Staff Team

PIND’s (the Foundation) principal activities are to engage in activities which empower communities to achieve a peaceful and enabling environment for equitable economic growth in the Niger Delta. These activities include training and capacity building, workshops, implementing agricultural and community development programs, micro small and medium enterprises development, market linkages and providing sub grants to market actors and CSOs.

The financial statements of the Foundation for the year ended 31 December 2020 have been prepared in accordance with International Financial Reporting Standards (IFRSs), except for the use of statement of activities in place of statement of profit or loss and other comprehensive income, statement of changes in net assets in place of statement of changes in equity in order to suit the IFRS terminologies for not-for-profit organizations.

The financial statements were authorized for issue by the Board of Trustees of PIND on ….., 2021.

The financial statements have been prepared on historical cost basis.

The accrual basis of accounting has been used unless otherwise stated and the financial statements have been prepared on a going concern basis.

The deferral method of recognizing contributions has been applied in preparation of the Foundation’s financial statements as no separate funds are reported.

(a) Functional and presentation currency

These financial statements are presented in Nigeria Naira, which is the Foundation’s functional currency

(b) Use of estimates and judgement

The preparation of the financial statements in conformity with IFRS requires management to make judgement, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgement about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

4. Summary of Accounting Policies

(a)       Revenue

Revenue comprises grants received from NDPI and other sources.

Revenue is recognized when the amount of revenue can be measured reliably, and when the criteria for each of the entity’s different activities have been met. Details of the activity- specific recognition criteria are described below.

(i)        Grants from Niger Delta Partnership Initiative (NDPI) & Other Sources

The foundation’s programs are supported by grants received from the Niger Delta Partnership Initiative (NDPI) based in the U.S. Grants are received when requests are made upon submission of the required documents. Revenue is therefore recognized as at the time of receipt.

 (ii)      Interest income

Interest income is recognized as it accrues, using the effective interest method. The Foundation receives interest on its deposit.

(iii)      Grants and Government grants

Donations or grants are sometimes received on the condition that specified services are delivered, or conditions are fulfilled. Revenue is recognized as services are performed or conditions are fulfilled and at year-end a liability is recognized for those amounts where conditions are not satisfied.

Revenue from non-reciprocal donations or grants that are not subject to conditions are recognized when the entity obtains control of the funds, economic benefits are probable and the amount of the donations or grants can be measured reliably.

Donations or grants can be received in monetary or non- monetary terms. Non- monetary grants or donations are recognized at fair value at the date of donation or grants.

The Foundation currently does not receive government grants

(b)       Foreign currency transactions

Transactions in foreign currencies are converted into Naira at the rate applicable at the transaction date. At each reporting date, monetary assets and liabilities are translated at the closing rate and the resulting exchange differences are recognized as ‘other income’ (exchange gain) or ‘other expenses (exchange loss)

(c)        Operating expenses

Operating expenses are recognized in statement of activities upon utilization of the service or at the date of their incidence.

(d)       Income tax

The Foundation is exempted from income taxes due to its non-trading status in view of its registration as an Incorporated Trustee under Part C of CAMA 2020 and its Partnership with NDPI which has a subsisting tax-exempt status with the National Planning Commission.

 (e)       Property, Plant and Equipment

(i)        Recognition and measurement

Property plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses, if any.

The cost of donated items of property, plant and equipment is the fair value at the date the Foundation obtains ownership and/or possession.

Self-constructed assets in the course of construction for operational and administrative purposes are carried at cost less any recognized impairment loss. Cost includes, direct costs, appropriation of material and other overhead associated with the production of the assets, professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the foundation’s accounting policy. Such properties are classified to the appropriate property, plant and equipment and depreciation commences when the assets are ready for their intended use.

Maintenance and repairs are generally charged to expense during the financial period in which they are incurred. The Foundation recognizes its items of property, plant and equipment using historical cost value.

Losses or gains on disposal of assets are recognized in the statement of activities under gains and losses on disposal.

 (ii)      Subsequent cost

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Foundation and its cost can be measured reliably. The costs of the day-to-day servicing of property and equipment are recognized in the statement of activities as incurred.

(iii)      Depreciation

Depreciation is recognized so as to write off the cost or valuation of assets (other than freehold land and properties under construction), less their residual value over their useful lives, using straight line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each period, with the effect of changes in estimate accounted for on a prospective basis. An asset’s carrying amount is written down immediately to its estimated recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Freehold land is not depreciated. Depreciation on other assets is charged to the statement of activities on a straight-line basis to write down their cost or re-valued amounts to their residual values over their estimated useful lives as follows:

Building –  2 %

Motor Vehicles  – 25 %

Furniture and fittings  – 25 %

Office and communication equipment – 25 %

Tools, machine and equipment  – 25 %

Where the cost of a part of an item of property, plant and equipment is significant when compared to the total cost, that part is depreciated separately based on the pattern which reflects how economic benefits are consumed.

Property, plant and equipment under construction are not depreciated until they are put to use.

(iv)      De-recognition

An item of property, plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of activities in the year the asset is disposed of.

(v)       Impairment

Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up shall be included in the statement of activities when the compensation becomes receivable.

 (vi)     Cash and cash equivalents

Cash and cash equivalents comprise deposits with banks, cash at hand and highly liquid financial assets with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value. The Foundation’s ARM Money Market Fund on behalf of the Consultants and Grant funds qualifies as cash and cash equivalent because it is a money market instrument with maturity period within three months.