THE GHANA CENTER FOR DEMOCRA TIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STA TEMENTS 31 DECEMBER 2016 1 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) REPORTS AND FINANCIAL STATEMENTS INDEX Page Corporate Information 2 List of Acronyms 3 Report of the Board of Governors 5 Independent Auditor's Report 7 Statement of Financial Performance 10 Statement of Financial Position 11 Statement of Changes in Net Assets 12 Cash Flow Statement 13 Notes forming part of the Financial Statement 14 2 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) CORPORATE INFORMATION BOARD OF GOVERNORS Kwasi Abeasi (Chairman) Emmanuel Gyimah-Boadi (Executive Director) William Asiedu Yeboah (Treasurer) Baffour Agyeman-Duah Audrey Gadzekpo Henry Kwasi Prempeh Justice Striggner-Scott Seth Kwasi Dei REGISTERED OFFICE House No.95 Nortei Ababio Loop Residential Area Legon - Accra SOLICITOR J. Opoku Boateng 124/3 Mary Dee House Cantonments, Accra AUDITOR KPMG Chartered Accountants 13 Yiyiwa Drive, Abelenkpe Post Office Box GP 242 Accra BANKERS First Atlantic Bank Stanbic Bank Ghana Limited Standard Chartered Bank (Ghana) Limited Zenith Bank Ghana Limited 3 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) LIST OF ACRONYMS AB - Afrobarometer AU - African Union APRM - Africa Peer Review Mechanism CDP - Consortium for Development Partnership CHRAJ - Commission for Human Rights and Administrative Justice CI - Co-existence International CIDA - Canadian International Development Agency CALRA - Commonwealth Association of Legal Reform Agencies CSO - Civil Society Organisations CODEO - Coalition of Domestic Election Observers CWM - College of William and Mary CSVR - Center for the Study of Violence and Reconciliation DANIDA - Danish International Development Agency DCP - Democracy Coalition Project DDFA - David de Ferrati Associates Df[D - Department for International Development, EPIC - Electoral Processes and Information Collection ESID - Effective States and Inclusion Development FAO - Food and Agriculture Organisation FEI - French Experts International FNF - Fredriech Naumann Foundation, Germany GAF - Ghana Armed Forces GDI - German Democratic Institute GAIT - Government Accountability Improves Trust GAPVOD - Ghana Association of Private Voluntary Organisations in Development GIl - Ghana Integrity Initiative GJA - Ghana Journalists' Association GOGIG Ghana Oil and Gas for Inclusive Growth GLFSF - Ghana Land and Forestry Support Facility G-RAP - Ghana Research and Advocacy Programme GTZ - German Technical Co-operation IAA - Institute of African Affairs IDASA - Institute for Democracy in South Africa 4 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) LIST OF ACRONYMS - CONT'D ICTJ - International Centre for Transitional Justice IDEA - International Institute for Democracy and Electoral Assistance IDEG - Institute for Democratic Governance IDEP - Institute for Economic Development and Planning, IFES - International Federation of Electoral Systems, MOLG - Ministry of Local Government MSI - Management Systems International MSU - Michigan State University NCCE - National Commission on Civic Education NDI - National Democratic Institute NED - National Economic Dialogue NEPAD - New Partnership for African Development NGP - National Governance Programme NLC - National Labour Commission NMC - National Media Commission NWU - North Western University NRC - National Reconciliation Commission ODI - Overseas Development Institute OSIWA - Open Society Initiative for West Africa PEF - Private Enterprise Foundation PAS - Programme of African Studies RAVI - Rights and Voice Initiative RAO's - Research and Advocacy Organisations RTD - Round Table Discussions SFO - Serious Fraud Office SIDA - Swedish International Development Agency UNECA - United Nations Economic Commission UNDP - United Nations Development Programme UNICEF-DLT - UNICEF District League Table USAID - United States Agency for International Development USIS - United States Information Service WANT - West African Network of Transitional Justice WFD - Westminster Foundation for Democracy DED - German Development Services UCLA - University of California, Los Angeles 5 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE BOARD OF GOVERNORS FOR THE YEAR ENDED 31 DECEMBER 2016 The board of governors present the audited financial statements of The Ghana Center for Democratic Development (the Center) for the year ended 31 December 2016. BOARD OF GOVERNORS' RESPONSIBILITY FOR THE FINANCIAL STATEMENT The board of governors are responsible