FINANCIAL REPORT EDITION 2015
Médecins du Monde 2015 Financial Report
A WORD FROM THE TREASURER In 2015, the organisation pursued its growth through the development of its social programmes in France and abroad: the Syrian crisis, the emergency in Nepal, migration projects in France, etc. The year ended with a small €265k surplus, following two financial years of deficit in 2014 (-€2.9 million) and 2013 (-€0.4 million). This surplus includes €207k of expenses relating to innovative projects for the French Operations. If the General Assembly agrees to allocate these expenses to the mission statement approved last year, the surplus will go from +€265k to +€473k.
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Several cyclical factors account for this result: The emergency situation in Nepal which generated €3 million worth of resources; A favourable exchange rate compared to the one forecasted in the budget construction; Non-budgeted life insurances. Following the €2.9 million extraordinary deficit in 2014, decisions were taken to improve our financial management on two fronts: the management of legacies and other donations (e.g. life insurances) on the one hand, and the management of donor contracts on the other. Following these decisions, our Legacy department has been reorganised and our donor contracts (public and private) are being very carefully managed since they account for 50% of our budget. Our financial risk unit was effective in sounding the alarm bell by notifying the people in charge of operations. Growth in 2015 The budget of Médecins du Monde experienced a 40% increase over the last over 4 years. We hope to pass the €100 million threshold in 2016. This growth is primarily operational. It is a global growth and takes in it its stride that of our partners and of our international network. This growth was made possible thanks to the commitment of our donors, who have supported us and responded to our advocacy campaigns both during the Nepal earthquake as well as during our campaign for migrants’ rights to health. This trend is backed up by the improvement of the 2015 ratio between the total income from our public generosity/the cost of appealing to the generosity of the public. The French public but also Europeans are showing their support, therefore confirming our prior decisions to invest in developing our international network; the latter brought us €2 million in 2015. The growth relies on a balanced funding between individual donations and grants provided by donors. Just as in 2014, the donors keep on showing their support, especially during emergency situations (e.g. for the Syrian crisis) but not only: the coverage provided by donors for French and international programmes slightly improved, allowing us to free funding for innovation (migrants in Greece, Italy, HCV medicines in Georgia, prison in Nantes, unaccompanied foreign minors in Caen and Paris). This growth is a testimony to the strong commitment of our teams, without which nothing would be possible. We have increased our human resources capacities to make sure our programmes are in good working order. The payroll for the employees under French law increased in 2015 by 11%. Expenses for national staff in our countries of intervention are increasing even faster (+22%). Nonetheless, volunteering is still at the heart of our organisation: 182 113 hours were declared but the real number of volunteering hours is probably higher. The estimated value of volunteering would correspond to a remarkable €4.3 million.
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MĂŠdecins du Monde 2015 Financial Report
2016 draft budget The board decided to present a balanced budget for 2016: To strengthen our own funds and ensure the financial solidity of our organisation, as requested by our donors in the light of our significant general growth; - To make our budget consistent with the political areas set by our strategic plan. -
Stakes in 2016 Our action plan derives from our strategic plan. In 2016, we will make sure that the various objectives of this plan, for which the budget was approved, are met. We will do so by reinforcing the steering committees’ arbitration function as well as by carefully focusing on our long-term commitments. We will endeavour to keep on improving our financial management tools by strengthening our Financial Management and Information System Directorate (DFSI) since our ability to monitor financial flows within the organisation is one of the major components behind our legitimacy. We must keep calling on donors, since they represent far more than a simple mean to maintain our independence; they are also a constituent of our activist network. Over the last 4 years, MÊdecins du Monde has expanded, spurred by chronic crises, sustained by the commitment of its stakeholders, volunteers, employees and partners, embodied by a unique political discourse in a humanitarian sector that is becoming increasingly regulated and where activism should be before anything else about creating coalitions in order to defend strong common causes.
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Médecins du Monde 2015 Financial Report
CONTENTS
Part 1: The Statutory Auditor’s Report on Médecins du Monde’s Annual Accounts for the financial year ended on the 31st of December 2015 The Statutory Auditor’s Report 2015 Balance Sheet 2015 Income Statement 2015 Annual Income and Expenditure Statement: funds raised from the general public Part 2: Analysis of the 2015 Accounts
Part 3: Special Report on Regulated Agreements
Part 4: 2016 Budget
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Médecins du Monde 2015 Financial Report
Part 1 The Statutory Auditor’s Report on Médecins du Monde’s Annual Accounts for the financial year ended on the 31st of December 2015
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MĂŠdecins du Monde 2015 Financial Report
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MĂŠdecins du Monde 2015 Financial Report
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MĂŠdecins du Monde 2015 Financial Report
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Médecins du Monde 2015 Financial Report
2015 BALANCE SHEET
ASSETS
DEPREC + AMORT
GROSS
FIXED ASSETS Intangibles Licenses, patents etc. Advances and downpayments
693 736 0
NET 2015
596 098 0
Net 2014
1 206 101 7 701 579 11 620 754 310 238
0 5 651 236 10 922 695 0
2015
EQUITY Statutory funds 112 222 Gratuities/Bequests 0 General intervention reserve Associative project reserve Balance brought forward Capital grant 1 206 101 Surplus allocated to investments
97 638 0
Tangible assets Land Buildings Other fixed assets Fixed assets in progress
LIABILITIES
1 206 101 2 050 343 698 059 310 238
2 175 604 531 847 33629 (-) DEFICIT or (+) SURPLUS
Investments
15 245 0 15 259 804 420 000 0 4 745 0 15 699 794
15 245 0 18 789 389
265 082
-2 923 877
15 964 876
15 699 793
1 906 084
1 049 247
1 305 621
227 745
69 211 2 762 459 4 454 381 70 438 7 185 165
34 485 3 728 803 4 105 717 121 179 7 503 004
18 002 646
22 067 384
TOTAL II
32 544 300
37 560 572
TOTAL III
0
0
51 720 881
54 537 357
Subtotal
TOTAL I
Other long-term securities Loans Other investments TOTAL I CURRENT ASSETS
20 962
0
20 962
607 706 717 533 22 878 609
0 0 17 170 029
607 706 717 533 5 708 580
20 961 PROV. for liabilities and Charges 556 489 648 625 DEDICATED FUNDS 5 285 478
341 691 19 502 608 4 350 261 21 340 043
17893 331 026 0 0
323 798 19 171 582 4 350 261 21 340 043
826 617
0
826 617
TOTAL II
46 361 220
348 919
46 012 301
49 251 879
TOTAL III Translation adjustments TOTAL IV
0
0
0
0
0
0
0
0
69 239 829
17 518 948
51 720 881
54 537 357
Stocks of medicines & med. Other receivables Securities Cash ADJUSTMENT ACCOUNTS Prepaid charges
268 444 25 974 328 5 048 118 17 249 237
2014
CURRENT LIABILITIES Bank borrowings (1) Supplier accounts payable & rel. acnts Tax and social liabilities Fixed asset liabilities & related acnts Other liabilities
-185 709 4 745 0 18 623 670
ADJUSTMENT ACCOUNTS 711 751 Deferred income
Deferred charges
TOTAL ASSETS
Translation adjustments
- Received commitments, net bequests to be processed : € 5 171 089
TOTAL LIABILITIES (1) Including bank overdraft : € 69 211
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MĂŠdecins du Monde 2015 Financial Report
2015 INCOME STATEMENT Operating income Institutional grants Private grants Office grants (from private fundraising) Office grants (none private fundraising) Donations in kind Bequests Corporate fundraising Subscriptions Events income Other revenue Transfer of operating costs TOTAL I : Operating income
On 31/12/15 39 193 695 2 697 472 1 928 299 396 564 37 931 882 6 098 881 401 067 39 820 25 243 327 359 512 439 89 552 721
On 31/12/14 31 562 518 2 746 064 1 125 851 0 34 311 459 3 529 022 88 517 45 676 14 949 590 525 351 295 74 365 877
Operating expenses Purchase of raw materials and other supplies Movement in stock of medicines & med. suplplies Other purchases and external charges Taxes, duties & related Salaries & payroll Payroll taxes Depreciation and amortization On fixed assets On deferred charges Provisions and other allow ances/current assets Grants accorded by the Association Other expenses
On 31/12/14 12 970 167 -93 193 29 538 419 2 577 203 26 284 218 7 085 917 0 452 593 0 1 622 024 8 029 357 424 484
On 31/12/14 13 126 615 -143 948 35 136 282 2 243 500 13 983 379 6 063 678 0 419 686 0 694 627 4 791 117 733 892
88 891 190
77 048 828
661 531
-2 682 952
TOTAL II : Operating expenses 1- Operating Income/Loss (TOTAL I) - (TOTAL II) Financial income Income from other investments and loans Other interest and similar income Foreign exchange gains Net income on disposal of investments and loans Reversal of provisions TOTAL III : Financial income
On 31/12/15
Financial expenses Amortization and depreciation Interest and similar expenses Foreign exchange losses Net expenses on disposal of securities investment TOTAL IV : Financial expenses
On 31/12/15 72 349 31 625 215 0 697 594
2 - Financial income/loss (TOTAL III) - (TOTAL IV)
0 57 954 1 304 795 13 280 0 1 376 030
678 435
Extraordinary income On management operations On capital transactions Reversals of provisions TOTAL V : Extraordinary income
On 31/12/15 23 736 6 423 30 159
On 31/12/14 6 041 26 193 0 32 234
Extraordinary expenses On management operations On capital transactions Amortization and depreciation TOTAL VI : Extraordinary expenses
On 31/12/15 5 704 0 0 5 704
On 31/12/14 211 463 0 576 212 040
24 455
-179 805
21 464
5 561
227 745
276 416
1 305 621
227 745
TOTAL INCOME (I + III + V+ VIII)
91 186 654
74 956 399
TOTAL EXPENSES (II + IV + VI + VII + IX)
90 921 572
77 880 276
265 082
-2 923 876
6 057 470
6 076 151
3 - Extraordinary items (TOTAL V) - (TOTAL VI)
On 31/12/14 0 56 097 195 183 30 593 0 281 872 On 31/12/14 0 63 385 866 173 386 102 -104 229
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TOTAL VII : Corporate income tax
TOTAL VIII : balance carried forward from previous year TOTAL IX : Commitments of expenditures to be relised on earmarked funds
(-) DEFICIT or (+) SURPLUS
Benefits in kind
Médecins du Monde 2015 Financial Report
1.
