MĂŠdecins du Monde 2016 Financial Report
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Médecins du Monde 2016 Financial Report
A WORD FROM OUR TREASURERS In a context of controlled growth (+5% against +17% between 2014 and 2015), 2016 was very clearly a year of transition and initiatives. Transition, because we finalised our strategic plan and are currently developing an action plan. These two plans will improve how we target and orient our programmes, to provide us with more room for manoeuvre. Initiatives, because we implemented a multi-annual budget for 2017-2019 to help us contain and anticipate our growth, and we drew up an information systems master plan to improve our operational and financial steering. We ended the financial year with a surplus of €1 163 000, to which – subject to approval by the General Assembly – we will add €164 000 of costs to be allocated to our reserves for associative projects (“Mission France Innovative projects”, “Adaptation of our premises in France"). The final accounting result will thus be €1 327 000. This surplus, for the second year running, is a result of our efforts to implement stricter budget management - a sine qua non condition for ensuring we have the means to satisfy our ambitions and preserve a strong and positive image with our institutional donors.
Key figures for 2016: 1) Income in 2016 reached €97 million, representing growth of 29% since 2014 and 6% against 2015. In other words, income continued to grow, but at a slower rate than in previous years. Expenses are up by 5%, reaching €96 million. 2) The percentage of funds allocated to social programmes was high (83%) in 2016, as we ran 63 international projects in 45 countries, and 66 projects in 34 towns in France. The volume of operations in France remains stable with a strong field presence in terms of programmes, advocacy and communication (Calais, Paris, la Roya and Vintimille; unaccompanied minors programmes in Caen and Nantes, the closure or reorientation of Healthcare, advice and referral clinics, etc.). The development in international operations continues, reflecting the operational dynamism of the Emergency Department and Long-term Units (Iraqi-Syrian crisis, launch of programmes in Nigeria and Yemen, Haiti (hurricane), migrant programmes in Europe, etc.). 3) The distribution of our income is still evenly balanced, with 49% of funds for France and International operations generated by the generosity of the public, 46% by public-sector grants and the remainder by private-sector grants (4%) and other income (1%). As it is our firm intention to remain independent and free to make our own choices, choose our own causes and speak out as we see fit, we are also pursuing our efforts to diversify our public and private – sector funding sources. Over the last three years, we have succeeded in maintaining our financial independence, with an increase in income of almost 30%. 4) In a complex and competitive humanitarian environment, and despite more than €2 million being raised in 2015 for the Nepal emergency, French fundraising through appeals to the general public was still higher in 2016 (+1% against 2015, i.e. +€0.5 million), reaching €38.2 million.
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Médecins du Monde 2016 Financial Report
5) The MdM network also grew significantly, helping to diversify our sources of funding and playing an active part in the financing of our programmes (€9.3 million in 2016).
Issues and outlook for 2017: Budget construction is first and foremost a political action. To help us rethink our economic framework and apply a more pedagogical approach to our budget construction, one that is for the whole MdM community to understand and assimilate, we put in place a 3-year budget for the period 2017-2019 which will provide us with a prospective medium-term vision. This multi-annual budget reflects our Mission statement and the ambitions and priorities defined in our strategic plan: • Developing a pro-active private fundraising policy, focusing on the generosity of the public through investment in fundraising in France and within the International Network; • Setting up a Funding Strategy Unit in 2017 tasked with coordinating and optimising public and private sector fundraising; • Strengthening our financial solidity and safeguarding our reserves by presenting a balanced budget; • Controlling growth, with specific attention to: - improving the programming of projects to preserve our reaction capacity and room for manoeuvre; - containing HQ scope by promoting the decentralisation of operational steering and Regionalisation; • Consolidating the International Network to ensure a better balance between the activities of its different members and promoting partnerships and alliances.
