IPPF Financial Statements 2004 by IPPF

Financial statements 2004

IPPF Financial statements 2004

CONTENTS Annual report of the Governing Council

Report of the Independent Auditors

Statement of Financial Activities

Balance Sheets

Cash Flow Statement

Notes to the Financial Statements

IPPF Financial statements 2004

Annual report of the Governing Council for the year ended 31 December 2004

1 INTRODUCTION The International Planned Parenthood Federation (IPPF) is a global network of member associations in 149 countries1 and the world’s foremost voluntary, non-governmental provider and advocate of sexual and reproductive health and rights. IPPF was formed in 1952 and incorporated in 1977 under a UK Act of Parliament: the International Planned Parenthood Federation Act 1977. IPPF is governed by a Governing Council composed of 30 volunteers from the governing bodies of the membership

organizations, and appoints a Director-General as its chief executive officer responsible for managing the affairs of the Federation as determined by the Governing Council. Governing Council members are elected for a period of two years. Each Regional Council elects five members to serve as Governing Council members. The Member Associations of IPPF are autonomous and report independently, therefore their accounts are not incorporated here.

2 CHARITY REGISTRATION NUMBER 229476 3 MEMBERS OF THE GOVERNING COUNCIL ENTITLED TO VOTE AT ITS 2004 MEETINGS Africa Region Dr Mamadi Condé Mrs Hannatu L Ibrahim Miss Catherine Kamau Mrs Naomi Seboni 2 Mrs Tamaro Touré

Europe Region Guinea Conakry Nigeria Kenya Botswana Senegal

Arab World Region Mrs Mariam Ment Ahmed Aicha Mrs Kawthar Al-Khaier Mr Moncef Ben Ibrahim Prof Said Badri Kabouya Ms Lina Sabra

Mr Gert-Inge Brander Ms Gunta Lazdane Ms Velimira Mladenova Mr Paul Soemer Ms Carine Vrancken

Sweden Latvia Bulgaria Germany Belgium

South Asia Region Mauritania Syria Tunisia Algeria Lebanon

Mr Chhatra Bahadur GIRI Mr Syed Munir Husain Dr (Mrs) Nina Puri (President) Dr Safieh Shahriari Ms Roshni Motha Shirafkan

East, South East Asia & Oceania Region

Western Hemisphere Region

Ms. Hang Can Prof Ho Pak Chung Ms Aiko Iijima Dr Sea Baick Lee Dr Zhao Baige

Ms Blanca Esponda Mr Monty Eustace (Treasurer) Ms Marcela Rueda Dr Jacqueline Sharpe Ms Esther Vicente

China Hong Kong Japan Republic of Korea China

Nepal Pakistan India Iran Sri Lanka

Mexico St Vincent Colombia Trinidad and Tobago Puerto Rico

4 The RESPONSIBILITIES OF THE GOVERNING COUNCIL The Charities Act 1993 and the International Planned Parenthood Federation Act 1977 require the members of the Governing Council to keep proper accounting records in order to enable them to prepare accounts for each financial year which give a true and fair view of the state of affairs of IPPF and the result for that period. In preparing these accounts, the members of the Governing Council are required to follow the recommendations out lined in the Statement of Recommended Practice, Accounting and Reporting by Charities, issued by the Charity Commissioners.

1 2

The members of the Governing Council are required to: æ Select suitable accounting policies and then apply them consistently; æ Make judgements and estimates that are reasonable and prudent; æ State whether applicable accounting standards have been followed; æ Prepare the financial statements on the going concern basis unless it is inappropriate to do so; æ Safeguard the assets of IPPF and hence take reasonable steps for the prevention and detection of fraud and other irregularities.

Including the Caribbean Affiliation which has an additional 18 country members. Replaced Mr Alfred Masupha (December 2004)

IPPF Financial statements 2004

Annual report of the Governing Council for the year ended 31 December 2004

5 ORGANIZATION The IPPF is a world-wide network of autonomous member associations, organized into six geographical regions, each with a Regional Council who elect members of the Governing Council. Each member association has a volunteer Board of Directors (elected by the membership of the Association) and sends one or more as a delegate to one of six Regional Councils. IPPF has a Secretariat that carries out the policies and functions as approved by the Governing Council. The

Secretariat has its headquarters in London and is divided into Central and Regional functional units. There are six Regional Offices: Africa (Nairobi, Kenya), Arab World (Tunis, Tunisia), Europe (Brussels, Belgium), South Asia (New Delhi, India), East, South East Asia and Oceania (Kuala Lumpur, Malaysia) and Western Hemisphere (New York, USA). These regional offices all act as branches of IPPF and in accordance with the IPPF Act 1977 constitute the IPPF as the entity.

6 VISION AND MISSION STATEMENT Our Vision IPPF envisages a world in which every woman, man and young person has access to the information and services they need; in which sexuality is recognized both as a natural and precious aspect of life and as a fundamental human right; a world in which choices are fully respected and where stigma and discrimination have no place.

Our Mission æ IPPF aims to improve the quality of life of individuals by campaigning for sexual and reproductive health and rights through advocacy and services, especially for poor and vulnerable people æ We defend the right of all young people to enjoy their sexual lives free from ill-health, unwanted pregnancy, violence and discrimination æ We support a woman’s right to choose to terminate her pregnancy legally and safely æ We strive to eliminate STIs and reduce the spread and impact of HIV/AIDS

7 OUR CORE VALUES æ IPPF believes that sexual and reproductive rights should be guaranteed for everyone because they are internationally recognized basic human rights æ We are committed to gender equality, and to eliminating the discrimination which threatens individual well-being and leads to the widespread violation of health and human rights, particularly those of young women æ We value diversity and especially emphasise the

participation of young people and people living with HIV/ AIDS in our governance and in our programmes æ We consider the spirit of volunteerism to be central to achieving our mandate and advancing our cause æ We are committed to working in partnership with communities, governments, other organizations and donors.

8 Strategic Framework The November 2003 Governing Council approved the IPPF Strategic Framework, 2005-2015. This framework is built around five priority focus areas called the ‘Five A’s’: æ Adolescents/Young People Providing youth friendly services to meet the needs and rights of young people. æ HIV/AIDS Increasing access to prevention care, support and treatment globally, and to reduce barriers that make people vulnerable to infection. æ Abortion To advocate for the right to safe abortion services and provide them to the fullest extent permitted by law. æ Access Ensuring access to information and services to improve sexual and reproductive health with particular focus on marginalized communities. æ Advocacy To strengthen recognition of the importance of sexual and reproductive health within the context of international development and to increase resources in support of SRH services.

The Strategic Framework is not intended to impose a rigid set of rules or constraints. Rather, it embraces the diversity of situations member associations and regions face. Whilst providing this flexibility, the framework unites the Federation in a common vision on which we are compelled to act if we are to meet the needs of women, men and young people throughout the world. Underpinning the Five As is an overarching commitment to mainstreaming gender and rights approaches and a commitment to organizational accountability, efficiency and effectiveness. A new accreditation system is dedicated to ensuring that Member Associations are well governed and managed and that they provide relevant up-to-date information and high quality training and clinical services. Accreditation will help IPPF to meet the ultimate challenge – to ensure that vulnerable populations are, and continue

IPPF Financial statements 2004

Annual report of the Governing Council for the year ended 31 December 2004 to be, serviced to a high standard all over the world. Accreditation is achieved through a rigorous review process once every five years. There is also an emphasis on building Member Associations’ capacity and the Federation as a whole to develop the skills and technical knowledge needed to implement and resource the new framework.

A crucial element of this Framework is the measurement of its implementation and impact. For this we have developed a series of Global Indicators for each of the five priority areas. Gathered across the Federation, these indicators will enable us to review, monitor and evaluate our performance against the key goals as a more effective way of reporting on our successes, measuring progress, and assessing the human impact of our work.

9 AREAS OF IPPF’S WORK The following provides a brief overview of some of the activities which the IPPF has been involved with and where achievements have been made in 2004 Further information is available from our web-site (www.ippf.org) and in our Annual Programme Review which has more extensive information about areas in which our Member Associations are working.

explore youth citizenship in the context of SRHR and to prepare the young participants to effectively contribute to the Roundtable. Young people were a key part of the Countdown 2015 process with 20% represented on the Steering Committee, 17% at the Global Roundtable and 15% of the speakers.

Strategic Planning

The outcome of the Global Roundtable was an Action Plan : Health and Hope, Rights and Responsibilities. Full details of Countdown 2015 and the activities which continue into 2005 can be viewed on the dedicated web-site: www.countdown2015.org

2004 saw the first stage in the implementation of the IPPF Strategic Framework. All Regional Offices have been working extensively with their Member Associations to assist in the development of individual strategic plans. This process is greatly assisted by the electronic Integrated Management System (eIMS) which is now used by over 90 Associations for preparing annual programme budget, half-year and annual reports. In 2004 the system was further developed to include a commodities module for recording service statistical data for clinical, surgical, counselling and laboratory services. In the Arab World Region the Arabic version of the eIMS is now used in a number of their Member Associations, this is in addition to the English, French and Spanish versions.

Countdown 2015: Sexual and Reproductive Rights for All 2004 marked the ten year anniversary of the International Conference on Population and Development (ICPD). In order to take stock of progress made in meeting the goals of ICPD as well as moving the vision forward, fostering new leadership and activism and broadening the constituency of key stakeholders, a series of initiatives and events were organized. IPPF, together with Family Care International and Population Action International launched the initiative and headed a steering group of some 26 NGO networks, with substantial financing from the European Commission as well as 16 other donors. Regional meetings were held in Kenya, Malaysia, Nepal, New York and Brazil during 2004. A highlight of the year was the Global Roundtable in London. This brought together 557 participants from 109 countries representing the world’s leading activists, field specialists, young leaders, academics, donors, parliamentarians and government officials. The Global Roundtable was preceded by a Youth Day which brought together 94 young people from 56 countries to

HIV/AIDS The Bangkok International Conference on HIV/AIDS in July 2004 and the Countdown 2015 discussions have all emphasized the need to link Sexual and Reproductive Health and HIV/AIDS. IPPF is a key signatory to the NGO Code of Practice. In addition, partnerships between IPPF and UNAIDS, UNFPA, the International Community of Women (ICW) and the Global Campaign for Microbicides were strengthened. For the first time in the 20 year history of the AIDS epidemic, women account for more than 50% of those infected with HIV globally. The possibility for HIV positive women to now live longer, and have more productive and fulfilling lives through expanded access to anti-retroviral treatment and care exists. IPPF and the ICW explored this in a booklet called Dreams and Desires which is a collection of courageous women’s voices that highlight what it means to be a sexually active HIV positive women.

Reproductive Health Commodity Security (RHCS) RHCS is defined as the action required to address the ever-increasing gap between the supply of and demand for contraceptives and other essential sexual and reproductive health supplies. IPPF recognizes that the reliable supply of commodities is a major source of concern. Through our subsidiary company, Icon, we promote and provide contraceptives to our Member Associations. Icon is also responsible for marketing contraceptives to other NGOs and working with the commercial sector to make branded products available for appropriate market segments e.g. The COOL Condoms brand to youth. Icon is currently undertaking research in 10 countries to establish potential opportunities to establish programmes to target such market shortfalls.

IPPF Financial statements 2004

Annual report of the Governing Council for the year ended 31 December 2004 Accreditation IPPF launched a systematic and comprehensive accreditation system during 2003. This scheme reviews and measures the extent to which all Member Associations comply with IPPF’s 65 essential standards of membership. These standards cover issues of governance, management, programming and service delivery. The accreditation reviews continued during 2004 and covered 26 Member Associations in all six regions.

