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FUNDACIÓ MUSEU PICASSO DE BARCELONA
ANNUAL ACCOUNTS FOR THE 2015 FINANCIAL YEAR
• BALANCE SHEET AT 31 DECEMBER 2015 • PROFIT AND LOSS STATEMENT FOR THE FINANCIAL YEAR
ENDED 31 DECEMBER 2015 • STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL
YEAR ENDED 31 DECEMBER 2015 • CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED
31 DECEMBER 2015 • REPORT FOR THE 2015 FINANCIAL YEAR
ANNUAL ACCOUNTS FOR THE FINANCIAL YEAR 2015
FUNDACIÓ MUSEU PICASSO DE BARCELONA
BALANCE SHEET AT 31 DECEMBER 2015 AND 2014 (figures expressed in euros)
ASSETS Notes in
the report
2015
2014
A) NON-CURRENT ASSETS 64,332,465.68 65,076,175.34
II. Tangible fixed assets 5 63,848,725.68 64,836,175.34
Buildings 63,529,818.82 64,620,511.84
Technical installations 215,241.48 154,449.64
Furniture 7,348.37 -
Data processing equipment 29,905.49 23,886.79
Other fixed assets 66,411.52 37,327.07
IV. Cultural assets 6 483,740.00 240,000.00
Museums 483,740.00 240,000.00
B) CURRENT ASSETS 2,390,480.42 1,478,968.73
III. Users, sponsors and debtors for activities and other accounts receivable 7.2 433,812.17 511,924.71
Users and receivables for sales and services rendered 71,011.31 40,762.52 Receivables, group and associated institutions and other related parties 200,718.72 341,792.98 Other debtors 162,082.14 106,400.42
Staff - 18,437.37
Other credits with the public administration 11.2 - 4,531.42
V. Short-term financial investments 7 33.73 1,000.00
Other financial assets 33.73 1,000.00
VI. Short-term accruals 58,431.49 68,464.48
VII. Cash and cash equivalents 1,898,203.03 897,579.54
TOTAL ASSETS 66,722,946.10 66,555,144.07
Notes 1 to 17 in the enclosed report are an integral part of the balance sheet as at 31 December 2015.
FUNDACIÓ MUSEU PICASSO DE BARCELONA
BALANCE SHEETS AT 31 DECEMBER 2015 AND 2014 (figures expressed in euros)
NET EQUITY AND LIABILITIES
Notes in the report
2015
2014
A) NET EQUIITY 65,716,472.97 65,389,646.18
A-1) Shareholders’ equity 1,815,385.49 409,300.97
I. Endowment fund 9 30,000.00 30,000.00 Endowment fund 30,000.00 30,000.00
IV. Surplus from previous years 379,300.97 -
Other surplus 379,300.97 -
IV. Surplus from the financial year 1,406,084.52 379,300.97
A-3) Subsidies, donations and bequests received 10.1 63,901,087.48 64,980,345.21
Official capital subsidies 365,398.82 352,320.00
Other subsidies, donations and bequests 63,535,688.66 64,628,025.21
C) CURRENT LIABILITIES 1,006,473.13 1,165,497.89
II. Short-term provisions 12 66,398.40 -
III. Short-term debts 8 9,944.38 -
Other financial liabilities 9,944.38 - V. Creditors due to activities and other payables 8.2 873,585.76 1,138,528.89
Sundry creditors 573,659.52 751,486.45
Creditors, group and associated companies 111,869.21 182,081.64
Staff 102,248.69 92,700.15
Other debts with the public administration 11.2 85,808.34 112,260.65
VI. Short-term accruals 58,544.59 26,969.00
TOTAL LIABILITIES 66,722,946.10 66,555,144.07
Notes 1 to 17 in the enclosed report are an integral part of the balance sheet as at 31 December 2015.
FUNDACIÓ MUSEU PICASSO DE BARCELONA
PROFIT AND LOSS STATEMENT FOR THE FINANCIAL YEARS ENDED 31 DECEMBER 2015 AND 2014
(figures expressed in euros)
PROFIT AND LOSS STATEMENT
Notes in the report
2015
2014
1. Income from activities 13.2 8,309,991.73 7,298,335.83
Sales 29,811.16 20,714.08
Services rendered 7,529,618.47 6,527,621.75
Other subsidies, donations and bequests included in the profit/(loss) for the year
10.2 750,562.10 750,000.00
6. Other income from activities 13.3 735,405.75 675,406.48
Sundry and other current operating income 735,405.75 675,406.48
7. Staff expenses 13.1 (-) 1,637,211.69 (-) 1,353,875.37
Wages and salaries (-) 1,298,327.26 (-) 1,075,154.48 Social security (-) 338,884.43 (-) 278,720.89
8. Other operating expenses 13.4 (-) 5,985,095.82 (-) 6,236,523.61
External services (-) 5,987,618.83 (-) 6,212,685.14
Taxes (-) 4,661.12 (-) 23,838.47
Losses, impairment and changes in provision for business operations 7,184.13 -
9. Amortisation of fixed assets 5 (-) 1,128,294.91 (-) 8,364.16
10. Subsidies, donations and bequests transferred to profit/(loss) 10.1 1,110,767.82 3,279.61
13. Other profit/(loss) (-) 721.44 (-) 30.27
I) OPERATING PROFIT/(LOSS) 1,404,841.44 378,228.51
14. Financial income 1,243.08 1,072.46
FINANCIAL PROFIT/(LOSS) 1,243.08 1,072.46
PRE-TAX PROFIT/(LOSS) 1,406,084.52 379,300.97
Tax on profit - -
PROFIT/(LOSS) FOR THE FINANCIAL YEAR 1,406,084.52 379,300.97
Notes 1 to 17 in the enclosed report are an integral part of profit and loss statement for the financial year ended 31 December 2015.