for the preparation of the financial statements that give a true and fair view of the Ghana Center for Democratic Development comprising the statement of financial position as at 3 1 December 2016, the statement of financial performance, the statement of changes in net assets and cash flows for the year then ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes in accordance with the International Public Sector Accounting Standards (IPSAS) and in the manner required by the Companies Act, 1963 (Act 179). In addition, the board of governors are responsible for the preparation of the report of the board of governors. The board of governors are also responsible for such internal control as the board of governors deem it necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and for maintaining adequate accounting records and an effective system of risk management. The board of governors have made an assessment of the ability of the entity to continue as a going concern and have no reason to believe the center will not be a going concern in the year ahead. The auditor is responsible for reporting on whether the financial statements give a true and fair view in accordance with the applicable financial reporting framework. The principal accounting policies applied in the preparation of these financial statements are set out in the explanatory notes on pages 14 to 29. The policies have been consistently applied to all the years presented, unless otherwise stated FINANCIAL STATEMENTS The financial results of the center for the year ended 31 December 2016 is set out in the accompanying financial statements. NATURE OF BUSINESS The Ghana Center for Democratic Development (The Center) is registered as a company limited by guarantee. The Center is donor funded and its principal objectives are: * To research on economic, social and political development in Ghana and Africa; * To disseminate findings on such research; * To promote democratic development in Ghana and Africa. There was no change in the nature of business of the organisation for the year under review. STATE OF AFFAIRS OF THE CENTER The governors consider the state of affairs of the Center to be satisfactory. Projects and activities undertaken during the year under review are outlined in the relevant sections of this document. 6 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A CENTER LIMITED BY GUARANTEE) REPORT OF THE BOARD OF GOVERNORS FOR THE YEAR ENDED 31 DECEMBER 2016 (CONT'D) APPROVAL OF THE FINANCIAL STATEMENTS The financial statements of the center, as indicated above, were approved by the board of governors on . . 2017 and signed on their behalf by: GVE OE R 7 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT ., (A COMPANY LIMITED BY GUARANTEE) Report on the financial statements We have audited the financial statements of the Ghana Center for Democratic Development ("the Center"), which comprise the statement of financial position at 31 December 2016, and the statement of financial performance, changes in net assets and cash flows for the year then ended, and the notes to the financial statements which include a summary of significant accounting policies and other explanatory notes, as set out on pages 10 to 24. In our opinion, these financial statements give a true and fair view of the financial position of the Ghana Center for Democratic Development at 31 December 2016, and of its financial performance, changes in net assets and cash flows for the year then ended in accordance with International Public Sector Accounting Standards (IPSAS) and in the manner required by the Companies Act, 1963 (Act 179). Basis for Opinion We conducted our audit in accordance with International Public Sector Accounting Standards (IPSAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Center in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information The board of governors are responsible for the other information. The other information comprises the information included in the board of governors' report but does not include the financial statements 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 is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Governors for the Financial Statements The board of governors are responsible for the preparation of financial statements that give a true and fair view in accordance with IPSAS and in the manner required by the Companies Act, 1963 (Act 179), and for such internal control as the board of governors deem it necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the