Tsunami The end of 2004 brought the devastating impact of the Tsunami. Although not a humanitarian aid organization, IPPF quickly responded to the immediate needs of our Associations in the region. Among the five million people

affected in the tsunami-devastated Asia, there are at least 150,000 women who are currently pregnant or who may be facing pregnancy complications and need urgent medical and nutritional support. IPPF staff in Indonesia, Sri Lanka, India, Thailand, and the Maldives are already on the ground doing all they can to care for women and girls in need. But some of our members in these countries have lost staff and suffered destruction of their premises. At least two of our clinics in the stricken province of Aceh were washed away and are in urgent need of help in both the immediate emergency aftermath and for the longer term rebuilding of their communities. IPPF has secured funding of almost US$1 million to assist in long term rehabilitation work within the region.

10 GOVERNANCE Whilst no system of internal control can provide absolute assurance against material misstatement or loss, the IPPF’s system has been developed to provide reasonable assurance to the Governing Council that there are proper procedures in place and that they are operating effectively. The key elements of the system of internal control are: æ Delegation: there is a clear organizational structure with lines of authority and responsibility for control; and procedures for reporting decisions, actions and issues; æ Reporting: the Governing Council approves and reviews the annual work programme budget and income predictions and monitors actual and forecast income and expenditure on a regular basis; æ Risk management: there are processes in place for identifying, evaluating and managing significant risks faced by the IPPF. The Governing Council believe that all the major risks to which the IPPF is exposed have

been identified and reviewed and that systems have been established to mitigate those risks. The IPPF are continually updating this process and are currently ensuring that all Regional offices have in place a detailed risk map and action plan; æ Internal audit: an internal audit function assesses risks and reviews controls within the IPPF. The position of internal auditor was vacant from April 2004 and the process of recruiting a new internal auditor is on-going; and æ Review: the Audit Committee is comprised of four members elected by Governing Council from a list of persons who are either volunteer members of a member organization but who are not members of Governing Council as well as the President and Treasurer. The Committee oversees the adequacy of the system of internal control, and IPPF compliance with relevant statutory and other finance regulations and advises the Governing Council of any relevant matters

11 STATEMENT ON RESERVES The members of the Governing Council have reviewed the level of reserves. Note 17 to the financial statements shows the funds of the IPPF. This indicates the split of reserves between the general, designated, restricted and endowment funds. The members of the Governing Council aim to have over the longer term a general reserve balance of 25% of the next year’s approved unrestricted expenditure. This percentage represents 3 months of unrestricted expenditure. This recognizes the timing of the majority of annual unrestricted government grants which are received in the second-half of each year, and the need for IPPF to meet the commitments to Member Associations and the Secretariat (Regional and Central offices).

At the time of approving the 2005 budget in December 2004, the general reserve at 1 January 2005 was estimated to be US$22 million. The unrestricted expenditure programme budget approved for 2005 was US$65.2 million. The general reserve therefore reflected 33.7% against our ideal position of 25%. The actual level of the general reserve at 1 January 2005 was US$24.1 million. This represents 36.9% or 4.4 months of the budgeted 2005 unrestricted expenditure. The Governing Council monitor the level of the general reserve on an annual basis. In 2004, the level of the general fund represented 43% of the unrestricted budget. In order to reduce the level of reserve to the target of 25% an additional US$8.3 million was identified and allocated to activities occurring in 2004 and 2005. The same process will be undertaken in 2005 and surplus funds assigned to strategic priority areas.

IPPF Financial statements 2004

Annual report of the Governing Council for the year ended 31 December 2004 The largest designated fund relates to the Western Hemisphere Sustainability Fund. This fund of US$23.4 million was created in 2002 following the receipt of a legacy for

use in the Western Hemisphere Region, as such it has been designated for that purpose.

12 STATEMENT ON INVESTMENTS There are no restrictions under the 1977 Act in relation to the charity’s powers to invest. IPPF currently hold investments in terms of shares and securities as well as cash deposits.

IPPF continue to closely monitor the performance of their investments and in 2004 the stock market continued to improve from the lows experienced in 2002.

Shares and securities

Cash

All shares and securities held are traded on the New York Stock Exchange. The Western Hemisphere Regional Board have appointed an Investment Committee to monitor these investments. The committee is comprised of four members of the Board who have relevant investment experience. A review of the investment managers performance was undertaken during 2004 and following a tender review of four managers, Merrill Lynch Asset Management were replaced on the bulk of the portfolio by GMO (Grantham, Mayo, Otterloo & Co). The investment managers provide quarterly performance reports to the investment committee detailing all asset information as well as investment returns against appropriate indices.

Regular cash-flow predictions for both unrestricted and restricted income and expenditure are prepared. Given the historical timing of receipts the level of cash on deposit varies significantly during the year. In order to obtain sufficient returns on such balances, yet allowing for reaction to emergencies, surplus liquid assets are placed on short-term deposit on a weekly basis. Investment options are regularly reviewed and IPPF have identified deposit accounts which allow the maximum interest to be generated from cash balances whilst giving the flexibility of access to those funds at short notice and these accounts are used when the cash reserves warrant such investment.

13 GRANT MAKING PROCEDURES IPPF revised the system of resource allocation which up to 2004 has been based on the UNFPA’s classification list of global unmet needs for sexual and reproductive health services. The revised system incorporates criteria relating

to the level of need in each of the five strategic priority areas, using internationally recognized data to assess these needs and then assigning a specific core grant to each Member Association.

14 FINANCIAL REVIEW During 2004, IPPF provided US$45.2 million to member associations and partner organizations. Through the Regional and Central Offices a further US$13.3 million was provided in direct technical assistance and support, enhancing the quality of services of all IPPF Member Associations. Working in over 180 countries, IPPF continues to be the largest civil society provider of sexual and reproductive health information and services in the world. Approximately 31 million visits are made to Member Association outlets each year. Visits for family planning services have reached a five-year high of over 12 million, while there were nearly 2.5 million new contraceptive users. Around 19 million visits are made for non-contraceptive services such as ‘Well Women’ care, pregnancy tests, family planning counselling, and treatment for sexually transmitted infections. Indeed six out of every ten client visits to Member Association outlets were for non-contraceptive services.

Income The overall income received by IPPF in 2004 was US$96.4 million, an increase of 11%.

IPPF’s main source of funding is government contributions which accounted for 74% of the total incoming resources. Unrestricted government grants showed a significant increase of 13% or US$8.1 million. This was due to significant increases in the support from the United Kingdom (33%) and Sweden (43%). The further weakening of the US dollar against European currencies also provided significant gains on foreign currency translation. Restricted government grants amounted to US$2.6 million. The Japanese Government provided a further US$1 million for a HIV/AIDS trust fund. The Danish Government also provided US$850,000 to pilot capacity building initiatives. Grants from multilaterals and other income sources amounted to US$20.3 million, an increase of US$0.3 million. 17 donors funded the ICPD at 10 and Countdown 2015 Global Roundtable with total support of US$4.2 million, of which the European Commission provided US$1.6 million. The support of a number of US Foundations who provide unrestricted funding along with support from the European Commission, the U.K. Big Lottery Fund, UNFPA and income raised by the IPPF private sector fundraising programme from the general public has allowed IPPF to diversify funding and see support for a number of innovative projects being undertaken.

IPPF Financial statements 2004

Annual report of the Governing Council for the year ended 31 December 2004 Expenditure

Trading Subsidiary

The overall expenditure in 2004 was US$82.2 million. This compared with US$74.8 million in the previous year.

2004 was the third year in which the trading subsidiary of IPPF, ICON Ltd operated. The company primarily engages in commodity supply services and with the social marketing of contraceptives in conjunction with Member Associations. In 2004 the company made a trading loss after tax of US$46,000 for the period to 31 December 2004.

Grants to member associations increased by 8.4% to US$45.2 million. This was due to an increase in unrestricted grants which went up by 19% from $31.3 million to U$37.3 million. Restricted expenditure was greater than income received in year reflecting multi-year agreements where funding is received at the start of a project with expenditure continuing for a number of subsequent years.

Funds When compared with 2003, IPPFâ&#x20AC;&#x2122;s total funds and reserves increased by US$15.6 million. The general fund decreased by US$0.6 million in 2004, to an overall level of US$24.1 million. This has been due to the allocation of the 2003 surplus to specific activities which occurred in 2004 or for which the funds have been designated for use in 2005. IPPF will review the level of reserves and decide how surplus funds can be allocated in line with the strategic priorities in 2005. The largest designated reserve (US$23.4 million) relates to a substantial individual legacy received by Western Hemisphere Region in 2002 which is being invested and the income used to fund projects within that region.

Future Funding IPPF continues to try and increase longer term stability and income. Government donors do not generally confirm their contributions until shortly before they are paid and usually only for the particular year in question. Indications for 2005 are positive with many government donors committing to the same level of funding as 2004. IPPF continues to work on diversifying its funding base by increasing the number of fundraising opportunities among non-governmental organizations including trusts, foundations, the private sector and individual giving. IPPF thanks all its donors for their continuing and generous support. It also wishes to acknowledge the immense ongoing contribution it receives from its volunteers, in terms of the time, hard work, and personal commitment given on behalf of IPPF and its objectives. Approved on behalf of the Governing Council on 6 May 2005.

The restricted fund balance of US$12.9 million reflects funds received in advance of the projects taking place. These funds will be used in 2005 and beyond. Dr (Mrs) Nina Puri President

Mr Monty Eustace Treasurer

IPPF Financial statements 2004

REPORT OF THE INDEPENDENT AUDITORS, KPMG LLP, TO THE GOVERNING COUNCIL OF THE INTERNATIONAL PLANNED PARENTHOOD FEDERATION We have audited the financial statements on pages 9 to 42. This report is made solely to the Governing Council member’s, as a body, in accordance with section 43 of the Charities Act 1993 and regulations made under section 44 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the Governing Council members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the members of the Governing Council and auditors The members of Governing Council are responsible for preparing the annual report, as described on page 2, and the financial statements in accordance with applicable United Kingdom law and accounting standards. Our responsibilities, as independent auditors, are established in the United Kingdom by statute, the Auditing Practices Board and by our profession’s ethical guidance. We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 21 and section 44 respectively of those Acts. We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the International Planned Parenthood Federation Act 1977 and the Charities Act 1993. We also report to you if, in our opinion, the trustees’ report is not consistent with the financial statements, if the charity has not kept proper accounting records or if we have not received all the information and explanations we require for our audit. We read the other information accompanying the financial statements and consider whether it is consistent with those statements. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Basis of audit opinion We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charity’s and the group’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion the financial statements give a true and fair view of the state of affairs of the charity and the group as at 31 December 2004 and of the group’s incoming resources and application of resources in the year then ended and have been properly prepared in accordance with the International Planned Parenthood Federation Act 1977 and the Charities Act 1993.