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FUNDACIÓ MUSEU PICASSO DE BARCELONA
STATEMENT OF CHANGES IN NET EQUITY FOR THE FINANCIAL YEARS ENDED 31 DECEMBER 2015 AND 2014
a) Statement of recognised income and expenses
Notes in the
report
2015
2014
A) Profit/(loss) from the profit and loss statement 1,406,084.52 379,300.97
Income and expenses attributed directly to net equity III. Subsidies, donations and bequests received 10 31,510.53 64,983,624.82
B) Total income and expenses attributed directly to net equity 31,510.53 64,983,624.82
Transfers to the profit and loss statement IX. Subsidies, donations and bequests received 10 (-) 1,110,768.26 (-) 3,279.61
C) Total transfers to the profit and loss statement (-) 1,110,768.26 (-) 3,279.61
TOTAL RECOGNISED INCOME AND EXPENSES 326,826.79 65,359,646.18
Notes 1 to 17 in the enclosed report are an integral part of the statement of changes in net equity for the financial year ended 31 December 2015
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FUNDACIÓ MUSEU PICASSO DE BARCELONA
STATEMENT OF CHANGES IN NET EQUITY FOR THE FINANCIAL YEARS ENDED 31 DECEMBER 2015 AND 2014 b) Total statement of changes in net equity
Endowment fund
Other surplus Surplus from the financial
year
Subsidies. donations and
bequests received
TOTAL
BALANCE AT THE END OF 2013 30,0000.00 - - - 30,0000.00
Adjustments for errors in 2013 and previous years - - - -
ADJUSTED BALANCE AT THE START OF 2014 30,0000.00 - - - 30,0000.00
Total recognised income and expenses - 379,300.97 64,980,345.21 65,359,646.18
BALANCE AT THE END OF 2014 30,0000.00 - 379,300.97 64,980,345.21 65,389,646.18
Adjustments for errors in 2014 - - - - -
ADJUSTED BALANCE AT THE START OF 2015 30,0000.00 - 379,300.97 64,980,345.21 65,389,646.18
Total recognised income and expenses - 1,406,084.52 (-) 1,079,257.73 326,826.79 Other variations in net equity - 379,300.97 (-) 379,300.97 - -
BALANCE AT THE END OF 2015 30,0000.00 379,300.97 1,406,084.52 63,901,087.48 65,716,472.97
Notes 1 to 17 in the enclosed report are an integral part of the statement of changes in net equity for the financial year ended 31 December 2015.
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FUNDACIÓ MUSEU PICASSO DE BARCELONA
CASH FLOW STATEMENT FOR THE FINANCIAL YEARS ENDED 31 DECEMBER 2015 AND 2014
2015
2014
A) CASH FLOW FROM BUSINESS OPERATIONS 1,353,698.65 1,320,814.22 1. Pre-tax profit/(loss) for the financial year 1,406,084.52 379,300.97 2. Adjustments to profit/(loss) 82,682.41 4,012.09
Amortisation of fixed assets 1,128,294.91 8,364.16
Variations in provisions 66,398.40 - Subsidies transferred (-) 1,110,767.82 (-) 3,279.61 Financial income (-) 1,243.08 (-) 1,072.46
3. Changes in working capital (-) 136,311.36 936,428.70
Debtors and other receivables 78,112.54 (-)159,604.71 Other current assets 10,999.26 (-) 69,464.48 Creditors and other accounts payable (-) 264,943.13 1,138,528.89 Other current liabilities 39,519.97 26,969.00
4. Other cash flow from business operations 1,243.08 1,072.46
Interest payments 1,243.08 1,072.46
B. CASH FLOW FROM INVESTMENT ACTIVITIES (-) 384,585.69 (-) 453,234.68
6. Payments for investments (-) 388,041.31 (- 453,234.68 -
Tangible fixed assets (-) 144,301.31 (-) 213,234.68 Cultural assets (-) 243,740.00 (-) 240,000.00
7. Monies received for divestitures 3,455.62 -
Tangible fixed assets 3,455.62 -
C. CASH FLOW FROM FUNDING ACTIVITIES 31,510.53 - 9. Monies paid and received for equity instruments 31,510.53 -
Subsidies, donations and bequests received 31,510.53 - -
E. NET INCREASE IN CASH AND CASH EQUIVALENTS 1,000,623.49 867,579.54 Cash and cash equivalents at the start of the year 897,579.54 30,000.00 Cash and cash equivalents at the end of the year 1,898,203.03 897,579.54
Notes 1 to 17 in the enclosed report are an integral part of the cash flow statement at 31 December 2015.
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REPORT FOR THE FINANCIAL YEAR 2015
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REPORT FOR THE FINANCIAL YEAR 2015
This report has been prepared in order to complete, extend and discuss the information included in the balance sheet, the profit and loss statement, the statement of changes in net equity and the cash flow statement. 1. THE FOUNDATION’S BRANCH OF ACTIVITY
1.1 Incorporation and applicable legislation
The FUNDACIÓ MUSEU PICASSO DE BARCELONA (hereinafter the FOUNDATION) is a non-profit foundation, considered an institution belonging to the public sector of the local government of Catalonia, which was established by charter by Barcelona City Council and the Fundació Barcelona Cultura on 6 March 2013.
Its registered office is in Barcelona at C/ Montcada, number 15, and its tax identification number is G-66008897. It is recorded under number 2781 in the Registry of Foundations of the Ministry of Justice of the Government of Catalonia.
The FOUNDATION is governed by the following provisions:
• Its Articles of Association
• The declarations contained in the Founding Charter
• The agreements adopted by the Board of Trustees, including:
- The system for delegating tasks to the Executive Committee, the Second Vice President and the Director of the FOUNDATION
- Internal procurement instructions
• The Government of Catalonia’s legislation concerning foundations:
- Act 21/2014, of 29 December, on the foundations commission and verification of the activities of associations declared of public interest.
- Act 7/2012, of 15 June, amending the Third Book of the Civil Code of Catalonia
on legal entities. - Act 5/2011, of 19 July, amending Act 4/2008, of 24 April, on the third book of the
Civil Code of Catalonia on legal entities.
