Kofi Annan Business Schools Foundation The Hague. Annual financial report 2012

Transcription

1 The Hague Annual financial report 2012

2 The Hague Annual financial report 2012 TABLE OF CONTENTS Page 1. Report of the board 1.1 General 3 2. Financial statements 2.1 Balance sheet as of 31 December Statement of income and expenses Cash flow statement Disclosure to the annual financial report Disclosure to the balance sheet Disclosure to the statement of income and expenses Other information 3.1 Auditors' report Appropriation of result for the financial year Proposed appropriation of result for the financial year

3 1. REPORT OF THE BOARD - 2 -

4 1.1 General Establishment In accordance with the certificate d.d. 21 June 2007 Kofi Annan Business Schools Foundation was established by called date. The company has been registered with the chamber of commerce at The Hague under file number Objects The objects of Kofi Annan Business Schools Foundation are defined in article 2 of the articles of association as follows: To contribute to the sustainable improvement of livelihoods among poor communities in less-developed countries. It will do so by establishing global knowledge-based partnerships for development focused on local economic development. In particular the Foundation aims to: 1. Provide scholarship and tailor-made Bachelor of Business Administration and Master of Business Administration programs to young and bright students and upcoming professionals from universities and local business support and policy development organizations, that do not belong to a privileged class and cannot pay for business education in the European Union or the United States of America, with the purpose of allowing them to establish and/or manage successfully smaller or larger enterprises in their country of origin. 2. Provide a state-of-the-art and tailor-made research database containing global knowledge on lessons learned and best-practices of supporting local Small and Medium-sized Enterprises (SME). 3. Establish sustainable linkages with and enhance outreach capacity of local partner universities in the South, with the purpose of building a network or regional knowledge institutes responsible for initiating, coordinating and supporting local Small and Medium-sized Enterprises (SME) development initiatives, among others through an elaborate alumni program that also stimulates alumni to contribute to the development of their local economy. Board The board of 2012 was formed by: Board: Prof. Dr. J.A. van Ginkel Drs. G.T.C. Bonhof- van der Waals Prof. Dr. Ph. Haspeslagh Prof. Dr. W. Plinke Dr. K. Muff Drs. M.J. van Breene Chair Secretary Treasurer Member of the Board Member of the Board Executive Secretary - 3 -

5 Report of the board The Kofi Annan Business Schools Foundation (KABS) was established in the year The Foundation is a joint initiative of Vlerick Business School (Belgium), Hogeschool Utrecht (HU) University of Applied Sciences Utrecht (The Netherlands), and Public Advice International Foundation (PA International Foundation). In June 2010 the European School of Management and Technology, Berlin (Germany), joined KABS, and in 2012 two other outstanding Business Schools decided to join. In April the Letter of Intent was signed between Business School Lausanne and KABS Foundation and in December between KABS and NOVA Lisbon. The revenues of the Foundation include donations and contributions of business partners, foundations and authorities, as well as of the partners in the KABS network themselves. After each academic year an evaluation has been made. Due to the major financial and economic crisis of 2008 it became more and more difficult to find funding from private and public partners. Consequently, in 2009 it was decided to give a more autonomous positioning to the Foundation with commitment of the three founding partners. Now, slowly there seems to be a prudent turning point to support the schools as the name KABS Foundation is becoming known more widely. Fellows In the academic year the business schools took engagements towards funding of 13 fellows. Hogeschool Utrecht At HU University of Applied Sciences Utrecht, 6 fellows received a full scholarship for the academic year The Gaia foundation provided for the cost of living of 3 students participating in the 1-year Double Degree program, the KF Hein Foundation provided for the cost of living of 2 students and Noaber Foundation provided for the cost of living for 1 student. In , 6 Fellows from Kenya (2x), Zambia (2x) and Indonesia (2x) started at HU University of Applied Sciences Utrecht and 5 passed their exams successfully in August In September 2012 five new fellows (2 from Kenya, 2 from Zambya and 1 from Nicaragua) started for a 1 year Double Degree Bachelor Program. Vlerick Business School In 2012 no KABS fellows graduated at Vlerick Business School. Two candidates had been identified for admission to the class of , but they were both unable to start. In September 2012 Vlerick Business School welcomed 1 new fellow from South Africa to start in the full time MBA program. Tuition is fully sponsored by the school and living expenses are covered through corporate donations. European School of Management and Technology At ESMT, 2 fellows successfully graduated in December In 2012 four more fellows started the Fulltime MBA program and graduated in December The tuition and living expenses are fully covered by the school thanks to the support of its corporate partners. Business School Lausanne At BSL a first fellow from Kenya was selected to start a MBA program in February 2013 and will receive fulltuition and partial living expenses, for which the school raised funds in 2012 from private donors for the scholarship at their 25th anniversary dinner celebration