KPMG LLP Chartered Accountants & Registered Auditor London 6 May 2005

IPPF Financial statements 2004

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITES FOR THE YEAR ENDED 31 DECEMBER 2004

INCOME Donations, legacies and similar incoming resources: Grants from governments Grants from multilaterals and other income sources Activities in furtherance of the charity’s objectives Activities for generating funds: Investment income and interest Foreign exchange gains Income of subsidiary trading company TOTAL INCOMING RESOURCES Less costs of generating funds: Regional Fundraising Central Fundraising Expenditure of subsidiary trading company

Notes

Unrestricted $’000

Donor Restricted $’000

Endowment $’000

2004 Total $’000

2003 Total $’000

2 3 5

68,542 8,489 503

2,609 11,786 16

71,151 20,275 519

63,438 20,004 367

2,277 663 1,294 81,768

223 14,634

2,500 663 1,294 96,402

1,290 967 979 87,045

7 8

1,328 910 1,900 4,138 77,630

48 48 14,586

1,376 910 1,900 4,186 92,216

785 739 1,075 2,599 84,446

6 6 6

31,561 2,812 2,952

7,326 575

38,887 2,812 3,527

36,246 1,822 3,704

7 8

3,594 880

4,373 4,450

7,967 5,330

7,699 5,006

7 8

4,843 2,165

182 -

5,025 2,165

2,830 1,467

7 8 7 8

4,574 7,561 60,942

198 17,104

4,772 7,561 78,046

5,452 5,645 65 2,313 72,249

65,080

17,152

82,232

74,848

16,688 234 16,922 1,133 18,055 59,825 41 77,921

(2,518) (234) (2,752) 178 (2,574) 15,476 (17) 12,885

93 93 838 931

14,170 14,170 1,404 15,574 76,139 24 91,737

12,197 12,197 3,145 15,342 60,795 2 76,139

Net incoming resources available for charitable application CHARITABLE EXPENDITURE Grants to Member Associations and partner organizations: Cash grants Technical assistance Commodity grants Costs of activities in furtherance of the objects of the charity: Programme activities: Regional activities Central activities Support Costs: Regional programme support Central programme support Managing and administering the charity: Regional administration and general services Central administration and general services Regional reorganization costs Central reorganization costs TOTAL CHARITABLE EXPENDITURE Total Resources Expended NET INCOMING / (OUTGOING) RESOURCES BEFORE TRANSFERS Transfers between funds NET INCOMING / (OUTGOING) RESOURCES Gains / (losses) on investment assets NET MOVEMENT IN FUNDS Funds brought forward at 1 January Unrealized foreign exchange movements taken to reserves FUNDS CARRIED FORWARD AT 31 DECEMBER

17 12 17 17

There are no recognized gains and losses other than those included above. All the above results arise from continuing operations. The notes on pages 14 to 42 form part of these accounts.

IPPF Financial statements 2004

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2004

FIXED ASSETS Tangible assets Investments Long term loans Total Fixed Assets CURRENT ASSETS Stock of goods Receivable from donors Receivable from associations Receivable from others Prepayments Cash at bank Total current assets CREDITORS: amounts falling due within one year Accounts payable Payable to associations Accruals and other creditors Deferred income Total current liabilities Net Current Assets Provisions for liabilities and charges TOTAL NET ASSETS Represented by: Unrestricted: General Designated Restricted Endowment TOTAL FUNDS AND RESERVES

Notes

Unrestricted $’000

Donor Restricted $’000

Endowment $’000

2004 Total $’000

2003 Total $’000

11 12 13

1,716 28,248 523 30,487

2,869 2,869

931 931

1,716 32,048 523 34,287

1,939 29,875 586 32,400

609 7,634 1,367 1,233 2,020 44,549 57,412

2,251 1,429 4 1 8,630 12,315

609 9,885 2,796 1,237 2,021 53,179 69,727

852 6,034 701 1,935 943 43,519 53,984

2,101 2,411 1,435 4,031 9,978 47,434

658 547 400 694 2,299 10,016

2,759 2,958 1,835 4,725 12,277 57,450

2,228 2,031 1,512 4,283 10,054 43,930

77,921

12,885

931

91,737

191 76,139

24,065 53,856 77,921

12,885 12,885

931 931

24,065 53,856 12,885 931 91,737

24,700 35,125 15,476 838 76,139

Approved on behalf of the Governing Council on 6 May 2005

Dr (Mrs) Nina Puri President

Mr Monty Eustace Treasurer

IPPF Financial statements 2004

BALANCE SHEET (CHARITY) AS AT 31 DECEMBER 2004

Notes

2004 Total $’000

2003 Total $’000

11 12 13

1,716 32,048 523 34,287

1,939 29,875 586 32,400

602 9,885 2,795 1,371 2,021 52,830 69,504

826 6,034 702 1,821 943 44,569 54,895

2,607 2,958 1,765 4,725 12,055 57,449

1,902 2,453 2,449 4,283 11,087 43,808

91,736

191 76,017

24,064 53,856 12,885 931 91,736

24,343 35,368 15,468 838 76,017

Approved on behalf of the Governing Council on 6 May 2005

Dr (Mrs) Nina Puri President

Mr Monty Eustace Treasurer

IPPF Financial statements 2004

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2004 Note

Net cash inflow from operating activities

$’000

Returns on investments Interest received and similar income Capital expenditure Purchase of tangible assets Purchase of marketable securities Sale of tangible assets Sale of marketable securities

2004 $’000

$’000

7,830

15,087

2,530

1,296

(467) (26,023) 23 25,704

(241) (8,261) 1 5,595 (763)

Financing Long term loan repayments received Long term loans issued Increase in cash

63 b

2003 $’000

(2,906) 424 -

424

9,660

13,901

14,170 (2,500) 652 (3) 11 (449) (3,851) (2,095) 698 243 (1,078) 442 531 927 323 (191) 7,830

12,197 (1,290) 706 (26) (1,874) 2,145 147 21 (622) (498) 2,788 1,032 395 (57) 23 15,087

Note a: Reconciliation of net incoming resources to net cash inflow from operating activities Net incoming resources Interest receivable and similar income Depreciation Exchange movement on tangible assets Loss on disposal of fixed assets Donations in kind (Increase)/decrease in receivables from donors (Increase)/decrease in receivables from associations Decrease in receivables from others Decrease/(increase) in stock Increase in prepayments Increase in deferred income Increase in accounts payable Increase in payable to associations Increase/(decrease) in accruals and other creditors (Decrease)/increase in provisions Net cash inflow from operating activities

IPPF Financial statements 2004

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2004 (CONTINUED) Note b: Reconciliation of net cash flow to movements in net debt:

Increase in cash in the year Movement on foreign exchange Movement in net debt for the period Net funds at 1 January 2004 Net funds at 31 December 2004

Note c: Analysis of changes in net debt:

Cash in hand and at bank

Note

2004 $’000

2003 $’000

9,660 9,660 43,519 53,179

13,901 13,901 29,618 43,519

At 1 Jan 2004 $’000

Cash flows $’000

At 31 Dec 2004 $’000

43,519

9,660

53,179

Note of explanation Cash balances are historically higher at 31 December each year due to the timing of government receipts, many of which are received in the last quarter of the financial year. However, the timing of grant payments to Member Associations means that the cash funds are significantly reduced in the first quarter of each financial year. The cash balance also includes restricted funds for use in the following years.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

1 ACCOUNTING POLICIES Basis of accounting

Donations and grants

These financial statements have been prepared under the historical cost convention, as modified for the revaluation of certain investments, and in accordance with applicable United Kingdom accounting standards, applicable United Kingdom law and the Statement of Recommended Practice (“SORP”), Accounting and Reporting by Charities, issued by the Charity Commissioners.

Grants from governments and other agencies have been included as donations and similar incoming resources. These are included in incoming resources when these are receivable, except as follows:

Basis of preparation IPPF exists as an entity under the provisions of the IPPF Act. There are six regions within the Federation and the accounts of these are combined to form the IPPF. All regional offices act as branches of IPPF and therefore fall under the term ‘branches’ in accordance with FRS 2 and the Charities SORP. IPPF Africa Regional Office, Nairobi, and IPPF Europe Regional Office, Brussels are branches of the head office, Central Office in London. Their results are combined with those of Central Office. IPPF, Western Hemisphere Inc (WHR) is a separate company incorporated in the State of New York, USA, as a membership corporation with not-for-profit status. All its results are combined with those of Central Office on the basis that its members are also members of IPPF, and are in a Regional Office pursuing the same objectives and policies as the rest of IPPF. IPPF WHR is not a trading subsidiary, and therefore its results have not been separately disclosed. IPPF has a trading subsidiary, ICON Ltd (previously named ENet.comm Ltd). This primarily engages in commodity supply services and social marketing of contraceptives in conjunction with member associations. Its results for the trading period to 31 December 2004 have been consolidated in accordance with FRS 2 on a line by line basis. Incoming Resources Income is recognized in the period to which it is receivable (see separate deferred income policy). Commercial trading activities Income from commercial trading activities is included in the period in which the group is entitled to receipt.

æ When donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods. æ When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met. Legacies Legacies are recognized when the charity is advised by the personal representatives of an estate that payment will be made or property transferred and the amount involved can be quantified. Investment Income & Interest Investment income in the form of dividends together with interest is included when receivable by the charity. Intangible Income Donations in kind are included in donations and similar incoming resources where the amounts are material and an estimated market value is readily attainable. IPPF wishes to acknowledge the immense on-going contribution it receives from its volunteers, in terms of the time, hard work, and personal commitment given on behalf of IPPF and its objectives. IPPF does not believe it is possible, or desirable, to place a monetary value on this contribution, and subsequently does not recognize volunteer time as incoming resources in the Financial Statements. IPPF does not believe there is a concise, workable, or accurate method of quantifying this contribution, or establishing how this contribution is expressed in financial terms.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

1 ACCOUNTING POLICIES (CONTINUED) Resources expended and basis of allocation of costs

Deferred income

Grants payable to associations of cash and commodities (being contraceptives and related goods) represent direct aid to affiliated and non-affiliated organizations. These grants are given on an annual basis. Amounts not yet given at the year end relating to commodities are accrued for as liabilities on the basis that a commitment exists to supply these remaining commodities or cash.

Deferred income comprises amounts received in the period which the donor has given for use in future accounting periods only. Other forms of income, such as lease benefits, are also deferred in order to match the income with the periods that they are intended to benefit.

Expenditure other than Grants is classified between regional and central activities. Regional activities are those carried out by the Regional Offices serving local Member Associations. Central activities are exclusively, those of the Central Office, London, which serve IPPF as a whole. Costs of generating funds comprise the costs incurred in commercial trading activities and fundraising. Fundraising costs include all direct costs including personnel costs, publicity material and direct mailing material. Programme activities represent expenses directly attributable to the issuing or monitoring of grants to Member Associations. Programme support costs represent expenses on activities that are not directly attributable to the issuing or monitoring of grants to Member Associations but which directly relate to providing support, advice and training on sexual and reproductive health matters. Management and administration of the charity includes costs incurred by finance, human resources, internal audit and the Secretariat attributable to the management of IPPF’s assets, organizational administration and compliance with constitutional and statutory requirements. This includes the management and administration of Regional Offices who provide direct support to the Member Associations.

Fixed assets All assets costing more than $1,000 are capitalized. All assets are stated at cost. All assets are depreciated in line with their expected useful lives using the straight line method at the following rates: Land Freehold buildings Office furniture Office equipment Computer hardware Vehicles Freehold improvements Leasehold improvements

no depreciation 2% 10% 20% 33% 33% 10% Period of lease

Any realized gains or losses on disposals of fixed assets are taken to the Statement of Financial Activities in the year in which they occur. The transitional rules of FRS15 “Tangible Fixed Assets” have been adopted. Investments Investments are valued at market value as at 31 December 2004. All gains and losses are taken to the Statement of Financial Activities as they arise.

Where IPPF acts as an agent for another party upon specific projects, all costs and overheads recovered are netted off against those costs. Where overheads on IPPF’s own projects are recovered by way of donations and grants, these and their related costs are not netted off but are shown separately.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

1 ACCOUNTING POLICIES (CONTINUED) Stock of goods

Pension contributions

Stock is valued at the lower of cost and net realizable value and consists of contraceptives and related medical equipment.

