Financial report of Médecins du Monde - 2018 edition by Médecins du Monde

MÃ&#x2030;DECINS DU MONDE

FINANCIAL RAPPORT 2018 EDITION

Médecins du Monde 2018 Financial Report

A WORD FROM OUR TREASURERS We live in a rapidly-changing world, where crises abound, constantly evolving and moving. In such a world, identifying needs, prioritising them, and choosing where to intervene according to our resources is a challenge that our organisation must meet every day. Choosing sometimes means saying no. It is hard and it sometimes causes disagreements. Yet, it is in this world that we often have little control over, in which we nonetheless strive for humanity. We want to stay loyal to our ideals and to our social mandate, and, above all, to take action alongside, and on behalf of, women and men in vulnerable situations. In this open-ended world, we share resources with our sister organisations, the other Médecins du Monde chapters, and with our partners on the field in France and abroad, in our quest for greater equality, respect for otherness, and better results. In this world where one disaster often follows on another, we are bound by financial commitments we have made in the past and by those we are making today. Our duty to react cannot exist outside of these commitments. In this complex world, saying “just do it” no longer makes sense. We have to raise the bar on the quality of our missions.

And to do that, we need support. We must invest financially in geopolitical research and projects, in anthropology, in public health, in sexual and reproductive health, in mental health, in harm reduction, and in drug policies. We must better assess our medical and advocacy practices, the impacts of our activities, and beneficiaries’ access to healthcare and health systems, while strengthening their capacity to take action. We must achieve gender equality and social justice. We also need tools, including the computer tools that are necessary for doing our jobs properly and for meeting the requirements of our donors and our funding bodies.

In this social world we live in, we must be attentive to how we organise and pay workers. One way we did so this year – at a certain cost to us – was in our occupation classification and overhaul of our pay grid for our employees under French contracts. In this world that we dream of, we must have the pragmatism to know how to spend only as much as we take in through public donations, public- and private-sector grants, contributions, etc. Each of us has this “nodal point” in mind. What is important is to make decisions and share responsibility for the decisions we make together. Sharing is a conception of power in which our strategies and our spending are formed through mutual adjustment, in which regional offices, the France group, geopolitical and thematic groups, volunteers and employees formulate their visions through various prisms that must make sense and be practical. To meet these challenges, all of us – volunteers and employees, in France and worldwide – must keep our eye on the ball; we must build together and accomplish things fairly. Living within our means is the only way to stay true to our mission statement. So is seeing things from the other person’s point of view and coming to terms with a world that is near, that is far away, and that is in constant flux. What we accomplished in 2018, we did so in this challenging and gratifying world. We had our triumphs and our setbacks, but we know that, together, we will accomplish more and perform better by responsibly facing the reality of our resources. 1

Médecins du Monde 2018 Financial Report

KEY EVENTS OF THE 2018 FINANCIAL YEAR Six figures: -

Total resources (Income Statement): -0.5% Donations collected in France (Income Statement): +1.5% Funding from public and private donors: -2.9% Programmes in France (Income and Expenditure Statement, previous method): +6% International social programmes (Income and Expenditure Statement, previous method): -3.8% Result: +€372K

Activity in 2018 was at the same level as in the previous financial year. After peaking during the 2017 Syrian crisis, we plateaued at an overall budget of more than €99m. Each major crisis that MdM has responded to (the tsunami, Kosovo, earthquakes in Armenia and Nepal, etc.) has generated a steep increase in our budget and was followed by more challenging years during which we have had to resize our missions. Between redeploying our resources and staff and seeking new operating missions, it has been a real feat to undertake reform on a constant perimeter and to finish the year with a surplus. We have managed to do so, for the fourth consecutive year, and this has enhanced our credibility with our institutional partners. Unfortunately, funding bodies are not always as forthcoming as we would like. Obtaining funds from them for our programmes, especially in France, is becoming difficult and requires us to rely more and more on public donations to maintain and develop those programmes. And in 2018 we were able to continue to rely on the support of our donors and testators, as seen in the increase in funds raised in France, which was all the more remarkable as donations in general fell by 4.2% in France.

Let’s build 2019! Let’s adjust and do better. Upgrading our information systems, both in terms of hardware and software, is absolutely necessary in meeting our quality standards. Expectations in the field, management imperatives, and donor requests must all be addressed, and thrifty, highperformance solutions must be found. We will have to invest. We are counting on these investments to keep expenses made by headquarters in proportion with programme expenditure. This is a red line we must keep our eyes on. Achieving added value is a challenge. We must keep operating expenses in proportion with our resources and our missions. We must be thrifty and better steer our resources towards the productivity of our programmes. The “programme factory” is a key issue. Let’s grow and get better! All together! Let’s take a new look at our economic model! Let’s reaffirm our shared mission statement! Let’s question our representations! Let’s rethink our professional interfaces! Let’s remember to prioritise! 2

Médecins du Monde 2018 Financial Report

This is no simple matter, but we must rise up to this challenge. We must answer the questions “how to move forward together?” and “how to participate?” while dealing with various statutes, complementary know-how, and faraway places, and while collectively bringing about this real-world utopia of Médecins du Monde. As the Belgian singer Jacques Brel once said, “let’s try, without force or armour, to reach the unattainable star”.

Bernard Juan Joël Le Corre

Médecins du Monde 2018 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 2018 The Statutory Auditor’s Report 2018 Balance Sheet 2018 Income Statement 2018 Notes to the annual accounts 2018 Annual Income and Expenditure Statement: funds raised from the general public

➢ ➢ ➢ ➢ ➢

Part 2: Analysis of the 2018 Accounts

Part 3: Special Report on Regulated Agreements

Part 4: 2019 Budget

Annexes: Financial Statements in USD ➢ 2018 Balance Sheet ➢ 2018 Income Statement ➢ 2018 Annual Income and Expenditure Statement

Médecins du Monde 2018 Financial Report

Part 1 The Statutory Auditor’s Report on Médecins du Monde’s Annual Accounts for the financial year ended on the 31st of December 2018

MĂŠdecins du Monde 2018 Financial Report

Médecins du Monde 2018 Financial Report

2018 BALANCE SHEET (in Euros)

ASSETS

DEPREC + NET 2018 AMORT

GROSS

FIXED ASSETS Intangibles Licenses, patents etc. Advances and downpayments

1 129 521 0

998 536 0

130 986 0

Net 2017

LIABILITIES

2018

EQUITY Statutory funds 148 894 Gratuities/Bequests 0 General intervention reserve Associative project reserve

15 245 0 17 667 953 432 615

15 245 0 16 613 073 494 352

24 745 0 18 140 558

24 745 0 17 147 415

371 658

993 143

18 512 216

18 140 558

2 989 354

2 666 592

119 780

514 430

85 717 3 631 749 4 953 770 57 342 10 050 077

80 127 3 475 651 4 601 669 18 435 8 045 310

53 789 738

47 965 849

TOTAL II

72 568 393

64 187 041

TOTAL III

0 94 189 743

0 85 508 621

Tangible assets

1 206 101 7 711 527 9 952 707 0

Land Buildings Other fixed assets Fixed assets in progress

0 1 206 101 5 962 524 1 749 002 9 259 469 693 238 0 0

Balance brought forward Capital grant 1 206 101 Surplus allocated to investments 1 855 117 783 331 0 (-) DEFICIT or (+) SURPLUS

Subtotal

Investments

TOTAL I 20 962 800 460 790 303 TOTAL I 21 611 581

Other long-term securities Loans Other investments

0 20 962 0 800 460 0 790 303 16 220 529 5 391 052

CURRENT ASSETS 305 221 55 556 232 0 27 872 210

0 305 221 5 743 55 550 490 0 0 0 27 872 210

5 070 770

0 5 070 770

TOTAL II 88 804 434

5 743 88 798 691

Stocks of medicines & med. Equipmt. Other receivables Securities Cash ADJUSTMENT ACCOUNTS Prepaid charges

2017

20 962 PROV. for liabilities and Charges 718 324 753 992 DEDICATED FUNDS 5 486 721

CURRENT LIABILITIES Bank borrowings (1) 307 666 Supplier accounts payable & rel. acnts 50 601 580 Tax and social liabilities 0 Fixed asset liabilities & related acnts 28 434 750 Other liabilities ADJUSTMENT ACCOUNTS 677 904 Deferred income 80 021 900

Deferred charges 0

0 0 0 TOTAL IV 110 416 015 16 226 272 94 189 743 TOTAL ASSETS

0 85 508 621

TOTAL III Translation adjustments

Translation adjustments

- Received commitments, net bequests to be processed : € 6 599 358

TOTAL LIABILITIES (1) Including bank overdraft : € 85 717

MĂŠdecins du Monde 2018 Financial Report

2018 INCOME STATEMENT (in Euros) 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 31/12/18 46 103 663 3 096 584 2 472 302 0 38 810 049 5 244 240 0 41 910 9 625 4 840 307 600 1 603 852 97 694 664

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 98 014 769

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 31/12/18 9 385 809 29 602 29 900 337 3 090 820 34 348 754 8 972 756 0 614 228 0 1 477 257 8 665 024

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

603 950

369 338

97 088 535

97 204 944

606 130

809 826

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 31/12/18

Financial expenses Amortization and depreciation Interest and similar expenses Foreign exchange losses Net expenses on disposal of securities investment TOTAL IV : Financial expenses

On 31/12/18 795 562 651 1 195 346 0 1 991 559

On 31/12/17 354 657 102 1 173 790 89 1 528 638

-584 701

-138 454

2 - Financial income/loss (TOTAL III) - (TOTAL IV)

On 31/12/17

Extraordinary income On management operations On capital transactions Reversals of provisions TOTAL V : Extraordinary income

On 31/12/18

Extraordinary expenses On management operations On capital transactions Amortization and depreciation

On 31/12/18 On 31/12/17 37 374 39 815 1 373 67 541 0 0

TOTAL VI : Extraordinary expenses

On 31/12/17 1 000 17 873 1 780 20 653

38 747

107 357

-33 614

-86 704

10 807

13 451

486 544

678 752

91 893

256 826

TOTAL INCOME (I + III + V+ VIII)

99 593 199

100 104 358

TOTAL EXPENSES (II + IV + VI + VII + IX)

99 221 541

99 111 215

371 658

993 143

6 744 156

6 130 090

3 - Extraordinary items (TOTAL V) - (TOTAL VI)

TOTAL VII : Corporate income tax

TOTAL VIII : balance carried forward from previous year TOTAL IX : Commitments of expenditures to be relised on earmarked funds

(-) DEFICIT or (+) SURPLUS 0 31 625 970 834 Benefits in kind 32 387 694 1 390 184

0 32 068 1 025 818 0 348 972 1 406 858

0 5 133 0 5 133

Médecins du Monde 2018 Financial Report

1. 2. 3. 4.

KEY EVENTS IN THE FINANCIAL YEAR CHANGES IN PRESENTATION, VALUATION OR ACCOUNTING METHODS ASSOCIATIVE PROJECTS ACCOUNTING RULES AND METHODS 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 -

Basic accounting principles Fixed assets and depreciations Stock and stock depreciation Claims Debts Cash investments Bank accounts and cash funds in foreign currencies Grant funding- International programmes Subsidies and investment grants- French programmes Earmarked funds from grants, donations and legacies Associative projects Provisions for liabilities and charges Legacies and other donations Benefits in kind Other information

TANGIBLE AND INTANGIBLE FIXED ASSETS 5.1 5.2 5.3 -

6. 7. 8. 9. 10.

