Professional Documents
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Basic information Management Report Profit & Loss Statement Balance Sheet Contribution Statement Statement on administrative expenses made from general donations Annex Auditors Opinion
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Transparency International Latvia 2010 Annual Report Basic information Name of Association Registration number, place and date Status of a public benefit organization Address Transparency International Latvia (In Latvian Sabiedrba par atkltbu Delna) 40008037054 in the Commercial Register Riga, 20th June 2005 Decision No.506 of the Ministry of Finance Dated 21st October 2005 49-4 Aleksandra aka Street, Riga LV-1011, Latvia Laura Mielsone Executive Director until 05/11/2010. Kristaps Petermanis Executive Director from 08/11/2010. Lolita igne Chairperson of the Council until 30/03/10. Inese Voika Chairperson of the Council from 26/04/2010, Member of the Council until 26/04/10. Valts Kalni - Member of the Council from 26/04/10. Jnis Bernts - Member of the Council from 26/04/10. Lotte Tisenkopfa Member of the Council until 26/04/10. Ilga Brzkalna Member of the Council until 06/12/10. Aivars Endzi Member of the Council from 21/05/09. Pauls Raudseps Member of the Council from 31/03/08. Jnis trens Member of the Council from 31/03/08. Year of account Name and address of the auditor 1st January 31st December 2010 SIA Potapovia un Andersone Business Company of Certified Auditors License No. 99 13 Slokas Street Riga, LV-1048 Latvia Responsible Certified Auditor: Kristne Potapovia Certificate No. 99
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Registered office of the organization: 49-4 aka Street, Riga, LV 1011, Latvia Data on the organizations director or members of the governing body (name, surname, appointment date). Inese Voika, Chairperson of the Council, entered the office on 26/04/2010, Executive Director (the sole Member of the Board) Kristaps Petermanis, entered the office on 08/11/2010.
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Applied methods for the implementation of the organizations objectives and tasks in the year of account and differences from the methods applied in the previous years. For the implementation of objectives of activities of the organization, i.e., promotion of formation of a democratic society by advancing information transparency and prevention of corruption, the employees of Transparency International Latvia also in 2010 were engaged in research work, i.e., document analysis, interviews, media monitoring; provided consultations to the public and municipal officials; performed educational and informational work, i.e., hosting workshops, lectures, giving comments to mass communication media, preparing publications, raising public awareness on a regular basis, as well as publishing information on the website www.delna.lv.
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The most significant achievements of the organization in the year of account and the development outlooks. The organization in 2010 continued to actively pursue its mission formation of an open, fair and democratic society free from corruption in politics, business and mutual relationships. The organizations activity can be divided into ad hoc or contingency and planned project activities. Delna actively responded to the events in politics and economics, if such events were related to good administration or corruption prevention issues, performing functions of a public interest watchdog. The Ad hoc Activity Report is available on the website section Information for Media, http://www.delna.lv/lat/informacija1 medijiem/.
The following are the most significant achievements of the organization in project implementation: 1. Project Promoting responsible voting: Delnas reputation database of political parties and candidate MPs www.kandidatiuzdelnas.lv prior to the election of the 10th Saeima (Parliament of Latvia) drew attention of the electorate to the reputation of the politicians in the context of corruption by summarizing the publicly available information on them for previous four years and giving a risk assessment of a candidate. In the opinion of Delna the project made a significant contribution to the qualitative and quantitative change of the Saeimas composition if usually after every election 1/3 of deputies of the 100 deputies were not reth elected, then after election of the 10 Saeima 2/3 of deputies were changed. Public opinion surveys show that youths is one of the groups of society whose tolerance to corruption is the greatest. This undermines the efforts in Latvia to get rid of corruption gradually, because the next generation might not introduce changes into the political culture. In order to change this, Delna implemented a project High school students civic participation in democracy youth education program, which with informative, educative and interactive techniques draws the attention of young people to the negative aspects of corruption and contributes to their awareness of the seriousness of the problem, and, in the long-term, seeks to the change their behaviour. While implementing a project Protection of public interests and provision of legal aid in areas of construction and spatial planning the organization tried to ensure that in cases of collision of business and public interests the latter would prevail more often. Since the groups of society, whose interests and rights have been abused, often have neither knowledge nor financial resources to defend themselves, Delna provides to them the necessary legal aid, in certain cases, representing such people at court.
