1. finance
2. accounting and auditing

AFRICAN POPULATION AND HEALTH
RESEARCH CENTER (APHRC)
SPECIAL PURPOSE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2014
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
TABLE OF CONTENTS
PAGES
Officials and advisers
2
Report of the Directors
3
Statement of Directors’ responsibilities
4
Independent auditors’ report
5-6
Financial statements
Statement of profit and loss and other comprehensive income
7
Statement of financial position
8
Statement of changes in funds
9
Statement of cash flows
10
11 – 27
Notes to the financial statements
1
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
OFFICIALS AND ADVISERS
Directors
Agyeman Akosa
Alex Ezeh
Trudy Harpham
Tade Aina
Goran Bondjers
Akpan Ekpo
Patricia Vaughan
Timothy Stiles
James Ole Kiyiapi
Philip Kinisu
Tamara Fox
Chairperson, Board of Directors
Executive Director
Registered office
APHRC Campus
Manga Close, off Kirawa Road
P.O. Box 10787-00100
Nairobi – Kenya
Auditor
Deloitte & Touche
Deloitte Place, Waiyaki Way, Muthangari
P.O. Box 40092 - GPO 00100
Nairobi – Kenya
Lawyers
Njoroge Regeru and Company Advocates
Arbor House, Arboretum Drive
Off Bishop Road
P.O. Box 46971-00100
Nairobi - Kenya
Mboya Wangong’u and Waiyaki
Lex Chambers, Maji Mazuri Road
Off James Gichuru Road, Lavington
P.O. Box 74041 - 00200
Nairobi - Kenya
Bankers
UBS Financial Services Inc.
1285 Ave of the Americas
New York, NY 10019 - USA
Ecobank Nigeria
67, Yakubu Gowon Crescent
Asokoro District - Abuja - Nigeria
CfC Stanbic Bank Ltd
CfC Stanbic Centre
P.O. Box 72833-00200
Nairobi - Kenya
I & M Bank Kenya
P.O. Box 30238 - 00100
Nairobi - Kenya
Ecobank Kenya
Ecobank Towers Branch
P.O. Box 48022-00100
Nairobi - Kenya
Bank of America
345, Park Avenue
NY5-125-01-01
New York, NY 10154
Equity Bank Limited
Gigiri Supreme Centre
Gigiri Square, UN Avenue
P.O. Box 101739 - 00100
Nairobi - Kenya
2
Chairperson of the Board
African Population and Health Research Center (APHRC)
P.O. Box 10787 - 00100
Nairobi, Kenya
INDEPENDENT AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS OF AFRICAN
POPULATION AND HEALTH RESEARCH CENTER (APHRC)
We have audited the accompanying special purpose financial statements of African Population and Health Research
Center (APHRC) set out on pages 7 to 27, which comprise the statement of financial position at 31 December 2014,
the statement of income and expenditure, statement of changes in funds and statement of cash flows for the year then
ended and a summary of significance policies and other explanatory notes.
The special purpose financial statements have been prepared by the directors in accordance with the accounting
policies set out in Note 1.
Directors’ responsibility for the special purpose financial statements
The Directors are responsible for the preparation of these special purpose financial statements that presents fairly in
accordance with the accounting policies set out in Note 1, and for such internal control as the directors determine
are necessary to enable the preparation of these special purpose financial statements that are free from material
misstatements, whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on these special purpose financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards require that we
comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
we considered the internal control relevant to the Center’s preparation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
Center’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the special purpose financial statements of the Center presents fairly the financial position of the
Center as at 31 December 2014 and its financial performance and cash flow for the year then ended, in all material
respects, in accordance with the accounting policies set out on Note 1 of the financial statements.
5
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2014
2014
Restricted
Income
US$
2014
Unrestricted
Income
US$
9,633,864
__________
1,944,676
474,147
723,867
123,802
__________
11,578,540
474,147
723,867
123,802
__________
13,016,090
654,609
732,635
168,023
__________
9,633,864
__________
3,266,492
__________
12,900,356
__________
14,571,357
__________
9,633,864
_________
958,010
1,893,817
181,264
237,799
_________
10,591,874
1,893,817
181,264
237,799
_________
11,566,226
1,658,515
337,630
194,037
__________
9,633,864
_________
3,270,890
_________
12,904,754
_________
13,756,408
__________
-
(4,398)
(4,398)
814,949
-
(5,557)
(5,557)
(24,875)
_________
_________
_________
_________
=========
(9,955)
=========
(9,955)
=========
790,074
=========
Note
2014
2013
Total
US$
Total
US$
INCOME
Grant income
Other income
Kitisuru building rental income
Service charge income
3
4
Total income
EXPENDITURE
Direct programme expenses
Administration & support costs
APHRC campus development
APHRC campus administration expenses
5
6
7
8
Total expenditure
(DEFICIT)/SURPLUS FOR THE YEAR
OTHER COMPREHENSIVE INCOME
Fair value loss on available for sale
financial assets
Total comprehensive (loss)/income for the year
The notes set out on pages 11 to 27 form an integral part of these financial statements.
