Transparency International Latvia 2010 Annual Report (Audited)

8/4/2019 Transparency International Latvia 2010 Annual Report (Audited)

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AssociationTransparency International - Latvia

2010 ANNUAL REPORT


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Transparency International Latvia 2010 Annual Report

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TABLE OF CONTENTS

Basic information 3

Management Report 4

Profit & Loss Statement 6

Balance Sheet 7

Contribution Statement 8

Statement on administrative expenses made from generaldonations

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Annex 10

Auditors Opinion 20


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Basic information

Name of Association Transparency International Latvia (In LatvianSabiedr ba par atklt bu Delna)

Registration number, place and date

Status of a public benefit organization

40008037054 in the Commercial RegisterRiga, 20th June 2005

Decision No.506 of the Ministry of FinanceDated 21st October 2005

Address 49-4 Aleksandraaka Street,Riga LV-1011,Latvia

Board and Management Laura Mielsone Executive Director until05/11/2010.Kristaps Petermanis Executive Director from08/11/2010.

Lolitaigne Chairperson of the Council until30/03/10.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 until26/04/10.Ilga Brzkalna Member of the Council until 06/12/10.Aivars Endzi Member of the Council from21/05/09.Pauls Raudseps Member of the Council from31/03/08.Jnis trens Member of the Council from 31/03/08.

Year of account 1st January 31st December 2010

Name and address of the auditor SIA Potapovia un AndersoneBusiness Company of Certified Auditors License No.9913 Slokas StreetRiga, LV-1048Latvia

Responsible Certified Auditor:Krist ne PotapoviaCertificate No. 99


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Management Report

1. Full name of the organization: Transparency International Latvia (In Latvian - Sabiedr ba paratklt bu Delna)

2. Organizations registration number: 40008037054, date: 21.09.1998.

3. Registered office of the organization: 49-4 aka Street, Riga, LV 1011, Latvia

4. 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 soleMember of the Board) Kristaps Petermanis, entered the office on 08/11/2010.

5. Applied methods for the implementation of the organizations objectives and tasks in the year ofaccount 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 ademocratic society by advancing information transparency and prevention of corruption, the employeesof Transparency International Latvia also in 2010 were engaged in research work, i.e., documentanalysis, interviews, media monitoring; provided consultations to the public and municipal officials;performed educational and informational work, i.e., hosting workshops, lectures, giving comments tomass communication media, preparing publications, raising public awareness on a regular basis, as wellas publishing information on the website www.delna.lv.

6. The most significant achievements of the organization in the year of account and thedevelopment outlooks.

The organization in 2010 continued to actively pursue its mission formation of an open, fair anddemocratic society free from corruption in politics, business and mutual relationships. The organizationsactivity can be divided intoad hoc or contingency and planned project activities. Delna activelyresponded to the events in politics and economics, if such events were related to good administration orcorruption prevention issues, performing functions of a public interest watchdog. TheAd hoc ActivityReport is available on the website section Information for Media,http://www.delna.lv/lat/informacija-medijiem/ .1

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 MPswww.kandidatiuzdelnas.lv prior to the election of the 10th Saeima (Parliament of Latvia) drew attention ofthe electorate to the reputation of the politicians in the context of corruption by summarizing the publiclyavailable information on them for previous four years and giving a risk assessment of a candidate. In theopinion of Delna the project made a significant contribution to the qualitative and quantitative change ofthe Saeimas composition if usually after every election 1/3 of deputies of the 100 deputies were not re-elected, then after election of the 10th Saeima 2/3 of deputies were changed.

2. Public opinion surveys show that youths is one of the groups of society whose tolerance to corruption isthe greatest. This undermines the efforts in Latvia to get rid of corruption gradually, because the nextgeneration might not introduce changes into the political culture. In order to change this, Delnaimplemented a project High school students civic participation in democracy youth educationprogram, which with informative, educative and interactive techniques draws the attention of youngpeople to the negative aspects of corruption and contributes to their awareness of the seriousness of theproblem, and, in the long-term, seeks to the change their behaviour.