Fixed assets movements table Depreciation table Net book values table

FINANCIAL FIXED ASSETS STOCK STATEMENT OF END-OF-YEAR CLAIMS ACCRUED INCOME LIQUID ASSETS 10.1 - Marketable values 10.2 - Banks and cash funds

11. 12. 13. 14. 15. 16. 17. 18. 19.

PREPAID COSTS ORGANISATION’S OWN FUNDS TABLE OF PROVISIONS EARMARKED FUNDS STATEMENT OF END-OF-YEAR DEBTS TABLE OF LEGACIES AND DONATIONS IN PROGRESS ACCRUED LIABILITIES DEFERRED INCOME OFF-BALANCE-SHEET COMMITMENTS 19.1 - Commitments received 19.2 - Given commitments

20. EMPLOYEE STATISTICS 21. OPERATING EXPENSES: DETAILS 22. INCOME AND EXPENDITURE STATEMENT 22.1 22.2 22.3 22.4 22.5

Expenditure Income Fixed assets funded by funds raised from the public Allocation of funds raised from the public Benefits in kind

These Annual Accounts were approved by the Board of Directors at their meeting on the 26th of April 2019.

Médecins du Monde 2018 Financial Report

KEY EVENTS IN THE FINANCIAL YEAR

The 2018 financial year ended with a slight surplus (+€0.4m, vs. +€1m in 2017). After several years of solid growth, activity levelled off, and the proportion of social programmes in total expenditure slipped to 81.1% from 82.7% in 2017 (when rebased to the same accounting rules). The increase in our activities in France and other regions (Bangladesh and Africa, in particular) did not fully offset the shutdown of our missions in the Balkans or the scaling down of our programmes in Haiti (with the end of the Hurricane Matthew emergency), Iraq and Syria (the change of political situation in Syria hindered the support from civil society actors from Jordan and we shifted our support to north-western Syria, in the Afrin region, via MdM-Turkey). The international network continues to structure itself and to develop. Members of the network have been funding several MdM-France programmes for years. In exchange, and for the first time this year, MdM-France contracted funding on behalf of members of the MdM community (e.g., a contract signed by MdM-France with a Canadian funding body is funding MdM Belgium’s programmes in the Democratic Republic of Congo). 2018 also featured the final stages of the occupation classification. Accordingly, we developed a new pay grid applicable to all staff members on French contracts, effective 1 July 2018. This generated €0.5m in additional payroll costs during the financial year. Provisions for currency losses were higher than in the previous year, due to exchange rates as of 31 December. This affected our financial result (-€0.4m vs. the previous year). On the bright side, Médecins du Monde was hit less than some other organisations by the decline in donations in France. In fact, it actually raised 1.5% more funds in France compared to 2017. Lastly, there were changes among Médecins du Monde’s executive bodies during the financial year: Philippe de Botton, Bernard Juan and Joël le Corre were elected, respectively, President, Treasurer and Assistant Treasurer. Fanny MartinBorn and Marina Benedik were appointed, respectively, Head of Human Resources and Head of International Operations. Change in mission perimeters in 2018: ➢ Opened programmes or reorientations: • • • •

France: Guyana, Ile de France: new Tous en marche and Jasmine programmes Latin America: Venezuela Africa: Uganda, Nigeria, Côte d'Ivoire Middle East: Gaza response, southern Yemen

➢ Closed programmes: • • • •

France: Squats in Ile de France and transfer of Parrainage programme Africa: Chad, Niger Europe: Serbia, Bulgaria (migrants) Middle East: Jordan

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 and continued in 2018. 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).

CHANGES IN PRESENTATION, VALUATION OR ACCOUNTING METHODS

To enhance the presentation of our Income and Expenditure Statement and to better reflect the reality of our uses of funds, we have modified its presentation and valuation methods.

Médecins du Monde 2018 Financial Report

The allocative keys, which were defined in 2009, have been adjusted to Médecins du Monde’s current organisational set-up; they are no longer based on fixed percentages but, rather, on relative weight criteria, which keeps them from being obsolete.

Social programmes: • The breakdown between Programmes in France and International Programmes has been reviewed. • Payments made to other organisations have been specified.

The rule for financing fixed assets has been detailed.

The methods for allocating resources to funded uses have been modified.

These adjustments, which were approved by the Board of Directors on 22 February 2019 and which are detailed in section 22, impact the amounts in absolute value terms of the various categories of expenditure and result in changes in ratios as seen below: 2018 expenditure (absolute value) Social programmes Fundraising costs Operating costs 2018 ratios Social programmes Fundraising costs Operating costs

estimated based on the previous method €78,559,062 €12,909,471 €5,388,296 estimated based on the previous method 81.1% 13.3% 5.6%

based on the new method €79,290,810 €14,214,327 €3.351.692 based on the new method 81.9% 14.7% 3.4%

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. The expenses recorded in 2018 against the associative project “Adaptation of premises”, included in the surplus of € 371 658, amounted to € 11 936 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 € 383 594 instead of € 371 658 (€371 658 + € 11 936). Nota bene: the Board of Directors proposed to the 2019 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 2018, no expense is to be allocated to this reserve for this financial year.

ACCOUNTING RULES AND METHODS

The financial year extended over 12 months, from the 1st January to the 31 December 2018. The accounts are drawn up in euros. On the 31 December 2018, the Balance Sheet showed a total of 94 189 743 euros, while the Income Statement, presented in the form of a table, showed a surplus of 371 658 euros (before cost allocation on the reserve account for associative projects).

Médecins du Monde 2018 Financial Report

4.1. BASIC ACCOUNTING PRINCIPLES The accounts have been drawn up -

in accordance with basic accounting conventions, and the following principles in particular: ✓ The principle of prudence; ✓ Consistency of accounting methodology from one financial year to the next; ✓ Continuity of operations; ✓ Non-compensation; ✓ Independent financial years.

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:

Land Building Total

Net Value (€) On 31 december 2018 1 206 101 1 352 670 2 558 771

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’.

Médecins du Monde 2018 Financial Report

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 31/12/2018, the net book value of our Marcadet building was € 1.35M for the building itself, and €1.21M for the land, which is not depreciable. In March 2016, an expert valued the Marcadet building and land at €18 400K. Since then, within the context of a potential move of our headquarters several purchase offers have valued the building at a much higher value (the last offer was received in 2019). 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 31/12/2018, these amounted to €0.02M. 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 31/12/2018, these totalled €0.8M. Other financial fixed assets: this heading corresponds to advances, deposits and guarantees paid to third parties in France and abroad. On 31/12/2018, these came to €0.79M.

Provision for depreciation on fixed assets: No provision for depreciation on fixed assets was recorded on the 31/12/2018.

Médecins du Monde 2018 Financial Report

4.3. STOCK AND STOCK DEPRECIATION Stock consists mainly of medical and surgical equipment, medicines, emergency kits, vehicles and communications equipment. Stock is entered in the accounts at its acquisition cost, and valued using the ‘first in, first out’ (FIFO) costing method. Depreciation is recorded if the actual value is lower than the entry value at the close of the financial year.

4.4. CLAIMS These are valued at their nominal value. Depreciation is recorded whenever their balance-sheet value is lower than their nominal value. Claims in foreign currency are 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 31/12/2018, 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 31/12/2018, trigger the creation of a provision for foreign exchange losses.

4.6. CASH INVESTMENTS Marketable securities are entered in the accounts at their acquisition cost and valued using the FIFO method. Depreciation is recorded whenever the balance-sheet value is lower than the acquisition cost. Investments earning interest (term deposits and passbook accounts) are entered in the accounts at their nominal value. Any accrued interest is entered in the accounts.

4.7. BANK ACCOUNTS AND CASH FUNDS IN FOREIGN CURRENCIES Bank accounts and cash funds in foreign currencies are converted into euros at the rate for the 31 December of each year.

4.8. GRANT FUNDING – INTERNATIONAL PROGRAMMES a. Once an agreement has been signed with a funding agency (public-sector or private), the total amount of the contractual grant is entered against the account of the third-party funding agency, under the balance-sheet heading ‘Other receivables’. b. At the close of the financial year, the Association decides how far the financed project has progressed (by comparing actual expenditure to the expenditure forecast in the funding agreement) and how much of the grant should therefore be recognised in the accounts for that financial year. Any administrative costs covered by the contract are also taken into account.

Médecins du Monde 2018 Financial Report

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.

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.

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 31/12/2018, 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

Médecins du Monde 2018 Financial Report

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 (2015 to 2018) pay increases of 1.91% per annum annual discount rate: 1.57% 2018 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 2018, legacies in progress totalled €2 982 515 and legacies receivable came to €6 599 358. Temporary, usufructuary donations are recorded as off-balance-sheet commitments to the value of the usufruct and its associated fruits, which are recorded as income for the financial year on the basis of the sums received.

4.14. 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. 20

Médecins du Monde 2018 Financial Report

4.14.1 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 2018 came to €1.02M, compared with €0.51M for 2017.

4.14.2 Voluntary work in France: A volunteer is a physical person who works for a not-for-profit organisation without receiving anything whatsoever in return. Since 2014, the work carried out by French volunteers has been centrally recorded using a data-processing tool. Thanks to the information gathered, we now know the identity of each of our volunteers, the kind of work he/she does and the number of hours worked. Assessing the value of voluntary work involves calculating how much those hours would have cost if they had been worked as paid employment. The reference grid used to calculate their value in monetary terms is Médecins du Monde’s pay scale. The cost of employer contributions is included in this calculation. In the course of the financial year 2018, the French volunteers entered on the system worked 204 422 hours and would have cost us approximately €5.6M (€5.26M in 2017) so 112.32 FTE. 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. 4.14.3 International voluntary work: An international voluntary worker is a physical person over the age of eighteen who fulfils the following 3 conditions: 1) Signs a voluntary service contract with a French voluntary organisation promoting international solidarity and recognised by the French Ministry of Foreign Affairs or Ministry for Overseas Development. 2) Under this remit, takes part in an operation promoting international solidarity. 3) Completes one or more missions of general public interest in a country not on a list determined by French government decree (Decree of 02 May 1995). Under the terms of a voluntary work contract, a voluntary worker must receive: training; a regular subsistence allowance and benefits in kind; payment of travel expenses and repatriation; medical and civil liability insurance; Social Security cover; and technical support. 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 2018, international voluntary worker contributions totalled €0.14M.

Médecins du Monde 2018 Financial Report

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 31/12/2018 amounted to €83 656. Administrators’ expenses: In the course of the financial year 2018, the Association’s administrators incurred travel and programme expenses of €100 940, an increase of €35 346 compared to 2017, notably in travel expenses.

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 2018 came to €51 652. 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. € 51 652 in 2018. Events occurring after the close of the financial year: None.