7
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
STATEMENT OF CHANGES IN FUNDS
AS AT 31 DECEMBER 2014
Accumulated
fund
US$
*Revaluation
reserve
US$
**Capital
fund
US$
Total
2,314,441
6,133
3,563,943
5,884,517
(24,875)
-
(24,875)
814,949
-
-
814,949
Fixed assets purchased
-
-
423,576
423,576
Fixed assets disposed
-
-
(13,354)
(13,354)
Building transfer***
(888,888)
-
888,888
-
_________
_________
(279,568)
_________
(279,568)
_________
2,240,502
=========
(18,742)
=========
4,583,485
=========
6,805,245
=========
2,240,502
(18,742)
4,583,485
6,805,245
Revaluation loss on investments
-
(5,557)
-
(5,557)
Revaluation gain on fixed assets
-
2,740,613
-
2,740,613
(53,567)
53,567
-
(4,398)
-
-
(4,398)
-
-
213,676
213,676
(444,444)
-
444,444
-
-
-
(335,855)
(335,855)
88,890
_________
_________
(88,890)
_________
_________
1,880,550
=========
2,662,747
=========
4,870,427
=========
9,413,724
=========
As at 1 January 2013
Revaluation loss on investments
Surplus for the year
Depreciation for the year
At 31 December 2013
As at 1 January 2014
Transfer of revaluation depreciation
Deficit for the year
Fixed assets purchased
Building transfer***
Depreciation for the year
Depreciation on building transfer
At 31 December 2014
US$
* Revaluation reserve
These represent gain or loss on revaluation of financial instruments and gain on revaluation of assets.
** Capital funds
The capital fund has been created to separate reserves that specifically relate to property and equipment.
*** Building transfer
It relates to transfer of the portion of the value of building paid for from the loan, which is equivalent to the
principal loan amounts repaid in the year in relation to the building acquisition.
The notes set out on pages 11 to 27 form an integral part of these financial statements.
9
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
STATEMENT OF CASH FLOWS AS AT 31 DECEMBER 2014
Note
2014
US$
2013
US$
(9,955)
790,074
22,221
25,667
5,557
_________
33,333
40,000
(4,957)
24,875
_________
43,490
883,325
Increase in debtors and prepayments
Decrease in grants receivable
Increase/ (Decrease) in deferred grants
Increase in creditors and accruals
(18,957)
1,185,770
118,867
767,808
_________
(3,108)
9,054,804
(8,565,761)
2,603,258
_________
Net cash generated by operating activities
2,096,978
_________
3,972,518
_________
(25,667)
(40,000)
Proceeds on sale of assets
_________
4,957
_________
Net cash used in investing activities
(25,667)
_________
(35,043)
__________
(444,444)
_________
(888,888)
__________
1,626,867
3,048,587
10,190,884
_________
7,142,297
__________
11,817,751
=========
10,190,884
==========
11,817,751
=========
10,190,884
==========
CASH FLOWS FROM OPERATING ACTIVITIES
Generated (deficit)/ surplus for the year
Adjustments for:
Depreciation
Interest on program related investment loan
Gain on sale of assets
Fair value loss on the investments
18
7
13
Surplus before working capital changes
Working capital changes
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on program related investment loan
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of program related investment loan
17
INCREASE IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS AS AT
1 JANUARY
CASH AND CASH EQUIVALENTS AS AT
31 DECEMBER
Represented by:
Bank and cash balances
12
The notes set out on pages 11 to 27 form an integral part of these financial statements.
10
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1
SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are set out
below:
(a)
Basis of accounting
The financial statements are prepared under the historical cost basis of accounting. The principal
accounting policies adopted are set out below;
(b)
Income recognition
i)
Restricted income is recognised when expenditure is incurred and when grant conditions are
fulfilled, i.e. grant income is matched to expenditure. Unrestricted grant income (non specific
grants) is recognised over the grant period.
ii) Rental and interest income is recognized as it accrues.
iii) Other income is recognized on a receipt basis.
iv) Funds received for purchase of assets are recognised in full on purchase of the assets.
(c)
Project expenditure
Project expenditure is recognized when incurred.
(d)
Grants receivable
Grants from donors are recognized as a receivable when a grant has been approved and a grant
agreement with the donors signed, and represents the balance of funds to be received from the
donors.