Conclusion: Doctors of the World – Médecins du Monde France (MdM-F) is a growing organisation, and our controlled financial management provides us with the resources we need to fight our political battles and pursue our objectives of social change. Our fundraising has increased steadily over recent years thanks to our positive image. This growth is demanding. It requires adaptations and a constant effort to maintain a pragmatic approach to budget management that preserves the fragile balance between the essential consolidation of our organisation and our desire to be flexible, innovative, reactive and to work in close proximity to the field, our partners and civil society. It also raises the issue of our economic model and its corollary, our crucial financial independence – a guarantee of our political independence. Financial independence means the ability to design our programmes with our users, to take action without having to wait for funding, to be in a position to refuse donor funding or interference and to develop innovative programmes.
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Médecins du Monde 2016 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 2016 The Statutory Auditor’s Report 2016 Balance Sheet 2016 Income Statement 2016 Annual Income and Expenditure Statement: funds raised from the general public Part 2: Analysis of the 2016 Accounts
Part 3: Special Report on Regulated Agreements
Part 4: 2017 Budget
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Médecins du Monde 2016 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 2016
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MĂŠdecins du Monde 2016 Financial Report
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MĂŠdecins du Monde 2016 Financial Report
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2016 BALANCE SHEET
ASSETS
DEPREC + AMORT
GROSS
FIXED ASSETS Intangibles Licenses, patents etc. Advances and downpayments
NET 2016
Net 2015
978 993 0
699 036 0
279 957 0
1 206 101 7 727 330 9 980 561 0
0 5 756 183 9 181 465 0
1 206 101 1 971 147 799 096 0
2016
EQUITY Statutory funds 97 638 Gratuities/Bequests 0 General intervention reserve Associative project reserve Balance brought forward Capital grant 1 206 101 Surplus allocated to investments
Tangible assets Land Buildings Other fixed assets Fixed assets in progress
LIABILITIES
2 050 343 698 059 310238 (-) DEFICIT or (+) SURPLUS
Investments
15 245 0 15 613 073 331 812 0 24 745 0 15 984 875
15 245 0 15 259 804 420 000 0 0 4 745 15 699 794
1 162 540
265 082
17 147 415
15 964 876
2 489 486
1 906 084
936 357
1 305 621
17 856 3 761 647 4 907 444 75 606 9 054 290
69 211 2 762 459 4 454 381 70 438 7 185 165
21 307 529
18 002 646
TOTAL II
39 124 372
32 544 300
TOTAL III
0
0
59 697 630
51 720 881
Subtotal
TOTAL I
Other long-term securities Loans Other investments TOTAL I CURRENT ASSETS
20 962
0
20 962
660 782 826 821 21 401 549
0 0 15 636 684
660 782 826 821 5 764 865
20 962 PROV. for liabilities and Charges 607 706 717 533 DEDICATED FUNDS 5 708 580
336 605 28 296 146 2 706 24 798 788
35786,01 112 643 0 0
300 819 28 183 503 2 706 24 798 788
646 950
0
646 950
TOTAL II
54 081 195
148 429
53 932 766
46 012 301
TOTAL III
0
0
0
0
TOTAL IV
0
0
0
0
75 482 744
15 785 113
59 697 630
51 720 881
Stocks of medicines & med. Other receivables Securities Cash ADJUSTMENT ACCOUNTS Prepaid charges
323 798 19 171 582 4 350 261 21 340 043
2015
CURRENT LIABILITIES Bank borrowings (1) Supplier accounts payable & rel. acnts Tax and social liabilities Fixed asset liabilities & related acnts Other liabilities ADJUSTMENT ACCOUNTS
826 617 Deferred income
Deferred charges Translation adjustments
