V. Audited Financial Statement
The independent auditing firm of
KPMG LLP has provided the Council
with a financial statement for 1998,
concerning the financial operations
of the Secretariat.
INDEPENDENT AUDITORS' REPORT*
The Honorable Members of the Ministerial
Council,
Commission for Labor Cooperation:
We have audited the accompanying
statements of financial position of
the Commission for Labor Cooperation
(the Commission), as of December 31,
1998 and 1997 and the related statements
of activities and cash flows for the
years then ended. These financial
statements are the responsibility
of The Secretariat of the Commission
for Labor Cooperation. Our responsibility
is to express an opinion on these
financial statements based on our
audits.
We conducted our audits in accordance
with generally accepted auditing standards.
Those standards require that we plan
and perforrn the audit to obtain reasonable
assurance about whether the financial
statements are free of material misstatement.
An audit includes examining, on a
test basis, evidence supporting the
amounts and disclosures in the financial
statements. An audit also includes
assessing the accounting principles
used and significant estimates made
by the Commission, as well as evaluating
the overall financial statement presentation.
We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements
referred to above present fairly,
in all material respects, the financial
position of the Commission as of December
31, 1998 and 1997, and the changes
in its net assets and its cash flows
for the years then ended, in conformity
with generally accepted accounting
principles.
Our audits were made for the purpose
of forming an opinion on the basic
financial statements taken as a whole.
The Schedule of Expenses - Budget
and Actual for the year ended December
31, 1998 is presented for purposes
of additional analysis and is not
a required part of the basic 1998
financial statements of the Commission.
Such information has been subjected
to the auditing procedures applied
in the audit of the 1998 financial
statements and, in our opinion, is
fairly stated in all material respects
in relation to the financial statements
taken as a whole.
March 19, 1999
KPMG LLP
* All figures are in U.S. dollars.
Statements of Financial
Position
|
December 31,
|
| Assets |
1998 |
1997 |
| Cash
and cash equivalents |
$
819,799 |
442,348 |
| Investments |
– |
503,233 |
| Accounts
receivable |
700 |
– |
| Fixed
assets, net of accumulated depreciation |
214,459 |
307,816 |
| Total
assets |
$
1,034,958 |
1,253,397 |
|
|
|
| Liabilities
and Net Assets |
|
|
| Liabilities: |
|
|
| Accounts
payable |
$
25,833 |
45,132 |
| Accrued
liabilities |
59,631 |
64,252 |
| Deferred
contributions |
732,638 |
801,214 |
| Capital
lease obligation |
– |
32,587 |
| Total
liabilities |
818,102 |
943,185 |
| Unrestricted
net assets |
216,856 |
310,212 |
|
|
|
| Commitments |
|
|
| Total
liabilities and net assets |
$
1,034,958 |
1,253,397 |
|
|
|
| Statements
of Activities |
|
|
December 31,
|
| Revenues: |
1998 |
1997 |
| Contributions |
$1,868,575 |
1,842,083 |
| Interest
earned |
56,023 |
57,370 |
| Other
income |
5,692 |
8,243 |
| Net
appreciation in fair value of
investrnents |
– |
3,759 |
| Total
revenues |
1,930,290 |
1,911,455 |
| |
|
|
| Expenses: |
|
|
| Salaries
and benefits |
1,184,933 |
1,146,837 |
| Relocation |
42,855 |
36,254 |
| Travel |
58,375 |
68,281 |
| Professional
services |
80,426 |
66,296 |
| Research
contracts |
81,381 |
67,691 |
| Office |
397,988 |
415,730 |
| Translation
and publications |
177,688 |
187,901 |
| Total
expenses |
2,023,646 |
1,988,990 |
| Change
in net assets |
(93,356) |
(77,535) |
| |
|
|
| Unrestricted
net assets at beginning of year |
310,212 |
387,747 |
| |
|
|
| Unrestricted
net assets at end of year |
$
216,856 |
310,212 |
| |
|
|
| Statements
of Cash Flows |
|
|
December
31, |
| Cash
flows from operating activities: |
1998 |
1997 |
| Change
in net assets |
$
(93,356) |
(77,535) |
Adjustments
to reconcile change in net assets
to net  cashprovided
(used) by operating activities: |
|
|
| Depreciation |
95,871 |
89,830 |
| Net
appreciation in fair value of
investments |
– |
(3,759) |
| Interest
Income |
(56,023) |
– |
| (Increase)
decrease in accounts receivable |
(700) |
3,783 |
| Increase
(decrease) in accounts payable
and accrued liabilities |
(23,920) |
18,910 |
| Increase
(decrease) in deferred contributions |
(68,576) |
157,918 |
| Net
cash provided (used) by operating
activities |
146,704 |
189,147 |
| |
|
|
| Cash
flows from investing activities: |
|
|
| Purchase
of fixed assets |
(2,514) |
(8,459) |
| Proceeds
from maturity of investments |
503,233 |
3,091,231 |
| Purchase
of investments |
– |
(2,993,187) |
| Interest
received |
56,023 |
– |
| Net
cash provided (used) by investment
activities |
556,742 |
89,585 |
|
|
|
| Cash
flows from financing activities
- payments on capital leases |
(32,587) |
(54,740) |
| Net
increase (decrease) in cash and
cash equivalents |
377,451 |
223,992 |
| Cash
and cash equivalents at beginning
of year |
442,348 |
218,356 |
| Cash
and cash equivalents at end of
year |
$
819,799 |
442,348 |
| Supplemental
disclosure - cash paid for interest |
$ 11,423 |
13,077 |
|
|
|
|