IPPF contributes to both defined benefit and defined contribution pension schemes (see note 21).

Foreign currency The results from operations denominated in foreign currency are translated into US Dollars using an average rate of exchange for the Statement of Financial Activities (SOFA) and the year end rate for the Balance Sheet. Unrealized exchange differences arising as a result of this application of exchange rates are taken to the Translation Reserve (see note 17) whilst realized exchange differences are recognized as part of administration and general support costs. Leased assets The annual payments in relation to lease arrangements, known as operating leases, are charged to the Statement of Financial Activities on an accruals basis. Provisions Provision is made, where material, for the present value of future liabilities and losses which have occurred during the financial year and up to the date on which the financial statements are approved by Governing Council. The recognition of a provision is in accordance with FRS 12 Provisions, contingencies, commitments and post balance sheet events. The charge for a provision is made against the appropriate resources expended category to which it relates. Contingent Liabilities Contingent liabilities are disclosed in accordance with FRS 12, Provisions, contingencies, commitments and post balance sheet events, No recognition is made in the Statement of Financial Activities. Where it becomes probable that there will be a future outflow of resources the liability will cease to be contingent and is accrued in the financial statements. Full details on each contingent liability are disclosed in note 19.

Defined contribution scheme costs are charged to the Statement of Financial Activities as they are incurred. IPPF makes contributions to the Central Office pension scheme (a defined benefit scheme) based on the advice from triennial actuarial valuations. Any material deficiencies or surpluses that arise are dealt with by changes to the level of contributions. Pension costs are recognized on a systematic basis so that the cost of providing retirement benefits to employees is evenly spread over the service lives of the employees concerned. Any excess or deficiency of the actuarial value of the assets over the actuarial value of liabilities of the scheme is allocated over the average remaining service lives of current employees in accordance with SSAP 24. The transitional arrangements of the new accounting standard, FRS 17 Retirement Benefits require disclosure of assets and liabilities as 31 December 2004, calculated in accordance with the requirements of FRS 17. Funds IPPF maintains four types of fund: æ Permanent Endowment – where the capital is held in perpetuity to generate income to further the charitable objects of IPPF, and income generated is unrestricted; æ Restricted – where the purposes for which the funds can be used have been restricted by donors or the terms of an appeal; æ Designated – where the funds are unrestricted, but where the Governing Council have designated them for a specific purpose; æ Unrestricted – where the funds are not restricted as to use but may be applied for any purpose within the charity’s objects. Transfers between funds are made where the donor restrictions allow with appropriate disclosure in note 17.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

2 GRANTS FROM GOVERNMENTS

UNRESTRICTED Australia Belgium Canada Denmark Finland Germany Japan The Netherlands New Zealand Norway Sweden Switzerland United Kingdom Barbados China Korea (South) Malaysia Pakistan Thailand

Local currency (LC) Australian $ US $ Canadian $ Danish Krone Euro Euro US $ Euro New Zealand $ Norwegian Krone Swedish Krona Swiss Franc £ Sterling US $ US $ US $ US $ Pakistan Rupees/US$ US $

2004 LC’000

2003 LC’000

2004 $’000

2003 $’000

1,950 4,100 40,000 300 2,556 14,708 4,312 1,300 40,000 100,000 1,000 6,000 4 160 100 15 100 2

1,570 92 4,100 50,000 253 2,556 14,708 6,807 950 40,000 70,000 1,000 4,500 4 100 50 30 2 2

1,472 3,404 6,440 365 3,175 14,708 5,328 877 5,953 14,870 772 10,895 4 160 100 15 2 2

1,018 92 3,060 7,590 291 2,771 14,708 7,824 531 5,977 8,477 715 7,170 4 100 50 30 2 2

68,542

60,412

112

68,542

60,524

14 850 522 173 1,023 27

240 504 60 152 1,022 900 36

2,609 71,151

2,914 63,438

Unrestricted, excluding earmarked grants New Zealand – Vision 2000 Activities

New Zealand $

200

Unrestricted, including earmarked funds RESTRICTED Australia Denmark Germany Finland Japan The Netherlands States Of Jersey Restricted Total restricted and unrestricted grants from governments

Australian $ Danish Kroner Euro Euro US $ US $ Euro £ Sterling

20 5,000 434 140 1,023 15

370 440 52 152 1,022 776 23

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

3 GRANTS FROM MULTILATERALS AND OTHER INCOME SOURCES

Asia Pacific Alliance for Reproductive Health Erik E & Edith H Bergstrom Foundation Big Lottery Fund (formerly Community Fund) A & R Contorer Comic Relief The Educational Foundation of America Elton John AIDS Foundation Equilibres et Population European Commission Family Care International Ford Foundation Bill & Melinda Gates Foundation Gesellschaft f. Tech. Zusammenarbeit The William & Flora Hewlett Foundation Ernest Kleinwort Charitable Trust The John D & Catherine T MacArthur Foundation Margaret Sanger Centre International David & Lucile Packard Foundation Population Action International Planned Parenthood Federation of America L & H Price Foundation Rockefeller Foundation Margaret Sanger Centre International Summit Foundation United Nations Foundation United Nations Fund for Population Activities (UNFPA) Wallace Global Fund Westwind Foundation World Bank World Health Organization Other (1) Total

Unrestricted $’000

Donor Restricted $’000

2004 Total $’000

2003 Total $’000

2,050 750 95 5,594 8,489

70 476 482 100 72 43 86 2,536 821 248 1,624 380 1,175 55 275 67 234 21 10 80 30 485 1,261 100 100 100 855 11,786

70 476 482 100 72 43 86 2,536 821 248 1,624 380 3,225 55 275 67 984 21 10 80 30 485 1,261 100 195 100 6,449 20,275

794 105 271 86 3,444 58 2,600 11 2,800 395 1,417 50 18 40 1,414 105 5 6,391 20,004

(1) This income was raized by Private Sector Fundraising Programme from the general public.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

4 INVESTMENT INCOME AND INTEREST Unrestricted $’000

Donor Restricted $’000

2004 Total $’000

2003 Total $’000

779 1,498 2,277

223 223

1,002 1,498 2,500

626 664 1,290

Interest receivable from cash deposits Dividends and similar income from US listed securities Total

5 ACTIVITIES IN FURTHERANCE OF THE CHARITY’S OBJECTIVES This consists mainly of income from sales of publications and audio-visual materials. Also included are fees received in connection with undertaking the supply of commodities to Member Associations.

6 GRANTS TO MEMBER ASSOCIATIONS AND PARTNER ORGANIzATIONS Unrestricted Commodity Cash Grants Grants $’000 $’000 Africa Arab World E & SE Asia and Oceania Europe South Asia Western Hemisphere Total 2004 Total 2003

12,974 2,709 4,443 531 5,162 5,742 31,561 26,941

883 320 746 13 168 822 2,952 2,603

Technical Assistance $’000 1,582 338 40 852 2,812 1,822

Donor restricted Commodity Cash Grants Grants $’000 $’000 1,298 878 782 1,033 1,268 2,067 7,326 9,305

252 125 150 10 38 575 1,101

Endowment Cash Grants $’000 -

2004 Total $’000

2003 Total $’000

16,989 4,370 6,121 1,627 6,598 9,521 45,226

15,944 3,352 5,389 1,629 6,986 8,472 41,772

Commodity grants consist of contraceptives and related goods. Technical assistance represents advisory services provided by IPPF and funded by Member Associations from unrestricted core grants and locally generated income sources.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004 The following associations received cash and commodity grants as shown below. They are ranked in order of total unrestricted grants. Rank Country

Association

Grants to Member Associations 1 India 2 Bangladesh 3 Pakistan 4 Nepal 5 Nigeria 6 Ghana 7 Kenya 8 Tanzania 9 Ethiopia 10 Uganda 11 Zambia 12 Caribbean Antigua And Barbuda Aruba Bahamas Caribbean Dominica Grenada Nevis St Lucia St Vincent Anguilla Bermuda Curacao Guadaloupe Martinique St Maarten US Virgin Island Virgin Island 13 Brazil 14 Colombia 15 Indonesia 16 Sudan 17 Mexico 18 Philippines 19 Palestine 20 Dominican Republic 21 Togo 22 China 23 Lesotho 24 Guatemala 25 Benin 26 Egypt 27 Mali 28 Malaysia 29 Sierra Leone 30 Liberia 31 Senegal 32 Peru 33 Madagascar 34 Angola 35 Burkina Faso 36 Haiti 37 Yemen 38 Congo Dem Republic 39 Morocco 40 Venezuela 41 Nicaragua 42 Mozambique 43 Bolivia 44 Cote D’Ivoire 45 Gambia 46 El Salvador

Family Planning Association of India Family Planning Association of Bangladesh Family Planning Association of Pakistan Family Planning Association of Nepal Planned Parenthood Federation of Nigeria Planned Parenthood Association of Ghana Family Planning Association of Kenya Uzazi na Malezi Bora Tanzania Family Guidance Association of Ethiopia Family Planning Association of Uganda Planned Parenthood Association of Zambia Caribbean Family Planning Affiliation comprising of: Antigua Planned Parenthood Association Foundation for the Promotion of Responsible Parenthood Bahamas Family Planning Association Caribbean Family Planning Affiliation Ltd Dominica Planned Parenthood Association Grenada Planned Parenthood Association Nevis Family Planning Association Saint Lucia Planned Parenthood Association St. Vincent Planned Parenthood Association Anguilla Family Planning Association Teen Services (YHED) Foundation for the Promotion of Responsible Parenthood Association Guadeloupéenne pour le Planning Familial Association Martiniquaise pour I’Information et l’Orientation Familiales Foundation for the Promotion of Responsible Parenthood Virgin Islands Family Planning Association British Virgin Islands Family Life Association Sociedad Civil Bem-Estar Familiar no Brasil Asociación Pro-Bienestar de la Familia Colombiana The Indonesian Planned Parenthood Association Sudan Family Planning Association Fundación Mexicana para la Planeación Familiar Family Planning Organization of the Philippines Palestinian Family Planning and Protection Association Asociación Dominicana Pro-Bienestar de la Familia Association Togolaise pour le Bien-Etre Familial China Family Planning Assocation Lesotho Planned Parenthood Assocation Asociación Pro-Bienestar de la Familia de Guatemala Association Béninoise pour la Promotion de la Famille Egyptian Family Planning Association Association Malienne pour la Promotion et la Protection de la Famille Federation of Family Planning Associations of Malaysia Planned Parenthood Association of Sierra Leone Family Planning Association of Liberia Association Sénégalaise pour le Bien-Etre Familial Instituto Peruano de Paternidad Responsable Fianakaviana Sambatra Associacao Angolana para o Bem Estar da Familia Association Burkinabé pour le Bien-Etre Familial Association pour la Promotion de la Famille Haïtienne Yemen Family Care Association Association pour le Bien-Etre Familial/Naissances Désirables Association Marocaine de Planification Familiale Asociacion Civil de Planificacion Familiar Asociación Pro Bienestar de la Familia Nicaragüense Associação Moçambicana para Desenvolvimento da Família Centro de Investigación, Educación y Servicios Association Ivoirienne pour le Bien-Etre Familial The Gambia Family Planning Association Asociación Demográfica Salvadoreña

Unrestricted $

Restricted $

Total $

1,339,765 1,303,754 1,267,872 1,118,722 930,066 917,966 909,815 870,375 844,529 755,589 686,418

440,951 117,579 155,051 189,712 274,355 (15,115) 28,585 (27,206) (74,716) 96,150 117,451

1,780,716 1,421,333 1,422,923 1,308,434 1,204,421 902,851 938,400 843,169 769,813 851,739 803,869