KEY EVENTS IN THE FINANCIAL YEAR
2.
CHANGES IN PRESENTATION, VALUATION OR ACCOUNTING METHODS
3.
ASSOCIATIVE PROJECTS
4.
ACCOUNTING RULES AND METHODS
5.
TANGIBLE AND INTANGIBLE FIXED ASSETS 4.1 - Fixed assets movements table 4.2 - Depreciation table 4.3 - Net book values table
6.
FINANCIAL FIXED ASSETS
7.
STOCK
8.
STATEMENT OF END-OF-YEAR CLAIMS
9.
ACCRUED INCOME
10. LIQUID ASSETS 10.1 Marketable values 10.2 Banks and cash funds 11. PREPAID COSTS 12. ORGANISATION’S OWN FUNDS 13. TABLE OF PROVISIONS 14. EARMARKED FUNDS 15. STATEMENT OF END-OF-YEAR DEBTS 16. TABLE OF LEGACIES AND DONATIONS IN PROGRESS 17. ACCRUED LIABILITIES 18. DEFERRED INCOME 19. OFF-BALANCE-SHEET COMMITMENTS 20. EMPLOYEE STATISTICS 21. OPERATING EXPENSES: DETAILS 22. OPERATING INCOME: DETAILS 23. INCOME AND EXPENDITURE STATEMENT 10
Médecins du Monde 2015 Financial Report
These Annual Accounts were approved by the Board of Directors at their meeting of 29th April, 2016.
1.
KEY EVENTS IN THE FINANCIAL YEAR
The financial year was characterized by a marked increase in our activities. Operating expenses increased by 12 M€ (+16%). Our social programs grew by 9M€ (+15%) mainly due to emergencies (Nepal, Syrian crisis, Iraq…) and due to the expansion of our programs in Africa (Ivory Coast, DRC…) and in France (Calais emergencies, migration programs…). Given that the majority of the funding for the latter came from contracts with funding agencies, publicsector grants increased by 24% over the financial year. The ratio public-sector grants/private grants stays almost equivalent compared to last year because income from the general public (France and international) strongly increase (+18%). Emergencies of the year, like April 2015 Nepal earthquake, lead to a strong growth of donations and the constitutions of dedicated funds higher than usual. Income from legacies and other gratuities also increased during this financial year. The share of expenses dedicated to social programs increased in 2015 up to 81.6% of our expenditures. Changes to the range of international programmes in 2015:
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2.
Opened programmes: France: Unaccompanied foreign minors / Naloxone Africa: Uganda: LGBT / MSM Central America: Migrants Asia: South-East Asia DRR / Sri Lanka / Vietnam / Pakistan: SRH Middle-East: Yemen emergencies Europe: Greece: Migrants / Italy: Migrants / Georgia: HCV Closed Programmes: France: Languedoc-Roussillon: Raves Montpellier / PACA : RDR Méditerranée Latin America : Uruguay / Regional project Asia : Laos / India / Pakistan : Dar-Ul-Aman Africa: Burkina Faso: Malian refugees / Ivory Coast, DRC, Mali, Burkina Faso, Liberia: Ebola / Ethiopia: Eritrean refugees / Mali: Koro / Niger: referencing Opened/closed programmes during the year: Madagascar: floods Lebanon: Health assessment Vanuatu
CHANGES IN PRESENTATION, VALUATION OR ACCOUNTING METHODS
National employees costs (salaries and taxes) are, from now on, part of the “salaries and payroll” account instead of in the “external expenses” account. In 2015, the national employees cost amounted 11.4 M€. 11
Médecins du Monde 2015 Financial Report
3.
ASSOCIATIVE PROJECTS
According to the associations accounting plan, costs concerning the associative project charged on the reserve is submitted to the General Assembly approval. Funds engaged for the associative project “Innovating projects on French programmes” in 2015, are included in the “benefit or surplus” above, and amounted 207 547 €. If the General Assembly approves these costs and them being charged on the reserve “Innovating projects on French programmes”, the year surplus that will be affected, adjusted for these costs, will amount to 472 628.87 € instead of 265 081.87 €.
4.
ACCOUNTING RULES AND METHODS
The financial year extended over 12 months, from the 1st January to the 31 December 2015. The accounts are drawn up in euros. On the 31 December 2015, the Balance Sheet showed a total of 51 720 881 euros, while the Income Statement, presented in the form of a table, showed a surplus of 265 082 euros.
4.1. BASIC ACCOUNTING PRINCIPLES The accounts have been drawn up -
in accordance with basic accounting conventions, and the following principles in particular: The principle of prudence; Consistency of accounting methodology from one financial year to the next; Continuity of operations; Non-compensation; Independent financial years.
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in compliance with the general rules for the drawing up and presentation of annual accounts applicable in France, and in compliance with the following regulations in particular: CRC 99-01 regarding the rules and regulations for the drawing up and presentation of annual accounts for French associations, foundations and endowment funds; ANC 2014-03 of 05 June 2014 regarding the general chart of accounts, modified by regulation ANC 2015-06 on the 23th of November 2015; CRC 2008-12 regarding the drawing up of the Annual Income and Expenditure Statement for French associations and foundations.
4.2. FIXED ASSETS AND DEPRECIATIONS The Association’s fixed assets are entered in the accounts at their acquisition cost (purchase price plus incidental costs). They are recorded and valued in accordance with the standards laid down by the regulation regarding assets. Fixed assets which can be broken down: The only fixed asset found which could be broken down was the building housing the Association’s Head Office in Paris.
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Médecins du Monde 2015 Financial Report
It was broken down as follows: NET VALUE ON 31 DECEMBER 2015 LAND
1,206,101
BUILDING
1,352,669
TOTAL
2,558,770
DEPRECIATION PERIOD
20 YEARS
Fixed assets in progress: The heading ‘Fixed assets in progress’ corresponds to as yet unfinished projects (a digitalised patient database and internet website) which came to €310K on 31/12/2015. Depreciation: Fixed assets are depreciated using the straight-line method over their useful life. This remained unchanged in relation to the previous financial year, as set out below.
The allowance for depreciation for the financial year is entered in the accounts under the heading ‘Allowances for depreciation: fixed assets’. The following methods were used to calculate depreciation over the financial year: · Software
Straight-line, 1 to 3 years
· Software developed by subcontractors
Straight-line, 3 years
· Building
Straight-line, 20 years
· Fixtures & fittings
Straight-line, 6 and 10 years
· Transportation equipment (Head Office)
Straight-line, 3 and 4 years
· Transportation equipment (Programmes)
Straight-line, 2 and 3 years
· IT equipment
Straight-line, 3 years
· IT equipment (International Programmes)
Straight-line, 2 years
· Office equipment and furniture
Straight-line, 6 years
· Medical equipment
Straight-line, 6 years
· Communications equipment
Straight-line, 6 years
The basis for an asset’s depreciation is its gross value minus its residual value, which is taken to be the sum (minus anticipated disposal costs) which the Association would obtain if it disposed of the asset on the market at the end of its service life.
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Médecins du Monde 2015 Financial Report
The residual value is taken into account whenever the service life of an asset is noticeably shorter than its anticipated physical life. The Association’s Head Office is a fixed asset which can be broken down. Its service life has been set at 20 years, but its physical life will no doubt be much longer. On 31/12/2015, the net book value of our Marcadet building was €1,353K for the building itself, and €1,206K for the land, which is not depreciable. In March 2016, an expert valued the Marcadet building and land at €18,400K. Since the net book value is clearly lower than the residual value (€1,353K for the building plus €1,206K for the land), no allowance for depreciation has been entered in the accounts since 31/12/2004. Financial fixed assets: Long-term securities: these are investment securities held for more than 1 year. On 31/12/2015, these amounted to €21K. Loans: Médecins du Monde frees itself from the obligation to take part in any building effort by paying its contribution to accredited collecting bodies in the form of interest-free loans, repayable over 20 years. On 31/12/2015, these totalled €608K. Other financial fixed assets: this heading corresponds to advances, deposits and guarantees paid to third parties in France and abroad. On 31/12/2015, these came to €718K.
Provision for depreciation on fixed assets: No provision for depreciation on fixed assets was recorded on the 31/12/2015.
4.3. STOCK AND STOCK DEPRECIATION Stock consists mainly of medical and surgical equipment, medicines, emergency kits, vehicles and communications equipment. Stock is entered in the accounts at its acquisition cost, and valued using the ‘first in, first out’ (FIFO) costing method. Depreciation is recorded if the actual value is lower than the entry value at the close of the financial year.
4.4. CLAIMS These are valued at their nominal value. Depreciation is recorded whenever their balance-sheet value is lower than their nominal value. Claims in foreign currency are converted using the InforEuro exchange rate set by the European Commission. Any unrealised losses on the 31st of December, resulting from these conversions, trigger the creation of a provision for foreign exchange losses.
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Médecins du Monde 2015 Financial Report
4.5. DEBTS These are valued at their nominal value. Suppliers’ debts in foreign currency are converted using the InforEuro exchange rate set by the European Commission. Any unrealised losses on the 31st of December, resulting from these conversions, trigger the creation of a provision for foreign exchange losses.
