Rama IX Art Museum
Audited Financial Statements
Auditor Thaveekiarti Krishnamra CPA No.104
Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd.
 
Audited Financial Statements

We have audited the accompanying financial statements of Rama IX Art Museum Foundation, which comprise the statements of financial position as at December 31, 2015, and the statement of income and expenditure and statement of changes in funds’ equity for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statement

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Thai Financial Reporting Standard for Non-Publicly Accountable Entities, and for such internal control as management determines is neccessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Thai Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about 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 auditor's judgement, including the assessment of the risks of material misstatement of the fiancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation 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 effectiveness of the entity's internal control. 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 aforementioned financial statements present fairly, in all material respects, the financial position of Rama IX Art Museum Foundation as at December 31, 2015, and its financial performance for the year then ended in accordance with Thai Financial Reporting Standard for Non-Publicly Accountable Entities.


BANGKOK

February 29, 2016

Thaveekiarti Krishnamra
Certified Public Accountant (Thailand)
Registration No. 104
DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.

Rama IX Art Museum Foundation
Statement of Financial Position
As at December 31, 2015
Baht
  Notes 2015 2014
ASSETS  
CURRENT ASSETS  
Cash and cash equivalents 5 5,993,590 1,164,622
Temporary investments 6 60,880,530 26,040,410
Supplies 7 1,368,610 1,426,953
Other current assets 8 200,705 294,125
 Total Current Assets   68,443,435 28,926,110
   
NON-CURRENT ASSETS  
Leasehold improvement and equipment 9 679,631 513,785
Intangible asset 10 5,003 6,873
Art collection 11 21,951,253 20,191,253
 Total Non-Current Assets   22,635,887 20,711,911
TOTAL ASSETS   91,079,322 49,638,021
LIABILITIES AND FUND'S EQUITY  
CURRENT LIABILITIES  
Accrued expenses
  87,047 169,047
Foundation income tax payable
  78,546 385,295
 Total Current Liabilities   165,593 554,342
TOTAL LIABILITIES   165,593 554,342
   
FUND'S EQUITY  
Initial capital fund from donation   200,000 200,000
Additional funds from donation   1,027,600 1,027,600
Accumulated excess of income over expenditure   89,686,129 47,856,079
 Total Fund's Equity   90,913,729 49,083,679
TOTAL LIABILITIES AND FUND'S EQUITY   91,079,322 49,638,021
Notes to the financial statements form an integral part of these statements
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Rama IX Art Museum Foundation
Statements of Income and Expenditure
For the Years ended
December 31, 2015
Baht
  Notes 2015 2014
INCOME  
Donation income 12 46,731,000 2,909,010
Donated artworks   1,700,000 1,320,000
Interest income   19,956 6,692
Unrealized gain from the revaluation of investment   865,508 914,386
Other income   120,000 120,000
 Total Income   49,436,464 5,270,088
EXPENDITURE  
Personnel expenses   3,227,032 2,754,678
Rental fee   618,441 607,653
Professional fees   172,750 143,500
Depreciation and amortization   216,344 147,273
Printing service fee   58,343 94,473
Artwork written off   - 515,000
Artist sponsorship program expenses   600,000 200,000
Classics Jeeb Bangkok project expenses - 5,508
70th anniversary Bangkok project expenses   3,405 391,318
The Most Illustrious Artist project expense 12 1,710,160 149,663
Other office expenses   891,393 871,276
Income tax expense 13 108,546 92,108
 Total Expenditure   7,606,414 5,972,450
INCOME OVER (UNDER) EXPENDITURE   41,830,050 (702,362)
Notes to the financial statements form an integral part of these statements
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Rama IX Art Museum Foundation
Statements of Changes in Funds' Equity
For the Years ended
December 31, 2015
Baht
  Capital Fund
From Donation

Accumulated
Excess of Income over Expenditure
Total Fund's
Equity
Initial Capital
Fund
Additional
Fund
  For the year ended December 31, 2014
Beginning balance as at January 1, 2014 200,000 1,027,600 48,558,441 49,786,041
Income under expenditure - - (702,362) (702,362)
Ending Balance as at December 31, 2014 200,000 1,027,600 47,856,079 49,083,679
  For the year ended December 31, 2015
Beginning balance as at January 1, 2015
200,000 1,027,600 47,856,079 49,083,679
Income over expenditure - - 41,830,050 41,830,050
Ending balance as at December 31, 2015 200,000 1,027,600 89,686,129 90,913,729
Notes to the financial statements form an integral part of these statements
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Rama IX Art Museum Foundation
Notes to The Financial Statements
For the Years Ended
December 31, 2015


1. OBJECTIVES OF THE FOUNDATION


Office of the National Culture Commission approved the setup of the Rama IX Art Museum Foundation (“the Foundation") on August 15, 1996. The registration for the setup of the Foundation was completed on October 4, 1996, with the following objectives:

1.1 To manage the Project of Art Exhibition in the honor of His Majesty King Bhumibol Adulyadej, the Supreme Artist, in Art and Culture, commemoration of the 50th anniversary of His Majesty The King’s accession to the throne.

