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Financial Report December 31,2016
coNT.ENTS Pgge
Management report
lndependent Auditors' Report
1-8 9-10
Statement of profit or loss and other comprehensive income
l1
Statement of financial position
t2
Statement of cash flows
13
Notes to the financial statements
t4-30
RT',GIONAL PRESS DEVELOPMENT INSTITUTE MANAGEMENT REPORT Management and the Supervisory Board present their report and audited financial statements of Regional Press Development Institute ("RPDI" or the "organization") for the year ended 31 December 2016.
Principal activities and nature of operations of the Organization
of the Organization, which are unchanged from last year, are fevelopment and enhancement of the free media profession in Ukraine.
The principal activities
In2A16, RPDI main areas of concern were as follows:
-
regular and demand-driven training and education for media professionals;
legal support to journalists and media primarily in areas of prepublication screening, defamation cases and access to information; regular support to investigative journalists; parlnership opportunities and the exchange of information and experience behveen media outlets of Ukraine and other countries through internships, study tours; maintenance of information resourses, such as media research and manuals, for access by media professionals ; promotion of transparency and facilitated access to information; improvement and promotion of unbiased media coverage of topics of significance.
In2016 RPDI worked with:
-
Young, inexperienced joumalists, who are mostly engaged in various investigations, from all over Ukraine; Experienced journalists, who mostly deal with various investigations, from all over Ukraine; Journalists who write about gender issues; Editors and producers of state and municipal media; Act iv ists; State officials: representatives ofcentral and regional authorities and courts; Regional and Kyiv lawyers working with the media and journalists at different levels.
Throughout20l6, RPDI has kept its position as a leader in training, developing and supporting networks of investigative reporters and one of the leaders in providing special trainings for journalists and media employees. All programs run by RPDI are designed to address journalists" immediate needs and fill in their professional gaps. As a paft of our efforts aimed at strengthening the capacity of municipal and state-owned media in the process of their destatization and with srpport of U-Media program, in 2016 RPDI has conducted two trainings for representatives of regional mass media:
-
a3-day training for managers of municipal newspapers (Managing the media company and how can a regional newspaper survive after resocialization);
a 3-day training for editors from the same municipal lnternet media
-
Editorial management
in
newspapers (Newspapers and
general and content management in
paaicu lar).
Editors and managers of regional municipal and communal media have learned about media incomes and expenditures, new revenue streams, human resource management, new gontent creation paradigms, and other media management issues.
REGIONAL PRESS DEVELOPMENT INSTITUTE MANAGEMENT REPORT Within the project with Polish Partner "Eastbook" RPDI developed and hosted trainings for 20 young expert journalists, bloggers, freelancers, activists who wlsh to continue their careers in informing local communities about social, economic, environmental and political reality. As a part qf education program, participants did a study visit to Warsaw, where they were able to meet Polish professionals, editors and joumalists.
ln 2016, within the scope of U-Media program, we introduced a new educational product fpecialized training on understanding 'fininciai reports of companies. Target audience experienced investigative journalists. In total we received close to f 00 applicatLns, which is a vivid indication that there is a strong demand for such knowledge and skilli, In late 2016, within the scope of our project on development of investigative journalism, in cooperation with Fundacja Towarzystwo Demokratychne Wschod, Polaid (eolish-Canadian
Democracy Support Program), RPDI also developed and hosted specialized profound trainings on criminal, procedural law, land legislation and state procurement. Also, wifhiin thi project, is iln 20I6 RPDI:
-
Arranged internships for 14 regional journalists in bigger rnedia outlets (Slidsvo.Info, 4th Vlada, NashiGroshi, Mykolayv CJi); Hosted contest for best investigations, with winners announced at 8tl, National Conference of Investigative Journalists; Hosted trainings for digitaljournalism and digital security ofjournalists.
As a part of Developing New Media Skills of lnvestigative Journalists project implemented by RPDI together with Czech NGo "ToL" with support of National Endowment foi Democracy, in 2016 the Organization:
-
Provided mentoring to project participants (a result of the project 6 investigations were published); Translated & published The curious Journarists' Guide to Data; Run 5-days advanced training on investigative journalism "Technology of Investigative Journalism". Target audience,r- journalists who already have baslc knowledgi and experience in investigative journalism and high motivation,
Besides trainings, internships, study visits and awards, activities to support investigative journalists in 2016 included hosting of 8tr' National Conference for Invesiigative Journilists, which gathered together about 170 journalists, who are constantly workin! in investigative journalism from l2 countries of the world. In 2016, the focus of the confJrence was crossborder cooperation in investigations, presented not only in international work teams but also in projects and initiatives that support transboundary investigative journalism. A separate track of the conference was devoted to digital technologie., op"n ,orrie, digital content verification, digital security, and more.
