Free Press Unlimited’s statement of accounts is drawn up in accordance with the revised Dutch Accounting Standards for Fundraising Institutions, Richtlijn 650 (version 2011). This Standard is in line with international standards, general guidelines and the CBF quality standard.
The financial report for 2016 has been drawn up on the basis of a consolidation of the financial accounts of Stichting Free Press Unlimited, Free Voice South Sudan (FVSS) and our office in Eastern Europe. We are obliged to include the items from the latter two organisations in our accounts, to comply with the stipulations of the Guideline for annual reporting and our formal consultation and participation structure. Nevertheless, Free Press Unlimited intends this to be a purely temporary arrangement – one that we strive to abolish as soon as possible in the case of both FVSS and our office in Eastern Europe. Free Press Unlimited wishes to emphasise that in actuality, both foundations will operate on an independent basis.
Intangible fixed assets
The intangible fixed assets are valued at their purchase cost minus the depreciations determined on the basis of the asset’s estimated lifespan. The depreciation term for the website is 3 years (33.3%).
Tangible fixed assets
The tangible fixed assets are valued at their purchase cost minus the depreciations determined on the basis of the asset’s estimated lifespan.
The depreciation term for the switchboard, computers and other hardware and software is 3 years (33.3%). The office furniture and equipment are depreciated in 5 years (20%) and the renovation is depreciated in
7 years (14.3%).
Receivables and accrued receivables
Receivables and accrued receivables are valued at nominal value minus certain impairments.
Obligations in connection with current projects
The item ‘Obligations in connection’ with current projects is the balance of contracts actually entered into with partner organisations (obligations) minus advance payments to these partner organisations.
Grants received in advance/Grants to be received
Many grants have a term that extends beyond a single calendar year. The difference between the advance awarded by the donor (the organisation issuing the grant) in a specific financial year and the project funds that are spent in that same year (realised grant income) is accounted for on the balance sheet as a ‘Grants received in advance’.
If the realised grant income amounts exceed the donor’s advance, the difference is entered on the balance sheet as a receivable.
Accrued liabilities are valued at nominal value.
Accounting principles for the balance of income and expenses
Grant income amounts are allocated on the basis of the realised direct and indirect spending on the organisation’s objective within the guidelines established in the grant decision.
Contributions and donations
Contributions and donations are accounted for in their year of receipt. Consequently, contributions and donations received in advance are not taken into account.
Allocation of costs
Management and administration costs, the costs of the organisation’s fundraising activities and costs of various objectives have been calculated based on an apportionment formula in accordance with the revised Dutch Accounting Standards for Fundraising Institutions (Richtlijn 650), as explained on page 92.
Balance of income and expenses
The balance of income and expenses is calculated as the income that can be allocated to the relevant financial year minus the expenses required to realise this income.