Contents
Page Auditor's Report
1
Balance Sheets
2
Statements of Operations
3
Statements of Changes in Net Assets
4
Statements of Cash Flows
5-6
Notes to Financial Statements
7 - 14
Auditor's Report To the Amutah Members Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) We have audited the accompanying Balance Sheets of Shalva - Association to Relieve the Handicapped Child and Family registered Amutah (hereafter "the Amutah") as at December 31, 2013 and 2014 and the related Statements of Operations, Changes in Net Assets and Cash Flows for each of the years then ended. These financial statements are the responsibility of the Amutah's Board of Directors and management. Our responsibility is to .express an opinion on these financial statements based on our audit We conducted our audit in accordance with generally accepted auditing standards in Israel, including those prescribed under the Auditors' Regulations (Auditor's Mode of Performance) - 1973. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes assessing the accounting principles used and significant estimates made by the Board of Directors and management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Amutah as of December 31, 2013 and 2014, and the results of its operations and changes in net assets and cash flows for each of the years then ended in accordance with generally accepted accounting principles in Israel (Israeli GAAP).
Itzichescu David CPA (Isr.)
Jerusalem; May 18, 2015
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Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Balance Sheets As at December 31 2014 2013 NIS
Note Current Assets Cash and Cash Equivalents Marketable Securities Debtors and Debit Balances Fixed Assets Building,Equipment and Vehicles Cash and investments earmarked for investment in fixed assets
*
*
3 4 5
8,562,515 1,315,683 1,408,658 11,286,856
908,053 8,634,709 1,237,318 10,780,080
6
125,483,351 39,558,542 165,041,893
92,482,963 38,148,096 130,631,059
176,328,749
141,411,139
*
Current Liabilities Creditors and Credit Balances
7
1,339,421
936,558
Long-Term Liabilities Provision for Severance pay
8
1,433,236
1,338,366
14,199 125,483,351 8,500,000
5,156 92,482,963 8,500,000
39,558,542 173,556,092
38,148,096 139,136,215
176,328,749
141,411,139
2d
Net Assets Unrestricted Funds From Operations Used for Operations Used for Fixed Assets Funds earmarked for other purposes Restricted Temporarily Restricted Net Assets
The accompanying notes constitute an integral part of the financial statements.
May 18 2015 Date of Financial Statement Authorization
_____________ P. Mendelbaum Board Member -2-
_____________ I. Sheinberger Board Member
Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Statements of Operations
For the Year ended December 31 2014 2013 Income Contributions Grants Participation Fees Valueof services provided by volunteers
9 10 11
Cost of Operations
12
Net Income from Operations 13 14
Administrative and General Expenses Information and raising donations
Net Deficit before Financial Expenses
14,754,278 5,601,307 567,140 3,900,000 24,822,725
11,691,286 5,908,599 644,688 3,788,000 22,032,573
22,760,140
20,501,824
2,062,585
1,530,749
1,800,919 1,396,746 3,197,665
1,669,182 966,657 2,635,839
(1,135,080)
(1,105,090)
451,112
(83,574)
(683,968)
(1,188,664)
Financial Income (Expenses), Net Deficit after finance Expenses other
--
Deficit before realization of fixed asset
(683,968)
Income from realization of fixed asset
--
Deficit for the year
(683,968)
The accompanying notes constitute an integral part of the financial statements.
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(103,988) (1,292,652) 7,198 (1,285,454)
Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Statements of Changes in Net Assets
Restricted
Unrestricted for Operations
Balance at January 1, 2013 Incomes for Building Financing to Preserve Asset Value Deficit for the year Restricted Amounts Released: Utilized for Fixed Assets Unrestricted Amounts Transferred: Utilized for Fixed Assets From Disposal of Fixed Assets To Cover Depreciation Expenses
391,719 --(1,285,454)
8,500,000
32,541,582
--
(32,541,582)
(119,708) 27,690 990,909
119,708 (27,690) (990,909)
--
--
--
--
5,156
92,482,963
--
--
----
55,706,122 14,544,358 439,198 --
8,500,000
38,148,096
-380,000 ---
--
33,996,803
---
727,042 --
33,313,399
--
(33,313,399)
(320,193) 1,013,204
320,193 (1,013,204)
---
---
9,043
33,000,388
--
14,199
125,483,351
-(683,968) --
Total Changes for the Year Balance at December 31, 2014
60,840,272
Temporarily
----
Balance at December 31, 2013 Additions during 2014: Incomes for Building *) A donation for acquiring a vehicle Financing to Preserve Asset Value Deficit for the year Restricted Amounts Released: Utilized for Fixed Assets Unrestricted Amounts Transferred: Utilized for Fixed Assets To Cover Depreciation Expenses
earmarked for for other Fixed Assets purposes NIS
8,500,000
1,410,446 39,558,542
*) The Society received a donation from abroad in 2014 for the acquisition of a commercial vehicle to transport invalids and those with special needs.
