financial statements of physicians for human rights israel ... · physicians for human rights –...

Translated from the Hebrew Original

Financial Statements of

Israel (R”A) –Physicians for Human Rights

31, 2018 As of December

The information contained in these financial statements constitutes an unofficial translation of the financial statements published by the Company in Hebrew. The Hebrew version is the binding version. This

translation was prepared for convenience purposes only.

Translated from the Hebrew Original

Israel (R”A) –Physicians for Human Rights

mber 31, 2018Financial Statements as of Dece

Table of Contents

Independent Auditor’s Report 2

Balance Sheets 3

Statements of Activities 4

Statements of Changes in Net Assets 5

Notes to the Financial Statements 6-13

Physicians for Human Rights – Israel (R.A.) Statement of Activities Translated from the Hebrew Original

4

For the year ended December 31

2018 2017 Note NIS thousands

Revenues Amounts released for activities from net assets under temporary restriction 7,330 6,399 General donations 3,271 1,315 In-kind revenues from medical and professional services 8 1,755 1,252 Revenues from lectures, training and expense reimbursement 5 7 Fees for clinic visit 6 6 12,317 8,979 Cost of activities 10 Occupied Territories, mobile clinic and prisoners 5,948 4,040(*) Free clinic, migrants and refugees 2,128 1,865 Public Department, archives and Israeli residents 2,139 1,981(*)

10,215 7,886

Net income from activities 2,152 1,093 General and administrative expenses 11 617 820 Net income before financing 1,535 273 Financing income (expenses), net )65( )47(

Net income (deficit) for the year 1,470 226

(*) Reclassified.

The accompanying notes are an integral part of these financial statements.

Physicians for Human Rights – Israel (R.A.) Statement of Changes in Net Assets Translated from the Hebrew Original

5

Not earmarked

Used for fixed

assets

Under temporary restriction Earmarked Total

NIS thousands

Balance as of January 1, 2017 (446) 299 520 1,650 2,023

Additions during the year

Donations - - 6,301 - 6,301

Deficit for the year 226 - - - 226

226 - 6,301 - 6,527

Deductions during the year

Amounts released from restriction - - 6,399 - 6,399

Transfer of unrestricted amounts

Used for fixed assets (44) 44 - - -

Amounts transferred to cover depreciation expenses 75 (75) - - -

31 (31) - - -

Balance as of December 31, 2017 (189) 268 422 1,650 2,151

Additions during the year

Donations - - 7,260 - 7,260

Net income for the year 1,470 1,470

Amounts earmarked by association’s managing institutions (200) - - 200 -

1,270 - 7,260 200 8,730

Deductions during the year

Amounts released from restriction - - (7,330) - (7,330)

Transfer of unrestricted amounts

Used for fixed assets (45) 45 - - -

Amounts transferred to cover depreciation expenses 41 (41) - - -

4 (4) - - -

Balance as of December 31, 2018 1,077 272 352 1,850 3,551

Physicians for Human Rights – Israel (R.A.) Translated from the Hebrew Original

6

Note 1 – General

A. The Society was registered with the Societies Registrar according to the Amutot Law – 1980 on

November 7, 1988. Its identification number is 580142214.

B. The Society takes action to protect human rights in general and to promote the right to health,

medical care, with respect for and the holistic physical and spiritual health of every person in Israel

and the Occupied Territories, under the basic assumption that the right to health is a basic human

right that is the responsibility of the state. The Society fights against human rights violations and

for the individual’s right to health and against the policy that is the basis for these violations. The

Society operates on the principles front and the individuals front, by bringing the subject to public

awareness, gathering and disseminating information, legal actions, setting up clinics and providing

health services and assistance in actualizing rights.

C. The Society operates as a “public institutions” under Section 9(2) of the Income Tax Ordinance and

as a Not-for-Profit Institution with respect to the Value Added Tax Law.

Accordingly, the Society does not pay income tax or value added tax on activity that is not from a

business, and it is not permitted to offset inputs tax.

D. The Society was given approval regarding donations from the Income Tax Commissioner under

Section 46 of the Income Tax Ordinance. The approval is in effect until 31/12/2018.