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Technical comment: due to launch of a new website the up-to-date link is http://delna.lv/raksti/category/preses-relizes/. 4
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For 2011 Delna plans the following main activities: 1. In 2011 (and in 2012) Delna will implement the National Integrity System evaluation project, that is simultaneously also implemented in at least 22 other European Union Member States, involving analysis of the legal and institutional framework for corruption prevention. The objective of the project is to produce the situation assessment in 2011 in order that in 2012 evidence-based advocacy work could be carried out. Within the framework of the youth educational project in 2011 Delna is planning to organize discussions, educative and other events at Latvian schools and higher educational institutions in order to facilitate the youths awareness of the negative effect of corruption and involve them into mitigation of such effect. Delna will continue to provide legal aid to public groups in the areas of construction and spatial planning. It is intended that during the second part of the year the centre will provide assistance in at least one more field. Delna will continue to implement the Integrity Pact with the Ministry of Culture to monitor construction of the new National Library building. Going forward with monitoring of politics during the pre-election period, Delna will develop a Saeima monitoring portal www.deputatiuzdelnas.lv. Within the framework of the project Delna will follow the work of all one hundred new parliamentarians, and key legislation proposals. Irrespective of project commitments and financing also in 2011 an integral part of activities of Delna will be public interest watchdogging in cases of suspicions of maladministration and corruption. 7. Detailed information on significant liabilities, which are not included into the balance sheet (guarantees, warranties, collaterals etc.). The Association procured in 2004 real estate at 49 aka Street, Riga. Cadastral number 01009043782, an apartment property 4, the objective of real estate procurement to establish an office. The property is encumbered by a mortgage loan received from Hansabanka (Swedbank) for purchase of real estate. 8. The average number of employees working under employment contracts and the grand total of their salary. The average number of employees working under employment contracts in 2010 was: 9. The salary grand total: LVL 76,385.64. _____________________________ Kristaps Petermanis Director __ March 2011
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Profit & Loss Statement for the financial year ended on 31 December 2010 Annex I. Membership fees, admission fee and other annual payments II. Received donations and contributions V. Operating income VI. Other earnings VII. Earnings Total VIII. Expenses 2. Material costs 3. Salary 4. Social insurance contributions 5. Fixed assets and Intangible assets depreciation and retirement 6. Other expenses IX. Taxes X. Expenses Total XI. Difference between earnings and expenses 5 6 (2 828) (77 244) (18 608) (7 839) (75 890) (490) (182 899) (2 442) (88 923) (21 451) (9 799) (45 991) (404) (169 010) 2010 Ls 375 9 068 3 906 193 368 206 717 2009 Ls 336 14 522 4 336 157 693 176 887
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23 818
7 877
Transparency International Latvia 2010 Annual Report Balance Sheet as of 31 December 2010 Annex Assets Long-term investments II. Fixed assets: 1. Real estate 2. Other fixed assets Fixed Assets Total: Current Assets I. Stocks: 2. Goods Stocks Total: II. Accounts Receivable Accounts due from buyers and customers Other accounts receivable Deferred expenditures Accounts Receivable Total IV. Cash Assets Grand Total Liabilities I. Funds 1. Capital fund 3. Reserve fund Funds Total: II. Long-term liabilities: 1. Long-term loans from credit institutions 2. Other loans Long-term liabilities total: III. Short-term liabilities: 1. Short-term loans from credit institutions Other loans 2. Tax and state social insurance contributions 3. Other liabilities Short-term liabilities total: Liabilities Grand Total 31.12.2010. Ls 31.12.2009. Ls
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11 12 13
(44 622) 23 818 (20 804) 98 527 11 045 109 572 3 605 1 005 3 252 33 542 41404 130 172
(52 499) 7 877 (44 622) 100 687 10 958 111 645 5 554 13 634 4 696 50 193 74 077 141 100