board of governors are responsible for assessing the Center's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the - going concern basis of accounting unless the board of governors either intend to liquidate the Center or to cease operations, or have no realistic alternative but to do so. N.A. Dodoo E.O. Asiedu N.D. Hadley KPMG, a partnership established under Ghanaian law, is a member of the A.K. Sarpong D.S. Adoteye A.0. Akoto KPMG network of independent member firms affiliated with KPMG N.A. Ayivor K. Frempong-Kore F N. Dennis International Coorperative ("KPMG International"), a Swiss entity. J. Coleman 8 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (CONT'D) (A COMPANY LIMITED BY GUARANTEE) The board of governors are responsible for overseeing the Center'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 includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISA, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify 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 error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, orthe 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 Center's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of the board of governors' 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 significant doubt on the Center'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 Center 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 the board of governors 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. N.A. Dodoo E.O. Asiedu N.D. Hadley KPMG, a partnership established under Ghanaian law, is a member of the A.K. Sarpong D.S. Adoteye A.O. Akoto KPMG network of independent member firms affiliated with KPMG N.A. Ayivor K. Frempong-Kore F N. Dennis International Coorperative ("KPMG Intemational"l, a Swiss entity. J. Coleman 9 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (CONT'D) (A COMPANY LIMITED BY GUARANTEE) Report on Other Legal and Regulatory Requirements Compliance with the requirements of Section 133 of the Companies Act, 1963 (Act 179) We have obtained all the information and explanations which, to the best of our knowledge and belief were necessary for the purpose of our audit. In our opinion, proper books of account have been kept, and the statements of financial position and comprehensive income are in agreement with the books of account. The engagement partner on the audit resulting in this independent auditor's report is Nathaniel D. Harlley (ICAG/P/1056). For and on behalf of: KPMG: (ICAG/F/2017/038) CHARTERED ACCOUNTANTS 13 YIYIWA DRIVE, ABELENKPE SPO BOX GP 242 ACCRA ............................................, 2017 N.A. Dodoo E.O. Asiedu N.D. Hartley KPMG, a partnership established under Ghanaian law, is a member of the A.K. Sarpong D.S. Adoteye A.D. Akoto KPMG network of independent member firms affiliated with KPMG N.A. Ayivor K. Frempong-Kore F N. Dennis International Coorperative ("KPMG International'), a Swiss entity. J. Coleman 10 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 DECEMBER2016 2016 2015 Note GHO GHO REVENUE Revenue from Non-Exchanee Transactions Research Grant 4a 26,920,052 23,812,314 Other Grants and Donations 4b 1,810,351 1,671,101 Deferred income 10 142,785 202,144 Transfer to Institutional Income 13 1,214,277 220,880 Revenue from Exchange Transactions Other income 6 4,490,711 3,611,658 Total revenue 34,578,176 29,518,097 EXPENSES Direct Project costs 13 (28,730,403) (25,483,415) Administrative Costs 5 (5,035,244) (3,962,753) Total expenses (33,765,647) (29,446,168) Net surplus on operating activities 812,529 71,929 OTHER GAINS Gain from foreign exchange transactions 6743 637,91 SURPLUS FOR THE PERIOD 1,509,942 709,9_10 The notes on pages 14 to 24 are an integral part of the financial statements 11 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A CENTER LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2016 2016 2015 Note GHO GHO ASSETS Current assets Bank and cash balances 8 11,291,593 11,393,962 Accounts receivable 7 3.637,509 595.018 14,929,102 11,988,980 Non-Current Assets Property plant and equipment 11 2,255,008 1,905,150 TOTAL ASSETS 17,184,110 13,894,130 LIABILITIES . Current Liabilities Accounts payable 9 850,680 540,054 Deferred income 10 35,390 22,787 Project Fund 13 2,046,619 9,564,333 Non - Current Liabilities Deferred income 10 464,864 231,748 Project fund 13 11,646,014 1,568,258 TOTAL LIABILITIES 15,043,567 11,927,180 Net assets 2,140,543 S66.95 Represented by: Accumulated surplus 1,969,174 1,795,581 Institutional funds 171,369 171,369 2,140,5_43 196,5 GO RNOR The financial statements were approved by the board of governors on . . .....2017 The notes on pages 14 to 29 are an integral part of the financial statements. 