Translation adjustments
TOTAL ASSETS
- Received commitments, net bequests to be processed : € 6 853 610
TOTAL LIABILITIES (1) Including bank overdraft : € 17 856
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MĂŠdecins du Monde 2016 Financial Report
2016 INCOME STATEMENT Operating income Institutional grants Private grants Office grants (from private fundraising) Office grants (none private fundraising) Donations in kind Bequests Corporate fundraising Subscriptions Children sponsorship Events income Other revenue Transfer of operating costs TOTAL I : Operating income
On 31/12/16 43 321 137 3 376 167 2 325 629 332 576 38 371 835 5 208 935 0 45 850 9 248 26 446 219 768 1 982 228 95 219 819
On 31/12/15 39 193 695 2 697 472 1 928 299 396 564 37 931 882 6 098 881 401 067 39 820 0 25 243 327 359 512 439 89 552 721
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 allowances/current assets
On 31/12/16 10 951 599 2 889 29 909 484 2 735 522 29 720 773 7 904 426 0 602 792 0 2 032 557
On 31/12/15 12 970 167 -93 193 29 538 419 2 577 203 26 284 218 7 085 917 0 452 593 0 1 622 024
Grants accorded by the Association
8 875 444
8 029 357
Other expenses
1 156 162
424 484
93 891 649
88 891 190
1 328 170
661 531
TOTAL II : Operating expenses
1- Operating Income/Loss (TOTAL I) - (TOTAL II)
On 31/12/16 5 836 11 556 0 17 392
On 31/12/15 23 736 6 423 0 30 159
Extraordinary expenses On management operations On capital transactions Amortization and depreciation TOTAL VI : Extraordinary expenses
On 31/12/16 7 049 68 449 0 75 498
On 31/12/15 5 704 0 0 5 704
-58 106
24 455
19 781
21 464
TOTAL VIII : balance carried forward from previous year
952 614
227 745
TOTAL IX : Commitments of expenditures to be relised on earmarked funds
583 350
1 305 621
TOTAL INCOME (I + III + V+ VIII)
97 024 107
91 186 654
TOTAL EXPENSES (II + IV + VI + VII + IX)
95 861 567
90 921 572
(-) DEFICIT or (+) SURPLUS
1 162 540
265 082
Benefits in kind
6 826 840
6 057 470
3 - Extraordinary items (TOTAL V) - (TOTAL VI)
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 31/12/16 0 82 422 690 074 3 867 57 919 834 283
0 57 954 1 304 795 13 280 0 1 376 030
Financial expenses Amortization and depreciation Interest and similar expenses Foreign exchange losses Net expenses on disposal of securities investment TOTAL IV : Financial expenses
On 31/12/16 387 694 15 416 888 181 0 1 291 290
On 31/12/15 72 349 31 625 215 0 697 594
-457 007
678 435
2 - Financial income/loss (TOTAL III) - (TOTAL IV)
Extraordinary income On management operations On capital transactions Reversals of provisions TOTAL V : Extraordinary income
On 31/12/15
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TOTAL VII : Corporate income tax
Médecins du Monde 2016 Financial Report
1.
KEY EVENTS IN THE FINANCIAL YEAR
2.
CHANGES IN PRESENTATION, VALUATION OR ACCOUNTING METHODS
3.
ASSOCIATIVE PROJECTS
4.
ACCOUNTING RULES AND METHODS
5.
TANGIBLE AND INTANGIBLE FIXED ASSETS 4.1 - Fixed assets movements table 4.2 - Depreciation table 4.3 - Net book values table
6.
FINANCIAL FIXED ASSETS
7.
STOCK
8.
STATEMENT OF END-OF-YEAR CLAIMS
9.
ACCRUED INCOME
10. LIQUID ASSETS 10.1 Marketable values 10.2 Banks and cash funds 11. PREPAID COSTS 12. ORGANISATION’S OWN FUNDS 13. TABLE OF PROVISIONS 14. EARMARKED FUNDS 15. STATEMENT OF END-OF-YEAR DEBTS 16. TABLE OF LEGACIES AND DONATIONS IN PROGRESS 17. ACCRUED LIABILITIES 18. DEFERRED INCOME 19. OFF-BALANCE-SHEET COMMITMENTS 20. EMPLOYEE STATISTICS 21. OPERATING EXPENSES: DETAILS 22. INCOME AND EXPENDITURE STATEMENT
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These Annual Accounts were approved by the Board of Directors at their meeting of 21th April, 2017.