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- Act 4/2008, of 24 April, on the third book of the Civil Code of Catalonia, titles I
and III, and articles 51 and 52 of Act 5/2001, of 2 May, on foundations, which remain in force.
- Decree 37/1987, of 29 January, approving the instruction for the organisation and
operations of the Government of Catalonia’s commission on private foundations in Catalonia (in force until 20 January 2015).
• Other Spanish legislation (Act 49/2002, of 23 December, on the tax system of non-profit organisations and tax incentives for sponsorship and Royal Decree 1270/2003, of 10 October, approving the regulations for applying the tax system of non-profit organisations and tax incentives for sponsorship).
• The regulations governing public procurement are applicable in the field of procurement and, in particular, the consolidated text of the Act on Public Sector Contracts (Legislative Royal Decree 3/2011, of 14 November). In order to comply with article 191 of the consolidated text of the Act on Public Sector Contracts and enforce the principles of publicity, competition, transparency, confidentiality, equality and non-discrimination in its contractual activity, the Board of Trustees approved Internal Procurement Instructions in its meeting on 16 December 2013.
• In the accounting field, Decree 259/2008, of 23 December, approving the Accounting Plan for foundations and associations subject to the legislation of the Government of Catalonia (PCFundAss), in force since 1 January 2009.
1.2 Institutional objectives
The purpose of the FOUNDATION is to administer, manage and organise the Museu Picasso in Barcelona and, in this respect, its heritage and resources. According to its Articles of Association, the objectives of the FOUNDATION are as follows:
a) To ensure the protection, preservation, study, dissemination and restoration of the
artistic, architectural and documentary heritage that comprises the collection of the Museu Picasso.
b) To increase its assets by adding value to the collection or complementing it in a significant manner.
c) To exhibit the collection under appropriate, orderly conditions for it to be seen and
studied, contributing to the creation of new narratives about Picasso, explaining the artist’s links to Barcelona.
d) To undertake programmes of temporary exhibitions that expand on and enrich
knowledge about Picasso and his artistic and social environment.
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e) To promote public access to the collection and the documentary archives and
facilitate their study by researchers.
f) To foster knowledge, dissemination and communication of the heritage looked after by the Museum and to carry out educational and teaching activities about its content, fostering critical spirit and attaining greater social implementation.
g) To promote research on Picasso and his work and to carry out research programmes
in conjunction with the national and international scientific community.
h) To forge networks of cooperation and collaboration with other national and foreign institutions, museums, universities and research centres and to promote the sharing of experiences and knowledge.
i) To ensure the preservation and restoration of the buildings belonging to the
FOUNDATION. The Board of Trustees is the governing and administrative body of the FOUNDATION, which represents and manages it, and adopts the powers and roles necessary to achieve the foundation’s ends. The primary objectives established by Barcelona City Council when creating the new institution include giving the museum greater independence in its management in order to seek out new tools for administration and fulfil the museum’s potential for growth, to speed up the museum’s resource management processes, and to provide greater flexibility when making strategic decisions about the future of the museum. In addition, the aims include enabling greater representation and visibility in society, while seeking a legal status involving more tax benefits to secure more resources, lending the museum broader visibility to potential future sponsors interested in cooperating with it, and making it more open to society in Barcelona. In the 2013 financial year, the FOUNDATION received a contribution for its foundation endowment fund when it was incorporated, as stipulated in the Founding Charter, and engaged in no other activities. As stipulated in its Articles of Incorporation, it carries out its work primarily in the municipally-owned buildings that make up today’s Museu Picasso, specifically:
- Montcada no. 15 (Palau Aguilar) - Montcada no. 17 (Baró de Castellet) - Montcada no. 19 (Palau Meca) - Montcada no. 21 (Casa Mauri) - Montcada no. 23 (Palau Finestres) - Plaça Sabartés no. 1 (formerly Flassaders 24-26-28)
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In the Founding Charter, Barcelona City Council transferred these buildings to the FOUNDATION for it to engage in its foundational objectives. The regular maintenance of the buildings and facilities is the responsibility of the FOUNDATION. Barcelona City Council also transferred the collection, which is essential for the operations of the Museum, to the FOUNDATION. The Museu Picasso de Barcelona is a benchmark for knowledge of the formative years of Pablo Ruiz Picasso and is above all the ultimate expression of the strong links between Picasso and the city. Until the establishment of the FOUNDATION, it was a municipal facility within the Institut de Cultura de Barcelona.
2. BASIS FOR PRESENTATION OF THE ANNUAL ACCOUNTS 2.1 True and faithful image
The annual accounts for the 2015 financial year have been prepared based on the accounting records of the FOUNDATION, in accordance with the laws in force and the rules and principles set out in the Accounting Plan for foundations and associations subject to the legislation of the Government of Catalonia, as approved by Decree 259/2008, of 23 December, of the Ministry of Justice of the Government of Catalonia and in accordance with subsequent amendments where appropriate, in order to show a true and faithful image of the equity, financial position, changes in net equity and the veracity of the flows included in the statement on cash flow and profit/(loss) from its operations.
The figures contained in the documents comprising the annual accounts are expressed in euros, the working currency for the FOUNDATION’s operations.
2.2 Accounting principles
The criteria mentioned in note 4 regarding valuation rules have been followed when preparing the annual accounts, and all the mandatory accounting principles that could have a significant effect on them have been applied.
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2.3 Critical aspects in the assessment and estimation of uncertainty
In some cases, the preparation of annual accounts requires estimates to be made and estimations to be taken into consideration. These must be assessed continually over time, and be based primarily on the historical experience of the FOUNDATION or, failing that, on that of other institutions working within the same area of activity as the FOUNDATION. The expectations for the future considered reasonable according to the circumstances must also be taken into account.
The estimates considered when preparing the annual accounts have been made according to the best information available at the time of their preparation. Any future change in these estimates would be applied on a prospective basis from the time they become known, and provided they improve the quality of information presented, acknowledging the effect of the change on the estimate in the profit and loss statement for the financial year concerned.