(e)
Deferred grants
Grants received are treated as deferred grants and credited to the income and expenditure statement
when the activities for which they were provided for have been undertaken. Any deferred grants are
carried forward as liabilities.
(g)
Prepaid operating lease rental
Leases where a significant portion of the risks and rewards of ownership are retained by the lessor
are classified as operating leases. Operating leases financed through project funds expensed in the
income and expenditure statement in the year the costs are incurred. The value of the prepaid lease is
then recognized as an asset and an equal amount recognized in the capital fund. Amortisation is
charged on a straight line basis over the remaining lease period. This amortisation is charged to the
operating lease balance on the asset side and a similar amount charged to the capital fund.
(e)
Capital fund
The capital fund has been created to reflect the monies spent on property and equipment and is
adjusted through the accumulated funds reserve to reflect the movements in assets for additions,
depreciation, disposals and loan repayments, when an asset is purchased on loan.
11
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1
SIGNIFICANT ACCOUNTING POLICIES
(f)
Property and equipment
Buildings, equipment and motor vehicles financed through project funds are expensed in the
income and expenditure statement in the year of acquisition. The value of the asset is then
recognized as an asset and an equal amount recognized in the capital fund. Depreciation is
charged on a straight line basis over the estimated useful life of the asset. This depreciation is
charged to the asset balance on the asset side and a similar amount charged to the capital fund.
The annual rates used are:
Buildings
Computer equipment and software
2.5%
33.3%
Motor vehicles
(g)
25%
Furniture and fittings
12.5%
Equipment and tools
20%
Intangible assets
Intangible assets are mainly made up of software costs. Intangible assets financed through project
funds are expensed in the income and expenditure statement in the year of acquisition. The
Intangible asset is measured on initial recognition at cost and an equal amount recognized in the
capital fund. Intangible assets are amortized over the term of their expected useful lives. The
annual amortisation rate is 33.3%. The amortisation is charged to the asset balance on the asset
side and a similar amount charged to the capital fund. The carrying values of intangible assets are
reviewed for impairment when events or changes in circumstances indicate that the carrying value
may not be recoverable.
(h)
Financial instruments
Financial assets and liabilities are recognized in the Center’s financial position when the Center has
become a party to the contractual provisions of the instrument.
Financial assets
Financial assets that have a fixed maturity are measured at amortized cost. Re-measurement gains
and losses are dealt with in surplus or deficit for the year.
Receivables
Receivables are stated at their nominal value. When a receivable is considered uncollectible it is
written off against the receivable account.
Payables
Payables are stated at their nominal value.
Short term deposits
Short term deposits are classified as held to maturity and are measured at amortised costs.
12
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1
SIGNIFICANT ACCOUNTING POLICIES
(h)
Financial instruments
Available for sale investments
Investments in Old Mutual International, formerly Royal Skandia Executive redemption bond is
recognised on a trade date basis and was initially measured at fair value, including transaction
costs. The investment was stated at the market value ruling as at the year-end and is classified as
an available for sale financial asset. Gains or losses on re-measurement are recognised in other
comprehensive income and accumulated in the revaluation reserve
(i)
Taxation
No provision for corporate tax has been made in these financials. The Center qualifies for
exemption from corporation tax in Kenya under paragraph 10 of the 1st Schedule to the Income Tax
Act, Cap. 470 of the Laws of Kenya. The Center has an agreement with the Government of Kenya,
exempting it from paying corporate taxes.
(j)
Cash and cash equivalents
Cash and cash equivalents comprise cash-in-hand, bank balances and short term liquid
investments which are readily convertible into known amounts of cash.
For the purposes of the cash flow statement, cash equivalents include cash at hand and bank, and
fixed deposits held in the bank.
(k)
Foreign currency translations
Assets and liabilities denominated in currencies other than United States Dollars (US$) are translated
into US$ at the rate of exchange ruling at the statement of financial position date. Transactions
during the year are translated at the spot exchange rates at the date of the transactions. All exchange
differences are dealt with in the statement of comprehensive income.
(l)
Retirement benefit obligations
The Center operates a defined contribution scheme for eligible employees to which the employer
contributes 10% (2013-10%) and the employees contribution is optional. The assets of the scheme
are held in separate trustee administered funds and managed by Britam for Nationally recruited staff
and Generalli International Pension fund for Internationally recruited staff. Contributions are
determined by the rules of the scheme.
