MÉDECINS DU MONDE
FINANCIAL REPORT 2017 EDITION
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Médecins du Monde 2017 Financial Report
A WORD FROM OUR TREASURERS In 2017, we pursued the efforts undertaken in 2016 to control our spending and optimise our resources. Our economic model is evolving and must allow us to produce operating surpluses that will consolidate our political independence, strengthen our social impact and support the organisation’s transformation and development in line with our mission statement. Limiting our financial dependence in a changing humanitarian context impacted by strong and often unforeseeable political, security and financial issues is a big challenge. Indeed, analysing our independence in the reductive light of our generosity of the general public/total income ratio is no longer sufficient, especially as this ratio is deteriorating as a natural result of our significant but controlled growth. We must now ensure that our non-earmarked income provides us with enough freedom to make our own operational choices and determine our own political and strategic orientations. Our economic model must now take account of the transformations underway in the humanitarian aid and development assistance world, triggered by the 2016 World Humanitarian Summit in Istanbul: commitment from the biggest international donors to allocate 25% of humanitarian funding to national and local responders by 2020; politicisation and restriction of humanitarian funding, especially for the reception and protection of migrants and the work on unwanted pregnancies, due to the rise in populism; decentralisation of major donors to the field requiring our own organisation to decentralise; and the focusing of funding on serious crises with, as a corollary, a reduction in funding for smaller countries attracting less media attention (Asia, Latin America, etc.). -
Key figures for 2017: The figures for 2017 reflect the balance we have achieved between essential growth, on the one hand, and our desire for financial independence, on the other. 1) For the third year running, the financial year ended with a surplus. This is the result of two factors: strict and well-constructed budget management to guarantee our sustainability, and controlled growth. Our 2017 surplus stands at €993,000, to which, subject to General Assembly approval, we will add €62,000 of costs to be allocated to our reserves for associative projects (“Mission France Innovative projects”, “Adaptation of our premises in France"). MdM’s final accounting result will thus be €1,055,000. 2) Income in 2017 reached 100 million euros and expenditure reached 99 million euros. Growth was therefore moderate (3.4%) in comparison with 2016, but has increased by 27% since 2014. A relative deceleration began in 2015, reflecting the political choices outlined in our mission statement. 3) The percentage of funds allocated to our social mission remained high (82.7%) and stable against 2016. These funds allowed us to run 63 international projects in 41 countries and 61 projects in 33 towns in France. Social missions in France remained globally stable, with theactions implemented by our new Health and Advocacy Department making up for a 5 % reduction in field operations. Indeed, there was a sharp reduction in activity on sites such as Calais and surrounding areas (French North Coast) in 2017, descending to 2015 levels. The proportion of donor funding for social missions in France was around 50%, remaining constant with recent years.
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International social missions continued to develop at a rapid pace (+5.7%). This was mainly thanks to “crises and emergencies” activity for which funding increased from €19M to €26M in the space of one year (+38%), thereby re-establishing the balance between our humanitarian aid and development assistance activities. Financial support to local partners also rose significantly in 2017, reaching almost 7 million euros (up 1.3 million and 22% on 2016) and reflecting our desire to collaborate closely with civil society in the countries in which we are present. 4) Our income represented by the generosity of the public reached 46.5% in 2017. This proportion is down significantly compared to previous years (48.8% in 2016 and 50.8% in 2015), as public-sector grants for emergencies increased while general public generosity remained constant. However, thanks to a sharp increase in private funding from foundations for our international operations (+€1.7M), the majority of our financing still came from the non-institutional sector in 2017 (€50.3M against €46.M1). 5) French fundraising dropped slightly by €0.1M (- 0.3%) in 2017, settling at €38.22M in what was a competitive environment for humanitarian funding, with no major emergencies, as well as an election year - traditionally unpropitious for fundraising with the general public. MdM’s brand image remains very positive, however, as shown by the steady increase in direct debit donations (68% in 2017 against 64% in 2016). 6) MdM’s international network continues to grow significantly, playing an active part in the financing of our programmes (€21M in income from funding bodies in 2017, plus €2M in fundraising from the general public in the countries concerned).
Challenges and outlook for 2018 -
-
To consolidate our financial independence and margins for manoeuvre, we need to increase public giving by significantly increasing our investments in fundraising (donor knowledge, internet, and social networks), continuing our operational policy of reducing the number of projects and countries of intervention, and targeting corporate sponsors and foundations in accordance with our priority areas of intervention. We must ensure our human resources and budget and IT tools are more in phase with the volume of our operations, our organisational structure and the need for exemplary financial transparency. In 2018, we will be launching a series of projects to help us meet these objectives, including the setting up of an internal auditing department and an independent audit committee better equipped to meet the conditions and recommendations of institutional donors.
Conclusion The organisation is in good financial health. For the third year running, we ended with a budget surplus. Our equity level is stable and, despite our steady growth, represents 2.19 months’ of working capital. Income from general public generosity remains at a satisfactory level. We are working on a more active and efficient medium-term approach for bequests. Our private-sector funding department and international network are both beginning to reap the benefits of the improved visibility of our programmes and advocacy, while at the national level we are developing a more targeted fundraising strategy.
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Operating income excluding write-backs of provisions 3
MĂŠdecins du Monde 2017 Financial Report
Our economic and growth model must adapt to current trends in humanitarian funding. Indeed, major transformations are underway, with the emergence of an increasing number of NGOs and stronger civil societies in the South and an unpredictable economic context in the North, where the focus is more on security, counter-terrorism, “controlling� migration flows and containing armed conflicts in the South than on development assistance.
Philippe de Botton Julien Bousac
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Médecins du Monde 2017 Financial Report
CONTENTS
Part 1: The Statutory Auditor’s Report on Médecins du Monde’s Annual Accounts for the financial year ended on the 31st of December 2017 ➢ ➢ ➢ ➢
The Statutory Auditor’s Report 2017 Balance Sheet 2017 Income Statement 2017 Annual Income and Expenditure Statement: funds raised from the general public
Part 2: Analysis of the 2017 Accounts
Part 3: Special Report on Regulated Agreements
Part 4: 2018 Budget
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Part 1 The Statutory Auditor’s Report on Médecins du Monde’s Annual Accounts for the financial year ended on the 31st of December 2017
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2017 BALANCE SHEET
ASSETS
DEPREC + NET 2017 Net 2016 AMORT
GROSS
FIXED ASSETS Intangibles Licenses, patents etc. Advances and downpayments
1 005 854 0
856 960 0
148 894 0
1 206 101 7 711 527 9 690 122 0
0 5 856 409 8 906 791 0
1 206 101 1 855 117 783 331 0
Tangible assets Land Buildings Other fixed assets Fixed assets in progress
LIABILITIES
2017
EQUITY Statutory funds 279 957 Gratuities/Bequests 0 General intervention reserve Associative project reserve Balance brought forward Capital grant 1 206 101 Surplus allocated to investments
15 245 0 16 613 073 494 352 0 24 745 0 17 147 415
15 245 0 15 613 073 331 812 0 24 745 0 15 984 875
993 143
1 162 540
18 140 558
17 147 415
2 666 592
2 489 486
514 430
936 357
80 127 3 475 651 4 601 669 18 435 8 045 310
17 856 3 761 647 4 907 444 75 606 9 054 290
47 965 849
21 307 529
TOTAL II
64 187 041
39 124 372
TOTAL III
0
0
85 508 621
59 697 630
1 971 147 Subtotal 799 096 0 (-) DEFICIT or (+) SURPLUS
Investments
TOTAL I
Other long-term securities Loans Other investments TOTAL I CURRENT ASSETS
20 962 718 324 753 992 21 106 881
0 0 0 15 620 160
20 962 718 324 753 992 5 486 721
20 962 PROV. for liabilities and Charges 660 782 826 821 DEDICATED FUNDS 5 764 865
307 666 50 607 323 0 28 434 750
0 5 743 0 0
307 666 50 601 580 0 28 434 750
677 904
0
677 904
TOTAL II
80 027 643
5 743
80 021 900
53 932 766
TOTAL III Translation adjustments TOTAL IV
0
0
0
0
Stocks of medicines & med. Other receivables Securities Cash ADJUSTMENT ACCOUNTS Prepaid charges
300 819 28 183 503 2 706 24 798 788
2016
CURRENT LIABILITIES Bank borrowings (1) Supplier accounts payable & rel. acnts Tax and social liabilities Fixed asset liabilities & related acnts Other liabilities ADJUSTMENT ACCOUNTS
646 950 Deferred income
Deferred charges
TOTAL ASSETS
Translation adjustments 0
0
0
0
101 134 524
15 625 903
85 508 621
59 697 630
- Received commitments, net bequests to be processed : € 6 928 080
TOTAL LIABILITIES (1) Including bank overdraft : € 80 127
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2017 INCOME STATEMENT Operating income Institutional grants Private grants Office grants (from private fundraising) Office grants (none private fundraising) Donations in kind Bequests Corporate fundraising Subscriptions Children sponsorship Events income Other revenue Transfer of operating costs TOTAL I : Operating income
On 31/12/17 46 452 841 4 224 559 2 292 459 374 902 38 224 698 4 961 809 0 36 740 29 034 33 612 98 546 1 285 570 98 014 770
On 31/12/16 43 321 137 3 376 167 2 325 629 332 576 38 371 835 5 208 935 0 45 850 9 248 26 446 219 768 1 982 228 95 219 819
Operating expenses Purchase of raw materials and other supplies Movement in stock of medicines & med. suplplies Other purchases and external charges Taxes, duties & related Salaries & payroll Payroll taxes Depreciation and amortization On fixed assets On deferred charges Provisions and other allow ances/current assets Grants accorded by the Association
On 31/12/17 11 653 905 28 939 29 950 236 2 651 702 31 599 759 8 426 992 0 642 883 0 1 244 243 10 636 947
On 31/12/16 10 951 599 2 889 29 909 484 2 735 522 29 720 773 7 904 426 0 602 792 0 2 032 557 8 875 444
369 338
1 156 162
97 204 944
93 891 649
809 826
1 328 170
Other expenses TOTAL II : Operating expenses 1- Operating Income/Loss (TOTAL I) - (TOTAL II) Financial income Income from other investments and loans Other interest and similar income Foreign exchange gains Net income on disposal of investments and loans Reversal of provisions TOTAL III : Financial income
On 31/12/17 0 31 625 970 834 32 387 694 1 390 184
0 82 422 690 074 3 867 57 919 834 283
Financial expenses Amortization and depreciation Interest and similar expenses Foreign exchange losses Net expenses on disposal of securities investment TOTAL IV : Financial expenses
On 31/12/17 354 657 102 1 173 790 89 1 528 638
On 31/12/16 387 694 15 416 888 181 0 1 291 290
-138 454
-457 007
2 - Financial income/loss (TOTAL III) - (TOTAL IV)
On 31/12/16
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Extraordinary income On management operations On capital transactions Reversals of provisions TOTAL V : Extraordinary income
On 31/12/17 1 000 17 873 1 780 20 653
On 31/12/16 5 836 11 556 0 17 392
Extraordinary expenses On management operations On capital transactions Amortization and depreciation
On 31/12/17 39 815 67 541 0
On 31/12/16 7 049 68 449 0
107 357
75 498
-86 704
-58 106
13 451
19 781
TOTAL VIII : balance carried forward from previous year
678 752
952 614
TOTAL IX : Commitments of expenditures to be relised on earmarked funds
256 826
583 350
100 104 358
97 024 108
99 111 215
95 861 567
993 143
1 162 541
6 130 090
6 826 840
TOTAL VI : Extraordinary expenses 3 - Extraordinary items (TOTAL V) - (TOTAL VI)
TOTAL VII : Corporate income tax
TOTAL INCOME (I + III + V+ VIII)
TOTAL EXPENSES (II + IV + VI + VII + IX)
(-) DEFICIT or (+) SURPLUS
Benefits in kind
Médecins du Monde 2017 Financial Report
1.