The accompanying notes constitute an integral part of the financial statements. -4-
Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Statements of Cash Flows
For the Year ended December 31 2014 2013 NIS Cash Flow from Operating Activities Deficit for the year Adjustments Required to Reflect net Cash flows Appendix from Operating Activities (a)
(683,968)
(1,285,454)
2,119,754
1,091,403
Net Cash Flow Utilized for Operating Activities
1,435,786
(194,051)
Cash Flow from Investing Activities Investment in Fixed Assets Revenue From Disposal of Fixed Assets Deposit (withdrawals) Deposits secured Purchase Long-Term Securities Revenue from Long-Term Securities
(34,013,592) -(7,722,556) (6,660,408) 19,511,387
(32,661,290) 34,888 6,876,574 (18,545,917) 28,102,156
Net Cash Flow Utilized for Investing Activities
(28,885,169)
(16,193,589)
Cash Flow from Financing Activities Incomes Restricted Temporarily for Building A donation earmarked for acquiring a vehicle Financing for Temporarily Restricted Assets
33,996,803 380,000 727,042
14,544,358 -439,198
Net Cash Flow from Financing Activities
35,103,845
14,983,556
7,654,462
(1,404,084)
908,053
2,312,137
8,562,515
908,053
Increase (Reduction) in Cash Balances Cash Balance at the Beginning of the Year Cash Balance at the End of the Year
The accompanying notes constitute an integral part of the financial statements .
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Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Statements of Cash Flows
For the Year ended December 31 2014 2013 NIS
(a) Adjustments Required to Reflect net Cash Flows from Operating Activities Expenses (Income) not involving Cash Flows Depreciation and Amortization Income from realization of fixed asset ExchangeRate Differentials ondeposits secured Accumulated Foreign exchange differentials on listed securities Increase In Severance Fund
Changes in Operating Assets and Liabilities Increase in Debtors and Debit Balances Increase (Reduction) in Creditors and Credit Balances
1,013,204 -971,454 (191,297) 94,870 1,888,231
990,909 (7,198) 373,238 (151,657) 52,525 1,257,817
(171,340) 402,863
(150,855) (15,559)
231,523
(166,414)
2,119,754
1,091,403
The accompanying notes constitute an integral part of the financial statements .
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Shalva -Association to Relieve the Handicapped Child and Family (registered Amutah) Notes to Financial statements Note 1 - General The Amutah was incorporated on 10 Sivan 5750 (May 28, 1990). Its registration number is 58-017-398-7. The Amutah is recognized by the Tax Authorities as a Charitable Institution for donors tax benefit purposes. The recognition has been extended until December 31, 2018.
"Shalva" Organization's vision - because the responsibility for children with special needs should not fall only on the shoulders of their families, but they need and are entitled to support from the community. The Society, in its Centers, serves hundreds of children's from birth until adulthood, in unique programs and therapies around the clock, seven days a week, during every day of the week. While the children enjoy and acquire skills and independence, this enables thousands of the members of their families to have a normal and healthy way of life. The Society's activities - providing skills required in life and cognitive, motoric and social abilities for children with special needs, and integrating them into society. Adapting the family unit to the realities of life with a special child at home, while aspiring to enable a normal way of life for the whole family. Utilizing the professional knowledge accumulated in Shalva by cooperating with all the bodies interested in this subject. Strengthening the values of tolerance and integration into Israeli society while fighting against negative attitudes regarding this population. All the Society's programs are designed in such a way that every program has a range of therapies which include: occupational therapy, physical stimulus, physiotherapy, hydrotherapy, therapy through animals, musical therapy, clinical communications and a range of communications therapy required to advance the child. In addition at the same time, programs to support the families. The Society operates the following programs: a. Mother and I – a program for early involvement to advance the infant and support the parents and wider family. The object of the program is to give the child in his early stages the therapies required for his development and to provide the parents who experience the initial shock and difficulties in bringing up a child with special needs, the tools to do so and support. b. A daily babies home – a special educational kindergarten that combines various therapies for small children with Downs syndrome. c. Combined kindergarten – kindergartens for children aged 3 to 6 with special emphasis being given on advancing them and integrating them into society. d. Afternoon program – whose purpose is to create a long study day and to provide abilities to be independent through daily activities and therapies. Children join the program in the afternoon straight from school and are transported to their homes at 6.00 p.m. after supper. e. Short vacation - a program enabling children in the afternoon program to remain in Shalva's residences to sleep one night a week, and once a month for a whole weekend. f. Evening program for adults – to which graduates of Shalva come for social enjoyments and activities every evening. g.Summer - during the summer vacation Shalva offers a daily summer camp and a vacation for a week to a summer camp at a vacation site. h. Explanations and information – Shalva provides explanations and information in a wide range of activities and interests, including music, art, sport and communications, in order to assist in the integration of the children with special needs into society and thus to create a more tolerant and accepting society. -7-
Shalva -Association to Relieve the Handicapped Child and Family (registered Amutah) Notes to Financial statements i. Study and Research Center – innovative researches which include methodologies and methods to be used in education and rehabilitation. These researches are taught by doctors, lecturers, scientists and educators from universities and other advanced education institutions.
