Word Notes to the Financial Statements only - English · Web viewForeign Currency Risk Exposure to fluctuations in foreign currency exchange rates arises from the available-for-sale

WORLD YOUNG WOMEN'S CHRISTIAN ASSOCIATION

STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31

_____________

2014 2013CHF CHF

ASSETS Notes

Non Current AssetsLeasehold improvements, net 7 145'083 168'296

Current AssetsCash and cash equivalents 1'672'375 3'464'205 Available-for-sale financial asset 5 14'385'628 13'347'525 Accounts receivable 6 350'306 348'305 Donations receivable 6 2'159'849 1'581'589 Withholding tax receivable 15A 49'047 30'045 Prepayments - 1'629

Total Current Assets 18'617'205 18'773'298

Total Assets 18'762'287 18'941'594

FUND BALANCES AND RESERVES

Unrestricted FundsEndowment Fund 3, 10 3'879'454 3'988'800 Other Reserves 10 592'782 833'470

Total Unrestricted Funds 4'472'236 4'822'270

Restricted FundsSpecific Programme Funds 9, 10 1'822 397'555 Leadership Permanent Funds 3, 10 9'901'057 9'494'517 International Building Fund 3, 10 195'543 184'715 J & U Porter Fund - Capital 3, 10 189'385 191'824

Total Restricted Funds 10'287'807 10'268'611

Total Fund Balances and Reserves 14'760'042 15'090'881

LIABILITIESNon Current LiabilitiesDeferred income 15D, 16 516'960 968'724 Pension liability 12, 15D 523'394 423'805 Amount held on behalf member associations 15D - 164'680 Donations received in advance 8, 15D 65'503 77'980

Total Non Current Liabilities1'105'857 1'635'189

Current LiabilitiesDeferred income 15D, 16 1'950'039 1'487'704 Accounts payable and accrued liabilities 15D 234'423 199'423 Amounts held on behalf member associations 15D 699'449 515'920 Donations received in advance 8, 15D 12'477 12'477

Total Current Liabilities 2'896'388 2'215'524

Total Liabilities, Fund Balances and Reserves 18'762'287 18'941'594

The accompanying notes are an integral part of these statements.

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STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31

_____________

Unresticted Restricted Total Total2014 2014 2014 2013

Notes CHF CHF CHF CHFINCOMEMember Affiliation Fees 11 594 871 0 594 871 611 927Membership Contributions 11 8 024 102 722 110 746 221 191Ecumenical Support 11 180 382 828 493 1 008 874 868 619Governments / Co-op Agencies 11 0 674 342 674 342 758 012Trusts and Foundations 11 7 070 422 723 429 793 567 136Individuals and Legacies 11 66 358 171 66 529 320 566Other Donations 11 0 128 724 128 724 156 705Other Income 11 49 003 0 49 003 141 515Donations new headquarters 8, 11 12 477 0 12 477 12 477Total income 918 185 2 157 175 3 075 359 3 658 148

EXPENSESProgram services:Advocacy 0 463 357 463 357 559 419Leadership Training 0 481 661 481 661 528 604SRHR & HIV/AIDS 0 475 757 475 757 433 462VAW, Peace and Justice 0 396 522 396 522 161 959Movement Building 0 246 079 246 079 227 001World Council 0 109 919 109 919 33 828P2C Global Initiatives 0 907 679 907 679 1 102 900

Supporting services:Management and general administration 949 830 0 949 830 479 669Governance 231 889 0 231 889 222 377Fundraising 156 571 0 156 571 150 984Other expenses 33 009 0 33 009 0Total Expenditures 1 371 299 3 080 974 4 452 273 3 900 203

Total Operational Result ( 453 114) ( 923 800) (1 376 914) ( 242 055)

FINANCE (COSTS) / INCOMEInterest and dividend income 60 407 97 165 157 571 195 678Gain (loss) on disposal of available-for-sale 135 108 316 825 451 932 374 580Gain (loss) on foreign currency exchange 14 100 081 152 560 252 641 ( 281 149)

Total net financial result 295 595 566 550 862 145 289 109

SURPLUS (DEFICIT) for the year ( 157 520) ( 357 250) ( 514 769) 47 054

OTHER COMPREHENSIVE INCOME

Adjustment for available for sale Securities Reserves 248 128 0 248 128 512 378

Actual (losses) / gains on benefit plan (OCI) ( 64 087) ( 64 087) 86 122

Total other comprehensive income 184 041 0 184 041 598 500

TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR 26 521 ( 357 250) ( 330 728) 645 554


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STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31

_____________

Notes Unrestricted Restricted Total

Balance as of 1 January 2013 4'117'823 10'327'503 14'445'326

Transfered between funds (348 476) 348 476 - Net surplus/(deficit) for the year 454 423 (407 369) 47 054Other comprehensive income 598 500 - 598 500Balance as of 31 January 2013 4'822'270 10'268'611 15'090'880

Balance as of 1 January 2014 10 4'822'270 10'268'611 15'090'880

Net surplus/(deficit) for the year (157 520) (357 250) (514 769)Other comprehensive income 184 041 184 041Transfered between funds (376 446) 376 446 - Other ( 110) ( 110)Balance as of 31 December 2014 4'472'236 10'287'807 14'760'042


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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 _____________

2014 2013 CHF CHF

Cash flows from operating activitiesSurplus / (Deficit) for the year ( 514 769) 47 056

Adjustment for :

Depreciation expense 23 213 10 736

Gain on disposal of available-for-sale assets ( 451 932) ( 374 580)