KEY EVENTS IN THE FINANCIAL YEAR
2.
CHANGES IN PRESENTATION, VALUATION OR ACCOUNTING METHODS
3.
ASSOCIATIVE PROJECTS
4.
ACCOUNTING RULES AND METHODS
5.
TANGIBLE AND INTANGIBLE FIXED ASSETS 4.1 - Fixed assets movements table 4.2 - Depreciation table 4.3 - Net book values table
6.
FINANCIAL FIXED ASSETS
7.
STOCK
8.
STATEMENT OF END-OF-YEAR CLAIMS
9.
ACCRUED INCOME
10. LIQUID ASSETS 10.1 Marketable values 10.2 Banks and cash funds 11. PREPAID COSTS 12. ORGANISATION’S OWN FUNDS 13. TABLE OF PROVISIONS 14. EARMARKED FUNDS 15. STATEMENT OF END-OF-YEAR DEBTS 16. TABLE OF LEGACIES AND DONATIONS IN PROGRESS 17. ACCRUED LIABILITIES 18. DEFERRED INCOME 19. OFF-BALANCE-SHEET COMMITMENTS 20. EMPLOYEE STATISTICS 21. OPERATING EXPENSES: DETAILS 22. INCOME AND EXPENDITURE STATEMENT
These Annual Accounts were approved by the Board of Directors at their meeting on the 20th of April 2018. 14
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1.
KEY EVENTS IN THE FINANCIAL YEAR
The 2017 financial year was characterized by a surplus (+€ 1M against +€ 1.2M in 2016). The increase of our activities was more moderate than last year increase (+3% against +5% in 2016). The share of expenses dedicated to social programs stabilized in 2017 at 82.7% of our expenditures against 82.6% in 2016. Changes to the range of international programmes in 2017: ➢ -
-
➢ -
➢ -
Opened programmes: France: transalpine migration in the PACA region (effective start-up in 2018)/ rise in the AILSI and INCA programmes Africa: Unwanted Pregnancies ICR / Unwanted Pregnancies in Tananarive, HIV Observatory for key populations and response to the plague epidemic Madagascar / response to famine emergency in Somalia Maghreb/Egypt: migration platform in Algeria / support for mental and psychosocial support for migrants, refugees and guest communities in Cairo Egypt Middle East: reinforcement of the access to the medical emergency response, mental and psychosocial in Palestine / medical services towards the populations affected by the conflict inside the country in Syria / research project with the Queen Mary University in Lebanon Latin America: post-earthquake emergency response for mental health support in Mexico Asia: Pakistan Punjab/ health of the workers of the waste treatment sector in the Kathmandu valley Nepal / Rohingyas refugees in Bangladesh Europe: migrants in Rome Italia Closed Programmes or reorientations: France : Pays de la Loire-Funambus/IDF-ERLI/ Reorientations: Indian Ocean-Reunion Island/Guyana-RHAC/ merger of mobile missions in Alsace Maghreb/ Egyp : improved access to mental health services for high-risk population in Grand Cairo Egypt Middle East: promotion of the right to decide (Unwanted Pregnancies) in Gaza Palestine /Turkey medical support for Dyarbakir refugees Latin America: sexual and reproductive health in Peru Asia: Myanmar Pyapon Europe: migrants Greece /Ukraine- transfer to MDM UK Africa: prevention of female genital mutilation in the Afar region Ethiopia / Pasmi consortium in Madagascar / family planning in Ilela and sexual and reproductive health in Bouza in Niger / nutrition in Kanem Chad Opened/closed programmes during the year: Latin America: post flood emergency response in Peru
Implementing our action plan Doctors of the World – Médecins du Monde (MdM) has drawn up an action plan based on its mission statement (2015) and strategic plan (2016). We began to implement this action plan in 2017. The plan includes the creation of new departments and units to: - improve the quality of our field actions and advocacy (Health and Advocacy Department) - support the organisation’s transformation (Horizon 2025 Department) - strengthen voluntary work (MdM Community Unit).
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Furthermore, our operations directorates are being reorganised (creation of an Amman Unit, changes to French Operations Directorate) to work more closely with the field, and changes have also been made to the structure of the International Network Directorate.
2.
CHANGES IN PRESENTATION, VALUATION OR ACCOUNTING METHODS
No change occurred during this financial year.
3.
ASSOCIATIVE PROJECTS
The General Assemblies held in of 2015, 2016 and 2017 voted in favour of constituting three reserves for specific associative projects, the first one for financing innovative projects in France, the second one for adapting the premises used in France, the third one to finance the transformation plan of MDM France. In conformity with the French General Chart of Accounts for Associations, the appropriation to reserves of expenses for associative projects must be approved by the General Assembly. Expenses recorded in 2017 against the associative project “Innovative projects – France missions”, included in the surplus of € 993 142.60, amounted to € 49 801.36 overall. The expenses recorded in 2017 against the associative project “Adaptation of premises”, included in the surplus of € 993 142.60, amounted to € 11 935.92 overall If the 2018 General Assembly approves these expenses and their allocation to the "Innovative projects – France missions" and "Adaptation of premises” reserves, the accounting result of the financial year for distribution, restated with the cost of these expenses, will be € 1 054 879.88 instead of € 993 142.60 (€993 142.60 + € 49 801.36 + € 11 935.92). Nota bene: the Board of Directors proposed to the 2018 General Assembly that only the investment expenditure related to the transformation plan should be allocated to the financing of that project. As no investment expenditure was recorded in 2017, no expense is to be allocated to this reserve for this financial year.
4.
ACCOUNTING RULES AND METHODS
The financial year extended over 12 months, from the 1st January to the 31 December 2017. The accounts are drawn up in euros. On the 31 December 2017, the Balance Sheet showed a total of 85 508 621 euros, while the Income Statement, presented in the form of a table, showed a surplus of 993 143 euros (before cost allocation on the reserve account for associative projects).
4.1. BASIC ACCOUNTING PRINCIPLES The accounts have been drawn up -
in accordance with basic accounting conventions, and the following principles in particular: ✓ The principle of prudence; ✓ Consistency of accounting methodology from one financial year to the next; 16
Médecins du Monde 2017 Financial Report
✓ ✓ ✓ -
Continuity of operations; Non-compensation; Independent financial years.
in compliance with the general rules for the drawing up and presentation of annual accounts applicable in France, and in compliance with the following regulations in particular: ✓ CRC 99-01 regarding the rules and regulations for the drawing up and presentation of annual accounts for French associations, foundations and endowment funds; ✓ ANC 2014-03 of 05 June 2014 regarding the general chart of accounts, modified by regulation ANC 2015-06 on the 23th of November 2015; ✓ CRC 2008-12 regarding the drawing up of the Annual Income and Expenditure Statement for French associations and foundations.
4.2. FIXED ASSETS AND DEPRECIATIONS The Association’s fixed assets are entered in the accounts at their acquisition cost (purchase price plus incidental costs). They are recorded and valued in accordance with the standards laid down by the regulation regarding assets. Fixed assets which can be broken down: The only fixed asset found which could be broken down was the building housing the Association’s Head Office in Paris. It was broken down as follows:
NET VALUE On 31 december 2017 LAND
1 206 101
BUILDING
1 855 117
TOTAL
3 061 218
DEPRECIATION PERIOD
20 YEARS
Fixed assets in progress: None Depreciation: Fixed assets are depreciated using the straight-line method over their useful life. This remained unchanged in relation to the previous financial year, as set out below.
The allowance for depreciation for the financial year is entered in the accounts under the heading ‘Allowances for depreciation: fixed assets’.