Médecins du Monde 2018 Financial Report

TANGIBLE AND INTANGIBLE FIXED ASSETS 5.1. Fixed assets movements table

INTANGIBLES

(€)

Subcontracted software Licences (software) Subtotal IFA Advances

TOTAL INTANGIBLES TANGIBLE ASSETS

01/01/2018

Acquisitions

Disposals

Fxd asset alloc. In prog. &

31/12/2018

686 539 319 315 1 005 854 -

63 003 60 665 123 668 -

749 542 379 980 1 129 521 -

1 005 854

123 668

1 129 521

01/01/2018

Acquisitions

Disposals

Fxd asset alloc. In prog.

31/12/2018

LAND Land Marcadet land Subtotal

1 754 1 204 347 1 206 101

Buildings Marcadet building Fixtures/fittings & improvements Marcadet Fixtures/fittings & improvements Int. Prog. Subtotal

2 761 874 4 853 100 96 552 7 711 527

BUILDINGS

OTHER TANGIBLE ASSETS Fixtures and fittings Transportation equipment IT equipment Office equipment Office furniture Medical equipment Communication equipment Audiovisual equipment

1 013 676 5 127 037 1 878 262 582 522 517 107 74 223 437 819 59 475 9 690 122 -

41 868 93 317 117 276 19 176 2 905 1 324 579 276 443 -

13 243 615 13 858 -

1 055 544 5 207 111 1 994 923 601 698 520 012 75 547 437 819 60 054 9 952 707 -

TOTAL TANGIBLE ASSETS

18 607 750

276 443

13 858

18 870 335

TOTAL

19 613 604

400 111

13 858

19 999 857

Subtotal Tangible assets in progress

Médecins du Monde 2018 Financial Report

5.2. Depreciation table

INTANGIBLES

(€)

Subcontracted software Licences (software)

Total INTANGIBLES TANGIBLE ASSETS BUILDINGS Building Fixtures & fittings (Bdg)

Amort.

01/01/18

Recovery

31/12/18

542 430 314 530

131 585 9 990

0 0

674 015 324 520

856 960

141 576

998 536

01/01/18

Deprec.

Recovery

31/12/18

1 409 204 4 447 205 5 856 409

0 106 115 106 115

0 0 0

1 409 204 4 553 320 5 962 524

Subtotal

718 788 4 876 955 1 686 871 560 758 508 583 69 894 427 930 57 011 8 906 790

75 380 149 037 121 168 11 362 5 262 1 778 1 800 748 366 536

0 13 243 615 0 0 0 0 0 13 858

794 168 5 012 748 1 807 425 572 120 513 845 71 672 429 730 57 759 9 259 468

Total TANGIBLE ASSETS

14 763 199

472 651

13 858

15 221 992

TOTAL

15 620 159

614 227

13 858

16 220 527

Subtotal

OTHER TANGIBLE ASSETS Fixtures & fittings Transportation equipment IT equipment Office equipment Office furniture Medical equipment Communication equipment Audiovisual equipment

Médecins du Monde 2018 Financial Report

5.3. Net book values table

INTANGIBLE ASSETS (€)

GROSS AMOUNTS ON 31/12/2018

Subcontracted software Licences (software) Advances on intangible assets

TOTAL AMORTISATION ON 31/12/2018

749 542 379 980 0 1 129 521

TOTAL INTANGIBLES

GROSS AMOUNTS ON 31/12/2018

TANGIBLE ASSETS

NET BOOK VALUE ON 31/12/2018

674 015 324 520 0 998 536 TOTAL AMORTISATION ON 31/12/2018

75 526 55 459 0 130 986

NET BOOK VALUE ON 31/12/2018

LAND Land

1 754

1 204 347

1 206 101

Marcadet building

2 761 874

1 409 204

1 352 670

Fixtures/fittings & improvements Marcadet

4 853 100

4 553 320

299 780

Marcadet Land Subtotal… BUILDINGS Building

Fixtures/fittings & improvements Int. Prog.

96 552

7 711 527

5 962 524

1 749 003

Fixtures & fittings

1 055 544

794 168

261 377

Transportation equipment

5 207 111

5 012 748

194 362

IT equipment

Subtotal… OTHER TANGIBLE ASSETS

1 994 923

1 807 425

187 498

Office equipment

601 698

572 120

29 577

Office furniture

520 012

513 845

6 166

75 547

71 672

3 875

437 819

429 730

8 089

60 054

57 759

2 295

9 952 707

9 259 468

693 240

18 870 335

15 221 992

3 648 343

19 999 857

16 220 527

3 779 329

Medical equipment & supplies Communication equipment Audiovisual equipment Subtotal… Tangible assets in progress TOTAL TANGIBLES TOTAL

FINANCIAL FIXED ASSETS

(€)

Other long-term securities Housing construction loans (tax on French employers) Deposits & guarantees Total

31/12/18 20 962 800 460 790 303 1 611 725

Médecins du Monde 2018 Financial Report

STOCK

31/12/18

(€)

End of year amount of stock

305 221

Depreciation of vehicle stock

Net stock amount

305 221

STATEMENT OF END-OF-YEAR CLAIMS

CLAIMS STATEMENT

(€)

1 year maximum

Gross amount

Over 1 year

Relating to fixed assets: Loans (deposits and guarantees)

800 460

41 249

759 211

Other financial fixed assets

790 303

145 000

645 303

1 590 763

186 249

1 404 514

61 746

53 423 522

33 162 747

35 609

139 184

Various debtors

807 568

Accrued income

884 356

Total 1 … Relating to current assets: Account receivables Funding bodies personnel and related accounts Social security bodies State

Legacies in progress

204 247

69 092

135 155

Total 2 …

55 556 232

35 160 303

20 395 930

Total 3 …

5 070 770 5 070 770

2 393 164 2 393 164

2 677 606 2 677 606

62 217 766

37 739 716

24 478 050

Prepaid costs

GRAND TOTAL (1 + 2 + 3) Amount of :

20 260 775

- loans granted during financial year - loan repayments over financial year

Médecins du Monde 2018 Financial Report

ACCRUED INCOME

(€)

OTHER RECEIVABLES

On 31/12/2018

- Discounts, reductions & rebates obtainable and credits receivable

12 086

- Social security bodies - accrued income

139 184

- State - accrued income

- Accrued income * Grants income * other accrued income * International network

884 356 1 611 94 386 788 359

TOTAL ACCRUED INCOME

10.

1 035 626

LIQUID ASSETS 10.1. Marketable values latent Share price latent revaluation revaluation on 31/12/2018 losses gains

Purchase value

INVESTMENTS (€) SICAV or FCP

Term deposit account

14 539 998

Term deposit account interests

TOTAL

14 539 998 10.2. Banks and cash funds GROSS VALUE (€)

On 31/12/2018

Values for collection

4 950 240

Bank balances

22 495 131

Cash in hand

426 839

TOTAL

27 872 210

Médecins du Monde 2018 Financial Report

11.

PREPAID COSTS

PREPAID COSTS (€)

On 31/12/2018

Suppliers' charges billed in advance

5 070 770

TOTAL

5 070 770

(€) 12.

ORGANISATION’S OWN FUNDS

31 December 2017 15 245 0 16 613 074 494 352 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

0 0 1 054 880 0 0 0 0 0 0

0 0 0 61 737 0 0 0 0 0

31 December 2018 15 245 0 17 667 954 432 615 0 0 0 24 745 0

17 147 416

1 054 880

61 737

18 140 559

993 143 0

0 371 658

993 143 0

0 371 658

18 140 559

1 426 538

1 054 880

18 512 216

2017 Surplus 2018 Surplus TOTAL OWN FUNDS

13.

Increase

Reduction

TABLE OF PROVISIONS

Au 01/01/18

PROVISIONS (€) Provisions pour risques et charges Provisions pour litiges Autres provisions pour risques Provisions pour risques liés aux indemnités de départs à la retraite Provisions pour perte de change Sous-total 1 Provisions pour dépréciation Sur immobilisations financières Autres provisions pour dépréciation

Dotation de Reprise de l'exercice provision

Au 31/12/18

257 500 1 434 930

150 000 821 804

977 804

407 500 1 278 930

619 505

507 362

619 505

507 362

354 657 2 666 591

795 562 2 274 728

354 657 1 951 966

795 562 2 989 354 0 5 742

5 742

Sous-total 2

5 742

Total (1+2)

2 672 334

2 274 728

1 951 966

2 995 096

Médecins du Monde 2018 Financial Report

14.

EARMARKED FUNDS

EARMARKED FUNDS (€)

Provisions for outstanding commitments (+)

EFs at start of financial year

Write-backs of EFs

EFs at end of financial year

(-)

(=)

From grants

352 838

13 000

324 952

40 886

AFRICA ASIA EUROPE FRANCE MIDDLE EAST

0 115 718 0 237 120 0

0 0 0 13 000 0

0 115 718 0 209 234 0

0 0 0 40 887 0

161 592

78 894

161 592

78 894

0 0 0 0 161 592

0 0 0 0 78 894

0 0 0 0 161 592

0 0 0 0 78 894

From legacies

FRANCE

514 430

91 894

486 544

119 780

0 115 718 0 237 120 161 592

0 0 0 13 000 78 894

0 115 718 0 209 234 161 592

0 0 0 40 887 78 893

514 430

91 894

486 544

119 780

From donations AFRICA ASIA EUROPE FRANCE MIDDLE EAST

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 31/12/2018

DEBTS STATEMENT (€) Borrowings and similar debts

Over 1 year to 5 years maximum

85 717

Accounts payable and related accounts

3 631 749

Personnel and related accounts

1 724 578

Social security bodies

2 719 742

509 450

57 342

10 050 077

6 956 297

3 093 781

TOTAL DEBTS …

18 778 655 53 789 738

15 684 875 49 319 449

3 093 781 4 470 289

GRAND TOTAL

72 568 393

65 004 323

7 564 070

State taxes Fixed asset debts and related accounts Other debts Deferred income

Borrowings repaid during financial year

Médecins du Monde 2018 Financial Report

16.

TABLE OF LEGACIES AND DONATIONS IN PROGRESS

Ongoing legacies Ongoing legacies and donations on and donations on 31/12/2017 31/12/2018

TOTAL 17.

(€)

2 490 349

2 982 515

ACCRUED LIABILITIES

ACCRUED LIABILITIES (€)

On 31/12/2018

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

18.

0 0

1 028 727 1 028 727

3 612 340 1 682 690 675 809 896 581 357 260

141 302 141 302

4 782 369

DEFERRED INCOME

DEFERRED INCOME (€)

On 31/12/2018

Foreign Grants - Africa - America - Asia - Europe - Middle East - Cross countries

53 498 989 13 010 051 1 034 696 6 480 230 51 953 24 464 002 8 458 057

France Grants

290 749

TOTAL :

53 789 738

Médecins du Monde 2018 Financial Report

19.

OFF-BALANCE-SHEET COMMITMENTS

19.1. 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

Total on 31/12/2018

2 3 437

152 6 599 358

150 6 595 921

19.2. Given Commitments

LEASING COMMITMENTS

Residual Redevances restant à payer purchase Less than a From 1 to 5 Total to be price year years paid 0 0 0 0

Paid royalties

(in euro)

Financial period

Rolling stock

TOTAL…

LEASING COMMITMENTS

Cumulated

(in euro)

Financial year

TOTAL …

none none

EMPLOYEE STATISTICS

MdM workforce as at 31 December 2018: international programs staff national employees

•

international solidarity volunteers

•

116

expatriate employees

•

head office IOD employees

2 140

French sector staff

•

2 016

volunteers (including the 307 voluntary association managers below)

•

108

employees in the field

•

head office employees

Cumulated 0

Security, guarantee, bond Security in rem

1 616

Net value

Other commitments

•

Total on 31/12/2018

1 805

Depreciation charges

Entry Costs

Rolling stock

20.