4.6. CASH INVESTMENTS Marketable securities are entered in the accounts at their acquisition cost and valued using the FIFO method. Depreciation is recorded whenever the balance-sheet value is lower than the acquisition cost. Investments earning interest (term deposits and passbook accounts) are entered in the accounts at their nominal value. Any accrued interest is entered in the accounts.
4.7. BANK ACCOUNTS AND CASH FUNDS IN FOREIGN CURRENCIES Bank accounts and cash funds in foreign currencies are converted into euros at the rate for the 31 December of each year.
4.8. GRANT FUNDING – INTERNATIONAL PROGRAMMES a. Once an agreement has been signed with a funding agency (public-sector or private), the total amount of the contractual grant is entered against the account of the third-party funding agency, under the balance-sheet heading ‘Other receivables’. b. At the close of the financial year, the Association decides how far the financed project has progressed (by comparing actual expenditure to the expenditure forecast in the funding agreement) and how much of the grant should therefore be recognised in the accounts for that financial year. Any administrative costs covered by the contract are also taken into account. c. The difference between the total grant funding awarded and the portion recorded as income is shown under deferred income. This represents the share of the grant linked to future financial years. d. Any agreements signed after the close of the financial year, but used to fund eligible expenditure for that year, are recorded as accrued grants. Ever since this more accurate accounting method has been applied to the outstanding portions owed by funding agencies, i.e. since the financial year 2012, the Association has not needed to set up earmarked funds to subsidise its international programme operations.
4.9. SUBSIDIES AND INVESTMENT GRANTS – FRENCH PROGRAMMES Operating subsidies are included under operating income for the financial year during which the Association is notified of the decision authorising the subsidy.
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Médecins du Monde 2015 Financial Report
If the subsidies apply in whole or in part to a period prior to the close of the financial year, a pro rata calculation is made, so that the income in question can be allocated to the relevant financial year, and, where necessary, deferred income can be entered in the accounts. Investment grants allocated to property which can be replaced by the Association are kept with liabilities under the heading ‘Non-recoverable Association funds’. Investment grants allocated to property which cannot be replaced by the Association are allocated to non-replaceable property and recorded in the investment grants account, then reclaimed on the Income Statement, as the item of property gradually depreciates.
4.10. EARMARKED FUNDS FROM GRANTS, DONATIONS AND LEGACIES Whenever income raised from French donors, general public and testators and allocated by them to a dedicated purpose, and has not been used for that particular purpose by the end of the financial year, the restricted funds are entered in the accounts under balance-sheet liabilities. They represent the unused part of any restricted grants, donations and legacies, and are allocated via a specific expenditure account entitled ‘Outstanding commitments from earmarked funds’. Whenever these donations and legacies are used in the course of subsequent financial years, the earmarked funds are recovered using a specific income account entitled ‘Unused, earmarked funds brought forward from previous financial years’.
4.11. ASSOCIATIVE PROJECTS Reserve for the associative project is established and used as follow: - Associative projects must be compliant to the associative object - Expenditures are clearly identified and not assimilated to usual expenditure The allocation for an associative project and the expenditure commitments affectation concerning this project must be voted during the General Assembly, as well as the affectation to the general reserve of the unused funds.
4.12. PROVISIONS FOR LIABILITIES AND CHARGES Provisions for liabilities and charges are set up on the basis of events which have already occurred or are ongoing at the close of the financial year, and render any such liabilities probable. On 31/12/2015, this heading included: -
provision for litigation and liabilities (mainly related to life insurance policies, dealings with ombudsmen, agreements with funding agencies, risks concerning our international projects); provision for retirement benefits.
Provision for retirement benefits: The value of retirement benefits for Médecins du Monde’s total workforce (excluding local staff in countries other than France) was calculated. When calculating total retirement commitments (including social security contributions), the following were taken into account: -
retirement age: 65 years 16
Médecins du Monde 2015 Financial Report
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turnover rate averaged out for the last 4 years pay increases of 1% per annum annual discount rate: 2.03% 2014 life table
4.12. LEGACIES AND OTHER DONATIONS Moveable and immoveable property originating from legacies or donations and destined to be sold by the Association is recorded in the following way: On the date a legacy is accepted by the Board of Directors or, in the case of legacies prior to 2006, on the date of their administrative authorisation, the items of property in question are recorded (off balance sheet) at their estimated value, and net of any charges they may have incurred in connection with the estate or its realisation, under ‘Commitments received’. As money is either received or paid out in connection with the sale of these items of property, the sums in question are either credited to (receipts) or debited from (withdrawals) the balance sheet account ‘Legacies and donations in progress’. The amount of the corresponding off-balance-sheet commitment is altered to reflect the movements are recorded. Once the realisation of any moveable and immoveable items of property has been finalised and has taken effect, the income account ‘Legacies and other gratuities’ is credited with the final, exact sale amount, net of any acquisition costs incurred by the property during its transfer, and the account ‘Legacies and donations in progress’ is then adjusted with respect to that legacy or donation. On 31 December 2015, legacies in progress totalled €3 297 994 and legacies receivable came to €5 171 089. Temporary, usufructuary donations are recorded as off-balance-sheet commitments to the value of the usufruct and its associated fruits, which are recorded as income for the financial year on the basis of the sums received.
4.13. BENEFITS IN KIND The receipts and expenditure relating to Médecins du Monde’s activities over the course of the financial year can be clearly identified thanks to our accounting records and financial statements. However, our accounts only provide a partial picture of the way we operate. The fact is that as an Association we receive numerous voluntary contributions which are never entered in the accounts. These voluntary contributions are made of the commitment of hundreds of unpaid men and women, without them we would not be able to run our programs, but they are also made of goods, services put to our disposal freely by companies, associations, foundations or donors. For example, Médecins du Monde benefits from gifts of equipment, goods or medicines, as well as free communications materials and media. This kind of non-financial giving appears at the foot of the Income Statement and of the Income and Expenditure Statement, and it is thanks to contributions of this kind that the Association is able to save money and expand its operations still further.
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Médecins du Monde 2015 Financial Report
Donations in kind: The valuation of goods and services in kind is based on official documents, supplied by the donors, certifying the financial value of the goods or services being given to Médecins du Monde. This financial value reflects the cost price of the goods or services in question. The valuation of services in kind for the year 2015 came to €1 051K, compared with €593K for 2014. Voluntary work in France: A volunteer is a physical person who works for a not-for-profit organisation without receiving anything whatsoever in return. Since 2014, the work carried out by French volunteers has been centrally recorded using a data-processing tool. Thanks to the information gathered, we now know the identity of each of our volunteers, the kind of work he/she does and the number of hours worked. Assessing the value of voluntary work involves calculating how much those hours would have cost if they had been worked as paid employment. The reference grid used to calculate their value in monetary terms is Médecins du Monde’s pay scale. The cost of employer contributions is included in this calculation. In the course of the financial year 2015, the French volunteers entered on the system worked 182 113 hours, and would have cost us approximately €4 337K. This valuation is not an accurate reflection of all the work done by volunteers in the course of an entire year, since it is based on individual volunteers’ declarations of the hours they have spent working for the Association. Inevitably, this method of record-keeping fails to pick up every last detail and therefore ends up underestimating the true picture. International voluntary work: An international voluntary worker is a physical person over the age of eighteen who fulfils the following 3 conditions: 1) Signs a voluntary service contract with a French voluntary organisation promoting international solidarity and recognised by the French Ministry of Foreign Affairs or Ministry for Overseas Development. 2) Under this remit, takes part in an operation promoting international solidarity. 3) Completes one or more missions of general public interest in a country not on a list determined by French government decree (Decree of 02 May 1995). Under the terms of a voluntary work contract, a voluntary worker must receive: training; a regular subsistence allowance and benefits in kind; payment of travel expenses and repatriation; medical and civil liability insurance; Social Security cover; and technical support. Social welfare provision is also guaranteed under the provisions regarding voluntary insurance for French expatriates (the Fund for French nationals abroad [CFE]). The value of the contribution made by international voluntary workers is assessed using the following method: Médecins du Monde knows the exact number of voluntary workers engaged in one or more programmes over the course of a financial year. This number of variable-length programmes equates to a certain number of days, and that number of days can be expressed in terms of their full-time equivalence per month/per person. Each volunteer’s working profile is matched to a similar function already carried out within Médecins 18
Médecins du Monde 2015 Financial Report
du Monde, allowing the theoretical cost to payroll to be calculated using Médecins du Monde’s internal pay scale. Any allowances and benefits in kind which have actually been paid to these voluntary workers are deducted from this total. On 31 December 2015, international voluntary worker contributions totalled €669K.
4.14. OTHER INFORMATION Statutory Auditor’s Fees The Statutory Auditor’s fees shown in the Income Statement for the financial year ended on the 31/12/2015 amounted to €86 957.
Administrators’ expenses: In the course of the financial year 2015, the Association’s administrators incurred travel and programme expenses of €95 163. These included travel for international programmes. Remuneration of the Association’s Chair: In compliance with the statutory provisions and with Article 261-7-1-d and Article 242 C of Appendix II of France’s General Tax Code, Médecins du Monde remunerates the position of Chair of the Board of Directors. The upper limit for this remuneration is set at 1.3 times the ceiling set by French Social Security or by whichever body is used as a reference instead. This remuneration, which is intended to be a gross amount, may not be paid for more than 3 terms of one year each, whether or not they are consecutive. The remuneration paid for 2015 came to €60 367. Remuneration of the Association’s three most senior executives, whether volunteers or paid employees (Article 20 of Act 2006-586 of 23 May 2006): The Association’s three most senior executives, whether volunteers or paid employees, are the Chair, the Treasurer and the General Secretary. Only the Chair is remunerated, as indicated in the previous paragraph, i.e. € 60 367 in 2015.
