ITF

44 I ITF FINANCIAL STATEMENTS INTERNATIONAL TENNIS FEDERATION • ANNUAL REPORT AND ACCOUNTS 2015 Further comment on Investments is provided below. Consolidated Statement of Financial Position Investment in Information Technology continued in 2015 at $0.7m (2014: $0.7m) with expenditure on projects which either support income generating activity or improve the effi ciency of business operations. These included the introduction of live score data capture at all Davis Cup and Fed Cup zone group ties and presentation of this data on the Davis Cup and Fed Cup websites; the development of a new online system to manage the ITF Court Pace Classifi cation Programme; and the extension of tournament management systems to automate operations and results capture at ITF team events, as well as the continued development and enhancement of our other websites, online services, core operations and data management systems. Total trade and other receivables increased by $0.7m to $11.6m in the year (2014: $10.9m). This is partly due to a timing difference; some sponsorship invoices before the year- end in 2015 as opposed to after the year-end in 2014. In addition, television debtor balances have increased refl ecting the market challenges in recovering television related monies on a timely basis. Other fi nancial assets represent the ITF investment portfolios, Olympic deposits and assets on forward contracts entered into for hedging purposes. The forward contracts are cash fl ow hedges and have been treated in the accounts as described in note 5(n), with the fair value adjustment arising at 31 December 2015 being taken to reserves due to Hedge Accounting being adopted. Further detail is provided in note 26 to the fi nancial statements. The value of the investment portfolio at 31 December 2015 was $39.8m, a decrease of $1.0m in the year after fees. The ITF Reserves Policy provides funds for long term fi nancial stability as well as holding some funds for investment in strategic initiatives. The investment guidelines refl ect the long term objective; returns, whether positive or negative, should therefore be viewed in this context. Cambridge Associates have reaffi rmed that our investment strategy remains appropriate to the long term strategic aims. The Olympic deposits are invested in high quality bonds and cash deposits which will mature and be utilised evenly over the Olympic cycle to meet operating requirements. Cash and cash equivalents reduced by $0.3m from the negative cash fl ow from operations of $2.0m plus the effect of purchasing new fi xed asset additions in the year of $1.1m, offset by the receipt of a drawdown from the Olympic deposits of $2.6m. Total trade and other payables reduced by $0.6m to $21.7m in the year (2014: $22.4m). As shown in note 27, deferred income fell by $3.8m due to the release of the last portion of the London Olympic Games income of $6m, offset by an increase of deferred sponsorship income of $2m due to the timing differences of sponsorship invoices raised in line with the increase in debtors and the increased 2016 sponsorship income. Other fi nancial liabilities represent the liabilities arising on forward contracts entered into for hedging purposes. The forward contracts are treated as described above. Further detail is provided in note 31e. Rene Stammbach Chairman of the Finance Committee Report of the Chairman of the Finance Committee

• Cover