In 2015, RPDI joined N-vestigate project, initiated by German NGO
is a joint project by N-ost and four research networks from Armenia,-Georgia, Moldov a and Ukraine, which goal is to foster transnational and cross'border investigatilns. During 2016, N-ost. N-vestigate
RPDI has achieved following project results:
-
Six transborder investigations with the Ukrainian component were puhlished; Two lawsuits on access to information were initiated and won; Unique international communication and cooperation have been built, which will remain viable after the end of the project;
REGIONAI, PRESS DEVELOPMENT INSTITUTE MANAGEMENT REPORT
-
Journalists-participants have developed new skills for collecting, analyzing and reporting information (including digital security and visualization) and working in international teams. RPDI sees great potential in transboundary projects from several perspectives:
L
Cross-border investigations contribute to the fight against corruption and unfair bargaining in Ukraine, as they lead to circumstances unknown to society; 2. International cooperation (working in internationalteam,s, with international experts and mentors) provide Ukrainian journalists with unique opportunities for cooperation; 3. Participation in such projects also improves the skills ofjournalists. Having a strong team of its media lawyers and maintaining the regional network of lawyers all over Ukraine, RPDI renders a comprehensive legal support and media law education to journalists and media that helps journalists to stand for their rights more effectively, diminishes extemal pressures and self-censorship, and allows them producing more professional stories. Besides mentioned above pre-publication screenings, legal support includes oral and written consultations, compilation of procedural documents and information requests, assistance in court oases, including petitions to the European Court for Human Rights (ECHR), filing requests to the authorities following the results of investigations to ensure reaction of the power to revealed violations and legislation activity. Consultations cover wide variety of issues starting from gathering/publishing data to proper registration of media and status of freelance journalists. Court cases and procedural documents primarily relate to defamation lawsuits with substantial damage claims; appealing of denies in access to public infonnation; other violations ofjournalism rights including attacks, counteracting photo/video recording in public places, In 2016, we summarized results of provided legal assistance over five years of U-Media project (lnternews Network):
-
Total Total Total Total
number number number number
of legal consultations provided * 1 495; of pre-publication screenings done - 35 I ; of prepared procedural documents -382; of courts led bf RPDI legal team - 124.
Among recipients of RPDI legal help were media, journalists and NGOs. Media law education for journalists and mediaprofessionals in 2016 involved eight media law webinars, which allowed participants to receive training on media law and provided opportunity for journalists to address any of their concerns and questions as to media laws and legal trainings for investigative journalists on latest legal developments and mitigations of legal risks in their investigations. Since 2014 and throughout 2016, RPDI p'iovided continuous support to Slidstvo.lnfo team (Project: Strengthening investigative journalism in Ukraine). RPDI legal team significantly decreased legal risks. During 2016 within the scope of this project, RpDI:
-
hosted 2-day training on media law;
hosted I -day workshop on ethics for the Slidstvo.Info / Gromadske.TV was conducted; did pre-broadcast check of 108 reports of investigations by legal experts was carried out;
provided 13 investigative journalists with written legal advices; led 5 court cases that were against the journalists of Slidstvo.info; filed 2 post-publication claims.
REGIONAL PRESS DEVELOPMENT INSTITUTE MANAGEMENT REPORT The result of RPDI work:
-
For 81% (88 stories), RPDI lawyers have requested for parts of the IR content of additional supporting documents and evidence; 53% (57 stories) of parts of the IR content were corrected with a priority for broadcasting; It was suggested that 1 story not be broadcast after pre-publication analysis; 4 out of 5 cases against journalists were won in courl (l case is still in progress).
With the support of Czech Foreign Ministry and Council of Europe in 2016 and with collaboration of its Czech partner NGO Transitions, RPDI monitored 47 Ukrainian courts. Compared to the same reporting period of 2015, this year (2016) the level of information by l}oh, which can be considered as a very high growth result opinion RPDI, this was achieved due to the growing interest of the courts rate. In the of in increasing their own openness to the community, the coordinated work of the workers and the court apparatus, as well as due to the active role of the press services that respond more and more effectively to expert comments. openness of court websites increased
The project is sought to increase governmental transparency through better passive access to public information at governmental websites by media and public as well as foster state's commitment to e-governance development. The rating of authorities monitored is published annually.
In 2015, RPDI joined the project (and continued its implementation in 2016), which aim was to improve the transparency of government and fight corruption in Ukraine. As a part of the project, RPDI and its partners collected, checked and digitalized over 9000 declarations of government officials (in 2016). RPDI lawyers developed legal documents to explain the legal basis for public access to such declarations, submitted requests to the authorities/officials, who refused to provide declarations, filed relevant lawsuits and provided advice and other legal assistance to partners and journalists, who were doing investigations based on published declarations. RPDI efforts were aimed at setting standards for legal practice on complaints regarding failures to provide publie information. RPDI also had the opportunity to train journalists and civic activists working with the declarations to analyze the data indicated in the declarations, and to identify discrepancies between the declarations and open registers and the actual wealth. Ln2016, RPDI together with experts of TOM l4 team performed analysis of State Register of Rights to Real Estate with support of International Renaissance Foundation. The result of this work with list of identified weaknesses and recommendations on how to improve work of register.,
ln
2016, RPDI continued its cooperation wifh National Democratic Institute on project on the role of women in politics. The project aims to improve the balanced and objective media coverage of women leaders, making them more visible in the Ukrainian media, which is now traditionally dominated by men. A key direction of the project - the campaign "Ask a woman" is designed to help journalists to engage more women as experts and news sources. Within the scope of this project, RPDI launched and still running a campaign website against sexism in politics, niedia and everyday life - Povaha.org.ua. The aim of the project is to educate journalists on gender-sensitive, non-discriminatory journalism, thus improving media coverage of gender topics,
REGIONAL PRESS DEVELOPMENT INSTITUTE MANAGEMENT REPORT Taking into account the stated goal, RPDI has implemented the following tasks in 2016: Increased gender awareness among journalists and professionals, changed the attitude of media professionals on gender issues; stimulated a professional discussion of gender issues among journalists, NGo
and public opinion leaders;
Promoted gender-sensitive, non-discrim inatory coverage in ukrain i an Provided relevant training materials and resources to journalists.