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The following methods have been used to calculate depreciation over the financial year : · Software · Software developed by subcontractors · Building · Fixtures & fittings · Transportation equipment (Headquarters) · Transportation equipment (Programmes) · IT equipment · IT equipment (International Programmes) · Office equipment and furniture · Medical equipment · Communications equipment
Straight-line, 1 - 3 years Straight-line, 3 years Straight-line, 20 years Straight-line, 6 years and 10 years Straight-line, 3 years and 4 years Straight-line, 2 years and 3 years Straight-line, 3 years Straight-line, 2 years Straight-line, 6 years Straight-line, 6 years Straight-line, 6 years
The basis for an asset’s depreciation is its gross value minus its residual value, which is taken to be the sum (minus anticipated disposal costs) which the Association would obtain if it disposed of the asset on the market at the end of its service life. The residual value is taken into account whenever the service life of an asset is noticeably shorter than its anticipated physical life. The Association’s Head Office is a fixed asset which can be broken down. Its service life has been set at 20 years, but its physical life will no doubt be much longer. On 31/12/2017, the net book value of our Marcadet building was €1 855K for the building itself, and €1 206K for the land, which is not depreciable. In March 2016, an expert valued the Marcadet building and land at €18 400K. Since the net book value is clearly lower than the residual value (€1 855K for the building plus €1 206K for the land), no allowance for depreciation has been entered in the accounts since 31/12/2004. Financial fixed assets: Long-term securities: these are investment securities held for more than 1 year. On 31/12/2017, these amounted to €21K. Loans: Médecins du Monde frees itself from the obligation to take part in any building effort by paying its contribution to accredited collecting bodies in the form of interest-free loans, repayable over 20 years. On 31/12/2017, these totalled €718K. Other financial fixed assets: this heading corresponds to advances, deposits and guarantees paid to third parties in France and abroad. On 31/12/2017, these came to €753K.
Provision for depreciation on fixed assets: No provision for depreciation on fixed assets was recorded on the 31/12/2017.
4.3. STOCK AND STOCK DEPRECIATION Stock consists mainly of medical and surgical equipment, medicines, emergency kits, vehicles and communications equipment.
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Stock is entered in the accounts at its acquisition cost, and valued using the ‘first in, first out’ (FIFO) costing method. Depreciation is recorded if the actual value is lower than the entry value at the close of the financial year.
4.4. CLAIMS These are valued at their nominal value. Depreciation is recorded whenever their balance-sheet value is lower than their nominal value. Claims in foreign currency are accounted using the InforEuro exchange rate on the month concerned by the claim. The InforEuro exchange rate is set by the European Commission. Any unrealised losses on the 31st of December, resulting from the difference between the InforEuro exchange rate and the closure rate on the 31/12/2017, trigger the creation of a provision for foreign exchange losses.
4.5. DEBTS These are valued at their nominal value. Suppliers’ debts in foreign currency are converted using the InforEuro exchange rate rate on the month concerned by the debt. The InforEuro exchange rate is set by the European Commission. Any unrealised losses on the 31st of December, resulting from the difference between the InforEuro exchange rate and the closure rate on the 31/12/2017, trigger the creation of a provision for foreign exchange losses.
4.6. CASH INVESTMENTS Marketable securities are entered in the accounts at their acquisition cost and valued using the FIFO method. Depreciation is recorded whenever the balance-sheet value is lower than the acquisition cost. Investments earning interest (term deposits and passbook accounts) are entered in the accounts at their nominal value. Any accrued interest is entered in the accounts.
4.7. BANK ACCOUNTS AND CASH FUNDS IN FOREIGN CURRENCIES Bank accounts and cash funds in foreign currencies are converted into euros at the rate for the 31 December of each year.
4.8. GRANT FUNDING – INTERNATIONAL PROGRAMMES a. Once an agreement has been signed with a funding agency (public-sector or private), the total amount of the contractual grant is entered against the account of the third-party funding agency, under the balance-sheet heading ‘Other receivables’. 19
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b. At the close of the financial year, the Association decides how far the financed project has progressed (by comparing actual expenditure to the expenditure forecast in the funding agreement) and how much of the grant should therefore be recognised in the accounts for that financial year. Any administrative costs covered by the contract are also taken into account. c. The difference between the total grant funding awarded and the portion recorded as income is shown under deferred income. This represents the share of the grant linked to future financial years. d. Any agreements signed after the close of the financial year, but used to fund eligible expenditure for that year, are recorded as accrued grants. Ever since this more accurate accounting method has been applied to the outstanding portions owed by funding agencies, i.e. since the financial year 2012, the Association has not needed to set up earmarked funds to subsidise its international programme operations.
4.9. SUBSIDIES AND INVESTMENT GRANTS – FRENCH PROGRAMMES Operating subsidies are included under operating income for the financial year during which the Association is notified of the decision authorising the subsidy. If the subsidies apply in whole or in part to a period prior to the close of the financial year, a pro rata calculation is made, so that the income in question can be allocated to the relevant financial year, and, where necessary, deferred income can be entered in the accounts. Investment grants allocated to property which can be replaced by the Association are kept with liabilities under the heading ‘Non-recoverable Association funds’. Investment grants allocated to property which cannot be replaced by the Association are allocated to non-replaceable property and recorded in the investment grants account, then reclaimed on the Income Statement, as the item of property gradually depreciates.
4.10. EARMARKED FUNDS FROM GRANTS, DONATIONS AND LEGACIES Whenever income raised from French donors, general public and testators and allocated by them to a dedicated purpose and has not been used for that particular purpose by the end of the financial year, the restricted funds are entered in the accounts under balance-sheet liabilities. They represent the unused part of any restricted grants, donations and legacies, and are allocated via a specific expenditure account entitled ‘Outstanding commitments from earmarked funds’. Whenever these donations and legacies are used in the course of subsequent financial years, the earmarked funds are recovered using a specific income account entitled ‘Unused, earmarked funds brought forward from previous financial years’.
4.11. ASSOCIATIVE PROJECTS Reserve for the associative project is established and used as follow: Associative projects must be compliant to the associative object Expenditures are clearly identified and not assimilated to usual expenditure The allocation for an associative project and the expenditure commitments affectation concerning this project must be voted during the General Assembly, as well as the affectation to the general reserve of the unused funds. 20
Médecins du Monde 2017 Financial Report
4.12. PROVISIONS FOR LIABILITIES AND CHARGES Provisions for liabilities and charges are set up on the basis of events which have already occurred or are ongoing at the close of the financial year and render any such liabilities probable. On 31/12/2017, this heading included: provision for litigation and liabilities (mainly related to life insurance policies, dealings with ombudsmen, agreements with funding agencies, risks concerning our international projects); provision for retirement benefits. provision for unrealised exchange rate losses Provision for retirement benefits: The value of retirement benefits for Médecins du Monde’s total workforce (excluding local staff in countries other than France) was calculated. When calculating total retirement commitments (including social security contributions), the following were taken into account: -
retirement age: 65 years turnover rate averaged out for the last 4 years (2014 to 2017) pay increases of 1% per annum annual discount rate: 1.30% 2017 life table
4.13. LEGACIES AND OTHER DONATIONS Moveable and immoveable property originating from legacies or donations and destined to be sold by the Association is recorded in the following way: On the date a legacy is accepted by the Board of Directors or, in the case of legacies prior to 2006, on the date of their administrative authorisation, the items of property in question are recorded (off balance sheet) at their estimated value, and net of any charges they may have incurred in connection with the estate or its realisation, under ‘Commitments received’. As money is either received or paid out in connection with the sale of these items of property, the sums in question are either credited to (receipts) or debited from (withdrawals) the balance sheet account ‘Legacies and donations in progress’. The amount of the corresponding off-balance-sheet commitment is altered to reflect the movements are recorded. Once the realisation of any moveable and immoveable items of property has been finalised and has taken effect, the income account ‘Legacies and other gratuities’ is credited with the final, exact sale amount, net of any acquisition costs incurred by the property during its transfer, and the account ‘Legacies and donations in progress’ is then adjusted with respect to that legacy or donation. On 31 December 2017, legacies in progress totalled €2 490 349 and legacies receivable came to €6 928 080. Temporary, usufructuary donations are recorded as off-balance-sheet commitments to the value of the usufruct and its associated fruits, which are recorded as income for the financial year on the basis of the sums received. 21
Médecins du Monde 2017 Financial Report
4.14. BENEFITS IN KIND The receipts and expenditure relating to Médecins du Monde’s activities over the course of the financial year can be clearly identified thanks to our accounting records and financial statements. However, our accounts only provide a partial picture of the way we operate. The fact is that as an Association we receive numerous voluntary contributions which are never entered in the accounts. These voluntary contributions are made of the commitment of hundreds of unpaid men and women, without them we would not be able to run our programs, but they are also made of goods, services put to our disposal freely by companies, associations, foundations or donors. For example, Médecins du Monde benefits from gifts of equipment, goods or medicines, as well as free communications materials and media. This kind of non-financial giving appears at the foot of the Income Statement and of the Income and Expenditure Statement, and it is thanks to contributions of this kind that the Association is able to save money and expand its operations still further. Donations in kind: The valuation of goods and services in kind is based on official documents, supplied by the donors, certifying the financial value of the goods or services being given to Médecins du Monde. This financial value reflects the cost price of the goods or services in question. The valuation of services in kind for the year 2017 came to €514K, compared with €1 263K for 2016. Voluntary work in France: A volunteer is a physical person who works for a not-for-profit organisation without receiving anything whatsoever in return. Since 2014, the work carried out by French volunteers has been centrally recorded using a dataprocessing tool. Thanks to the information gathered, we now know the identity of each of our volunteers, the kind of work he/she does and the number of hours worked. Assessing the value of voluntary work involves calculating how much those hours would have cost if they had been worked as paid employment. The reference grid used to calculate their value in monetary terms is Médecins du Monde’s pay scale. The cost of employer contributions is included in this calculation. In the course of the financial year 2017, the French volunteers entered on the system worked 199 492 hours and would have cost us approximately €5 264K. This valuation is not an accurate reflection of all the work done by volunteers in the course of an entire year, since it is based on individual volunteers’ declarations of the hours they have spent working for the Association. Inevitably, this method of record-keeping fails to pick up every last detail and therefore ends up underestimating the true picture. International voluntary work: An international voluntary worker is a physical person over the age of eighteen who fulfils the following 3 conditions:
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Médecins du Monde 2017 Financial Report
1) Signs a voluntary service contract with a French voluntary organisation promoting international solidarity and recognised by the French Ministry of Foreign Affairs or Ministry for Overseas Development. 2) Under this remit, takes part in an operation promoting international solidarity. 3) Completes one or more missions of general public interest in a country not on a list determined by French government decree (Decree of 02 May 1995). Under the terms of a voluntary work contract, a voluntary worker must receive: training; a regular subsistence allowance and benefits in kind; payment of travel expenses and repatriation; medical and civil liability insurance; Social Security cover; and technical support. Welfare protection is also guaranteed under the provisions regarding voluntary insurance for French expatriates (the Fund for French nationals abroad [CFE]). The value of the contribution made by international voluntary workers is assessed using the following method: Médecins du Monde knows the exact number of voluntary workers engaged in one or more programmes over the course of a financial year. This number of variable-length programmes equates to a certain number of days, and that number of days can be expressed in terms of their full-time equivalence per month/per person. Each volunteer’s working profile is matched to a similar function already carried out within Médecins du Monde, allowing the theoretical cost to payroll to be calculated using Médecins du Monde’s internal pay scale. Any allowances and benefits in kind which have actually been paid to these voluntary workers are deducted from this total. On 31 December 2017, international voluntary worker contributions totalled €351K.