Shalva serves the whole Israeli population without any distinction between religion, race or gender. The New Center and the financial investment: the new Shalva Center in Jerusalem is in advanced stages of construction. The Center will be the largest of its kind in Israel and serve thousands of infants, children and youth each year and their families. The Center will have innovative facilities for treatment which will provide a suitable response for the children's needs including: a half Olympic -sized swimming pool adapted for people with limitations, and a treatment pool, sports hall, a unique fitness room for invalids, and an auditorium and cafeteria to be run by Shalva's graduates. The Center will provide tens of thousands of sleeping accommodation for children each year. A stay over in the new Center for children and their families will be free, as has been the case since Shalva's inception. The cost of constructing the new Center will be about NIS 220 million, including construction and equipping the Center. Note 2 - Accounting Principles a. The effect of changes in the general purchasing power of the Israeli currency The financial statements have been prepared according to Accounting standard no, 5 of I.A.S.I. (which replace exposure draft 69 of the Israeli institute certified Public Accountants) in the matters accounting principle as applied to Not-For-Profit Organization. b. Effect of reduction of purchasing power The financial statements hevw been prepared in nominal values and standard number 12 of IASI was not applied. c. Basis of recognition The financial statements have been prepared on the accrual basis . d. Net assets The Amutah's funds have been presented as net assets divided into two major categories : 1. Unrestricted net assets The component of the institution 's net assets free of either temporary or permanent restriction such as could be imposed by contributors of donations or grants . The surplus for 2006 has been allocated by the board of the Amutah to a fund for the development and enlargement of program for disabled children in the new center. 2. Temporarily restricted net assets The component of the institution 's net assets resulting from contributions , grants or other inflow of assets, the utilization of which has been restricted by the donors specifications. Foreign currency donations earmarked for building are held in short -term deposits. Financial income from said deposits has been recorded as financing to preserve asset value . -8-
Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Notes to Financial statements
Note 2 - Accounting Principles - continued e. Fixed assets Fixed assets are presented at cost. Depreciation has been calculated on the straight line method at the following annual rates : % 4 Building 10 - 33 Electronic equipment 7 - 15 Equipment and furnishings 15 Motor vehicles f. Exchange rates and linkage Foreign currency balances are presented according to the representative rates : published by the Bank of Israel : NIS 3.889= $ 1 - 31.12.14 NIS 3.471= $ 1 - 31.12.13 The exchange rate differences are included in the financial income or expense.
As at December 31 2014 2013 NIS Note 3 - Cash and Cash Equivalents Bank Accounts and Cash Bank Deposit in U.S. Dollars Short-term Investments in NIS
819,668 157,624 7,585,223
74,912 140 833,001
8,562,515
908,053
29,739,383 2,476,129 5,398,573 3,260,140 --
15,991,628 3,463,355 17,071,029 8,624,693 1,632,100
(39,558,542) 1,315,683
(38,148,096) 8,634,709
Note 4 - Marketable Securities Cash and Deposits designed for building Trust Funds Debentures Deposits in u.s. Dollar Deposits incanadian Dollar Less: Cash and investments earmarked for investing in fixed assets
Bank guarantees totalling 179,746 NIS were given to third parties to ensure that outstanding obligations will be cleared in the future
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Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Notes to Financial statements
As at December 31 2014 2013 NIS Note 5 - Debtors and Debit Balances Accrued Income Credit Card Companies for Contributions Prepaid Expenses Others
Note 6 - Fixed Assets
Cost as at January 1 Acquisitions during Year
734,881 158,231 76,131 439,415 1,408,658
Equipment Furnishings *)Building and Computers
Motor Vehicles
686,471 95,149 67,002 388,696 1,237,318
Total
102,033,546 33,315,674 135,349,220
3,344,505 156,397 3,500,902
795,573 541,521 1,337,094
106,173,624 34,013,592 140,187,216
10,003,529 683,523 10,687,052
3,032,419 251,901 3,284,320
654,713 77,780 732,493
13,690,661 1,013,204 14,703,865
Depreciated Value as at December 31, 2012
124,662,168
216,582
604,601
125,483,351
Depreciated Value as at December 31, 2011
92,030,017
312,086
140,860
92,482,963
as at December 31 Accumulated Depreciation as at January 1 Provision for Year as at December 31
*) The building is on a plot leased until 2084. Buildings include following : The building of the Amutah on Even Danan Str . 6 Jerusalem, as well as the land is held on a leasehold till 2084. The building in Bait vagan , Jerusalem, as well as the land was allocated by the City of Jerusalem (bloc 30166 partition 264 plot 59). The Investment in the new building amounts to 116,643,317 NIS at 31/12/2014.