In 2016, RPDI also hosted a number of trainings for gender-sensitive reporting with support US Embassy Media Development Fund.
of
Overall, since 2006, RPDI has successfully implemented more than 85 media supporting
projects financed by a diverse group of donors for more than USD 3.45 million.
RPDI is constantly expanding its competences and its donor network, which currently includes such international donors and organizations as: Intemews Network, National Endowment for Democracy (NED), International Renaissance Foundation (lRF), International Research & Exchanges Board (IREX), Media Development Fund (MDF) at the US Embassy, and Alliances for Quality Education (Community Connections Program), National Democratic Institute for International Relations (USA, funded by the Swedish government), Media Legal Defense lnitiative (UK), Institute for War and peace Reporting (IWPR, USA and LIK), Danish international project SCOOP (managed by FUJ and IMS, funded by Danish then Norwegian MFA), the German Embassy, Polish partner Common Europe Foundation (funded by International Solidarity Fund), Czech partner Transitions Online (funded by Czech Foreign Ministry), Swedish partner Fojo Media Institute (funded by Swedish Institute), Council of Europe, CEELI (Czech republic), German partner N-ost (funded by German Ministry of Foreign Affairs).
LIST OF PROJECTS IN PROGRESS
in
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cooperation with l4ternational Renaissance Foundation: Analysis and Monitoring State Register of Rights to Real Estate (UAH 400 000).
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in cooperation with US sensitive reporting (USD
Embassy Media Development Fund: project on genderl6 034).
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in cooperation with Eastbook: project on set of
trainings for journalists (PLN
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During 2016, RPDI hosted its 8th National Conference of Investigative Journalists. Conference was supported by U-Media Program, Internews Network, International Renaissance Foundation, Democratic Society East and Polish-Canadian program to Support Democracy, N-ost, Objective and German Embassy Fund.
REGIONAL PRESS DEVELOPMENT INSTITUTE MANAGEMENT REPORT LIST OF PROJECTS IN PROGRESS (cont.) ta IT
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in2016, RPDI continued its cooperation with Czech NGO Transitions and Czech Foreign Ministry to monitor websites of central and regional governments (USD 40 726).
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in 2016, RPDI continued its cooperation with German NGO N-ost: project on development of trans-national investigative journalism (EUR 33 490).
I
Strengthening Investigative Reporting in Ukraine supported by Internews Network in cooperation with the Canada's Depafiment of Foreign Affairs" Trade and Development.
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N
Increasing Transparency and Countering Corruption in Ukraine supported by Internews Network in cooperation with US Department of State.
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Development of Investigative Joumalism, in cooperation with Fundacja Towarzystwo Demokratychne Wschod, Poland (Polish-Canadian Democracy
4)
Support Program).
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in 2016, RPDI continued its cooperation with National Democratic lnstitute
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Digital Journalism School: Capacity Building for investigative reporters cooperation with Czech NGO TOL and National Endowment for Demoarucy.
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project on the role of women in politics funded by Swedish Government.
in 2016, RPDI continued its cooperation with U-Media, which supported RPDI activities in the areas of investigative journalism, new media, legal support and training for journalists and legal advice to journalists.
REGIONAL PRESS DEVELOPMENT INSTITUTE MANAGEMENT REPORT Review of current position, future developments and performance of the Organization's activities
The Organization's development to date, its performance and position as presented in the fi nancial statements are considered satisfactory.
Management and the Supervisory Board
-
The members of Organization's Management and Supervisory Board during the year ended at December 31,2016 and at the date of this report are as follows: Management team: Katerina Laba- Executive Director (resigned on 17 October Z0l6)
olga Trufanova - Executive Director (appointed on I 1 November 2016) Lyudmyla Safarova
-
Deputy Executive Director (resigned on
l6 December 2016)
Supervisory Board before I I November 2016: Yevgen Rybka
- Chairman
of the Board
Oksana Koval - Member of the Board
Oleg Khomemok
- Member
of the Board
Iryna Sadova - Member of the Board
Kyryl Zhyvotovsky - Member of the Board Svitlana Savorona - Member of the Board
Iryna Wells - Audit Committee Member Svitlana Buko - Member of the Board Supervisory Boar.d since I I Novemb.er 2016: Oleg Khombmok
- Chairman
Yevgen Rybka
Member of the Board
-
of the Board
Iryna Wells - Audit Committee Member Oksana Koval - Member of the Board
Svitlana Savorona - Member of the Board Svitlana Buko - Member of the Board Katerina
Laba- Internal Auditor
There were no significant changes in the assignment Management and the Supervisory Board.
of responsibilities and remuneration of
Events after the reporting period
Any significant events that occurred after the end of the reporting period are described in note l6 to the financial statements.
REGIONAL PRESS DEVELOPMENT INSTITUTE MANAGEMENT REPORT Related party transactions Disclosed in note
l4 to the financial
statements.
Independent Auditors The independent auditors of the Organization, Russell Bedford RCG LLC, have expressed their willingness to continue in office. A resolution of the Board of Directors to reappoint them and t6 fix their remuneration will be proposed at the next Supervisory Board meeting.