Realised foreign exchange (gain) / loss on disposal of available for sale assets ( 79 520) 196 145

Unrealised foreign exchange (gain) / loss of available for sale assets ( 305 196) 10 322 Other adjustments 75 964 22 758 Operating surplus / (deficit) before changes in working capital (1 252 240) ( 87 563)

(Increase) / decrease in accounts receivable ( 580 261) ( 767 282)

(Increase) / decrease in prepayments 1 629 ( 1 629)

Decrease / (increase) in withholding tax receivable ( 19 002) 253

Increase / (decrease) in deferred income 10 571 1 062 347

Increase / (decrease) in accounts payable and accrued liabilities 134 589 43 781

Increase / (decrease) in amounts held for member associations 18 850 176 992

Cash flows used in operating activities (1 685 863) 426 899

Cash flows from investing activities

Acquisitions of available-for-sale financial assets (7 233 009) (9 612 275)

Proceeds from disposal of available-for-sale financial assets 7 102 010 9 622 485

Interest and dividends income received 25 033 229 025

Cash flows used by investing activities ( 105 967) 239 235

Net (decrease) / increase in cash and cash equivalents (1 791 830) 666 134

Cash and cash equivalents at beginning of year 3 464 205 2 798 071

Cash and cash equivalents at end of year 1 672 375 3 464 205


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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

NOTE 1 – BACKGROUND AND ACTIVITIES

The World Young Women's Christian Association (World YWCA) was founded in 1894 in the United Kingdom and is incorporated as a non-profit organisation in Switzerland. The World YWCA unites member associations that are working in accordance with its basis and principles and meet the requirements for affiliation. World YWCA seeks to co-ordinate them in a world movement, and it acts on their behalf in matters for which it has received authority. The World YWCA currently has 108 member associations affiliated worldwide.

NOTE 2 – BASIS OF PREPARATION

(A) Statement of compliance

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).

Currently the IFRS do not contain specific guidelines for non-profit organisations and non-governmental organisations concerning the accounting treatment and the presentation of the financial statements. Where the IFRS are silent or do not give guidance on how to treat transactions specific to the non-profit sector, accounting policies have been based on the general IFRS principles.

(B) Basis of measurement

The financial statements are prepared using the historical cost convention, except for financial assets and liabilities, which are measured at their fair value.

(C) Functional and presentation currency

The financial statements are presented in Swiss Francs which is the organisation's functional and presentation currency.

(D) Use of judgments, estimates and assumptions

Management has made a number of judgments, estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with IFRS. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

In particular, information about estimates and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:

Note 15 – Financial instruments; and Note 12 – Personnel costs, including employee benefits.

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NOTE 3 – FINANCIAL RISK AND CAPITAL MANAGEMENT

(A) Financial risk and fund management

As most of the assets are available-for-sale financial assets, the World YWCA has exposure to foreign currency risk, market risk, credit risk and liquidity risk with the primary risks being foreign currency and market.

The Board has overall responsibility for the establishment and oversight of the World YWCA's risk assessment framework. The Board has established an Investment Advisory Group, which monitors these risks for the available-for-sale financial assets and advises management of the portfolio.

(B) Funds

The Statement of Comprehensive Income and the Fund Balances and Reserves of the Statement of Financial Position distinguish between Restricted and Unrestricted Use Funds. The former are those funds received from donors who have imposed restrictions on the purposes for which the funds may be used. Unrestricted Use Funds are those that are freely available to the Association or are appropriated to reserves for internally designated purposes. Restricted Funds Leadership Permanent Funds – These funds, which include a general fund and a number of named

funds, are capital funds generated by the World YWCA Global Campaign “Power to Change”. Initiated at the World Council in July 1999, one of the objectives of the Global Campaign is to establish a permanent fund to endow leadership development programmes for women and girls. In June 2007, as the fund had reached USD 10 million, the Board approved that income from the fund would be used to support the leadership development of women and girls. Specific use of this fund may be approved by the Board.

Specific Programs (Note 10) – These funds include potential surplus from grants to be used for programmes.

International Building Fund – The USD 200,000 capital of this fund, which was set up by the YWCA of the USA many years ago to support YWCA building programmes around the world, was transferred to the World YWCA for management in January 2004. The International Building Fund committee meets annually and reviews applications from member YWCAs for grants and loans, which are made using the income from the funds and are administered through the World YWCA.

James and Una Porter Fund – Set up many years ago in honour of Una Porter, a former World YWCA President, this fund is invested and income from the fund is allocated by the James and Una Porter Fund trustees to support the empowerment of young women and girls through the World YWCA.

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Unrestricted Funds Capital Reserve Fund –At each year-end closing, upon approval by the Board, any annual surplus of

the World YWCA core programme is allocated to the Capital Reserve Fund and any deficit is covered from the Capital Reserve Fund, or, if necessary, from the Endowment Fund. On occasion, the Board may make additional allocations from this Reserve or allocate all or part of the annual surplus to the Endowment Fund. The Capital Reserve Fund is zero at the end of December 31, 2014 and 2013, respectively.

Endowment Fund – Built up over the past decades from donations to the World YWCA, this Fund is invested and annual income from the Fund is used to support the core programme.

Other reserves (note 10) – Other reserves show funds that are internally restricted by the Board for special purposes.

(C) Fair value hierarchy

World YWCA’s financial instruments consist of cash and cash equivalents, available-for-sale financial assets, accounts receivable and payable, other current and non current assets and liabilities.

