Center for the Study of Democracy
BALANCE SHEET AS AT 31 DECEMBER 2000
1. Significant accounting policies
(a) Activity background
Founded in late 1989, the Center for Study of
Democracy (CSD) is an interdisciplinary public policy institute
dedicated to the values of democracy and market economy. CSD is a
non-partisan, independent organization fostering the reform process
in Bulgaria through impact on policy and civil society.
CSD objectives are:
-  to provide an enhanced institutional and
policy capacity for a successful European Integration process;
-  to promote institutional reform and the
practical implementation of democratic values in legal and economic
practice;
-  to monitor public attitudes and serve as well
as to monitor the institutional reform process in the country;
-  to strengthen the institutional and
management capacity of NGOs in Bulgaria, and reform the legal
framework for their operation.
CSD encourages an open dialogue between scholars and
policy makers and promotes public-private coalition building. As a
full-service think tank, the Center achieves its objectives through
policy research, process monitoring, drafting of legislation,
dissemination and advocacy activities, building partnerships, local
and international networks.
(b) Basis of preparation
These financial statements have been drawn up in
conformity with International Accounting Standards.
Hyperinflation adjustments have been made in order
to show the effect of inflation on the purchasing power of the
equity interest. This is achieved by stating the current year non
monetary assets of the Center, which operated in a
hyperinflationary economy in 1996 and 1997, in terms comparable to
the previous year balances of these items.
All items in the statement of changes in net assets
for the year ended 31 December 1999 are expressed in terms of the
measuring unit current at 31 December 1999.
(c) Foreign currencies
Monetary assets in foreign currencies have been
revalued on a monthly basis as required by the Accountancy Act. As
a result foreign exchange differences have arisen. Other
liabilities denominated in foreign currencies are carried at their
historical values. The BNB official exchange rates of the USD as at
31 December 1999 and the average for 1999 are 1.95 BGN/USD and 1.84
BGN/USD respectively.
(d) Property, plant and equipment
Tangible and intangible fixed were inflated for the
year ended 31 December 1998 in accordance with International
Accounting Standard 29, Financial reporting in hyperinflationary
economies. The monthly inflation indices as officially published by
the National Institute of Statistics have been used. Since these
are computed using the month of December of the previous year as a
basis, chain indices from the month of purchase to the end of the
year under review, have been used to measure the cumulative effect
of inflation.
The tangible and the intangible fixed assets for the
year ended 31 December 1999 have not been inflated. Their inflated
values as at 31 December 1998 have been depreciated using the
straight line method. The inflation rate for the twelve months
ended 31 December 1999 of 6.2 % is considered insignificant, and no
restatement of the financial statements as of and for the year
ended 31 December 1999 have been made.
The rates of depreciation used are as follows:
Buildings
|
4%
|
Machinery and equipment
|
20%
|
Fixtures and fittings
|
25%
|
Vehicles
|
15%
|
Intangible assets
|
20%
|
(e) Investments
Investments classified as long-term assets which are
not considered to be material as compared to the overall balance
sheet value of the CSD are carried at cost, less any amounts
written off to recognise a decline in the value of the investment.
As the subsidiaries perform economic activity the investments in
them are not included in the parent’s separate financial statements
because if included the statements will not give a true and fair
presentation of the activity of the CSD. Due to the above mentioned
reason the investments have not been consolidated.
(f) Revenue recognition and expense
reporting
The income of the Center for the study of democracy
consists of funds extended by international financing bodies for
the completion of accepted projects. The amounts are carried in the
balance sheet as deferred revenue at their historic values. Every
project is commenced with a signing of a contract where the
financing body determines the budget, payment instalments and the
rates at which expenses incurred in BGN are to be translated into
the respective foreign currency. The respective amount of BGN
expenses are translated at the specified rate and an expense report
in foreign currency is produced. It is used to report on the
progress of the project before the financing organization. These
reports are prepared at a frequency determined by the contract for
the project assignment.
Revenue is recognised in the income and expenditure
account on the basis of completed stage as reported by the SCD to
the commissioning bodies. Revenue is recognised as income for the
period to match the related costs, on a systematic basis. Project
contracts are denominated in foreign currency, while the related
expenses are incurred in BGN. Expenses as revalued in foreign
currency correspond to the revenues in the same foreign
currency.
(g) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand
and balances with banks.