6 Conclusion The year 2012 has shown an amount of 9,831 on the balance sheet. In 2009 changes were made in the structure of the KABS Foundation. The board has carefully continued the course taken. At the same time KABS has developed a careful strategy to strengthen future growth. KABS now has a lean but solid functioning base and infrastructure. The board of the Foundation has been actively engaged in the expansion of the network of business schools and the elaboration of the platform of knowledge. The groundwork was laid for the further expansion of participating business schools in Europe and in the Global South. In 2012 two new schools decided to join, as mentioned before. This further increases the outreach of the initiative by providing even more opportunities for talented students from developing areas. In October Dr. Katrin Muff of BSL was welcomed to participate in the Board meeting as a new member. In December NOVA Business School from Lisbon decided to join and they will attend the Board 26 April 2013 in Lausanne. We will continue with great enthusiasm to look for new partner universities, business schools and talented young people. Utmost attention was and will be given to the further development and strengthening of the programs of KABS in particular to make these fit even better the needs and capabilities of the fellows. In the year 2013 we are planning to organize a conference to bring together the partners of the North and South to share points of view, experience and lessons learned to continuously improve our programs and to become exceedingly successful in reaching our goals. Structure of the board As of January 1st, 2012 the governing structure of the Foundation was as follows. Board: Prof. Dr. J.A. van Ginkel Chair Drs. G.T.C. Bonhof - van der Waal Secretary Prof. Dr. Ph. Haspeslagh Treasurer Prof Dr. W. Plinke Member of the board Dr. K. Muff Member of the board (October 2012) Executive secretary: Drs. M.J. van Breene Honorary patrons: Dr. B. Bot Viscount Etienne Davignon Baron Paul De Keersmaeker Honorary advisor: R. Praaning Prawira Adiningrat - 5 -

7 2. FINANCIAL STATEMENTS - 6 -

8 2.1 Balance sheet as of 31 December 2012 (After result appropriation) 31 December December 2011 ASSETS Current assets Receivables [1] Debtors 17,500 - Overflowing assets 6,742 12,547 24,242 12,547 Liquid assets [2] 61,013 32,481 Total assets 85,255 45,

9 2.1 Balance sheet as of 31 December 2012 (After result appropriation) 31 December December 2011 LIABILITIES Equity [3] Other reserves 36,725 26,894 36,725 26,894 Current liabilities [4] Creditors 17,510 - Accrued liabilities 31,020 18,134 48,530 18,134 Total liabilities 85,255 45,

10 2.2 Statement of income and expenses Net turnover [5] 69, ,447 Purchase value of the turnover [6] 34,794 61,376 Gross operating result 35, ,071 Other personnel costs [7] 17,772 22,061 Selling costs [8] 538 2,286 Office costs [9] 1,839 3,171 General costs [10] 4,674 4,392 Total operating costs 24,823 31,910 Operating result 10, ,161 Interest and similar expenditure [11] Total financial income and expenditure Result 9, ,

11 2.3 Cash flow statement 2012 The cash flow statement has been prepared according to the indirect method Cash flow from operating activities Operating result 10, ,161 Change in working capital: Receivables -11,695 11,886 Current liabilities (except debts to credit institutions) 30, ,238 18,701-93,352 Cash flow from company operations 28,878 17,809 Interest and similar expenditure Cash flow from operating activities 28,532 17,627 Movements in cash 28,532 17,627 Notes to the cash resources Score by 1 January 32,481 14,854 Movements in cash 28,532 17,627 Score by 31 December 61,013 32,

12 2.4 Disclosure to the annual financial report GENERAL Activities The activities of Kofi Annan Business Schools Foundation, having its seat at The Hague primarily consist of: - include in hapter introduction to provide scholarships Master of Business Administration and tailor-made Bachelor of Business Administration programs; - to provide a state-of-the-art and tailor-made research database; The actual activities are performed at Hogeschool Utrecht (Netherlands), Vlerick Business School (Belgium), European School of Management and Technology (Germany) and Business School Lausanne (Switzerland). PRINCIPLES OF VALUATION OF ASSETS AND LIABILITIES General The annual account has been established according to the legal provisions of accounting standards 640. If not indicated otherwise, the assets and liabilities are appreciated against face value. Receivables Receivables are appreciated at face value, less any provision for doubtful accounts. These provisions are determined by individual assessment of the receivables. Cash Cash positions are appreciated against face value if not indicated otherwise and are at free disposal. These are directly claimable receivables on credit institutions and fund resources. Equity Reserves The reserves are the accumulated operation results from start till Current liabilities The current liabilities concern the liabilities with a duration shorter than one year. These liabilities are appreciated against face value, if not indicated oterwise. PRINCIPLES FOR THE DETERMINATION OF THE RESULT General The result is stipulated as the difference between the revenues of supplied services and the costs and other charges of the report year, taking into account the mentioned accounting standards. Profits have been recognised in the year in which services have been performed. Losses with origin in the report year have been taken into account for as these have been foreseeable. Revenues Revenues represents amounts invoiced for goods and services supplied during the financial year reported on, net of discounts