The organization contributes to the statutory defined contribution pension scheme, the National
Social Security Fund (NSSF). Contributions are determined by local statute and are currently limited
to Shs 200 per employee per month. A new NSSF Act No 45 of 2013 effective 10 January 2014
requires the contributions to change as follows:
For the purposes of the Act, the Upper Earning Limit (UEL) will be KES. 18,000 while the Lower
Earnings Limit (LEL) will be KES 6,000. The pension contribution will be 12% of the pensionable
wages made up of two equal portions of 6% from the employee and 6% from the employer subject to
an upper limit of KES 2,160 for employees earning above KES 18,000. The employee contribution
shall be drawn directly from his salary and wages while the employer’s contribution shall come
directly from the employer. The contributions relating to the earnings below the LEL of the earnings
(a maximum of KES. 720) will be credited to what will be known as a Tier I account while the
balance of the contribution for earnings between the LEL and the UEL (up to a maximum of
KES 1,440) will be credited to what will be known as a Tier II account.
The new NSSF ACT requirements have been suspended pending a court case.
13
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS
1
SIGNIFICANT ACCOUNTING POLICIES
(m)
Provision for staff leave and gratuity
A provision is made to recognize staff entitlements in respect of annual leave not taken and gratuity
as at the end of the financial year.
(n)
Comparatives
Where necessary comparative figures have been adjusted to conform to change in presentation in
the current year.
2
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
Critical accounting judgments
In the process of applying the Center’s accounting policies, management is required to make judgments,
estimates and assumptions about the carrying amounts of assets and liabilities within the next financial
year. The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates including expectations of future
events that are believed to be reasonable under the circumstances.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision only affects that
period or in the period of the revision and future periods if the revision affects both current and future
periods.
The financial statements have been prepared on a going concern basis on the belief that funds will continue
to be received from donors.
Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation
uncertainty at the statement of financial position date that has a significant risk of causing material
adjustment to the carrying amounts of assets and liabilities within the next financial year:
Equipment
Critical estimates are made by the management in determining depreciation rates of equipment.
Impairment of assets
At each statement of financial position date, the Center reviews the carrying amounts of its tangible assets
to determine whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss.
Provisions and contingent liabilities
The Center reviews its obligations at the each statement of financial position date to determine whether
provisions need to be made and if there are any contingent liabilities.
Going concern
The financial statements are prepared on a going concern basis on the belief that funds will continue to be
received from donors and other funds generated through rental, interest and other incomes.
14
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS
3
GRANT INCOME
Restricted income
2014
US$
2013
US$
9,633,864
_________
10,690,127
_________
833,333
243,612
38,462
829,269
_________
833,333
243,612
1,249,018
_________
1,944,676
_________
2,325,963
_________
11,578,540
=========
13,016,090
=========
207,063
11,917
255,167
________
138,886
193,617
13,956
17,882
290,268
________
474,147
=======
654,609
========
Unrestricted income
Hewlett Foundation
SIDA - general support
Fidelity Charitable Gift program
Overheads recovery
Grand total (note 16)
4
OTHER INCOME
Interest income
Exchange gains
Consulting income
Training income
Miscellaneous income
5
DIRECT PROGRAMME EXPENSES
Field assistants and consultants
Program staff salaries and benefits
Public relations and advertising
Computers and other equipment
Seminars and workshops
Fellowships
Travel costs
Training
Printing and stationery
Dissemination & knowledge management
Sub grants
Publications, reprint and reports
Subtotal
2014
Restricted
US$
2014
Unrestricted
US$
2014
Total
US$
2013
Total
US$
475,358
3,400,526
13,440
41,582
816,525
3,085,224
140,527
109,674
72,985
20
555,142
43,060
________
252,615
455,713
219
6,042
22,991
36,085
8,743
114,912
8,085
________
727,973
3,856,239
13,659
47,624
839,516
3,085,224
176,612
118,417
187,897
20
555,142
51,145
_________
692,196
3,471,841
18,400
51,675
1,465,994
3,417,836
129,635
153,436
108,479
1,700
1,091,311
29,843
_________
8,754,063
========
905,405
========
9,659,468
=========
10,632,346
=========
15
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS
5
DIRECT PROGRAMME EXPENSES (CONTINUED)
Library development
Field office supplies
Motor vehicle expenses
Communications and postage
Field office rent & expenses
Equipment repairs and maintenance
Community development
Occupancy costs
Other program costs
Total
6
2014
Restricted
US$
2014