12 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 DECEMBER 2016 Accumulated Institutional Surplus Fund Total GHO GHO GHO Balance as at 1 January 2015 1,085,671 171,369 1,257,040 Surplus for the period year 709,910 - 709,910 Balance at 31 December 2015 1,795,581 171,369 1,966,950 Surplus for the period year 1,509,942 - 1,509,942 Balance as at 31 December 2016 3,305-523 3,476,892 The notes on pages 14 to 24 are an integral part of the financial statements. 13 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2016 2016 2015 GHO GHO Cash flow from operating activities Surplus of Income over expenditure 1,509,942 709,910 Adjustments for: Depreciation 365,078 244,991 Interest income (2,420) (2,495) Profit on disposal (65') 1,872,535 952,406 Deferred Income released (142,785) (202,144) Changes in accounts receivable (3,018,853) (298,812) Changes in accounts payable 286,988 122,488 Project fund received 28,270,899 28,300,830 Refunds to donors (33,856) (128,544) Project funds utilized (29,944,680) (25,704,295) Changes in project debtors 2,943,552 3 Net cash flow from operating activities 233,800 3,399,570 Cash flow from investing activities Purchase of property and equipment (PPE) (727,158) (361,798) Proceeds from disposal of PPE 65 - Interest received 22,9 Cash flow used in investing activities (724,673) (359,303) Cash flow from financing activities Grant received ;388,504 8749 Net cash from financing activities 4 87,049 Net change in cash and cash equivalents (102,369) 3,127,316 Cash and cash equivalents at 1 January 11,393,962 8.266,646 Cash and cash equivalents at 31 December (Note 8) 11,291.593 The notes on pages 14 to 24 are an integral part of the financial statements. 14 THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 1. GENERAL INFORMATION Ghana Center for Democratic Development (CDD- Ghana) is an independent non-partisan and non-profit research based and policy oriented think tank. It was founded in 1998. The Center is dedicated to the promotion of democracy, good governance, liberal economic environment as well as advocacy for government based on the rule of law and integrity in public administration. The center undertakes activities such as training and capacity building for institutions of democratic governance; research, analysis and publication on issues critical to democracy and national development; and networking and collaborative work with other international organizations. 2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION These financial statements have been prepared in accordance with International Public Sector Accounting Standards (IPSAS) and have been prepared under the historical cost convention except where otherwise stated in the accounting policies below. The financial statements are prepared on an accrual basis. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following accounting policies have been applied consistently in dealing with items that are considered material in relation to the Center's financial statements:- a. Functional and Presentation Currencies The functional and presentation currency of the center is Ghana cedi. b. Property, Plant and Equipment All property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the items. When significant parts of property, plant and equipment are required to be replaced at intervals, the Center recognizes such parts as individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in surplus or deficit as incurred. Where an asset is acquired in a non-exchange transaction for nil or nominal consideration the asset is initially measured at its fair value. 15 NOTES TO THE FINANCIAL STATEMENTS 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONT'D b. Property, Plant and Equipment (cont'd) Depreciation Depreciation is provided for on a straight-line basis at rates calculated to write off the cost of each fixed asset over its estimated useful life or unexpired portion of the lease. The annual rates generally in use are as follows: Furniture and Fittings - 25% Equipment and Machinery - 25% Motor Vehicles - 25% Leasehold Buildings* - 1.43% *The Leasehold building is depreciated over the lease period of 99 years. The assets' residual values and useful lives are reviewed, and adjusted prospectively, if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount, or recoverable service amount, if