3. While implementing a project Protection of public interests and provision of legal aid in areas ofconstruction and spatial planning the organization tried to ensure that in cases of collision of businessand public interests the latter would prevail more often. Since the groups of society, whose interests andrights 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.

1 Technical comment: due to launch of a new website the up-to-date link ishttp://delna.lv/raksti/category/preses-relizes/.


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Management Report (continuation)

4. In 2010 Delna continued to perform its obligations within the framework of the Integrity Pact with theMinistry of Culture, thanks to the support of the project Construction of the Latvian National Library in atransparent, clear to the public and fair manner. The Integrity Pact engages Delna in the monitoring ofthe so called Castle of Light project to restrict corruption, promote good governance and increase publicconfidence in it.

5. In 2010 Delna also completed a project Monitoring of activities of the Corruption Prevention andCombating Bureau. The objective of the project laid in the strengthening of corruption prevention andreducing costs of corruption with the help of public monitoring, as well as strengthening of independenceof the Corruption Prevention and Combating Bureau.

6. Delna also developed a publication "Step by step to more accountable politics in Saeima: Handbook forthe Voters and the Parliamentarians". It was publicly presented on the 9th of December, the InternationalAnti-Corruption Day in Saeima with the participation of the Speaker S.boltia.

For 2011 Delna plans the following main activities:

1. In 2011 (and in 2012) Delna will implement the National Integrity System evaluation project, that issimultaneously also implemented in at least 22 other European Union Member States, involving analysisof the legal and institutional framework for corruption prevention. The objective of the project is toproduce the situation assessment in 2011 in order that in 2012 evidence-based advocacy work could becarried out.

2. 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 theyouths awareness of the negative effect of corruption and involve them into mitigation of such effect.

3. 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 onemore field.

4. Delna will continue to implement the Integrity Pact with the Ministry of Culture to monitor construction ofthe new National Library building.

5. Going forward with monitoring of politics during the pre-election period, Delna will develop a Saeimamonitoring portal www.deputatiuzdelnas.lv. Within the framework of the project Delna will follow the workof 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 willbe 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 49aka Street, Riga. Cadastral number 01009043782,an apartment property 4, the objective of real estate procurement to establish an office. The property isencumbered 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 oftheir salary.

The average number of employees working under employment contracts in 2010 was: 9. The salarygrand total: LVL 76,385.64. _____________________________ Kristaps PetermanisDirector

__ March 2011


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Profit & Loss Statement for the financial year ended on 31 st December 2010

Annex 2010 2009Ls Ls

I. Membership fees, admission fee andother annual payments 1 375 336

II. Received donations and contributions 2 9 068 14 522

V. Operating income 3 3 906 4 336

VI. Other earnings 4 193 368 157 693

VII. Earnings Total 206 717 176 887

VIII. Expenses

2. Material costs (2 828) (2 442)

3. Salary (77 244) (88 923)

4. Social insurance contributions (18 608) (21 451)5. Fixed assets and Intangible assets

depreciation and retirement (7 839) (9 799)

6. Other expenses 5 (75 890) (45 991)

IX. Taxes 6 (490) (404)

X. Expenses Total (182 899) (169 010)

XI. Difference between earnings andexpenses 23 818 7 877

Annex from pages 10 to 20 is an integral part of this Financial Statement.

_____________________________ Kristaps Petermanis

Director __ March 2011


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Balance Sheet as of 31 December 2010AAnnnneexx 31.12.2010. 31.12.2009.