Unrestricted
US$
2014
Total
US$
2013
Total
US$
102,043
39,927
40,117
4,508
1,360
333,673
313,187
44,986
________
5,848
3,674
5,373
15,869
4,786
9,987
7,068
________
107,891
43,601
45,490
20,377
6,146
343,660
313,187
52,054
_________
2,169
121,966
45,095
36,412
22,922
473
344,600
309,707
50,536
_________
9,633,864
========
958,010
========
10,591,874
=========
11,566,226
=========
ADMINISTRATION AND SUPPORT COSTS
Travel costs and allowances
Board costs
Staff salaries and benefits
Other overhead costs
Professional fees
Office rent
Stationery and office supplies
Communication and postage
Motor vehicle running
Staff development
Recruitment expenses
Insurance
Equipment
Fundraising costs
Depreciation
Exchange losses
Bad debt written off
16
2014
US$
2013
US$
35,577
140,754
894,960
12,549
72,525
3,492
74,749
48,185
11,246
41,670
24,851
11,941
26,205
49,775
22,221
324,303
98,814
_________
20,665
95,676
855,098
12,316
32,401
134,949
66,879
47,902
1,503
64,300
24,716
14,285
218,976
35,516
33,333
_________
1,893,817
=========
1,658,515
=========
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS
7
2013
US$
150,090
25,667
5,507
_________
44,827
40,000
19,244
96,359
15,490
121,710
_________
181,264
=========
337,630
=========
24,087
52,406
69,929
5,812
55,689
14,047
6,185
3,950
5,694
________
22,632
51,970
59,645
4,534
28,660
12,568
5,790
4,635
3,603
________
237,799
========
194,037
========
APHRC CAMPUS DEVELOPMENT
Kitisuru building improvements
Program related investment loan interest capitalized
Road improvements
Impairment - land deposit
CCTV additional installation
Audio visual equipment
8
2014
US$
APHRC CAMPUS ADMINISTRATION EXPENSES
Staff costs
Security
Office cleaning & maintenance
Fuel
Electricity
Office supplies
Insurance
Water
Audit fees
17
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
9
PROPERTY AND EQUIPMENT
Building
US$
Computers
US$
Motor
vehicles
US$
Furniture,
fittings
US$
Equipment
and tools
US$
Total
US$
5,373,987
44,826
________
450,389
46,658
(101,714)
________
216,907
174,689
(40,244)
________
113,733
(10,699)
________
82,429
144,269
(6,621)
________
6,237,445
410,442
(159,278)
_________
5,418,813
========
5,418,813
150,090
1,440,168
________
395,333
========
395,333
32,175
________
351,352
========
351,352
________
103,034
========
103,034
________
220,077
========
220,077
29,021
________
6,488,609
========
6,488,609
211,286
1,440,168
_________
7,009,071
========
427,508
========
351,352
========
103,034
========
249,098
========
8,140,063
========
At 1 January 2013
Charge for the year
Eliminated on disposal
134,350
135,470
________
393,476
43,834
(93,030)
________
207,476
52,334
(40,243)
________
30,375
11,758
(9,647)
________
47,803
46,210
(5,112)
________
813,480
289,606
(148,032)
________
At 31 December 2013
269,820
========
269,820
184,449
________
344,280
========
344,280
46,225
________
219,567
========
219,567
44,057
________
32,486
========
32,486
11,758
________
88,901
========
88,901
42,392
________
955,054
========
955,054
328,881
________
454,269
========
390,505
========
263,624
========
44,244
========
131,293
========
1,283,935
========
6,554,802
========
5,148,993
========
37,003
========
51,053
========
87,728
========
131,785
========
58,790
========
70,548
========
117,805
========
131,176
========
6,856,128
========
5,533,555
========
COST
At 1 January 2013
Additions
Disposals
At 31 December 2013
At 1 January 2014
Additions
Revaluation
At 31 December 2014
DEPRECIATION
At 1 January 2014
Charge for the year
At 31 December 2014
NET BOOK VALUE
At 31 December 2014
At 31 December 2013
18
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
10
2014
US$
2013
US$
290,340
1,300,445
_________
290,340
________
1,590,785
_________
290,340
________
At 1 January
Charge for the year
10,383
18,357
_________
7,788
2,595
________
At 31 December
28,740
_________
10,383
________
1,562,045
=========
279,957
========
233,122
2,390
_________
231,848
13,134
(11,860)
________
235,512
=========
233,122
========
218,703
10,838
_________
207,755
20,700
(9,752)
________
229,541
=========
218,703
========
5,971
=========
14,419
========
4,137,579
359
7,679,813
_________
2,743,682
357
7,446,845
_________
11,817,751
=========
10,190,884
=========
PREPAID OPERATING LEASES
COST
At 1 January
Revaluation
At 31 December
ACCUMULATED AMORTISATION
NET BOOK VALUE
At 31 December
11
INTANGIBLE ASSETS
Computer software
COST
As at 1 January
Additions
Disposal
As at 31 December
AMORTISATION
As at 1 January
Charge for the year
Elimination on disposal
As at 31 December
NET BOOK VALUE
As at 31 December
12
CASH AND BANK BALANCES
Cash at bank
Cash on hand
Fixed deposits
As at 31 December
19
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
12
CASH AND BANK BALANCES (Continued)
The fixed deposits are held at Ecobank Kenya, CFC Stanbic and I&M bank. The weighted average rate of
interest on the Fixed Deposits was as follows:
Kenya shilling denominated deposits 10% (2013 - 8.25%)
USD denominated deposits 3.4% (2013 - 3.16%)
GBP denominated deposits 3% (2013 - None)
13
AVAILABLE FOR SALE INVESTMENTS
This comprises an investment in an Old Mutual International formerly Royal Skandia executive
redemption bond where funds have been placed in a diversified investment portfolio on a long-term basis.