the asset's carrying amount is greater than its estimated recoverable amount or recoverable service amount. c. Foreign Exchange Transactions in foreign currencies are initially accounted for at the ruling rate of exchange on the date of the transaction. Creditors or debtors denominated in foreign currency are reported at the reporting date by applying the exchange rate on that date. Exchange differences arising from the settlement of creditors, or from the reporting of creditors at rates different from those at which they were initially recorded during the period, are recognized as income or expenses in the period in which they arise. d. Revenue from non-exchange transactions Non exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange The Center's incomes are mainly donations and specific grants from international aid agencies and other donors. Grants The Center receives grants from donors for executing specific projects. The Center recognizes an unconditional grants related to projects when the grant become receivables. Grants are initially recognized as deferred income if there is reasonable assurance that the Center will comply with the conditions attached and the grant will be received; they are then recognised as income over periods necessary to match with related costs. Grants with no conditions or requirements that unused funds must be returned to the donor are treated as deferred income and released into income once their obligations are met. Any unused funds at the end of the projects are recognised as revenue. - Research Policies Research activities may be initiated by the Center or by agreements under contracts with third parties. Main categories of research are described as follows: 16 NOTES TO THE FINANCIAL STATEMENTS 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONT'D d. Revenue from non-exchange transactions (cont'd) Pure Research This refers to experimental or theoretical work undertaken primarily to acquire new knowledge rather than towards a specific aim or application. The scope of the study will be defined at the onset. Methods may include desk study and field work. Applied Research This refers to original or critical investigation undertaken in order to gain new or improved knowledge and directed towards a specific practical aim or objective. Such applications include social policy surveys, opinion surveys and other comparative analysis on social policy and laws. The scope and objectives of the study will be defined from the onset. Methods may include deskwork and field work. Development This refers to the use of existing knowledge to produce new or substantially improved outcomes e.g. social responsibility contract in timber utilisation concessions. This is done prior to the application of the development either internally or for a third party principal. e. Revenue from exchange transactions Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange. The center has the following revenues from exchange transactions. Institutional income Institutional income comprises income accruing to the center for direct personnel on projects, overhead recovery on projects and margins on fixed price contracts. Interest Interest income is accrued using the effective yield method. The effective yield discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount. The method applies this yield to the principal outstanding to determine interest income each period. f. Financial instruments L Financial assets Initial recognition and measurement Recognition and Measurement are classified as financial assets at fair value through surplus or deficit, loans and receivables, held-to-maturity investments or available-for-sale financial assets, as appropriate. The Center determines the classification of its financial assets at initial recognition. The Center's financial asset is cash and bank balance. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. Losses arising from impairment are recognized in the surplus or deficit. The center's loans and receivables comprises project debtors and other receivables. 