15
CENTER FOR DEFENSE OF LIBERTIES AND CIVIL RIGHTS Financial Statements As of December 31, 2016 Together with Independent Auditors’ Report
CENTER FOR DEFENSE OF LIBERTIES AND CIVIL
RIGHTS
Financial Statements
As of December 31, 2016 Together with Independent Auditors’ Report
4
Center for Defense of Liberties and Civil Rights Statement of Financial Position
As at December 31, 2016 (Currency: USD)
Note 2016 2015
Assets
Current Assets
Cash on hand and at bank 3 45,433 63,145
Contributions receivable 4 98,728 226,862 Total Current Assets 144,161 290,007
Fixed assets, net 5 9,150 9,266 Total Assets 153,311 299,273
Liabilities and Net Assets Current Liabilities
Accrued expenses and other current liabilities 6 2,492 5,292
Total Current Liabilities 2,492 5,292 Provision for severance pay 7 22,721 17,975
Total Liabilities 25,213 23,267
Net Assets
Unrestricted 47,433 8,431
Temporarily restricted 8 80,665 267,575
Total Net Assets 128,098 276,006
Total Liabilities and Net Assets 153,311 299,273
The accompanying notes form an integral part of these financial statements
5
Center for Defense of Liberties and Civil Rights Statement of Activities
For the Year Ended December 31, 2016 (Currency: USD)
The accompanying notes form an integral part of these financial statements
2016
2015
Note
Unrestricted Temporarily
restricted
Total
Revenues Donors’ contributions 9 - 76,751 76,751 300,569
Prisoners’ project revenues 10 113,000 - 113,000 99,530
Other revenues 11 78,898 - 78,898 81,846
Net assets released from restriction 8 263,661 (263,661) - - Total Revenues 455,559 (186,910) 268,649 481,945
Expenses
Program expenses 12 355,227 - 355,227 292,933 General and administrative
expenses 13 51,003 - 51,003 66,971 Depreciation 5 2,737 - 2,737 2,255 Receivables write-off 6,573 - 6,573 566 Currency differentials loss 14 1,017 - 1,017 1,258
Total Expenses 416,557 - 416,557 363,983
Change in net assets 39,002 (186,910) (147,908) 117,962
Net assets, beginning of year 8,431 267,575 276,006 158,044
Net assets, end of year 47,433 80,665 128,098 276,006
6
Center for Defense of Liberties and Civil Rights Cash Flows Statement
For the Year Ended December 31, 2016 (Currency: USD)
The accompanying notes form an integral part of these financial statements
2016 2015
Cash Flow from Operating Activities
Change in net assets (147,908) 117,962 Adjustments to reconcile change in net assets to net
cash flow from operating activities:
Depreciation 2,737 2,255 Increase (decrease) in provision for severance pay 4,746 (1,210) Decrease (increase) in contributions receivable 128,134 (117,603) (Decrease) increase in accrued expenses and other
current liabilities
(2,800) 2,123 Net cash flow (used in) from operating activities (15,091) 3,527
Cash Flow from Investing Activities Purchase of fixed assets (502) (7,984) Fixed assets adjustments (2,119) -
Net cash flow (used in) investing activities (2,621) (7,984)
Net (decrease) in cash on hand and at bank (17,712) (4,457) Cash on hand and at bank, beginning of year 63,145 67,602
Cash on hand and at bank, end of year 45,433 63,145
7
Center for Defense of Liberties and Civil Rights Notes to the Financial Statements
For the Year Ended December 31, 2016 (Currency: USD)
1. Hurryyat and Its Activities
The Center for Defense of Liberties and Civil Rights “Hurryyat” is a Palestinian non-governmental and independent organization that contributes to the protection of Palestinian civil and political rights. Hurryyat was established in Jerusalem in 1992 and registered in 2003 with the Palestinian Ministry of Interior under registration number RA-2276-LS. Hurryyat’s main objectives include:
▪ Activate the social involvement and participation in protecting the Palestinian
civil and political rights.