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Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Notes to Financial statements
As at December 31 2014 2013 NIS Note 7 - Creditors and Credit Balances Suppliers Workers and Institutions for salaries Post-dated Checks Payable Others
875,518 286,439 79,557 97,907 1,339,421
491,465 256,691 82,049 106,353 936,558
3,021,318
2,637,683
(1,588,082) 1,433,236
(1,299,317) 1,338,366
Note 8 - Provision for Severance pay Amutah owing to the Severance Fund Less: Reserve in Severance Fund
For the Year ended December 31 2014 2013 NIS Note 9 - Contributions
American friends of shalva British friends of shalva Canadian friends of shalva Others
8,421,392 928,626 1,522,512 3,881,748 14,754,278
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6,364,200 -1,632,100 3,694,986 11,691,286
Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Notes to Financial statements
For the Year ended December 31 2014 2013 NIS Note 10 - Grants Ministry of Labor and Welfare Ministry of Education Ministry of Health Others
5,087,047 371,908 42,000 100,352 5,601,307
5,694,382 -114,000 100,217 5,908,599
3,900,000
3,788,000
Note 11 - Valueof services provided by volunteers Value of service volunteers
Since the Amutah (Non profit organisation) has many volunteers and their activities are an important tier of the services that the amutah provides for the general public the amutah recorded the value of the volunteers work in its financial reports according to the tariff of volunteers’ hourly work as determined by the minimum wage. The value of the volunteers’ work has no affect on results of the activities as expression has been given to it both in the framework of the activities cycle and the activities costs.
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Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Notes to Financial statements
For the Year ended December 31 2014 2013 NIS Note 12 - Current Expenses Salaries and Salary Related Expenses Perishable Supplies Food and Kitchen activity and advocacy throughout country and the world Maintenance Travel Vehicle Maintenance Volunteers Medical Treatment Pool Research and Seminars Valueofservicesprovidedbyvolunteers Office and Miscellaneous Insurance Depreciation
11,203,307 253,784 949,401 1,440,847 2,112,280 283,912 185,353 927,854 77,258 28,109 122,594 3,900,000 266,225 94,410 914,806 22,760,140
9,604,817 253,254 885,507 1,592,577 1,835,313 264,224 127,534 760,232 88,805 30,023 8,175 3,788,000 267,944 73,244 922,175 20,501,824
1,077,370 45,695 73,437 106,437 1,316 398,266 98,398 1,800,919
979,075 2,273 196,737 131,664 1,291 289,408 68,734 1,669,182
404,362 164,637 827,747 1,396,746
401,851 92,561 472,245 966,657
Note 13 - Administrative and General Expenses Salaries and Salary Related Expenses Travel and transportation Communication Professional Fees Statutory Fees Office and Miscellaneous Depreciation
Note 14 - Information and raising donations Raising funds abroad Raising funds in Israel Fundraising Events
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Shalva - Association to Relieve the Handicapped Child and Family (registered Amutah) Notes to Financial statements Note 15-The Allocation is According To Types Of Activity
Afternoon programs and summer camps Mother and I program Daily Rehabilitation Center Study and Research Center Information Department Therapeutic Kindergarten Gush Etzion activities branch
Salaries 2,759,750 1,287,475 2,536,347 296,936 1,388,647 689,441 526,828 9,485,424
Other expenses 1,849,009 72,696 179,028 28,109 657,239 114,308 271,708 3,172,097
Loading operations Total expenses 2,939,321 7,548,080 1,371,248 2,731,419 2,701,381 5,416,756 316,257 641,302 1,479,003 3,524,889 734,301 1,538,050 561,108 1,359,644 10,102,619 22,760,140
The Society's resources are allotted by it to various activities detailed in the financial statements: as these activities are complex and combined with each other, a sorting and classification of the various activities are estimated by the Society's Management.
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