Explanation financial figures 2013
The Board of Trustees (BoT) approved the financial statements of ETC Foundation on 16th May 2014. The BoT took note of a preliminary assessment by Dubois & Co., chartered accountants, who expressed their unqualified opinion on the financial statement and the proceedings of a meeting between the accountant and the finance committee of the BoT
This report refers to the consolidated financial statement of ETC Foundation, which comprises of the financial statements of ETC International BV and ETC Nederland BV. ETC Foundation is the legal owner of ETC International BV and ETC Nederland BV. From 2012 on there are no other subsidiaries.
The image of ETC’s financial situation in the 2013 financial report is strongly influenced by the effects of a major reorganisation. This reorganisation had become necessary due to continued negative financial results in 2011 and 2012 and projections for 2013 and beyond. These projections point at a structural lower turn-over of ETC, associated with the loss of subsidy from the Dutch Ministry of Foreign Affairs (40% of the operating income in previous years), and an accumulation of trends in the sector.
Profit and loss account
The operating result of ETC Foundation amounted to − € 118.000. This is a significant improvement compared to the financial loss in 2012 of € 280.000, which necessitated the aforementioned major reorganisation at a cost of € 313.000, (for which already a financial provision had been taken in 2012).
By and large the complex of measures taken in the first part of 2013 have had the desired effects, although a break-even was aimed for. As planned, the cost of overheads and support costs were reduced significantly (34% compared with the previous year). The income realized reduced with 36%, which was to a major extent as projected.
The consolidated balance sheet of ETC Foundation reveals a reserve of € 1,152,000 at the end of 2013, of which 81% constitutes of fixed assets.
Compared with the previous year, ETC Foundation’s capital decreased by € 164,000. This is a result of the combined effect of the financial result for the year plus the release of the revaluation reserve of the building.
The liquidity ratio (current assets divided by current liabilities plus provisions) in 2013 stood at 105%, 3% less than in the previous year.
Please click here for the consolidated balance sheet and consolidated statement of income and exependitures for the year 2012.