1.
KEY EVENTS IN THE FINANCIAL YEAR
The 2016 financial year was characterized by a surplus (+€1.2M against +€0.3M in 2015). The increase of our activities is more moderate than last year increase (+5% against +17% in 2015). The share of expenses dedicated to social programs increased in 2016 up to 82.6% of our expenditures against 81.6% in 2015. Changes to the range of international programmes in 2016:
-
-
-
Closed Programmes: France: Reception, healthcare and advice centers (RHAC) Angers / RHAC Nantes / RHAC Valenciennes / Homeless Poitiers Asia : Health and Environment Philippines / Emergencies Nepal Africa: Nutrition Burkina Faso Djibo / part of sexual and reproductive health Niger / Children in the streets DRC / Maternal and child health Madagascar / Liberia / Health system strengthening ICR / Mali Middle-East : Jordan
-
Opened/closed programmes during the year: Boat Italy
-
2.
Opened programmes: France: Unaccompanied foreign minors in Caen / Migrants Rights and Health Nantes / Health in rural areas Haute Vallée de l’Aude / Health in fragile urban areas South Lille / Cervical cancer prevention transversal programme Africa: Emergencies Nigeria / DRC youth and HIV / Somalia sexual and reproductive health Asia: Nepal Reconstruction Europe: Migrants Bulgaria, Serbia and Calabria
CHANGES IN PRESENTATION, VALUATION OR ACCOUNTING METHODS
Change to the method of calculating exchange rate fluctuations on revenues linked to funding contracts in foreign currency (items concerned: income from the financial year and deferred income). When a funding contract is signed to finance field operations, the contract is recorded under donor receivables on the assets side of the balance sheet and offset on the liabilities side as deferred income, carried over into income as the operation progresses. Until then, deferred income was considered as debt in euros, whatever the currency of the contract signed with the donor, and annual incomes were evaluated on the basis of the offset in euros of expenses committed in the field. Consequently, all exchange rate fluctuations during the contract’s lifetime were borne in the financial year in which this contract ended. From now on, in order to more accurately report on the annual economic outcome of operations financed through funding contracts in foreign currency, annual incomes related to field operations will be posted in the currency of the contract concerned.
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Consequently, exchange rate fluctuations will be recorded as the contract proceeds, where necessary. As a corollary, deferred income from funding contracts concluded in foreign currency will now be considered as foreign currency debt and a provision for exchange rate fluctuations made at year-end if the exchange rate as at 31/12 of the currency used in the underlying contract calls for this. Overall, the loss or profit generated on the contract will be identical, but it will no longer be apportioned at the end of the project, but as this project goes along. The impact of this change in calculation method is evaluated at €681 604,31 in supplementary expenses for the financial year 2016.
3.
ASSOCIATIVE PROJECTS
The General Assembly of 2015 and of 2016 voted in favour of constituting two reserves for specific associative projects, one for financing innovative projects in France and the other for adapting the premises used in France. In conformity with the French General Chart of Accounts for Associations, the appropriation to reserves of expenses for associative projects must be approved by the General Assembly. Expenses recorded in 2016 against the associative project “Innovative projects – France missions”, included in the surplus of €1 162 540,12, amounted to €162 651,64 overall. The expenses recorded in 2016 against the associative project “Adaptation of premises”, included in the surplus of €1 162 540,12, amounted to €1 525,15 overall If the 2017 General Assembly approves these expenses and their allocation to the "Innovative projects – France missions" and "Adaptation of premises” reserves, the accounting result of the financial year for distribution, restated with the cost of these expenses, will be €1 326 716,91 instead of €1 162 540,12 (€1 162 540,12 + €162 651,64 + €1 525,15).
4.
ACCOUNTING RULES AND METHODS
The financial year extended over 12 months, from the 1st January to the 31 December 2016. The accounts are drawn up in euros. On the 31 December 2016, the Balance Sheet showed a total of 59 697 630 euros, while the Income Statement, presented in the form of a table, showed a surplus of 1 162 540 euros (before cost allocation on the reserve account for associative projects).