Note 2 – Significant accounting principles

A. Definitions

The Society Physicians for Human Rights (R.A.)

Net assets The difference between the Society’s assets and liabilities

Unrestricted net assets That part of net assets that is not subject to any permanent or

temporary restriction regarding usage, prescribed by donors.

B. The Society recognizes its assets, liabilities, revenues and expenses on the accrual basis.

C. Format of financial statement presentation

1. Classification of balances included in the net asset category, distinguishing between:

a. Unrestricted net assets

b. Net assets under temporary restriction

c. Net assets under permanent restriction

Net assets for which there is no restriction are presented while distinguishing between net

assets used in activities:

a. Earmarked by the executive institutions of the Society

b. Not yet earmarked by the executive institutions of the Society.


7

Note 2 – Significant accounting principles (cont.)

C. Format of financial statement presentation (cont.)

2. The statement of activities includes all of the revenues and expenses in the reporting period.

3. The statement of changes in net assets includes, in addition to the net results transferred from

the statement of activities, also all sources received whose usage is restricted and amounts

released from restriction.

4. The Society did not prepare a statement of cash flows since it does not contain any additional

relevant information.

D. Cash and cash equivalents

Considered cash equivalents are highly liquid investments, including, among others, short-term

unrestricted and unpledged bank deposits, with an original period to maturity not exceeding 3

months.

E. Donations, budget allocations, support and grants receivable

1. Donations, budget allocations, support, grants, bequests and gifts that were promised but not

yet received as of the date of the financial statements are recorded as revenues or additions

to restricted net assets if all of the following conditions are fulfilled: there is an irrevocable

and unconditional obligation of the donor that relates to the report period, the promise was

fulfilled subsequent to the date of the financial statements or it may be enforced legally and

realizable, and the realization of the promise is not contingent on the occurrence of a future

event.

2. The amounts receivable are presented net of provisions for promises that the Society’s

executive board assesses will not be realized.

F. Fixed assets

1. Fixed assets are stated at cost, net of accumulated depreciation and impairment provisions

according to Accounting Standard No. 15, if necessary.

2. Fixed assets received free of charge – their cost is fair value on date of receipt.

3. Depreciation is calculated by the straight-line method, on the basis of the assets’ estimated

useful life.

G. Offset of financial instruments

Financial assets and financial liabilities are stated in the balance sheet as a net amount only when

the Society has the legal right of enforcement and offset, and there is intent to settle the asset

and liability on a net basis, or realize the asset and settle the liability simultaneously.


8

Note 2 – Significant accounting principles (cont.)

H. Revenue recognition and change in net assets

1. Revenues and changes in restricted assets are recorded on the accrual basis.

2. Disposable assets and goods, received free of charge, which have significant monetary value

on a cumulative basis relative to the Society’s total revenues, the fair value of which may be

reliably estimated, are recorded as revenues and as costs in the statement of activities.

3. Services requiring professional skills and expertise, without which the society would have

needed to purchase them, having significant financial value on a cumulative basis relative to

the Society’s total revenues, the value of which may be reliably estimated, are recorded as

revenues and costs in the statement of activities.

4. Revenues from investments – Income and losses resulting from the change in fair value of

current investments are recognized in the statement of activities and/or statement of changes

in net assets when they are generated, as part of financing income (expenses), net for the

period. Income and losses resulting from the sale of investments defined as long-term

investments or from the decline in value of long-term investments are recognized in the

statement of activities and/or the statement of changes in net assets when they occur, or in

the period in which the impairment provision is recorded.

5. Surpluses resulting from the sale of assets that were received free of charge, the usage of

which was restricted to certain purposes only, and the proceeds from their realization will be

used solely for those purposes, are recognized directly in restricted net assets.

I. Taxes

1. Value added tax imposed according to the Value Added Tax Law is included in salary expenses.

Value added tax paid for inputs that cannot be refunded are included in the expenses or assets

for which the tax was imposed.

2. Taxes for certain expenses (surplus expenses) are included in the expense items for which the

tax was imposed.