▪ Organize systematic activities directly targeted for the advocacy of Palestinian
prisoners’ conditions.
▪ Contribute towards the efforts aiming at influencing the decision-making process
in ways that protect human, social and political rights.
2. Summary of Significant Accounting Policies
The financial statements have been prepared under the historical cost convention, the significant accounting policies follow: -
- General
Net assets, revenues, expenses, and gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified as unrestricted, temporarily restricted and permanently restricted. Unrestricted net assets are those whose use by Hurryyat is not subject to donor-imposed stipulations. Temporarily restricted net assets are those whose use by Hurryyat has been limited by donors for specific time period or purpose. Permanently restricted net assets are those restricted by donors to be maintained by Hurryyat in perpetuity. During 2016 and 2015, Hurryyat had no permanently restricted net assets.
- Donors’ Contributions
Unconditional promises to give cash and other assets to Hurryyat are recorded at the fair market value at the date promises to give are made. Conditional promises to give and indications of intention to give are recorded at the fair market value at the date contribution is received. Unconditional promises to give are promises that depend only on passage of time and certain performance requested by the promising donors. Restricted contributions are recorded as either temporarily or permanently restricted revenues. When donor restrictions expire, that is, when a
8
stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified as unrestricted net assets and reported in the statement of activities as net assets released from restriction.
- Membership Fees
Membership fees are recorded by Hurryyat when received, in accordance with the cash basis of accounting.
- Expenses
Expenses are recorded by Hurryyat when incurred in accordance with the accrual basis of accounting.
- Provision for Severance Pay
Hurryyat provides for the severance pay of its employees in conformity with local labor law (law number 7 of the year 2000).
- Fixed Assets
Fixed assets are recorded at cost and depreciated over their estimated useful lives using the straight-line method, at the following annual rates:
- Foreign Currencies
Hurryyat’s basic functional currency is the United States Dollar (USD). Transactions which are expressed or denominated in other currencies were translated to USD using exchange rates in effect at the time of each transaction. Assets and liabilities which are denominated in other currencies are translated to USD using exchange rates prevailing at the date of the statement of financial position. Gains and losses arising from translation are reflected in the statement of activities.
Foreign currency exchange rates against USD at December 31, 2016 and 2015 were as follows: One USD
2016 2015
New Israeli Shekel (ILS) 3.85 3.90 Jordanian Dinar (JD) 0.71 0.71 EUR 0.95 0.92
%
Computers 20
Office equipment 20 Office furniture 10
Telecommunication equipment 20
9
3. Cash on Hand and at Bank
Cash on hand and at bank comprises:
2016 2015
Cash on hand in USD 1 1 Cash at bank in JD 890 41,101 Cash at bank in USD 45,557 26,238 Cash at bank in EUR * (2,600) 8 Cash at bank in ILS 1,585 (4,203)
45,433 63,145
* Includes outstanding cheques as of December 31, 2016 in the amount of EUR 3,040 (equivalent to USD 3,198).
4. Contributions Receivable
Contributions receivable comprises:
2016
2015 Support and Advocacy of Enhancing the Human Rights of
Sick Palestinian Prisoners in Israeli Jails - Arab Fund for Economic and Social Development 2016 – 2017 (Arab Fund 2016 - 2017)
81,150
126,048
Against Torture in the Palestinian Territories - The Palestinian Accession to the International Treaty against Torture - Human Rights & IHL Secretariat (Secretariat ATPT)
10,758
59,983
Increasing Citizen's Participation in Elections - Central Elections Commission (CEC)
3,286 -
Treatment & Rehabilitation Center for Victims of Torture (TRC)
3,534
2,168
Strengthening the Rule of law in the oPt - Justice and Security for the Palestinian People 2015-2017 - United Nations Development Programme (UNDP 2015 - 2017)
-
21,348
Support and Advocacy of Enhancing the Human Rights of Sick Palestinian Prisoners in Israeli Jails - Arab Fund for Economic and Social Development 2013 – 2015 (Arab Fund 2013 - 2015)
-
17,315
98,728
226,862
10
5. Fixed Assets, Net
Components of fixed assets costs and related accumulated depreciation as of December 31, 2016 and movement thereon during the year follow:
Balance, Beginning
of year
Additions Adjustments
(2) Balance,
End of year
Costs
Computers - (1) 116 8,547 8,663 Office equipment 34,680 - (29,659) 5,021 Office furniture 8,060 386 (2,673) 5,773 Telecommunication equipment - - 3,315 3,315 Central telephone 963 - (963) -
Signboard 207 - (207) -
43,910 502 (21,640) 22,772
Accumulated Depreciation
Computers - 1,173 4,225 5,398 Office equipment 27,133 392 (23,697) 3,828 Office furniture 6,342 564 (3,761) 3,145 Telecommunication equipment - 608 643 1,251 Central telephone 963 - (963) -
Signboard 206 - (206) -
34,644 2,737 (23,759) 13,622
Net Book Value 9,266 9,150
(1) This item has been purchased from the CEC restricted donations as presented in Note 8 to the financial statements.