Events occurring after the close of the financial year: None.
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Médecins du Monde 2015 Financial Report
5. TANGIBLE AND INTANGIBLE FIXED ASSETS 5.1. Fixed assets movements table INTANGIBLES
01/01/2015
Subcontracted software Licences (software)
Acquisitions
Fxd asset alloc. In prog.
Disposals
31/12/2015
IFA Advances
305 037 348 752 653 789 0
0 39 947 39 947 0
0 0 0 0
0 0 0 0
305 037 388 699 693 736 0
TOTAL INTANGIBLES
653 789
39 947
0
0
693 736
Subtotal…
TANGIBLE ASSETS
01/01/2015
Acquisitions
Fxd asset alloc. In prog.
Disposals
31/12/2015
LAND Land Marcadet land Subtotal …
1 754 1 204 347 1 206 101
0 0 0
0 0 0
0 0 0
1 754 1 204 347 1 206 101
Buildings Marcadet building Fixtures/fittings & improvements Marcadet Fixtures/fittings & improvements Int. Prog. Subtotal …
0 2 761 874 4 852 369 77 570 7 691 813
0 0 9 765 0 9 765
0 0 0 0 0
0 0 0 0 0
0 2 761 874 4 862 134 77 570 7 701 578
Tangible assets in progress
1 788 957 5 328 992 2 270 599 629 001 549 645 142 540 426 593 70 546 11 206 873 33 629
149 029 97 371 121 366 42 974 0 0 1 827 1 313 413 880 276 609
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
1 937 986 5 426 363 2 391 965 671 975 549 645 142 540 428 420 71 859 11 620 753 310 238
TOTAL TANGIBLE ASSETS
20 138 416
700 254
0
0
20 838 670
20 792 205
740 201
0
0
21 532 406
BUILDINGS
OTHER TANGIBLE ASSETS Fixtures and fittings Transportation equipment IT equipment Office equipment Office furniture Medical equipment Communication equipment Audiovisual equipment Subtotal …
TOTAL
20
Médecins du Monde 2015 Financial Report
5.2. Depreciation table INTANGIBLES
01/01/15
Subcontracted software Licences (software)
TOTAL INTANGIBLES TANGIBLE ASSETS BUILDINGS
Amort.
Subtotal…
31/12/15
204 237 337 330
39 821 14 710
0 0
244 058 352 040
541 567
54 531
0
596 098
01/01/15
Building Fixtures & fittings (Bdg)
Recovery
Deprec.
1 409 204 4 107 005 5 516 209
Recovery
0 135 026 135 026
31/12/15 0 0 0
1 409 204 4 242 031 5 651 235
393 825 648 008 636 352 103 704
0 0 0 0 0 0 0 0
1 642 690 5 223 164 2 264 057 635 019 524 628 137 300 426 696 69 141
OTHER TANGIBLE ASSETS Fixtures & fittings Transportation equipment IT equipment Office equipment Office furniture Medical equipment Communication equipment Audiovisual equipment
1 578 297 5 157 339 2 167 409 626 011 515 992 134 948 426 593 68 436 Subtotal…
64 65 96 9 8 2
10 675 025
247 670
0
10 922 696
TOTAL TANGIBLE ASSETS
16 191 235
382 696
0
16 573 931
TOTAL
16 732 802
437 227
0
17 170 029
TOTAL AM ORTISATION ON 31/12/2015
NET BOOK VALUE ON 31/12/2015
5.3. Net book values table INTANGIBLE ASSETS
GROSS AM OUNTS ON 31/12/2015
Subcontracted s oftware Licences (s oftware) Advances on intangible as s ets
305 037 388 699 0 693 736
TOTAL INTANGIBLES
GROSS AM OUNTS ON 31/12/2015
TANGIBLE ASSETS
244 058 352 040 0 596 098 TOTAL AM ORTISATION ON 31/12/2015
60 979 36 659 0 97 638
NET BOOK VALUE ON 31/12/2015
LAND Land Marcadet Land Subtotal…
1 754
0
1 754
1 204 347
0
1 204 347
1 206 101
0
1 206 101
BUILDINGS Building
0
0
0
Marcadet building
2 761 874
1 409 204
1 352 670
Fixtures/fittings & improvements Marcadet
4 862 135
4 169 582
692 553
Fixtures/fittings & improvements Int. Prog.
77 570
72 450
5 120
7 701 579
5 651 236
2 050 343
Fixtures & fittings
1 937 986
1 642 690
295 296
Transportation equipment
5 426 363
5 223 163
203 200
IT equipment
2 391 966
2 264 057
127 909
Office equipment
671 975
635 019
36 956
Office furniture
549 645
524 628
25 017
Medical equipment & supplies
142 540
137 300
5 240
Communication equipment
428 420
426 696
1 724
Subtotal… OTHER TANGIBLE ASSETS
Audiovisual equipment Subtotal… Tangible assets in progress TOTAL TANGIBLES TOTAL
21
71 859
69 141
2 718
11 620 754
10 922 694
698 060
310 238
0
310 238
20 838 672
16 573 930
4 264 742
21 532 409
17 170 028
4 362 380
Médecins du Monde 2015 Financial Report
6. FINANCIAL FIXED ASSETS
FINANCIAL FIXED ASSETS
31/12/15
Other long-term securities Housing construction loans (tax on French employers) Deposits & guarantees Total ...
20 962 607 706 717 533 1 346 201
7. STOCK
STOCK
31/12/15
End of year amount of stock
341 691
Depreciation of vehicle stock
-17 893
Net stock amount
323 798
8. STATEMENT OF END-OF-YEAR CLAIMS
CLAIMS STATEMENT
1 year maximum
Gross amount
Over 1 year
Relating to fixed assets: Loans (deposits and guarantees)
607 706
0
607 706
Other financial fixed assets
717 533
16 057
701 476
1 325 239
16 057
1 309 182
173 454
173 454
16 442 340
16 442 340
5 460
5 460
25 379
25 379
64
64
Various debtors
1 028 800
1 028 800
Accrued income
1 827 111
1 827 111
Total 1 … Relating to current assets: Account receivables Funding bodies personnel and related accounts Social security bodies State
Legacies in progress
0
0
Total 2 …
19 502 608
19 502 608
0
Total 3 …
826 617 826 617
826 617 826 617
0
21 654 463
20 345 281
1 309 182
Prepaid costs
GRAND TOTAL (1 + 2 + 3) Amount of :
0
- loans granted during financial year - loan repayments over financial year
22
0
Médecins du Monde 2015 Financial Report
9. ACCRUED INCOME OTHER RECEIVABLES :
On 31/12/2015
-Discounts, reductions & rebates obtainable and credits receivable
71 164
- Social security bodies - accrued income
22 137
- State - accrued income
64
- Accrued income * Grants income * other accrued income * International network
1 826 656 138 329 1 679 858 8 469 TOTAL ACCRUED INCOME :
10.
