AKMV Annual Report of a Foundation
QUESTION
I have recently established a foundation for my son. I happened to find out that I have to submit some kind of report every year. I don’t know by when or what kind of report it is. What should be included in it?
ANSWER:
When it comes to the annual report, two dates are important – the date of preparation and the date of publication.
The deadline for preparing the annual report is no later than June 30th of the year following the year to which the annual report pertains. For example, the annual report for 2018 must be prepared no later than June 30, 2019. The deadline may be shorter if determined by the board of trustees or by the foundation deed.
The second important date is July 15th, by which the annual report of the foundation must be filed in the public part of the Register of Financial Statements. So again, the foundation’s annual report for 2018 must be filed by July 15, 2019.
Failure to fulfill this obligation and to file the annual report can result in a fine of up to 1,000 EUR.
These deadlines arise from § 35 of the Act on Foundations. According to this provision, the annual report must include the following:
An overview of activities carried out during the reporting period, with reference to the foundation’s public benefit purpose
The annual financial statements, an evaluation of the basic data included in them, and the auditor’s opinion on the annual financial statements
An overview of income (revenues) by sources and origin
An overview of donors, if the value of donations or the amount from a single donor exceeds 331 EUR
An overview of individuals and legal entities to whom the foundation has provided funds for the public benefit purpose for which the foundation was established, and information on how these funds were used
Total expenses (costs), broken down by types of foundation activities, and separately the amount of expenses (costs) related to the administration of the foundation, including the decision of the board of trustees pursuant to § 28(1a), with breakdowns according to § 28(2) and (3)
Changes made to the foundation deed and to the composition of governing bodies that occurred during the reporting period
Remuneration for the performance of functions by the foundation’s administrator and any other governing body, if such were established by the foundation deed
An overview of the activities of endowment funds along with an overview of their resources
Other information as determined by the board of trustees
JUDr. Veronika Michalíková, MBA