 |
Auditor Kornthong Luangvilai CPA No.7210
Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd. |
|
|
 |
Qualified Opinion
We have audited the financial statements of Rama IX Art Museum Foundation (the "Foundation"), which comprise the statements of financial position as at December 31, 2019, and the related statements of income and expenditure and changes in funds' equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the accompanying financial statements present fairly, in all material respects, the financial position of Rama IX Art Museum Foundation as at December 31, 2019, and its financial performance for the year then ended in accordance with Thai Financial Reporting Standards for Non-Publicly Accountable Entities.
Basis for Qualified Opinion
As disclosed in Note 11 to the financial statements, the Foundation's art collections are carried in the statement of financial position as at December 31, 2018 in the amount of Baht 55.64 million. The Foundation's record the art collections and surplus on assets revaluation increased in the amount of Baht 28.93 million from the revalued amount, which were higher than costs amount, which constitutes a departure from Thai Financial Reporting Standard for Non-Publicly Accountable Entities. Therefore, we expressed the qualified opinion on the financial statements for the year ended December 31, 2018 on those financial statements on April 10, 2019. However, the Foundation's art collections as at December 31, 2019 amount of Baht 56.20 million has over-presented and surplus an assets revaluation amount of Baht 28.93 million from the revalued amount, which constitutes a departure from Thai Financial Reporting Standard for Non-Publicly Accountable Entities. Therefore, our opinion on the financial statements of the current year has qualified in this regard. Due to affects in the financial position as at December 31, 2019 and has an effect on the comparison amount of the current year and comparative amount. The Foundation's records indicate that had the Foundation carried the art collections at costs, the Foundation would have to record the reduction in value of art collection of Baht 28.93 million. Accordingly, art collections and surplus on assets revaluation would have been decreased in the same of Baht 28.93 million.
We conducted our audit in accordance with Thai Standards on Auditing ("TSAs"). 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 Foundation in accordance with the Federation of Accounting Professions' Code of Ethics for Professional Accountants together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with Thai Financial Reporting Standards for Non-Publicly Accountable Entities, and for such internal control as management determines is 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, management is responsible for assessing the Foundation'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 management either intends to liquidate the Foundation or to cease operations, or has no realistic alternative but to do so.
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 TSAs 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 TSAs, 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, or the 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 Foundation'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 management's 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 Foundation'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 Foundation 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 management 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.
|
BANGKOK
March 31, 2020
Kornthong Luangvilai
Certified Public Accountant (Thailand)
Registration No. 7210
DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.
|
 Back To Top |
Rama IX Art Museum Foundation
Statement of Financial Position
As at December 31, 2019 |
| |
Notes |
2019 |
2018 |
| ASSETS |
|
|
|
| CURRENT ASSETS |
|
|
|
 Cash and cash equivalents |
5 |
705,341 |
886,884 |
| Temporary investments |
6 |
65,362,752 |
66,936,379 |
| Supplies |
7 |
384,446 |
463,192 |
| Other current assets |
8 |
153,627 |
214,263 |
| Total Current Assets |
|
66,606,166 |
68,500,718 |
| |
|
|
|
| NON-CURRENT ASSETS |
|
|
|
| Leasehold improvement and equipment |
9 |
1,277,455 |
1,680,477 |
| Intangible asset |
10 |
2 |
2 |
| Art collection |
11 |
56,196,415 |
55,639,415 |
| Total Non-Current Assets |
|
57,473,872 |
57,319,894 |
| TOTAL ASSETS |
|
124,080,038 |
125,820,612 |
Rama IX Art Museum Foundation
Statement of Financial Position
As at December 31, 2019 |
| |
Notes |
2019 |
2018 |
| LIABILITIES AND FUND'S EQUITY |
|
|
|
| CURRENT LIABILITIES |
|
|
|
Accrued expenses
|
|
92,167 |
95,011 |
Income tax payable
|
|
77,540 |
- |
| Total Current Liabilities |
|
169,707 |
95,011 |
| TOTAL LIABILITIES |
|
169,707 |
95,011 |
| |
|
|
|