3. Taxes related to additions to restricted net assets are presented as a reduction from these

amounts.


9

Note 3 – Cash and cash equivalents

As of December 31

2018 2017

NIS thousands

Cash in banks – Israeli currency 1,910 898

Deposits 1,777 1,776

Petty cash 17 14

Cash in banks – foreign currency - 42

2 2,730

Note 4 – Receivables and debit balances

As of December 31

2018 2017

NIS thousands

Employees - 10

Other receivables 17 25

Prepaid expenses 84 73

Budget allocations receivable 783 242

884 350

Note 5 – Fixed assets

As of December 31

2018 2017

Office furniture and

equipment Leasehold

improvements

Total Total

NIS thousands

Cost 970 343 1,313 1,269

Accumulated depreciation 745 297 1,042 1,001

As of December 31, 2016 225 46 271 268


10

Note 6 – Other payables

As of December 31

2018 2017

NIS thousands

Post-dated checks payable 53 299

Accrued expenses payable 210 131

Employees and payroll institutions 176 10

Accrued vacation 234 227

Trade accounts payable 200 150

873 817


11

Note 7 – Donations

For the year ended December 31 2018 2017 NIS thousands

The New Israel Fund 1,128 344 Bread for the World 1,001 692 Private donors 846 391 Hilti Foundation 746 708 Others 666 42 The Sigrid Rausing Trust 621 596 SDC 455 - Anonymous 450 450 Bidosi Medical Services Ltd. 400 - UNHCR 391 502 The Samuel Sebba Charitable Trust 370 120 Fundraising Events 367 211 Diakonia 361 386 Medico International EV 231 62 Swiss Embassy 259 78 Secours Catholique 212 229 Anonymous 212 - Stiftung Auxilium 190 - Anonymous 188 - Brann-J Jacoby 133 - Manos Unidas 128 45 Medici per i diritti umani (MEDU) 123 103 British Embassy 123 - Medico International Schweiz 143 141 Chotmim Me’Chadash 57 45 Doris Arkin 50 50 I.B.I. Ltd. 35 30 Church of Scotland 23 46


12

Note 7 – Donations (cont.)


Mr. John Bunzel 21 21 Miryam Services Company 20 20 Niras Naturas (Secretariat) - 653 LDS Church - 381 CA Gaza Emergency - 354 The Center for Refugees and Migrants - 276 Christian Aid - 230 German Foreign Office - 200 UNDP - 97 Paicolex Trust FIDELIO (*) - 89 Adale - 87 HEKS EPER - 3

9,949 7,682 (*) Received via the New Israel Fund.

Note 8 – Revenues from professional medical services – in kind


Occupied Territories, mobile clinic and prisoners 1,069 843 Free clinic, refugees and migrants 617 392 Public Department, archives and Israel residents 69 17

Total 1,755 1,252


13

Note 9 – Net assets for use in activities – earmarked In 2018, the Society earmarked NIS 200 thousand out of the total net assets for use in activities. In accordance with the recommendation of the Society’s finance committee dated 23/12/2018, the Executive Committee approved the earmarking of the funds at a meeting on 26/12/2018. Note 10 – Cost of activities


2018 2017

NIS thousands

Occupied Territories, mobile clinic and prisoners

Salaries and related expenses 1,692 1,468

Medical and professional services – in kind 1,069 843

Other operating expenses 3,187 1,729

5,948 4,040

Free clinic and refugees and migrants

Salaries and related expenses 930 827

Medical and professional services – in kind 617 392

Other operating expenses 581 646

2,128 1,865

Public department, archives and Israel residents

Salaries and related expenses 1,201 1,416

Medical and professional services – in kind 69 17

Other operating expenses 869 548

2,139 1,981

10,215 7,886

Note 10 – General and administrative expenses


2018 2017

NIS thousands

Salaries and related expenses 475 492

Depreciation 4 7

Rental fees and maintenance 24 41

Office maintenance and supplies 11 2

Telecommunications and post 3 3

Refreshments, entertainment and gifts 2 11

Travel and couriers - 1

Accounting, audit and legal 98 263

617 820

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