4.15. OTHER INFORMATION Statutory Auditor’s Fees The Statutory Auditor’s fees shown in the Income Statement for the financial year ended on the 31/12/2017 amounted to €85 445.
Administrators’ expenses: In the course of the financial year 2017, the Association’s administrators incurred travel and programme expenses of €65 594. These included travel for international programmes. Remuneration of the Association’s Chair: In compliance with the statutory provisions and with Article 261-7-1-d and Article 242 C of Appendix II of France’s General Tax Code, Médecins du Monde remunerates the position of Chair of the Board of Directors. The upper limit for this remuneration is set at 1.3 times the ceiling set by French Social Security or by whichever body is used as a reference instead. This remuneration, which is intended to be a gross amount, may not be paid for more than 3 terms of one year each, whether or not they are consecutive. The remuneration paid for 2017 came to €50 353.
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Médecins du Monde 2017 Financial Report
Remuneration of the Association’s three most senior executives, whether volunteers or paid employees (Article 20 of Act 2006-586 of 23 May 2006): The Association’s three most senior executives, whether volunteers or paid employees, are the Chair, the Treasurer and the General Secretary. Only the Chair is remunerated, as indicated in the previous paragraph, i.e. € 50 353 in 2017.
Events occurring after the close of the financial year: None.
24
Médecins du Monde 2017 Financial Report
5. TANGIBLE AND INTANGIBLE FIXED ASSETS 5.1. Fixed assets movements table
INTANGIBLES
01/01/2017
Subcontracted software Licences (software) Subtotal… IFA Advances
TOTAL INTANGIBLES TANGIBLE ASSETS
671 955 307 038 978 993 0 978 993 01/01/2017
Acquisitions
Fxd asset alloc. In prog. &
Disposals
14 584 12 277 26 861 0 26 861 Acquisitions
0 0 0 0 0
0 0 0 0 0 Fxd asset alloc. In prog.
Disposals
31/12/2017 686 539 319 315 1 005 854 0 1 005 854 31/12/2017
LAND Land Marcadet land Subtotal …
1 754 1 204 347 1 206 101
0 0 0
0 0 0
0 0
1 754 1 204 347 1 206 101
Buildings Marcadet building Fixtures/fittings & improvements Marcadet Fixtures/fittings & improvements Int. Prog. Subtotal …
0 2 761 874 4 882 172 83 283 7 727 330
0 0 0 13 269 13 269
0 0 29 072 0 29 072
0 0 0 0 0
0 2 761 874 4 853 100 96 552 7 711 527
1 072 922 5 195 644 1 893 231 654 344 536 794 134 738 428 995 63 893 9 980 562 0 18 913 992
22 202 186 553 139 408 0 0 0 8 824 0 356 987 0 370 256
81 447 255 160 154 376 71 822 19 688 60 515 0 4 417 647 426 0 676 498
0 0 0 0 0 0 0 0 0 0 0
1 013 677 5 127 038 1 878 262 582 522 517 107 74 223 437 819 59 475 9 690 123 0 18 607 751
19 892 985
397 117
676 498
0
19 613 605
BUILDINGS
OTHER TANGIBLE ASSETS Fixtures and fittings Transportation equipment IT equipment Office equipment Office furniture Medical equipment Communication equipment Audiovisual equipment Subtotal … Tangible assets in progress
TOTAL TANGIBLE ASSETS TOTAL
25
Médecins du Monde 2017 Financial Report
5.2. Depreciation table INTANGIBLES
01/01/17
Subcontracted software Licences (software)
Amort.
395 501 303 535 699 036
TOTAL INTANGIBLES TANGIBLE ASSETS BUILDINGS
146 929 10 995 157 924
01/01/17
Building Fixtures & fittings (Bdg)
Deprec.
1 409 204 4 346 979 5 756 183
Subtotal…
Recovery
31/12/17 0 0 0
Recovery
0 113 487 113 487
542 430 314 530 856 960 31/12/17
0 13 261 13 261
1 409 204 4 447 205 5 856 410
OTHER TANGIBLE ASSETS Fixtures & fittings Transportation equipment IT equipment Office equipment Office furniture Medical equipment Communication equipment Audiovisual equipment
75 178 94 10 7 2
682 919 990 958 253 323 666 679 371 471 484 958
80 255 154 71 19 60
TOTAL TANGIBLE ASSETS
723 272 4 953 196 1 746 258 621 622 521 017 128 086 427 264 60 749 9 181 465 14 937 648
167 160 376 822 688 515 0 4 417 646 145 659 406
718 788 4 876 955 1 686 871 560 758 508 583 69 894 427 930 57 011 8 906 791 14 763 200
TOTAL
15 636 684
642 883
659 406
15 620 160
Subtotal…
5.3. Net book values table INTANGIBLE ASSETS
GROSS AMOUNTS ON 31/12/2017
686 539 319 315 0 1 005 854
Subcontracted software Licences (software) Advances on intangible assets
TOTAL INTANGIBLES
GROSS AMOUNTS ON 31/12/2017
TANGIBLE ASSETS
TOTAL AMORTISATION ON 31/12/2017
542 430 314 530 0 856 960
TOTAL AMORTISATION ON 31/12/2017
NET BOOK VALUE ON 31/12/2017
144 109 4 785 0 148 894
NET BOOK VALUE ON 31/12/2017
LAND Land Marcadet Land Subtotal…
1 754
0
1 754
1 204 347
0
1 204 347
1 206 101
0
1 206 101
BUILDINGS Building
0
0
0
Marcadet building
2 761 874
1 409 204
1 352 670
Fixtures/fittings & improvements Marcadet
4 853 100
4 370 716
482 384
Fixtures/fittings & improvements Int. Prog.
96 552
76 489
20 063
Subtotal…
7 711 527
5 856 409
1 855 117
OTHER TANGIBLE ASSETS Fixtures & fittings
1 013 677
718 788
294 889
Transportation equipment
5 127 038
4 876 955
250 082
IT equipment
1 878 262
1 686 871
191 391
Office equipment
582 522
560 758
21 764
Office furniture
517 107
508 583
8 524
74 223
69 894
4 329
437 819
427 930
9 890
59 475
57 011
2 464
9 690 123
8 906 791
783 333
Medical equipment & supplies Communication equipment Audiovisual equipment Subtotal… Tangible assets in progress TOTAL TANGIBLES TOTAL
26
0
0
0
18 607 751
14 763 200
3 844 550
19 613 605
15 620 160
3 993 445
Médecins du Monde 2017 Financial Report
6. FINANCIAL FIXED ASSETS
FINANCIAL FIXED ASSETS
31/12/17
Other long-term securities Housing construction loans (tax on French employers) Deposits & guarantees
20 962 718 324 753 992 1 493 278
Total ...
7. STOCK
STOCK
31/12/17
End of year amount of stock
307 666
Depreciation of vehicle stock
0 307 666
Net stock amount
8. STATEMENT OF END-OF-YEAR CLAIMS
CLAIMS STATEMENT
Gross amount
1 year maximum
Over 1 year
Relating to fixed assets: Loans (deposits and guarantees)
718 324
19 039
699 285
Other financial fixed assets
753 992
0
753 992
1 472 316
19 039
1 453 277
8 193
8 193
48 495 997
29 724 462
personnel and related accounts
61 931
61 931
Social security bodies
80 368
80 368
0
0
1 580 907
1 580 907
150 991
150 991
228 938
30 114
198 824
50 607 323
31 636 965
18 970 359
677 904
677 904
677 904
677 904
0
52 757 544
32 333 908
20 423 636
Total 1 … Relating to current assets: Account receivables Funding bodies
State Various debtors Accrued income Legacies in progress Total 2 … Prepaid costs Total 3 …
GRAND TOTAL (1 + 2 + 3) Amount of :
- loans granted during financial year - loan repayments over financial year
27
0
18 771 535
Médecins du Monde 2017 Financial Report
9. ACCRUED INCOME OTHER RECEIVABLES :
On 31/12/2017
-Discounts, reductions & rebates obtainable and credits receivable
52 825
- Social security bodies - accrued income
80 368
- State - accrued income
0
- Accrued income * Grants income * other accrued income * International network
150 991 33 621 104 700 12 670 TOTAL ACCRUED INCOME :
10.