The carrying value of cash and cash equivalents, accounts receivable and payable, other current and non current assets and liabilities approximate their fair values due to the short-term nature of the instrument.

All financial instruments measured at fair value are categorised into one of three hierarchy levels. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or

liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).• Level 3: inputs for the asset or liability that are not based on observable market data

(unobservable inputs).

Transfers between levels of the fair value hierarchy are recognised at the date of the event or change in circumstances that caused the transfer. There were no transfers during the years ended December 31, 2014 and December 31, 2013.

The classification of World YWCA’s financial instruments is the following As at Dec 31, 2014 : all are Level 1 except CHF 1’543 KCHF as level 2

As at Dec 31, 2013 : all were classified as Level 1, except for CHF 4,484,222 which were classified as level 2.

NOTE 4 - PRINCIPAL ACCOUNTING POLICIES

(A) Foreign currencies Monetary assets and liabilities denominated in foreign currencies have been translated into Swiss Francs at year-end exchange rates.

Revenues and expenses have been translated into Swiss Francs using monthly exchange rates (previous month-end rates) that approximate exchange rates ruling at the date of the transaction. Exchange gains and losses thereon are recorded in the Statement of Comprehensive Income.

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(B) Financial assets and liabilities

(a) Cash and cash equivalents

For the purpose of the cash flow, cash and cash equivalents consist of cash in hand and deposits with banks that have maturity of 90 days or less from the date of acquisition.

(b) Available-for-sale financial assets Available-for-sale financial assets are available-for-sale securities and are stated at fair value. Acquisitions and disposals of available-for-sale financial assets are accounted for at trade date.

Unrealised gains and losses on available-for-sale securities are recorded directly through the Available-for-sale Securities Reserve in the Statement of Other Comprehensive Income until disposed of, at which time the gains and losses on sale against the acquisition cost are recorded through profit and loss for each fund.

However unrealised foreign exchange gains and losses on available-for-sale instruments are excluded from the fair value gains and losses recognised directly in the Available-for-sale Securities Reserve. These foreign exchange gains and loss are recognised through profit and loss as they arise.

(c) Impairment of financial assets

Financial assets are assessed at each reporting date to determine whether there is any objective evidence that they are impaired. A financial asset is considered to be impaired if objective evidence indicates that there has been a 20% decline in the quoted market price for a period of nine months or more.

The impairment losses are the difference between the acquisition costs and the current fair values of the financial assets less any impairment losses previously recognised and are recorded in the Statement of Comprehensive Income.

(d) Accounts receivable

Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost, net of an allowance on doubtful receivables. Non-interest-bearing or low-interest receivables are carried at their present value. Accounts receivable include receivables from member associations, accrued investment income and donations pledged.

An estimate is made for doubtful receivables based on a review of all outstanding amounts at year-end. Bad debts are recorded in the Statement of Comprehensive Income during the year in which they are identified.

(e) Accounts payable

Accounts payable and amounts held on behalf of member associations are initially recognized at fair value and subsequently measured at amortised cost.

(f) Determination of fair value

The fair value of available-for-sale financial assets is determined by reference to their quoted market price at the reporting date. The fair value of accounts receivable and payable is determined as the present value of future cash flows, discounted at market rate of interest at the reporting date. The carrying amounts of accounts receivable and payable are not materially different from their fair values.

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(C) Equipment, including leasehold improvements Leasehold improvements are measured at historical cost less accumulated depreciation. Depreciation and impairment losses are recognised in the Statement of Comprehensive Income on a straight-line basis over the estimated useful lives of the assets. The estimated useful life of leasehold improvements is 25 years, which is the lease term for the World YWCA Office (note 17 – Leases).

Acquisitions of office furniture and computers are neither capitalised nor depreciated since these operations are not significant.

(D) Employee benefits

The World YWCA provides pension benefits for its employees using a Swiss pension plan. The method and basis for the calculation of the pension liability at the end of the current financial year and the preliminary charge for the new financial year are prescribed under IAS 19 (R). The actuarial valuation used the projected unit credit cost method to determine liabilities and service cost as at 31.12.2014. IAS 19 (R) required that the assumed discount rate is determined by reference to market yields at the balance sheet date on high quality corporate bonds. The discount rate used for the calculations reported here is based on the yields on high quality Swiss corporate bonds. The defined benefit asset or liability comprises the present value of the defined benefit obligation less the fair value of plan assets out of which the obligations are to be settled directly and less any unrecognised net actuarial losses or gains.

IFRIC 14 addresses the defined benefit pension assets and their minimum funding requirements.

(a) An additional liability is recognised only if both of the following conditions exist: If the entity has a statutory or contractual obligation to pay additional amounts to

the plan, and If the entity’s ability to recover those amounts in the future by refund or otherwise

is restricted.

(b) A surplus can be recognised if the association has an unconditional right to use the surplus at some point during the life of the plan or on its wind up.

(E) Amounts held on behalf of member associations The World YWCA holds funds for certain member associations as a service and funds received by the World YWCA to distribute to member associations, if certain conditions under the donor agreements are met. The World YWCA additionally has internal requirements that member associations have to comply in order to properly account for the disposition of the funds. The World YWCA therefore, classifies these funds that are held on behalf of the member associations as a liability of the World YWCA to the respective associations.

(F) Revenue recognition

In general revenue is recognised when the following criteria are met:a) The amount of revenue can be measured reliably.b) It is probable that the economic benefits associated with the transaction will flow to the entity.

Membership affiliation fees, membership contributions and investment income are recognised on the accrual basis provided there is a reasonable assurance that they will be received.