13 2.4 Disclosure to the annual financial report Costst of revenues The costs of revenues consist of the costs of delivered services, which are to be directly attributed to these deliveries. Operating costs Costs are attributed to the report year in which they have been incurred. Profits are accounted for in the year in which services have been performed. Losses are registered in the year in which these are foreseeable. Financial income and expenditure The financial income ad expenditure consist of interest income and expenditure (related to the report period) of floated and received loans. PRINCIPLES FOR THE PREPARATION OF THE CASH FLOW STATEMENT The cash flow statement is prepared according to the indirect method. The funds in the cash flow statement consist of cash at bank and in hand. Cash flows in foreign currency are converted at an estimated average rate. Taxes, received interest and similar income, as well as paid interest and similar expenditure, are included under the cash flow from operating activities

14 2.5 Disclosure to the balance sheet ASSETS CURRENT ASSETS Receivables [1] Debtors Debtors 17,500 - A provision for doubtfull accounts is not considered to be necessary Transitory Prepaid cost of revenues MBA/BBA Programme 6,667 6,667 Accrued income revenues MBA/BBA Programme - 5,833 Overflowing assets ,742 12, Cash [2] ABN Amro Bank N.V., currrent account ,481 ABN Amro Bank N.V., currrent account ,013-61,013 32,

15 2.5 Disclosure to the balance sheet LIABILITIES EQUITY [3] Reserves Balance as of 1 January 26,894-84,085 Result for the year 9, ,979 Balance as of 31 December 36,725 26,894 CURRENT LIABILITIES [4] Creditors Creditors 17, Overflowing liabilities Received in advance costs of revenues MBA/BBA Programme 21,667 6,667 Accrued costs of revenues MBA/BBA Programme - 5,833 Auditor's costs 1,088 2,737 Administrative costs 1,573 1,487 Overflowing liability 6,692 1,410 31,020 18,134 Contingent liabilities Rent Thanks to the continuing situation that the Kofi Annan Business School Foundation is still situated as a (not paying) guest in the building of the Institute of Social Studies in The Hague, KABS does not have to pay any rent. ISS will only charge for facilities used s.a. copy costs, etc if necessary. Creditors The balance of the creditors includes a debt ad. 7,500 at the Hogeschool Utrecht. It is a total bill ad. 22,500 relating to the tuition of 3 Kabs fellows. These are fees for the school year , third part of the invoice is accounted as a liability at the balance sheet date and recognized as an expense in The remaining part is no debt at , the costs will be recognized in

16 2.6 Disclosure to the statement of income and expenses Revenues [5] BBA Programme 3 years - 28,709-28,709 Noaber Foundation 5,000 2,500 Gemeente Den Haag - 20,000 Gaia Foundation 14,167 18,333 Rabobank Foundation 5,000 8,500 Universitair Medisch Centrum Utrecht K.F. Hein Fonds Studie en Individuele Noden 10,000 3,333 Vlerick Business School 10,000 10,000 Hogeschool Utrecht 10,000 10,000 ESMT 10,000 10,000 Business School Lausanne 5,000 - PA International/ Asia and Europe - 93,072 69, ,738 Total revenues 69, ,447 Cost of turnover [6] MBA/ BBA Programme cost of living 34,794 32,667 BBA Programme 3 years - 28,709 34,794 61,376 Personnel costs [7] Temporary employees 17,772 22,061 Selling costs [8] Costs of representation - 72 Travel- and subsistence expenses 538 2, ,

17 2.6 Disclosure to the statement of income and expenses Office costs [9] Office equipment Internet costs Copy costs 1,684 2,751 Contributions and subscriptions ,839 3,171 General costs [10] Auditor s costs 2,904 2,975 Administrative costs 1, Translate costs ,674 4,392 Financial income and expenditure Interest expenditure and similar costs [11] Banking fees Signing of the annual financial report The Hague, 26 April 2013 Kofi Annan Business Schools Foundation Mr. Prof. Dr. Ph. Haspeslagh

18 3. OTHER INFORMATION

19 3. Other information 3.1 Auditors' report The auditors' report is included on the next page of this report. 3.2 Appropriation of result for the financial year 2011 The annual accounts for 2011 were adopted at the general meeting held on 27 April The general meeting determined the appropriation of the result in accordance with the motion tabled for that purpose. 3.3 Proposed appropriation of result for the financial year 2012 The board of directors proposes to the general meeting that the result for the 2012 financial year, amounting to 9831., should be transferred fully to the reserves. This proposal has been already incorporated in the annual report. Date report: 26 April