284 184
LIQUID ASSETS
10.1. Marketable values INVESTMENTS
Share price on 31/12/2015
Purchase value
latent revaluation gains
SICAV or FCP
0
0
0
Shares
0
0
0
Term deposit account
13 766 802
Term deposit account interests
0
TOTAL
13 766 802
10.2. Banks and cash funds GROSS VALUE
On 31/12/2017
Values for collection
3 735 473
Bank balances
24 190 964
Cash in hand
508 313
TOTAL
28 434 750
11. PREPAID COSTS PREPAID COSTS
On 31/12/2017
Suppliers' charges billed in advance
677 904
TOTAL
677 904
28
latent revaluation losses
0
Médecins du Monde 2017 Financial Report
12. ORGANISATION’S OWN FUNDS
31 December 2016 15 245 0 15 613 074 331 812 0 0 0 24 745 0
OWN FUNDS Statutory Reserve Gratuities/Legacies General Reserve: Operations Reserve: Associative project Balance brought forward Emergency Reserve Operating Reserve Investment grants Surplus allocated to investments
TOTAL 2015 Surplus 2016 Surplus TOTAL OWN FUNDS
0 0 1 000 000 326 717 0 0 0 0 0
0 0 0 164 177 0 0 0 0 0
31 December 2017 15 245 0 16 613 074 494 352 0 0 0 24 745 0
15 984 876
1 326 717
164 177
17 147 416
1 162 540 0
0 0
1 162 540 0
0 993 143
17 147 416
2 319 860
1 326 717
18 140 559
Increase
Reduction
13. TABLE OF PROVISIONS
NATURE OF PROVISIONS Provisions for Provisions for Provisions for Provisions for Provisions for
On 31/12/16
contingency and loss litigation foreign exchange losses retirement benefit exchange loss
Allowance for Write-back of financial year provisions
On 31/12/17
Total 1
330 935 1 349 874 420 983 387 694 2 489 486
0 619 722 619 505 354 657 1 593 884
73 435 534 667 420 983 387 694 1 416 779
257 500 1 434 930 619 505 354 657 2 666 591
Total 2
0 148 429 148 429
0 5 016 5 016
0 147 703 147 703
0 5 742 5 742
2 637 915
1 598 901
1 564 482
2 672 334
Provisions for depreciation On financial fixed assets Other provisions for depreciation
GRAND TOTAL (1 + 2)
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Médecins du Monde 2017 Financial Report
14. EARMARKED FUNDS
EARMARKED FUNDS
Provisions for EFs at start of outstanding financial year commitments (+)
Write-backs of EFs
EFs at end of financial year
(-)
(=)
From grants
799 318
95 233
541 713
352 838
AFRICA ASIA EUROPE FRANCE MIDDLE EAST
0 215 278 0 584 040 0
0 0 0 95 233 0
0 99 560 0 442 153 0
0 115 718 0 237 120 0
From donations
137 039
161 592
137 039
161 592
AFRICA ASIA EUROPE FRANCE MIDDLE EAST
0 137 039 0 0 0
0 0 0 0 161 592
0 137 039 0 0 0
0 0 0 0 161 592
From legacies
0
0
0
0
FRANCE
0
0
0
0
936 357
256 825
678 752
514 430
0 352 317 0 584 040 0
0 0 0 95 233 161 592
0 236 599 0 442 153 0
0 115 718 0 237 120 161 592
936 357
256 825
678 752
514 430
Total earmarked funds AFRICA ASIA EUROPE FRANCE MIDDLE EAST
Total earmarked funds
15. STATEMENT OF END-OF-YEAR DEBTS Gross amount 1 year maximum as at 31/12/2017
DEBTS STATEMENT Borrowings and similar debts
Over 1 year to 5 years maximum
80 127
80 127
0
Accounts payable and related accounts
3 475 651
3 475 651
0
Personnel and related accounts
2 191 184
2 191 184
0
Social security bodies
1 996 008
1 996 008
0
414 476
414 476
0
18 435
18 435
0
TOTAL DEBTS …
8 045 310 16 221 191 47 965 849
4 638 838 12 814 720 33 210 867
3 406 472 3 406 472 14 754 982
GRAND TOTAL
64 187 041
46 025 587
18 161 454
State taxes Fixed asset debts and related accounts Other debts Deferred income
Borrowings repaid during financial year
0
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Médecins du Monde 2017 Financial Report
16. TABLE OF LEGACIES AND DONATIONS IN PROGRESS Ongoing legacies Ongoing legacies and donations on and donations on 31/12/2016 31/12/2017
TOTAL
3 500 142
2 490 349
17. ACCRUED LIABILITIES
ACCRUED LIABILITIES
On 31/12/2017
Borrowings and debts with credit institutions: - Accrued interest, not yet matured Accounts payable and related account - Invoices not yet received Tax and social security debts - Accrued paid leave debts - Other personnel costs payable - Social security bodies - accrued contributions - Accrued State taxes Other debts - Miscellaneous expenses accrued
TOTAL ACCRUED EXPENSES
0 0
1 589 849 1 589 849
3 281 639 1 564 809 600 279 821 451 295 101
101 337 101 337
4 972 825
18. DEFERRED INCOME
DEFERRED INCOME
On 31/12/2017
Foreign Grants - Africa - America - Asia - Europe - Middle East - Cross countries
47 808 466 8 103 411 4 799 490 1 651 376 538 845 30 430 185 2 285 159
France Grants
157 383
TOTAL :
47 965 850
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Médecins du Monde 2017 Financial Report
19. OFF-BALANCE-SHEET COMMITMENTS
18.1. Commitments received Commitments received (legacies and donations)
Legacies
Number of testamentary donations accepted by the board and not received Valuation of the amount to be received
Donations
156 6 914 630
Total on 31/12/2017
2 13 450
158 6 928 080
18.2. Given Commitments Residual Paid royalties Redevances restant à payer Financial period Cumulated Less than a year From 1 to 5 years Total to be paid purchase price 1 685 50 394 0 0 0 0
LEASING COMMITMENTS (in euro) Rolling stock
TOTAL…
1 685
LEASING COMMITMENTS
50 394 Entry Costs
(in euro) Rolling stock
TOTAL …
0
0
0
Depreciation charges Financial year Cumulated 0 0
0
0
0
0
0
0
Other commitments
Total on 31/12/2017
Security, guarantee, bond Security in rem
none none
32
0 Net value
Médecins du Monde 2017 Financial Report
20. EMPLOYEE STATISTICS MdM workforce as at 31 December 2017 1 674
international programs staff
•
1 478 national employees
•
5
international solidarity volunteers
•
125
expatriate employees
•
64
head office IOD employees
1 984
French sector staff
•
1 853 volunteers (including the 307 voluntary association managers below)
•
113
employees in the field
•
18
head office employees
466
operational support staff •
307 voluntary association managers (directors, regional members, group leaders, heads of projects)
•
159 head office employees
For a total of 3 815 MdM staff
Pay: Average of the 3 highest gross annual salaries: €79 512 Average of the 3 lowest gross annual salaries: €22 832 Average gross annual salary: €36 840 Ratio 3 highest gross annual salaries/3 lowest gross annual salaries: 3.48 The lowest gross annual salary is higher than French minimum wage: + 18.65 %. The figures above do not include seniority bonuses.
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MĂŠdecins du Monde 2017 Financial Report
21. OPERATING EXPENSES: DETAILS
Operating expenses
2017
2016
Purchases
28 939 886 272 102 454 183 908 263 096 43 503 1 007 846 7 081 170 872 097 183 740 217 485 55 666 713 465 43 202 11 682 844
2 889 905 937 134 135 153 937 124 655 58 134 1 032 878 6 309 395 926 955 146 992 194 848 27 924 880 036 55 774 10 954 488
902% -2% -24% 19% 111% -25% -2% 12% -6% 25% 12% 99% -19% -23% 7%
Outside services
7 430 767 1 786 5 049 447 1 150 967 360 031 146 633 238 722 14 378 353
7 723 892 18 139 5 095 756 1 262 681 355 459 49 712 180 958 14 686 598
-4% -90% -1% -9% 1% 195% 32% -2%
Other outside services
333 517 1 249 366 2 600 968 2 672 638 582 458 5 259 051 2 427 956 328 952 116 976 15 571 883
212 700 1 062 477 2 399 715 2 572 011 666 854 5 531 072 2 272 288 390 785 114 983 15 222 886
57% 18% 8% 4% -13% -5% 7% -16% 2% 2%
Personnel costs
2 651 702 31 597 877 8 428 874 40 026 751
2 735 522 29 720 121 7 905 078 37 625 199
-3% 6% 7% 6%
Other management costs
369 338 10 636 947 11 006 285
1 156 162 8 875 444 10 031 606
-68% 20% 10%
Allowances for depreciation
1 887 126
2 635 350
-28%
TOTAL
97 204 944
93 891 649
4%
Stock variation Sanitation equipment Housing equipment Logistics equipment Vehicles Miscellaneous equipment Non-storable supplies Medicines and medical equipment Cleaning and maintenance supplies International personnel equipment Expendable equipment Mailing supplies Food aid / foodstuffs Event merchandise Subcontracting Leasing charges Rental and rental charges Maintenance and repairs Insurance premiums Studies and research Miscellaneous Outside staff Local staff Fees Advertising and publications Transportation Trips / Receptions Postage and Telecommunications Bank charges Miscellaneous Taxes and similar payments Salaries and pay French NI contributions Miscellaneous management costs Grants paid by the association
34
2017/2016
Médecins du Monde 2017 Financial Report
22.
INCOME AND EXPENDITURE STATEMENT
The Annual Income and Expenditure Statement (IES) was drawn up in compliance with the provisions of Regulation No. 2008-12 of the Accounting Regulatory Committee. The IES explains how the Association’s overall resources were used, i.e. how they were divided up between social programmes, fundraising costs and operating costs. The totals in columns 1 and 2 match the total expenditure and income in the Income Statement. The IES also gives a separate breakdown of the way in which funds raised through public giving have been used. Columns 3 and 4 enable the monitoring of all such funds, whether they have been raised in the same financial year or brought forward from previous years’ unused funds. The total shown on the Income and Expenditure Statement is always identical to the totals on the Balance Sheet and on the Income Statement. In 2009, the Board of Directors of Médecins du Monde ruled on several aspects of the IES, including: the amount of unrestricted, unused funds raised from the public carried forward at the start of the financial year; the definition of Médecins du Monde’s social programmes (in France and abroad); the definition of fundraising costs; the definition of operating costs; and the allocative keys available for indirect costs. This year, no changes were made to our methods or to the definitions of the various headings used (social programmes, fundraising costs and operating costs).