Médecins du Monde 2018 Financial Report

422

operational support staff •

250 voluntary association managers (directors, regional members, group leaders, heads of projects)

•

172

head office employees

For a total of 4 117 MdM staff

Pay: Average of the 3 highest gross annual salaries: €82 058 Average of the 3 lowest gross annual salaries: €23 951 Average gross annual salary: €38 907 Ratio 3 highest gross annual salaries/3 lowest gross annual salaries: 3.43 The lowest gross annual salary is higher than French minimum wage: + 22.95 % (excluding 13th-month pay). The figures above do not include seniority bonuses.

MĂŠdecins du Monde 2018 Financial Report

21.

OPERATING EXPENSES: DETAILS

Operating expenses (â&#x201A;Ź)

2018

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

2017

2017/2018

29 602 1 128 699 87 770 189 485 105 639 24 586 902 255 5 063 733 929 481 142 485 197 331 15 172 548 304 50 869

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

2% 27% -14% 3% -60% -43% -10% -28% 7% -22% -9% -73% -23% 18%

9 415 410

11 682 844

-19%

8 158 457 -2 374 5 082 317 1 171 726 340 670 56 994 225 743

7 430 767 1 786 5 049 447 1 150 967 360 031 146 633 238 722

10% -233% 1% 2% -5% -61% -5%

15 033 534

14 378 353

128 374 1 527 450 2 506 638 2 343 319 372 933 5 015 336 2 464 059 368 092 140 602

333 517 1 249 366 2 600 968 2 672 638 582 458 5 259 051 2 427 956 328 952 116 976

-62% 22% -4% -12% -36% -5% 1% 12% 20%

Other outside services

14 866 803

15 571 883

-5%

Taxes and similar payments

3 090 820 34 348 754 8 972 756

2 651 702 31 597 877 8 428 874

17% 9% 6%

Personnel costs

43 321 510

40 026 751

603 950 8 665 024

369 338 10 636 947

64% -19%

Other management costs

9 268 974

11 006 285

-16%

Allowances for depreciation

2 091 484

1 887 126

11%

TOTAL

97 088 534

97 204 944

Purchases Subcontracting Leasing charges Rental and rental charges Maintenance and repairs Insurance premiums Studies and research Miscellaneous Outside services Outside staff Local staff Fees Advertising and publications Transportation Trips / Receptions Postage and Telecommunications Bank charges Miscellaneous

Salaries and pay French NI contributions Miscellaneous management costs Grants paid by the association

Médecins du Monde 2018 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 2019, the Board of Directors of Médecins du Monde ruled on the change in methods for presenting and evaluating the Income and Expenditure Statement: -

The breakdown between Programmes in France and International Programmes were reviewed. Payments made to other organisations were specified. The allocative keys, which were defined in 2009, were adjusted to Médecins du Monde’s current organisational setup; they are no longer based on fixed percentages but, rather, on relative weight criteria, which keeps them from being obsolete. The rule for financing fixed assets was detailed. The methods for allocating resources to funded uses were modified.

Two Income and Expenditure Statements for 2018 are therefore presented below – one based on methods used until the end of 2017 and the other with new presentation and evaluation methods.

22.1. EXPENDITURE 22.1.1 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-whether they are carried out on the ground or at headquarters). 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.

Médecins du Monde 2018 Financial Report

Social programmes in France and abroad are now broken down into “Actions undertaken directly” and “Payments to other organisations”. The Board of Directors took the following stances: -

“Actions undertaken directly” include support provided to our implementation partners. There are indeed two possible cases: • In accordance with our mission statement, the purpose of such support is to reinforce the partner’s intervention capacity, so that it is ultimately able to take over our activities. We then support it financially but, more importantly, operationally, in terms of processes, tools, procedures, etc. • Amidst a crisis, MdM must go through local actors even in cases when action is sponsored directly by the organisation.

“Payments to other organisations”, include grants paid by MdM-France outside the framework of a field programme, designed, implemented and supervised directly by the organisation (e.g., unrestricted grants paid to members of the network, financial support to organisations in France, etc.).

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. Changes made in 2018 -

Information and communication expenses had been split between Programmes in France and International Programmes based on a fixed percentage since 2009 (25% France and 75% International). Beginning in 2018, the breakdown is based on the public addressed by the advocacy, information or communication (actions for the French public are assigned to “Actions undertaken in France”, etc.).

A precise assessment was done of certain costs that had previously been considered direct: • • •

Costs of supervising volunteers are set apart from statutory costs; Spending on services working mainly for social programmes, as well as, to a lesser extent, for fundraising and operations are now split among these three types of uses, prorated to their financial weighting, time spent or staff managed (e.g., internal communication, documentation, and career, hiring and training services, etc.); Grants paid to the international network and not earmarked for a precise purpose are allocated by thirds to various categories of uses.

In contrast, costs incurred from the use of premises (e.g., building maintenance, energy, heating, postal and telecom, digital connections, etc.), which previously had simply been considered operating costs, are now prorated to the staff concerned (and, hence, counted under social programmes).

22.1.2 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). Costs of finding other sources of private funding: This heading includes the costs of the Corporate Sponsorship & Partnerships Department; 35

MĂŠdecins du Monde 2018 Financial Report

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].

22.1.3 Operating Costs: Operating costs include the costs of the following services: -

Administrative and legal (not counting missions) Financial Directorate (strictly speaking) and Accounting Department at headquarters Information technology (excluding the share of amortisation broken down on the basis of the principle stated below) General Services Department and headquarters amortisation (share determined on the basis of the principle stated below) Headquarters management controls Human Resources Directorate (strictly speaking) and HR Administration Department (strictly speaking) Service in charge of the organisationâ&#x20AC;&#x2122;s plan for evolution (H25) Legal department (not counting programmes) Financing costs (not counting costs directly attributable to one mission)

22.1.4 Allocative Keys used: At its 22 February 2019 meeting, the Board of Directors approved the use of allocation criteria based on the principles of attribution, in place of the fixed keys that had previously been used and that had become obsolete. These new allocation criteria, which are described below, took effect on 1 January 2018. Allocation of indirect costs depending on their financial weighting: Common costs for social programmes in France and abroad : prorated to the direct costs of missions and the financial weight of volunteers. Common costs for fundraising: prorated to resources raised (e.g., fundraising department, strictly speaking) Directorate General and documentation costs: prorated to direct costs of uses and the financial weight of volunteers Allocation based on time spent: Intervention costs: supervision of volunteers and advocacy is included in social programmes, with statutory projects being recognised under operating costs. Health and Advocacy Directorate: breakdown between social programmes in France and abroad Purchasing Logistics Department: breakdown between social programmes, fundraising costs, and operating costs General Services Department (excluding costs linked to the headquarters building): breakdown in Programmes in France (General Services Department handles logistics issues for them) and operating costs. Breakdown based on staff concerned: -

Career, hiring and training HR Department: prorated to the number of persons managed Headquarters building costs (including human resources): prorated to the number of headquarters employees working for social programmes, fundraising or operations.

Other keys: -

Journal of donors: costs split between social programmes and fundraising costs based on the number of pages of communication or advocacy and the number of pages of appeals for donations. Web: costs broken down by number of clicks (those generating fundraising are attributed to fundraising costs) Grants paid to the international network and not restricted to a specific purpose: broken down into thirds for social programmes, fundraising costs and operations.

Médecins du Monde 2018 Financial Report

22.2.

INCOME

22.2.1 Funds from public giving:

Funds from public giving are: donations from private individuals and businesses (excluding corporate sponsorship, salespercentage and partnership agreements); legacies; donations linked to life insurance; income from special events; and funds raised from other network members. Beginning in 2018: Financial income from our investments is also included in “Other income from public donations”. To make things simpler, we have considered that invested funds are from our reserves and collection of donations and other funds. Note that financial income investments came to €0.03m. Such investment income was previously recognised under “Other income”. Financial income from currency gains: Given the complexity of tracing the origins of currency gains, we have applied the percentage of funding of field operations that is not from our funding bodies to the total amount of currency gains, in order to determine those that are from public donations

22.2.2 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.

22.2.3 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.

22.2.4 Other income: Other income includes: miscellaneous operating income; subscriptions; contributions to the ‘Adoption’ service.

22.3

FIXED ASSETS FUNDED BY FUNDS RAISED FROM THE PUBLIC

The portion of fixed assets financed by public donations must appear specifically in the Income and Expenditure Statement. It is therefore important to define how such investments are funded. Are specific resources used for this purpose, for example an earmarked grant or the balance of resources available after funding other use categories? We had previously considered that no fixed asset was financed by public donations, as our investments are very small. Beginning with the 2018 financial year, we have revised the rules for allocating resources to various use categories (see below). As a result, we now consider that investments that are not from a specific funding source (grants by a public or private funding body, or an earmarked donation or bequest) shall be funded by the balance of other income or public donations, which is still available after funding other use categories.

MĂŠdecins du Monde 2018 Financial Report

22.4

ALLOCATION OF INCOME FROM PUBLIC GIVING

The order of allocation of resources to uses is as follows: Resources earmarked by the funding body or donor are used, first of all, for the purpose stated by the funding body or donor. -

Earmarked grants Other earmarked private funds Earmarked public donations

Costs released from the use of volunteers are assigned to funding the department in which they work. Member dues are given priority use in funding statutory obligations. Currency gains fund social programmes as a priority. Resources not earmarked to a specific purpose are then used as follows: -

Other non-earmarked public or private funds and other income: o Unrestricted resources (excluding those from public donations, administrative costs on grants and currency gains) fund, by order of priority, fundraising costs for the activity concerned, then operating costs, and then other fundraising costs (excluding general public) and then the missions. o The percentages of administrative costs assigned to public-sector grants fund, by order of priority, the cost of obtaining public-sector grants, then grants paid to the international network, then operating costs of the organisation, and then the social programmes. o The percentages of administrative costs granted to private-sector grants fund, by order of priority, the costs of obtaining private-sector grants, then grants paid to the international network, then the organisationâ&#x20AC;&#x2122;s operating costs, and then social programmes. o Other income funds, by order of priority, operating costs, then investments.

Non-earmarked public donations: o Funds paid by the international network: fundraising costs tied to the international network, then grants paid to the international network, then the social programmes o French public donations: social programmes until the amount to be financed is exhausted, then fundraising costs from public donations, then operating costs, then investments.

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.

22.5

INCOME IN KIND

Inventory of French volunteer workforce: 2 016 French volunteers intervened in 2018 - the Full Time Equivalent of 112.32 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.