1 920 021
LIQUID ASSETS
9.1. Marketable values INVESTMENTS
Share price on 31/12/2015
Purchase value
SICAV or FCP
4 346 201
Shares
4 346 883
682
4 060
0
4 060
Term deposit account
12 367 903
Term deposit account interests
0
TOTAL
16 718 164
9.2. Banks and cash funds GROSS VALUE
On 31/12/2015
Values for collection
3 429 078
Bank balances
17 390 186
Cash in hand
520 779
TOTAL
21 340 043
11. PREPAID COSTS PREPAID COSTS
On 31/12/2015
Suppliers' charges billed in advance
826 617
TOTAL
826 617 23
latent revaluation latent revaluation gains losses
0
Médecins du Monde 2015 Financial Report
12. ORGANISATION’S OWN FUNDS 31 December 2014
OWN FUNDS
Increase
31 December 2015
Reduction
Statutory Reserve Gratuities/Legacies General Reserve: Operations Reserve: Associative project Balance brought forward Emergency Reserve Operating Reserve Investment grants Surplus allocated to investments
15 245 0 18 789 389 0 -185 709 0 0 4 745 0
0 0 0 420 000 0 0 0 0 0
0 0 -3 529 586 0 -185 709 0 0 0 0
15 245 0 15 259 804 420 000 0 0 0 4 745 0
TOTAL
18 623 670
420 000
-3 715 295
15 699 794
2013 Surplus 2014 Surplus
-2 923 877
2 923 877 265 082
0 0
0 265 082
TOTAL OWN FUNDS
15 699 793
3 608 959
-3 715 295
15 964 876
13. TABLE OF PROVISIONS
NATURE OF PROVISIONS Provisions Provisions Provisions Provisions
On 31/12/14
for contingency and loss for litigation for foreign exchange losses for retirement benefit
Allowance Write-back of for financial On 31/12/15 provisions year
Total 1
567 750 86 210 395 287 1 049 246
16 435 833 398 516 751 1 366 584
28 250 86 210 395 287 509 747
555 935 833 398 516 751 1 906 083
Total 2
0 21 130 21 130
0 331 026 331 026
0 3 237 3 237
0 348 919 348 919
1 070 376
1 697 610
512 984
2 255 003
Provisions for depreciation On financial fixed assets Other provisions for depreciation
GRAND TOTAL (1 + 2)
24
Médecins du Monde 2015 Financial Report
14. EARMARKED FUNDS
EARMARKED FUNDS
EFs at start of financial year
Provisions for outstanding commitments (+)
Write-backs of EFs (-)
EFs at end of financial year
From grants
75 999
699 986
75 999
699 986
AFRICA ASIA EUROPE FRANCE MIDDLE EAST
0 0 0 75 999 0
0 332 004 0 367 982 0
0 0 0 75 999 0
0 332 004 0 367 982 0
151 746
605 635
151 746
605 635
78 569 0 0 0 73 177
0 558 206 39 729 7 700 0
78 569 0 0 0 73 177
0 558 206 39 729 7 700 0
From legacies
0
0
0
0
FRANCE
0
0
0
0
227 745
1 305 621
227 745
1 305 621
78 569 0 0 75 999 73 177
0 890 210 39 729 375 682 0
78 569 0 0 75 999 73 177
0 890 210 39 729 375 682 0
227 745
1 305 621
227 745
1 305 621
From donations AFRICA ASIA EUROPE FRANCE MIDDLE EAST
Total earmarked funds AFRICA ASIA EUROPE FRANCE MIDDLE EAST
GRAND TOTAL
15. STATEMENT OF END-OF-YEAR DEBTS
DEBTS STATEMENT
Gross amount
Borrowings and similar debts
1 year maximum
Over 1 year to 5 years maximum
69 211
69 211
0
Accounts payable and related accounts
2 762 459
2 762 459
0
Personnel and related accounts
1 817 427
1 817 427
0
Social security bodies
2 114 183
2 114 183
0
522 772
522 772
0
State taxes Fixed asset debts and related accounts Other debts TOTAL DEBTS … Deferred income
GRAND TOTAL
25
70 438
70 438
0
7 185 165
7 185 165
0
14 541 654 18 002 646
14 541 654 12 917 581
0 5 085 065
32 544 300
27 459 235
5 085 065
Médecins du Monde 2015 Financial Report
16. TABLE OF LEGACIES AND DONATIONS IN PROGRESS Ongoing legacies Ongoing legacies and donations on and donations on 31/12/2014 31/12/2015
TOTAL
3 660 375
3 297 994
17. ACCRUED LIABILITIES
On 31/12/2015
ACCRUED LIABILITIES Borrowings and debts with credit institutions: - Accrued interest, not yet matured Accounts payable and related account - Invoices not yet received Tax and social security debts - Accrued paid leave debts - Other personnel costs payable - Social security bodies - accrued contributions - Accrued State taxes Other debts - Miscellaneous expenses accrued
TOTAL ACCRUED EXPENSES
0 0
764 814 764 814
2 933 521 1 281 149 490 890 870 246 291 236
1 877 694 1 877 694
5 576 029
18. DEFERRED INCOME
DEFERRED INCOME
On 31/12/2015
Foreign Grants - Africa - America - Asia - Middle East Other
12 342 064 3 587 606 555 866 1 238 075 6 960 515 5 660 583
TOTAL :
18 002 646
26
Médecins du Monde 2015 Financial Report
19. OFF-BALANCE-SHEET COMMITMENTS
18.1. Commitments received Commitments received (legacies and donations)
Legacies
Number of testamentary donations accepted by the board and not received Valuation of the amount to be received
Donations
173 5 134 146
2 36 943
Total on 31/12/2015 175 5 171 089
18.2. Given Commitments LEASING COMMITMENTS
Paid royalties
(in euro)
Financial period
Rolling stock
TOTAL…
Redevances restant à payer
Cumulated
Less than a year From 1 to 5 years
34 041
14 066
3 471
17 537
4 303
15 038
34 041
14 066
3 471
17 537
4 303
Entry Costs
(in euro) Rolling stock
TOTAUX …
Residual purchase
15 038
Depreciation charges Financial year Cumulated 43 036 12 845 26 158
LEASING COMMITMENTS
Total to be paid
43 036
12 845
Net value
26 158
Other commitments
Total on 31/12/2015
Security, guarantee, bond Security in rem
néant néant
27
16 878 16 878
Médecins du Monde 2015 Financial Report
20. EMPLOYEE STATISTICS MdM workforce as at 31 December 2015 1 640 1 449 17 106 68
international programs staff national employees international solidarity volunteers expatriate employees head office IOD employees
2 062 1 934 111 17
French sector staff volunteers employees in the field head office employees
440 317 123
operational support staff voluntary association managers head office employees
For a total of 4,000 MdM staff
Pay: Average of the 3 highest gross annual salaries: €80 834 Average of the 3 lowest gross annual salaries: €22 365 Average gross annual salary: €39 026 Ratio 3 highest gross annual salaries/3 lowest gross annual salaries: 3.3 The lowest gross annual salary is higher than French minimum wage: + 14.25%. Training: From the 1st January 2015, the DIF (Individual Right to Training) is replaced by the CPF (Personal Training Account). The CPF is from now on directly managed by each employee.
28
MĂŠdecins du Monde 2015 Financial Report
21. OPERATING EXPENSES: DETAILS
BREAKDOWN OF AND CHANGES IN OPERATING EXPENSES Operating expenses
2015
Stock variation Sanitation equipment Housing equipment Logistics equipment Vehicles Miscellaneous equipment Non-storable supplies Medicines and medical equipment Cleaning and maintenance supplies International personnel equipment Expendable equipment Mailing supplies Food aid / foodstuffs Event merchandise
2014
2015/2014
-93 193 1 515 640 119 384 455 130 71 506 90 860 1 198 539 7 029 133 935 699 168 652 169 830 25 327 1 137 980 52 486
-143 948 715 620 83 312 367 195 785 365 55 215 1 095 755 7 628 547 849 769 298 092 0 44 583 1 147 268 55 894
-35% 112% 43% 24% -91% 65% 9% -8% 10% -43% 0% -43% -1% -6%
12 876 974 7 614 972 15 038 4 621 064 1 193 364 464 121 81 981 179 127
12 982 667 6 192 145 9 844 3 753 210 1 251 842 419 250 73 207 200 108
23% 53% 23% -5% 11% 12% -10%
14 169 667 335 869 1 043 200 2 043 728 2 803 928 530 211 5 782 225 2 448 294 285 211 96 086
11 899 605 225 066 10 114 781 1 657 076 2 900 909 770 448 4 799 937 2 397 663 262 821 107 978
49% -90% 23% -3% -31% 20% 2% 9% -11%
Other outside services
15 368 752
23 236 677
-34%
Taxes and similar payments
2 577 203 26 284 218 7 085 918
2 243 500 13 983 379 6 063 678
15% 88% 17%
Personnel costs
33 370 136 424 484 8 029 357
20 047 058 733 892 4 791 117
66% -42% 68%
Allowances for depreciation
8 453 841 2 074 617
5 525 009 1 114 313
86%
TOTAL
88 891 190
77 048 828
15%
Purchases Subcontracting Leasing charges Rental and rental charges Maintenance and repairs Insurance premiums Studies and research Miscellaneous Outside services Outside staff Local staff Fees Advertising and publications Transportation Trips / Receptions Postage and Telecommunications Bank charges Miscellaneous
Salaries and pay French NI contributions Miscellaneous management costs Grants paid by the association Other management costs
29
-1%
19%
53%
Médecins du Monde 2015 Financial Report
22. OPERATING INCOME: DETAILS
OPERATING REVENUE Grants Donations Corporate sponsorship Legacies Other
TOTAL …
2015
2014
2015/2014
44 216 033 37 931 882 401 067 6 098 881 904 861
35 434 433 34 311 459 88 517 3 529 022 1 002 445
24,8% 10,6% 353,1% 72,8% -9,7%
89 552 724
74 365 877
20,4%
23. INCOME AND EXPENDITURE STATEMENT The Annual Income and Expenditure Statement (IES) was drawn up in compliance with the provisions of Regulation No. 2008-12 of the Accounting Regulatory Committee. The IES explains how the Association’s overall resources were used, i.e. how they were divided up between social programmes, fundraising costs and operating costs. The totals in columns 1 and 2 match the total expenditure and income in the Income Statement. The IES also gives a separate breakdown of the way in which funds raised through public giving have been used. Columns 3 and 4 enable the monitoring of all such funds, whether they have been raised in the same financial year or brought forward from previous years’ unused funds. The total shown on the Income and Expenditure Statement is always identical to the totals on the Balance Sheet and on the Income Statement. In 2009, the Board of Directors of Médecins du Monde ruled on several aspects of the IES, including: -
the amount of unrestricted, unused funds raised from the public carried forward at the start of the financial year; the definition of Médecins du Monde’s social programmes (in France and abroad); the definition of fundraising costs; the definition of operating costs; and the allocative keys available for indirect costs.
This year, no changes were made to our methods or to the definitions of the various headings used (social programmes, fundraising costs and operating costs).
30
Médecins du Monde 2015 Financial Report
Social Programmes: Médecins du Monde’s vocation is to treat the most vulnerable people groups in crisis situations or situations of exclusion, both here in France and Worldwide, highlighting the harm caused by crises and by threats to people’s health and dignity. Its aim is to help prevent such harm and, through its witness-bearing initiatives, to denounce human rights violations, in particular the obstacles preventing access to treatment. As an organisation authorised and empowered by the competent authorities, the Association also aims to promote adoption, in order to help those children who have been put up for adoption legally by the authorities in their country of origin, and who cannot be kept safe in any other way.
Social programmes therefore include the following: -
-
operations carried out in France, arranged by type of activity (centres, outreach, regional delegations, exploratory programmes, witness-bearing programmes, coordination, management and monitoring costs); operations carried out abroad, arranged by continent, and including adoption programmes, of exploratory programmes and of witness-bearing programmes, coordination, management and monitoring costs).
harm reduction, and associated (direct costs of and associated
Information and communications costs are shown under social programmes, since the Board of Directors has decided that these activities constitute an integral part of the Association’s social purpose.