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Transparency International Latvia 2010 Annual Report Donations Statement Annex I. Opening balance Donations and contributions received during the year of account 1. For unlimited application (including general donations) 1.1. Latvian legal entities 1.2. Foreign legal entities 1.3. Private persons (residents) 1.4. Private persons (non-residents) 1.5. Anonymous contributors and donors 2. For definite purposes (including, earmarked donations) 2.1. Latvian legal entities 2.2. Foreign legal entities 2.3. Private persons (residents) 2.4. Private persons (non-residents) II. Grand total of donations and contributions received during the year of account Disposition of donations and contributions 1. For unlimited application (including general donations) 1.1. For objectives and tasks provided for by Articles of Association 1.1.1. For public benefit activity 1.2. For administrative costs 2. For definite purposes (including, earmarked donations) 2.1. For objectives and tasks provided for by Articles of Association 2.1.1. For public benefit activity 2.1.2. For other objectives and tasks III. Grand total of disposition of donations and contributions IV. Closing balance Annex from pages 10 to 20 is an integral part of this Financial Statement. 2010 Ls 40 2009 Ls 2 641
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9 068
14 522
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6 105 3 003
Transparency International Latvia 2010 Annual Report Statement on administrative expenses made from general donations Annex 1. General donations received during the year of account 2010 Ls 2009 Ls
7 948
11 361
1 504
1 732
Annex Accounting Policy (a) General Principles The Association prepared the Annual Report in accordance with the Regulations No.808 of the Cabinet of Ministers of the Republic of Latvia dated 3 October 2006 Regulations on annual reports of associations, foundations and trade unions (hereinafter CM Regulations No.808). A year of account of the Association covers a 12 month period from the 1st of January to the 31st of December. (b) Membership fees, admission fee and other annual payments Reflect the grand total of membership fees and admission fees applicable to the year of account. (c) Revaluation of foreign currency All items of the balance sheet in foreign currency are translated into Latvian currency Lats at the official exchange rate of the Bank of Latvia as at the balance sheet date. Currency exchange rates prescribed by the Bank of Latvia as at 31st December: USD EUR 31.12.2010. 0.535 0.702804 31.12.2009. 0.489 0.702804
(d) Fixed Assets Depreciated book value of fixed assets is calculated by deducting from the initial cost the accumulated depreciation, also attrition of intangible assets and fixed assets depreciation amounts accounted during the year of account and during previous years. Amortization of intangible assets and depreciation of fixed assets are calculated applying the rates as follow: Real estate Other fixed assets % 2,5 20 - 35
(e) Stocks Stocks are reflected at their purchase price. If necessary the value of outdated, low turnover or damaged stock subjects to writing off. (f) Accounts receivable Accounts receivable in the balance sheet are reflected at net value, deducting from the initial value the special reserves for doubtful and bad debts. Special reserves for doubtful and bad debts are formed in cases, when the management believes that recovery of specially marked off debts is doubtful. Based on the lapse days of accounts due from buyers and customers, general reserves for bad and doubtful debts are formed additionally to the special reserves. (g) Taxes The grand total of liabilities of the Association to public budget and local budgets for payable taxes and dues, as well as for the mandatory state social insurance contributions.
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Transparency International Latvia 2010 Annual Report Annex (continuation) Accounting policy (continuation) (h) Loans Initially the loans are recognized in the amount of the received monetary items net of costs associated with the loan receipt. In further periods the loans are reflected at the amortized cost, which is derived by applying the loan effective interest rate. The difference between the amount of received loan net of costs associated with the loan receipt and the loan repayment value is being gradually included into profit & loss calculation during the loan period. (i) Donations and contributions donations and contributions intended for procurement of specific assets, are counted as deferred earnings in the balance sheet and posted to the profit & loss statement proportionally to their expected lifetime. (j) Cash and cash equivalents For the purposes of cash flow statement cash and cash equivalents are composed of petty cash, balance on current accounts.