For government or government related grants, the organisation recognises revenue following IAS 20 based on the level of expenditures.

For grants / contracts that are restricted to a specific project/fund, the organisation recognises revenue based on the level of services rendered or level of expenditures incurred, considering any restrictions made by the donor.

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(F) Revenue recognition (continued)

For grants / contracts that are not restricted to a specific project but are restricted to a time period, the organisation recognises revenue based on the specified time frame. In general, a donor’s payment schedule would not prevent recognition unless the payment schedule implies that expenditure was limited to a future accounting period.

For grants / contracts that are not restricted to a specific project or time period, the organisation recognizes revenue up front upon signing of the agreement.

For grants which are not contractual based, the organisation recognises revenue up front upon receipt of the funds (i.e., donations).

(G) Programme expenditure

Programme expenditure is recognised in the period when it is incurred.Contract costs incurred that relate to future activities are deferred.

(H) Leases

Payments made under operating leases (net of any incentives received from the lessor) are charged to the Statement of Comprehensive Income on a straight-line basis over the period of the lease.

(I) Statement on the new standards:

The World YWCA has applied new and revised IFRS and IAS that became effective on January 1, 2014 without any significant impact in the financial statements.The following new and revised Standard and Interpretations have been issued, but are not yet effective. They have not been applied early in these financial statements. Their impact on the financial statements of the World YWCA has not yet been systematically analysed, unless indicated otherwise. However, management has conducted a preliminary assessment and the expected impact of each new or amended Standard and Interpretation is presented below.

Effective Date Planned applicationRevisions and amendments of Standards and InterpretationsDefined Benefit Plans: Employee Contributions (Amendments to IAS 19)

* 30 June 2015 Calendar year 2015

Annual Improvements to IFRSs 2010-2012 Cycle * 30 June 2015 Calendar year 2015Annual Improvements to IFRSs 2011-2013 Cycle * 30 June 2015 Calendar year 2015IFRS 14 Regulatory Deferral Accounts * 31 December 2016 Calendar year 2016Accounting for Acquisitions of Interests in Joint Operations (Amendments to IFRS 11)

* 31 December 2016 Calendar year 2016

Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and IAS 38)


Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)


Equity Method in Separate Financial Statements (Amendments to IAS 27)


Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)

*31 December 2016 Calendar year 2016

Annual Improvements to IFRSs 2012–2014 Cycle – various standards


IFRS 15 Revenue from Contracts with Customers * 31 December 2017 Calendar year 2017IFRS 9 Financial Instruments * 31 December 2018 Calendar year 2018

* No impact or no significant impact is expected on the financial statements.

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NOTE 5 – AVAILABLE-FOR-SALE FINANCIAL ASSETS

2014 2013CHF CHF

Available -for-sale securities as recorded at December 31 14'385'628 13'347'525

Available-for-sale securities are held mainly in Swiss Francs, US Dollars, and Euro.

The movement in the available-for-sale financial assets in the Statement of Financial Position from December 31, 2013 to December 31, 2014 of CHF 1,038,104 is comprised of the following:

2013 2014 2014December 31 Movement December 31

Available -for-sale Assets CHF CHF CHF

Pictet & Cie 4'210'856 364'521 4'575'377

Porter Fund 133'514 (2'784) 130'730

Chase Manhattan 580 0 580

Lombard Odier 3'691'718 242'455 3'934'173

JP Morgan 5'310'857 433'911 5'744'769

13'347'525 1'038'103 14'385'628

The movements in the cash balances for these portfolios are as follows:

2013 2014 2014December 31 Movement December 31

Portfolio Cash CHF CHF CHF

Pictet & Cie 124'681 (113'889) 10'792

Porter Fund 52'573 (765) 51'808

Chase Manhattan (546) 0 (546)

Lombard Odier 32'456 37'756 70'212

JP Morgan 443'751 (22'842) 420'909

652'914 (99'740) 553'174

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NOTE 6 - ACCOUNTS AND DONATIONS RECEIVABLE

Accounts and donations receivable have been recorded as follows:

December 31 ,2014 December 31, 2013CHF CHF

Accrued investment income 18'221 19'919

Accounts receivable from member associations & others 332'185 328'386

Accounts receivable from donors 2'159'749 1'581'589

Total accounts and donations receivable 2'510'155 1'929'894

The World YWCA's exposure to credit risk and foreign currency risk related to other accounts receivable is disclosed in note 15.

NOTE 7 - LEASEHOLD IMPROVEMENTS

The leasehold improvements (renovation costs) for the headquarters are being depreciated over the lease period and are recorded in the financial statements, at December 31, as follows:

December 31, 2014 December 31, 2013CHF CHF

Total leasehold improvements 595 036 595 036

Less: accumulated depreciation (449 953) (426 740)

Balance in leasehold improvements - end of year 145’083 168 296

Depreciation expenses are included in the caption ‘administrative costs’:

Depreciation expense 23'213 23'213

NOTE 8 - DONATIONS RECEIVED IN ADVANCE

The World YWCA celebrated its centenary year in 1994. Donations were received in advance for work in its second century. The intent of the donors in giving these donations was first to assist in financing the expenses of the renovations of the headquarters (which is being leased for 25 years) and thereafter to increase the Endowment Fund. Therefore, the World YWCA has made a commitment to pay an equivalent amount of the donations to the Endowment Fund over 25 years by transferring funds annually from core programme to Endowment Fund.