66 201 006

12 909 471

1.2 Activities carried out abroad

2 - FUNDRAISING COSTS

Operating costs and other expenses

Fundraising costs

Social Programmes

TOTAL

V - GRAND TOTAL V - Proportion of gross fixed asset acquisitions in the financial year finances since the regulation first came into force by funds raised from the general public VI - Offsetting of depreciation allowances on fixed assets financed since the regulation first came into force by funds raised from the general public VII - Total expenditure financed by funds raised from the general public

IV - SURPLUS FUNDS FOR THE FINANCIAL YEAR

III - OUTSTANDING COMMITMENTS FROM EARMARKED FUNDS

TOTAL I - TOTAL EXPENDITURE FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - CHARGES TO PROVISIONS

3 - RUNNING COSTS

6 744 156

182 582

8 930

6 552 643

99 593 199

371 658

91 893

2 272 819

96 856 829

5 388 296

277 417

2.3 Costs related to applications for grants and other

public sector funding

388 845

2.2 Costs of fundraising from other private sources

12 243 208

12 358 056

1.1 Activities carried out in France

2.1 Costs of appeals to public generosity

78 559 062

2018 Expenditures

1 - SOCIAL PROGRAMMES

EXPENDITURE

47 490 900

45 272

400 112

47 136 060

3 687 913

295 683

12 243 208

12 538 891

22 250 585

8 658 671

30 909 256

Allocation (according to use) of funds raised from the general public for use during the financial year

Donations in kind

Volontary work (France)

TOTAL

VI - Total expenditure financed by the funds raised from the general public Balance of funds raised from the general public which are unrestricted and unused at the end of the financial year

VI - GRAND TOTAL

I - TOTAL FUNDS FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - WRITE-BACKS OF PROVISIONS III - UNUSED, EARMARKED FUNDS BROUGHT FORWARD FROM PREVIOUS FINANCIAL YEARS IV - CHANGE IN EARMARKED FUNDS RAISED FROM THE GENERAL PUBLIC (cf table of earmarked funds) IV - FUNDING DEFICIT FOR THE FINANCIAL YEAR

4 - OTHER REVENUE

3 - GRANTS AND OTHER PUBLIC SECTOR FUNDING

2 - OTHER PRIVATE FUNDS

1.2 Other revenue from appeals to public generosity

- Earmarked legacies and other gratuities

- Unrestricted legacies and other gratuities

- Earmarked donations by hand

- Unrestricted donations by hand

1.1 Donations and legacies received

1- FUNDS RAISED FROM THE GENERAL PUBLIC

Brought forward funds raised from the general public, unrestricted and unused at the start of thefinancial year

INCOME

6 744 156

1 016 769

5 727 387

99 593 199

486 544

1 950 056

97 156 599

1 415 297

46 103 663

3 106 209

2 477 142

5 244 240

46 808

38 763 240

44 054 289

46 531 431

Funds Raised 2018

5 011 369

47 490 900

46 237 781

293 650

2 477 142

5 244 240

46 808

38 763 240

44 054 289

46 531 431

6 264 488

Monitoring of funds raised from the general public for use during the financial year

INCOME AND EXPENDITURE STATEMENT : FUNDS RAISED FROM THE GENERAL PUBLIC - 2018 (previous method of accounting-identical to the one used in 2017) (€)

Médecins du Monde 2018 Financial Report

14 526 748

1.1.1 Activities directly carried out

Operating costs and other expenses

Fundraising costs

Social Programmes

TOTAL

IV - SURPLUS FUNDS FOR THE FINANCIAL YEAR

III - OUTSTANDING COMMITMENTS FROM EARMARKED FUNDS

TOTAL I - TOTAL EXPENDITURE FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - CHARGES TO PROVISIONS

3 - RUNNING COSTS

public sector funding

2.3 Costs related to applications for grants and other

2.2 Costs of fundraising from other private sources

2.1 Costs of appeals to public generosity

2 - FUNDRAISING COSTS

6 744 156

182 582

8 930

6 552 643

99 593 199

371 658

91 893

2 272 819

96 856 829

3 351 692

334 285

967 628

12 912 413

14 214 327

520 079

64 203 984

1.1.1 Activities directly carried out

1.1.2 Payments to other institutions

64 724 063

1.2 Activities carried out abroad

40 000

14 566 748

1.1 Activities carried out in France

1.1.2 Payments to other institutions

79 290 811

2018 Expenditures

1 - SOCIAL PROGRAMMES

EXPENDITURE

46 276 830

45 272

400 112

45 921 989

2 265 650

12 912 413

19 879 443

10 864 483

30 743 926

Allocation (according to use) of funds raised from the general public for use during the financial year

Donations in kind

Volontary work (France)

TOTAL

VI - Total expenditure financed by the funds raised from the general public Balance of funds raised from the general public which are unrestricted and unused at the end of the financial year

VI - GRAND TOTAL

4 - OTHER REVENUE

3 - GRANTS AND OTHER PUBLIC SECTOR FUNDING

2 - OTHER PRIVATE FUNDS

1.2 Other revenue from appeals to public generosity

- Earmarked legacies and other gratuities

- Unrestricted legacies and other gratuities

- Earmarked donations by hand

- Unrestricted donations by hand

1.1 Donations and legacies received

1- FUNDS RAISED FROM THE GENERAL PUBLIC

Brought forward funds raised from the general public, unrestricted and unused at the start of thefinancial year

INCOME

6 744 156

1 016 769

5 727 387

99 593 199

486 544

1 950 056

97 156 599

1 279 394

46 103 663

3 106 209

2 613 044

5 244 240

46 808

38 763 240

44 054 289

46 667 333

Funds Raised 2018

6 361 341

46 276 830

46 373 683

293 650

2 613 044

5 244 240

46 808

38 763 240

44 054 289

46 667 333

6 264 488

Monitoring of funds raised from the general public for use during the financial year

INCOME AND EXPENDITURE STATEMENT : FUNDS RAISED FROM THE GENERAL PUBLIC - 2018 (new method of accounting) (€)

Médecins du Monde 2018 Financial Report

MĂŠdecins du Monde 2018 Financial Report

Part 2 Analysis of the 2018 Accounts

Médecins du Monde 2018 Financial Report

INCOME STATEMENT

In thousand of €

INCOME EXPENSES SURPLUS/DEFICIT

2015 91 187 90 922 265

2016 97 024 95 861 1 163

2017 100 104 99 111 993

2018 99 593 99 223 371

Almost no change in activity In 2018, global activity of Médecins du Monde was almost unchanged vs. 2017 (-0.1%). A financial year in surplus The result came to +€0.37m prior to the assigning of charges pertaining to the adjustment of French premises to mission statement reserves. This was €0.6m lower than the previous financial year, owing to a lower operating result (-€0.2m) and to a financial result that was less favourable than the previous year (-€0.4m).

1.1 1.1.1

OPERATING RESULT Operating income

Operating income came to €97.7m, with almost no change (-0.3%) vs. 2017. Funding was mainly from the non-institutional sector (€50m), including income from the general public 1 (€46.5m), privatesector grants (€3.1m), and miscellaneous operating income (€0.4m), with public-sector grants amounting to €46.1m. 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. Incidentally, we strive to guarantee this independence by taking into account other parameters that are just as relevant: developing programmes outside of calls for projects launched by funding bodies, starting up projects without having to wait for external funding, carrying out exploratory missions, etc. Income from the general public in France and internationally rose slightly from the previous year (+€1m). Fundraising from the French public came to €38.8m, a €0.6m increase vs. 2017. Despite an unfavourable context for fundraising, from both a tax (CSG tax on pensions in late January) and social point of view, it still rose by almost 2% on a fundraising market that shrank by 4.2%, according to the Baromètre France Générosités. Our strategy of expanding direct debit donations is paying off, as it now accounts for 70% of French donations and allows us to base our fundraising on a foundation that is less sensitive in the short term to outside events. One-off donations continued their downward trend (-3.3%). Income from international network fundraising came to €2.5m, up considerably vs. 2017 (+7.8%, or +€0.2m). These donations were mainly from MdM-Germany and MdM-Japan. Income from bequests and similar donations came to €5.2m, up by €0.3m vs. 2017 (+5.7%). On the whole, public- and private-sector grants declined slightly (by -€1.5m, or -3% vs. 2017), tracking the trend in programmes 2: their increase in France (+7.7% or +€0.7m) did not offset the shrinking international volume (-3.5%, or €1.9m). The completion of certain programmes (in Haiti with the end of Hurricane Matthew-related activities; in Niger and Chad, with the shutdown or stand-by of these countries; in Serbia, with the end of migrant activities, etc.) combined with funding difficulties (in Iraq) and a political situation that complicated our interventions (southern Syria).

Operating income from the general public consists of donations, bequests and donations from the network. The programmes mentioned above are direct actions in the field, excluding coordination costs and central office management costs. 2

Médecins du Monde 2018 Financial Report

This reduction in activity was partially offset by openings (Uganda) and the development of existing programmes (Bangladesh – Rohingyas emergency, Nigeria, Ivory Coast, and Palestine). Write-backs of provisions (€1.6m) reflect the resolution of a number of liabilities or litigations during the financial year for which prior provisions had been made. They break down as follows: Write-backs of provisions offset by the recognition of an expense in 2018 came to €0.3m. These write-backs therefore had no effect on the final accounting result (costs of the Chad and Niger shutdowns). Some provisions were no longer required, as the liability did not materialise, and their write-back added €0.18m to the result. Lastly, the provision for retirement benefits is written back and re-provisioned every year. The amount of the writeback of this provision came to €0.62m in 2017. The provision is listed in the expenses below.

1.1.2

Operating costs

Operating costs were almost unchanged (-0.1%, or -€0.1m) but there were widely disparate trends, depending on their nature. The most notable differences between 2017 and 2018 were as follows: -

Purchases, €9.4m, down by 19% (-€2.3m). This decline is due to the shift in our activities towards a greater focus on mental health and psychosocial support, particularly within the framework of the Syrian crisis. Drug purchases thus declined by €1m vs. 2017 (-€0.7m for the Syrian crisis, -€0.3m in Iraq) and purchases of medical equipment fell by €1m (-€0.7m for the Syrian crisis, -€0.2m in Haiti with the end of the Hurricane Matthew emergency, etc.).

Staffing costs (€43.3m in all), however, rose by €3.3m, or +8%. The increase was due to staff on French contracts (+€1.7m / +7%) and staff recruited locally on international programmes (+€1.6m / +11%). For staff on French contracts, this increase was due to: • The implementation in July 2018 of the new occupation classification and, as a corollary, a new worker payment grid (+€0.5m). • The full-year impact of departments or management positions created in 2017. The increase in payroll of the national staff employee abroad is due to a reorientation of our activities: in response to the Syrian crisis, for example, activities that had previously been handled by implementation partners are now handled by our national personnel.

Grants awarded (€8.7m) declined by €1.9m, or by 20%. Grants are awarded by MdM: •

to local institutional or civil society actors (in France and elsewhere) taking over programmes in accordance with our mission statement: These grants amounted to €5.1m in 2018, or €1.8m less than in 2017, including €1.5m for the Syrian crisis: partnerships were halted or scaled back severely, and activities were resumed directly (see paragraph above on national staffs); moreover, a 28% drop in the Turkish lira vs. the euro led to a de facto decline in expenses in our accounts (as major partners are paid in this currency).

•

to members in our international network to assist them in setting up field programmes or advocacy and developing their fundraising. The amount, €3.6m in 2018, was unchanged vs. 2017.