Ls LsAssetsLong-term investments

II. Fixed assets:1. Real estate 78 731 80 8032. Other fixed assets 10 797 14 750

Fixed Assets Total: 7 89 528 95 553

Current AssetsI. Stocks:

2. Goods 6 708 3 457Stocks Total: 6 708 3 457

II. Accounts ReceivableAccounts due from buyers and customers 853 97Other accounts receivable 8 4 161 3 632Deferred expenditures 9 942 693Accounts Receivable Total 5 956 4 422

IV. Cash 10 27 980 37 668

Assets Grand Total 130 172 141 100

LiabilitiesI. Funds

1. Capital fund (44 622) (52 499)3. Reserve fund 23 818 7 877

Funds Total: 11 (20 804) (44 622)

II. Long-term liabilities:1. Long-term loans from credit institutions 12 98 527 100 6872. Other loans 13 11 045 10 958

Long-term liabilities total: 109 572 111 645

III. Short-term liabilities:1. Short-term loans from credit institutions 12 3 605 5 554Other loans 13 1 005 13 634

2. Tax and state social insurancecontributions 14 3 252 4 6963. Other liabilities 15 33 542 50 193

Short-term liabilities total: 41404 74 077

Liabilities Grand Total 130 172 141 100





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Donations Statement

2010 2009AAnnnneexx Ls Ls

I. Opening balance 40 2 641

Donations and contributions receivedduring the year of account

1. For unlimited application (includinggeneral donations) 16 7 948 11 361

1.1. Latvian legal entities 1 016 8611.2. Foreign legal entities 273 3 5101.3. Private persons (residents) 5 177 6 1951.4. Private persons (non-residents) - -1.5. Anonymous contributors and donors 1 482 7952. For definite purposes (including,earmarked donations) 17 1 120 3 1612.1. Latvian legal entities - -2.2. Foreign legal entities - -2.3. Private persons (residents) 1 120 3 1612.4. Private persons (non-residents) - -

II. Grand total of donations and

contributions received during the year ofaccount 9 068 14 522

Disposition of donations and contributions1. For unlimited application (including

general donations) 18 6 105 11 4621.1. For objectives and tasks provided forby Articles of Association 4 601 9 7301.1.1. For public benefit activity 4 601 9 7301.2. For administrative costs 1 504 1 7322. For definite purposes (including,earmarked donations) 19 - 5 6612.1. For objectives and tasks provided forby Articles of Association - 5 6612.1.1. For public benefit activity - 2 6202.1.2. For other objectives and tasks - 3 041

III. Grand total of disposition of donationsand contributions 6 105 17 123

IV. Closing balance 3 003 40


_____________________________ Kristaps PetermanisDirector __ March 2011


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Statement on administrative expenses made from general donations

2010 2009AAnnnneexx Ls Ls

1. General donations received during theyear of account 7 948 11 361

2. Disposition of donations foradministrative costs 1 504 1 732





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AnnexAccounting Policy

(a) General Principles

The Association prepared the Annual Report in accordance with the Regulations No.808 of theCabinet of Ministers of the Republic of Latvia dated 3 October 2006 Regulations on annual reportsof 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 paymentsReflect 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 theofficial exchange rate of the Bank of Latvia as at the balance sheet date. Currency exchange ratesprescribed by the Bank of Latvia as at 31st December:

31.12.2010. 31.12.2009.USD 0.535 0.489

EUR 0.702804 0.702804(d) Fixed Assets Depreciated book value of fixed assets is calculated by deducting from the initial cost theaccumulated depreciation, also attrition of intangible assets and fixed assets depreciation amountsaccounted during the year of account and during previous years. Amortization of intangible assetsand depreciation of fixed assets are calculated applying the rates as follow:

%Real estate 2,5Other fixed assets 20 - 35

(e) StocksStocks are reflected at their purchase price. If necessary the value of outdated, low turnover ordamaged stock subjects to writing off.

(f) Accounts receivableAccounts receivable in the balance sheet are reflected at net value, deducting from the initial valuethe special reserves for doubtful and bad debts. Special reserves for doubtful and bad debts areformed in cases, when the management believes that recovery of specially marked off debts isdoubtful. Based on the lapse days of accounts due from buyers and customers, general reservesfor bad and doubtful debts are formed additionally to the special reserves.