17 NOTES TO THE FINANCIAL STATEMENTS 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONT'D f. Financial instruments - (cont'd) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank, deposits on call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits as defined above. Impairment offinancial assets The entity assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired. iL Financial liabilities Financial liabilities are classified as financial liabilities at fair value through surplus or deficit or loans and borrowings, as appropriate. The Entity determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, plus directly attributable transaction costs. The Entity's financial liabilities include other payables. Loans and borrowing After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest method. Gains and losses are recognized in surplus or deficit when the liabilities are derecognized as well as through the effective interest method amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in surplus or deficit. g. Employee Benefits Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a separate entity and will have no legal or constructive obligation to pay future amounts. Obligations for contributions to defined contribution schemes are recognised as an expense in profit or loss when they are due. The center has the following defined contribution scheme: Social Security and National Insurance Trust Under a national pension scheme, the Group contributes 13% of employees' basic salary to the Social Security and National Insurance Trust (SSNIT) for employee pensions under the terms of the National Pensions Act 2008 (Act 766). The Center's obligation is limited to the relevant contributions, which have been recognised in the financial statements. The pension liabilities and obligations, however, rest with SSNIT. 18 NOTES TO THE FINANCIAL STATEMENTS 4a. RESEARCH GRANT 2016 2015 GHO GHO Afrobarometer Core Partner 1,761,806 4,034,763 OSIWA 1,698,158 944,371 GOGIG 99,515 - Ford Foundation 136,694 - USAID 5,861,377 2,316,394 Afrobarometer- PMU 13,306,374 15,434,926 French Embassy 388,442 - NDI 636,418 141,068 No Poor 322,302 176,196 GIZ - 54,243 UNDP 4,358 32,581 Netherlands Embassy 2,347,441 - MSI - 509,920 UNDEF DLT 249,255 118,531 International Food Project Res 17,032 - ESID 90,880 49321 0522812,314 4b. OTHER GRANTS AND DONATIONS 2016 2015 GHO GHO STAR- Ghana 289,394 53,519 *Embassies - 342,301 NED 375,055 - HP 664,453 473,124 FEI 128 - NMC - 83,288 Nathan/Havard - 19,053 Westminster Foundation For Democracy 9,096 - SWISS Program 251,282 72,791 ABT Associate 113,147 69,824 EU-CDD - 517,207 UCLA 107,296 39,794 1.81,3511,671,101 *Embassies A Consortium of embassies supported the project. 19 NOTES TO THE FINANCIAL STATEMENTS 5. ADMINISTRATIVE COSTS 2016 2015 GHO GHO Staff cost 2,389,970 1,841,675 Utilities 182,431 95,868 Telephone/communications 85,896 93,173 Repairs and maintenance 178,805 148,039 Printing and stationery 149,674 64,180 Bank charges 7,619 11,742 Rent 11,850 - Depreciation charges 365,078 244,990 Professional fees 782,532 733,195 Local travel 255,687 213,492 CDD cost share - USAID Project 268,215 - Sundry 67,677 80,429 Audit fees 50,000 50,000 Subscriptions 13,711 13,700 Foreign travel 15,090 23,905 Insurance 18,459 28,746 Medical 34,463 114,522 Security services 39,150 38,775 Institutional development 78,370 100,538 Workshop and conferences 40, 65,784 5,3524 3,962.753 6. OTHER INCOME 2016 2015 GHO GHO Institutional income 4,280,077 3,588,329 Sundry income 208,214 20,834 Interest income 2429 - 4,490,711 3,611,58 7. ACCOUNTS RECEIVABLE 2016 2015 GHO GHO Project debtors 3,506,809 563,257 Staff debtors 1,362 1,700 Sundry debtors 58,892 30,061 Prepayments 4 - 3.613.8718 20 NOTES TO THE FINANCIAL STATEMENTS 8. CASH AND BANK 2016 2015 GHO GHO Cash and bank 11,063,909 11,273,834 Call account 152,318 21,264 Cash in hand 7 98,864 11j291593 11,393,62 9. ACCOUNT PAYABLE 2016 2015 GHO GHO Sundry creditors 285,116 222,536 Accruals 513,526 247,318 Endowment Fund 28400 70,200 82L2 54_Q054 Endowment fund (Africa Democracy Fund): Africa Democracy Fund (ADF) is CDD-Ghana's endowment fund for mobilizing funds, resources, support, and strategic partnerships that sustain the Centre. The overall objective is to secure the funding base for CDD-Ghana such that it may continue to produce its world-class evidence-based research and advocacy programs that promote democracy and good governance across the continent. The ADF is managed by a Board of Trustees with the highest integrity and in alignment with the most diligent international standards. CDD holds the amount in trust for the board of trustees until the assumption of full responsibility by the board of trustees. 