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These donations in advance for the renovations of the headquarters have been recorded as follows:December 31, 2014 December 31, 2013

CHF CHFDonations received in advance 317 417 317 417

Amount recognised as income – previous years (226 960) (214 483)

Amount recognised as income – current year (12 477) (12 477)

Donations received in advance - end of year 77 980 90 457

Short term portion 12 477 12 477

Long term portion 65 503 77 980

Total donations received in advance 77 980 90 457

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NOTE 9 - SPECIFIC PROGRAMMES2014 2014 Dec. 31, 2014

Total Income Total Expenses Result of Programs

Advocacy CSW 97 229 (97 052) 177

Advocacy 4 826 (4 626) 200

AU Summit 2014 198 396 (202 026) (3 630)

Beijing +20 Africa 18 813 (25 341) (6 527)

Beijing +20 Asia Pacific 11 338 (11 339) ( 0)

Beijing +20 Europe 501 (1 984) (1 483)

Beijing +20 Latin America and Caribbean 9 585 (8 706) 879

Cecilia Koo Advocacy Institute (97 241) (3 111) (100 352)

Human Rights Council 50 319 (50 318) 0

CEDAW 34 546 (32 079) 2 467

VAW Campaigne 26 667 (26 774) ( 107)

Advocacy Global Program - PM 0 0 0

Total Advocacy 354 980 (463 357) (108 377)

YW Leadership Asia Pacific 2 118 338 (119 152) ( 815)

EED Project 55 701 (53 700) 2 001

ITI / ILI Bogota Colombia 121 000 (139 373) (18 372)

YWTP 0 ( 400) ( 400)

YWTP/Developing 104 597 (104 597) 0

Leadership Global Program - PM 0 (64 439) (64 439)

Total Leadership Training 399 636 (481 661) (82 025)

Aids Conference 2014 87 848 (88 712) ( 864)

Arrow Project 30 981 (30 982) ( 0)

HIV SRHR Mobilising Women Leadshp 8 669 (8 796) ( 127)

HIV SRHR Packard Phase 2 71 891 (71 891) 0

ITI Arusha 2014 114 997 (114 997) 0

Mobilising Faith Based Communities - NORAD 26 898 (36 202) (9 304)

SRHR & HIV Global Program - PM 0 (124 176) (124 176)

Total SRHR & HIV/AIDS 341 286 (475 757) (134 471)

Finland Project 92 975 (92 975) ( 0)

UNSCR 1325 Project 45 506 (54 166) (8 660)

South Sudan 172 201 (176 069) (3 868)

VAW Global Program - PM 0 (73 313) (73 313)

Total VAW, Peace and Justice 310 682 (396 522) (85 841)

Training French Speaking Africa 0 0 0

Organisational Effectiveness 37 120 (37 120) 0

New Associatioins 7 900 (7 890) 10

Movement Building Global Program - PM 0 (201 069) (201 069)

Total Movement Building 45 020 (246 079) (201 059)

World Council 2015 8 434 (14 740) (6 306)

World Council Global Program - PM 0 (95 179) (95 179)

Total World Council 8 434 (109 919) (101 485)

Power to Change 699 681 (688 826) 10 855

International Building Fund (2 716) (66 826) (69 542)

Project Management P2C 0 (152 027) (152 027)

Total Power to Change Global Initiatives 696 965 (907 679) (210 714)

Other 171 171

Total 2 157 175 (3080 974) (923 800)

CHF

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NOTE 10 – FUND BALANCES AND RESERVES

Endowment Fund

Specific Programme

Funds

International Building

Fund

J & U Porter Fund

- Capital TOTAL

Opening balance 3 988 800 833 470 397 555 9 494 517 184 715 191 824 15 090 881

transfer of 2014 results

unrestricted Op. result (453 114) (303 114) - - (150 000) - - (453 114)

restricted Op. Result (923 800) (526 446) - (397 354) - - - (923 800)

Financial result - Core 295 595 295 595 - - - - - 295 595

Financial result - restricted Interest and dividend income 97 165 - - 1 621 93 524 1 819 200 97 164Disposal of available-for- sale (losses)/gains 316 825 - - - 310 779 6 046 - 316 825Realised Foreign exch (losses) / gains (60 607) - - - (59 450) (1 156) - (60 606)Unrealised Foreign exch (losses) / gains 213 167 - - - 211 687 4 119 (2 639) 213 167

restricted financial result 566 550 - - 1 621 556 540 10 828 (2 439) 566 550

surplus for the year (514 769) (533 965) - (395 733) 406 540 10 828 (2 439) (514 769)

OCI impact pension (64 087) - (64 087) - - - - (64 087)Unrealized G/L investment price 248 128 - 248 128 - - - - 248 128

- - - transfer pension OCI impact from Endowment to Other reserve - 424 619 (424 619) - - - - -

- other ( 110) ( 110)

Dec 31, 2014 (330 728) 3 879 454 592 782 1 822 9 901 057 195 543 189 385 14 760 042

Other Reserves

Leadership Permanent

Funds

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NOTE 11 - CONTRIBUTIONS

Contributions were received from the following donors along with membership affiliation fees and other income:

2014 2013CHF CHF

Action Aid 7'568 13'801 ARROW Project 14'454 9'470 Department of Foreign Affairs and Trade - AusAid 226'536 385'813 Christian Aid - Great Britain (1) 15'012 28'950 Bread for the World 277'172 341'282 FINLAND 119'999 Horyzon Switzerland (YWCA/YMCA Switzerland) 130'000 130'000 ICCO -Interchurches Organisation for Development - Netherlands (2) 167'475 171'375 IPAS 13'732 Member YWCAs 102'722 221'191 Nike Foundation - 64'035 Norwegian Church Aid - Norway 65'072 52'495 NORAD 323'053 372'199 The David and Lucile Packard Foundation - USA 382'100 503'101 Robert CARR 40'623 -Rutgers 4'755 -UNDP 91'673 - UN Women - 100'998 United Methodist Women 9'585 - United Methodist Committee on Relief 25'701 - Urgent Action Africa - 8'989 Y Global - Norway 257'388 81'596 World Day of Prayer - Germany 48'848 49'120 WHO - 35'000 Other individuals and Legacies 66'529 320'566 Miscellaneous Donations (3) 29'011 2'248 Donations New Headquarters 12'477 12'477 Membership Affiliation Fees 594'871 611’927Other income 49'003 141’515

Total contributions as per Statement of Comprehensive Income 3'075'359 3’658’148

(1) Christian Aid grants are allocated to Restricted for 7,158.87 CHF and Unrestricted for 7,853 CHF(2) ICCO grant is purely Unrestricted (3) Remaining donations after allocations to per donor

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NOTE 12 – PERSONNEL COSTS, INCLUDING EMPLOYEE BENEFITS

December 31, December 31,2014 2013

CHF CHF

Wages and Salaries 1'617'638 1'479'888

Social security costs 216'939 207'568

Pension costs – defined benefit plan 177'052 177'494

Pension payments to former staff * 17'548 19'139

Total personnel costs 2'029'177 1'884'089

* Included in "personnel costs" are pension payments to former staff following a World Executive Committee decision in 1963 to supplement the original pensions of these persons until their death. These pension payments are recorded when made as a period expense.

Number of full time equivalent staff (all located in Switzerland):

2014 2013

Full time equivalent 17 15

Employee Benefits

For all staff, in addition to their salaries, the organisation also contributes to a pension plan on a ratio of approximately 60% employer and 40% employee.

The assets of the plan are held separately from the World YWCA in a collective Foundation Patrimonia, Geneva. For the purpose of IAS 19 accounting, this plan has been evaluated as a defined benefit scheme, using the projected unit credit method.

The plan assets were invested as follows:

Category: Other 100% 2% 100% 2%

December 2014

%Expected

Return %Expected

Return

December 2013

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Employees Benefits (continued)

The net liability in the Statement of Financial Position is reconciled with the defined benefit obligation as follows:December 31, December 31,

2 014 2 013CHF CHF

Present value of funded defined benefit obligation 1 559 128 2 043 891

Fair value of plan assets (1035 734) (1620 088)

(Surplus) / deficit 523 394 423 805

Amount not recognised due to asset limit 0 0

Unrecognised actuarial gain / (loss) 0 0

Net liability 523 394 423 805

Amounts recognised as pension expense are as follows:

December 31, December 31, 2 014 2 013CHF CHF

Service cost 162 908 164 054

Net interest on the Defined Benefit Liability/(Asset) 7 547 7 226

Immediate recognition of gain/loss 0 0

Administration expenses 6 597 6 214

Total pension expense 177 052 177 494

Amounts recognised in Statement of Comprehensive Income in respect of the defined benefit plan are as follows:


DBO gain/loss due to changes in demographic assumptions 0 0

DBO gain/loss due to changes in financial assumptions 0 (106 376)

DBO gain/loss due to experience 226 374 (12 569)Return on plan assets excluding amount included in interest income (211 963) (12 597)

49 676 45 419Total remeasurements recognised in Other Comprehensive (Income)/Loss 64 087 (86 122)

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The movement during the period in the net liability is as follows:


Net (Asset) / Liability recognised, beginning of year 423 805 465 406

Total (charge)/credit recognised in profit and loss 177 052 177 494Total remeasurements recognised in Other Comprehensive Income/(loss) 64 087 (86 122)

Employer contributions (141 548) (132 974)

Net (Asset ) / Liability recognised end of the year 523 396 423 805

The opening and closing balances of the defined benefit obligation may be reconciled as follows:


Present value of defined benefit obligation – beginning of year 2 043 891 1 814 793

Service cost (employer only) 162 908 164 054Interest cost 45 903 35 424

Contributions by plan participants 94 805 89 047Benefits paid (802 790) 72 115(Gain)/Loss due to Experience (211 963) (12 597)

(Gain)/Loss due to Demographic Assumption Changes - (106 376)(Gain)/Loss due to Financial Assumption Changes 226 374 (12 569)

Present value of defined benefit obligation - end of year 1 559 128 2 043 891

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The opening and closing balances of the fair value of plan assets may be reconciled as follows:


CHF CHF

Fair Value of Plan Assets, Beginning of Year 1'620'088 1'349'387

Employer Contributions 141'548 132'974

Employee Contributions 94'805 89'047

Net Benefits paid (802'790) 72'115

Actual administration Expenses Paid (6'597) (6'214)

Interest income on plan assets 38'356 28'198Return on plan assets excluding amounts included in interest income (49'676) (45'419)

Fair value of plan assets - end of year 1'035'734 1'620'088

Key assumptions used:


Future interest credited to members' accounts 1.10% 2.30%Discount rate 1.10% 2.30%Expected return on plan assets * 1.10% 2.30%Future salary increases 1% 1%

Mortality rateLPP/BVG 2010 (generational)

LPP/BVG 2010 (generational)

* The expected return on plan assets is calculated as weighted average by target allocation of estimated return for each category of assets.