Social Programmes: Médecins du Monde’s vocation is to treat the most vulnerable people groups in crisis situations or situations of exclusion, both here in France and Worldwide, highlighting the harm caused by crises and by threats to people’s health and dignity. Its aim is to help prevent such harm and, through its witness-bearing initiatives, to denounce human rights violations, in particular the obstacles preventing access to treatment. As an organisation authorised and empowered by the competent authorities, the Association also aims to promote adoption, in order to help those children who have been put up for adoption legally by the authorities in their country of origin, and who cannot be kept safe in any other way. Social programmes therefore include the following: operations carried out in France, arranged by type of activity (centres, outreach, harm reduction, regional delegations, exploratory programmes, witness-bearing programmes, and associated coordination, management and monitoring costs); operations carried out abroad, arranged by continent, and including adoption (direct costs of programmes, of exploratory programmes and of witness-bearing programmes, and associated coordination, management and monitoring costs). Information and communications costs are shown under social programmes, since the Board of Directors has decided that these activities constitute an integral part of the Association’s social purpose. 35
Médecins du Monde 2017 Financial Report
Guidelines for the allocation of expenses to social programmes: Expenditure on social programmes is the sum of the costs incurred by the Association in pursuit of its operations. Expenditure on social programmes therefore includes direct costs (charged as soon as transactions are entered in the accounts) and costs that cannot be directly assigned and are therefore shared out using allocative keys. Only an expense which has actually been incurred is assigned to a specific social programme. Provisions are recorded under the headings ‘Charges to Provisions’ or ‘Write-back of Provisions’ in the Annual Income and Expenditure Statement, depending on whether they are being created or recovered. Allowances for depreciation can be classed as operational expenses if the above definition applies. Only financial costs linked directly to social programmes (and which would disappear if the social programme in question came to an end) should be recorded under social programmes.
Fundraising Costs: - Costs of appeals for public giving: This heading includes the costs of appealing for donations (marketing, direct mail advertising, newspaper inserts, etc.) and the costs of processing donations, issuing tax receipts, and finding and managing legacies, as well as donations linked to life insurance, managing special events, dedicated personnel costs, and the costs of fundraising from other network members. Some of the costs for the donors’ newsletter are charged to this heading (cf. allocative keys below). - The costs of finding other sources of private funding: This heading includes the costs of the Corporate Sponsorship & Partnerships Department; - The costs of obtaining grants and other public-sector participation: This heading includes the costs of the department dedicated to public-sector and institutional funding [DDI].
Operating Costs: Operating costs include the costs of the following departments: -
Administration and Legal Affairs; Directorate of Financial Management and Head Office Accounts; IT (excluding its share of provisions for depreciation divided up on the basis of the guideline below); General Services (excluding their share of allowances for depreciation divided up on the basis of the guideline below); HR directorate; financial costs (excluding costs directly attributable to particular programmes); some salary-based taxes; Head Office depreciation (excluding its share of allowances for depreciation divided up on the basis of the guideline below).
36
Médecins du Monde 2017 Financial Report
Allocative Keys used: • Head office depreciation is divided up into 50% operating costs and 50% social programme costs. Half the equipment and fixtures are in actual fact used by programme-related departments. • Costs relating to the donors’ newsletter are considered partly as a means of/tool for telling people about initiatives we have carried out, and partly as the costs of raising income through public giving. • Under social missions, all the headings covering both french and international operations are divided up using the following key: 75% to international programmes and 25% to French programmes. This following heading fall into this category: General Directorate, Board of Directors, Financial Management and Internal Control Coordinator, Provisions and miscellaneous taxes, etc.
Funds from public giving: Funds from public giving are: donations from private individuals and businesses (excluding corporate sponsorship, sales-percentage and partnership agreements); legacies; donations linked to life insurance; income from special events; and funds raised from other network members.
Other private funds: Other private funds include: funds received from businesses in the form of corporate sponsorships, sales percentages or partnerships; grants received from private, not-for-profit organisations.
Grants & other public-sector participation: This heading includes grants from the European Union and the French State, and from local authorities and public-sector institutions.
Other income: Other income includes: financial income from reserves created by the Association to cushion it against contingencies We believe that the investments chosen are among the safest on the market (money market investments, and interest-earning accounts and deposits); miscellaneous operating income; subscriptions; contributions to the ‘Adoption’ service.
Allocation of income from public giving: Once any allocated funds received (whether grants, donations, legacies or funds from corporate sponsorship) have been used, any unallocated income from public giving is used as far as possible to fund social missions.
37
MĂŠdecins du Monde 2017 Financial Report
According to this guideline, the order in which income is allocated to expenditure is as follows: Allocated grants; Other allocated, private funds; Allocated public giving; Unallocated public giving; Other unallocated, private funds or other income. In the event that not all the income received from public giving can be used to fund social missions, the balance is put firstly towards fundraising costs, then towards operating costs.
Income from corporate sponsorship is used as far as possible to fund the search for further corporate sponsorship, and the percentages for administrative costs awarded along with public-sector grants are used as far as possible to fund the search for further grants, after which they can be put towards the Association’s operating costs.
Changes to Earmarked funds from public giving: These changes show either that the funds allocated by a donor have been used, or, when it has not been possible to use a donation as requested by the donor, the continued existence of earmarked funds.
Funding of Fixed Assets: As far as possible, fixed assets are funded from income other than that derived from public giving.
Inventory of French volunteer workforce: 1 853 French volunteers intervened in 2017 - the Full Time Equivalent of 109.61 people.
Nature and quantity of income in kind: See comments on this subject under Point 4.14 of Accounting Rules and Methods above. The information presented here has been drawn up on the basis of our accounting records.
38
68 808 036
12 036 179
1.2 Activities carried out abroad
2 - FUNDRAISING COSTS
39
Social Programmes Fundraising costs Operating costs and other expenses TOTAL
IV - SURPLUS FUNDS FOR THE FINANCIAL YEAR V - GRAND TOTAL V - Proportion of gross fixed asset acquisitions in the financial year finances since the regulation first came into force by funds raised from the general public VI - Offsetting of depreciation allowances on fixed assets financed since the regulation first came into force by funds raised from the general public VII - Total expenditure financed by funds raised from the general public
III - OUTSTANDING COMMITMENTS FROM EARMARKED FUNDS
TOTAL I - TOTAL EXPENDITURE FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - CHARGES TO PROVISIONS
6 130 090
6 081 033 11 596 37 460
993 143 100 104 358
256 826
1 598 901
97 255 489
97 255 489
4 758 198
243 702
2.3 Costs related to applications for grants and other public sector funding
3 - RUNNING COSTS
370 111
2.2 Costs of fundraising from other private sources
11 422 366
11 653 076
1.1 Activities carried out in France
2.1 Costs of appeals to public generosity
80 461 112
2017 Expenditures
1 - SOCIAL PROGRAMMES
EXPENDITURE
45 644 662
0
0
45 644 662
3 066 580
0
331 388
11 422 366
11 753 755
23 251 962
7 572 365
30 824 327
Allocation (according to use) of funds raised from the general public for use during the financial year
Unrestricted donations by hand Earmarked donations by hand Unrestricted legacies and other gratuities Earmarked legacies and other gratuities
Volontary work (France) Donations in kind
TOTAL
VI - Total expenditure financed by the funds raised from the general public Balance of funds raised from the general public which are unrestricted and unused at the end of the financial year
I - TOTAL FUNDS FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - WRITE-BACKS OF PROVISIONS III - UNUSED, EARMARKED FUNDS BROUGHT FORWARD FROM PREVIOUS FINANCIAL YEARS IV - CHANGE IN EARMARKED FUNDS RAISED FROM THE GENERAL PUBLIC (cf table of earmarked funds) IV - FUNDING DEFICIT FOR THE FINANCIAL YEAR VI - GRAND TOTAL
3 - GRANTS AND OTHER PUBLIC SECTOR FUNDING 4 - OTHER REVENUE
2 - OTHER PRIVATE FUNDS
1.2 Other revenue from appeals to public generosity
-
1.1 Donations and legacies received
1- FUNDS RAISED FROM THE GENERAL PUBLIC
Brought forward funds raised from the general public, unrestricted and unused at the start of thefinancial year
INCOME
in
333 365 277 531
6 130 090
5 615 960 514 130
0 100 104 358
678 752
1 564 482
97 861 124
46 452 841 1 267 211
4 628 495
2 326 071
38 130 94 4 695 266
43 186 506
45 512 577
Funds Raised 2017
INCOME AND EXPENDITURE STATEMENT : FUNDS RAISED FROM THE GENERAL PUBLIC - 2017
333 365 277 531
6 264 488
45 644 662
45 649 616
137 039
2 326 071
38 130 94 4 695 266
43 186 506
45 512 577
6 259 533
Monitoring of funds raised from the general public for use during the financial year
Médecins du Monde 2017 Financial Report
MĂŠdecins du Monde 2017 Financial Report
Part 2 Analysis of the 2017 Accounts
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Médecins du Monde 2017 Financial Report
1. INCOME STATEMENT In thousand of €
INCOME EXPENSES SURPLUS/DEFICIT
-
2014 74 956 77 880 2 924
2015 91 187 90 922 265
2016 97 024 95 861 1 163
2017 100 104 99 111 993
Moderate growth MdM's global activity grew by 3% in 2017, a slower rate than the previous year (+ 5%). This growth is mainly due to the development of our international social missions (+5.7%) and, to a lesser extent, the necessary strengthening of headquarters support services to cope with the strong growth of recent years (27% between 2014 and 2017) and the creation of Health and Advocacy Department. This new department is tasked with supporting MdM's activity on advocacy, improving the quality of its health practices and promoting operational research and innovation. A financial year ending with surplus Our final accounting result stands at $1M, after the allocation of costs linked to France Innovative projects and the adaptation of our premises in France to associative project reserves. This surplus is the result of a combination of two factors: -
Increased public- and private sector grants for our operations, enabling us to maintain positive operating income (+€0.8M). The effect was heightened by the write-back of earmarked funds constituted over previous years (positive effect of +€0.4M on the result).
-
Improvement in our financial result. The deficit in 2017 (- €0.1M) was due to exchange rate fluctuations and was much lower than last year. In 2016, changes to our method of calculating these fluctuations generated an additional financial expense of €0.7M.
1.1.
Operating result
1.1.1.
Operating income
Our operating income stands at €98M for 2017. This €3M increase against 2016 (+2.9%) is due to higher public- and private-sector grants (+€4M or + 8.5%). Most of our funding came from the non-institutional sector (€50.3), including income from the general public1 (€45.5M), private-sector grants (€4.6M) or miscellaneous operating income (€0.2M) and publicsector grants (€46.5M). It is this crucial balance between private and public income and our efforts to diversify the sources of our funding that enables our organisation to maintain its financial independence. And it is this financial independence that allows us to develop programmes outside of calls for projects launched by funding bodies, start projects without having to wait for external funding and carry out exploratory missions. Income from the general public in France and internationally was down slightly on 2016 (-€0.4M).