4.1. BASIC ACCOUNTING PRINCIPLES The accounts have been drawn up -
in accordance with basic accounting conventions, and the following principles in particular: The principle of prudence; Consistency of accounting methodology from one financial year to the next; Continuity of operations; Non-compensation; Independent financial years.
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in compliance with the general rules for the drawing up and presentation of annual accounts applicable in France, and in compliance with the following regulations in particular: CRC 99-01 regarding the rules and regulations for the drawing up and presentation of annual accounts for French associations, foundations and endowment funds; ANC 2014-03 of 05 June 2014 regarding the general chart of accounts, modified by regulation ANC 2015-06 on the 23th of November 2015; CRC 2008-12 regarding the drawing up of the Annual Income and Expenditure Statement for French associations and foundations.
4.2. FIXED ASSETS AND DEPRECIATIONS The Association’s fixed assets are entered in the accounts at their acquisition cost (purchase price plus incidental costs). They are recorded and valued in accordance with the standards laid down by the regulation regarding assets. Fixed assets which can be broken down: The only fixed asset found which could be broken down was the building housing the Association’s Head Office in Paris. It was broken down as follows:
NET VALUE On 31 december 2016 LAND
1 206 101
BUILDING
1 352 670
TOTAL
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’.
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The following methods have been used to calculate depreciation over the financial year : · · · · · · · · · · ·
Software Software developed by subcontractors Building Fixtures & fittings Transportation equipment (Headquarters) Transportation equipment (Programmes) IT equipment IT equipment (International Programmes) Office equipment and furniture Medical equipment Communications equipment
Straight-line, 1 - 3 years Straight-line, 3 years Straight-line, 20 years Straight-line, 6 years and 10 years Straight-line, 3 years and 4 years Straight-line, 2 years and 3 years Straight-line, 3 years Straight-line, 2 years Straight-line, 6 years Straight-line, 6 years Straight-line, 6 years
The basis for an asset’s depreciation is its gross value minus its residual value, which is taken to be the sum (minus anticipated disposal costs) which the Association would obtain if it disposed of the asset on the market at the end of its service life. The residual value is taken into account whenever the service life of an asset is noticeably shorter than its anticipated physical life. The Association’s Head Office is a fixed asset which can be broken down. Its service life has been set at 20 years, but its physical life will no doubt be much longer. On 31/12/2016, the net book value of our Marcadet building was €1 353K for the building itself, and €1 206K for the land, which is not depreciable. In March 2016, an expert valued the Marcadet building and land at €18 400K. Since the net book value is clearly lower than the residual value (€1 353K for the building plus €1 206K for the land), no allowance for depreciation has been entered in the accounts since 31/12/2004. Financial fixed assets: Long-term securities: these are investment securities held for more than 1 year. On 31/12/2016, these amounted to €21K. Loans: Médecins du Monde frees itself from the obligation to take part in any building effort by paying its contribution to accredited collecting bodies in the form of interest-free loans, repayable over 20 years. On 31/12/2016, these totalled €661K. Other financial fixed assets: this heading corresponds to advances, deposits and guarantees paid to third parties in France and abroad. On 31/12/2016, these came to €827K.
Provision for depreciation on fixed assets: No provision for depreciation on fixed assets was recorded on the 31/12/2016.
4.3. STOCK AND STOCK DEPRECIATION Stock consists mainly of medical and surgical equipment, medicines, emergency kits, vehicles and communications equipment.
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Stock is entered in the accounts at its acquisition cost, and valued using the ‘first in, first out’ (FIFO) costing method. Depreciation is recorded if the actual value is lower than the entry value at the close of the financial year.