The summary below shows the calculation of the IAS 19 (R) preliminary operating expenditure charge/(credit) for year ended 31 December 2015, based on a discount rate of 1.10% Impacts of past service costs / (Credits), settlements, or termination benefit during year ending December 31, 2015 are not included. The final operating expenditure charge for 2015 may, therefore be different from the amount shown below.

The following table shows the composition of the Profit and loss Charge / (Credit) and the Calculation of Net Service Cost for 2015:

2015CHF

Service cost 232'955 Net interest on the Net Defined Benefit Liability 4'491 Administration expenses 8'373 Total charge / (Credit) recognised in Profit and Loss 245'819

Normal cost 325 131Interest on normal cost 3 576Expected employee Contributions ( 95 753)Net Current Service Cost 232 955

The weighted average duration of the DBO at the end of the current financial year is 17 years.

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NOTE 13 - CORE ADMINISTRATION COSTS

2014 2013December 31 December 31

CHF CHF

Headquarter expenses 13'494 47'637 Depreciation expense for leasehold improvements (Note 7) 23'213 23'213 Board meetings & Envisioning Roundtable - - Audit and professional fees 94'527 75'317 Travel expense 34'578 30'139 Communications 70'703 32'378 Bank charges 114'766 110'923 Membership fees 6'728 - Personnel costs (1) 470'284 - Office supplies and utilities 68'578 83'447 Other Administrative expenses 52'958 76'615

Total administrative cost 949'830 479'669

(1) The core administration cost in 2013 had been classified in Specific programs for 323,108 CHF.

NOTE 14 – FOREIGN CURRENCY EXCHANGE

The net gain / (loss) on foreign currency exchange as at December 31 includes the following:


FX Net realised gain / (loss) (52 555) (270 828)

FX Unrealised gain / (loss) 305 196 (10 321)

Total net gain / (loss) on foreign currency 252 641 (281 149)

NOTE 15 – FINANCIAL INSTRUMENTS

Financial instruments carried on the Statement of Financial Position include cash and cash equivalents, available-for-sale financial assets, accounts receivable and payable, other current and non current assets and liabilities. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item.

(A) Foreign Currency Risk

Exposure to fluctuations in foreign currency exchange rates arises from the available-for-sale financial assets and the transactions denominated in currencies other than the World YWCA's functional currency, which is the Swiss Franc. As a result of the foreign currency exposure, exchange rate fluctuations can have a significant impact on the Statement of Comprehensive Income. The World YWCA may also incur foreign currency risk on pledged contributions that are denominated in a currency other than Swiss Francs. The currencies giving rise to this risk are primarily the Euro and the US Dollar.

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The International Building Fund and a portion of the Leadership Permanent Fund are both denominated in US Dollars. The foreign currency risks on these funds are managed through corresponding available-for-sale securities held in US Dollars. All other funds are denominated in Swiss Francs.

With respect to other monetary assets and liabilities held in currencies other than Swiss Francs, the World YWCA ensures that the net exposure is kept to an acceptable level, buying or selling foreign currencies at spot rates where necessary to address short-term needs.(A) Foreign Currency Risk (continued)

The overall exposure to foreign currency risk was as follows based on CHF carrying values and expressed in thousands of CHF:

USD AUD EUR USD AUD EUR

Cash and cash equivalents 475 3 214 832 403 142

Available-for-sale - - 131 5'311 - 134

Withholding tax receivable (1) - - - 30 - -

Net Exposure 475 3 345 6'173 403 276

(1) The withholding tax receivable in 2014 are in CHF currency.

2014 2013

For the main currencies involved, the following rates against the Swiss Franc were applied at December 31, 2014 and December 31, 2013:

2014 2013December 31 December 31

USD 1 = CHF 0.9894 0.8906

EUR 1 = CHF 1.2027 1.2263 AUD 1 = CHF 0.8103 0.7965

For the cash held with Pictet, Lombard Odier and JP Morgan, the cash was revalued according to each bank’s exchange rate at the end of the year. Similarly to the investment portfolio.

Sensitivity Analysis

A 10 percent strengthening of the US Dollar and Euro against the Swiss Franc at December 31 would have increased the value of the fund balance and reserves and increased total comprehensive income by the amounts shown below. This analysis assumes that all other variables would have remained constant. A 10 percent weakening would have had an equal but opposite effect.

December 31, 2014 December 31, 2013Effect of a 10 percent strengthening of the: KCHF KCHF

USD 47 277

EUR 34 28

AUD 0 40

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(B) Market Risk

The investment portfolio is comprised of:

December 31, 2014 December 31, 2013Bonds 39% 39%Shares and Portfolio investments 58% 60%US Treasury notes 0% 0%Other short term investments (1) 3% 1%

Total 100% 100%

(1) Including Swaps as detailed below:

Market Value in CHF

Forex Swaps EUR/CHF, 13.01.2014 - 27.01.2015 CHF 404 712 404 722

Forex Swaps EUR/CHF, 13.01.2014 - 27.01.2015 EUR (330 000) (396 783)

Forex Swaps EUR/CHF, 20.08.2014 - 27.01.2015 CHF 229 045 229 051

Forex Swaps EUR/CHF, 20.08.2014 - 27.01.2015 EUR (190 000) (228 451)

Forex Swaps USD/CHF, 03.03.2014 - 04.03.2015 CHF 717 826 717 896

Forex Swaps USD/CHF, 03.03.2014 - 04.03.2015 USD (820 000) (814 479)

Forex Forwards USD/CHF, 04.03.2015 USD 820 000 814 479

Forex Forwards USD/CHF, 04.03.2015 CHF (763 420) (763 494)

Quantity

The portfolio is exposed to fluctuations in market price. The World YWCA marks its Available-for-sale securities to market at the end of each accounting year. The unrealised gains and losses resulting from changes in market price are recorded in the Available-for-sale Securities Reserves in Other Comprehensive Income (note 10) until disposed of, unless the securities show objective evidence of impairment. The World YWCA mitigates market risk on the portfolio by ensuring that the Available-for-sale financial securities held are listed on major United States and European stock exchanges, that the bonds, notes and equivalents have been issued by high quality debtors, and that the portfolio’s investments are diversified.