Executive director
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34531I16
Russell Bedford RCG Mailing address: Ukraine, Kyiv 04071 5 Spaska st. AUDIToTAXoADVISORY
6tn
floor
Tel.: +38 044 281 23 40 Tel.: +38 044 281 23 44 E-mail: info@russellbedford.com. ua www.russellbedford.com. ua
INDEPENDENT AUDITORS' REPORT TO MANAGEMENT AND SUPERVISORY BOARD OF REGIONAL PRESS DEVELOPMENT INSTITUTE Opinion
fe
have audited the financial statements of kEGIoNAz pREs^y DEVELI\MENT INSTITWE (the "Organization"), which comprise the statement of financial position as at December 31, Z0lT,andthe statement of profit and loss and comprehensive income, and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Organization as at December 31,2017, and iis financial performance and its c-as!-flows for the year then ended in accordance with International Financial Reporting Standards (IFRSS).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are furlher described in the Auditor's Responslbiiities for the Audit of the Financial Statements section of our report. We are independent ofihe Organization in accordance with the ethical requirements that are relevant to our audit of the financial Jtatements in Ukraine, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information Management is responsible for the other information. The other information comprises the management report, but does not include the financial gtatements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information ii materiaily inconsistent with the financial statements or our knowledge obtained in the audit or otherwise upprurr to be materially
misstated.
If based on the work we have performed, we contlude the there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regards. Responsibilities
of
Management and Those Charged
with
Governance
for the Financial
Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from mateiial misstatement, whether due to fraud or eITOr.
In preparing the financial statements, management is responsible for assessing the Organization,s ability to continue as a going concern, disclosing, as applicable, matters related to going.on-r*rn and using thl going concern basis of accounting unless management either intends to liquldatJ the Organization ir to cease operations, or has no realistic alternative but to do so.
Russell Bedford RCG is a member of Russell Bedford lnternational, a global network of independent professional services firms
Russell Bedford RCG address: 04071
Mailing Ukraine, Kyiv 5 Spaska st.
AUDIT.TAXoADVISORY
6tn
floor
Tel.: +38 044 281 23 40 Tel.: +38 044 281 23 44 E-mail: info@russellbedford.com.ua www.russellbedford.com. ua
Those charged with governance are responsible for overseeing the Organization's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that ittcludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material individually or in the aggregate, they could reasonably be expected to influence the economic decisions ofusers taken on the basis of these financial statements.
il
As part of an audit in
accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
.
. . .
.
Identifu and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from eror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control. Evaluate the appropriateness
of
accounting policies used and the reasonableness estimates and related disclosures made by management.
of
accounting
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significanf doubt on the Organization's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Organization to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Iryna Shtefanyo Managing Partner Russell Bedford RCG 5 Spaska Street, 6th floor 04071, Kyiv, Ukraine
26March2018
l0 Russell Bedford RCG is a member of Russell Bedford lniernational, a global network of independent professional services firms
Regional Press Development Institute
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME for the year ended December 31,2016 (in UAH, unless otherwise stated)
Revenue
Total revenue
Program expenses
Total expenses
Notes
20t6
2015
5
t0 807 795 l0 807 795
9 335 292
I 335292
10 807 795
9 335 292
10 807 79s
9 335292
Unallocated (expenses) / income
Administrative and other expenses Financial (expenses)/income, net
(s7 7t4) (1e 02e)
(32 365) 4 995
Movement in net funding position
(76 743)
(27 370\
11
The notes on pages l4 to 30 are an integral part ofthese financial statements
Regional Press Development Institute
STATEMENT OF FINANCIAL POSITION as of December 31,2016
,:
Unr,unless otherwise stated) Notes
3t-12-2016
31-12-2015
54 445
57 345
54 445
57 345
Assets
Non-current qssets Property, plant and equipment
Total non-current
assets
Current Assets Targeted financing
-
receivable
Prepayments and other assets Cash in bank
878
181
128 292
l7
988
358 124
840 688 1 736 857
I 383 019 I 869 435
I
791 302
I
926 780
697 938
I
194778
9 10
ll
Total current assets Total assets
Liabilities And Net Assets Current Liabilities Targeted financing
-
payable
9
Accruals and other payables
t2
Deferred income
13
|
l I
Total current liabilities Total liabilities
205 522
764 517
54 445
57 345
0t6
957 905
2
957 905
2 016 640
Unrestricted
(166 603)
Total net funding position Total liabilities and net funding position
(166 603)
(8e 860) (8e 860)
640
Net funding position
t 79t 302
I
926 780
On March 26, 2018 Management of Regional Press Development Institute authorized these financial statements for issue.