Description
Old mutual international (formerly Royal Skandia)
Executive redemption bond
Total
Cost at
31.12.2013 and
31.12.2014
US$
Market
value as at
31.12.2014
US$
Market
value at
31.12.2013
US$
405,000
________
380,701
________
386,258
________
405,000
========
380,701
========
386,258
========
2014
US$
2013
US$
386,258
(5,557)
_________
411,133
(24,875)
_________
380,701
=========
386,258
=========
Movement in available for sale investments
As at January
Fair value loss
14
DEBTORS AND DEPOSITS
Staff debtors
Other debtors
Prepaid staff costs
Prepayments
Utilities and other deposits
15
94,501
86,856
20,983
151,616
8,486
_________
107,390
169,562
17,932
39,454
9,147
_________
362,442
=========
343,485
=========
128,238
1,391
6,187,978
_________
244,784
5,305,015
_________
6,317,607
=========
5,549,799
=========
CREDITORS AND ACCRUALS
Trade creditors
Payroll creditors
Other accruals
20
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
16
GRANTS RECEIVABLE/DEFERRED GRANTS
Donor
Restricted grants
3IE
Adam Smith-SUCSEED
Aga Khan University Hospital
Amsterdam Institute of Global
Health
Aspen
Carnegie Corporation
CIFF
Comic Relief
Concern WorldWide
Delphi
Department for International
Development ( DFID) through
Population Council
ESEI
ESRC
Subtotal restricted grants
New grants
receivable/
adjustments/
exchange
differences
Receipts/
adjustments/
exchange
differences
Expenditure/
Income
2014
US$
C
2014
US$
D
Grant
receivable
31 December
2013
US$
A
Deferred grants
31 December
2013
US$
B
2014
US$
E
Grant
receivable
31 December
2014
US$
F=A+C-D
Deferred grants
31 December
2014
US$
G=B+C-E
22,473
18,795
(6)
4,201
6
334,655
(5)
22,479
292,327
9,393
109,056
4,196
42,328
9,397
225,599
-
273,442
160,000
30,743
861,040
44,583
391,433
170,744
555,669
1,517,691
65,890
-
55,356
2,619,357
1,251,351
(55,704)
(65,890)
-
284,100
30,000
801,600
201,502
(65,890)
32,265
427,719
53,888
636,815
70
807,151
-
44,698
130,000
1,848,500
1,251,351
603,834
12,318
19,070
116,856
2,538,211
1,251,281
654,836
-
80,816
259,225
140,943
101,014
139,368
72,325
242,927
6,676
174,307
15,711
15,218
206,250
136,330
62,232
149,436
243,514
132,401
137,691
3,038
16,769
________
________
________
________
________
________
________
1,892,060
3,018,329
4,388,729
1,813,012
2,443,707
4,467,777
4,963,351
________
________
________
________
________
________
________
21
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
16
GRANTS RECEIVABLE/DEFERRED GRANTS (Continued)
Donor
Restricted grants
Fidelity Charitable Gift program
Futures Institute
Goal Kenya
Guttmacher Institute
Helpage
Hindu Religious- Community
Development
INDEPTH H3A
INDEPTH - Network
Institute of Developent Studies
(IDS)
International Development
Research Center (IDRC)
International Food Policy
Research Institute (IFPRI)
IOM
IPAS
IPPF
IRC
Johns Hopkins Bloomberg School
of Public Health
Subtotal restricted grants
Grant
receivable
31 December
2013
US$
A
Deferred grants
31 December
2013
US$
B
New grants
receivable/
adjustments/
exchange
differences
2014
US$
C
173,000
80,965
3,310
230,411
346,000
45,505
1,160
230,411
8,250
(44,068)
168,169
-
173,000
4,125
36,897
115,555
60,951
173,424
8,250
1,437
4,967
128,154
4,125
55,924
169,460
172,576
164,362
102,257
17,499
3,490
30,756
813
3,501
9,618
1
6,470
9,618
212
30,757
9,618
814
14,530
3,279
3,500
-
155,809
33,891
65,191
155,768
64,418
65,232
34,664
218,494
888,242
4,343,643
1,944,102
961,479
2,618,035
4,270,406
69,474
15,929
10,638
-
9,169
6,790
22,012
-
(3,168)
96,752
159,958
21,259
12,903
15,929
87,390
40,532
785
6,001
6,790
123,435
48,615
21,135
53,403
20,000
119,426
20,474
(4,671)
111,343
124
2,000
________
________
________
2,000
________
________
________
________
981,019
________
1,614,749
________
4,829,106
________
2,666,237
________
1,589,294
________
3,143,888
________
4,854,561
________
22
Receipts/
adjustments/
exchange
differences
2014
US$
D
Expenditure/
income
2014
US$
E
Grant
receivable
31 December
2014