Other expenses (€0.6m), up by €0.2m, or 64%. The increase is due to a repayment of expenses deemed ineligible by a funding body. This repayment, which had been provisioned in 2017, was subjected to a write-back of provisions. This operation therefore had no impact on the 2018 result.

Médecins du Monde 2018 Financial Report

Provisions (€1.5m) up by €0.2m, or +19%. The main provisions in 2018 were for risks incurred from our international operations and the annual adjustment of the provision for retirement benefits.

1.2

FINANCIAL RESULT

The financial result showed a €0.6m loss for the financial year, due to the foreign exchange result. Shifts in exchange rates in our international operations generated a net loss of €0.2m, a slight improvement from one year earlier. However, provisions for currency losses, resulting from a comparison between the book value of our receivables and our debts in foreign currencies and their theoretical value based on exchange rates as of 31 December, rose sharply (+€0.4m), thus affecting the financial result (-€0.4m compared to the previous year). Financial investment income remained very marginal at €0.03m and was unchanged vs. 2017. Our investment policy focuses on cash-type investments (deposits, term accounts, passbook savings, and mutual funds), which are among the safest assets on the market.

1.3

EXTRAORDINARY PROFIT, CORPORATE TAX (IS) AND CHANGES IN DEDICATED FUNDS:

The extraordinary profit (-€0.03M) 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 2018 of the use of funds (+€0.4M) received for Nepal and for the programmes in France.

BALANCE SHEET

ASSETS (In thousand €) Fixed assets Stocks Claims Cash Prepaid charges TOTAL

Brut 21 612 305 55 556 27 872 5 071 110 416

2018 Deprec+Amort Net 16 221 5 391 305 6 55 550 27 872 5 071 16 227 94 189

2017

LIABILITIES

2018

2017

Equity Provisions for liabilities and charges Dedicated funds Debts Deferred income TOTAL

18 512 2 989 120 18 778 53 790 94 189

18 141 2 667 514 16 221 47 966 85 509

Net 5 487 308 50 601 28 435 678 85 509

Balance sheet assets rose by €8.7m to €94.2m, due to: an increase in funding body receivables (+€4.9m in assets) and deferred income from grants (+€5.8m in liabilities) The new contracts with funding bodies rose significantly from one year to the next. Note that agreements with funding bodies are recognised as receivables from the moment the agreement is signed, regardless of the period covered, and deferred income represents the share of grants pertaining to future financial years. deferred charges from grants that MdM-France receives and pays out to the network (+€4.4m in assets). Network members have been funding many MdM-France programmes for several years. In exchange, and for the first time this year, MdM-France contracted funding on behalf of MdM community members (for example, a contract signed by MdM-France with a Canadian funding body is financing MdM-Belgium’s programmes in the Democratic Republic of Congo (DRC)). Médecins du Monde treats the contract signed with the funding body based on the normal rule and, as a corollary, records expenses to be paid to a network member, which will serve as operator. The deferred charges therefore correspond to the share of the grant pertaining to future financial years (€3.8m). Meanwhile, our partners receive payments to cope with their future expenses, payments that had previously been fully expensed at the time of payment. For the first time this year, our partners were able to disclose to us their actual consumption during the 2018 financial year. We have therefore recognised as deferred charges the share of payments that will be used during the 2019 financial year (€0.5m).

Médecins du Monde 2018 Financial Report

Fixed assets of €5.4m call for no special comment. No notable investment was made in 2018. The main acquisitions were in replacing field vehicles or IT hardware. Cash declined by €0.6m to €27.9m, as we had received large initial payments from funding bodies in late 2017 and we held less cash in our activity countries at the end of 2018. Own funds by the amount of the surplus recognised for the financial year. This came to €18.5m as of 31 December 2018, the equivalent of 2.29 months of operations. “Other debts” rose by €2m to €10m, due mainly to the DRC financing to be paid to MdM-Belgium.

INCOME AND EXPENDITURE STATEMENT Method for the calculation of ratios1

For 2018, two versions of the Income and Expenditure Statement will be presented, one based on the method used until the end of 2017 and the other based on the new allocative keys set by the Board of Directors of February 2019.

3.1

EXPENDITURE

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

Médecins du Monde 2018 Financial Report

On the whole, social programmes declined by 2.4% based on the previous method and by 1.5% based on the new method. International programmes suffered the steepest decline (-3.8% based on the previous method and -5.9% based on the new method), while programmes in France were up by 6% based on the previous method and by 25% based on the new method. As explained above, this overall decline is due to our international activities. It results from the completion of several programmes and from difficulties encountered in Iraq and in the Syrian crisis, which were only partially offset by openings or expansion of existing programmes (in France and internationally). As the weight of social programmes declined in our uses, the weight of fundraising and operating costs rose as a corollary (based on the previous calculation method).

3.1.1

Social programmes

FRENCH AND INTERNATIONAL PROGRAMMES The breakdown between social programmes in France and abroad is little changed compared to 2017 International programmes declined by €2.6m, while programmes in France rose slightly (by +€0.7m), as the weight of the latter rose slightly (+2.8%).

The change in percentage between the previous and new methods for the 2018 Income and Expenditure Statement are explained below. 46

Médecins du Monde 2018 Financial Report

FRENCH PROGRAMMES

Distribution by domain:

Social programmes in France (K€) Healthcare, advice and referral clinic Other programmes Witness-bearing programmes Grants given to other institutions Advocacy and quality of practices

Coordination and management of French programmes Total

2017 3 493 3 603 782 10 361 3 403 11 652

2018-IES Previous method 3 801 4 015 565 40 595 3 343 12 359

2018-IES New method 3 801 4 015 1 921 40 524 4 266 14 567

2017 and 2018 changes French operations (reception centres and other missions) French operations rose by €0.72m (see “2018 key events” comments below below). Bearing witness The costs of bearing witness missions had previously been 25% allocated to programmes in France and 75% to international programmes. But our bearing witness and communication activities are focused mainly on France and hence a new method readjusts the percentages between France and international to better reflect the reality. Operational support (advocacy, quality of practices, coordination and management) To have a more accurate view of support and coordination costs, we have included a share of costs from the use of buildings and IT resources in the costs of managing programmes in France.

2018 key events In 2018, conditions worsened again for migrants arriving in France. MdM expanded its scope of action in various parts of France, in order to be closer to the migrants and their living spaces, in order to bear witness and denounce their living conditions. Along the Franco-Italian border (from Menton to Briançon), MdM supplemented the existing healthcare and reception mechanisms in cooperation with local actors to offer medical check-ups in reception centres, first aid, and guidance where necessary, as well as assistance to exiles, as well as social workers and volunteers. In Paris, MdM expanded its healthcare facility, setting up a permanent reception desk and psychological and legal advisory specifically for exiles from camps and coordination of the various actors involved in the field to alert public authorities to the situation. And on the northern coast of France, MdM continued its efforts to maintain a mobile clinic and to develop an approach in mental healthcare and psychosocial support to help the most vulnerable persons. Guidance towards healthcare facilities was also provided, along with distribution of basic supplies. Other programmes Having non-state actors and other organisations continue the innovative approaches that we have developed, which that have proven their effectiveness, remains one of our main objectives. 2018 also saw the completion of the medico-psycho-social programme for persons living in squats, called Squats IdF, with the goal of reducing the socio-sanitary risks facing persons living in non-residential buildings. A report was produced about

Médecins du Monde 2018 Financial Report

10 years of interventions. Through its approach of being with and about them, the programme has endeavoured to demonstrate a co-constructed approach with the persons concerned. In the same spirit, Médecins du Monde organised the Parrainage des Enfants Hospitalisés (sponsoring hospitalised children) for 30 years, during which more than 2532 hospitalised children were accompanied. This helped develop unique practices in accompanying and supervision of children in extremely vulnerable hospital situations. This historic mission for Médecins du Monde was transferred to Chaine de l’Espoir in late 2018. In 2018, Médecins du Monde also continued to develop innovative programmes: in its reorientation efforts, CASO de Marseille proposed setting up a city “PASS” (permanence access to healthcare) on an experimental basis. The pilot phase began in November 2018 before rolling out the mechanism on a broader scale in Marseille in 2019. Along similar lines, the France Guyana mission studied the feasibility of a similar mechanism in Guyana. Lastly, diagnoses were conducted in new areas, such as the former mining areas of northern France and on Réunion island.

Geographical distribution*:

*The amounts correspond to the expenditure, coordination and witness-bearing programmes excluded.

Médecins du Monde 2018 Financial Report

INTERNATIONAL PROGRAMMES

Social programmes in thousands of €

2 017

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 Advocacy and quality of practices Amman regional operational center Programme Coordination and Management

14 349 4 530 6 032 3 658 23 880 75 1 121 421 467 3 284 2 699 671 1 080 6 541 68 808

2018-IES Previous method 15 684 3 241 6 534 2 394 23 409 1 99 453 424 364 1 882 1 736 1 104 1 467 7 408 66 201

2018-IES New method 15 684 3 241 6 534 2 394 23 409 1 99 453 424 364 681 93 1 175 1 467 8 703 64 724

Changes between 2017 and 2018 International operations (five regions, exploratory missions, traversal missions, Opération Sourire and adoption) The volume of direct activities in the field decline from €54.5m in 2017 to €52.6m in 2018) – see below for changes on each continent. International network In 2018 support for the network declined on the whole. Moreover, unrestricted grants were split up differently between the three use categories. Bearing witness The costs of bearing witness missions had previously been 25% allocated to programmes in France and 75% to international programmes. But our bearing witness and communication activities are focused mainly on France and hence a new method readjusts the percentages between France and international to better reflect the reality. Operational support (advocacy, quality of practices, coordination and management) To have a more accurate view of support and coordination costs, we have included in the costs of managing international programmes a share of costs from the use of buildings and IT resources.

2018 key events In 2018 MdM continued its activities under its strategic priorities, namely emergencies and crises, sexual and reproductive health, harm reduction, migration, rights and health, and health and environment. The Syrian crisis was marked this year by the retaking of a large portion of the Syrian territory by Damascus, which had a big impact on our cross-border activities and in particulier our activities in southern Syria. In northwest Syria, in revanche, activities have been expanded in Afrin, thanks mainly to MdM-Turkey.

MĂŠdecins du Monde 2018 Financial Report

To cope with the flow of South Sudanese refugees into northern Uganda, MdM opened a programme in Bidibidi, Yumbe district. It ensures access to primary healthcare, sexual and reproductive healthcare and mental healthcare / psychosocial support to South Sudanese refugees and the host community, as well as treatment of war-related violence. This project explains the steep increase of our activities in this country. Uterine cancer is the main cause of cancer mortality among women in Burkina Faso. In 2017, only 6.7% of women were tested. In 2018 in Burkina Faso, MdM launched its first programme in Africa for the prevention and treatment of uterine cancer. This pilot project is scheduled to run for four years. Anti-migrant European policies advocating the closing of border have reduced migratory flows considerably, causing us to close our migrant programmes in Europe, whether in Italy (Calabria), Bulgaria or Serbia. The opening of two health and environment programmes in 2018 in the Philippines and Nepal will allow MdM to deepen this theme internationally, despite difficulties in funding it.