75,801 13,592 25,966 192,162 73,207 87,486 507 114,177 45,185 5,284 285 5,962 285 285 1,005 285 285 619,623 508,183 506,649 501,083 500,485 495,019 466,212 456,350 454,944 437,218 434,844 431,679 425,483 410,820 409,077 406,792 402,381 400,210 392,942 392,889 392,461 372,174 361,369 358,258 355,563 341,937 326,122 325,857 325,828 324,371 314,961 311,122 297,809 284,864

15,000 712 138,968 166,500 145,538 363,386 104,350 114,872 21,281 446,804 15,000 15,350 147,767 154,368 36,658 1,977 21,746 67,365 (37,035) 18,823 50,700 202,088 94 10,610 230,924 148,294 56,500 76,523 (1,442) 83,000 53,075 38,444 129,930 215,000

75,801 13,592 40,966 192,162 73,207 88,198 507 114,177 45,185 5,284 285 5,962 285 285 1,005 285 285 758,591 674,683 652,187 864,469 604,835 609,891 487,493 903,154 469,944 452,568 582,611 586,047 462,141 410,820 411,054 428,538 469,746 363,175 411,765 443,589 594,549 372,268 371,979 589,182 503,857 341,937 382,622 402,380 324,386 407,371 368,036 349,566 427,739 499,864

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

Rank Country

Association

Grants to Member Associations Association Congolaise pour le Bien-Etre Familial 47 Congo Association Rwandaise pour le Bien-Etre Familial 48 Rwanda Association Mauritanienne pour la Promotion de la Famille 49 Mauriitania Associación Hondureña de Planificación de la Familia 50 Honduras Centro Paraguayo de Estudios de Poblacíon 51 Paraguay Association Centrafricaine pour le Bien-Etre Familial 52 Central African Republic Cameroon National Association for Family Welfare 53 Cameroon Association Tchadienne pour le Bien-Etre Familial 54 Chad Association Nigérienne pour le Bien-Etre Familial 55 Niger Association Djiboutienne pour l’equilibre et la promotion de la famille 56 Djibouti Vietnam Family Planning Association 57 Vietnam Associação Guineense para o Bem-Estar Familiar 58 Guinea Bissau Family Planning Association of Trinidad and Tobago 59 Trinidad And Tobago Planned Parenthood Association of Thailand 60 Thailand Planned Parenthood Association of Eritrea 61 Eritrea Le Mouvement Gabonais pour le bien-etre familial 62 Gabon Syrian Family Planning Association 63 Syria Association Guinéenne pour le Bien-Etre Familial 64 Guinea Conakry Guyana Responsible Parenthood Association 65 Guyana Stichting Lobi 66 Surinam Association Burundaise pour le Bien-Etre Familial 67 Burundi Lebanon Family Planning Association 68 Lebanon Family Life Association of Swaziland 69 Swaziland 70 Korea, Dem People’s Rep of Korean Family Planning & Maternal Child Health Association Association Tunisienne du Planning Familial 71 Tunisia Solomon Islands Planned Parenthood Association 72 Solomon Islands Association Comorienne pour le Bien-Etre de la Famille 73 Comoros Jamaica Family Planning Association 74 Jamaica Family Planning Association of Sri Lanka 75 Sri Lanka Association Algérienne pour la Planification Familiale 76 Algeria Planned Parenthood Association of South Africa 77 South Africa Belize Family Life Association 78 Belize Asociación Pro Bienestar de la Familia Ecuatoriana 79 Ecuador Asociación Chilena de Protección de la Familia 80 Chile Associação Caboverdiana para a Protecção da Familia 81 Cape Verde Islands Asociación Panameña para el Planeamiento de la Familia 82 Panama Botswana Family Welfare Association 83 Botswana Sociedad Cientifica Cubana para el Desarrollo de la Familia 84 Cuba Mauritius Family Planning Association 85 Mauritius Reproductive Health Association of Cambodia 86 Cambodia Vanuatu Family Health Association 87 Vanuatu Samoa Family Health Association 88 Samoa Russian Family Planning Association 89 Russia Tonga Family Planning Association 90 Tonga Mongolian Family Welfare Association 91 Mongolia Planned Parenthood Federation of Korea 92 Korea South Family Planning Association of the Islamic Republic of Iran 93 Iran Persia The Barbados Family Planning Association 94 Barbados Asociación Puertorriqueña Pro-Bienestar de la Familia 95 Puerto Rico Asociación Uruguaya de Planificación Familiar 96 Uruguay Iraq Family Planning Association 97 Iraq Namibia Planned Parenthood Association 98 Namibia Reproductive & Family Health Association of Fiji 99 Fiji Society for Health Education 100 Maldives Asociación Demográfica Costarricense 101 Costa Rica Kazakstan Association on Sexual and Reproductive Health 102 Kazakhstan Towarzystwo Rozwoju Rodziny 103 Poland Uzbek Association of Reproductive Health 104 Uzbekistan Family Planning Association of Moldova 105 Moldova Family Planning Association (UGAPPXY) 106 Bosnia Herzegovina Bulgarian Family Planning and Sexual Health Association 107 Bulgaria Family Planning Association of Albania 108 Albania The Family Planning Association of Armenia 109 Armenia

Unrestricted $

Restricted $

Total $

265,478 259,023 259,023 258,120 255,533 252,159 252,027 239,765 233,102 232,523 232,460 220,413 218,822 216,823 212,922 208,832 207,788 206,055 203,542 191,738 186,219 185,289 184,866 174,633 169,400 165,819 163,195 160,182 159,538 155,024 149,620 138,954 129,665 119,425 116,004 115,956 112,138 111,192 102,976 102,023 101,594 100,395 98,162 94,377 89,412 88,157 86,073 70,888 69,685 66,833 66,082 65,341 61,941 54,507 51,893 45,000 40,644 40,000 39,370 35,000 33,706 32,515 30,839

170,116 199,661 175,542 2,107 26,956 43,201 91,900 10,200 193,158 (6,560) 106,996 18,798 17,500 6,500 (4,678) 106,165 71,372 22,778 (39,616) (5,069) 6,108 160,037 46,476 4,976 50,448 4,372 24,126 7,023 30,000 (8,095) 18,000 12,000 8,878 4,392 134 94,039 50,850 49,853 63,155

435,594 458,684 434,565 260,227 255,533 252,159 278,983 282,966 233,102 232,523 324,360 220,413 229,022 409,981 206,362 208,832 314,784 224,853 221,042 198,238 181,541 291,454 184,866 246,005 192,178 126,203 158,126 166,290 319,575 155,024 149,620 138,954 129,665 119,425 116,004 115,956 112,138 111,192 102,976 148,499 106,570 100,395 148,610 98,749 113,538 88,157 93,096 70,888 99,685 66,833 66,082 57,246 61,941 72,507 51,893 57,000 49,522 44,392 39,504 129,039 84,556 82,368 93,994 21

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

Rank Country Grants to Member Associations 110 Hungary 111 Georgia 112 Kyrgyzstan 113 Bahrain 114 Slovakia 115 Hong Kong 116 Lithuania 117 Singapore 118 Argentina 119 Europe (Various) 120 Estonia 121 Canada 122 United States of America 123 New Zealand 124 Ireland 125 Germany 126 France 127 Austria 128 Spain 129 Norway 130 Switzerland 131 Denmark 132 Cyprus 133 Latvia 134 Czech 135 Portugal

Association Pro Familia Hungarian Scientific Society The Family Planning Association in Georgia Reproductive Health Alliance of Kyrgzstan Bahrain Family Planning Association Plánované rodicovstvo a výchovu k rodicovstvu (SSPPRV) Family Planning Association of Hong Kong Family Planning and Sexual Health Association of Lithuania Singapore Planned Parenthood Association Asociación Argentina de Protección Familiar Technical Assistance to Member Associations Family Planning Association of Estonia Planned Parenthood Federation of Canada Planned Parenthood Federation of America New Zealand Family Planning Association Irish Family Planning Association Pro Familia Bundesverband Mouvement français pour le Planning Familial Österreichische Gesellschaft für familienplanung Federacion de Planification Familiar de Espana Norsk forening for seksualitet, samliv og reproduktiv helse Fondation Suisse pour la santé Sexuelle et Reproductive Foreningen Sex & Samfund Planning Association of Cyprus Latvian Association for FP & RH Spolecnost Pro Planovani Associacio para o Planeamento da Familia Grants to Member Associations

Unrestricted $

Restricted $

Total $

26,520 25,288 25,000 20,658 19,640 18,263 15,967 11,473 10,353 6,965 5,551 822 285 34,509,674

5,835 1,682 2,000 6,603 16,501 1,871 30,792 71,917 71,512 42,063 41,508 39,942 39,070 23,121 19,535 9,601 1,954 1,859 1,853 1,300 6,820,285

26,520 31,123 26,682 22,658 26,243 34,764 17,838 11,473 10,353 6,965 36,343 822 285 71,917 71,512 42,063 41,508 39,942 39,070 23,121 19,535 9,601 1,954 1,859 1,853 1,300 41,329,959

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004 The following partner organizations received cash and commodity grants as shown below. Grants to Partner Associations Rank Country 1

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

Association

Japanese Organization for International Cooperation in Family Planning (JOICFP) China - Grants to China Mexico - Grants to Mexico Africa (Various) - Grants to Sub-Saharan Africa Japan - International Advocacy Japan - Information & Campaign Japan - Kato Award Papua New Guinea Papua New Guinea Family Health Association Malawi National Family Welfare Council of Malawi Equatorial Guinea Association Bienestar Familiar de Guinea Equatorial Kenya Centre for African Family Studies Seychelles Alliance of Solidarity for the Family Japan Asian Population and Development Association Myanmar Myanmar Maternal and Child Welfare Association Thailand Asian Forum of Parlimentarians on Population and Development Sao Tome and Principe Associação Santomense para o Planeamento Familiar Laos Laos Women’s Union Cook Islands Cook Islands Family Welfare Association United Kingdom Interact Worldwide Kiribati Kiribati Family Health Association Tuvalu Tuvalu Family Health Association Denmark World Health Organization Tajikistan Tajik Family Planning Association United Kingdom All Party Parlimentary Group on Population, Development and Reproductive Health Zimbabwe Zimbabwe National Family Planning Council Tunisia Center for Arab Women for Training and Research Colombia Fundacion Pra la Salud Reproductiva ESAR Africa (Various) African Humanitarian Action Uganda Regional Centre for Quality of Health Care Ghana Fred Sai Scholarship United States Emroy University Afghanistan Afghan Family Planning Association United States Family Care International Serbia Yugoslav Youth Info Center Macedonia Health Education and Research Association Montenegro Cultural Centre Juventas Mexico Catolicas por el Derecho a Decidir United States Planned Parenthood of New York City, Inc. Belgium Forum Parlemementaire Inter-européen Korea, Dem People’s Rep of UNFPA/UNDP/Ministry of Public Health DPR Korea Kosovo The FORUM Canada Youth Coalition United States Women’s Empowerment & Development Organization United States IPAS Africa Alliance for Women’s Reproductive Health and Rights United Kingdom RAINBO/AMANITARE United States President & Fellows of Harvard College United States International Women’s Health Coalition United States Catholics for a Free Choice Ecuador Fundacion Esquel Haiti Volontariat Pour Le Developpement D’Haiti - VDH Montenegro Privredni Savetnik Revizija Ukraine The Ukrainian Family Planning Association Grants to Partner Associations Total Grants to Member and Partner Associations