The main estimates and judgements considered in the annual accounts are as follows:
• Service lives of elements of the tangible fixed assets (note 4.1).
• Fair values of financial instruments (note 4.4).
2.4 Comparison of information
The annual accounts for the 2015 and 2014 financial years have been preparing applying
uniform criteria for valuation, grouping and classification to ensure the information portrayed
is homogenous and comparable.
No comparative information from 2014 is shown with respect to the average supplier
payment period, given that amendments to the regulations have been made, meaning that
these are the first annual accounts drawn up in relation to this aspect.
2.5 Changes in accounting criteria
The FOUNDATION has not made any significant changes in accounting criteria in relation to
previous years which would affect the annual accounts.
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3. APPROPRIATION OF PROFIT/(LOSS)
Appropriation of profit/(loss)
The Board of Trustees proposes appropriating the surplus from the financial year in the manner shown in the table below:
Basis for distribution 2015 Surplus from the financial year 1,406,084.52
- Total basis for distribution = total appropriation 1,406,084.52 Allocation to
Other surplus 1,406,084.52
- Total appropriation = total basis for distribution 1,406,084.52
4. VALUATION RULES
The accounting criteria and primary valuation rules used by the FOUNDATION in the preparation of its annual accounts for the financial year ended 31 December 2015 were as follows:
4.1 Tangible fixed assets
These are valued at their purchase price, net of accumulated amortisation and any impairment losses they have experienced.
The items assigned to Barcelona City Council (buildings) and the Institut de Cultura de Barcelona (technical installations, furniture and data processing equipment) are recorded at their fair value. In the case of buildings, the valuation mentioned above was carried out by Barcelona City Council Heritage Department and was recorded for accounting purposes on 31 December 2014, which was the date on which the assets were formerly assigned by the Council. Their amortisation is accounted for each item individually, starting from the date of entry into service, based on the estimated service life and applying the linear method. The estimated service lives of each group of items of tangible fixed assets are as follows:
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Years
Buildings 65 Technical installations, machinery and tools 10 Furniture 10 Computer equipment 4 Other fixed assets 10
Value impairment of tangible fixed assets
When carrying out its activities, the FOUNDATION uses assets that do not generate cash flows. As stated in Order EHA/733/2010, of 25 March, approving accounting aspects of public companies operating under certain circumstances, assets that do not generate cash flows are those that are not used in order to obtain a profit or financial return, but are instead used to obtain social economic flows that benefit the community by means of a potential service or public interest, in return for a price established directly or indirectly by the public administration as a result of the strategic nature or public interest of the activities carried out.
At the year end, the FOUNDATION was assessing value impairment in its various assets that do not generate cash flows, estimating the recoverable value of those assets, which is either their fair value or their value in use, whichever is the greatest, whereby their value in use is deemed to be the depreciated replacement cost. If the recoverable value is less than the net book value, the appropriate provision for the value impairment will be made in the profit and loss statement.
When evaluating the value impairment of the FOUNDATION’s assets, the existence of a single cash-generating unit (CGU) linked to the direct management of the Museu Picasso has been taken into consideration.
4.2 Assets forming part of cultural heritage
In accordance with the provisions of Decree 259/2008, of 23 December, approving the Accounting Plan for foundations and associations subject to the legislation of the Government of Catalonia, and specifically the 7th regulation on valuation of cultural heritage, cultural heritage is considered to be fixed or movable assets of artistic, historical and cultural, paleontological, archaeological, ethnological, scientific or technical interest, as well as documentary and bibliographic heritage, sites, archaeological areas, natural sites, gardens and parks with artistic, historical, cultural or anthropological value. In specific terms, the assets meeting the conditions stipulated in Act 16/1985, of 25 June, on historical heritage and Act 9/1993, of 30 September, on Catalan cultural heritage, are included.
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A series of works and documents on Pablo Ruiz Picasso’s relationship with Barcelona, known as the Gustau Gili and Ana Maria Torra collection, and a host of photographs of Pablo Ruiz Picasso acquired from Ms Antonina Rodrigo, have been classified as cultural heritage. Cultural assets are valued at their purchase price, but due to their nature, they are not subject to amortisation.
As stated in note 1.2 above, Barcelona City Council transferred the collection, essential for the operations of the Museum, to the FOUNDATION. However, given the unique characteristics of this collection, it is impossible to estimate its fair value, and as a result these annual accounts do not include any valuation of them.
4.3 Leases
Leases are classified as financial leases provided that it is apparent from their conditions that the risks and expenses inherent to the ownership of the asset under agreement are substantially passed on to the lessee. All other leases are classified as operating leases, which are subject to accounting and charged to the profit and loss statement in the financial year in which they are accrued.
As of 31 December 2015 and 2014, the FOUNDATION only had operating leases.
4.4 Financial instruments
Financial instruments are classified upon initial recognition as assets or liabilities, in accordance with the economic nature of the contractual arrangements and the definitions of financial assets or liabilities.
a) Financial assets
The FOUNDATION classifies its financial assets in this category, according to their characteristics and their intended destination when they were initially recognised.
Financial assets maturing in one year or less are classified as current, and as non-current if the maturity exceeds one year.
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The FOUNDATION records the write-off of a financial asset when it has expired or when the contractual rights to its flows have been transferred, and the risks and rewards inherent to its ownership have been substantially transferred. In the specific case of receivables, this is generally deemed to take place if the risks of default and insolvency have been transferred. They are initially valued at their fair value which is the transaction price, unless there is any evidence to the contrary. In subsequent valuations they are valued at amortised cost, and the interest accrued is accounted for in the profit and loss statement using the effective interest rate method, except for loans and receivables with a maturity not exceeding one year, which continue to be valued at their fair value.