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Olga Trufanova Executive Director
34531816
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The notes on pages l4 to 30 are an integral part ofthese financial statements
Regional Press Development Institute
STATEMENT OF CAHS FLOWS for the year ended December 31, 2016 (in UAH, unless otherwise stated) Jlow from operating activities Cash received to cover program services
2016
2015
9 814 220 37 096
r0 317 027 99 9t3
9 851 316
L0 416 940
2 806 374 1 390 925
2 615 537 1 154 842 407 822 217 589
C ash
Currency exchange differences, net
Total.cash received Caslipaid to cover contracted experts' remuneration: Experts - legal services Experts - project activities Expefts - trainers and mentors Experts - data analysis Experts - accounting services Experts - public relations and communication Cash paid to cover: Events logistics services Employee's salaries and related taxes Production of project content Grants, awards and incentive payments to program participants Office rent and utilities
525 397
442 350 358 350 172 503 2 048 414 I 403 506 472 435 321 8l
338 380
5 t25
|
965 621
1 637 756
214 006
5
190 733
200 639 82 640
200 159 65 000
Other direct program expenses
80 s29
Audit and consulting services
58 120
s4 239
Bank services
27 506 25 937
36 623
Offi ce maintenances serv ices Telecomm unication services
22 017
2A 097
439 457
I 253 258
Total cash paid Net cash (used in)/ generated from operating activities
Operating currency exchange differenceo net Net (decrease)/increase for the year
t0
(s88 r41) 45 810 (s42 331)
I
l4
833
14 896
I
163 682 (e4
I
els)
068
76"1
Cash in bank
Beginning
1 383 019
314 252
Net (decrease)/increase for the year
(s42 331)
t 068767 I 383 019
Cash in bank, ending
840 688
13
The notes on pages 14 to 30 are an integral part ofthese financial statements
T
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTES TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (all amounts are in uAH, unless otherwise stated) Note 1. General information Regional Press Development Institute (RPDI or the "Organization") is the non-profit nongovernment organization, incorporated under Ukrainian law as a legal entity in 2006. It has neither share capital, nor retained earnings. The governing bodies of the Organization are management and the Supervisory Board. RPDI is based in Kiev, Ukraine: Khreshchatyk 44 B, office 301. Principal activities of the Organization are development and enhancement of the free media profession in Ukraine through training and legal support of media professionals, maintenance bf information resources for use by media professionals; promotion of transparency and facilitation of access to information; improvement and promotion of unbiased media coverage of topics of public significance.
Note 2. Basis of preparation (a) Statement of compliance
The financial statements have been prepared
in accordance with International Financial
Reporting Standards (IFRSs) as issued by the IASB.
(b) Basis of measu rement The financial statements have been prepared under the historical cost convention. (c) Going concern hasis The financial statements have been prepared on a going concern basis.
(d) Adoption of new and revised International Financial Reporting Standards and Interpretations During the current year, the Organization adopted all the changes to lnternational Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) that are relevant to its operations and are effective for accounting periods beginning on 1 January 2016. This adoption did not have a material effect on the financial statements of the Organization.
these financial statements, Standards, Revised Standards and by the lnternational Accounting Standards Board which were not Interpretations were issued yet effective. Management expects that the adoption of these financial reporting standards in iuture periods will not have a material effect on the financial statements of the Organization'
At the date of approval of
(e) Use of estimates and judgments
The preparation of financial statements in accordance with IFRSs requires from Management the exercise of judgment, to make estimates and assumptions that influence the application of accounting principles and the related amounts of assets and liabilities, income and expenses' The estimates and underlying assumptions are based on historical experience and various other factors that are deemed to be reasonable based on knowledge available at that time. Actual results may deviate from such estimates'
14
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTES TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (all amounts are in UAH, unless atherwise stated) Note 2. Basis of preparation (cont.) The estimates and underlying assumptions are revised on a continuous basis. Revisions in -accounting estimates are recognized in the period during which the estimate is revised, if the estimate affects only that period, or in the period of the revision and future periods, if the revision affects the present as well as future periods. (I) Functional and presentation currency The functional currency of the Organization is the Ukrainian Hryvnia (UAH). Transactions in currencies other than the functional currency are treated as transactions in foreign currencies. Management decided to use Ukrainian Hryvnia (UAH) as the presentation curren0y for financial and management reporting purposes.
Note 3. Significant accounting policies The following accounting policies have been applied consistently for all the years presented in
these financial statements and
in
stating the performance and financial position
of the
Organization.
Foreiqn cu rrency translation
(i)
Transactions and balances
Transactions in foreign currencies are initially recorded by the Organization at their respective functional currency rates prevailing at the date ofthe transaction.
Monetary assets and liabilities are translated into the functional currency at the rates ruling at the end of the reporting period. Foreign exchange gains and losses, arising from transactions in foreign currency, and also from transfation of monetary assets and liabilities into the functional currency at the rate ruling at the end of the year, are recognized in profit or loss.
(ii)
Presentation currency
As the presentation and functional currencies are the Ukrainian Hryvnia (UAH) no relevant translation differences arise,
Property" plant and equipment Property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses.
!
Depreciation is recognized in profit or loss on the straight-line method over the useful lives
each item
of
property, plant and equipment. Useful lives applied for the current
of
and
comparative periods are as follows:
Type of Asset Computers and office equipment
years 2-5
Furniture
4
Other equipment
1
l5
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTES TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (all amounts are in UAH, unless otherwise stated) Note 3. Significant accounting policies (cont.) Depreciation methods, useful lives and residual values are reassessed at the reporting date.
Depreciation starts from the following month of the date an asset is available for use. and depreciation is fully accumulated when useful life terminates. Where the carrying amount
of an asset is greater than its estimated recoverable amount,
the
asset is written down immediately to its recoverable amount.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference- between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.
Inla,lqible assetji Intangible assets are measured initially at purchase cost and arc amortized on a straight-line basis over their estimated useful lives. Useful live applied for the current and comparative periods is equal to 5 years.
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is de-recognized.