Unrestricted $

Restricted $

Total $

300,000 70,000 150,000 745,000 225,000 10,000 181,218 168,447 134,882 127,924 101,377 100,000 77,784 70,000 59,485 57,315 48,917 40,000 36,486 34,885 23,744 15,208 15,000

56,676 1,539 10,000 56,531 -

300,000 70,000 150,000 745,000 225,000 10,000 237,894 169,986 134,882 127,924 101,377 100,000 87,784 70,000 59,485 57,315 48,917 40,000 36,486 91,416 23,744 15,208 15,000

14,273 12,500 11,000 10,238 2,500 2,000 400 4 (30,250) 2,815,337

49,992 179,996 205,000 122,329 104,795 88,654 59,400 31,689 28,114 26,250 19,020 5,000 5,000 5,000 5,000 5,000 5,000 5,000 2,000 2,000 1,524 1,080,509

14,273 12,500 60,992 10,238 2,500 2,000 400 180,000 205,000 122,329 104,795 88,654 59,400 31,689 28,114 26,250 19,020 5,000 5,000 5,000 5,000 5,000 5,000 5,000 2,000 2,000 1,524 (30,250) 3,895,846

37,325,011

7,900,794

45,225,805

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

7 REGIONAL ACTIVITIES Unrestricted Programme activities (1) $’000 Year ended 31 December 2004 Personnel costs Consultancies Travel Occupancy Communications Other costs Total 2004 Year ended 31 December 2003 Personnel costs Consultancies Travel Occupancy Communications Other costs Total 2003

1,708 496 845 246 43 256 3,594

Programme support (2) $’000

Fundraising (3) $’000

Admin and general services (4) $’000

3,401 111 913 317 58 43 4,843

597 101 66 88 8 468 1,328

2,384 232 694 723 268 273 4,574

2,217 218 949 354 117 378 4,233

2,361 50 358 35 25 1 2,830

364 21 60 82 241 768

Reorganization costs $’000

2,948 83 745 689 313 442 5,220

(18) 34 49 65

Sub total $’000

Donor Restricted Programme activities (1) $’000

Total $’000

8,090 940 2,518 1,374 377 1,040 14,339

1,254 536 1,859 18 38 1,096 4,801

9,344 1,476 4,377 1,392 415 2,136 19,140

7,872 351 2,107 1,138 537 1,111 13,116

1,241 150 1,384 5 41 894 3,715

9,113 501 3,491 1,143 578 2,005 16,831

1) Programme activities represent expenses directly attributable to the issuing or monitoring of grants to Member Associations. 2) Programme support costs represent expenses on activities that are not directly attributable to the issuing or monitoring of grants to Member Associations but which directly relate to providing support, advice and training on sexual and reproductive health matters. 3) Fundraising costs comprise of activities related to Regional income generation and resource development. 4) Administration and general services represent all other expenses incurred in the running of Regional Offices and Field Offices.

Regional Activities by IPPF Strategic Priorities and Supporting Strategies – 2004 Total $’000 Strategic Priorities – Adolescents – HIV/AIDS – Access – Abortion – Advocacy Supporting Strategies – Accreditation & Governance – Resource Mobilization – Capacity Building – Evaluation

1,938 841 2,564 597 4,292 2,363 1,571 4,306 668 19,140

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

8 CENTRAL ACTIVITIES Unrestricted Programme activities (1) $’000 Year ended 31 December 2004 Personnel costs Consultancies Travel Occupancy Communications Other costs Total 2004 Year ended 31 December 2003 Personnel costs Consultancies Travel Occupancy Communications Other costs Total 2003

510 220 54 9 87 880

Programme support (2) $’000

Fundraising (3) $’000

Admin and general services (4) $’000

1,618 59 292 47 149 2,165

763 27 59 3 20 38 910

4,366 457 859 1,171 145 563 7,561

831 186 121 21 277 1,436

1,283 7 124 21 16 16 1,467

639 15 37 22 26 739

Reorganization costs $’000

2,865 258 552 992 162 816 5,645

2,085 200 26 2 2,313

Sub total $’000

Donor Restricted Programme activities (1) $’000

Total $’000

7,257 763 1,264 1,174 221 837 11,516

879 866 1,873 6 37 789 4,450

8,136 1,629 3,137 1,180 258 1,626 15,966

7,703 666 860 1,013 221 1,137 11,600

1,935 427 759 54 395 3,570

9,638 1,093 1,619 1,013 275 1,532 15,170

1) Programme activities represent expenses directly attributable to the issuing or monitoring of grants to Member Associations. 2) Programme support costs represent expenses on activities that are not directly attributable to the issuing or monitoring of grants to Member Associations but which directly relate to providing support, advice and training on sexual and reproductive health matters. 3) Fundraising costs comprise of activities related to the Federation’s global income generation and resource development. 4) Administration and general services represent all other expenses incurred in the running of IPPF.

Central Activities by IPPF Strategic Priorities and Supporting Strategies – 2004 Total $’000 Strategic Priorities – Adolescents – HIV/AIDS – Access – Abortion – Advocacy Supporting Strategies – Accreditation & Governance – Resource Mobilization – Capacity Building – Evaluation

564 1,186 2,078 248 6,424 1,664 880 1,839 1,083 15,966

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

9 AUDIT AND ACCOUNTANCY

Regional and Central expenditure is stated after charging: External audit fees Other fees paid to external auditor Other audit/accountancy fees Total

2004 $’000

2003 $’000

252 11 7 270

222 67 14 303

2004

2003

17 9 11 6 22

13 10 12 9 25

8 92 12 61 238

7 83 11 60 230

$’000 12,172 1,341 1,470 750 1,292 455 624 18,104

$’000 11,548 1,426 1,393 412 468 1,418 2,085 358 19,108

10 EMPLOYEE NUMBERS AND EMOLUMENTS The average total number of staff employed during the year on full time contracts were:

Central Office - Technical Knowledge and Support - Strategic Planning, External Affairs & Communications - Management, governance and policy - Resource Mobilization - Support Services – Finance, Information Technology, Human Resources & Administration Regional Offices - Social Marketing - Programme activities and support - Fundraising - Management and administrative support services Total The cost of employing these staff was: Gross Salaries of individuals on IPPF payroll Social security costs Pension Temporary staff employed through third party agencies Staff employed through overseas subsidiary companies Other employee benefits Redundancy costs Staff employed through trading company Total

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

10 EMPLOYEE NUMBERS AND EMOLUMENTS (continued) The numbers of staff whose emoluments were over $90,000 (i.e. ÂŁ50,000) fell into the following bands: $90,000 to $100,000 $100,000 to $110,000 $110,000 to $120,000 $120,000 to $130,000 $130,000 to $140,000 $140,000 to $150,000 $160,000 to $170,000 $170,000 to $180,000 $180,000 to $190,000 $190,000 to $200,000 $200,000 to $210,000 $210,000 to $220,000 $220,000 to $230,000 $230,000 to $240,000 $240,000 to $250,000 $290,000 to $300,000 $470,000 to $480,000 $520,000 to $530,000

2004 7 6 2 3 4 2 1 1 1 1 2 1 1 1 -

2003 9 5 3 1 2 1 1 1 1 1 2 1 1

Contributions were made to defined benefit pension schemes on behalf of 4 higher paid employees (2003: 4) and contributions amounting to $259,895 (2003: $265,863) were made to defined contribution schemes on behalf of 18 higher paid employees (2003: 28). No Ex-gratia payments were made during the year (2003:Nil) No trustee received remuneration during the year (2003:Nil)

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

11 TANGIBLE FIXED ASSETS Short leasehold Freehold property & property improvements $’000 $’000 Cost or valuation At 1 January 2004 Exchange adjustments Additions Disposals At 31 December 2004 Depreciation and amortization At 1 January 2004 Exchange adjustments Charge for the year Released on disposal At 31 December 2004 Net book values At 31 December 2004 At 31 December 2003

Fixtures, fittings, equipment & computers $’000

Total $’000

286 286

3,232 6 52 3,290

3,516 32 415 (619) 3,344

7,034 38 467 (619) 6,920

67 21 88

2,270 5 210 2,485

2,758 30 421 (578) 2,631

5,095 35 652 (578) 5,204

198 219

805 962

713 758

1,716 1,939

All tangible fixed assets are held for charity use. The freehold property relates to land and buildings held in Kuala Lumpur. The open market value of the property at the latest valuation in 1997 was $2.2 million.

12 INVESTMENTS Listed on the American and New York Stock Exchanges Unrestricted Donor Endowment Total $’000 Restricted $’000 $’000 $’000 Shares and securities at market value: At 1 January 2004 Additions Disposal proceeds Unrealized/realized gains for the year At 31 December 2004

25,748 26,371 (25,004) 1,133 28,248

3,289 102 (700) 178 2,869

838 93 931

29,875 26,473 (25,704) 1,404 32,048

Shares and securities at historical cost: At 31 December 2004 At 31 December 2003

25,687 23,763

3,277 3,289

1,000 1,000

29,964 28,052

Included in the above figures is cash held as part of the investment portfolio of $97,838 (2003:$788,404).

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

12 INVESTMENTS (continued) IPPF owns one £1 ordinary share in ICON Ltd (ENet.Comm Ltd until June 2004). This wholly owned trading subsidiary is incorporated and registered in England and Wales. The principal activity of the subsidiary is the supply of commodity services and social marketing of contraceptives in conjunction with Member Associations. Financial statements for the period ending 31 December 2004 have been prepared. The company intends to transfer its taxable profits to IPPF via gift aid in the future. The accounting year was extended in 2004 to that of IPPF and thus the results show 13 months of activities in 2004. Summary of the turnover and expenditure and its loss for the period:

Turnover Cost of sales Gross profit Total expenses (Loss)/profit on ordinary activities before taxation Corporation tax (Loss)/profit on ordinary activities after taxation Covenant Retained (loss)/profit for the year

2004 $’000

2003 $’000

1,789 (875) 914 (974) (60) 14 (46) (46)

1,190 (444) 746 (649) 97 (20) 77 77

These results have been adjusted on consolidation into IPPF’s financial statements for intra-group transactions. The aggregate amount of assets, liabilities and funds was:

Assets Liabilities Funds

2004 $’000

2003 $’000

562 (561) 1

549 (470) 79

IPPF have provided interest bearing loans of $275,000 to the company repayable over a 10 year period to 2013. Interest receivable on the loans in the year amounted to $9,797 (2003: $13,750).

13 LONG TERM LOANS

Loans to Member Associations Housing loans to staff Total

2004 $’000

2003 $’000

509 14 523

569 17 586

Loans of $191,405 to Member Associations are interest free. All other Member Association loans are fixed at market rates of interest at the time of issue. All housing loans are secured.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

14 RECEIVABLE FROM DONORS Unrestricted $’000

Donor Restricted $’000

2004 Total $’000

2003 Total $’000

3,404 4,230 7,634

145 1,070 7 14 220 134 133 528 2,251

145 1,070 7 14 3,404 220 134 133 4,758 9,885

12 69 3,060 79 123 2,691 6,034

Unrestricted $’000

Donor Restricted $’000

2004 Total $’000

2003 Total $’000

4,283 (3,323) 3,157 (86) 4,031

694 694

4,283 (3,323) 3,851 (86) 4,725

1,495 (449) 3,324 (87) 4,283

American University of Beirut Bergstrom Foundation European Commission Ford Foundation Government of Australia Government of Canada The John D and Catherine T MacArthur Foundation David & Lucile Packard Foundation United Nations Fund for Population Activities (UNFPA) Other 1 Total 1‘

Other’ represents amounts due on bequests, legacies and foundations.