1
Income from the general public is made up of donations, bequests and donations from the network. 41
Médecins du Monde 2017 Financial Report
Fundraising from the French public reached €38.2€ in 2017. This amount has remained stable and does not include earmarked donations allocated to emergencies or waivers of expenses (-€0.2M). There is no denying the success of the investments made to develop direct debit donations, which confirms the adherence of the public to our communication campaigns. However, there was a reduction in one-off donations over the financial year, although the amount of these donations had been particularly high in 2016 owing to the Haiti emergency (cyclone during the last quarter) and one exceptionally large donation. Donations by direct debit represented 68% of French fundraising in 2017, against 64% in 2016. Income from International Network fundraising reached €2.3M in 2017, around the same level as in 2016. Income from bequests and other similar donations reached €5M, down by €0.2M in comparison with 2016. There was a reduction in the number of life-insurance files in 2017. Public-sector grants also continued to grow (+€3.1M, or +7% on 2016) in line with the development of our social missions, especially those focusing on emergencies and crises (Syria, Iraq, Yemen, Nigeria, etc.). Private-sector grants were received from foundations and associations 2 for a total of €4.6M. This sharp increase on 2016 (+€0.9M, or +24%), was due to contacts established via our international network (US, UK, Germany and Belgium). Write-backs of provisions for the amount of €1.2M were due to the resolution of a number of liabilities or litigations during the financial year for which prior provisions had been made. The detail is as follows: -
Write-backs of provisions offset by an expense of €0.3M. These write-backs therefore had no effect on the final accounting result. Certain provisions were no longer required as the liability did not materialise, and their writeback added €0.3M to the result. Finally, the provision for retirement benefits is written back and re-provisioned every year. The amount of the write-back of this provision in 2017 was €0.4M. The provision is listed in the expenses below.
The tranfers of costs (€0.1M) correspond to insurance reimbursements or the recording as fixed assets of items stored previously.
1.1.2.
Operating expenses
The 3.5% increase in operating expenses recorded in 2017 was due to the growth in our social missions (+4.9% on average). The most notable increases were as follows:
2
Including international network offices 42
Médecins du Monde 2017 Financial Report
Purchases (€11.7M). The increase in 2017 (+€0.7M, or 6%) is due to a greater use of pharmaceutical products and surgical material than in 2016, especially in countries affected by the Syrian crisis. Staff costs (€40M), up by €2.4M, or 6%. This increase concerns both staff on French contracts (+€1.2M) and staff recruited locally on international programmes (+€1.2M) and is due to the growth in our activities and the creation of new departments and units (Health and Advocacy Department mentioned earlier, Horizon 2025 Department tasked with coordinating our transformation plan, and MdM Community Unit responsible for strengthening the engagement of our voluntary workers). -
Grants awarded (€10.6M), up by €1.8M or 20%.
Grants are awarded by MdM to: • local institutional or civil society actors taking over our programmes in accordance with our mission statement: €6.9M in 2017 • members of our international network to help them set up field or advocacy programmes and develop their fundraising: €3.7M in 2017. This amount includes exceptional support granted to MdM UK to help it overcome financial difficulties. Other expenses (€0.4M), down by €0.8M or 68%. In 2016, this item included particularly high losses recorded against debts or litigation linked to our operations abroad. Provisions (€1.2M), down by €0.8M, or 39%. The main provisions made over the financial year were for liabilities linked to our international operations and the annual adjustment to the provision for retirement benefits.
1.2 Financial result
The latter showed a €0.1M loss for the financial year, due to the foreign exchange result on income related to institutional grants received in foreign currencies. For the record, our investment policy prefers money-market investments (deposits or short-term accounts, Sicav/FCP), which represent some of the most secure assets on the market. Combined with the fact that our average cash flow this year was lower than last year, this explains the decrease in the income of the investments.
1.3 Extraordinary profit, corporate tax (IS) and changes in dedicated funds: The extraordinary profit (-€0.09M) requires no particular comment. The income from a number of our investments are concerned by the corporate tax, at the reduced rate. The change in dedicated funds (unused resources carried forward/outstanding commitments), was mainly due to the transfer to 2017 of the use of funds (+€0.4M) received for Nepal and for the programmes in France.
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2.
BALANCE SHEET
ASSETS (In thousand €) Fixed assets Stocks Claims Cash Prepaid charges TOTAL
Brut 21 107 308 50 607 28 435 678 101 135
2017 Deprec+Amort Net 15 620 5 487 308 6 50 601 28 435 678 15 626 85 509
2016 Net 5 765 301 28 183 24 801 647 59 697
LIABILITIES
2017
Equity Provisions for liabilities and charges Dedicated funds Debts Deferred income TOTAL
18 141 2 667 514 16 221 47 966 85 509
2016 17 147 2 489 937 17 817 21 307 59 697
The balance sheet total (€85.5M, i.e. +€25.8M compared to 2016) is affected by the strong increase of donors’ claims (+€23.1M on asset) and from deferred incomes connected to grants (+€26.8M on liabilities). The number of new donor’s contracts is increasing significantly indeed from one year to the next. For the record, agreements with donors are recorded as debts as soon as the agreement is signed, whatever the time period covered; and the deferred income represents the portion of the grant concerning future financial years. The fixed assets are stable at €5.5M. No major investment was carried out in 2017. The main purchases concern the renewal of some vehicles on the field and of some computer equipment. The liquid assets increase by €3.6M from one year to the next and reach €28.4M in 2017 as we indeed received substantial advances from donors in December 2017. Our own funds increase by the surplus amount recorded on the financial year. On 31/12/2017, they were of €18.1M, which is 2.19 months of operation. The debts item decreases by €1.6M to stand at €16.2M. The contraction of the Legacies in progress by €1M, the payment to suppliers which occurred before 31/12/2017 this year, and the tax credit related to the payroll tax, are all reasons of this decline.
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3.
INCOME AND EXPENDITURE STATEMENT
Method for the calculation of ratios3
3.1
Expenditure
In 2017, the growth in our social programmes (+4.9% compared with 2016, i.e. +€4M) goes with our fundraising costs decrease (despite higher investments in 2017) as well as the operating costs stabilisation. Social Programmes represented 82.7% of total expenditure, a slight improvement on last year’s ratio. 3
Ratios are calculated on the basis of the Annual Income and Expenditure Statement, excluding charges to provisions and outstanding commitments from earmarked funds. Their calculation is based on the line, ‘Total 1’, of the Income and Expenditure Statement (the line headed ‘Total expenditure for the financial year recorded in the Income Statement’). 45
MĂŠdecins du Monde 2017 Financial Report
3.1.1 Social programmes FRENCH AND INTERNATIONAL PROGRAMMES
The distribution between French social programs and international social programs is stable. The French programmes are stable in value so their weight in the whole slightly diminishes (-1%).
A distribution by domain that shows our strategic orientations:
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Two major points: 1) The weight of emergencies and crises increases from one year to the next (crisis in Syria and Irak, Yemen, Nigeria, Rohingyas in Bangladesh…) 2) The weight of national and regional bases grows significantly: Several elements impact this ratio. First, and though in many cases the line between direct action and coordination is hard to define, we have isolated bases and operations more systematically. Next, the complexity of the programmes led us to create important bases in Yemen, Djibouti and Nigeria. At last, our will to be as close as possible to the field resulted in the establishment of a regional coordinating centre in Amman, which manages the countries involved in the Syrian and Iraqi crises.
FRENCH PROGRAMMES
Distribution by domain: Social programmes in France (K€) Healthcare, advice and referral clinic Other programmes Witness-bearing programmes
Coordination and management of French programmes Total
2016 4 297 3 126 647 3 527 11 597
2017 3 493 3 603 782 3 774 11 652
2017 Key events : Healthcare, advice and referral clinic (CASO): In 2017 we continued the reorientation of the activities of our CASO towards out of clinics programmes, in particular those concerning Unaccompanied Foreign Minors and Shantytowns. Our programme in Calais was drastically reduced following the evacuation of the shantytown by the end of 2016 (-€0.5M).
Other programmes: One of our first objectives remains to have non-state law actors or other associations, continuing the innovative approaches which we have developed, and which have shown their effectiveness. Year 2017 has thus seen the culmination of a project run by Médecins du Monde for ten years: education in injection-related risks towards drug users. This approach, which has proved successful, notably in reducing the risks of transmission of the Hepatitis C virus, is now enshrined in health legislation and will be put into routine clinical practice; therefore, the programme has been stopped. In the same spirit, the programme on Prostitution in Nantes was transferred to the Paloma association in June 2017. We continue to develop programmes aimed at addressing inequalities in rural areas, based on a health mediation approach which enables to accompany people who face difficulties in accessing care and rights, and to create a link with health professionals and social actors (programme in Auvergne and in 47
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Occitanie) and we are initiating a project concerning an alternative to incarceration in Marseille, which is innovative in both its form and its financing. Geographical distribution*:
*The amounts correspond to the expenditure, coordination and witness-bearing programmes excluded.
INTERNATIONAL PROGRAMMES
Social programmes in thousands of € Africa Latin America Asia Eastern Europe Middle East/Maghreb Regionally-Managed international programmes Exploratory Programmes Cross-sector programmes Opération Smile Adoption Expansion of International Network Witness-bearing Programmes Programme Coordination and Management
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2 016 16 502 3 703 6 510 3 228 20 904 39 65 937 378 437 2 882 1 942 7 569 65 096
2 017 14 349 4 530 6 032 3 658 24 960 75 1 121 421 467 3 284 2 699 7 212 68 808
MĂŠdecins du Monde 2017 Financial Report
2017 KEY EVENTS The strategic priority choices of MĂŠdecins du Monde are focusing on crises and emergencies, migration, sexual and reproductive health, harm reduction and the link between health and harmful environment. In 2017, the organisation continued and developed its interventions in countries affected by the Syrian and Iraqi crises, significantly increased its actions in Yemen and Nigeria and opened a programme in link with the mass displacement of the Rohingyas population to Bangladesh. Throughout the year, the issue of migration kept on strongly impacting our activities, whether in Europe, North Africa or Central America. The reception and solidarity crisis observed on our continent has led us to extend our operations on the Balkans route, notably in Bulgaria and Serbia. The sexual and reproductive health programmes are still focusing around 3 main objectives- the continuum of care, the fight against unwanted pregnancies and against gender-based violencewhich enable us to observe tangible progress on our various fields of intervention. Our pilot programmes for harm reduction continue in Myanmar, Georgia, Vietnam, Kenya, Ivory Coast and Tanzania. MĂŠdecins du Monde enjoys international recognition in this field and has the capacity to influence some health policies related to harm reduction (upon the WHO or the health ministries of the countries where we operate).
