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Financial statements
To the Board of Directors of the International Crisis Group
We have audited the accompanying statement of financial position of the International Crisis Group (a District of Columbia not-for-profit corporation) as of 30 June1997, and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of International Crisis Group's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an 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 statements. 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.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of International Crisis Group as of 30 June 1997, and the changes in its net assets and its cash flows for the year then ended, in conformity with generally accepted accounting principles.
Washington, D.C.,
1 December 1997
Statement of Financial Position
(as of 30 June 1997)
Assets
Current assets: |
| Cash and cash equivalents (Note 3) | $916,403 |
| Accounts receivable and prepaid expenses | 20,876 |
| Contributions receivable (Note 4) | 160,827 |
| Total current assets | 1,098,106 |
| |
Non-current assets: |
Vehicles and office equipment,at cost,
less accumulated depreciation of $80,032 | 96,626 |
| Total assets | $1,194,732 |
Liabilities and Net Assets
Current liabilities: |
| Accounts payable and accrued liabilities | $91,297 |
| Total current liabilities | 91,297 |
| |
Net assets: |
| Unrestricted | 846,986 |
| Temporarily restricted (Note 5) | 256,449 |
| Total net assets | 1,103,435 |
| Total liabilities and net assets | $1,194,732 |
The accompanying notes are an integral part of this statement
Statement of Activities
(for the year ended 30 June 1997)
| | Unrestricted | Temporarily
Restricted | Total |
Revenues and other support: |
| Contributions | $1,612,919 | $879,835 | $2,492,754 |
| Investment income | 19,039 | 4,810 | 23,849 |
| Miscellaneous income | 1,539 | 306 | 1,845 |
| Net assets released from restrictions: |
| Satisfaction of program restrictions | 1,239,532 | (1,239,532) | - |
| Total revenues and other support | 2,873,029 | (354,581) | 2,468,448 |
| |
Expenses: |
| Program services |
| Bosnia program | 910,061 | - | 910,061 |
| Sierra Leone program | 161,958 | - | 161,958 |
| Albania/Macedonian/Serbia program | 7,238 | - | 7,238 |
| Great Lakes program | 47,644 | - | 47,644 |
| Nigeria program | 3,779 | - | 3,779 |
| Program development, support and communications | 441,195 | - | 441,195 |
| Fundraising costs | 372,338 | - | 372,338 |
| Management and general costs | 312,539 | - | 312,539 |
| Total expenses | 2,256,752 | - | 2,256,752 |
| Changes in net assets | 616,279 | (354,581) | 261,696 |
| Net assets at beginning of year | 230,709 | 611,030 | 841,739 |
| Net assets at end of year | $846,986 | $256,449 | $1,103,435 |
The accompanying notes are an integral part of this statement
Statement of Cash Flows
(as of 30 June1997)
| |
Cash flows from operating activities: |
| Changes in net assets | $261,696 |
| Depreciation | 79,619 |
| Change in assets and liabilities: |
| Increase in accounts receivable and prepaid expenses | (20,876) |
| Decrease in contributions receivable | 72,173 |
| Decrease in accounts payable and accrued liabilities | (46,471) |
| Net cash provided by operating activities | 346,141 |
| |
Cash flow from investing activities: |
| Additions to fixed assets | (34,840) |
| Net cash used in investing | (34,840) |
| Increase in cash and cash equivalents | 311,301 |
| Cash and cash equivalents, beginning of year | 605,102 |
| Cash and cash equivalents, end of year | $916,403 |
The accompanying notes, below, are an integral part of this statement
Notes to Financial Statement
- Organisation
International Crisis Group ("ICG") is a not-for-profit corporation
committed to reinforcing the capacity of the international community to understand, anticipate and prevent crisis arising from human causes. It was incorporated in the District of Columbia on 28 February 1995 and commenced operations on 1 July of that year.
IGC's goals are to:
- engender support among officials and the general public for concerted international, national and private response efforts at times of impending or erupted crisis;
- to promote strategies aimed at assisting governments and international organisations to translate early warning signs of impending disaster into early action in order to avert crisis; and
- foster a heightened sense of awareness and obligation among governments to deal with the problems posed by large-scale emergencies.
ICG had its headquarters in London until 31 July 1997. On 1 August 1997, ICG's headquarters were relocated to Brussels. ICG also maintains a small office in Washington, and operates temporary sites in Bosnia and Sierra Leone.
- Significant Accounting Policies
The Financial Statements have been prepared in conformity with Statement of Financial Accounting Standards ("SFAS") No.116, "Accounting for Contributions Received and Contributions Made" and No. 117, "Financial Statements of Not-for-Profit Organizations", issued by the United States Financial Accounting Standards Board.
Basis of preparation
ICG maintains its accounts on the accrual basis of accounting.
Net Assets
ICG classifies net assets in two categories: unrestricted and temporarily restricted. All contributions are considered to be available for unrestricted use unless specifically restricted by the donor.
Temporarily restricted net assets are contributions with temporary, donor-imposed time and/or program restrictions. These temporary restrictions require that resources be used for specific purposes or in a later period. Temporarily restricted net assets become unrestricted when time restrictions expire or the funds are used for their restricted purpose. At that time they are reported in the statement of activities as net assets released from restrictions.
Taxes
ICG is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code.
Cash and cash equivalents
Cash and cash equivalents are considered to be cash and temporary investments with original maturities of three months or less.
Contributions
ICG recognises contribution revenue in the year the money is received or the unconditional pledge is made. ICG receives donations from foundations, governments and individuals.
Functional Allocation of Expenses
The direct costs of individual programs, and the costs of developing, supporting and communicating the various programs have been summarized on a functional basis in the statement of activities. Certain costs have been allocated among the program, fundraising and management and general cost categories based on various criteria, principally time spent.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at 30 June 1997, and the reported amounts of revenues and expenses during the year then ended. Actual results could differ from those estimates.
Fixed assets
Depreciation is calculated utilizing the straight line method over three years based on the estimated useful life of the assets. Depreciation expense for the year ended 30 June 1997 was $79,619.
- Cash and Cash Equivalents:
Cash and cash equivalents were composed of the following at 30 June:
| Money market: | $578,104 |
| Cash at bank, including deposit: | 324,802 |
| Other cash: | 13,497 |
| |
| $916,403 |
The cost basis of cash and cash equivalents is equal to market value at year end.
- Contributions receivable
The contributions receivable of $160,827 represents money contributed to ICG in the year ended 30 June 1997. The money is receivable within one year.
- Temporarily restricted net assets:
Temporarily restricted net assets at 30 June 1997, are available for the following purposes or periods:
| Nicholas Hinton Research Fellowship | $46,770 |
| Bosnia program | 5,426 |
| Albania/Macedonian/Serbia program | 30,234 |
| Research and analysis program | 16,019 |
| Other programs | 8,000 |
| For periods after 30 June 1997 | 150,000 |
| |
| $256,449 |
[1997 - year in review]
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