15 DEFERRED INCOME

Deferred income balances brought forward Recognition of prior year’s deferred income Income received for activities in future periods Movement on lease benefits to be amortized over the lease period Deferred income balances carried forward

16 PROVISIONS

Opening balance Utilized in year Arising in year Underprovision in prior years Closing balance

2004 $’000

2003 $’000

191 (192) 1 -

168 (168) 191 191

In 2003 a provision was created for potential redundancy costs for staff within the South Asia Regional Office who may decide not to relocate from London, United Kingdom to the new office based in New Delhi, India. Following the relocation in 2004 the funds were utilized to meet actual redundancy costs.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

17 FUNDS AND RESERVES Restricted funds The use of these funds has been restricted by the donor indicated below.

Government Australia ICPD Activities Commodities for the ESEAO Region Denmark – Capacity Building Finland – Nepal Germany Areas neighbouring Afghanistan SRH & SRR Youth Islamic Youth Islamic Women Central Asian Region – People on the Move Japan – HIV/STI/AIDS Trust Fund The Netherlands IPPF Trust Fund HIV/STI/AIDS Activities Commodities New Zealand – ESEAO Region States of Jersey – Reproductive Health Services, Nepal FPA United Kingdom Eastern Europe Emergency Contraception, Africa Region United States of America (USAID) Western Hemisphere Region – Sustainability Endowment Fund Vision 2000 Africa Region, Cape Verde FPA Total government restricted funds

Balance at 1 January 2004 $’000

Donor Income (see notes 2 to 5) $’000

Expenditure $’000

Balance at 31 December 2004 $’000

70 120 -

14 5 850 173

84 125 108

850 65

259 247 31 41 284 1,486

544 (23) 1,039

186 720 8 40 281 977

73 71 1 3 1,548

191 70 49 37 -

4 (5) 27

(135) 70 44 27

330 37 -

244 (1)

51 -

193 (1)

4,163 1,002 8,293

369 2,997

170 2,756

4,362 1,002 8,534

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

17 FUNDS AND RESERVES (continued) Restricted funds (continued)

Multilateral and other sources Asia Pacific Alliance for Reproductive Health Bergstrom Foundation – WHR Clinic Services Big Lottery Fund (formerly Community Fund) Youth Education on Sexuality Project, India Capacity Building Europe Region Saving Mother’s Lives in Yemen FPA Brown Foundation Comic Relief – Guatemala (plus other small donors) A & R Contorer J Cunningham – Western Hemisphere Region Elton John AIDS Foundation European Commission Countdown 2015 DAPHNE Project Europe Region Political Dialogue Europe Region Europe Region Gender Based Violence Peru, Venezuela and Dominican Republic Sexwise Project Vision 2000 Fund Project Equilibres et Population – Emergency Contraception Family Care International Ford Foundation Reproductive Rights & Community Action – Colombia, India and Malaysia ICPD @ 10 Speakers & Moderators Indicators Development – Western Hemisphere Region Linking Gender and SRH, WHR Bill & Melinda Gates Foundation South Africa FPA Gates Youth Centre Strengthen the Quality of Reproductive Health Care Gesellschaft f. Tech. Zusammenarbeit (GTZ) Community Based Services Initiative to end FGM BackUp Initiative Gerbode Foundation – Abortion Strategy

Balance at 1 January 2004 $’000

Donor Income (see notes 2 to 5) Expenditure $’000 $’000

Balance at 31 December 2004 $’000

146

70 476

62 366

8 256

38 224 115 5 17 4 3 -

181 301 74 100 43

130 132 5 85 100 36

89 224 284 6 4 3 7

39 49 24 1 1,647 4 -

1,594 251 (45) 709 86 802

1,631 39 49 16 2,356 78 624

(37) 235 (21) 1 12 178

16 1 43

107 142

16 107 65

1 120

294 2,104

3 1,647

15 2,559

282 1,192

9 31

396 -

346 23

9 50 8

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

17 FUNDS AND RESERVES (continued) Restricted funds (continued)

Multilateral and other sources (continued) William and Flora Hewlett Foundation: Africa Region Global Advocacy Europe Region ICPD @ 10 Media & Communications The International Foundation – WHR Trainees Guide to HIV The Ernest Kleinwort Charitable Trust Provision of Colposcopy Marginalized Youth Colombia / Maternal Health Kenya MacArthur Foundation – Sexual Health and Gender WHR ASTECS Europe Region SRH Youth Mexico Margaret Sanger Centre International The David and Lucile Packard Foundation Cairo + 5 project Sexwise Education Africa Southern Advocacy and ICPD Co-ordinator ASTECS L & H Price Foundation The Rockefeller Foundation – Concept Paper Europe Region Summit Foundation ICPD @ 10 Europe Region – Young Leaders United Nations Development Programme Malaysia -ESEAO Region Activities United Nations Fund for Population Activities Reproductive Health Cambodia, Vietnam, Sri Lanka Reproductive Health Korea DPR Reproductive Health Africa Regional Office Reproductive Health Mozambique Reproductive Health Syria Reproductive Health Sri Lanka Adolescent Reproductive Health WHR Adolescent Reproductive Health Myanmar Reproductive Health Europe Central Asian Republics

Balance at 1 January 2004 $’000

Donor Income (see notes 2 to 5) $’000

Expenditure $’000

Balance at 31 December 2004 $’000

335 154 10

984 200 -

387 554 20 -

(52) 584 180 10

7 -

7 51

79 1

150 125 67

50 39 61 68

100 86 18 -

24 369 158 68

4 134 100 80 -

24 142 187 73 -

231 105 27 80 68

28 17

30 -

30 30 -

(2) 17

17 128 8 85 2 40

71 70 (52) 106 31 14 -

59 59 65 33 106 7 13 -

17 69 12 13 26 1 40

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

17 FUNDS AND RESERVES (continued) Restricted funds (continued)

Multilateral and other sources (continued) United Nations Fund for Population Activities (continued) Condom Use by Youth VCT HIV Testing Capacity Building / Advocacy / AIDS Support IEFPD Europe International Support SMT Meetings International Support ICPD Steering Committee International Support ICPD Global Roundtable Human Rights and Reproductive Health Counselling Notes and HIV/STI/AIDS WHR ICPD @ 10 United Nations Foundation CO ICPD @ 10 WHR ICPD @ 10 Wallace Global Fund – Testimonies ICPD, Lome, Europe Region The Westwind Foundation – WHR The Westwind Foundation – London The World Bank WHR Multi-donor Fund – Emergency Contraceptives London Multi-donor Fund – Leadership Transition (1) Other Total Other Restricted Funds Total Restricted Funds Transfer to Endowment Fund – Cape Verde Vision 2000 (USAID) Transfers to General Fund Total restricted funds adjusted

Balance at 1 January 2004 $’000

Donor Income (see notes 2 to 5) $’000

Expenditure $’000

Balance at 31 December 2004 $’000

3 251 17 9 33 24 8 -

75 33 5 67 435 7 210

78 33 220 14 100 400 24 11 193

31 17 35 4 17

31 55 75 796 537 8,183 16,476 (1,000)

590 85 100 40 60 100 896 11,809 14,806

590 85 79 40 55 55 75 794 656 14,407 17,163

52 60 45 2 777 5,585 14,119 (1,000) (234) 12,885

15,476

(1) Multi donor fund represents grants received from Bill & Melinda Gates Foundation (US$800,000), William and Flora Hewlett Foundation (US$500,000), Packard Foundation (US$300,000), Rockefeller Foundation (US$250,000), Wallace Global Fund (US$10,000).

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

17 FUNDS AND RESERVES (continued) Unrestricted funds and reserves Unrestricted funds and reserves are those free of any donor restriction on their use. All unrestricted funds and reserves, apart from the General Fund, are designated by IPPF for specific purposes as noted below.

Unrestricted funds and reserves New designated funds Transfers from Restricted Fund IPPF allocation to Innovation Fund Allocation of 2003 General Fund surplus Transfer between reserves Transfers between funds Balance at 1 January 2004 Net incoming (outgoing) resources Net gains (losses) on investment assets Foreign exchange movement arising upon consolidation Balance at 31 December 2004

Fixed Other WHR Asset Staff Revaluation Translation designated Sustainability Innovation General Reserve Reserve Reserve Reserve funds Fund Fund Fund Note $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2,000 -

Total $’000

a b c d

10,000 -

2,800

4,585 2,350

(14,585) 234 (2,000) (5,150)

234 -

10,000 1,939 (525) -

1,224 -

(867) (867) 867 -

2,800 62 (330) -

6,935 7,709 (2,234) 55

21,189 1,309 904

867 2,000 (20,634) 2,135 24,700 (1,310) 19,778 174

234 59,825 16,688 1,133

(6)

11,408

1,224

2,532

12,465

23,402

2,825

24,065

77,921

Explanations of movements on unrestricted funds and reserves in the year: a) During the year regions made savings of US$1,005,294. These funds are allocated to a designated fund for utilization in projects occurring in 2005. US$3,580,000 was allocated to Regions as part of the 2003 general fund surplus and will be used for projects identified to implement the new Strategic Framework. An additional US$10 million was allocated to the fixed asset reserve to set-aside funds for the purchase of a property in London, UK for the Central Office in 2005. b) US$234,000 was transferred from restricted funds to designated funds following the review of a number of historical fund balances which identified that some funds were originally provided as unrestricted. c) US$2 million was allocated to the Innovation Fund to allow the completion of the former, Vision 2000 projects as well as provide new funds for projects funded in 2005 under the Innovation Fund criteria. d) Further amounts were allocated from the 2003 surplus general fund to build capacity of the Abortion Strategy (US$350,000), a re-branding exercise of the IPPF (US$1 million) and additional funding for the Central Office Defined Pension Scheme (US$1 million). An amount of US$2.8 million was assigned to the translation reserve to recognize that a large proportion of the surplus funds were due to favourable exchange rate gains and to provide a degree of protection in the future from unexpected exchange rate movements. e) The revaluation reserve was re-classified to within the general reserve.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

17 FUNDS AND RESERVES (continued) Unrestricted funds and reserves (continued) Fixed asset reserve

This represents the value of IPPF funds invested in fixed assets (see note 11) or allocated for their replacement.

Staff reserve

These funds have been set aside to provide for redundancy and other separation costs in the event that IPPF should terminate its activities. This requirement only applies to the staff within the Western Hemisphere Regional Office.

Revaluation reserve

Leasehold premises were revalued in previous years and the upward revaluation was taken to this reserve. There was no change in the reserve during the year. No revaluations have been made due to adoption of the transitional rules of FRS 15 “Tangible Fixed Assets”.

Translation reserve

The non-US Dollar activities of the Africa Regional Office are combined using the average rate for the year for the Statement of Financial Activities and the year end rate for the Balance Sheet. The foreign exchange movement arising as a result of this is taken to this reserve, as are any other unrealized exchange gains on non-US dollar assets (see accounting policies for more details). In addition this reserve is used to absorb unexpected movements in the exchange rate which adversely affect the IPPF income forecasts.

WHR sustainability fund

This fund was established by the Western Hemisphere Region during 2002 following the receipt of a single legacy to be used within that Region. The WHR Board have agreed to keep the legacy intact and to use the income generated for activities within the region.

Other designated funds

These include the 21st Century Fund (for sustainability projects in South American Family Planning Associations) and various funds set aside for use by specific IPPF Regional Offices. A fund for HIV/AIDS activities and a focus on youth was established in 2003 using funding from the Danish Government. This funding was allocated for projects occurring in 2004 and 2005.

