Rama IX Art Museum
Audited Financial Statements
Auditor Dr.Suphamit Techamontrikul CPA No.3356
Deloitte Touche Tohmatsu Jaiyos Co., Ltd.
 
Audited Financial Statements

We have audited the balance sheets of Rama IX Art Museum Foundation as at December 31, 2000 and 1999 and the related statements of income and expenditure and changes in funds' equity for the years then ended.These financial statements are the responsibility of the Foundation's management as to their correctness and completeness of the presentation. Our responsibility is to express an opinion on these financial statements based on our audits.

Except as discussed in the third and fourth paragraphs, we conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

We did not present at the physical stock taking of supplies as at December 31, 1998, because the volume of accounting transactions would not be commensurate with the expense to reconcile the related transactions. In addition, we were unable to satisfy ourselves as to the quantities of the supplies by means of other auditing procedures.

As discussed in Note 4.4 to the financial statements, value of donated artworks estimated by the individual artists as at December 31, 2000 and 1999 was Baht 14.50 million and Baht 13.92 million. We were unable to satisfy ourselves as to the value of the artworks by means of other auditing procedure because there was no market price for comparison.

In our opinion, except for the effect of adjustment on the financial statements for 1999, which might have been determined to be necessary had we been able to audit the quantities of supplies as discussed in the third paragraph and on the financial statements for 2000 and 1999, had we been able to audit the value of donated artworks as discussed in the fourth paragraph, the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of Rama IX Art Museum Foundation as at December 31, 2000 and 1999 and the income and expenditure and changes in funds' equity for the years then ended in conformity with generally accepted accounting principles.


BANGKOK
March 15, 2001

Dr.Suphamit Techamontrikul
Certified Public Accountant (Thailand)
Registration No. 3356
DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.

Rama IX Art Museum Foundation
Balance Sheets
As at December 31, 2000 and 1999
Baht
2000 1999
ASSETS
CURRENT ASSETS
Cash in hand and at banks 1,328,536 342,842
Deposits at financial institutions 4,037,258 4,750,586
Supplies (Notes 4.2 and 5) 916,269 1,966,609
Other current assets 239,878 277,194
Total Current Assets 6,521,941 7,337,231
Equipment (Notes 4.3 and 6) 1,451,173 2,262,595
Art collection (Note 4.4) 14,499,598 13,921,598
TOTAL ASSETS BAHT 22,472,712 23,521,424
LIABILITIES AND FUND'S EQUITY
CURRENT LIABILITIES
Bank overdrafts - 4,850
Current portion of long-term debt (Note 7) 1,500,000 6,000,000
Accrued expenses 1,343,151 700,000
Foundation income tax payable 36,263 36,263
Other current liabilities - 13,059
Total Current Liabilities 2,879,414 6,754,172
Long-term loan (Note 7) 1,500,000 -
Total Liabilities 4,379,414 6,754,172
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 16,865,698 15,539,652
Total Fund's Equity 18,093,298 16,767,252
TOTAL LIABILITIES AND FUND'S EQUITY BAHT
22,472,712 23,521,424
Notes to the financial statements form an integral part of these statements
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Rama IX Art Museum Foundation
Statement of Income and Expenditure
For the Years ended December 31, 2000 and 1999
Baht
2000 1999
INCOME
Donation income 5,905,113 4,156,652
Donated artworks 578,000 350,000
Interest received 206,799 312,980
Management fee 77,600 211,875
Rental fee 42,750 105,025
Total Income 6,810,262 5,136,532
EXPENDITURE
Salaries and wages 1,533,640 1,178,204
Rental fee 292,672 318,500
Remuneration to donor 1,094,788 1,043,189
Professional fees 100,000 95,000
Depreciation 1,085,167 1,022,180
Miscellaneous expenses 673,291 659,968
Penalty on failing to repay debt on schedule 678,151 525,000
Foundation income tax 26,507 46,038
Total Expenditure 5,484,216 4,888,079
EXCESS OF INCOME OVER EXPENDITURE BAHT
1,326,046 248,453
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, 2000 and 1999
Baht
  2000 1999
Initial capital fund from donation
Beginning balance 200,000 200,000
Ending balance 200,000 200,000
Additional funds from donation
Beginning balance 1,027,600 1,027,600
Ending balance 1,027,600 1,027,600
Accumulated excess of income over expenditure
Beginning balance 15,539,652 15,291,199
Additions - Excess of income over expenditure 1,326,046 248,453
Ending balance 16,865,698 15,539,652
Total Baht 18,093,298 16,767,252
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, 2000 and 1999

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 local and international artistic and 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 OF FINANCIAL STATEMENTS

The Foundation prepares its statutory financial statements in the Thai language in conformity with accounting standards in Thailand.