| 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 |
|
93,756,529 |
95,571,99 |
| OTHER COMPONENT OF FUND'S EQUITY |
|
|
|
| Surplus on assets revaluation |
11 |
28,926,202 |
28,926,202 |
| Total Fund's Equity |
|
123,910,331 |
125,725,601 |
| TOTAL LIABILITIES AND FUND'S EQUITY |
|
124,080,038 |
125,820,612 |
Rama IX Art Museum Foundation
Statements of Income and Expenditure
For the Years ended December 31, 2019 |
| |
Notes |
2019 |
2018 |
| INCOME |
|
|
|
| Donation
income |
|
70,915 |
437,960 |
| Donated
artworks income |
11 |
557,000 |
90,000 |
| Interest
income |
|
3,539 |
3,346 |
| Unrealized gain from the revaluation of investment |
6 |
1,498,815 |
851,564 |
| Other income |
|
- |
43,380 |
| Total
Income |
|
2,130,269 |
1,426,250 |
| EXPENDITURE |
|
|
|
| Personnel expenses |
|
2,510,676 |
2,835,597 |
| Professional
fees |
|
194,710 |
204,210 |
| Depreciation
and amortization |
|
626,261 |
652,723 |
| Book printing expenses |
|
78,746 |
107,291 |
| Artist sponsorship program expenses |
|
50,000 |
- |
| The Most Illustrious Artist project expense |
|
12,768 |
8,003 |
| Other office
expenses |
|
322,143 |
312,195 |
| Income tax expense |
12 |
150,235 |
85,491 |
| Total
Expenditure |
|
3,945,539 |
4,205,510 |
| INCOME OVER (UNDER) EXPENDITURE FOR THE YEARS |
|
(1,815,270) |
(2,779,260) |
Rama IX Art Museum Foundation
Statements of Changes in Funds' Equity
For the Years ended December 31, 2019 |
| |
Capital Fund
From Donation
|
Accumulated
Excess of Income over Expenditure
(Shortage)
|
Other component
of fund's equity
Surplus on
assets revaluation |
Total Fund's
Equity |
Initial Capital
Fund |
Additional
Fund |
| For the year ended December 31, 2018 |
Beginning
balance as at January 1, 2018
|
200,000 |
1,027,600 |
98,351,059 |
28,926,202 |
128,504,861 |
| Income under expenditure |
- |
- |
(2,779,260) |
- |
(2,779,260) |
| Ending balance as at December 31, 2018 |
200,000 |
1,027,600 |
95,571,799 |
28,926,202 |
125,725,601 |
| For the year ended December 31, 2019 |
Beginning
balance as at January 1, 2019
|
200,000 |
1,027,600 |
95,571,799 |
28,926,202 |
125,725,601 |
| Income under expenditure |
- |
- |
(1,815,270) |
- |
(1,815,270) |
| Ending balance as at December 31, 2019 |
200,000 |
1,027,600 |
93,756,529 |
28,926,202 |
123,910,331 |
Rama IX Art Museum Foundation
Notes to The Financial Statements
For the Years Ended December 31, 2019 |
1. 1. OBJECTIVES AND GENERAL INFORMATION 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 and 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.
The Foundation's office is located at I Tower Building, 18th floor, No. 888 Vibhavadi Rangsit Road, Chatuchak, Bangkok.
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 that is approved by the Foundation's Board of Directors.
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 for Non-Publicly Accountable Entities (“TFRS for NPAEs”) issued by the Federation of Accounting Professions and accounting practices generally accepted in Thailand, except the accounting policy for art collection as disclosed in Note 4.6.
The Foundation's financial statements have been prepared in accordance with Notification of the Department of Business Development dated September 28, 2011 regarding "The Brief Particulars in the Financial Statement B.E. 2554".
The financial statements have been prepared on an accrual basis under the measurement basis of historical cost except as disclosed in the significant accounting policies.
4. SIGNIFICANT ACCOUNTING POLICIES
4.1 Cash and cash equivalents
Cash and cash equivalents are cash on hand 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 investments in trading securities which are stated at fair value. Changes in fair value of securities will be charge to 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 |
5 |
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 is accounted at cost at price given by the individual Artists.
Moreover, the Foundation reappraised the art collection by the collective vote of a panel of art experts based on their knowledge of the art market; some with upward revaluation, some no change, and some with downward revaluation. The increase in revaluation is recognized as the surplus in other component of fund's equity under "surplus on assets revaluation'', while the decrease in revaluation is charged directly against any prior appraisal increase for the particular asset. The residual appraisal decrease is recognized as an expense in the statement of income and expenditure.
4.7 Income and expenditure recognition
Income and expenditure are recognized on an accrual basis, except for income from donation.
Donation income
Donation income is recognized when the donation is received.
Donated artwork income
Donated artwork income is recognized when the artwork is received which accounted at cost at price given by the individual Artist.