(g) TaxesThe grand total of liabilities of the Association to public budget and local budgets for payable taxesand dues, as well as for the mandatory state social insurance contributions.


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Annex (continuation)Accounting policy (continuation)

(h) LoansInitially the loans are recognized in the amount of the received monetary items net of costsassociated 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 ofreceived loan net of costs associated with the loan receipt and the loan repayment value is beinggradually included into profit & loss calculation during the loan period.

(i) Donations and contributions donations and contributions intended for procurement ofspecific 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 equivalentsFor the purposes of cash flow statement cash and cash equivalents are composed of petty cash,balance on current accounts.


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Annex (continuation)

(1) Membership fees, admission fee and other annual payments

2010 2009Ls Ls

Membership fees 375 336

(2) Received donations and contributions

Donations for unlimited application 7 948 11 357Donations for limited application 1 120 3 165

9 068 14 522

(3) Operating income

Income from letting of premises 1 320 153Income from consultations 2 586 4 183

3 906 4 336

(4) Other earnings

Earnings from projects 192 964 157 585Other earnings 404 108

193 368 157 693

(5) Other expenses

Communication expenses 10 787 5 990Office expenses 3 878 2 533Royalties and similar expenses 23 562 9 716Interest expenses 5 025 5 042Office refurbishment costs - 3 050Office costs 725 234Professional service costs 4 376 5 187Auditing costs * 968 1 230Project implementation costs 10 162 2 409Rent of premises 8 255 3 720Business travel expenses - 1 363Transportation costs 1 715 1 321Loss from fluctuation in foreign currency exchange rate 750 1 179Representation expenses 1 393 1 113Office equipment, machinery rental 1 500 678Postage expenses 1 419 642Bank charges 821 390Other costs 554 194

75 890 45 991

* During the year of account the Company did not receive other services from the auditors.

(6) Taxes

Real estate tax on land 490 404


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(7) Fixed Assets

Real estate Other fixed assetsand stock

Total

Ls Ls Ls

Initial cost31/12/2009 82 875 38 617 121 492Procured - 1 814 1 814Retired - (804) (804)31/12/2010 82 875 39 627 122 502

Depreciation31/12/2009 2 072 23 867 25 939Calculated for 2010 2 072 5 767 7 839Retired - (804) (804)31/12/2010 4 144 28 830 32 974

Depreciated book value31/12/2010 78 731 10 797 89 528Depreciated book value31/12/2009 80 803 14 750 95 553

(8) Other accounts receivable31.12.2010. 31.12.2009.

Ls Ls

Overpayment of Real Estate Tax (Refer to Annex 14) 1 101 1 080Security Deposit 11 11Advance payments for services 1 967 1 137Accrued earnings - 1 306Other accounts receivable 1 082 98

4 161 3 632

(9) Deferred expenses

Insurance 85 119Other deferred expenses 857 574

942 693

(10) Cash

Cash in bank 27 980 37 668

(11) Funds

As at 31 December 2008 (52 587)Adjustment of the year 2008 88Budget surplus in the year 2009 7 877As at 31 December 2009 (44 622)Budget surplus in the year 2010 23 818As at 31 December 2010 (20 804)


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(12) Loans from credit institutions31.12.2010. 31.12.2009.

Ls Ls

Loan from AS Swedbank long-term 98 527 100 687Loan from AS Swedbank short-term 3 605 5 554Loans from credit institutions total 102 132 106 241

On the 24th of May 2004 the Association received a loan to the tune of USD 113,134. In 2006 theloan was translated into EUR currency and the loan amount was increased to EUR 160,879. Theloan monthly payments of EUR 1,000.00 consist of the loan principal and interest. Interest ispayable 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 49Aleksandraaka Street flat 4 in favour of AS Swedbank. Contract of Pledge Np. 04-032638-IN wasentered into on 24 May 2004.