: receivable Targeted financing - receivable arises when cumulative cash tranches received as at reporting Targeted financins
date to fund program expenses are less.than recognized program expenses as at the same date.
Prepavments hnd.other curfent assetq Prepayments and other current assets represent regular prepayments to suppliers for goods and
services. These are recognized when cash payments are made and are originally measured in the amount of payments. Subsequently these are carried at historic cost less impainnent
provision. Cash a{rd cash equivalgnts
For the purpose of the statements of financial position and cash flows, cash and
cash
equivalents comprise cash at bank.
Deferrpd incoJ,ne Defened income represents reallocation from program revenues and other income to the extent of cash payments received for which expenses willbe recognized in future periods. Targeted financing
-
payable
Targeted financing represents current balance of settlements with donors of program revenues. These are recognized when cash tranches are received from donors. During the recognition of expenses, directly related to specific program activities, these balances are released to program revenues in the equivalent amount. l6
REGIONAL PRESS DEVELOPMENT INSTITUTB NOTES TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (all amounts qre in UAH, unless otherwise stated) Note 3. Significant accounting policies (cont.) Accruals and olher payables
Atcruals and other payables represent liabilities incurred by the Organizations in the course of its ordinary activities when relevant payments have not yet been settled. These are carried at amortized cost.
Net fundinq posifion
A
positive net funding position represents unrestricted resources available to support organizational operations, which arise from prior activities of the Organization, when expenses incurred for specific programs and unallocated expenses were less then assets received from donors for the same purpose and zerc targeted financing balances were confirmed by the donors. Conversely, if expenses incured for specific programs and unallocated expenses exceed assets received from donors for the same purpose and zero targeted financing balances are confirmed by the donor, a negative net funding position arises. At each reporting date net funding position represents undesignated own funds and property, plant and equipment unrestricted for use less accrued liabilities, not related to any donor-financed program activities.
Program revenEes Program revenues are recognized in the amount of expenses incurred for program activities and in the period when these expenses are incurred. RPDI does not account for contributions to be received in the form of unconditional promisesto give or pledges as revenue.
The Organization receives funding from donors. The Organization does not have any sources
of
income, other than funds obtained as grants, sub-grants or under cooperation agreements, partnership agreements and service contracts. ExDenses
on the accrual basis. Program expenses include direct program joint costs.
Expenses are recognized expenses and allocated
Tax status
The Foundation is a not-for-profit organization exempt from income tax and VAT under Ukrainian Law. Comparatives
Where necessary, comparative figures have been adjusted
to
conform
to changes
in
presentation in the current year.
t7
r I
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTES TO FINANCIAL STATEMENTS for the year ended December 31, z0rc (all amounts are in UAH, unless otherwise stated) Note 4. Operating segments reportable segment is a detachable component of the Organization's activities which repreients main areas of statutory objectives. The Organization receives financing from donors foi implementation of these statutory objectives. Reportable segments are reported in a manner consisient with the internal reporting provided to the chief operating decision-maker.
A
The operating components have independent revenues and are managed separately. As the Organization is established as non-profit NGO, reportable segments' expenses are equals to relevant revenues and managed separately from other segments as well. All expenses are allocated to specific reportable segments, except general administrative expenses which could not be directiy allocated. Similar to profit and loss items, at each reporting date all balance sheet items are allocated to specific reportable segments, except those which could not be allocated.
In each reporting period there were no intra-segment transactions, as well as vertical integration between reportable segments.
In the year ended 3l December 2016 the Organization identified the following
reportable
segments: 1) Training and education for media professionals; 2)Legal support and media law education; 3) Promoting of government transparenoy and facilitation of access to information; 4) lmprovement of unbiased media coverage of women and minorities; 5) Development of investigative journalists' networks;
6) Or ganizatio n develoPment.
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REGIONAL PRESS DBYELOPMENT INSTITUTE NOTES TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (all amounts are in UAH, unless otherwise stated) Note 5, Revenues During 2016, the Organization obtained funding from different donors under grans, sub-grants, cooperative, partnership and service agreements:
24rc Program revenues
t0 834
Deduction from revenue
l0
2015
147
9 383 983
(26 3s2)
(48 6e1)
807 79s
I
335 292
Deduction from revenue represents deferral of revenue in the amount of expenses that will be recognized in future periods. Program revenues per type of agreements are presented as follows: 2016
2015
Sub-grants
3 933 990
3 846 889
Grants
3 408 107
2 080 809