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 managements' judgment
The preparation of financial statements in conformity with TERS for NPAEs and generally accepted accounting principles 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 last date 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: |
| |
2019 |
2018 |
| Baht |
| Cash on hand |
27,000 |
27,000 |
| Cash at banks - savings account |
978,341 |
859,884 |
| |
705,341 |
886,884 |
|
6. TEMPORARY INVESTMENTS
Temporary investment as at December 31, were as follows: |
| |
2019 |
2018 |
| |
Cost |
Unrealized
Gain |
Fair
Value |
Cost |
Unrealized
Gain
|
Fair
Value
|
| Baht |
| Fixed income fund and opened-end fund |
63,863,937 |
1,498,815 |
65,362,752 |
66,084,815 |
851,564 |
66,936,379 |
| Total |
63,863,937 |
1,498,815 |
65,362,752 |
66,084,815 |
851,564 |
66,936,379 |
|
7. SUPPLIES
Supplies as at December 31, were as follows: |
|
2019 |
2018 |
| Baht |
| Art in the Reign of Rama IX Books and art catalogues |
312,946 |
391,692 |
| Supreme Artist Book |
71,500 |
71,500 |
| |
384,446 |
463,192 |
|
| 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: |
|
2019 |
2018 |
| Baht |
| Deposit |
12,600 |
12,600 |
| Refundable withholding tax |
141,027 |
141,027 |
| Others |
- |
60,636 |
| |
153,627 |
214,263 |
|
9. LEASEHOLD IMPROVEMENT AND EQUIPMENT
Leasehold improvement and equipment as at December 31, were as follows: |
| As at December 31, 2019 |
|
Balance as at
January 1, 2019 |
Additions |
Disposals |
Balance as at
December 31, 2019 |
| Baht |
| COST: |
| Leasehold improvement |
2,040,962 |
- |
- |
2,040,962 |
| Office equipment |
2,076,138 |
243,256 |
(48,752) |
2,270,642 |
| Total cost |
4,117,100 |
243,256 |
(48,752) |
4,311,604 |
| ACCUMULATED DEPRECIATION: |
| Leasehold improvement |
(815,252) |
(408,191) |
- |
(1,223,443) |
| Office equipment |
(1,621,371) |
(218,069) |
28,734 |
(1,810,706) |
| Total accumulated depreciation |
(2,436,623) |
(626,260) |
28,734 |
(3,034,149) |
| Leasehold improvement and equipment |
1,680,477 |
- |
- |
1,277,455 |
| As at December 31, 2018 |
|
Balance as at
January 1, 2018 |
Additions |
Disposals |
Balance as at
December 31, 2018 |
| Baht |
| COST: |
| Leasehold improvement |
2,040,962 |
- |
- |
2,040,962 |
| Office equipment |
2,038,388 |
46,492 |
(8,742) |
2,076,138 |
| Total cost |
4,079,350
|
46,492 |
(8,742) |
4,117,100 |
| ACCUMULATED DEPRECIATION: |
| Leasehold improvement |
(407,060) |
(408,192) |
- |
(815,252) |
| Office equipment |
(1,386,842) |
(243,270) |
8,741 |
(1,621,371) |
| Total accumulated depreciation |
(1,793,902)
|
(651,462) |
8,741 |
(2,436,623) |
| Leasehold improvement and equipment |
2,285,448
|
- |
- |
1,680,477 |
| DEPRECIATION FOR THE YEARS ENDED DECEMBER 31, |
| 2019 |
Baht |
626,260 |
| 2018 |
Baht |
651,462 |
10. INTANGIBLE ASSET
Intangible asset as at December 31, were as follows: |
| As at December 31, 2019 |
|
Balance as at
January 1, 2019 |
Additions |
Disposals |
Balance as at
December 31, 2019 |
| Baht |
| Computer program |
68,420
|
- |
- |
68,420 |
| Less Accumulated amortization |
(68,418)
|
- |
- |
(68,418) |
| Intangible asset |
2
|
- |
- |
2 |
| As at December 31, 2018 |
|
Balance as at
January 1, 2018 |
Additions |
Disposals |
Balance as at
December 31, 2018 |
| Baht |
| Computer program |
68,420
|
- |
- |
68,420 |
| Less Accumulated amortization |
(67,157)
|
(1,261) |
- |
(68,418) |
| Intangible asset |
1,263
|
- |
- |
2 |
| AMORTIZATION FOR THE YEARS ENDED DECEMBER 31, |
| 2019 |
Baht |
- |
| 2018 |
Baht |
1,261 |
11. ART COLLECTION
Art collection as at December 31, were as follows:
|
| |
2019 |
2018 |
| Baht |
| Art collection balances as at January 1, |
56,982,415 |
56,792,415 |
| Additions from donations |
557,000 |
90,000 |
| Additions from purchases |
- |
100,000 |
| |
57,539,415 |
56,982,415 |
| Less Allowance for diminution in value of assets |
(1,343,000) |
(1,343,000) |
| Art collection balances as at December 31, |
56,196,415 |
55,639,415 |
| As at December 31, 2017 and 2018, the Foundation has surplus on assets revaluation of Baht 28,926,202 and allowance for diminution in value of assets of Baht 1,343,000 which arising from the reappraisal of art collection by the Foundation (see Note 4.6). |
12. INCOME TAX EXPENSE
Income tax expense for the years ended December 31, 2019 and 2018 were calculated from income before expenditure, for income that is not exempt from taxation according to the Revenue Code.
|
13. APPROVAL OF THE FINANCIAL STATEMENTS
These financial statements have been approved for issuing by the authorized director of the Foundation on March 31, 2020. |
|
|
|