(2) These adjustments have resulted from the re-recording of the fixed assets based on a physical count in year 2016.
6. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities comprise:
2016 2015
Accrued audit fees 2,492 1,392 Due to lessor (office rent) - 3,900
2,492 5,292
7. Provision for Severance Pay
The movement on the provision for severance pay during 2016 and 2015 follows:
2016 2015
Balance, beginning of year 17,975 19,185 Additions during the year 10,405 5,806 Payments during the year (5,659) (7,016) Balance, end of year 22,721 17,975
11
8. Temporarily Restricted Net Assets
Temporarily restricted net assets as of December 31, 2016 and movement thereon during the year follow:
Released from restriction
Balance, Beginning
of year
Additions/ Contributions
Program expenses
Fixed assets
Write off/ Reclassif-
ication
Currency variance
Total
Balance, End of
year
Support and Advocacy of Enhancing the Human Rights of Sick Palestinian Prisoners in Israeli Jails - Arab Fund for Economic and Social Development 2016 – 2017 (Arab Fund 2016 – 2017) 167,366
-
98,609
- -
-
98,609
68,757
Strengthening the Rule of law in the oPt: Justice and Security for the Palestinian People 2014-2017 (MPTF 88270) and Building a sustainable legal aid system in Palestine (EU-98489) - United Nations Development Programme (UNDP) -
49,992
38,084
- -
-
38,084
11,908
Against Torture in the Palestinian Territories - The Palestinian Accession to the International Treaty against Torture - Human Rights & IHL Secretariat (Secretariat ATPT) 56,447
-
55,208
- 1,239
-
56,447
-
Increasing Citizen's Participation in Elections - Central Elections Commission (CEC) -
18,542
15,225
116 307
2,894
18,542
-
Strengthening the Rule of law in the oPt - Justice and Security for the Palestinian People 2015-2017 - United Nations Development Programme (UNDP 2015 – 2017) 29,056
-
26,674
- 2,382
-
29,056
-
Support and Advocacy of Enhancing the Human Rights of Sick Palestinian Prisoners in Israeli Jails - Arab Fund for Economic and Social Development 2013 – 2015 (Arab Fund 2013 – 2015) 9,687
-
-
- 9,687
-
9,687
-
Strengthening the Rule of law in the oPt - Justice and Security for the Palestinian People 2014-2015 - United Nations Development Programme (UNDP 2014 – 2015) 4,334
-
-
- 4,334
-
4,334
-
Torture is a Humiliation of Dignity - Human Rights & IHL Secretariat (Secretariat THD) 610
-
-
- 610
-
610 -
Treatment & Rehabilitation Center for Victims of Torture (TRC) 75
8,217 8,427 - - (135) 8,292 -
267,575
76,751 242,227 116 18,559 2,759 263,661
80,665
12
9. Donors’ Contributions
Donors’ contributions comprise:
2016
Unrestricted
Temporarily Restricted
Total
2015
Strengthening the Rule of law in the oPt: Justice and Security for the Palestinian People 2014-2017 (MPTF 88270) and Building a sustainable legal aid system in Palestine (EU-98489) - United Nations Development Programme (UNDP)
- 49,992 49,992 -
Increasing Citizen's Participation in Elections - Central Elections Commission (CEC)
- 18,542 18,542 -
Treatment & Rehabilitation Center for Victims of Torture (TRC) - 8,217 8,217
6,593
Support and Advocacy of Enhancing the Human Rights of Sick Palestinian Prisoners in Israeli Jails - Arab Fund for Economic and Social Development 2016 – 2017 (Arab Fund 2016 – 2017)
- - -
167,366
Strengthening the Rule of law in the oPt - Justice and Security for the Palestinian People 2015-2017 - United Nations Development Programme (UNDP 2015 – 2017)
- - -
66,627
Against Torture in the Palestinian Territories - The Palestinian Accession to the International Treaty against Torture - Human Rights & IHL Secretariat (Secretariat ATPT)
- - -
59,983
- 76,751 76,751
300,569
10. Prisoners’ Project Revenues
Prisoners’ project revenues represent donations from entities and individuals to be donated for prisoners’ canteens.