10. DEFERRED INCOME 2016 2015 GHO GHO Balance at 1 January 254,535 369,630 Amount received during the year 388,504 87,049 Released to income (142,785) (202,144) Balance at 31 December 5025.53 - Analysed as: Non-current 464,864 231,748 Current 2277 This represents capital grants received by the Center. These amounts are provided for the acquisition - of fixed assets and are transferred to the income and expenditure account over the useful life of the specific equipment item. 21 -W NOTES TO THE FINANCIAL STATEMENTS 11. PROPERTY, PLANT AND EQUIPMENT Land and Equipment and Furniture and Motor building Machinery Fittings Vehicles Total GHO GHO GHO GHO GHO 2016 Cost At 01/01/2016 1,426,767 547,587 218,425 375,185 2,567,964 Additions 37,7 431,529 204,098 727,19 At 31/12/2016 1464404 27292029 3,295123 Accumulated Depreciation At 01/01/2016 109,043 283,745 122,953 147,073 662,814 Charge for the year 13 186,611 0 98 365,079 At 31/12/2016 4 00.~356 1173 241A28 1L027,893 Net Book Value At 31/12/2016 134.048 508-760 333805 2267230 Land and Equipment and Furniture and Motor building Machinery Fittings Vehicles Total GHO GHO GHO GHO GHO 2015 Cost At 01/01/2015 1,422,007 643,569 242,843 200,157 2,508,576 Additions 4,760 152,310 29,700 175,028 361,798 Write offs - (248,292) (54,118) (302,410) At 31/12/2015 1426767 284872 315,185 Accumulated Depreciation At 01/01/2015 88,314 420,109 122,069 89,741 720,233 Charge for the year 2029 928 244,1 Write offs (248,292) (54,118) - (302,410) At 31/12/2015 199,09 2 E3142,23 66 Net Book Value At 31/12/2015 12317,724 211,82 9421905 150 Land and building is a 99 year leasehold property that was first acquired on the 15th of September 1978. The Center purchased the remaining interest in the property in December 2003. The building is amortised over the lease period. 12. INSTITUTIONAL AND ENDOWMENT FUNDS 2016 2015 GHO GHO Institutional fund at 1 January 171369 171,39 Institutional fund at 31 December 17 i139 Institutional Fund: The Center has established a fund to support the objectives of research and scholarship in development and democratic governance as well as the ideals of liberty and enterprise in accordance with the Board of Governors' recommendations. Unrestricted donations and overhead recoveries are transferred to institutional funds. The balance on the loan was fully repaid in the year 2013. 22 NOTES TO THE FINANCIAL STATEMENTS 13. PROJECT FUNDS 2016 2015 GHO GHO Funds at 1 January: Project funds 11,132,591 8,306,959 Project debtors (563,257) (205,616) 10,569,334 8,101,343 Funds received 28,270,899 28,300,830 Refund to donors (33,856) (128,544) 38,806,377 36,273,629 Project cost (28,730,403) (25,483,415) Transfer to institutional income** (1,214,277) (220,880) Net project funds at 31 December 8,861,697 10,569,334 Analysis of Project funds at 31 December . Project funds 12,368,506 11,132,591 Project debtors (note 7) (3,506,809) (563,257) 8,861,697 10,569,334 Project fund balances are analysed as: Non-current fund balances 10,272,312 1,568,258 Current fund balances 2,096,194 9,564,333 12,36.50611,132,591 ** - These represents balances on completed fixed priced contracts that were transferred to institutional income. 23 NOTES TO THE FINANCIAL STATEMENTS 14. RELATED PARTIES Disclosure Key Management Personnel The total remuneration of the executive directors, on a full-time equivalent basis, receiving remuneration from the Center are: 2016 2015 GHO GHO Total Remuneration 586,606 538,798 Number of persons 3 3 Remuneration of key management personnel 2016 2015 GHO GHO Executive Director 350,684 321,554 Treasurer 117,961 108,622 Director for Resource Mobilization 117,961 I0 and Public Affairs 15. FINANCIAL RISK MANAGEMENT Exposure to currency, commodity, interest rate, liquidity and credit risk arises in the normal course of the center's operations. This note presents information about the center's exposure to each of the above risks, policies and processes for measuring and managing risk, and the center's management of capital. Further quantitative disclosures are included throughout these financial statements. Fair values The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The following methods and assumptions were used to estimate the fair values: Cash and short-term deposits, Account receivables, account payables and project funds approximate their carrying amounts largely due to the short-term maturities of these instruments Set out below, is a comparison by class of the carrying amounts and fair values of the center's financial instruments. Financial assets Carrying amount Fair value GHO GHO - 2016 Accounts receivable 3,613,871 3,613,871 Cash and cash equivalents 11,291,593 11,291,593 14,90544 146905.64 24 NOTES TO THE FINANCIAL STATEMENTS 15. FINANCIAL RISK MANAGEMENT - (CONT'D) Fair Values (Cont'd) Financial