Innovation fund

Established in 1994, the Vision 2000 Fund was created to increase the proportion of IPPF’s resources available to priority countries, with high unmet needs in reproductive and sexual health, by up to fifty percent of its annual unrestricted income. In 2004 the fund was reviewed and re-established as the Innovation Fund. This will now be used to develop innovative projects centred around the IPPF 5 A’s.

General fund

This contains the unrestricted funds of IPPF which are free of donor restrictions for specific activities or countries. These will fund future activities.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

18 FORWARD COMMITMENTS 2004 $’000 Orders for contraceptives and services due within one year 140

2003 $’000 532

The commitments recognized are orders placed by the year-end but not yet delivered to IPPF, for which there is a legal obligation to make payment to the supplier.

Grants payable to Member Associations in future periods 340

510

Operating lease commitments: At 31 December, the following annual non-cancellable operating lease rental commitments existed: Expiring In the next 1-2 years Between 2-5 years Over 5 years

922 28 373

65 685 373

19 CONTINGENT LIABILITY In the ordinary course of business IPPF is subject to certain legal actions. In the opinion of management, such matters will not have a material effect on the financial position of IPPF.

20 FUNDS HELD ON BEHALF OF THIRD PARTIES At the 31 December 2004, IPPF held nil funds on behalf of others (2003: $1,166,457). These funds were not included in the balance sheet of IPPF in 2003 as the trustees did not have a legal obligation to ensure their charitable application.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

21 PENSION SCHEMES IPPF operates three pension schemes as described below: The Central Office pension scheme This is a defined benefit scheme covering most full-time staff in the Central Office, London. The scheme is closed to new members from 1 September 2003. New staff are provided with alternative defined contribution pension arrangements. The assets of the fund are managed by independent professional investment managers. The current funding policy is for employees to contribute 8% of pensionable salaries (increased from 6% per annum with effect from 1 January 2004) and for IPPF to make up for the balance of costs on actuarial advice based on a full valuation every three years. IPPF’s contribution rate for the 6 months ending 30 June 2004 was 30%. Thereafter IPPF’s contribution rate is expected to be 7.7% per annum of pensionable salaries plus $559,503 per annum. This contribution rate is applicable until 30 September 2007. From 1 October 2007, IPPF’s contribution rate is currently intended to be 11.8% per annum of pensionable salaries plus $1,232,640 per annum. The scheme’s assets and liabilities are calculated by professional actuaries. The most recent formal actuarial valuation as at 1st July 2003 was performed using the Projected Unit Credit Method. Under this method the current service cost will increase as the members of the Fund approach retirement. The main assumptions used in the valuation were: æ Investment return 8% per annum pre retirement and 5% per annum post retirement æ Pension increases 2.75% per annum æ Salary growth 3.25% per annum The report for the actuarial valuation as at 1 July 2003 showed the fund to have an asset value of $19.299 million under the ongoing valuation method. This is equivalent to a funding level of 63% (market value of assets versus liabilities). In addition to contributions by IPPF to improve the funding level, the benefit accrual has been reduced from 1/45th to 1/80th for pensionable service from 1 January 2003. Member contributions were increased in January 2004 by 2% per annum of pensionable salary. In addition, the investment strategy has been reviewed and assets were moved from equities to bonds so that the asset profile of the fund is more in line with the fund’s liability profile. The 2004 pension charge under this scheme is $674,381 (2003: $740,714). During 2004 an additional payment of US$1.0 million was made by the employer and this is recognized in the balance sheet as a prepayment under SSAP 24 until the next actuarial valuation is undertaken as planned on 1st July 2006. The Western Hemisphere Regional Office Pension Scheme Most full-time staff in the Western Hemisphere Regional Office are members of this defined contribution scheme. It is noncontributory for staff, and IPPF contributes 11.37% of eligible employee compensation. The 2004 pension charge for this scheme is $327,192 (2003: $279,448). The Overseas Staff Pension Scheme Most full-time staff in the Africa Regional Office and some members of the Arab World and South Asia Regional Offices are members of this scheme. It is a defined contribution scheme under which IPPF contributes 12% of basic salary, and is noncontributory for staff. The 2004 pension charge for this scheme is $187,847 (2003: $172,017). At 31 December 2004 there were no outstanding or prepaid contributions for either of the defined contribution schemes.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

21 PENSION SCHEMES (continued) FRS 17 disclosure note There is one defined benefit pension scheme, the Central Office pension scheme. The latest full actuarial valuation of this scheme was carried out at 1 July 2003. The contributions made by the employer over the financial year in respect of the scheme was as follows: 2004 $’000 674

2003 $’000 741

The transitional arrangements of the new accounting standard FRS 17, Retirement Benefits, require disclosure of assets and liabilities as at 31 December 2004 calculated in accordance with that standard. They also require disclosure of the items which would appear in the Statement of Financial Activities if the full requirements of the standard were in place. For the purpose of the financial statements, these figures are illustrative only and do not impact on the actual 31 December 2004 balance sheet or on the 2004 Statement of Financial Activities. To produce these statements, the most recent actuarial valuation has been updated by an independent qualified actuary. The assets of the scheme have been taken at market value and the liabilities have been calculated using the following principle actuarial assumptions.

Inflation Salary increases Rate of discount Pension increases: Pre 88 GMP Post 88 GMP Excess over GMP accrued pre 1.3.1998 Excess over GMP accrued between 1.3.1998 and 31.7.2002 Pension accrued post 31.7.2002

2004 per annum

2003 per annum

2002 per annum

2.5% 3.0% 5.25%

3.0% 3.5% 5.5%

2.5% 3.75% 5.5%

Nil 2.5% 6.0% 5.5% 2.5%

Nil 3.0% 6.0% 5.5% 3.0%

Nil 2.50% 6.0% 5.5% 2.5%

The present value of the scheme liability was calculated using the latest PA92 mortality tables projected to 2004 for pensioners and 2020 for non-pensioners. The calculations indicated:

Total market value of assets Present value of scheme liabilities Deficit in scheme

2004 $’000

2003 $’000

2002 $’000

24,414 39,379 (14,965)

19,578 32,989 (13,411)

14,994 26,309 (11,315)

31 December 2004 $’000

31 December 2003 $’000

31 December 2002 $’000

104,014 (12,277) (14,965) 76,772

87,551 (11,412) (13,411) 62,728

66,860 (6,065) (11,315) 49,480

Illustrative balance sheet figures: On this basis, the balance sheet of IPPF at 31 December each year would be:

Total assets Total liabilities Pension deficit Balance including pension deficit

If the deficit on the scheme had been included within the balance sheet of the charity, the funds would have reduced by $14.965 million to $76.772 million. (2003: Deficit of $13.411 million reducing the funds to $62.728 million). The pension liability does not exceed the unrestricted funds balance.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

21 PENSION SCHEMES (continued) Market Value and Expected Return on Assets: Long-term rate of return expected at 31/12/04 Equities and Property Bonds Cash Total market value of assets

8.0% 5.0% 4.25%

Value at Long-term 31/12/04 rate of return $’000 expected at 31/12/03 14,763 9,640 11 24,414

8.0% 4.75% 4.0%

Value at Long-term 31/12/03 rate of return $’000 expected at 31/12/02 15,319 4,009 250 19,578

Value at 31/12/02 $’000

7.25% 4.5% 4.5%

12,172 2,100 722 14,994

2004 $’000

2003 $’000

331 331

475 475

(1,587) 1,955 368 699

(1,130) 1,603 473 948

Illustrative charge to the Statement of Financial Activities over the financial year:

Operating charge Current service cost Total operating charge Pension finance costs: Expected return on pension fund assets Interest on pension funds liabilities Net Return Total charge to the Statement of Financial Activities

Illustrative gains and losses which would be included within the Statement of Financial Activities: 2004 $’000 Difference between the actual and expected return on assets As a percentage of the scheme assets at the balance sheet date Experience gains and losses on scheme liabilities As a percentage of the present value of the scheme liabilities at the balance sheet date Effects of changes in the demographic and financial assumptions underlying the present value of the scheme liabilities Total amount recognized in the statement of total recognized gains and losses As a percentage of the present value of the scheme liabilities at the balance sheet date

2004 %

431

2003 $’000

2003 %

1,623 2%

(314)

2002 $’000 (4,570)

8% (1,292)

(30%) -

(4%)

(1,695)

(1,038)

(840)

(1,578)

(707)

(5,410)

(4%)

2002 %

(2%)

(21%)

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

21 PENSION SCHEMES (continued) Movement in illustrative balance sheet deficit figures during the year:

Deficit in scheme at 1 January 2004 Movement in year: Current service cost Contributions Other finance income Actuarial loss Exchange rate movement Deficit in scheme at 31 December 2004

2004 $â&#x20AC;&#x2122;000

2003 $â&#x20AC;&#x2122;000

(13,411)

(11,315)

(331) 1,674 (368) (1,578) (951) 14,965

(475) 741 (473) (707) (1,182) 13,411

The exchange rate movement represents the difference in the exchange rate used to value the balance sheet in 2003 and 2004. There were no outstanding or prepaid contributions at the year end (2003:nil). The actuary has confirmed that the valuations made above under the requirements of FRS 17 do not indicate that there is an immediate funding requirement or that there is any need to change the current funding rates made by the employer to the pension scheme.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

22 TRUSTEE INFORMATION Governing Council consists of 30 members. The costs incurred in their attendance at Governing Council meetings and other events used to promote the aims and objectives of IPPF were $315,767 (2003: $314,442).

The costs were incurred as follows: Airfares Hotels Per Diems Other Total

2004 $

2003 $

142,690 127,663 26,945 18,469 315,767

124,019 125,470 40,697 24,256 314,442

23 RELATED PARTIES IPPF require each Governing Council member and Audit Committee member to complete an annual declaration of material transactions and interest form. These are reviewed by senior management and the Audit Committee. All IPPF staff are also required to complete such a form on joining the organization which is then up-dated as individual circumstances change. These forms are reviewed by Senior Management. These procedures are part of the policy which aims to ensure that people act in the best interests of IPPF at all times and that there is openness and transparency concerning any actual or potential conflicy of interest. Some members of the Governing Council are Presidents of Member Associations who receive grants from IPPF in accordance with the volunteer governance structure of IPPF. One trustee, Mrs Tamaro Toure has a brother who is the Executive Director of the grant receiving Member Association in Mali. The total grant of the MA in 2004 was $411,054. One trustee, Mrs Mariam Ment Ahmed Aicha has a brother who is a senior staff member in the Member Association of Mauritania. The total grant to the MA in 2004 was $434,565. One trustee, Ms Aiko Iijima is a senior advisor of JOICFP which receives grants from IPPF. In 2004 these amounted to $1,500,000. The Treasurer, Mr Monty Eustace and trustee, Ms Carine Vrancken served as Board members of the IPPF subsidiary company, ICON Ltd during 2004. The Audit Committee of IPPF have reviewed the above disclosures and do not consider that any indicate a potential conflict of interest. There are no other related party interests or transactions that require disclosure.

IPPF Financial statements 2004

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2004

Contact names and Addresses Registered Address 4 Newhams Row London SE1 3UZ United Kingdom Telephone +44 (0)20 7939 8200 Facsimile +44 (0)20 7939 8300 www.ippf.org info@ippf.org Principal Banker Investment Managers Barclays Bank 50 Pall Mall London SW1Y 5AX United Kingdom

GMO 40 Rowes Wharf Boston MA 02110 Massachussets

Merrill Lynch & Co Inc. 4 World Financial Center 250 Vesey Street NY 10080 New York

External Auditor KPMG LLP 1 Forest Gate Brighton Road Crawley RH11 9PT United Kingdom

Solicitor IPPF uses the services of several law firms, each one in accordance with their area of expertise. Further information is available on request.

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