Partnership agreements
2 164 234
I 59t 179
Cooperative agreements
1 327 816
551 740
Services agreements
1 185 742
Adm inistration agreements
127 624
l0
834 t47
9 383 983
2t
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTES TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (all amounts are in UAH, unless otherwise stated) Note 5. Revenues (cont.) Progran revenues by Donors are presented as follows: 2015
2016
2 527 t68
lrltern ews Network, Ukrai ne (U -Med ia pro gram )
2 182 320
Democratic Society East, Poland
I I
605 149
548 754
327 816
551 740
I
a55 299
National Democratic Institute, USA Transitions, Czech Republic / Ministry of Foreign Affairs of the Czech Republic N - ost (N-vestigative), Germany Internews Network, Ukraine (Increasing Transparency and Countering Corruption in
I
033 734
976 249
425 505
Ukraine) lnternews Network, Ukraine / Canadian International Development Agency
912 844
793 980
729 488
525 742
International Renaissance Foundation, Ukraine
640 000
601 128
Transitions, Czech Republic / National Endownment for Democracy, USA
614 707
274 256
Eastbook, Poland
494 228
lntemews Network, Ukraine / All-Ukrainian Investigative Reporting Conference *
109 738
German Embassy, Kiev, Ukraine
105 204
Niras/Objectives North
47 574
US Embassy, Kiev, Ukraine
33 931
97 29;
t 185 742
The Institute of War and Peace Reporting, USA Czech Embassy, Kiev, Ukraine
342 509
CEELI Institute Council of Europe
181 385 127 623
Fojo Media Institute, Sweden
101 804
Foundation "Open Society Institute"
'
=
l0 834 t47 '',
65 621 9 383 983
22
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTES TO FINANCIAL STATEMENTS for the year ended December 31, 20L6 (all amounts are in UAH, unless otherwise stated) Note 6. Program expenses During 2016,the Organization incurred the following expenses directly related to programs:
fees Events logistics
Contracted experts'
Employee salaries and related
taxes
Note
2016
2015
6.1
6 026 473
4 850 834
6.2
2 068 s84
2 015 983
6.3
I
I
Production of project content Grants, awards-and incentive payments to program participants
Office rent expenses and utilities Translation services
175 354
520 297
512 005
225 823
368 941 218 500
202 565
118 470
5s 1s6
98 188
tt5
Unused vacation expenses and related taxes
77 068
Audit and censulting services
62 t20
38 173
Other direct program expenses
55 506
Office materials and supplies
46 597
78 159 62 349
Bank services
29 292
36 617
Office maintenances
23 061
15 791
Telecommunication serv ices
2t
t3
Depreci ation and amort ization
847
265
157
3 977
6 935
t0 807 795
9 335 292
Note 6.1. Contrhcted experts' fees Fees of contracted experts are analyzed by the Organization as follows:
By degree of cooperation :
20t6 Regularly contracted experts
4 562 830
Other contracted experts
|
2015
4 155
151
463 643
695 683
6 026 473
4 850 834
23
REGIONAL PRESS DEVELOPMENT INSTITUTE, NOTES TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (all amounts are in UAH, unless otherwise stated) Note 6.1. Contracted experts' fees (cont.) By typg of remuneratiqn:
2016
Experts
- legal services - project activities - trainers and mentors
Experts
- data analysis
Experts
{xperts
2 879 00t 1
43s 835
2015
2775 496
I
161 057
676 424
355 459
476 400
215
accounting services
392 350
338 730
public relations and communication
216 463
4 952
6 026 473
4 8s0 834
2016
2015
4 724 470
3 947 659
General coordination of projects
713 500
s59 494
General costs to organization
588 503
343 681
6 026 473
4 850 834
2016
2015
Experts -
Experts
1,40
By degree of involvement in program activities:
Support of project activities
Note 6.2. Events logistics
Organization and coordination of events Travel, per diern and accommodation of program
l
730 335
t
619 942
9t9
344 378
45 330
51 703
2 068 584
2 015 983
2016
2015
participants
292
Rent of premises for program activities
Note 6.3. Salaries and related charges
I
Salaries
993 904
Contributions to social funds
181 450
162 670
55 872
170 356
231 226
I 690 652
Unused vacations accrual and related charges
I
357 626
24
.'rLti||:j:!'li,:f :::.:ir3a,fttjl,ff tf ::r
i
i;
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTES TO FINANCTAL STATEMENTS for the Year ended December 31, 2016 (all amounts are in UAH, unless otherwtse stated) Note 7. Movement in net funding position
As at 1 JanuarY Exchange differences' net
provision Movement in unallocated unused vacation Contracted experts' fees not covered by Donor's funding
Audit services Other unallocated (expenses)/income As at 31 December
2016
201s
(8e 860)
(62 4eo)
(le 02e) 2t 196
4 995 (s5 0e0)
{2s 262) (40 000) (13 648)
2272;
(166 603)
(8e 860)
25
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTES TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (oll amounts qre in UAH, unless otherwise stated) Note 8. Property, plant
& equipment Computer and office equipment
Cost Balance at
I
Non-current lowvalue equipment 72 482
Additions
t46 992 48 690
Disposals
(3 000)
3 700
(4 s20) (3 700)
196 382
64 262
(10e r33)
(72 482)
January 2015
Internal transfer Balance at
3
I
December 2015
Depreciation Balance at 1 January 2015 Charge for the year
(2e 204)
4 520
(3 700)
3 700
Balance at 31 December 2015
(13e 037)
(64 262)
Carrying amounts Balance at 3 I December 2015
57 34s
Internal transfer
Balance at 1 January 2016
t96 382
3l
December 2016
Depreciation Balance at I January 2016 Charge for the year
(181
6ls)
7 520 (203 zee)
5z r+s
8 442
30 330
(2 03s)
(2 03s)
218 270
70 669
288 939
(r3e 037)
(64 262) 282)
(203 zee) (33 230)
2 A3s
2 035
(170 e85)
(63 50e)
(234 4e4)
47 28s
7 160
54 445
888
(31 e48)
On disposals Balance at 31 December 2016
260 644
260 644
Disposals Balance at
48 690 (7 520)
64 262
2r
Additions
219 474
(2e 204)
3 000
On disposals
Total
(l
Carrying amounts Balance at 31 December 2016