(h) Taxation
SCD is a non profit organization. No corporate tax
is levied in accordance with current Bulgarian legislation. For the
period ended 31 December 2000 there are no trade operations on
which tax is due. Therefore International Accounting Standard 12
Income Taxes is not applied.
2. Revenue fom grants, contributions
and projects
In BGN |
31 December 2000
|
31 December 1999
|
IDLI
|
1,943,758
|
517,420
|
ETF
|
-
|
197,906
|
CE
|
104,475
|
103,267
|
CIPE 98
|
-
|
40,441
|
SOCO
|
-
|
35,341
|
Legal reform - European Commission
|
-
|
97,469
|
Santander group - Phare Democracy Program
|
-
|
50,533
|
LMFI (Pension funds)
|
-
|
19,240
|
World bank
|
-
|
28,956
|
UNDP training
|
5,388
|
46,327
|
SELDI |
236,547
|
-
|
CIPE 1999 |
79,809
|
14,592
|
GMF |
53,350
|
-
|
Mc
Arthur Foundation |
137,433
|
-
|
Other projects
|
520,108
|
333,388
|
Income from fiancing NCA |
17,472
|
8,656
|
|
3,098,340
|
1,493,545
|
3. Expenses on grants, contributions and
projects
In BGN |
31 December 2000
|
31 December 1999
|
Salaries and
benefits |
106,481
|
411,213
|
Hired services |
1,416,144
|
284,065
|
Depreciation |
43,335
|
52,322
|
Supplies and
consumable |
142,529
|
44,141
|
Other expenses |
659,350
|
325,757
|
|
2,367,839
|
1,117,498
|
4. Foreign exchange gains - net
In BGN
|
31 December 2000
|
31 December 1999
|
Exchange rate
gains from operations |
350,723
|
244,154
|
Exchange rate losses from operations
|
(187,844)
|
(127,521)
|
|
162,879
|
116,633
|
Differences on exchange rates have arisen in the
cases when debtors, cash and creditors denominated in foreign
currencies have been revalued on a monthly basis.
5. Provisions
In BGN
|
31 December 2000
|
31 December 1999
|
Balance at the beginning of the year
|
(20,873)
|
-
|
Increase/(Decrease) in provisions
|
11,306
|
(20,873)
|
Write off receivable against provisions incurred in
previous years
|
9,567
|
-
|
Balance at
the end of the year |
11,306
|
(20,873)
|
6. Receivables
In BGN |
31 December 2000
|
31 December 1999
|
Completed Projects
|
579,075
|
49,257
|
Receivables from ARC Fund
|
-
|
75,613
|
Other receivables
|
32,247
|
44,459
|
Provision
|
-
|
(20,873)
|
|
613,322
|
148,456
|
7. Cash and cash equivalents
In BGN |
31 December 2000
|
31 December 1999
|
At bank
|
1,523,083
|
1,555,498
|
In local currency
|
9,042
|
9,042
|
In foreign currency |
1,473,055
|
1,546,456
|
Deposits
|
800
|
-
|
In hand
|
21,778
|
25,506
|
In local currency
|
12,406
|
9,877
|
In foreign currency
|
9,372
|
15,629
|
|
1,544,861
|
1,581,004
|
8. Deferred expenses
In BGN |
31 December 2000
|
31 December 1999
|
CIPE 1999
|
-
|
72,562
|
CIPE 2000
|
43,468
|
-
|
Urban Institute
|
16,892
|
-
|
Interrights
|
-
|
103
|
COLPI
|
8,729
|
2,756
|
OSF
|
5,198
|
356
|
OSF Book Donation
|
15,237
|
-
|
Phare Democracy (Santander)
|
85,601
|
85,601
|
GMF |
49,971
|
-
|
IDLI Coalition 2000
|
-
|
563,747
|
McArthur Foundation
|
-
|
22,464
|
European commission
|
-
|
35,797
|
ICEG |
-
|
1853
|
IMSI |
787
|
-
|
Other Projects
|
352
|
-
|
|
226,235
|
791,239
|
9. Property, plant and equipment
In BGN
|
Land
|
Plant & equipment
|
Vehicles
|
Fixtures & fittings
|
Assets in construction
|
Total
|
Cost or valuation
|
|
|
|
|
|
|
At 1 January 2000
|
115,769 |
177,699
|
186,081
|
102,843
|
335,923
|
918,315
|
Additions
|
-
|
92,476
|
-
|
1,591
|
-
|
94,067
|
Disposals
|
-
|
(91,962)
|
(37,054)
|
(13,699)
|
-
|
(142,715) |
