Financial Report

Auditor's Report

International Union Against Tuberculosis and Lung Disease Charitable Organisation

Registered office: 68 boulevard Saint-Michel – 75006 Paris

Statutory auditor’s report on the financial statements for the year ended 31 December 2018

To the General Assembly of the International Union Against Tuberculosis and Lung Disease,

In compliance with the engagement entrusted to us by your General Assembly, we have audited the accompanying financial statements of the International Union Against Tuberculosis and Lung Disease for the year ended on 31 December 2018.

In our opinion, the financial statements give a true and fair view of the assets and liabilities and of the financial position of the organisation as of 31 December 2018 and of the results of its operations for the year then ended in accordance with French accounting principles.

Basis for opinion

Audit framework

We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the Statutory Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

Independence

We conducted our audit engagement in compliance with independent rules applicable to us, for the period from 1 January 2018 to the date of our report and specifically we did not provide any prohibited non-audit services referred to in the French Code of Ethics for Statutory Auditors.

Material Uncertainty Related to Ongoing Concern

We draw attention to the page six of the notes to the financial statements which describes the material uncertainty resulting from events or conditions that may cast significant doubt on the company’s ability to continue as an ongoing concern. Our opinion is not modified in respect of this matter.

Justification of assessments

In accordance with the requirements of Articles L 823-9 and R 823-7 of the French Commercial Code relating to the justification of our assessments, we inform you of the following matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period.

These matters were addressed in the context of our audit of the financial statements as a whole, as informing our opinion thereon, and we do not provide a separate opinion on specific items of the financial statements.

Accounting estimations

In accordance with paragraph nine of NEP 702, the statutory auditor justifies its assessment of the significant accounting estimates made by the Management of the audited entity, in particular those lacking objective data and thereby involving the exercise of professional judgment in their appreciation.

Dedicated funds

Your organisation sets up dedicated funds, such as presented in note n°3.2.3 of the financial statements, external funding received and allocated to a specific project meets the criteria laid down by the French accounting rules and principles.

Our audit includes review by sampling tests the calculations made and validate the coherence of variation in dedicated funds of Balance Sheet and those in the Income Statement.

Contingencies and loss provisions

Your organisation sets up provisions against exchange losses and provisions for disputes, such as mentioned in note n°3.2.2 of the financial statements.

Our audit includes evaluating of the appropriateness of the data and the hypotheses on which these estimations are based, to review by sampling tests the calculations made by the organisation, to compare the accounting estimations of the previous periods with the corresponding realisations.

These assessments were made as part of our audit of the financial statements, taken as a whole, and therefore contributed to the opinion we formed which is expressed in the first part of this report.

Depreciation of receivables

The accounting policies and methods used to assess the value of receivables are described in note 3.1.4 of the financial statements on the policies and methods of valuation of asset items.

As part of our assessment of the significant estimates used in preparing the financial statements, we assessed the approach adopted by the Association described in notes 3.1.4.5 and 3.1.7 of the financial statement, and checked the chosen method. We have also verified that the financial information provided in this regard is appropriate.

Verification of the management report and of the other documents provided to the General Assembly

We have also performed, in accordance with professional standards applicable in France, the specific verifications required by French Law.

We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given [in the management report of the Board of Directors and in the other documents addressed to the General Assembly with the respect to the financial position and the financial statements.

Responsibilities of the management and those charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with French accounting principles 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 organisation’s ability to continue as an ongoing concern, disclosing, as applicable, matters related to ongoing concern and using the ongoing concern basis of accounting unless it is expected to liquidate the organisation’s or to cease operations.

The financial statements were approved by the Board of Directors.

Statutory auditor’s responsibilities for the audit of the financial statements

Our role is to issue a report on the financial statements. Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards 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 specified in Article L.823-10-1 of the French Commercial Code (code de commerce), our statutory audit does not include assurance on the viability of the organisation or the quality of management of the affairs of the organisation.

As part of an audit conducted in accordance with professional standards applicable in France, the statutory auditor exercises professional judgment throughout the audit and furthermore:

  • Identifies and assesses the risks of material misstatement of the financial statements, whether due to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit evidence considered to be sufficient and appropriate to provide a basis for his 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.
  • Obtains 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 internal control.
  • Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management in the financial statements.
  • Assesses the appropriateness of management’s use of the ongoing 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 organisation’s ability to continue as an ongoing concern. This assessment is based on the audit evidence obtained up to the date of his audit report. However, future events or conditions may cause the organisation to cease to continue as a going concern. If the statutory auditor concludes that a material uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosures in the financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein.
  • Evaluates the overall presentation of the financial statements and assesses whether these statements represent the underlying transactions and events in a manner that achieves fair presentation.

Paris La Défense, on 18 October 2019
KPMG S.A.

Bernard Bazillon
Partner

Download the auditor’s report

The above is a free translation into English of the statutory auditor’s report on the financial statements and is provided solely for the convenience of English-speaking users. The original document was issued in French and can be viewed here.

Download the report in French.