Geographical distribution per unit*:
*(regionally-managed, exploratory, cross-sector, headquarters coordination programmes excluded)
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international
network,
witness-bearing and
Médecins du Monde 2017 Financial Report
Geographical distribution per continent: FOCUS ON AFRICA Expenditure in 2016: Expenditure in 2017:
€16.5M €14.3M
2017 Key events 2017 main events are: • Burkina Faso: the reorientation of programmes in the Djibo region • Ivory Coast: the end of the primary healthcare programme in San Pedro, partially compensated by a new programme in sexual and reproductive health and the rise in a harm reduction programme in Abidjan • Nigeria: the rise in an emergency programme in the north For the record, the programmes in Mali and Liberia were closed in 2016.
Financial weight per country in € 2 500 000
2 000 000
1 500 000
1 000 000
500 000
0 2016
2017
Angola
2016
2017
2016
Burkina Faso
2017
Ivory Coast
2016
2017
2016
Ethiopia
2017
2016
Kenya Somalia
2017
2016
Liberia
2017
2016
Madagascar
2017
Mali
2 500 000
2 000 000
² 1 500 000
1 000 000
500 000
0 2016
2017
Niger
2016
2017
Ouganda
2016
2017
2016
DRC
2017
Tanzania
50
2016
2017
Chad
2016
2017
CAR
2016
2017
Nigeria Emergencies
Médecins du Monde 2017 Financial Report
FOCUS ON EUROPE Expenditure in 2016: €3.2M Expenditure in 2017: €3.7M 2017 Key events 2017 main events are: • Bulgaria and Serbia: development of the migrants programmes • Migrants in the Mediterranean region: the end of the migrants DG Santé programme and of the consortium in Greece with the chapters of our international network • Ukraine: transfer of the programme to MDM UK • Russia: the rise in the sex workers programme in Moscow • Serbia: +€0.15M
Financial weight per country in €
1 800 000
1 600 000 1 400 000 1 200 000 1 000 000
800 000 600 000 400 000 200 000 0
2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 Bulgaria
Georgia
Moldova
Russia
*Italia, Greece and transcontinental programme
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Serbia
Balkans
Ukraine Med emergencies Migrants*
Médecins du Monde 2017 Financial Report
FOCUS ON ASIA Expenditure in 2016: €6.5M Expenditure in 2017: €6 M
2017 Key events 2017 main events are: • • • •
Sri Lanka: the rise in the programme started in 2016 Nepal: the end of the emergency programme Myanmar: the closed programme in Pyapon at the end of the year Bangladesh: the start of the emergency programme for the Rohingyas refugees
Financial weight per country in €
3000 000
2500 000
2000 000
1500 000
1000 000
500 000
-
2016
2017
Sri Lanka
2016
2017
Nepal
2016
2017
Pakistan
52
2016
2017
Philippines
2016
2017
Myanmar
2016
2017
Vietnam
2016
2017
Bangladesh Emergencies
Médecins du Monde 2017 Financial Report
FOCUS ON LATIN AMERICA AND THE CARIBBEAN Expenditure in 2016: €3.7M Expenditure in 2017: €4.5M
2017 Key events 2017 main events are: • Haiti: expenditure increase due to Matthews hurricane • Mexico: operations following the earthquake • Peru: the closing of the country
Financial weight per country in €
3500 000 3000 000 2500 000 2000 000
1500 000 1000 000 500 000 2016
2017
Colombia
2016
2017
Haiti
2016
2017
Mexico
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2016
2017
Peru
Médecins du Monde 2017 Financial Report
FOCUS ON THE MIDDLE EAST / MAGHREB Expenditure in 2016: €20.9M Expenditure in 2017: €25 M
2017 Key events 2017 main events are: • Palestine: a decrease in activities • The increase in activities in the countries marked by the Syrian and Iraqi crises • Yemen: the rise in the operations in the area (conflict and cholera)
Financial weight per country in €
16000 000 14000 000 12000 000 10000 000 8000 000 6000 000
4000 000 2000 000 2016
2017
Algeria
2016
2017
Egypt
2016
2017
Palestine
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2016
2017
Yemen Emergencies
2016
2017
Irak Emergencies
2016
2017
Syrian Crisis
Médecins du Monde 2017 Financial Report
3.1.2 Fundraising costs In the course of the financial year, fundraising costs stabilise at 12.4% of total expenditure (12.5% in 2016). They increase slightly in terms of their value +€0.4M (+3.6%): additional investments focused on fundraising in France and notably the search for direct debits.
3.1.3 Operating expenses The weight of the operating expenses is stable in 2017: 4.9% of the total expenditure (+€0.2M).
3.2.
Funding sources
Our funding has already been analysed in an earlier part of this report. It should, however, be emphasised that we strive to maintain a balance between public-sector and private funding. Despite the strong growth shown by public-sector grants (+€3M) due to the expansion of our programmes, they accounted for 47.5% of our total revenue which represents less than 50% of our total revenue.
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MĂŠdecins du Monde 2017 Financial Report
Part 3: Special Report on Regulated Agreements
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Part 4: 2018 Budget
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Expenditure
2018 Budget Income
Social Programmes Activities carried out in France Activities carried out abroad Fundraising costs Costs of appeals to public generosity Costs of fundraising from other private sources Costs related to applications for grants and other public sector funding Running costs Total
96 280 345 Funds raised from the general public 11 616 138 Donations 84 664 207 Legacies, other gratuities 13 558 993 Other revenue from appeals to public generosity 12 843 721 Sponsorship 438 580 Other private funds 276 692 Grants and other public sector funding 0 Other revenue 5 138 434 Deficit for the financial year 114 977 772 Total
2018 Budget 48 570 947 40 701 915 5 766 032 2 103 000 0 3 324 102 62 664 428 218 700 199 595 114 977 772
Comments on the 2018 budget The 2018 budget was approved by the Board of Directors on 16 December 2017. It is presented in the form of an Income and Expenditure Statement and describes the activities of our Association (‘Expenditure’), and the income used to fund these activities (‘Income’). Provisions for contingencies concerning not obtained grants are included in the expenditures. It has been prepared using a participatory, structuring process, i.e. a framework memorandum on policy and budgetary orientation (July), Joint Strategic Committees (September), and Joint Budgetary Committees (November). The budget was built on 3 years i.e. 2017, 2018 and 2019. Only the 2018 budget was approved during the 2018 held General Assembly. The 2 other years will be updated further on. The Board of Directors decided to put a balanced budget to the vote at the General Assembly (after taking into account the reserve created for association project during the 2015,2016 and 2017 General Assemblies). This budget answers the Board of Directors priority requests: •
Associative life promotion
•
Implementation of the human project
•
Decentralization management implementation concerning actions led in France and internationally
•
Continuation of the operational dynamic
•
Creation support and implementation of the International network roadmap
•
Strengthening of the efficiency of the organisation and Information system master scheme implementation
It also shows the start of various projects, among which: •
The implementation of an internal audit department and of an independent audit committee, which will enable us to respond to the demands and recommendations of the donors more effectively. 62
Médecins du Monde 2017 Financial Report
•
The revision of the modalities for establishing the Income and Expenditure Statement in order to inform our donors better, while in link with the evolution of this financial annexe on which the Accounting Rules Authority is currently working.
•
The redefinition of the financial processes aimed at implementing a new ERP.
2018 budget expenditure The growth in our activities continues in 2018, with our overall volume of expenditure (€115M) increasing by €18M compared with the actual figures for 2017. This growth reflects the expansion of our social programmes especially abroad and in particular of our emergency programmes (Syrian crisis, Bangladesh …). Social programmes The total volume of social programmes shown in the 2018 budget is therefore €96M, an increase of €16M compared with the actual figures for 2017 (€80M). The ratio of social programmes to total expenditure works out at 83.7%, compared with 82.7% in 2017 (actual figures). International programmes are showing significant growth, and their financial volume for 2017 is set at € 84.7M, compared with €68.8 M in 2017 (+23%). The French sector stabilises at €11.6M in 2018, same level as in 2017. Fundraising costs Fundraising costs go from €12M in 2017 (actual figures) to €13.6M in the 2018 budget. This reflects the strong will to enlarge the donors’ database. Even though their actual value has increased, fundraising costs decrease proportionally: 11.8% of 2018 vs 12.4% 2017 actual figures.
Operating costs Operating costs have slightly risen (to €5.1M in the 2018 budget, compared with actual figures of €4.8M in 2017). Their impact on expenditure in 2018 is slightly decreasing to 4.5%, compared with 4.9% in 2017 (actual figures).
2018 budget income Revenue from the general public are increasing by 7% (€48.6M in the 2018 budget compared with actual figures of €45.5M in 2017), thanks to the estimated increase in donations and legacies. Public-sector grants continue to show strong growth in 2018, amounting to €62.7M in the 2018 Budget (compared with €46.5M in 2017). In the 2018 budget, they represent 54.5% of total income, while total private funds and funds from public giving account for 45.5%.
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Médecins du Monde 2017 Financial Report
2018 budget conclusion This 2018 budget, balanced after taking into account the reserve created for innovative projects during the 2015, 2016 and 2017 General Assembly, reflects the Organisation’s strategy and its desire to: •
Keep on developing its social programmes in France and abroad, in a world marked by multiple crises and growing needs, whilst adapting its programmes in accordance with the strategic plan’s areas.
•
Pursue the funding diversification in order to guarantee the financial independence
•
Maintain its own funds and secure financial solidity in relation to the scope of its global growth.
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