assets Carrying amount Fair value GHO GHO 2015 Accounts receivable 595,018 595,018 Cash and cash equivalents 11,393,962 11,393,962 11,988,980 11,988,980 Financial liabilities Carrying amount Fair value GHO GHO 2016 Accounts payable 827,042 827,042 Project fund balances 10,197,219 10,197,219 11,024,261 11,024,261 2015 Carrying amount Fair value GHO GHO Accounts payable 540,054 540,054 Project fund balances 10,569,334 10,569,334 11,109,388 11,109,388 Credit risk Credit risk is the risk of financial loss to the center if counterparties to financial instruments fail to meet their contractual obligations, and it arises principally from the center's investments, loans, receivables, and cash and cash equivalents. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk as at 31 December 2016 was: 2016 2015 GHO GHO Accounts receivable 3,613,871 595,018 Cash and cash equivalents 11,291,593 11,393,962 Maximum exposure to credit risk 14,905,464 11,988,980 Appendix I THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) AFROBAROMETER PROJECT (PROJECT MANAGEMENT UNIT) GHO US$ PROJECT INCOME: Balance brought forward 8,111,513 2,027,878 Funds received for the year 6,041,160 1,608,092 Total income 14,152,673 3,635,970 PROJECT COSTS: Personnel 5,670,093 1,463,851 Supplies and services 3,659,408 958,437 Travel 1,526,143 368,868 Total direct costs 10,855,644 2,791,156 Indirect costs/overhead 2,450,730 63 Total project cost 13,306,374 3,421,717 Balance carried forward 846,299 214,253 The Afrobarometer (AB) is a comparative series of public opinion surveys on democracy, governance, economics, social development and civil society in Africa. It produces scientifically reliable public opinion data, builds research capacity among African institutions, and broadly disseminates practical results. Between 1999 and 2015, the Afrobarometer Network has conducted six rounds of surveys in 36 African countries, which together has laid a strong foundation for understanding trends in public opinion and for incorporating popular preferences into policy processes. Afrobarometer Rounds 7 and 8 will cover the period of 5 years, from 2016 to 2020, in at least 20 African countries. Ghana Center for Democratic Development was appointed the Project Management Unit for the Round 6 to administer funds from the donors and coordinate the implementation with the core partners and the technical partner, MSU. Appendix I - (Cont'd) THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARANTEE) AFROBAROMETER PROJECT - CORE PARTNER GHO US$ PROJECT INCOME: Balance brought forward 416,906 112,677 Funds received for the year 2,526,859 08,882 Total income 2,943,765 721,559 PROJECT COSTS: Research and survey 151,758 36,568 Personnel 1,083,005 260,965 Telephone and communication 16,095 3,878 Travel 3,969 956 Meetings - - Bank charges 3,063 738 Total direct cost 1,257,890 303,105 Indirect costs/overhead 503,916 121,46 Total project cost 1,761,806 424,531 Balance carried forward 1,8199 22,28 The balance of Afrobarometer Project - Core Partner at the end of the 6' round is as stated above. The objective of the Afrobarometer is to enhance the visibility of the Afrobarometer among African Policy Actors through the use of scientifically reliable data on public opinion in African countries: To continue building institutional capacity for scientific social analysis in Africa and To expand the survey data base in Africa As a core partner CDD-Ghana is responsible for the supervision of 7 Anglophone West African countries. Appendix I - (Cont'd) THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARNTEE) USAID PROJECT PROJECT INCOME GHO US$ Balance brought forward 361,046 97,580 Funds received 3,301,589 795,564 3,662,635 893,144 PROJECT COST - Personnel cost 2,315,907 558,050 Travel 1,050,019 253,017 Workshop and conference 594,369 143,221 Other direct costs 1,028,315 247,787 Office supplies 80 21077 Total cost 5,861,676 1,412,452 Balance carried forward (2.199,041) (519308) Appendix I - (Cont'd) THE GHANA CENTER FOR DEMOCRATIC DEVELOPMENT (A COMPANY LIMITED BY GUARNTEE) OSIWA PROJECT PROJECT INCOME GHO US$ Balance brought forward 162,070 43,803 Funds received during the year 1,604,156 38,44 1,766,226 430,347 PROJECT COSTS Personnel cost 560,466 106,114 Consultancy fees 52,027 12,537 Travel 492,145 118,589 Workshops, conferences and surveys 138,883 33,645 - Printing, stationery and communication 122,678 25,766 Advertisement and publicity 254 61 Other direct costs 3,70 Total costs 1,698,158 372,371 Balance carried forward 68.068 527976