At 31 December 2000
|
115,769
|
178,213
|
149,027
|
90,735
|
335,923
|
869,667
|
Accumulated depreciation
|
|
|
|
|
|
|
At 1 January 2000
|
-
|
108,636
|
139,490
|
97,878
|
-
|
346,004
|
Charge for year
|
-
|
32,006
|
6,752
|
3,638
|
-
|
42,369
|
Disposals
|
-
|
(91,962)
|
(37,054)
|
(13,699)
|
-
|
(142,715)
|
At 31 December 2000
|
-
|
46,680
|
109,188
|
87,817
|
-
|
245,685
|
Net book value as at 31 December 2000
|
115,769
|
129,533
|
39,839
|
2,918
|
335,923
|
623,311
|
Net book value as at 31 December 1999
|
115,769
|
69,063
|
46,591
|
4,965
|
335,923-
|
572,311
|
10. Intangible fixed assets
In BGN
|
Software
|
Patents and licenses
|
Total
|
Cost or valuation
|
|
|
|
At 1 January 2000
|
9,639
|
412
|
10,051
|
Additions
|
12,123
|
-
|
12,123
|
Disposals |
(8,534)
|
-
|
(8,534)
|
At 31 December 2000
|
13,228
|
412
|
13,640
|
Accumulated depreciation
|
|
|
|
At 1 January 2000
|
9,205
|
344
|
9,549
|
Charge for year
|
871
|
68
|
939
|
Disposals |
(8,534)
|
|
(8,534)
|
At 31 December 2000
|
1,542
|
412
|
1,954
|
Net book value as at 31 December 2000
|
11,686
|
-
|
11,686
|
Net book value as at 31 December 1999
|
434
|
68
|
502
|
11. Investments
In BGN |
31 December 2000
|
31 December 1999
|
Agency Vitosha EOOD |
5,006
|
5,006
|
Radio Vitosha |
-
|
229
|
Vitosha Research |
5000
|
-
|
Provisions |
-
|
(229)
|
|
10,006
|
5,006
|
Investments have not been consolidated. CSD is a
not-profit organization but the subsidiaries perform economic
activity. Thus if their separate financial statements are included
in the parent’s separate financial statements, these will not give
a true and fair presentation of the activity of the CSD
12. Payables
In BGN |
31 December 2000
|
31 December 1999
|
Payables to the budget |
16,391
|
17,377
|
Salaries, benefits and social security
payable |
16,047
|
7,145
|
Payable to suppliers |
1,441
|
-
|
Payable related to VISA credit
cards |
3,095
|
-
|
Other payables |
23,693
|
20,821
|
|
60,667
|
45,343
|
13. Deferred revenue
In BGN |
31 December 2000
|
31 December 1999
|
For project activities |
135,922
|
1,165,368
|
For fixed assets |
156,458
|
69,068
|
|
292,380
|
1,234,436
|
14. Unrestricted fund balance
In BGN |
31 December 2000
|
31 December 1999
|
Balance at 1 January 1999 |
1,818,903
|
1,349,861
|
Revaluation for the period |
-
|
-
|
Excess of revenue over expenditure for
the year |
858,271
|
469,042
|
Balance at 31 December 1999
|
2,677,174
|
1,818,903
|
15. Related parties
Related party receivables
|
Nature of the related party
relationship
|
Transaction during the year
|
Amount
|
Outstanding balance
31 December 1999
|
Agency Vitosha
|
100% of the capital owned by CSD
|
paid off financing
|
1,715 USD
26,177 BGN
|
-
-
|
Radio Vitosha
|
Significant influence
|
written off investment
|
229,73 BGN
504,43 USD
399 GBP
|
-
-
-
|
ARC Fund
|
CSD and ARC Fund are both represented
by the Chairman of the Board of Trustees
|
paid off financing
project financing fot Coallition 2000
|
69,839 USD
21,000 USD
|
-
|
Related party payables
|
|
|
|
|
ARC Fund
|
|
paid off liability
|
1,411.35 BNG
|
-
|
16. Events subsequent to the balance sheet
date
There have been no material changes or transactions
subsequent to the balance sheet date that require adjustment or
disclosure in the financial statements prepared for the period
ended 31 December 2000.
17. Contingencies
There are no contingencies to report on.
|