37
USE OF FUNDS STATEMENT
Financial report
Use of funds Use of funds 1- ASSOCIATION’S PURPOSE France & Europe Developing countries - Morocco
Headquarters The budget amounted to €9.7 million. This is comparable to its 2013 level, with 2014 having seen a substantial rise in the volume of activities in Central Asia. Since 2014, the foremost region for GERES activities has been Central Asia, with one third of total use of funds, followed by South-East Asia which has historically been one of the primary focuses of our work. Other uses were distributed equally between the Europe-Mediterranean and West Africa regions and the cross-cutting Expertise unit.
Operating and fundraising costs accounted for 13% of the total budget, an increase reflecting the fact that this was an important year of transition for the association, with the arrival of a new Executive Director and the creation of the position of Deputy Executive Director.
13%
34%
11%
12% GERES Expertise
GERES posted a surplus for the 2015 financial year, with an exceptional bottom line (cf. box below) of €241,000, confirming the trend begun in 2014. This is in line with the association's financial strategy to strengthen own funds.
The bottom line
Prospects
Over the last few years, the association has been forced to acknowledge the weakness of its financial structure, mainly in terms of the inadequate level of its own funds, with direct repercussions on its cash flow.
Strengthening its financial capacity remains a strategic objective for GERES.
Given that analysis revealed a very clear need to consolidate financing, GERES set itself the objective of achieving a result that would allow it to meet that need. With the New Lao stove project having finished, it was therefore decided for the first time in 10 years to include some of the income from the sale of the remaining carbon credits in the bottom line. The €227,000 generated by these carbon credit sales, representing less than 3% of the income from carbon finance since GERES entered this field, accounts for the bulk of the €241,000 surplus.
2016 is likely to be the last year in which significant sales of stocks of carbon credits arising from completed projects can be expected and these will be treated in accounting terms in the same way as in 2015. To build a stronger future, efforts are ongoing to ensure better coverage of the association's expenditure through the various projects it implements, by extracting more value from our expertise and raising general rather than dedicated funds.
8,214,148
2014 85 %
9,580,909
Allocation of donations collected from the public in 2015
-14 %
45,395
89 %
533,153
846,787
-37 %
3,882
7,680,995
8,734,123
-12 %
41,513
500,484
158,154
216 %
489
1,127,239
-9 %
19,431
- Central Asia
3,175,876
3,759,620
-16 %
10,841
- South-East Asia
1,837,946
2,394,829
-23 %
10,752
- Expertise
1,140,968
1,294,281
-12 %
2- FUNDRAISING COSTS
96,946
- Costs of appeals to the public for donations
10,825
- Other private fundraising costs
86,121
TOTAL USE OF FUNDS IN €
1 %
100,674
1 %
-4 %
37,974
11,797
-8 %
10,825
88,877
-3 %
27,149
13 %
-
1,138,585
12 %
1,009,658
9 %
241,526
2 %
28,237
0,3 %
9,691,205
100 %
10,719,478
100 %
-10 %
Total use of funds collected from the public TOTAL ACTUAL USE OF FUNDS IN € (excluding surplus, stock, provisions, outstanding commitment) Actual uses of funds fell by 14% between 2014 and 2015. They are, however, above their 2013 level, with an actual operating budget of €8.6M in 2015. This budget corresponds to expenditure actually committed; it does not include provisions, dedicated funds, stock variations or the surplus for the year. — The decrease affects all regions, with the exception of activities in Morocco. These have been developing strongly as the SUDEP sustainable city project gets under way with EU funding of €1.1 million over three years. The sustainable hammams project, supported by the French Global Environment Facility (FFEM) with €1M co-funding, has entered its second year, with significant development of its activities. — Central Asia continues to be the foremost region for our activities, in the shape of the Central Highlands rural development programme implemented
83,369 8,552,484
88 %
9,899,862
92 %
in Afghanistan in partnership with two other NGOs and funding from the French Development Agency (AFD). — Since 2014, South-East Asia and Europe have seen the end of important programmes, such as the New Lao Stove and Sustainable Forest Management and Achieve programmes in South-East Asia and Europe respectively, which explains the significant decline in uses of funds in those regions. — The West Africa region is experiencing a second year of transition, with the end of the Alterre Jatroref project to be followed by the relaunch of several projects in the Koutiala region in 2015 and 2016.
-14 %
under the Programme Agreement co-funded by the French Development Agency (AFD) to the tune of €1.8 million will only realize its full potential in 2016. — Operating costs, in the amount of €1.1 million, account for 12% of the total budget. They are back at a level commensurate with needs in terms of support functions to back up activities in the field and consolidate GERES economic model. This development is illustrated by the creation of two new positions, in financial control and senior management. For three years now, fundraising costs have been maintained at the level of 1% of the total budget.
— After a busy year in 2014 on the StovePlus project and the Climate and Development Committee advocacy project, use of funds by the Expertise unit fell by 12%. Although it began in the last quarter of 2015, the ECODEV programme
Operating costs 12 %
Distribution of uses in 2015 Operating costs, in the amount of €1.1 million, account for 12% of the total budget. They are back at a level commensurate with needs in terms of support functions to back up activities in the field and consolidate GERES economic model. This development is illustrated by the creation of two new positions, in financial control and senior management. For three years now, fundraising costs have been maintained at the level of 1% of the total budget.
Fundraising costs 1%
Surplus for the year 2%
France & Europe 6% Developing countries 79 %
Association’s purpose: 85 %
36
Variation 2015 - 2014
1,025,721
SURPLUS OF THE FINANCIAL YEAR
19%
2015
- West Africa
3- OPERATING COSTS
11%
Financial report
HQ costs: 13 %
Surplus: 2 %