26
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTBS TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (all amounts are in UAH, unless otherwise stated) Note 9. Targeted financing Targeted financing by donors is presented as follows:
3t-t2-2016 National Democratic Institute, USA US Embassy, Kiev, Ukraine Trdnsitions, CzechRepublic / Ministry of Foreign Affairs of the CzechRepublic Democratic Society East, Poland Transitions, Czech Republic I National Endownment for Democracy, USA Internews Network, Ukraine (Increasing Transparency and Countering Corruption in Ukraine) Internews Network, Ukraine / All-Ukrainian Investigative Reporting Conference Internews Network, Ukraine I Canadian International Development Agency
3l-12-2015
(l 87 866)
(47s eze) (222 00e) 304 564 292 028
(450 r38)
302
(6 266)
(147 396)
53
52 773
4 323_
(184 224) (218 888)
Internews Network, Ukraine (U-Media program)
Councilof Europe CEELI Institute The Institute of War and Peace Reporting, USA
79 499 35 400
l3 180 243
Summary of Targeted
fi
Targeted financing
(1 066 486)
nancing outstanding amounts is presented as follows: 31-12-2016
Targeted financing
393
- payable - receivable
(6e7 e38) 878
31-12-2015
(t te4 778) 128292
181
180 243
(l
066 486)
27
REGIONAL PRBSS DEVELOPMENT INSTITUTE NOTES TO FINANCIAL STATBMENTS for the year ended December 31, 20L6 (all amounts are in UAH, unless otherwise stated) Note 10. Prepayments and other assets At each reporting date prepayments and other
assets consist of the following:
3t-12-2Arc
l3
?repayrnents for services
Payroll taxes and contributions prepaid
3t-12-2015
683
350 890
4 305
7 234
17 988
358 124
Note 11. Cash in bank Cash and cash equivalents at each reporting date include accounts opened
with Procredit Bank
in USD, EIIR, PLN and UAH.
3t-12-2016
3l-12-2015
Cash in bank denominated in USD
357 098
395 176
Cash in bank denominated in UAH
266 t66
627 738
Cash in bank denominated in PLN
360 105
Cash in transit in EUR
142 113
Cash in transit in USD
75
3tI
840 688
1 383 019
Note 12. Accruals and other payables At each reporting date accruals and other payables consist of the following:
3t-12-2016
3l-12-2015
Payables for goods and services
688 566
363 879
Payables to regularly contracted experts
391 250
703 155
Provision for unused vacation
62
8n
t76 897
Provision for audit services
60 000
20 000
2 89s
586
205 522
764 5t7
Payroll, related taxes and contributions
I
28
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTBS TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (all amounts are in UAH, unless otherwise stated) Note 13. Deferred income At
each reporting date deferred income consists of the
following: 3t-12-2016
3t-t2-2015
Deferred income on unrestricted in use PPE
28 093
Defefred income on restricted in use PPE
26 352
l5 590 4t 755
54 445
57 345
Note 14. Related party transactions The organization is managed by the Board of Directors. For the purposes of these financial statements, parties are considered to be related if one party has the ability to control the other party, is under common control, or can exercise significant influence over the other parfy in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely the legal form.
According to these criteria the related parties of the Organization are divided into the following categories:
a. Key management personnel; b. Members of the'Board of Directors; Transactions with related parties for the year
,;
3l
December 2016 and 2015 were as follows:
(a) Key management remuneration
2016
201s
924 432
637 838
924 432
637 838
2016
2015
Or ganizational serv ices
278 176
342 735
Contracted experts remuneration
341 207
264 452
579 384
607 187
Payroll and related taxes
(b) Services
29
REGIONAL PRESS DEVELOPMENT INSTITUTE NOTBS TO FINANCIAL STATEMENTS for the year ended December 31, 2016 (all amounts are in UAH, unless otherwise stated) Note 14. Related party transactions (cont.) Outstanding balances with identified related parties as of
followsl Payubles
3l
December 2016 and 2015 were
as
for goods snd services
Members of the Board of Directors
3l-12-2016
3l-12-2015
99 767
77 798
99 767
77 798
Note 15. Contingent liabilities Pension and other liabilities Organization's employees receive pension benefits from the State pension Fund, a Ukrainian Government organization, in accordance with the applicable laws and regulations of Ukraine. The Organization is obliged to contribute a specified percentage of salaries to the State pension
Fund to finance the benefits. The only obligation of the Organization with respect to this pension plan is to make the specified contribution from salaries.
As at 31 December20l6 and 2015, the Organization had no liabilities for any supplementary pension payments, health care, insurance or retirements indemnities to its current or former employees.
The Organization had no contingent liabilities as at
3l
December 2016 (31 December 2015:
none).
Note 16. Events after reporting date After the reporting date, there are several events that have a significant impact on the activities of the Organization:
In May 2017, a three-year contract was signed with the Danish Ministry of Foreign Affairs within the scope of the EU Anti-Corruption Initiative project. The total amount of expected funding is EUR 600 000.
In May 2017, a two-year contract was signed with the Ministry of Foreign Affairs of the Netherlands within the scope of the Matra Program in respect of the project Orgonizarional Capacity Development for Centers of Investigative Journalism in Ulcriine, thI contracted amount is UAH 2 965 470. In June 2017, a two-year contract was signed with the National Democratic Institute as part of the continuation of the project Improving Medio Coverage for Women's Leaders in the amount of USD 154 422.