US$
F=A+C-D
Deferred grants
31 December
2014
US$
G=B+C-E
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
16
GRANTS RECEIVABLE/ DEFERRED GRANTS (Continued)
Donor
Restricted grants
Jubilee Education Fund
London School of Tropical
Medicine
MacArthur
National Academy of Sciences
Netherlands Interdisciplinary
Demographic Institute (NIDI)
New Venture Fund
NIH - thro University of
Maryland
PEAS
Population Council
Population Reference Bureau
Private Partnership in
Education
Rockerfellor
Save the Children
Subtotal restricted grants
Grant
receivable
31 December
2013
US$
A
Deferred grants
31 December
2013
US$
B
New grants
receivable/
adjustments/
exchange
differences
2014
US$
C
-
-
2,796
2,796
2,796
-
-
107,543
394,348
54,752
85,743
77,607
54,752
(4,378)
513,423
-
(4,378)
782,771
54,752
73,239
341,036
49,027
107,543
125,000
-
8,126
249,994
5,725
48,500
-
13,926
-
133,294
278,811
99,872
278,811
76,873
66,241
81,922
-
70,347
212,570
55,810
6,556
44,548
22,336
33
108,926
81,149
(33)
(44,179)
33,476
6,523
369
929
5,740
64,747
81,149
22,334
-
80,220
16,596
-
264,560
10,238
________
253,333
10,176
________
171,372
(10,176)
________
135,000
62
________
15,570
36,652
________
264,560
36,372
________
237,763
134,720
________
986,855
________
626,832
________
1,122,079
________
1,390,054
________
732,850
________
718,880
________
1,016,061
________
23
Receipts/
adjustments/
exchange
differences
2014
US$
D
Expenditure/
income
2014
US$
E
Grant
receivable Deferred grants
31 December
31 December
2014
2014
US$
US$
F=A+C-D
G=B+C-E
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
16
GRANTS RECEIVABLE/ DEFERRED GRANTS (Continued)
Donor
Restricted grants
Swedish International
Development Cooperation
Agency (SIDA)
The Bill & Melinda Gates
Foundation
The David & Lucile Packard
Foundation
The Ford Foundation
The University of
Witwatersrand
The William & Flora Hewlett
Foundation
Umea
UNAIDS
University of California Berkeley
USAID through Management
Sciences for Health
USAID through Pathfinder
International
Subtotal restricted grants
Grant
receivable
31 December
2013
US$
A
Deferred grants
31 December
2013
US$
B
New grants
receivable/
adjustments/
exchange
differences
2014
US$
C
3,464,999
3,422,607
(191,745)
2,978,855
1,832,958
294,399
1,397,904
383,814
593,676
614
384,428
594,290
-
-
550,000
-
1,294,873
315,006
50,000
-
600,000
-
638,586
315,004
-
706,287
2
13,502
-
86,126
68,321
-
31,307
86,126
680,000
5,000
976,974
1,233
-
49,770
(2)
-
429,770
(2)
5,000
547,959
1,231
-
300,000
-
478,785
-
10,900
(1)
1
10,901
-
-
-
744,386
747,849
-
42,568
49,856
701,818
697,993
153,430
________
144,505
________
121,884
________
190,111
________
177,302
________
85,203
________
89,087
________
6,006,031
________
7,496,722
________
116,648
________
4,709,952
________
4,157,186
________
1,412,727
________
3,456,184
________
24
Receipts/
adjustments/
exchange
differences
2014
US$
D
Expenditure/
income
2014
US$
E
Grant
receivable
31 December
2014
US$
F=A+C-D
Deferred grants
31 December
2014
US$
G=B+C-E
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
16
GRANTS RECEIVABLE/ DEFERRED GRANTS (Continued)
Grant
receivable
31 December
2013
US$
A
Deferred grants
31 December
2013
US$
B
New grants
receivable/
adjustments/
exchange
differences
2014
US$
C
1,847,359
1,261,264
903,826
1,110,837
1,428,060
1,640,348
737,030
319,958
_________
101,841
_________
42,994
_________
99,060
_________
112,035
_________
263,892
_________
32,800
_________
Sub total
2,167,317
_________
1,363,105
_________
946,820
_________
1,209,897
_________
1,540,095
_________
1,904,240
_________
769,830
_________
Total restricted grants
12,033,282
_________
14,119,737
_________
11,403,382
_________
11,789,152
_________
10,463,132
_________
11,647,512
_________
15,059,987
_________
800,000
1,319,444
-
800,000
833,333
-
486,111
-
522,249
-
-
243,613
-
278,636
_________
(67,970)
_________
250,000
44,025
_________
250,000
44,025
_________
38,462