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Transparency International Latvia 2010 Annual Report Annex (continuation) (1) Membership fees, admission fee and other annual payments 2010 Ls Membership fees 375 2009 Ls 336
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Received donations and contributions 7 948 1 120 9 068 11 357 3 165 14 522
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Other earnings 192 964 404 193 368 157 585 108 157 693
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Other expenses 10 787 3 878 23 562 5 025 725 4 376 968 10 162 8 255 1 715 750 1 393 1 500 1 419 821 554 75 890 5 990 2 533 9 716 5 042 3 050 234 5 187 1 230 2 409 3 720 1 363 1 321 1 179 1 113 678 642 390 194 45 991
Communication expenses Office expenses Royalties and similar expenses Interest expenses Office refurbishment costs Office costs Professional service costs Auditing costs * Project implementation costs Rent of premises Business travel expenses Transportation costs Loss from fluctuation in foreign currency exchange rate Representation expenses Office equipment, machinery rental Postage expenses Bank charges Other costs
* During the year of account the Company did not receive other services from the auditors. (6) Taxes 490 404
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Transparency International Latvia 2010 Annual Report Annex (continuation) (7) Fixed Assets Real estate Ls Initial cost 31/12/2009 Procured Retired 31/12/2010 Depreciation 31/12/2009 Calculated for 2010 Retired 31/12/2010 Depreciated book value 31/12/2010 Depreciated book value 31/12/2009 Other fixed assets and stock Ls Total Ls
82 875 82 875
78 731 80 803
10 797 14 750
89 528 95 553
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Overpayment of Real Estate Tax (Refer to Annex 14) Security Deposit Advance payments for services Accrued earnings Other accounts receivable
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Cash in bank
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As at 31 December 2008 Adjustment of the year 2008 Budget surplus in the year 2009 As at 31 December 2009 Budget surplus in the year 2010 As at 31 December 2010
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Transparency International Latvia 2010 Annual Report Annex (continuation) (12) Loans from credit institutions 31.12.2010. Ls Loan from AS Swedbank long-term Loan from AS Swedbank short-term Loans from credit institutions total
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On the 24 of May 2004 the Association received a loan to the tune of USD 113,134. In 2006 the loan was translated into EUR currency and the loan amount was increased to EUR 160,879. The loan monthly payments of EUR 1,000.00 consist of the loan principal and interest. Interest is payable at the rate 3 month EURIBOR + 2 %. The loan maturity date is 15/12/2016. As security for the performance of the obligations the Association has pledged real estate at 49 Aleksandra aka Street flat 4 in favour of AS Swedbank. Contract of Pledge Np. 04-032638-IN was entered into on 24 May 2004.
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Other loans 31.12.2010. Ls 31.12.2009. Ls 4 000 6 958 10 958 3 092 10 542 13 634 24 592
Loans from private persons long-term Loan from SIA Akots-I long-term Other loans total long-term Loan from SIA Akots-I short-term Loan from Transparency International Secretariat Other loans total short-term Other loans total
On the 17th of April 2007 the Association received a loan from SIA Akots-I in the amount of EUR 15,000. The loan maturity date is 31/12/2012. Interest rate 6% per annum. On the 31st of August 2009 the Association received an interest-free loan from Transparency International Secretariat in the amount of EUR 15,000. The loan was repaid in full in 2010.
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Debt as at 31/12/2009 (Overpayment) 31/12/2009 Calculated for 2010 Paid in 2010 Debt as at 31/12/2010 (Overpayment) 31/12/2010
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Transparency International Latvia 2010 Annual Report Annex (continuation) (15) Other accounts payable 31.12.2010. Ls Payments to personnel Deferred earnings for projects Accrued liabilities Settlement of accounts with suppliers 3 443 25 194 915 3 990 33 542 31.12.2009. Ls 5 099 38 020 3 855 3 219 50 193