Guidelines for the allocation of expenses to social programmes: Expenditure on social programmes is the sum of the costs incurred by the Association in pursuit of its operations. Expenditure on social programmes therefore includes direct costs (charged as soon as transactions are entered in the accounts) and costs that cannot be directly assigned and are therefore shared out using allocative keys. Only an expense which has actually been incurred is assigned to a specific social programme. Provisions are recorded under the headings ‘Charges to Provisions’ or ‘Write-back of Provisions’ in the Annual Income and Expenditure Statement, depending on whether they are being created or recovered. Allowances for depreciation can be classed as operational expenses if the above definition applies. Only financial costs linked directly to social programmes (and which would disappear if the social programme in question came to an end) should be recorded under social programmes.
31
Médecins du Monde 2015 Financial Report
Fundraising Costs: -
Costs of appeals for public giving: This heading includes the costs of appealing for donations (marketing, direct mail advertising, newspaper inserts, etc.) and the costs of processing donations, issuing tax receipts, and finding and managing legacies, as well as donations linked to life insurance, managing special events, dedicated personnel costs, and the costs of fundraising from other network members. Some of the costs for the donors’ newsletter are charged to this heading (cf. allocative keys below). -
The costs of finding other sources of private funding: This heading includes the costs of the Corporate Sponsorship & Partnerships Department;
-
The costs of obtaining grants and other public-sector participation: This heading includes the costs of the department dedicated to public-sector and institutional funding [DDI].
Operating Costs:
Operating costs include the costs of the following departments: -
Administration and Legal Affairs; Directorate of Financial Management and Head Office Accounts; IT (excluding its share of provisions for depreciation divided up on the basis of the guideline below); General Services (excluding their share of allowances for depreciation divided up on the basis of the guideline below); HR directorate; financial costs (excluding costs directly attributable to particular programmes); some salary-based taxes; Head Office depreciation (excluding its share of allowances for depreciation divided up on the basis of the guideline below).
-
Allocative Keys used: •
Head office depreciation is divided up into 50% operating costs and 50% social programme costs. Half the equipment and fixtures are in actual fact used by programme-related departments.
•
Costs relating to the donors’ newsletter are considered partly as a means of/tool for telling people about initiatives we have carried out, and partly as the costs of raising income through public giving.
•
Under social missions, all the headings covering both French and International operations are divided up using the following key: 75% to international programmes and 25% to French programmes. This following headings fall into this category: General Directorate, Board of Directors, Financial Management and Internal Control Coordinator, Provisions and miscellaneous taxes, etc.
32
MĂŠdecins du Monde 2015 Financial Report
Funds from public giving: Funds from public giving are: donations from private individuals and businesses (excluding corporate sponsorship, sales-percentage and partnership agreements); legacies; donations linked to life insurance; income from special events; and funds raised from other network members.
Other private funds: Other private funds include: funds received from businesses in the form of corporate sponsorships, sales percentages or partnerships; grants received from private, not-for-profit organisations.
Grants & other public-sector participation: This heading includes grants from the European Union and the French State, and from local authorities and public-sector institutions.
Other income: Other income includes: financial income from reserves created by the Association to cushion it against contingencies We believe that the investments chosen are among the safest on the market (money market investments, and interest-earning accounts and deposits); miscellaneous operating income; subscriptions; contributions to the ‘Adoption’ service.
Allocation of income from public giving: Once any allocated funds received (whether grants, donations, legacies or funds from corporate sponsorship) have been used, any unallocated income from public giving is used as far as possible to fund social missions. According to this guideline, the order in which income is allocated to expenditure is as follows: Allocated grants; Other allocated, private funds; Allocated public giving; Unallocated public giving; Other unallocated, private funds or other income. In the event that not all the income received from public giving can be used to fund social missions, the balance is put firstly towards fundraising costs, then towards operating costs.
33
MĂŠdecins du Monde 2015 Financial Report
Income from corporate sponsorship is used as far as possible to fund the search for further corporate sponsorship, and the percentages for administrative costs awarded along with public-sector grants are used as far as possible to fund the search for further grants, after which they can be put towards the Association’s operating costs.
Changes to Earmarked funds from public giving: These changes show either that the funds allocated by a donor have been used, or, when it has not been possible to use a donation as requested by the donor, the continued existence of earmarked funds.
Funding of Fixed Assets: As far as possible, fixed assets are funded from income other than that derived from public giving.
Inventory of French volunteer workforce: 1934 French volunteers intervened in 2015 - the Full Time Equivalent of 100.06 people, compared with the FTE of 105.85 people in 2014.
Nature and quantity of income in kind: See comments on this subject under Point 4.14 of Accounting Rules and Methods above. The information presented here has been drawn up on the basis of our accounting records.
34
60 966 393
11 934 248
1.2 Activities carried out abroad
2 - FUNDRAISING COSTS
Operating costs and other expenses
Fundraising costs
Social Programmes
TOTAL
V - GRAND TOTAL V - Proportion of gross fixed asset acquisitions in the financial year finances since the regulation first came into force by funds raised from the general public VI - Offsetting of depreciation allowances on fixed assets financed since the regulation first came into force by funds raised from the general public VII - Total expenditure financed by funds raised from the general public
6 057 470
84 068
5 973 401
91 186 655
265 082
1 305 621
IV - SURPLUS FUNDS FOR THE FINANCIAL YEAR
1 694 373
87 921 580
III - OUTSTANDING COMMITMENTS FROM EARMARKED FUNDS
TOTAL
4 252 491
277 549
289 473
I - TOTAL EXPENDITURE FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - CHARGES TO PROVISIONS
3 - RUNNING COSTS
35
public sector funding
2.3 Costs related to applications for grants and other
2.2 Costs of fundraising from other private sources
11 367 226
10 768 448
1.1 Activities carried out in France
2.1 Costs of appeals to public generosity
71 734 841
2015 Expenditures
1 - SOCIAL PROGRAMMES
EXPENDITURE
44 738 242
0
0
44 738 242
3 110 647
0
0
11 367 226
11 367 226
23 860 673
6 399 696
30 260 369
Allocation (according to use) of funds raised from the general public for use during the financial year
Donations in kind
Volontary work (France+international)
TOTAL
VI - Total expenditure financed by the funds raised from the general public Balance of funds raised from the general public which are unrestricted and unused at the end of the financial year
VI - GRAND TOTAL
I - TOTAL FUNDS FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - WRITE-BACKS OF PROVISIONS III - UNUSED, EARMARKED FUNDS BROUGHT FORWARD FROM PREVIOUS FINANCIAL YEARS IV - CHANGE IN EARMARKED FUNDS RAISED FROM THE GENERAL PUBLIC (cf table of earmarked funds) IV - FUNDING DEFICIT FOR THE FINANCIAL YEAR
4 - OTHER REVENUE
3 - GRANTS AND OTHER PUBLIC SECTOR FUNDING
2 - OTHER PRIVATE FUNDS
1.2 Other revenue from appeals to public generosity
- Earmarked legacies and other gratuities
- Unrestricted legacies and other gratuities
- Earmarked donations by hand
- Unrestricted donations by hand
1.1 Donations and legacies received
1- FUNDS RAISED FROM THE GENERAL PUBLIC
Brought forward funds raised from the general public, unrestricted and unused at the start of thefinancial year
INCOME
6 057 470
1 051 267
5 006 203
91 186 655
227 745
509 747
90 449 163
1 875 928
39 193 698
3 395 234
1 953 543
0
6 098 881
438 195
37 493 685
44 030 761
45 984 303
Funds Raised in 2015
5 488 893
44 738 242
45 319 692
-664 611
1 953 543
0
6 098 881
438 195
37 493 685
44 030 761
45 984 303
4 907 443
Monitoring of funds raised from the general public for use during the financial year
INCOME AND EXPENDITURE STATEMENT : FUNDS RAISED FROM THE GENERAL PUBLIC - 2015
Médecins du Monde 2015 Financial Report
MĂŠdecins du Monde 2015 Financial Report
Part 2 Analysis of the 2015 Accounts
36
Médecins du Monde 2015 Financial Report
1. INCOME STATEMENT In thousand of €
INCOME EXPENSES SURPLUS/DEFICIT -
2013 67 171 67 620 450 -
2014 74 956 77 880 2 924
2015 91 187 90 922 265
The financial activity of Médecins du Monde has sustained a strong growth in 2015, as in the previous years, thanks to the creation and the development of a number of international programmes (+15%) and French programmes (+12%). Three factors had a positive impact on the accounts: o In France and in Europe, donors were very present, particularly following the emergency in Nepal, which led to a €3 million increase in fundraising. o Exchange rates were also favourable, with a positive financial result of about €0.7 million. o Finally, non-budgeted life insurances improved the result by €0.9 million. The total income is growing faster than expenses (+22% for total income, versus +17% for expenses), therefore allowing for a return to a financial balance after two years in the red. The 2015 surplus is of €0.3 million, before charges to the reserve for the innovative mission statement in France.
Operating income: The operating income increased by €15 million in 2015 (+20%) due to grants from public and private donors (+€7.6 million, +22%), but also thanks to increasing generosity in France and worldwide (+€7 million, +18%). Individual fundraising in France has experienced a €3.6 million increase to now reach €38 million. This significant rise is largely due to the aftermath of the emergency in Nepal, estimated at +€2 million, but is also linked to the success of our investments to develop direct debit payment, and more broadly speaking thanks to public support for our advocacy message. Income from the international network have experienced a €1.2 million increase, chiefly due to the response following the Nepal emergency (+€0.8 million). Income from legacies and other donations amount to €6.1 million, i.e. a €2.6 million increase compared to 2014. The financial year benefited from a particularly significant legacy (€0.9 million) as well as from the development of life insurances. Restructuring the department also enabled us to make up for last year’s shortfalls.
Operating expenses: The increase in our operating expenses (+15%) corresponds to the increase in our fieldwork (+15% on average).