_________
_________
211,538
(23,945)
_________
800,000
_________
1,773,723
_________
294,025
_________
1,094,025
_________
1,115,408
_________
_________
952,340
_________
12,833,282
=========
15,893,460
=========
11,697,407
=========
12,883,177
=========
11,578,540
=========
11,647,512
=========
16,012,327
=========
Donor
Restricted grants
Wellcome Trust
World Health Organization
(WHO)
Unrestricted grants
The William & Flora Hewlett
Foundation
Swedish International
Development Cooperation
Agency (SIDA)
Fidelity Charitable Gift
program
Unrestricted Funds Support
Total unrestricted grants
Grand Total
25
Receipts/
adjustments/
exchange
differences
2014
US$
D
Expenditure/
income
2014
US$
E
Grant
receivable
31 December
2014
US$
F=A+C-D
Deferred grants
31 December
2014
US$
G=B+C-E
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
17
PROGRAM RELATED INVESTMENT LOAN
APHRC entered into a credit agreement with The David and Lucile Packard Foundation to be advanced a term
loan in the principal amount of US$ 4,000,000 to be used solely for the construction of phase one of the
Kitisuru project. The original term of the loan was sixty months. In the current year it was amended to sixty
months. Interest is payable at a simple rate of 2%. At 31 December 2014, the balances outstanding on this loan
were:
Present value of
minimum payments
2014
2013
US$
US$
Minimum payments
2014
2013
US$
US$
No later than 1 year
Later than 1 year and no later than 5 years
Less future finance charges
Present value of minimum lease payments
453,333
449,263
_______
470,111
902,596
________
444,444
444,448
_______
444,444
888,892
________
902,596
(13,704)
_______
1,372,707
(39,371)
________
888,892
_______
1,333,336
________
888,892
=======
1,333,336
========
888,892
=======
1,333,336
========
2014
US$
2013
US$
Analysis by cash flows:
Outstanding loan as at 1 January
Funds received during the year
1,333,336
_________
2,222,224
_________
Total funds outstanding
Repaid during the year
1,333,336
444,444
_________
2,222,224
888,888
_________
Outstanding as at 31 December
888,892
=========
1,333,336
=========
Repayable within 12 months
444,444
=========
444,444
=========
Repayable after 12 months
444,448
=========
888,892
========
26
AFRICAN POPULATION AND HEALTH RESEARCH CENTER (APHRC)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
18
RECONCILIATION OF CAPITAL FUND TO NET BOOK VALUE
2014
US$
2013
US$
4,870,427
4,583,485
888,892
1,333,336
2,687,046
-
(22,221)
(33,333)
Less: accumulated depreciation b/f
_________
(55,557)
_________
NBV 31 December 2014 (Note 9)
8,424,144
=========
5,827,931
=========
77,500
=========
========
Capital fund 31 December 2014
Add: portion of building purchased with unpaid loan
Add: revaluation amount net transfer of excess
depreciation on revaluation
Less: current year depreciation on portion of building
purchased with unpaid loan
19
CONTIGENT LIABILITIES
Pending lawsuits
Pending lawsuits relate to civil suits lodged against the Center by a former employee. The board of directors
are of the opinion that the pending case is unlikely to result in any liability to the center.
20
LEGAL FORM
African Population and Health Research Center (APHRC) is registered under section 366 of the Companies
Act (Cap 486) as a branch of African Population and Health Research Center Inc., a company incorporated in
the United States of America as a not-for-profit corporation.
On 14 June 2001, the Kenya Government and APHRC Inc. entered into a co-operation agreement, which
granted APHRC privileges and immunities under Section 11 of the Privileges and Immunities Act (Cap 179).
This includes exemption from all taxes, duties and Value Added Tax (VAT). In addition, certain categories of
staff are exempted from income tax.
APHRC enjoys tax exemption from the United States Internal Revenue Service under Section 501(c) 3 of the
US tax code.
21
CURRENCY
The financial statements are presented in United States Dollars (US$).
27