Geographical distribution per unit*:

*(regionally-managed, exploratory, cross-sector, international network, witness-bearing and headquarters coordination programmes excluded)

Médecins du Monde 2018 Financial Report

FOCUS ON AFRICA €14.3M €15.7M

Expenditure in 2017: Expenditure in 2018:

2018 Key events 2018 main events are: • Shutdown of programmes in Chad and Niger • Uganda: opening of a programme at Bidibidi • Côte d’Ivoire: ramp-up of sexual and reproductive healthcare project in school environments • Nigeria: opening of two new clinics in Damboa region and response to the cholera epidemic • DRC: Accounting of the MdM-Belgium project begun in 2018 and funded by a contract signed by MdM-France (shown in green in the chart below)

Financial weight per country in € 2500 000

2000 000

1500 000

1000 000

500 000

2017

2018

2017

Angola

2018

Burkina Faso

2017

2018

2017

Ivory Coast

2018

2017

Ethiopia

2018

Kenya Somalia

2017

2018

Madagascar

3000 000 2500 000

2000 000 1500 000 1000 000 500 000 2017

2018

Niger

2017

2018

Nigeria Emergencies

2017

2018

Ouganda

2017

2018

DRC

2017

2018

Tanzania

2017

2018

Tchad

2017

2018

CAR Emergencies

Médecins du Monde 2018 Financial Report

FOCUS ON EUROPE Expenditure in 2017: €3.7M Expenditure in 2018: €2.4M

2018 Key events 2018 main events are: • Bulgaria: shutdown of the Migration Rights and Health (MRH) project, evaluation for a reorientation of the sexual and reproductive healthcare programme with Rom populations • Italy: reorientation of MRH activities to support from local actors and shutdown of the Calabria base in late 2018 • Serbia: end of the MRH project and closing of the mission in September • Russia: consolidation of activities for sex workers in Moscow; epidemiological research carried out. • Georgia: development in the provinces of the harm reduction model, peer support, and consolidation of advocacy with local actors • Caucasus: exploratory mission in Armenia and Azerbaijan or a regional scaling

Financial weight per country in € 800 000

700 000

600 000

500 000

400 000

300 000

200 000

100 000

2017

2018

Bulgaria

2017

2018

Georgia

2017

2018

Russia

2017

2018

Serbia

2017

2018

Greece

2017

2018

Italy

2017

2018

Med Migrants

Médecins du Monde 2018 Financial Report

FOCUS ON ASIA Expenditure in 2017: €6 M Expenditure in 2018: €6.5M

2018 Key events 2018 main events are: • Nepal: end of the post-emergency project; launch of health and environment activities • Sri Lanka: end of the current phase of activities and preparation of the handover to MdM-Japan • Burma: slowdown of harm reduction activities in Kachin, due to the worsened environment • Vietnam: launch of the cohort for treating hepatitis C and preparation for shutting down the programme • Philippines: launch of the community health and environment project • Bangladesh: plan to support the Rohingyas for a full year • Pakistan: new Punjab project begun in late 2017

Financial weight per country in € 3000 000

2500 000

2000 000

1500 000

1000 000

500 000

2017

2018

Sri Lanka

2017

2018

Nepal

2017

2018

Pakistan

2017

2018

Philippines

2017

2018

Myanmar

2017

2018

Vietnam

2017

2018

Bangladesh Emergencies

Médecins du Monde 2018 Financial Report

FOCUS ON LATIN AMERICA AND THE CARIBBEAN Expenditure in 2017: €4.5M Expenditure in 2018: €3.2M

2018 Key events 2018 main events are: • Venezuela: opening of a civil-society support programme • Haiti: fewer activities following the end of the Hurricane Matthew programmes • Colombia: shutdown of activities in Meta • Mexico: shutdown of sex worker activities in Tapuchula

Financial weight per country in €

3500 000

3000 000

2500 000

2000 000

1500 000

1000 000

500 000

2017

2018

Colombia

2017

2018

2017

Haïti

2018

Mesoamerica

2017

2018 Peru

2018 Venezuela

Médecins du Monde 2018 Financial Report

FOCUS ON THE MIDDLE EAST / MAGHREB Expenditure in 2017: €23.9M (not counting the Amman operating base) Expenditure in 2018: €23.4M (not counting the Amman operating base)

2018 Key events 2018 main events are: The main events of 2018 were: • Palestine: Gaza emergency • Yemen: opening of a base in southern Yemen • Algeria: expansion of activities in Oran • Iraq: shrinking of programmes due to funding difficulties • Syrian crisis, of which: Syria: very steep decline in cross-border activities southern Syria from Jordan and Lebanon Turkey: assumption of direct management of activities that had been implemented by local partners, shift of some activities to the Turkish healthcare system, and reorientation of programmes towards mental health.

Financial weight per country in € 16 000 000

14 000 000

12 000 000

10 000 000

8 000 000

6 000 000

4 000 000

2 000 000

0 2017

2018

Algeria

2017

2018

Egypt

2017

2018

Palestine

2017

2018

Yemen Emergencies

2017

2018

Iraq Emergencies

2017

2018

Syrian Crisis

Médecins du Monde 2018 Financial Report

3.1.2

Fundraising costs

in thousands of €

2017 12 036

Fundraising costs

2018-IES Previous method

2018-IES New method

12 909

14 214

Between 2017 and 2018, under the previous method, fundraising costs rose in absolute value terms (+€0.87m) to €12.9m, due to heavier investments (we invested in new fundraising methods continued our development of direct debit donations. The difference between 2018 under the previous and new methods is due mainly to the following factors: -

Inclusion of a share of costs in using buildings and IT resources. Reallocation of some grants paid to members of the international network Integration of some communication costs related to fundraising

3.1.3

Operating expenses

in thousands of €

2017 4 758

Operating expenses

2018-IES Previous method

2018-IES New method

5 388

3 351

On a like-for-like basis (i.e., a comparison 2017 and 2018 under the previous method) the percentage of operating costs rose slightly: 5.6% of total uses (+€0.6m): ongoing transformation plan (development of the service in charge), structuring of support services (legal, general services, etc.) However, the application of new allocative keys generates a sharp decline in operating costs between 2017 and 2018 in both absolute terms (-€1.4m) and in percentage of uses (from 4.9% to 3.4%). Costs of using the building and IT resources are now split among the various types of uses.

Médecins du Monde 2018 Financial Report

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. Publicsector grants accounted for 47.5% of our total revenue which represents less than 50% of our total revenue.

3.3.

INVESTMENTS:

Based on the new rules for allocating resources, public donations financed investments in 2018. These came to €400,112. Amortisation corresponding to these investments came to €45,272 in 2018.

MĂŠdecins du Monde 2018 Financial Report

Part 3: Special Report on Regulated Agreements

MĂŠdecins du Monde 2018 Financial Report

Part 4: 2018 Budget

Médecins du Monde 2018 Financial Report

Expenditure 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 (€)

2017 Budget Income 2017 Budget 93 645 103 Funds raised from the general public 46 547 014 13 156 644 Donations 39 584 429 80 488 459 Legacies, other gratuities 5 912 585 12 149 230 Other revenue from appeals to public generosity 1 050 000 11 504 862 Sponsorship 0 379 207 Other private funds 3 510 769 265 161 Grants and other public sector funding Other revenue 6 124 328 Deficit for the financial year 111 918 662 Total (€)

61 297 402 57 500 505 977 111 918 662

Comments on the 2019 budget The 2019 budget was approved by the Board of Directors on 15 December 2018. 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. 2019, 2020 and 2021. Only the 2019 budget was approved during the 2019 held General Assembly. The 2 other years will be updated further on. The Board of Directors decided to put a budget with a slight deficit to the vote at the General Assembly. The deficit amounts to €-0.51M (€-0.49M after taking into account the reserve created for association project during the previous 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 handover of activities in northwest Syria to MdM-Turkey, an organisation emerging from MdM-France, which became independent and a member of the international network in October 2018 Assistance to network members in seeking funding The expansion of funding bodies’ diversification policy (none of them must fund more than 10% of our activities on a global basis) The redefining of financial processes with the goal of installing a new ERP software in 2020 The change in allocating unrestricted resources (consisting of non-earmarked donations and bequests, administrative costs of funding bodies, contributions, etc.) including administrative costs, coordination costs and central office costs directly attributable to the programme (salaries of desk supervisors, medical referees, etc.) in each application submitted to funding bodies. Control of HR spending, particularly at the headquarters.

Médecins du Monde 2018 Financial Report

2019 budget expenditure The comparisons below are between actual 2018 figures and the 2019 budget. The 2019 budget provides for an increase of more than 13% in percentage and €13m between the actual 2018 figure (€99m) and the budget estimated for 2019 (€112m) The budget reflects growth in activities undertaken in France and elsewhere.

Social programmes Hence, the volume of social programmes in the 2019 budget was €94m (up by €15m vs. the actual 2018 figures of €79m). The ratio of social programmes to total uses came to 83.7% vs. 81.1% in the actual 2018 figures. Operations in France expanded to a financial volume of €13.2m in 2019 vs. €12.4m in actual 2018 figures (+6%). International operations rose significantly compare to the actual 2018 figures (+22%).

Fundraising costs Fundraising costs fell from €12.9m in the actual 2018 figures to €12.2m in the 2019 budget, due to the optimisation of the net fundraising margin: a mix of investments was approved for 2019 (leads-to-call campaigns, ongoing tests of new service providers, reduction in the budget on reactivation due to data-protection regulations, and to increasingly low returns on investment on this lever, search for innovative levers for 2019 etc.). Fundraising costs have not only fall in value terms, they are also down as a percentage: 10.9% of uses in the 2019 budget vs. 13.3% in the actual 2018 figures.

Operating costs Operating costs rose (to €6.1m in the 2019 budget vs. €5.4m in the actual 2018 figure), but their weighting slipped from 5.6% of uses in the actual 2018 figure to 5.5% in the 2019 budget.

2019 budget income Receipts from public donations are unchanged (at €46.5m in the 2019 budget and in the actual 2018 figure). Projections are conservative on fundraising from the French public, due to the new withholding tax and the impact of the CSG tax on retirement pensions. Because of a redefinition of the contract between MdM-France and MdM-Germany, gross network fundraising declined in 2019 vs. 2018, but this was offset by an increase in bequests. Public-sector grants surged by 33% from the actual 2018 figure (€46.1m) to the 2019 budget figure (€61.3m).

2019 budget conclusion This 2019 budget, which is almost in balance when taking into account reserves for mission statements et up at the general meetings of 2015, 2016 and 2017, reflect the Association’s strategy and determination: -

to offset the decline in public and private funding by allocating more donations to operations in France; to continue diversifying funding bodies to guarantee our financial independence; maintain its own funds and consolidate its financial solidity, given the extent of its overall growth.