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Médecins du Monde 2015 Financial Report
The most significant developments include: - External expenses (-€5.6 million) whose decrease is due to the fact that locally hired Médecins du Monde staff costs have been reclassified to the “Salaries and Employee Social Contributions” item (amount 2014: €9.3 million). With the exception of this modification, the item increased by €3.7 million. The main increases concern: • Fundraising and communication costs (+€1.2 million). Indeed, Médecins du Monde made further investments, in particular to develop fundraising in Germany (+€0.6 million). • Programme development costs: operations/receptions: +€0.8 million, property rentals and associated costs (+€0.5 million), vehicle expenses - excluding depreciation (+€0.4 million), staff associated costs temps, trainees, medical expenses (+€0.4 million). - Staff expenses and related taxes (+€4.4 million on a comparable entity) whose progression is linked to the progression of our activities. • Staff under French law: €24.1 million (i.e. +€2.3 million compared to 2014) • Staff hired locally: €11.4 million in 2015 (i.e. +€2.1 million compared to 2014) - Grants handed out by Médecins du Monde (+€3.2 million), particularly to local stakeholders relaying our programmes, in accordance with our association project. - Allocations to provision accounts (+€0.9 million) Most allocations during the fiscal year concern risks linked to our international operations, debt depreciation, and an annual adjustment to the provision for retirement allowances.
Financial result: The latter shows a €0.7 million profit for the financial year, mostly on account of positive exchange differences. The net gain on foreign exchange increased to an €0.7 million overall income from an overall loss of €0.2 million in 2014. Our financial income deriving from our investments (sometimes linked to the gap recorded between our income and expenditures) are lower compared to 2014 (-€16k). However, this decrease is much smaller than those of our reference rates. Indeed, currency rates dropped in 2015 and were even negative. For the record, our investment policy prefers money-market investments (deposits or short-term accounts, Sicav/FCP), which represent some of the most secure assets on the market.
Extraordinary profit, corporate tax (IS) and changes in dedicated funds: The extraordinary profit (+€24k) requires no particular comment. The income from a number of our investments are concerned by the corporate tax, at the reduced rate. The change in dedicated funds (unused resources carried forward/outstanding commitments), which was particularly high this year (net development of dedicated funds of €1.1 million), is mainly due to the transfer to 2016 of the use of funds received for Nepal (€0.9 million). Most of these funds emanated from international network fundraising.
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Médecins du Monde 2015 Financial Report
2. BALANCE SHEET The balance sheet total (-€2.8 million compared to 2014) was affected by the contraction of donors’ claims (-€6.8 million on asset) and from deferred incomes connected to grants (-€4.1 million on debt). Several programmes with a high financial weight effectively ended in 2015. For the record, agreements with donors are recorded as debts as soon as the agreement is signed, whatever the time period covered; and the deferred incomes represent the portion of the grant concerning future financial years. The fixed asset experienced a €0.4 million increase, primarily since the project of computerising patient records is now nearly completed and since our website has been redesigned (these 2 items are detailed in assets under construction). The liquid assets increased by €3.4 million year-to-year and remain much higher than the short term obligations in debt. Our own funds increased by the surplus amount recorded on the financial year. On 31/12/2015, they were of €16 million, which is 2.16 months of operation. The Debts item decreased by €1 million following the €2.4 million overall reduction of the “Ongoing Legacy, Consortia, and Suppliers” items. This decrease was balanced out by a rise in expenses payable to the international network (+€1.1 million).
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Médecins du Monde 2015 Financial Report
3. INCOME AND EXPENDITURE STATEMENT Method for the calculation of ratios1
2.1 Expenditure
In 2015, the growth in our social programmes (+15% compared with 2014, i.e. +€9.3M) goes with our fundraising costs increase (continuation on fundraising investments, particularly on the international network) as well as the operating costs decrease. Social Programmes represented 81.6% of total expenditure, a noticeable improvement on last year’s ratio.
2.1.1 Social programmes
The distribution between French social programs and international social programs is stable.
1
Extraordinary items are not included because they cannot be analysed from one year to the next. Items which are purely accounting items, such as outstanding commitments, are not included because they are received funds allocated to a future financial year, not the financial year just ended. Ratios are calculated on the basis of the Annual Income and Expenditure Statement, excluding charges to provisions and outstanding commitments from earmarked funds. Their calculation is based on the line, ‘Total 1’, of the Income and Expenditure Statement (the line headed ‘Total expenditure for the financial year recorded in the Income Statement’). 40
MĂŠdecins du Monde 2015 Financial Report
FRENCH PROGRAMMES
Geographical distribution
The amounts correspond to the expenditure, coordination excluded and earmarked funds included
Distribution by domain
In thousands of â‚Źs Reception, Healthcare and Advice Centres Harm Reduction Other French Programmes Exploratory Programmes Witness-bearing Programmes Coordination and Management of French Total
2014
2015 3,502 767 1,836
664 2,821 9,590
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3,914 916 1960 16 657 3305 10,768
Médecins du Monde 2015 Financial Report
RECEPTION, HEALTHCARE AND ADVICE CENTRES (RHACs): cost in 2015: €3 914K 20 Reception, Healthcare and Advice Centres run by our French operations 1 paediatric healthcare and advice centre The healthcare centres mainly offer GP consultations and some specialist consultations in psychiatry, ophthalmology, dermatology, gynaecology, etc. Our teams adopt a flexible approach to individual patients’ healthcare requirements, the aim being to provide quick and easy access to these specialist consultations. Key figures: - 30 571 different patients for 62 531 visits - 38 483 medical consultations - 3 097 dental consultations - More than 20 000 social consultations - The paediatric healthcare and advice centre in Mayotte welcomed 1 086 children and provided 1 405 medical consultations and nursing cares - 1 101 volunteers were committed
HARM REDUCTION drug users, prostitution, prevention HIV/STI/Hepatitis/tuberculosis: cost in 2015: €916K • 5 Harm Reduction drug users sites Activities: - 1 nationally coordinated XBT program on drug analyses supported by Médecins du Monde analyses centres (Paris, Marseille, Toulouse) and partners (Orleans, Paris) - 1 education to harms linked to dugs injections program (ERLI) in Ile de France - 1 pilot program on Naloxone availability (Bayonne, Marseille, Paris) Key figures: - 397 collected and analysed products - 42 drug users welcomed at ERLI - 4 opiate overdose prevention sites trained - 95 volunteers committed • 5 Harm Reduction related with prostitution programs Activities: - Day and/or night rounds: reception, information, advice, harm reduction equipment distribution… - Reception during the day in fixed locations in Nantes and Paris: reception, physical support to patients, thematic workshops… - Advocacy: local and national consciousness-raising, surveys, mobilizations to promote sexworkers healthcare and right access Key figures: - More than 28 000 contacts recorded - 1 875 different persons helped - 155 volunteers committed • 1 prevention HIV/STI/Hepatitis/tuberculosis transversal program Activities: - Strengthen prevention: harm reduction equipment (flyers, condoms, injection equipment…), individual or collective discussions - Improve testing access: information and advice to patients towards STI, hepatitis, tuberculosis testing, partnership with free Diagnosis, Testing and Information Centres or laboratories, HIV and 42
Médecins du Monde 2015 Financial Report
-
HCV rapid screening tests proposals Facilitate healthcare access: partnership with common law structures, physical and psychological support to patients Attest person’s situation regarding these pathologies
Key figures: - 22 programs - About 30 000 concerned persons - More than 2 600 prevention discussions
OTHER FRENCH PROGRAMMES: cost in 2015: €1 960K In 2015, 35 outreach programmes offered reception, healthcare and advice services, or healthcare and advice services for children. Grass-roots initiatives such as these reflect Médecins du Monde’s determination to reach out to people who are unable to take the step of coming to see us and to develop innovating programs meant for people we do not reach for now (jailed persons, isolated minors). These 35 programmes concern different thematic: - 28 programs on not or badly housed persons: living in the streets, living in squats, in slums, in emergency shelters… - 2 programs on migrants in Hauts-de-France region and near the Italian French border - 1 program on agricultural workers near Berre-l’Etang - 1 program on hospitalised children - 1 program on foreign isolated minors in Paris - 1 program on jailed persons in Nantes - 1 program on isolated person in rural areas in Auvergne region Activities: Sanitary watch, medical consultations, support and advice towards common law, day and night rounds, specific prevention actions, health information… Key figures: - More than 25 000 recorded contacts among persons living in the street, in squats, in slums - More than 11 000 recorded contacts among migrants - 295 isolated minors supported - 170 hospitalised children supported - 91 isolated persons in rural areas supported - 874 volunteers committed
KEY EVENTS IN 2015 1.
The arrival of Regional Coordinators
2015 marked another step forward in the process of regionalisation, and further work was done towards the creation of regional coordinator posts. This led to extra coordination and management costs in the regions where Médecins du Monde is working.
2.
The creation of new posts to strengthen existing programmes
In order to manage the situation in Calais region, 4 additional positions were created on our migrant program in 2015.
3. The opening of new programmes A new program was opened in 2015: •
Foreign Isolated Minors in Paris 43
MĂŠdecins du Monde 2015 Financial Report
INTERNATIONAL PROGRAMMES In thousands of â‚Źs
2014
2015
16,375
17,723
Latin America
3,311
2,997
Asia
6,491
7,564
756
1,051
Africa
Eastern Europe Middle East/Maghreb
12,593
17,072
Regionally-managed International Programmes
119
110
Exploratory Programmes
141
85
Cross-sector Programmes
421
662
Operation Smile
558
478
Adoption
538
470
Expansion of International Network
2,471
3,344
Witness-bearing Programmes
1,991
1,946
Programme Coordination and Management
7,056
7,458
52,821
60,966
Total
Geographical distribution
The amounts correspond to the expenditure, coordination excluded and earmarked funds included
Distribution by domain
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Médecins du Monde 2015 Financial Report
FOCUS ON AFRICA Expenditure in 2014: Expenditure in 2015:
€16.4M €18.2M
Including Emergencies: Central African Republic (CAR) and Ebola Expenditure in 2014: €2.9M Expenditure in 2015: €4.1M Key events in 2015 The Africa budget showed strong growth compared with 2014, mainly due to emergencies (escalation in the CAR and of Ebola-related activities in five countries - Liberia, Ivory Coast, Mali, Burkina Faso and DRC). Some long-terms projects were also opened in 2015: Uganda (access to healthcare for LGBTI population), Niger (matrons training). An emergency program was also run during the flooding in Madagascar. The following projects were closed in the course of the year: Burkina Faso (support to Malian refugees), Niger (primary healthcare in Keita). The Malian program closure was realised beginning of 2016, however decided in 2015, therefore the closure expenses are deducted from 2015 financial year.