When there is reasonable doubt regarding the recoverability and maturity of the balances of accounts that are classified in the category of financial assets at amortised cost, the FOUNDATION makes the appropriate value correction due to impairment in the profit and loss statement for the financial year in which the impairment has emerged. When calculating impairment losses, the market value of the asset is used as a substitute for the current value of future cash flows. Reversals of previously recognised losses owing to impairment, if any, are listed in the profit and loss statement for the financial year in which the impairment is eliminated or acquired. Debtors for commercial operations and other receivables are subject to value adjustment after each case is analysed individually.
b) Financial liabilities
The FOUNDATION classifies its financial liabilities in this category according to their characteristics and their intended destination when they were initially recognised.
Financial liabilities maturing in one year or less are classified as current, and as non-current if the maturity exceeds one year.
The write-off of a financial liability takes place when the obligation generated has expired.
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They are initially valued at their fair value and the expenses necessary for their purchase are also recorded. In subsequent periods, the difference between the funds obtained (net of the expenses necessary to obtain them) and the redemption value, if any and if significant, is recognised in the profit and loss statement during the lifetime of the debt according to the effective interest rate.
Debts due to commercial operations with a maturity not exceeding one year and without a contractual interest rate are valued both initially and subsequently at their nominal value when the effect of discounting the cash flows is not significant.
4.5 Tax on profit
Tax on profit is calculated based on the profit/(loss) for the financial year considering the differences, if any, between the book profit/(loss) and the taxable profit/(loss) (tax assessment base) and distinguishing between permanent and temporary differences for the purposes of determining tax on profit established in the financial year. The FOUNDATION is covered by the tax system for non-profit organisations set out in Law 49/2002, of 23 December.
4.6 Provisions and contingencies The FOUNDATION recognises a provision for a contingent liability for accounting purposes when a current obligation arises as a result of past event, when it is likely that economic damages may be brought about for the FOUNDATION and the sum can be estimated in a reliable manner. Provisions are valued on the basis of information available according to the current value of the best possible estimate of the sum needed in order to cancel or transfer the obligation to a third party, with adjustments due to the update of the provision being recorded as a financial expense according to its accrual. Moreover, potential obligations arising as a result of past events, the occurrence of which is subject to whether or not one or more future events takes place beyond the intent of the FOUNDATION, are considered contingent liabilities. They are not recorded for accounting purposes, and details of them are only included in the report where necessary.
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4.7 Income and expenses
These are generally recorded based on the principle of accrual and the correlation between income and expenses, regardless of when the monetary flow derived from collection or payment thereof occurs.
4.8 The environment
Expenses arising from the FOUNDATION’s activities aimed at protecting and improving the environment are accounted for as an expense in the financial year they are incurred, where appropriate. However, if these are investments resulting from actions to minimise environmental impact and protect and improve the environment, they are accounted for as an increase in the value of the fixed assets.
4.9 Subsidies, donations and bequests received
Non-reimbursable subsidies, donations and bequests are accounted for as income directly attributed to the net equity and recognised in the profit and loss statement as income on a systematic and rational basis in line with the costs arising from the subsidy.
To this end, a subsidy, donation or bequest is considered non-reimbursable when there is no individual agreement for conferring the subsidy, donation or bequest, and all the conditions for conferring it have been met, and there are no reasonable doubts that it will be received.
Other subsidies, donations or bequests recorded as the FOUNDATION’s equity are the value of the buildings transferred from Barcelona City Council and the furniture, installations and data processing equipment assigned by the Institut de Cultura de Barcelona when it was the institution that previously managed the Museu Picasso. This is allocated to the profit and loss statement in proportion to the provision for amortisation made for those assets. Financial subsidies, donations or bequests are valued according to the fair value of the amount granted.
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4.10 Related party transactions
Commercial transactions with related parties are recorded at their fair value. The balances receivable or payable arising from these transactions subsequently appear on the balance sheet at amortised cost, which is the same as the nominal value when the period for carrying them out or making them payable is less than one year, and they have no associated contractual interest rate.
5. TANGIBLE FIXED ASSETS
The changes in the tangible fixed assets account during the 2015 and 2014 financial years were as follows:
Buildings
Technical
installations
Furniture
Data processing equipment
Other fixed
assets
Total
Cost
Start of activity
- - - - -
Assignment 64,620,511.84 2,538.81 206,890.31 13,896.49 - 64,843,837.45 Additions - 154,528.38 - 20,013.16 38,693.14 213,234.68
Balance at 31.12.2014 64,620,511.84 157,067.19 206,890.31 33,909.65 38,693.14 65,057,072.13 Additions - 84,605.70 7,478.16 14,738.81 37,478.64 144,301.31
Write-offs (-) 0.44 (-) 1,196.25 (-) 129.79 ( -) 216.40 (-) 1,913.18 (-) 3,456.06 Balance at 31.12.2015 64,620,511.40 240,476.64 214,238.68 48,432.06 74,258.60 65,197,917.38 Accumulated amortisation Start of activity - - - - - - Assignment - (-) 317.35 (-) 205,254.23 (-) 6,961.05 - (-) 212,532.63 Additions - (-) 2,300.20 (-) 1,636.08 (-) 3,061.81 (-) 1,366.07 (-) 8,364.16
Balance at 31.12.2014 - (-) 2,617.55 (-) 206,890.31 (-) 10,022.86 (-) 1,366.07 (-) 220,896.79 Additions (-) 1,090,692.58 (-) 22,617.61 - (-) 8,503.71 (-) 6,481.01 (-) 1,128,294.91
Balance at 31.12.2015 (-) 1,090,692.58 (-) 25,235.16 (-) 206,890.31 ( -) 18,526.57 (-) 7,847.08 (-) 1,349,191.70 Net value at 31.12.2015
63,529,818.82 215,241.48 7,348.37 29,905.49 66,411.52 63,848,725.68
Net value at 31.12.2014
64,620,511.84 154,449.64 - 23,886.79 37,327.07 64,836,175.34
The primary investments made in 2015 by the FOUNDATION in the Museum were the purchase of a microscope, computer materials and a digital RF repeater, as well as updates to CL3 electrical wiring. The primary investments made in 2014 by the FOUNDATION in the Museum were the purchase and installation of three CL3 air conditioners, the adaptation of the fire suppression system and the acquisition of an accreditation system.
