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 figures in these financial statements are presented in accordance with the new Guideline 650, which must be applied with effect from the current financial year. This has led to a gradual reclassification of the different income categories and to changes in the cost allocation. There is no longer a distinction made between the different types of fundraising costs. In addition, the cost allocation summary is now called “Explanation of Expenditure”and two expenditure categories have been added: Communications Expenses and Deprecations. Up to the 2016 financial year, these costs were included in the General expenses.
The financial report for 2017 has been drawn up on the basis of a consolidation of the financial accounts of Stichting Free Press Unlimited, Eastern Africa office 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 Eastern Africa Office 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 the purchase price minus the depreciations based on the estimated life span. The depreciation period for the telephone exchange, computers and other hardware and software is 3 years (33.3%). Office inventory is written off over 5 years (20%) and the renovation over 7 years (14.3%).
All (in)tangible fixed assets are held for business operations.
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, revised in 2016), as explained on page 20 and 21 of the financial report.
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.