Sensitivity Analysis

All the World YWCA's Available-for-sale securities are listed on the Swiss Market Index, the New York Stock Exchange or European stock exchanges. A two percent increase in the underlying stock indices would have resulted in approximately an additional CHF 175,943 in the fund balance and reserves and increase total comprehensive income in the December 2014 financial year and an additional CHF 152,454 in December 2013. An equal change in the opposite direction would have resulted in an equal but opposite effect.

(C) Credit Risk

The World YWCA has no significant concentrations of credit risk.

Cash and cash equivalents and available-for-sale securities are placed with credit worthy financial institutions.

The accounts receivable are mainly affiliation fees due from member associations. Analysis has shown that member associations rarely default on these payments.

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(D) Liquidity Risk

Liquidity risk is the risk that the World YWCA will not be able to meet its financial obligations as they fall due. The World YWCA's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due under both normal and stressed conditions. Timing of donor contributions has a direct impact on liquidity risk.

(D) Liquidity Risk (continued)

The World YWCA's objective is to strike a balance between continuity of funding and flexibility by maintaining sufficient funds as cash in hand or short-term investments with maturities of three months or less to meet short-term liabilities.

The following are the contractual maturities of financial liabilities expressed in thousands of CHF:

December 31, 2014Carrying 6 months 6-12 1-2 2-5 More thanamount * or less months years years 5 years

Accounts payable and accrued liabilities

234 234 - - -

Pension liability 523 - - 523 **Amounts held on behalf of member associations

(1) 699 699 -

Donation received in advance 78 12 66

Deferred Income (2) 2'467 60 1'890 517 -

Total liabilities 4'001 1005 1890 583 0 523(1) these funds are available and should be distributed when the financed operations of the member associations are finalized

(1) including 164,680 CHF of Oenlager fund , availabe for the member associations.

(2) Long term are mainly Finland for 446,960 CHF and Packard for 70,000 CHF

(2 )Short term - 6 months or less includes EED 5,301 CHF, YGlobal 10,386 CHF, Plan 24,054, and Christian Aid 19,927.

December 31, 2013Carrying 6 months 6-12 1-2 2-5 More thanamount * or less months years years 5 years

Accounts payable and accrued liabilities

199 119 80 - - -

Pension liability 424 - - - - 424 **Amounts held on behalf of member associations

681 516 - 121 44 -

Donation received in advance 90 - 12 12 36 30

Deferred Income 2'457 220 1'268 969 - -

Total liabilities 3'851 855 1'360 1'102 80 454

Short term Long term

Short term Long term

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NOTE 16 – DEFERRED INCOME

Deferred income represents signed donor commitments for future period as of the balance sheet date and it is presented in current and non-current portion in the statement of Financial Position. Deferred revenue is composed of:


Action AidArrow Project - 8'906 AUSAID - Australia 33'622 260'158 EED - Church Development Service - Germany 299'395 587'881 Horyzon - Switzerland (YWCA-YMCA of Switzerland) - 130'000 NORAD 490'763 718'178 The David and Lucile Packard Foundation 561'110 611'505 UN Women 0 81'171 Yglobal - 58'629 Y global - South Sudan - 2014 10'386 - Finland 36'300 UMW 28'953 Robert Carr 54'695 Plan International 36'000 Finland 895'859 Christian AID 19'927

Total 2'467'010 2'456'428

Current portion 1'950'050 1'487'704

Non - current portion 516'960 968'723

Total 2'467'010 2'456'426

NOTE 17 – LEASES

(A) Office Lease

The World YWCA has a free office lease from the Republic and Canton of Geneva for a period of 25 years, with the possibility of renewal in December 2020 at which stage management would negotiate the future terms and possible rental fee. The conditions and restrictions of the lease are as follows:

Renovate the house into offices Insure the building Maintain the building Do not sublet any space in the building

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NOTE 18 – RELATED PARTIES

Under International Financial Reporting Standards, related parties relationships are those where one party controls or exercises significant influence over another in making financial and operating decisions. The World YWCA has a related party relationship with its Board members and key management personnel.

Board members serve on a voluntary basis and receive no remuneration. They are compensated for travel and accommodation and incidental expenses for participation in Board meetings. 2014 Board expenses & organisation of meetings also includes the Envisioning Roundtable that certain board members participated. Board expenses and organisation of meeting total expenses were CHF 103,526 for 2014, CHF 54,548 in 2013.

NOTE 19 – Taxes

The World YWCA is exempt from taxes in Switzerland and is a 501 (c) (3) charity for US tax purposes.

NOTE 20 – SUBSEQUENT EVENTS

No events occurred subsequent to December 31, 2014 and prior to the publication of the financial statements that would require modification of or disclosure in the financial statements.

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Documents

Word Notes to the Financial Statements only - English · Web viewForeign Currency Risk Exposure to fluctuations in foreign currency exchange rates arises from the available-for-sale