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Médecins du Monde 2015 Financial Report
FOCUS ON LATIN AMERICA AND THE CARIBBEAN Expenditure in 2014: €3.3M Expenditure in 2015: €3M Key events in 2015 The fall in expenditure in 2015 is explained by the closure the project in Uruguay (September 2015), coordination expenses decrease linked to the Grand’Anse project closure in Haiti, and a regional coordination set-up in central America/Mexico in order to share expenses with MdM Spain.
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Médecins du Monde 2015 Financial Report
FOCUS ON EURASIA Expenditure in 2014: €7.5M Expenditure in 2015: €9.6M
Including Nepal Emergencies Expenditure in 2014: €0.3M Expenditure in 2015: €2.6M Key events in 2015 In 2015, Eurasia programs continued to take shape according to the associative project and the 2020 strategic plan objectives among which social change and empowerment. Foreseen programs closures were realised on time as soon as the objectives were evaluated and the transfers to local structures done (SRH in Laos, Dar Ul Amman in Punjab), or when programs were classified out of the strategic plan 5 main thematic (Moldavia, India). New programs began, with a small financial size during the first year, but with a high potential in terms of operations and advocacy (SRH in Sri Lanka, sex-workers harm reduction in Moscow, Healthcare access for migrants in the Balkans, Displaced persons in Ukraine). Programs with a higher financial size are still well funded (Post-emergencies in Nepal, displaced persons healthcare in Pakistan and Ukraine, hepatitis C harm reduction for drug users and sex-workers in Burma). An innovating project concerning the health and environment thematic was supported and evaluated in the Philippines and will close in 2017. To conclude, rationalization according the strategic plan is almost over, actions are more geographically concentrated on the 5 main thematic. The institutional fund coverage has increased and a strategy has been developed to diversify the grants origin.
Asia:
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MĂŠdecins du Monde 2015 Financial Report
Asia:
Eastern Europe:
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Médecins du Monde 2015 Financial Report
FOCUS ON THE MIDDLE EAST / MAGHREB Expenditure in 2014: €12.6M Expenditure in 2015: €17.6M Including Emergencies Expenditure in 2014: €6.4M Expenditure in 2015: €14.7M Key events in 2015 Médecins du Monde continued to reinforce its response to the Syrian crisis (Syria, Turkey, Jordan and Lebanon) and developed its emergency response in Iraq and Yemen. In Palestine, we continued to work, postemergencies, in the Gaza Strip and started a family planning project. We also supported Médecins du Monde Greece who worked on arriving migrant’s project on the isles and started a migrant project south of Italy.
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Médecins du Monde 2015 Financial Report
2.1.2 Fundraising costs In the course of the financial year, fundraising costs fell from 13.3% to 13.6% of total expenditure. They increased slightly in terms of their value +€1.7M (+17%). As already said before, fundraising investments are increasing, particularly on the international network, on which the increase margin is quite important. This support is means +€0.9M more spent on fundraising The number of donations increased and as a consequence the corresponding processing costs too. The ratio of Total Funds (excluding Other Income) to fundraising costs improved over the financial year, rising from 7.2 in 2014 to 7.4 in 2015 (number of euros raised for every euro spent). The ratio of Funds Raised from the Public to the cost of appeals for public giving is increasing from €3.9 raised in 2014 to €4 raised in 2015.
2.1.3 Operating expenses Operating expenses, quite stable (-€0.1M i.e. -2.6%) for the financial year, decreased in value by 4.8% of total expenditure.
3.2. Funding sources
Our funding has already been analysed in an earlier part of this report. It should, however, be emphasised that we strive to maintain a balance between public-sector and private funding. Despite the strong growth shown by public-sector grants (+€7.6M) due to the expansion of our programmes, they accounted for less than 50% of our total revenue.
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MĂŠdecins du Monde 2015 Financial Report
Part 3:
Special Report on Regulated Agreements
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MĂŠdecins du Monde 2015 Financial Report
Part 4: 2016 Budget
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Médecins du Monde 2015 Financial Report
Expenditure
2016 Budget Income
Social Programmes Activities carried out in France Activities carried out abroad Fundraising costs Costs of appeals to public generosity Costs of fundraising from other private sources Costs related to applications for grants and other public sector funding Running costs Total
89 000 885 Funds raised from the general public 12 742 679 Donations 76 258 206 Legacies, other gratuities 12 591 446 Other revenue from appeals to public generosity 11 917 375 Sponsorship 400 026 Other private funds 274 045 Grants and other public sector funding 0 Other revenue 4 537 759 Deficit for the financial year 106 130 090 Total
2016 Budget 44 670 076 36 587 371 5 500 000 2 582 705 19 000 5 493 084 55 191 330 527 600 229 000 106 130 090
Comments on the 2016 budget The 2016 budget was approved by the Board of Directors on 18 December 2015. It is presented in the form of an Income and Expenditure Statement, and describes the activities of our Association (‘Expenditure’), and the income used to fund these activities (‘Income’). Provisions for contingencies concerning not obtained grants are included in the expenditures. It has been prepared using a participatory, structuring process, i.e. Joint Strategic Committees, a framework memorandum on policy and budgetary orientation, and Joint Budgetary Committees. After two consecutive years of deficit (2013 and 2014) and with 2015 ending with a small surplus, the Board of Directors decided to put a balanced budget to the vote at the General Assembly (after taking into account the reserve created for association project during the 2015 GA). This budget, which is built on a basis of an increasing growth (+ 17% compared to 2015), has been set up as a transition budget, allowing us to adapt our programmes in accordance with the areas defined in the Board’s strategic plan. Therefore, it takes into account the future development of certain themes (migrants for instance) and expense optimisation (in particular for the headquarters).
2016 budget expenditure The growth in our activities continues in 2016, with our overall volume of expenditure (€106M) increasing by €15M compared with the actual figures for 2015. This growth reflects the expansion of our social programmes in France and abroad, in particular the expansion of our emergency programmes (Syrian crisis, Iraq …). The total volume of social programmes shown in the 2016 budget is therefore €89M, an increase of €17M compared with the actual figures for 2015 (€71.7M). The ratio of social programmes to total expenditure works out at 83.9%, compared with 81.6% in 2015 (actual figures).
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Médecins du Monde 2015 Financial Report
International programmes are showing significant growth, and their financial volume for 2016 is set at € 76.3M, compared with €61M in 2015. Budgetary growth continues in the French sector too, increasing from €10.8M in 2015 to €12.7M in the 2016 budget. Fundraising costs have gone from €11.9M in 2015 (actual figures) to €12.6M in the 2016 budget. Most fundraising costs are to do with acquiring new donors. The budget for the Internet is on the rise and 2016 costs anticipate both an increase in donations as well as the cost pertaining to the transfer of our database to a new provider, which will eventually reduce our expenditures. Doctors of the World is also investing to develop its Partnership department. Finally, the costs of decisions taken in 2015 concerning the reinforcement of the Legacy department are being recorded over the full year 2016. Even though their actual value has increased, fundraising costs still represent no more than 11.9% of 2016 budget expenditure, compared with 13.6% in 2015 (actual figures). Operating costs have slightly risen (to €4.5M in the 2016 budget, compared with actual figures of €4.3M in 2015). Their impact on expenditure in 2016 has been reduced to 4.2%, compared with 4.8% in 2015.
2016 budget income Revenue from public giving has increased (€44.7M in the 2016 budget compared with actual figures of €45.9M in 2015). The Nepal emergency had a significant effect on the 2015 effective income. Thus, donations in France are experiencing a slight drop in 2016 (-€1.3 million), despite the ongoing progression of direct debits. The estimated amount of legacies is of €5.5 million, also a slight fall with respect to 2015 (-€0.6 million), in a year that was marked by non-recurring revenue. On the other hand, international network private fundraising, which has been integrated in the income deriving from public generosity, keeps progressing (+€0.6 million with respect to 2015). We are indeed counting on return on investments carried out previously. The restructuring of the department responsible for obtaining private grants and corporate sponsorship will mean an increase in associated revenue, now set at €5.5M (actual figures for 2015: €3.4M). Public-sector grants continue to show strong growth in 2016, amounting to €55.2M (compared with €39.2M in 2015). In the 2016 budget, they represent 52.1% of total income, while total private funds and funds from public giving account for 47.9%.
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Médecins du Monde 2015 Financial Report
Conclusion: 2016 budget This 2016 budget, balanced after taking into account the reserve created for innovative projects during the General Assembly, reflects the Organisation’s strategy and its desire to: •
Keep on developing its social programmes in France and abroad, in a world marked by multiple crises and growing needs, whilst adapting its programmes in accordance with the strategic plan’s areas.
•
Diversify funding, by developing both international fundraising within its own network as well as public funding.
•
Maintain its own funds and secure financial solidity in relation to the scope of its global growth.
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DOCTORS OF THE WORLD
ALSO CARES FOR INJUSTICE
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