Audit 2001 KEP Financial Statements

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• Publié par: Udde
• Nombre de lectures: 14
• Langue: English

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Kosovo Enterprise Program
A Micro Finance Institution

Financial Statements for the year ended December 31, 2001
















Kosovo Enterprise Program : A Micro Finance Institution
Financial Statements for the year ended December 31, 2001






Contents

Pages

General information 3-4

5 Report of the Independent Auditors

Income Statement 6

Balance Sheet 7

Cash flow statement 8

Notes to the Financial Statements
1. Summary of significant accounting policies 9-12
2. Other income 12
3. Staff Expense 12
4. Bad and doubtful debts expense 13
5. Taxation 13
6. Related party transactions 13
7. Financial instruments 13
8. Loans to customers 13-14
9. Branch equity 15-16
10. Maturity analysis 17
11. Property, plant and equipment 18
12. Post Balance Sheet Events 18
13. Currency analysis 19


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Kosovo Enterprise Program : A Micro Finance Institution
Financial Statements for the year ended December 31, 2001


General Information

Organisation’s Operations

The Micro Finance Institution Kosovo Enterprise Program (hereafter KEP) is currently a
program of the humanitarian organization International Catholic Migration Commission –
Switzerland (hereafter ICMC). ICMC-KEP is registered with the Banking and Payments
Authority of Kosovo (hereafter BPK), as a non-bank micro financial institution as defined
in section 2 of Regulation 1999/21. KEP commenced its operations in August 1999.
KEP’s principal activity is to provide financial services to the people of Kosovo.

ICMC currently manages KEP and the loan funds contributed by donors on a fiduciary
basis until a new autonomous legal entity is created in Kosovo under the relevant laws.
Until that time, all loan fund contributions received by KEP from donors via ICMC are
considered as branch equity. The loan funds and operations will be transferred to the new
entity once formed.

Certain operating costs of KEP such as personnel costs are borne directly by ICMC or
other donors on behalf of KEP. These operating expenses are included within the financial
statements of KEP, with a corresponding and equal amount being included within
contribution income to reflect the fact that the donors are deemed to have made utions up to the value of the operating expenses provided.

Donors have also donated funds to KEP to purchase fixed assets. The assets are recognised
in these financial statements upon purchase and the donated funds are recognised as
deferred income. The deferred income is recognised as income in the income statement
over the useful life of the fixed assets.
















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Kosovo Enterprise Program : A Micro Finance Institution
Financial Statements for the year ended December 31, 2001



Board of Directors

KEP is governed by the following people:

Muriithi Kagai Executive Director, KEP
Albert Ramirez ICMC
Joe Hooper UNDP
Jennifer Johnson PRM
Luisa Cremonese UNHCR
Vjollca Gjonbalaj


Management

The Management of KEP comprises of the following persons:

Muriithi Kagai Executive Director
Luke Sayi Branch Manager
Charles Njoroge Br
Francis Njau MIS Manager
Cindy Jakovac Finance and Administration Manager


Number of authorised offices and registered addresses

The activities of KEP are distributed over 2 branches:

a) Prizren, Kosovo
Sub Offices - Gjilan

b) Peja, Kosovo
Sub Office – Gjakova, Pristina, Mitrovica

The head office is located in Prizren, Internacionalja I str. 58, Kosovo.

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PricewaterhouseCoopers SA
Avenue Giuseppe-Motta 50
Case postale 2895
1211 Geneva 2
Switzerland
Telephone [phone]
To the Board of Directors of Fax [phone]
Kosovo Enterprise Program : A Micro Finance Institution

Report of the Independent Auditors

Introduction

We have audited the accompanying balance sheet of the Kosovo Enterprise Program
(KEP) as of December 31, 2001, and the related income and cash flow statements for the
year then ended. These financial statements are the responsibility of KEP management.
Our responsibility is to express an opinion on these financial statements based on our
audit.

Scope

We conducted our audit in accordance with International Standards on Auditing. Those
Standards require that we plan and perform 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 management, as well as evaluating the overall presentation
of the financial statements. We believe that our audit provides a reasonable basis for our
opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial
position of the Kosovo Enterprise Program as of December 31, 2001, and of the results of
its operations and its cash flows for the year then ended in accordance with International
Accounting Standards.

PricewaterhouseCoopers S.A.



M Foley A McCallum

Geneva, July 31, 2002


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Kosovo Enterprise Program : A Micro Finance Institution
Financial Statements for the year ended December 31, 2001


Income Statement

Year ended Period August 1, (all amounts expressed in DEM) Notes
December 31, 1999 to
2001 December 31,
2000

Interest income on loans to customers 1,223,555 214,463
Administration fees on loans to customers 251,752 103,121
Training fees 38,710 31,130
Other income 2 21,598 3,068

Income from operations 1,535,615 351,782
Allocation to provision for doubtful debts 4 130,702 85,969
Personnel costs 3 898,783 825,462
Administrative expenses 763,717 664,983
Bad debts expense 4 0 9,300

Operating expenses 1,793,202 1,585,714

Operating deficit for the period before -257,587 -1,233,932
contributions
Contributions against operating expenses 1,255,604 1,443,896
Current period recognition of 76,552 52,820
contributions for the purchase of fixed
assets

Net surplus of income over expenses 1,074,569 262,784
for the period

Note: The accompanying notes are an integral part of these financial statements.



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Kosovo Enterprise Program : A Micro Finance Institution
Financial Statements for the year ended December 31, 2001


Balance Sheet

Notes (all amounts expressed in DEM) December December
31, 2001 31, 2000
ASSETS
Non-current assets
Property, plant and equipment 11 305,515 232,996

Current assets
Cash and cash equivalents 643,839 1,355,324
Loans to customers 8 6,989,309 2,779,659
Receivable from ICMC 737,403 1,180,860
Interest receivable from customers 72,085 0
Prepaid expenses 16,102 4,500
Total current assets 8,458,738 5,320,343

Total assets 8,764,253 5,553,339

LIABILITIES

Current liabilities
Accruals and other short term liabilities 30,546 9,607