1.2 To be responsible to fund raising in order to build up and manage a modern art museum to be named in the honor of His Majesty The King.

1.3 To support and develop knowledge of art. To collect and promote Thai artworks in the country and throughout the other countries around the world.

1.4 To promote and support the attitude to preserve the Thai contemporary art.

1.5 To organize a quality art publishing house concentrating in conventional publications and electronic educational aids for further understanding of Thai contemporary arts and to support and develop artistical knowledge.

1.6 To organize with other non-profit organization, education institution, art activities and others which have its same objectives in order to stimulate more grants and funding for public and young artists.

1.7 To encourage government organization, private organization, partnership, local and international company and international cultural collaborations in order to support objectives of the foundation.

2. FUNDING POLICIES

The Foundation was established with the initial funds of Baht 200,000. The Foundation may raise additional funds as follows:

2.1 Funds provided by Governmental organizations or state enterprises, or others in the country.

2.2 Funds or properties donated by charitable persons or organizations in the country or abroad.

2.3 Fund or properties bequeathed under a will or other juristic acts, provided that there are no conditions obligating the Foundation to any liabilities or whatsoever.

2.4 Interest and dividends arising from funds and the property which constitute the assets of the Foundation.

2.5 Contributions from the usage of the property or facilities of the Foundation, or services provided by the Foundation with free of charge.

2.6 Other income from the Foundation’s activities.

3. BASIS OF PREPARATION AND PRESENTATION OF THE FINANCIAL STATEMENTS

The Foundation maintains its accounting records in Thai Baht and prepares its statutory financial statements in Thai language in conformity with Thai Financial Reporting Standard (TFRS) for Non-Publicly Accountable Entities (“TFRS for NPAEs”) issued by the Federation of Accounting Professions and accounting practices generally accepted in Thailand.

The financial statements have been prepared on an accrual basis under the measurement basis of historical cost except as disclosed in the accounting policies.

4. SIGNIFICANT ACCOUNTING POLICIES

4.1 Cash and cash equivalents

Cash and cash equivalents are cash and all types of deposits at financial institutions with maturity of three months or less and excluding deposits at financial institutions used as collateral (if any).

4.2 Temporary investments

Temporary investments are carried at fair value. Changes in fair value of investment are recognized as unrealized gain (loss) from the revaluation of investment in the statement of income and expenditure.

4.3 Supplies

Supplies are stated at cost which is calculated on an average basis.

4.4 Leasehold improvement and equipment

Leasehold improvement and equipment are stated at cost less accumulated depreciation.

Depreciation is calculated by the straight-line method, based on the estimated useful lives of the assets as follows:

Leasehold improvement 3 years
Office equipment 5 years

For office equipment, which was transferred from the Golden Jubilee Art Celebration, depreciation is calculated by the straight-line method, based on its remaining useful life.

4.5 Intangible asset

Intangible asset which is computer program is stated at cost less accumulated amortization.

Amortization is calculated by the straight-line method, based on the estimated useful lives over the period of 5 years.

4.6 Art collection

The artworks transferred from the Golden Jubilee Art Celebration as well as donated by artists, are presented at price given by the individual Artists.

4.7 Income and expenditure recognition

Income and expenditure are recognized on an accrual basis, except for income from donation, which is recognized when the donation is received.

4.8 Income tax expense

The Foundation records income tax expense to be paid as expense of the year and records related tax liability using the accrual basis.

4.9 Use of accounting estimates

The preparation of financial statements in conformity with TERS for NPAEs also requires the Foundation's management to exercise judgments in order to determine the accounting policies, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the end of the reporting period and the reported amounts of income and expenditure during the reporting period. Although, these estimates are based on management’s reasonable consideration of current events, actual results may differ from these estimates.

5. CASH AND CASH EQUIVALENTS

Cash and cash equivalents as at December 31, were as follows:


  2015 2014
Baht
Cash on hand 27,000 27,000
Cash at banks - savings account 5,966,590 1,137,622
  5,993,590 1,164,622

As at December 31, 2015 and 2014, the weighted average interest rate of savings account was 0.5% per annum.

6. TEMPORARY INVESTMENTS

Temporary investment and the unrealized gain from the revaluation of investment as at December 31, were as follows:

  2015 2014
  Cost Unrealized
Gain
Fair
Value
Cost Unrealized
Gain
Fair
Value
Baht
Short-term fixed income fund and opened-end fund 60,015,022 865,508 60,880,530 25,126,024 914,386 26,040,410
Total 60,015,022 865,508 60,880,530 25,126,024 914,386 26,040,410

7. SUPPLIES

Supplies as at December 31, were as follows:

2015 2014
Baht
Art in the Reign of Rama IX Books and art catalogues 506,560 507,877
Supreme Artist Book 852,192 909,218
CD Project 6 Decade 9,858 9,858
  1,368,610 1,426,953

Supplies will be given to donors who donate to the Foundation.

