The independent company HLB PAKK-Audit conducted an audit of the annual financial statements for 2017 of the Russian Union of Rightholders (RUR) and the Russian Organization for Intellectual Property (VOIS). The package of documents includes the balance sheet as of December 31, 2017, a report on financial results, a target use report, as well as explanations of the balance sheet and the report.
“Despite the fact that audit reporting has become mandatory for CMO just recently, we on a voluntary basis have been conducting an independent audit of both financial and economic activities on an annual basis for several years,” said Andrey Krichevsky, Director General of the Russian Organization for Intellectual Property (VOIS) and the Russian Union of Rightholders (RUR). – We believe that this is not just an important element of our work, but a necessary tool for timely adjustment of organizations. It is important for us always to keep abreast of all processes not only of RUR and VOIS, but also of the sphere as a whole. We try to respond as quickly as possible to the requests of all interested parties – authors, right holders, users and regulators, to increase the efficiency and transparency of the work of societies.”
Recall that at the end of 2017, some federal laws were adopted in Russia which amended Part 4 of the Civil Code of the Russian Federation and aimed at increasing the transparency of the activities of collective management societies (CMO) which have state accreditation. The new standards provide for a mandatory audit in relation to the annual accounting and financial reporting of societies and reporting on special funds established by organizations. These data, together with the audit report, should be published on the website of CMO. Since January 2017, a statutory audit has been carried out in accordance with International Standards on Auditing (ISA). The purpose of the statutory audit is enshrined in the Federal rule (standard) of audit activity and is to express an opinion on the financial and accounting statements reliability of the audited entity in all material respects and on the compliance of the accounting procedure with the legislation of the Russian Federation. The new ISA requirements also include an increase in the data amount needed to analyze the activities of the audited entity and an increase in the publicity of audit results.
“We conducted the audit in accordance with International Standards on Auditing,” said Anatoly Olefirenko, General Director of HLB PAKK-Audit. – The annual financial statements reliably reflect, in all material respects, the financial position, financial performance and cash flows for 2017 of the Russian Organization for Intellectual Property (VOIS) and the Russian Union of Rightholders (RUR)”.
The final document notes that the audit company “HLB PAKK-Audit” concludes “on the legality of the business continuity assumption by the management of VOIS and RUR”.
The audit for the previous year 2016 was conducted by the company Consult-Audit, which also gave a positive opinion.
Andrey Krichevsky, Director General of VOIS and RUR, noted, that in comparison with 2016, the rates of royalties for 2017 increased at VOIS by almost 3%, and at RUR by 12%. «A major role in increasing the efficiency and financial performance of these societies was played systemic changes in the organization of their activities. So, we have reformed the system of fees, optimized management costs, are actively introducing technological innovation. In fact, we are creating a single digital network that will unite all the societies of right holders and will make the process of collecting and distributing royalties as transparent as possible, as well as take the management of copyright and intellectual property to a new level,” said Andrey Krichevsky.