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The assignments for the 2014 financial year were as follows: - Buildings: the municipally owned buildings comprising the Museu Picasso which have
been transferred to the FOUNDATION by Barcelona City Council, amounting to 64,620,511.84 euros (note 10.1).
- The furniture, technical installations and data processing equipment provided by the Institut de Cultura de Barcelona, the institution which managed the Museu Picasso until the creation of the FOUNDATION, amounting to 10,792.98 euros (note 10.1).
The furniture assigned by the Institut de Cultura de Barcelona, with a fair value of 206,890.31 euros, is in use and fully amortised.
6. CULTURAL ASSETS The changes in the cultural assets section during the 2015 and 2014 financial years were as follows:
Cultural assets Cost
Start of activity -
Additions 240,000.00
Balance at 31.12.2014 240,000.00
Additions 243,740.00
Balance at 31.12.2015 483,740.00
Value at 31.12.2015 483,740.00
Additions in the 2015 and 2014 financial years were as follows: - The works and documents of the Gustau Gili and Anna Maria Torra collection, acquired
by FOUNDATION during the 2014 and 2015 financial years.
The purchase and sale of the collection took place according to the terms and conditions established by the parties in the agreement signed on 16 July 2014, and it is divided into five integrated batches of documents and works, for which the agreed purchase price is 1,200,000.00 euros, and the payment of the same shall be made in instalments on the dates listed below:
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Batch I. 16/07/2014: 240,000.00 euros. Batch II. 15/09/2015: 240,000.00 euros. Batch III. 15/09/2016: 240,000.00 euros. Batch IV. 15/09/2017: 240,000.00 euros. Batch V. 15/09/2018: 240,000.00 euros.
On payment of the second amount within the specified period, the FOUNDATION will become owner of the works and documents in batch I and batch II. The FOUNDATION will take ownership of the remaining batches on payment of the outstanding amounts according to the schedule set out in the previous paragraph. This schedule does not include interest payments on the part of the purchaser.
- In addition, in 2015, eight photographs of Pablo Picasso were acquired for a total value
of 3,740 euros.
7. FINANCIAL ASSETS
7.1 Classification of financial assets
All financial assets listed on the balance sheet have been valued at amortised cost, which is equivalent to the nominal value of the amounts receivable.
The breakdown of the financial assets is as follows:
SHORT-TERM FINANCIAL ASSETS
2015 2014
Categories
Financial assets at amortised cost
- Users, sponsors and debtors for activities and other accounts receivable
433,812.17
507,393.29
- Short-term investments 33.73 1,000.00
433,845.90 508,393.29
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7.2 Users, sponsors and debtors for activities and other accounts receivable
The breakdown of items listed under the heading “Users, sponsors and debtors for activities and other receivables” is as follows:
2015 2014
Financial assets at amortised cost
- Users and receivables for sales and services rendered 71,011.31 40,762.52 - Receivables, group institutions (note 14.1) 200,718.72 341,792.98 - Other debtors 162,082.14 106,400.42 - Staff (advance payments) - 18,437.37
Public administrations (note 11.2)
-
4,531.42
433,812.17 511,924.71
There was no impairment in the value of the FOUNDATION’s financial assets during the 2015 and 2014 financial years.
The following summarised changes took place under the heading “Users, sponsors and debtors for activities and other receivables”:
2015 financial year:
Balances 1.1.2015
Increases
Reductions
Balances
31.12.2015
Users and receivables for sales and services rendered 40,762.52 289,519.25 (-) 259,270.46 71,011.31
Receivables from group and associated companies and other parties
341,792.98 782,206.02 (-) 923,280.28 200,718.72
Other debtors 106,400.42 1,142,956.65 (-) 1,087,274.93 162,082.14 Staff 18,437.37 - (-) 18,437.37 - Other credits with the public administration 4,531.42 - (-) 4,531.42 -
511,924.71 2,214,681.92 (-) 2,292,794.46 433,812.17
2014 financial year:
Balances 1.1.2014
Increases
Reductions
Balances
31.12.2014
Users and receivables for sales and services rendered - 6,575,351.94 (-) 6,534,589.42 40,762.52
Receivables from group and associated companies and other parties
- 1,111,299.60 (-) 769,506.62 341,792.98
Other debtors - 1,117,392.28 (-) 1,010,991.86 106,400.42 Staff - 18,437.37 - 18,437.37 Other credits with the public administration - 4,531.42 - 4,531.42
- 8,827,012.61 (-) 8,315,087.90 511,924.71
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8. FINANCIAL LIABILITIES
8.1 Categories of financial liabilities
All the financial liabilities listed on the liabilities side of the balance sheet are financial liabilities at an amortised cost equivalent to the nominal value of the amounts payable.
The breakdown of the financial liabilities is as follows:
SHORT-TERM FINANCIAL LIABILITIES
2015 2014
Categories
Financial liabilities at amortised cost
- Other financial liabilities 9,944.38 - - Sundry creditors 573,659.52 751,486.45 - Creditors, group and associated companies 111,869.21 182,081.64 - Staff 102,248.69 92,700.15
797,721.80 1.026,268.24
8.2 Creditors due to activities and other payables
The breakdown of the accounts included in this section is as follows:
2015 2014
Financial liabilities at amortised cost
- Sundry creditors 573,659.52 751,486.45
- Creditors, group and associated companies (note 14.1) 111,869.21 182,081.64 - Staff (bonus payment accruals) 102,248.69 92,700.15
Other debts with the public administrations (note 11.2) 85,808.34 112,260.65
873,585.76 1,138,528.89
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8.3 Information on the average supplier payment period, 3rd additional provision – “Duty to Information”, of Act 15/2010, of 5 July
2015 Days Average creditor payment period 25.30
Ratio of paid transactions 25.65
Ratio of transactions pending payment 8.09
Amount (euros)
Total payments made 5,810,307.12
Total payments pending 117,589.00
9. EQUITY
Endowment fund
The movements in the accounts under the heading of Equity during the 2014 and 2015 financial years are listed in the statement of changes in net equity (SCE).