8. OTHER CURRENT ASSETS

Other current assets as at December 31, were as follows:

2015 2014
Baht
Deposit 149,682 149,682
Accrued income 3,000 56,170
Others 48,023 88,273
  200,705 294,125

9. LEASEHOLD IMPROVEMENT AND EQUIPMENT

Leasehold improvement and equipment as at December 31, were as follows:

As at December 31, 2015
Balance as at
January 1, 2015
Additions Disposals Balance as at
December 31, 2015
Baht
COST:
Leasehold improvement 130,594 - - 130,594
Office equipment 1,424,792 380,329 (94,301) 1,710,820
   Total cost 1,555,386
380,329 (94,301) 1,841,414
ACCUMULATED DEPRECIATION:
Leasehold improvement (130,592) - - (130,592)
Office equipment (911,009) (214,473) 94,291 (1,031,191)
   Total accumulated depreciation (1,041,601)
(214,473) 94,291 (1,161,783)
Leasehold improvement and equipment 513,785
- - 679,631
As at December 31, 2014
Balance as at
January 1, 2014
Additions Disposals Balance as at
December 31, 2014
Baht
COST:
Leasehold improvement 130,594 - - 130,594
Office equipment 1,351,911 245,431 (172,550) 1,424,792
   Total cost 1,482,505
245,431 (172,550) 1,555,386
ACCUMULATED DEPRECIATION:
Leasehold improvement (130,592) - - (130,592)
Office equipment (938,123) (145,403) 172,517 (911,009)
   Total accumulated depreciation (1,068,715)
(145,403) 172,517 (1,041,601)
Leasehold improvement and equipment 413,790
- - 513,785
DEPRECIATION FOR THE YEARS ENDED DECEMBER 31,
2015 Baht 214,473
2014 Baht 145,403

10. INTANGIBLE ASSET

Intangible asset as at December 31, were as follows:

As at December 31, 2015
Balance as at
January 1, 2015
Additions Disposals Balance as at
December 31, 2015
Baht
Computer program 68,420
- - 68,420
Less Accumulated amortization (61,547)
(1,870) - (63,417)
Intangible asset 6,873
- - 5,003
As at December 31, 2014
Balance as at
January 1, 2014
Additions Disposals Balance as at
December 31, 2014
Baht
Computer program 68,420
- - 68,420
Less Accumulated amortization (59,677)
(1,870) - (61,547)
Intangible asset 8,743
- - 6,873
AMORTIZATION FOR THE YEARS ENDED DECEMBER 31,
2015 Baht 1,870
2014 Baht 1,870

11. ART COLLECTION

Art collection as at December 31, were as follows:

Balance as at
January 1,
Additions Disposals Balance as at
December 31,
Baht
As at December 31
2015 20,191,253
1,760,000 - 21,951,253
2014 19,386,253
1,320,000 (515,000) 20,191,253

12. THE MOST ILLUSTRIOUS ARTIST PROJECT

The Foundation has arranged the the most illustrious artist project which the project expense for the years ended december 31, 2015 and 2014 were Baht 1,710,160 and Baht 149,663, respectively.

In this regards, the Foundation also received the donation income for this project in amount of Baht 45,100,000 during the year ended December 31, 2015. The Foundation did not have such donation income for the year ended December 31, 2014.


13. INCOME TAX EXPENSE

Income tax expense for the years ended December 31, 2015 and 2014 were calculated from income before expenditure, for income that is not exempt from taxation according to the Revenue Code.

14. LAWSUIT

During the year 2011, the Foundation has filed a police complaint against a resigned Foundation's officer who was found to have made fraudulent transactions between the years 2007 to 2010 with the total damage value of Baht 693,380, which was recognized in the financial statements.

On July 17, 2012, a court hearing was held at The Pathumwan Municipal Court and the defendant pleaded guilty to all charges and to reimburse the damage in full amount of Baht 693,380 by paying not less than Baht 10,000 per month and to be complete within 3 years.

Subsequently, on July 23, 2015, the Foundation filed the Pathumwan Municipal Court for rehearing the case because the defendant failed to respond to the complaint and did not repay the outstanding amount. On September 14, 2015, the parties argued to the Court allowing the defendant to repay the outstanding amount until the payment is complete. The Court, therefore, postpone the decision to September 13, 2016.

As at December 31, 2015, the defendant has already compensated for Baht 410,000, therefore, the outstanding amount is Baht 283,380. The Foundation recognized as other income when the damage is received.


15. APPROVAL OF THE FINANCIAL STATEMENTS

These financial statements have been approved for issuing by the authorized director of the Foundation on February 29, 2016.
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