11. Other Revenues
Other revenues represent:
2016 2015
Donations from individuals and organizations 52,631 56,146 Voluntary work - General Manager 24,000 24,000 Membership fees 148 -
Other 2,119 1,700 78,898 81,846
13
12. Program Expenses
Program expenses comprise:
2016
From Restricted Donations
From Unrestricted Donations
Arab
Fund 2016 -2017
Secretariat ATPT
UNDP (MPTF 88270 &
EU-98489)
UNDP 2015 - 2017
CEC
TRC
Total
Prisoners’ Canteens
Total Program Expenses
2015
Salaries 73,645 38,093 38,084 17,262 6,183 6,047
179,314 - 179,314 139,565
Prisoners’ canteens & assistance expenses - - - - - -
-
113,000 113,000 103,821
Consulting and professional fees 5,192 12,625 - - 2,400 1,568
21,785
- 21,785 6,292 Office and hall rent 7,800 353 - - 309 160
8,622
- 8,622 4,333
Radio and film production 5,000 - - - 3,200 -
8,200
- 8,200 - Travel & transportation 4,453 1,134 - 376 387 186
6,536
- 6,536 7,386
Maintenance, hospitality and cleaning 650 468 - 1,526 1,917 449
5,010
- 5,010 10,302
Printing, stationery and supplies 557 40 - 2,401 829 -
3,827
- 3,827 14,243 Donations - - - 2,500 - -
2,500
- 2,500 -
Postal, telephone & website expense 1,050 950 - 262 - -
2,262
- 2,262 1,364
Utilities and administrative expense 202 746 - 579 - 4
1,531
- 1,531 314
Media, advertising & translation - - - 1,130 - -
1,130
- 1,130 4,840 Subscription, fees and bank
charges 60 799 - - - 13 872 - 872 166 Court fees - - - 638 - - 638 - 638 307
98,609 55,208 38,084 26,674 15,225 8,427
242,227
113,000 355,227 292,933
14
13. General and Administrative Expenses
General and administrative expenses comprise:
2016 2015
Salaries and related benefits 37,524 48,120
Postal, telephone & website expense 2,663 1,667
Maintenance, hospitality and cleaning 2,369 3,591
Travel and transportation 2,298 1,361
Printing, stationery and supplies 1,829 2,445
Utilities and administrative expense 1,419 1,024
Subscription, fees and bank charges 1,373 1,302
Insurance expenses 1,160 1,362
Office and hall Rent 103 3,900
Donations 13 2,100
Training and workshops - 99
Miscellaneous expenses 252 - 51,003 66,971
14. Currency Differentials loss
Currency differentials have resulted from the revaluation of Hurryyat monetary assets and liabilities in foreign currencies to USD using the exchange rates prevailing at the date of the statement of financial position. The fluctuations in the exchange rates against USD resulted in a loss of USD 1,017 and USD 1,258 as of December 31, 2016 and 2015 respectively.
