2. Auditor Report on Fiscal Year 2015
Auditors, Manfred Kühne and Andreas Grauer, audited the 2015 end of year fiscal report on 02-02-2016. The audit was conducted at the JGHV office in Leinefeld-Worbis, Triftstraße 22.
The end of year report concurs with the balance statement for the fiscal year beginning on 01-01-2015 and ending on 12-31-2015. The balance statement was made available by JGHV Business Manager Jan Schafberg.
The audit was conducted in accordance with §16 of the JGHV By-laws which requires accounting methods are in accordance with relevant laws, the JGHV By-laws and the cost-effective allocation of funds, including mathematically correct calculations in an appropriate accounting application.
Each record on payables and receivables was reviewed, and select items/receipts were being checked randomly. Where questions arose, the Business Manager explained further and, when necessary, made additional documentation available for clarification.All records were available for review during the audit.
It is confirmed that the business office has used proper and transparent methods for the accounting system.
The 2015 debit of(-) € 76.317.34 is notably higher than the budgeted debit for 2015 of (-) € 50.000.00.There was notable cost increases for these items. Reasons for the higher cost provided by the Business Manager are shown in parentheses.
Duck Study (higher overall cost, charge for an additional legal opinion)
Shows/Exhibitions (expenses for 2014 & 2015 Hannover Showswere absorbed by the 2015 budget; increased cost for participation in the 2015 "Green Week" Exhibition)
Operating Cost(dual burden of new digital data processing in the Studbook Keeper’s office)
Digital Data Processing (Budget 2015 absorbed 2014 and 2015 expenses, additional cost for transitioning/updating the old software in the Studbook Keeper’s office.)
Hunters‘ and Hunting Dog(two new associations were founded and were linked with Associations highercost for promotional assistance and travel expenses)
Attorney Fees(non-budget cost for revision and legal review of new by-laws, court costs, trademark protection costs for logo (Sperlingshund)
The auditors point to §19(2), sentence 2 of the by-laws(applicable in fiscal year 2015) dealing with association assets and request that this paragraph be complied with.
The end of year report applies the principles of proper accounting methods and presents an actual picture of JGHV’s financial status. Fixed term deposits have been invested securely at the best available interest rates.
Taking into consideration all of the above, the operatingefficiency of JGHV is strained. We found that the accounting system and end of year report comply with legal requirements and § 16 of the JGHV By-laws in terms of mathematical correctness.
The following issues are noted as a result of the 2015 budget audit:
There has been a notable reduction in association assets over the past 4 years. In early 2012, assets were at € 310.346.89, whereas at the end of 2015, these had decreased to € 192.936.91 (-37.8%).
Even when considering the plausible reasons for the reduction in funds (transition in the Studbook Keeper office, new software, duck study) it must be the future goal to achieve a more balanced end of year report.
1)The auditors recommend that each payable be marked with the name of the budget item from which payment will originate. This will help in identifying and understanding the postings.
2)The auditors of the 2012 end of year report requested that the study of "Consideration of Animal Welfare vs the Necessity of Training Hunting Dogs with Live Ducks" be amended by a contract between the Foundation for Hunting Science e.V. and JGHV. Originally, this contract was to establish the rules for the study reports (interim and final reports), publication of the study results and payments (conditions and due dates for up-front and final payments). This information was taken from the 2012 auditor report. This has not happened. A contractual agreement regulating, in particular, the rights and duties of the contracting parties as well as the up-front and final payments would have greatly contributed to establishing the basis for the final payment for the study.
So far, the cost for the study, including the modified concept after the study had already begun, at this time reflects an amount of € 47.000 which has been paid. This amount exceeds the budgeted cost by € 12.000 (+ 34.3%). (The cost budgeted for the initial concept of the study was € 35.000.)
3)The software in the Studbook Keeper’s office needed to be updated. This is underway. A performance contract must be signed with the software developer in which the work to be performed is clearly outlined, including right and duties of the contracting partners as well as the cost of the contract.
4)The reimbursement procedure for travel expenses has been the topic of much discussion in the past. The auditors do not deem it correct that the EC has decided, without the approval of the General Meeting, that JGHV will assume any excess tax that might become due for members when serving in an honorary capacity. See minutes of the EC meeting on March 19th, 2010, paragraph 4, sentence 2. Since this policy most likely appies to members of the EC only, the auditors request that it be approved by the General Meeting. For the 2015 fiscal year, the tax commitment by JGHV to its EC members was € 470. The Auditors request that this amount be returned.
Leinefeld – Worbis, den 02. Februar 2016
Manfred Kühne Andreas Grauer