The Foundation does not present the statement of cash flows for the years ended December 31, 2000 and 1999 due to consideration that the cash flows statement is not relevant to the decision making of users of financial statements and the cost of preparing the cash flows statement may exceed the benefits derived from such statements.

4. SIGNIFICANT ACCOUNTING POLICIES

4.1 Income and expenditure recognition
Income and expenditure are recognized on an accrual basis, except for income from donation, which is recognized on cash basis.

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

4.3 Equipment is stated at cost.
Depreciation is calculated by the straight-line method, based on the estimated useful lives of the assets as follows:
Exhibition equipment 5 years
Office equipment 5 years

For office equipment, which was transferred from the Golden Jubilee Art Celebration, depreciation is based on its remaining life.

4.4 The artworks transferred from the Golden Jubilee Art Celebration as well as donated by artists, are estimated by individual artists.

5. SUPPLIES

Supplies consist of the following :

2000 1999
T-shirts 484,781 827,550
Art in the Reign of Rama IX Books and art catalogues 431,488 1,139,059
Baht 916,269 1,966,609

Supplies will be given to donors who provide the Foundation with financial support in the future.

6. EQUIPMENT

Equipment consists of the following :

Balance
December 31,
1999
Additions/
Transfer in
(Disposals)
(Transfer out)
Balance
December 31,
2000
Cost :
Equipment used at exhibition 3,783,306 - - 3,783,306
Office equipment 1,532,465 273,745 - 1,806,210
5,315,771 273,745 - 5,589,516
Accumulated depreciation :
Equipment used at exhibition (2,269,983) (756,661) - (3,026,644)
Office equipment (783,193) (328,506) - (1,111,699)
(3,053,176) (1,085,167) - (4,138,343)
Equipment-net 2,262,595 1,451,173
2000 1999
Depreciation for the year Baht 1,085,167 1,022,180

7. LONG-TERM LOAN

Long-term loan consists of the following :

2000 1999
Loan to be repaid every year for the total of 2 repayment periods, the first period starting on July 21, 2001 and the last period ending on July 21, 2002. 3,000,000 -
Loan to be repaid every 4 months for the total of 6 repayment periods, the first period starting on June 30, 1999 and the last period ending on February 28, 2000. - 6,000,000
Less Current portion (1,500,000) (6,000,000)

Baht

1,500,000 -

The above mentioned loan is provided by the Office of the National Culture Commission to support the production of 200 sets of Art in the Reign of Rama IX Books in the Golden Jubilee Art Celebration. There is no interest charge for the period of one year from March 1, 1997 to February 28, 1999. Failure to meet debt repayment schedule will result in a penalty charge of 15% per annum of the overdue amount.

Such loan is under personal guaranty of members of the Board of Directors. Lender has the rights to call back part or the whole amount of loan before its maturity. Debt repayment must be made within 30 days from the date receiving notice from the lender.

The Foundation did not repay debt due in full. However, the Foundation has recorded penalty on failing to repay debt on schedule for the years ended December 31, 2000 and 1999.

At the present, the Foundation is negotiating to decrease penalty on failing such loan agreement with the National Culture Commission.


8. DISCLOSURE OF FINANCIAL INSTRUMENTS

The Accounting Standards No. 48, "Financial Instruments : Disclosure and Presentation" requires certain fair value disclosures. Considerable judgement is necessarily required in estimation of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amount that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value. The following methods and assumptions were used by the Foundation in estimating fair value of financial instruments.

Cash in hand and at banks, deposits at financial institutions and other current assets; the carrying values approximate their fair values.

Accrued expenses and other current liabilities; the carrying values approximately their fair values.

As at December 31, 2000, the carrying values of the financial liabilities which are different from the fair values are as follows :


Carrying Value Fair Value
Financial liabilities
Long-term loan including current portion due within 1 year 3,000,000 2,656,671

The fair value of long-term loan is estimated using present value of cash flows based on discount rate of 8.5%.

9. Year 2000 Problem (Unaudited-Not covered by the report of the independent certified public accountants)

The Foundation had modified its computer systems to address the Year 2000 problems and evaluated its impact. To date, the Foundation has not experienced any material impact on its operations.


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