The endowment fund consists of the financial contribution made by Barcelona City Council and the Fundació Barcelona Cultura as listed below:
The profit/(loss) generated by its realisation is applied to the foundation’s objectives.
Endowment fund
Barcelona City Council 20,000.00
Fundació Barcelona Cultura 10,000.00
30,000.00
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10. SUBSIDIES, DONATIONS AND BEQUESTS
10.1 Subsidies, donations and bequests
The movements under this liabilities heading on the balance sheet during the 2015 and 2014 financial years were as follows:
Capital subsidies
Other subsidies, donations and
bequests
Total
Start of activity - - -
Subsidies granted in the year 352,320.00 64,631,304.82 64,983,624.82 Transfers to the profit and loss statement - (-) 3,279.61 (-) 3,279.61
Balance at 31 December 2014 352,320.00 64,628,025.21 64,980,345.21
Subsidies granted in the year 31,510.53 - 31,510.53 Transfers to the profit and loss statement (-) 18,431.71 (-) 1,092,336.11 (-) 1,110,767.82 Other variations - (-) 0.44 (-) 0.44
Balance at 31 December 2015 365,398.82 63,535,688.66 63,901,087.48
a) Capital subsidies received are the contributions made by the Institut de Cultura de Barcelona, which are intended to finance the air-conditioning works in the museum.
b) Other subsidies, donations and bequests are real estate and furniture received and assigned to: - Barcelona City Council: buildings for a fair value of 64,620,511.84 euros.
- Institut de Cultura de Barcelona: technical installations, furniture and data
processing equipment for a fair value of 10,792.98 euros.
10.2 Operating subsidies
In the 2015 financial year the FOUNDATION received operating subsidies totalling 750,562.10 euros from the Institut de Cultura de Barcelona to finance its foundational activities (see note 15.1).
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In the 2014 financial year the FOUNDATION received operating subsidies totalling 750,000.00 euros from the Institut de Cultura de Barcelona to finance its foundational activities (see note 15.1).
11. TAX SITUATION 11.1 Taxation aspects
According to applicable legal provisions, payments of taxes and social security contributions cannot be considered final until they have been inspected by tax or employment authorities or the four-year statute of limitations has elapsed.
The FOUNDATION has all the major taxes and social security contributions applicable to it open for inspection for all relevant non-expired financial years.
No significant contingency sums are anticipated to arise from the review of the financial years open for inspection.
11.2 Details of balances with public administrations
The balances at 31 December 2015 and 2014 with the tax authorities for taxation items are as follows:
2015 2014 Description
Debit balances
Credit balances
Debit balances
Credit balances
Tax authorities
- VAT refundable - - 4,531.42 - - VAT payable - 14,967,51 - - - Income tax payable for withholdings - 36,595,90 - 82,057.00
Social security bodies
- Social security payable, December instalments - 34,244,93 - 30,203.65
85,808,34 4,531.42 112,260.65
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11.3 Tax on profit
The FOUNDATION is eligible for the taxation benefits set out in Act 49/2002, of 23 December, on the tax system of non-profit organisations and tax incentives for sponsorship. Under this system, the economic operations of museums, libraries, archives and documentation centres and financial operations consisting of organising exhibitions, conferences, lectures, courses and seminars are exempt from tax on profit. Due to the nature of its activities, the FOUNDATION does not obtain income that is not exempt from tax on profit.
12. SHORT-TERM PROVISIONS / CONTINGENT LIABILITIES
The movements undergone by the provisions established by the FOUNDATION are detailed below:
Balance at 1 January 2015 -
Additions 66,398.40 Balance at 31 December 2015 66,398.40
The balance established at 31 December 2015 is intended to cover likely contingencies stemming from any claim lodged in relation to acknowledgment of rights.
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13. INCOME AND EXPENSES 13.1 Staff expenses
The breakdown of the staff expenses section is as follows:
2015 2014
Wages and salaries 1,298,327.26 1,075,154.48 Social security 332,310.38 272,072.41 Other SS expenses 6,574.05 6,648.48
1,637.211.69 1,353,875.37
13.2 Income from activities
The breakdown of the items in this section is as follows:
2015 2014
Sales 29,811.16 20,714.08
Services rendered
- Museum tickets - Audioguide and radioguide services - Admission to temporary exhibitions - Other services rendered ICUB contribution
6,285,051.59 991,302.90 112,250.50 141,013.48
750,562.10
5,474,744.51 797,876.50 162,910.40
92,090.34
750,000.00
8,309,991.73 7,298,335.83
13.3 Other income from activities
Other income from activities obtained during the 2015 and 2014 financial years is listed as follows:
2015 2014
Store fee 708,460.76 650,000.04 Industrial and intellectual property rights assigned 15,444.99 24,080.00 Temporary assignment of spaces 11,500.00 1,326.44
735,405.75 675,406.48
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13.4 Other operating expenses
The breakdown of the items in this section is as follows:
2015 2014
External services - Leases and fees 68,643.32 67,845.21 - Repairs and upkeep 385,793.41 416,030.48 - Independent professional services 446,770.74 634,343.74 - Transport 283,926.47 525,740.85 - Insurance premiums 160,254.48 61,785.53 - Bank services and similar 70,969.08 54,217.21 - Advertising, publicity and PR 111,717.64 94,159.71 - Suppliers 469,100.42 470,957.28 - Other services 3.990,443.27
5,987,618.83 3,887,605.13 6,212,685.14
Taxes 4,661.12 527.90 Negative adjustments to current VAT and investments - 23,310.57 Impairment reversal for credit for trading operations (-) 7,184.13 -
5,985,095.82 6,236,523.61
The amount listed under the heading “Other services” mainly includes expenses for security and surveillance services, public support services and the hire of audio guides.