(13) Other loans31.12.2010. 31.12.2009.

Ls Ls

Loans from private persons long-term 2 000 4 000Loan from SIA Akots-I long-term 9 045 6 958Other loans total long-term 11 045 10 958

Loan from SIA Akots-I short-term 1 005 3 092Loan from Transparency International Secretariat - 10 542Other loans total short-term 1 005 13 634

Other loans total 12 050 24 592

On the 17th of April 2007 the Association received a loan from SIA Akots-I in the amount of EUR15,000. 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 TransparencyInternational Secretariat in the amount of EUR 15,000. The loan was repaid in full in 2010.

(14) Taxes and state social insurance contributions

Real EstateTax

Socialinsurance

contributions

Payroll Tax NaturalResources

Tax

Total

Ls Ls Ls Ls Ls

Debt as at 31/12/2009 - 2 495 2 196 5 4 696(Overpayment) 31/12/2009 (1 080) - - - (1 080)

Calculated for 2010 490 25 971 22 527 26 49 014Paid in 2010 (490) (26 798) (23 139) (52) (50 479)

Debt as at 31/12/2010 - 1 668 1 584 - 3 252(Overpayment) 31/12/2010 (1 080) - - (21) (1 101)


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(15) Other accounts payable

31.12.2010. 31.12.2009.Ls Ls

Payments to personnel 3 443 5 099Deferred earnings for projects 25 194 38 020Accrued liabilities 915 3 855Settlement of accounts with suppliers 3 990 3 219

33 542 50 193

(16) Received donations for unlimited application

Registrationnumber/

personal IDcode 2010 2009

Ls Ls

PBLA Mission in Latvia 100409L13916V 514 -Semicom Ltd 40003729305 2 -Intentum Ltd 40003885587 - 200Arriva Ltd 40003331749 - 500Association ELJA 50 40008090426 500 161Legal entities incorporated in theRepublic of Latvia 1 016 861

Sydney Latvian Society Ltd. 167 -Corporation Daugaviete Sidney Group 106 -WIRTSCHAFTSGILDE E.V. Z.HD. HR. H.-D. LIEBRICH 091027L04160V - 105OTHR/DC Drivers License GeorgeRamonas 090317L02601V - 1 360Daugavas Vanagi Mission in England 4008004689 - 2 045Foreign legal entities 273 3 510

Guntis Brzi 200938-12612 250 -Inese Voika 050770-11801 44 -Aivars Endzi 081240-13054 100 -Ilga Anita Brzkalna 061265-12616 88 -Gints P piis 170278-11630 20 -Madara Fridrihsone 210275-10725 10 -Inita Vecbatika 030964-11924 100 -Jnis Bernts 150875-10806 260 -Aelita v tia 040473-12254 1 000 -


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Annex (continuation)Received donations for unlimited application (continuation)

Registrationnumber/


Ls Ls

Juris Sils 280250-12601 500 -Valts Kalni 210174-10309 75 -Vita Anda Trauda 190562-11801 50 -Jnis trens 110438-13006 1 000 -Kaspars Roga 080984-10717 - 257Anita Astr da Apele 240935-12618 45 20Ilze Sakars - 63Rasma Krklia 070646-13554 100 531Kristins Mielsons 031273-13105 - 100Krlis Rokpelis 210584-11367 10 15irts Jnis Zgners 150450-12606 - 50Sandra Priede 161171-11801 - 50Solvita Olsena 181170-11076 - 20Ieva Marija Laukere 151040-13562 - 100