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PBLA Mission in Latvia Semicom Ltd Intentum Ltd Arriva Ltd Association ELJA 50 Legal entities incorporated in the Republic of Latvia Sydney Latvian Society Ltd. Corporation Daugaviete Sidney Group WIRTSCHAFTSGILDE E.V. Z.HD. HR. H.D. LIEBRICH OTHR/DC Drivers License George Ramonas Daugavas Vanagi Mission in England Foreign legal entities Guntis Brzi Inese Voika Aivars Endzi Ilga Anita Brzkalna Gints Ppiis Madara Fridrihsone Inita Vecbatika Jnis Bernts Aelita vtia
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Transparency International Latvia 2010 Annual Report Annex (continuation) Received donations for unlimited application (continuation) Registration number/ personal ID code Juris Sils Valts Kalni Vita Anda Trauda Jnis trens Kaspars Roga Anita Astrda Apele Ilze Sakars Rasma Krklia Kristins Mielsons Krlis Rokpelis irts Jnis Zgners Sandra Priede Solvita Olsena Ieva Marija Laukere Brigita Muzikante Ilze Graudia Zinta Jansone Andrejs Vasijevs Zinta Jansone Mrcis Gobi Anna Zgure Anna Muhka Ilze Gulna Mra Apele-Blumins Juris Imants Baltputnis Pauls Raudseps Arvils Aeradens Aivars Ivars Juris Sinka Jnis Andrievs Eiche Rauls Ivars Apelis Pauls Juris Cltis Pteris Trmanis irts Jnis Zgners Dons Kristmas Sabne Dagmra Paulna Brece Krlis Rokpelis Private persons (residents) Anonymous (unknown) contributors and donors Received donations for unlimited application total 280250-12601 210174-10309 190562-11801 110438-13006 080984-10717 240935-12618 070646-13554 031273-13105 210584-11367 150450-12606 161171-11801 181170-11076 151040-13562 120840-13018 090671-12009 310771-12601 170867-12376 310771-12601 220671-11811 041056-14606 090143-12605 071049-11813 251263-13063 301262-13106 220260-13000 100534-12607 180733-12618 090571-13569 271042-12615 150450-12606 170169-12604 280558-11818 210584-11367
2009 Ls 257 20 63 531 100 15 50 50 20 100 150 30 50 900 50 300 70 100 50 141 20 1 000 500 45 50 20 500 200 80 703 20 10 6 195
1 482
795
7 947
11 361
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Transparency International Latvia 2010 Annual Report Annex (continuation) Received donations for unlimited application (continuation) (17) Earmarked donations Registration number/ personal ID code Vote for a wise public campaign Lolita igne Ints Sili Mintauts Aivars Endzi Ilga Anita Brzkalna Nils Students Riga City Council Anti-Corruption Monitoring Program Ilze Plaude Anda Maruta ilde Uldis Strautkalns Signe Rotberga Reinis Brzi 180873-10015 250342-13022 081240-13054 061265-12616 220368-11815
2010 Ls -
Parliament Transparency and Fairness Monitoring Program Karna Janova Aija Avotia Krijnis Zari
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Transparency International Latvia 2010 Annual Report Annex (continuation) (18) Disposition of donations for unlimited application 2010 Ls Parliament Transparency and Fairness Monitoring Program Hand-out duplication costs Fixed assets depreciation 49 891 940 36 64 50 2 386 2 536 2009 Ls 272 272 108 2 181 2 833 280 30 40 68 708 4 816 5 942
KNAB Activity Monitoring Project Salary of the political analyst, tax inclusive Development of Website Section Translation Fixed assets depreciation
Politics Monitoring and Interest Protection Program Business travel expenses Corruption index presentation event Meeting with reporters Hand-outs Transportation costs Communication expenses Website maintenance costs Fixed assets depreciation
Legal Support Program for Residents in cases of corruption Customer service costs Document forwarding expenses Transportation costs Fixed assets depreciation
14 1 40 1 070 1 125
Riga City Council Transparency Promotion Program Salary of the political analyst, tax inclusive Fixed assets depreciation
For public benefit activities total Administrative costs Accounting costs, tax inclusive Salary of the administrative director, including all taxes Utilities expenses Office costs Workshop, LAPAS members cash outlay Tax on land State tax Accounting Software improvements Workshop, LAPAS members cash outlay Fixed assets depreciation
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Transparency International Latvia 2010 Annual Report Annex (continuation) Disposition of donations and contributions for certain purposes (continuation) 2010 Ls Youth education program Remuneration for the project task group, tax inclusive Business travel expenses, Transportation costs Communication expenses Workshop costs Riga City Council Transparency Promotion Program Salary of the political analyst, tax inclusive 2009 Ls 1 058 319 373 750 2 500 120 120 2 620 3 041 3 041
For public benefit activities total Vote for a wise public campaign For other purposes and tasks Disposition of donations and contributions for certain purposes total
5 661
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