14. APPLICATION OF ASSETS AND INCOME TO FOUNDATION PURPOSES
14.1 Assets and rights of the foundation endowment fund
The foundation’s endowment fund is entirely in the form of cash from the founding institutions. The FOUNDATION’s non-current assets are applied entirely to the FOUNDATION’s purposes.
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14.2 Assignment to the FOUNDATION’s purposes of the legally established percentage
In accordance with the provisions of article 333-2 of the third book of the Civil Code of Catalonia, approved by Act 4/2008, of 24 April, the FOUNDATION must allocate at least 70% of the revenues earned and other net annual income to fulfilling the foundation’s objectives. The table below shows the application of revenues and income to the foundation’s objectives:
Amount (in euros)
Percentage
Total income in the 2015 financial year
- Income according to the profit and loss statement 10,157,408.38
Minus:
- Capital donations and subsidies transferred to profit/(loss) (-) 1,110,767.82 - Financial income (-) 1,243.08 9,045,397.48 Capital donations and subsidies obtained
31,510.53
9,076,908.01 100%
Applications to objectives in the 2015 financial year
- Expenses according to the profit and loss statement 8,751,323.86
Minus:
- Allocations for amortisations (-) 1,128,294.91 - Financial expenses - - Losses due to alignment and others - 7,623,028.95 Investments in the financial year:
- Intangible assets - - Tangible fixed assets 144,301.31 - Cultural assets 243,740.00 388,041.31
8,011,070.26
88.26 %
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15. RELATED PARTY TRANSACTIONS
15.1 Balances and transactions with related parties
a) The balances at the end of the financial year with related parties are as follows: BALANCES
2015 2014
Debit balances: Institut de Cultura de Barcelona (capital subsidies)
200,718.72
352,320.00
Institut de Cultura de Barcelona (services rendered) - (-) 10,527.02
200,718.72 341,792.98
Credit balances:
Institut de Cultura de Barcelona (service subsidies)
111,765.75
181,978.18
Institut Municipal de Parcs i Jardins (services rendered) 103.46 103.46
111,869.21 182,081.64
b) Transactions during the financial year with related parties were as follows:
TRANSACTIONS 2015 2014
Income:
Sales and services rendered
- Barcelona City Council - 688.30
- Institut de Cultura de Barcelona 133.39 2,201.50
- Institut de Cultura de Barcelona (income reimbursement) - (-) 10,527.02
133.39 (-) 7,657.22
Operating subsidy for activities
- Institut de Cultura de Barcelona 750,562.10 750,000.00
Capital subsidy
- Institut de Cultura de Barcelona 31,510.53 352,320.00
782,206.02 1,094,662.78
Expenses:
Services rendered - Institut de Cultura de Barcelona 389,461.15 386,451.28
- Institut Municipal d’Informàtica 12,669.46 11,132.04
- Institut Municipal de Parcs i Jardins 2,424.57 1,241.52
404,555.18 398,824.84
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The services rendered by the Institut de Cultura de Barcelona were basically re-invoicing of electricity consumption expenses.
15.2 Remuneration of members of the Board of Trustees and the Directorate-General
As stipulated in article 12 of its Articles of Association, the trustees of the FOUNDATION receive no payment for holding their office, and received no remuneration during the 2015 (and indeed 2014) financial year, were not granted any loans or advance payments, and assumed no guarantee obligations on their own account, nor any obligations as regards on pensions and life insurance.
16. OTHER INFORMATION
16.1 Average staff
The average number of employees during the financial year, and the staff situation at 31 December, is detailed below: 2015 financial year:
Average staff 2015 Situation at 31/12/2015
Category Men Women Total Men Women Total
Department director - 1 1 - 1 1 Director 1 - 1 1 - 1 Manager - 1 1 - 1 1 Project manager 1 - 1 1 - 1 Support 1 8 9 2 8 10 Technician 1 17 18 1 17 18
Total 4 27 31 5 27 32
2014 financial year:
Average staff 2014 Situation at 31/12/2014
Category Men Women Total Men Women Total
Department director - 1 1 - 1 1 Director 1 . 1 1 - 1 Manager - 1 1 - 1 1 Project manager 1 - 1 1 - 1 Support 3 5.5 8.5 2 7 9 Technician 2 12 14 2 14 16
Total 7 19.5 26.5 6 23 29
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16.2 The environment
The FOUNDATION has no responsibilities, expenses, assets, provisions or contingencies of an environmental nature that could be significant in relation to the FOUNDATION’s equity, financial situation and profit/(loss). For this reason, this report contains no section in the abridged annual accounts with information on environmental issues.
16.3 Auditing costs
The fees charged by the auditing firm during the 2015 financial year for auditing services and other costs incurred in the provision of services came to 5,900 euros (the fees in 2014 also came to 5,900 euros).
16.4 The following changes to the composition of the Board of Trustees took place during the 2015 financial year:
2015 terminations: - Xavier Trias i Vidal de Llobatera - Jaume Ciurana i Llevadot - Marta Clari i Padrós - Josep Lluís Alay i Rodríguez - Llucià Homs i Capdevila - Joan Anton Sánchez de Juan - Ramon Massaguer Meléndez
2015 new hires:
- Ada Colau Ballano (Chair). - Jaume Asens Llodrà (First Vice Chair) - Berta Sureda Berna - Jordi Ayala Roqueta - Isabel Balliu Badia - Carles Sala Marzal - Ferrán Barenblit Scheinin
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17. EVENTS OCCURRING AFTER THE YEAR END
No events took place after the end of the financial year and prior to the preparation of the accounts which may entail corrections in the accounting records or the recording of contingent assets and liabilities which are not already included in the annual accounts or which would have needed to be included in this report.
These annual accounts were prepared and approved by the FOUNDATION’s Board of Trustees on 22 June 2016, within the deadline set out in article 333-9 of Act 4/2008, of 24 April, on the third book of the Civil Code of Catalonia.
Approved
The Chair,
Ada Colau Ballano
The Secretary,
Jordi Cases i Capdevila
