - 90,142 Income from contribution received (7,815,397) (3,833,610) Income from grants related to assets (6,106) (282) Income tax expense 11,433 2,215 Interest income (50,688) (48,554) Interest expense 6,134 5,682 Movement of the allowance for doubtful receivables 2,954 20 Foreign exchange gain (90,032) (7,526) Operating result before working capital changes (8,090,227) (3,928,779) Change in advances and accounts receivable 459,560 (242,595) Change in inventories 13,250 42,286 Change in accounts payable 978,370 (46,113) Cash used in operating activities (6,639,047) (4,175,201) Contribution received 8,736,451 3,611,794 Grants received 35,095 156,200 Interest paid (6,158) (5,418) Income tax paid (3,884) 4,501 Net cash used in operating activities 2,122,457 (408,124) The consolidated statement of cash flows is to be read in conjunction with the notes to and forming part of the consolidated financial statements set out on pages 8 to 43. “Hayastan” All Armenian Fund 7 Consolidated financial statements December 31, 2014 Consolidated statement of cash flows (continued) Cash flows from investing activities Acquisition of property and equipment and intangible assets (36,953) (15,248) Investment in bank deposits (565,181) (161,639) Interest received 36,321 64,990 Net cash used in investing activities (565,813) (111,897) Cash flows from financing activities Borrowings received, net (29,100) 34,227 Net cash from financing activities (29,100) 34,227 Net increase/decrease in cash and cash equivalents 1,527,544 (485,794) Foreign exchange effect on cash (14,915) 6,593 Cash and cash equivalents at the beginning of the year (refer to note 25) 207,114 686,315 Cash and cash equivalents at the end of the year (refer to note 25) 1,719,743 207,114 “Hayastan” All Armenian Fund 8 Consolidated financial statements December 31, 2014 Notes to the consolidated financial statements 1 Nature of operations and general information “Hayastan” All Armenian Fund was founded on March 3, 1992, in accordance with the decree of the President of the Republic of Armenia. “Hayastan” All Armenian Fund is humanitarian, non-political organization acting in accordance with the Constitution of the Republic of Armenia, its charter and decisions of the Board of Trustees. The objectives of “Hayastan” All Armenian Fund are to: • support to the social – economic development and reform processes in the Republic of Armenia; • support to improvement and development of science, education, culture, social and healthcare sectors; • support to the implementation of projects of high significance, etc. The projects are implemented by the Executive Board. “Hayastan” All Armenian Fund has affiliate offices worldwide that work closely with the local Armenian communities. Each community contributes to realizing the “Hayastan” All Armenian Fund