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)


Current assets:

Cash and cash equivalents (Note 3)$916,403
Accounts receivable and prepaid expenses20,876
Contributions receivable (Note 4)160,827
Total current assets1,098,106

Non-current assets:

Vehicles and office equipment,at cost,
less accumulated depreciation of $80,032
Total assets$1,194,732

Liabilities and Net Assets

Current liabilities:

Accounts payable and accrued liabilities$91,297
Total current liabilities91,297

Net assets:

Temporarily restricted (Note 5)256,449
Total net assets1,103,435
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)

Revenues and other support:

Investment income19,0394,81023,849
Miscellaneous income1,5393061,845
Net assets released from restrictions:
Satisfaction of program restrictions1,239,532(1,239,532)-
Total revenues and other support2,873,029(354,581)2,468,448


Program services
Bosnia program910,061-910,061
Sierra Leone program161,958-161,958
Albania/Macedonian/Serbia program7,238-7,238
Great Lakes program47,644-47,644
Nigeria program3,779-3,779
Program development, support and communications441,195-441,195
Fundraising costs372,338-372,338
Management and general costs312,539-312,539
Total expenses2,256,752-2,256,752
Changes in net assets616,279(354,581) 261,696
Net assets at beginning of year230,709611,030841,739
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
Change in assets and liabilities:
Increase in accounts receivable and prepaid expenses(20,876)
Decrease in contributions receivable72,173
Decrease in accounts payable and accrued liabilities(46,471)
Net cash provided by operating activities346,141

Cash flow from investing activities:

Additions to fixed assets(34,840)
Net cash used in investing(34,840)
Increase in cash and cash equivalents311,301
Cash and cash equivalents, beginning of year605,102
Cash and cash equivalents, end of year$916,403

The accompanying notes, below, are an integral part of this statement

Notes to Financial Statement

  1. Organisation
  2. 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.

  3. Significant Accounting Policies
  4. 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.


    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.


    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.

  5. Cash and Cash Equivalents:
  6. 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

    The cost basis of cash and cash equivalents is equal to market value at year end.

  7. Contributions receivable
  8. 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.

  9. Temporarily restricted net assets:
  10. Temporarily restricted net assets at 30 June 1997, are available for the following purposes or periods:

    Nicholas Hinton Research Fellowship$46,770
    Bosnia program5,426
    Albania/Macedonian/Serbia program30,234
    Research and analysis program16,019
    Other programs8,000
    For periods after 30 June 1997150,000

[1997 - year in review]


Contents List:  

[About ICG] - [Projects] - [Contacts] - [Site Guide]
[Publications] - [Press Office] - [Home] - [TOP]