MĂŠdecins du Monde 2018 Financial Report

Annexes: Financial Statements in USD

Médecins du Monde 2018 Financial Report

Balance sheet 2018 (USD) ASSETS

DEPREC + AMORT

GROSS

NET 2018

Net 2017

LIABILITIES

FIXED ASSETS

EQUITY

Intangibles

Statutory funds

Licenses, patents etc. Advances and downpayments

1 287 654

1 138 331

149 324

2018

17 379

17 989

20 141 466

19 603 426

493 181

583 336

28 209

29 199

20 680 236

20 233 950

423 690

1 171 908

21 103 926

21 405 858

3 407 864

3 146 578

136 549

607 028

175 695 Gratuities/Bequests 0 General intervention reserve

Associative project reserve

Tangible assets Balance brought forward Capital grant 1 374 955

Land

Buildings Other fixed assets Fixed assets in progress

1 374 955

1 423 199 Surplus allocated to investments

8 791 141

6 797 278

1 993 863

2 189 039 Subtotal

11 346 086

10 555 794

790 292

2017

924 330 0 (-) DEFICIT or (+) SURPLUS

Investments

TOTAL I

Other long-term securities

23 896

24 735

Prov. for liabilities and Charges Loans

912 524

Other investments

900 946

24 637 202

18 491 403

6 145 799

TOTAL I

847 622 889 711 DEDICATED FUNDS 6 474 330

CURRENT ASSETS

CURRENT LIABILITIES 97 717

94 550

4 140 194

4 101 268

5 647 298

5 429 969

Bank borrowings (1) 347 952

347 952

63 334 105

6 547

63 327 558

31 774 320

5 780 678

TOTAL II

101 237 054

6 547

101 230 508

94 425 842

TOTAL III

TOTAL IV

TOTAL III

TOTAL ASSETS

125 874 257

18 497 950

107 376 307

100 900 173

TOTAL LIABILITIES

107 376 307

100 900 173

Stocks of medicines & med. Equipmt. Other receivables Securities Cash

363 046 Trade notes and accounts payable 59 709 865 Tax and social liabilities 0 Liabilities to fixed asset suppliers 33 553 005 Other liabilities

ADJUSTMENT ACCOUNTS Prepaid charges

65 370

21 754

11 457 088

9 493 465

61 320 302

56 599 702

82 727 968

75 740 708

ADJUSTMENT ACCOUNTS 799 927 Deferred income

TOTAL II

Deferred charges Translation adjustments

Translation adjustments

- Received commitments, net bequests to be processed : $ 7 523 268

(1) Including bank overdraft : $

The exchange rate used is the monthly rate of December: 2018: 1 € = 1,14 2017: 1 € = 1,18

97 717

Médecins du Monde 2018 Financial Report

2018 INCOME STATEMENT (USD) Operating income

On 31/12/18

Institutional grants

On 31/12/17

Extraordinary income

54 402 323

52 491 710

Private grants

3 653 969

4 773 752

On capital transactions

Office grants (from private fundraising)

2 917 317

2 590 479

Reversals of provisions

Office grants (none private fundraising)

423 639

45 795 857

43 193 908

6 188 204

5 606 844

Extraordinary expenses

On management operations

Subscriptions

49 454

41 516

On capital transactions

Children sponsorship

11 358

32 808

Amortization and depreciation

Events income

5 711

37 982

Other revenue

362 968

111 357

Donations in kind Bequests Corporate fundraising

Transfer of operating costs TOTAL I : Operating income

Operating expenses

1 892 545

1 452 694

115 279 704

110 756 689

On 31/12/18

Purchase of raw materials and other supplies

32 701

35 282 398

33 843 767

3 647 168

2 996 424

Salaries & payroll

40 531 530

35 707 728

Payroll taxes

10 587 852

9 522 501

724 788

726 457

Taxes, duties & related

Depreciation and amortization On fixed assets On deferred charges Provisions and other allow ances/current assets Grants accorded by the Association Other expenses TOTAL II : Operating expenses

1- Operating Income/Loss

TOTAL VI : Extraordinary expenses

1 130

6 057

20 196

2 011

6 057

23 338

On 31/12/18

On 31/12/17

44 102

44 992

1 620

76 322

45 722

121 313

0 3 - Extraordinary items

-39 665

(TOTAL V) - (TOTAL VI)

-97 976

TOTAL VII : Corporate income tax

12 752

15 200

TOTAL VIII : balance carried forw ard from previous year

574 122

766 990

TOTAL IX : Commitments of expenditures to be relised on earmarked funds

108 434

290 213

TOTAL INCOME (I + III + V+ VIII)

117 519 975

113 117 925

TOTAL EXPENSES (II + IV + VI + VII + IX)

117 081 419

111 995 673

438 556

1 122 251

7 958 104

6 927 002

13 168 912

34 930

Other purchases and external charges

TOTAL V : Extraordinary income

On 31/12/17 0

On 31/12/17

11 075 254

Movement in stock of medicines & med. suplplies

On 31/12/18

On management operations

1 743 163

1 405 995

10 224 728

12 019 750

712 661

417 352

114 564 471

109 841 587

715 233

915 103

(TOTAL I) - (TOTAL II)

Financial income

On 31/12/18

Income from other investments and loans Other interest and similar income Foreign exchange gains

Reversal of provisions TOTAL III : Financial income

37 841

35 736

1 210 465

1 097 042

Net income on disposal of investments and loans

Financial expenses

On 31/12/17 0

411 787

438 094

1 660 092

1 570 908

On 31/12/18

On 31/12/17

Amortization and depreciation

938 763

Interest and similar expenses

768

115

1 410 509

1 326 383

Foreign exchange losses Net expenses on disposal of securities investment TOTAL IV : Financial expenses

2 - Financial income/loss

400 763

100

2 350 040

1 727 361

-689 947

-156 453

(TOTAL III) - (TOTAL IV)

The exchange rate used is the annual average rate: 2018: 1 € = 1,18 2017: 1 € = 1,13 68

(-) DEFICIT or (+) SURPLUS

Benefits in kind

The surplus on the Income Statement differs from the one on the Balance Sheet due to the different exchange rate used: annual average rate for the Income statement while monthly rate of December for the Balance Sheet.

78 117 188

15 233 176

1.2 Activities carried out abroad

2 - FUNDRAISING COSTS

The exchange rate used is the annual average rate: 2018: 1 € = 1,18 2017: 1 € = 1,13

Operating costs and other expenses

Fundraising costs

Social Programmes

TOTAL

7 958 104

215 447

10 538

7 732 118

117 519 974

438 556

IV - SURPLUS FUNDS FOR THE FINANCIAL YEAR

108 434

2 681 926

114 291 058

6 358 189

III - OUTSTANDING COMMITMENTS FROM EARMARKED FUNDS

TOTAL I - TOTAL EXPENDITURE FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - CHARGES TO PROVISIONS

3 - RUNNING COSTS

327 352

2.3 Costs related to applications for grants and other

public sector funding

458 837

2.2 Costs of fundraising from other private sources

14 446 986

14 582 506

1.1 Activities carried out in France

2.1 Costs of appeals to public generosity

92 699 693

1 - SOCIAL PROGRAMMES

EXPENDITURE 2018 Expenditures

56 039 262

53 421

472 132

55 620 551

4 351 737

348 906

14 446 986

14 795 892

26 255 691

10 217 231

36 472 922

Allocation (according to use) of funds raised from the general public for use during the financial year

Donations in kind

Volontary work (France)

TOTAL

VI - Total expenditure financed by the funds raised from the general public Balance of funds raised from the general public which are unrestricted and unused at the end of the financial year

VI - GRAND TOTAL

4 - OTHER REVENUE

3 - GRANTS AND OTHER PUBLIC SECTOR FUNDING

2 - OTHER PRIVATE FUNDS

1.2 Other revenue from appeals to public generosity

- Earmarked legacies and other gratuities

- Unrestricted legacies and other gratuities

- Earmarked donations by hand

- Unrestricted donations by hand

1.1 Donations and legacies received

1- FUNDS RAISED FROM THE GENERAL PUBLIC

Brought forward funds raised from the general public, unrestricted and unused at the start of thefinancial year

INCOME

7 958 104

1 199 787

6 758 316

117 519 574

574 122

2 301 066

114 644 787

1 670 050

54 402 323

3 665 326

2 923 027

6 188 204

55 234

45 740 623

51 984 061

54 907 088

Funds Raised 2018

INCOME AND EXPENDITURE STATEMENT : FUNDS RAISED FROM THE GENERAL PUBLIC - 2018 (previous method of accounting-identical to the one used in 2017) (USD)

5 913 414

56 039 262

54 560 582

346 507

2 923 027

6 188 204

55 234

45 740 623

51 984 061

54 907 088

7 392 095

Monitoring of funds raised from the general public for use during the financial year

Médecins du Monde 2018 Financial Report

75 760 701

1.1.1 Activities directly carried out

The exchange rate used is the annual average rate: 2018: 1 € = 1,18 2017: 1 € = 1,13

Operating costs and other expenses

Fundraising costs

Social Programmes

TOTAL

7 958 104

215 447

10 538

7 732 118

117 519 975

438 556

IV - SURPLUS FUNDS FOR THE FINANCIAL YEAR

108 434

2 681 926

114 291 059

3 954 997

394 457

1 141 801

15 236 648

16 772 905

III - OUTSTANDING COMMITMENTS FROM EARMARKED FUNDS

TOTAL I - TOTAL EXPENDITURE FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - CHARGES TO PROVISIONS

3 - RUNNING COSTS

public sector funding

2.3 Costs related to applications for grants and other

2.2 Costs of fundraising from other private sources

2.1 Costs of appeals to public generosity

2 - FUNDRAISING COSTS

613 693

76 374 394

1.2 Activities carried out abroad

1.1.2 Payments to other institutions

47 200

17 141 562

1.1.2 Payments to other institutions

17 188 762

1.1.1 Activities directly carried out

110 751 919

1.1 Activities carried out in France

1 - SOCIAL PROGRAMMES

EXPENDITURE

54 606 658

53 421

472 132

54 187 947

2 673 467

15 236 648

23 457 742

12 820 090

36 277 833

Allocation (according to use) of funds 2018 raised from the Expenditures general public for use during the financial year

Donations in kind

Volontary work (France)

TOTAL

VI - Total expenditure financed by the funds raised from the general public Balance of funds raised from the general public which are unrestricted and unused at the end of the financial year

VI - GRAND TOTAL

4 - OTHER REVENUE

3 - GRANTS AND OTHER PUBLIC SECTOR FUNDING

2 - OTHER PRIVATE FUNDS

1.2 Other revenue from appeals to public generosity

- Earmarked legacies and other gratuities

- Unrestricted legacies and other gratuities

- Earmarked donations by hand

- Unrestricted donations by hand

1.1 Donations and legacies received

1- FUNDS RAISED FROM THE GENERAL PUBLIC

Brought forward funds raised from the general public, unrestricted and unused at the start of thefinancial year

INCOME

7 958 104

1 199 787

6 758 316

117 519 975

574 122

2 301 066

114 644 787

1 509 685

54 402 323

3 665 326

3 083 392

6 188 204

55 234

45 740 623

51 984 061

55 067 453

Funds Raised 2018

7 506 382

54 606 658

54 720 946

346 507

3 083 392

6 188 204

55 234

45 740 623

51 984 061

55 067 453

7 392 095

Monitoring of funds raised from the general public for use during the financial year

INCOME AND EXPENDITURE STATEMENT : FUNDS RAISED FROM THE GENERAL PUBLIC - 2018 (new method of accounting) (USD)

Médecins du Monde 2018 Financial Report

ALSO CARES FOR INJUSTICE

DOCTORS OF THE WORLD

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