Brigita Muzikante 120840-13018 - 150Ilze Graudia 090671-12009 - 30Zinta Jansone 310771-12601 - 50Andrejs Vasi jevs 170867-12376 - 900Zinta Jansone 310771-12601 - 50Mrcis Gobi 220671-11811 500 300Anna Z gure - 70Anna Muhka 041056-14606 - 100Ilze Gulna 090143-12605 - 50Mra Apele-Blumins - 141Juris Imants Baltputnis 071049-11813 - 20Pauls Raudseps 251263-13063 1 000 1 000Arvils Aeradens 301262-13106 - 500Aivars Ivars Juris Sinka 220260-13000 25 45Jnis Andrievs Eiche 100534-12607 - 50Rauls Ivars Apelis 180733-12618 - 20Pauls Juris Cl tis 090571-13569 - 500Pteris Trmanis 271042-12615 - 200irts Jnis Zgners 150450-12606 - 80Dons Kristmas 170169-12604 - 703Sab ne Dagmra Paul na Brece 280558-11818 - 20Krlis Rokpelis 210584-11367 - 10Private persons (residents) 5 177 6 195

Anonymous (unknown) contributors anddonors 1 482 795

Received donations for unlimitedapplication total 7 947 11 361


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Annex (continuation)Received donations for unlimited application (continuation)

(17) Earmarked donations

Registrationnumber/


Ls LsVote for a wise public campaign Lolitaigne 180873-10015 - 1 000Ints Sili Mintauts 250342-13022 - 1 000Aivars Endzi 081240-13054 - 100Ilga Anita Brzkalna 061265-12616 - 100Nils Students 220368-11815 - 841

- 3 041Riga City Council Anti-Corruption Monitoring Program Ilze Plaude 300764-10100 - 10Anda Maruta ilde 091249-13559 - 50Uldis Strautkalns 161169-10716 - 10Signe Rotberga 240164-11573 - 50

Reinis Brzi 010182-11004 - -- 120

Parliament Transparency and Fairness Monitoring Program -Kar na Janova 111079-12709 1 000 -Aija Avotia 111183-11968 20 -Krijnis Zari 161280-12913 100 -

1 120 -

Private persons (residents) 1 120 3 161


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(18) Disposition of donations for unlimited application

2010 2009Ls Ls

Parliament Transparency and Fairness Monitoring Program Hand-out duplication costs 49 -Fixed assets depreciation 891 -

940 -

KNAB Activity Monitoring Project Salary of the political analyst, tax inclusive - 272Development of Website Section - 272Translation - 108Fixed assets depreciation - 2 181

- 2 833

Politics Monitoring and Interest Protection Program Business travel expenses - 280Corruption index presentation event - 30Meeting with reporters 36 40Hand-outs 64 -Transportation costs 50 -Communication expenses - 68Website maintenance costs - 708Fixed assets depreciation 2 386 4 816

2 536 5 942

Legal Support Program for Residents in cases of corruption Customer service costs 14 -Document forwarding expenses 1 -Transportation costs 40 -Fixed assets depreciation 1 070 -

1 125 -

Riga City Council Transparency Promotion Program Salary of the political analyst, tax inclusive - 471Fixed assets depreciation - 484

- 955

For public benefit activities total 4 601 9 730

Administrative costs Accounting costs, tax inclusive - 998Salary of the administrative director, including all taxes - 60Utilities expenses 3 327Office costs 26 189Workshop, LAPAS members cash outlay 90Tax on land 68State tax 20 -Accounting Software improvements 86 -Workshop, LAPAS members cash outlay 50 -Fixed assets depreciation 1 319 -

1 504 1 732

(19) Disposition of donations for unlimitedapplication total

6 105 11 462


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Annex (continuation)Disposition of donations and contributions for certain purposes (continuation)

2010 2009Ls Ls

Youth education program Remuneration for the project task group, tax inclusive - 1 058Business travel expenses, Transportation costs - 319Communication expenses - 373Workshop costs - 750

- 2 500Riga City Council Transparency Promotion Program Salary of the political analyst, tax inclusive - 120

- 120

For public benefit activities total - 2 620

Vote for a wise public campaign - 3 041For other purposes and tasks - 3 041

Disposition of donations and contributions for certainpurposes total - 5 661

Documents

Transparency International Latvia 2010 Annual Report (Audited)