4.4. CLAIMS These are valued at their nominal value. Depreciation is recorded whenever their balance-sheet value is lower than their nominal value. Claims in foreign currency are accounted using the InforEuro exchange rate on the month concerned by the claim. The InforEuro exchange rate is set by the European Commission. Any unrealised losses on the 31st of December, resulting from the difference between the InforEuro exchange rate and the closure rate on the 31/12/2016, 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 31/12/2016, 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’. 16
Médecins du Monde 2016 Financial Report
b. At the close of the financial year, the Association decides how far the financed project has progressed (by comparing actual expenditure to the expenditure forecast in the funding agreement) and how much of the grant should therefore be recognised in the accounts for that financial year. Any administrative costs covered by the contract are also taken into account. c. The difference between the total grant funding awarded and the portion recorded as income is shown under deferred income. This represents the share of the grant linked to future financial years. d. Any agreements signed after the close of the financial year, but used to fund eligible expenditure for that year, are recorded as accrued grants. Ever since this more accurate accounting method has been applied to the outstanding portions owed by funding agencies, i.e. since the financial year 2012, the Association has not needed to set up earmarked funds to subsidise its international programme operations.
4.9. SUBSIDIES AND INVESTMENT GRANTS – FRENCH PROGRAMMES Operating subsidies are included under operating income for the financial year during which the Association is notified of the decision authorising the subsidy. If the subsidies apply in whole or in part to a period prior to the close of the financial year, a pro rata calculation is made, so that the income in question can be allocated to the relevant financial year, and, where necessary, deferred income can be entered in the accounts. Investment grants allocated to property which can be replaced by the Association are kept with liabilities under the heading ‘Non-recoverable Association funds’. Investment grants allocated to property which cannot be replaced by the Association are allocated to non-replaceable property and recorded in the investment grants account, then reclaimed on the Income Statement, as the item of property gradually depreciates.
4.10. EARMARKED FUNDS FROM GRANTS, DONATIONS AND LEGACIES Whenever income raised from French donors, general public and testators and allocated by them to a dedicated purpose, and has not been used for that particular purpose by the end of the financial year, the restricted funds are entered in the accounts under balance-sheet liabilities. They represent the unused part of any restricted grants, donations and legacies, and are allocated via a specific expenditure account entitled ‘Outstanding commitments from earmarked funds’. Whenever these donations and legacies are used in the course of subsequent financial years, the earmarked funds are recovered using a specific income account entitled ‘Unused, earmarked funds brought forward from previous financial years’.
4.11. ASSOCIATIVE PROJECTS Reserve for the associative project is established and used as follow: - Associative projects must be compliant to the associative object - Expenditures are clearly identified and not assimilated to usual expenditure The allocation for an associative project and the expenditure commitments affectation concerning this project must be voted during the General Assembly, as well as the affectation to the general reserve of the unused funds. 17
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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 31/12/2016, this heading included: -
provision for litigation and liabilities (mainly related to life insurance policies, dealings with ombudsmen, agreements with funding agencies, risks concerning our international projects); provision for retirement benefits. provision for unrealised exchange rate losses
Provision for retirement benefits: The value of retirement benefits for Médecins du Monde’s total workforce (excluding local staff in countries other than France) was calculated. When calculating total retirement commitments (including social security contributions), the following were taken into account: -
retirement age: 65 years turnover rate averaged out for the last 4 years pay increases of 1% per annum annual discount rate: 1.31% 2015 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 2016, legacies in progress totalled €3 500 142 and legacies receivable came to €6 853 610. 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. 18
Médecins du Monde 2016 Financial Report
4.14. BENEFITS IN KIND The receipts and expenditure relating to Médecins du Monde’s activities over the course of the financial year can be clearly identified thanks to our accounting records and financial statements. However, our accounts only provide a partial picture of the way we operate. The fact is that as an Association we receive numerous voluntary contributions which are never entered in the accounts. These voluntary contributions are made of the commitment of hundreds of unpaid men and women, without them we would not be able to run our programs, but they are also made of goods, services put to our disposal freely by companies, associations, foundations or donors. For example, Médecins du Monde benefits from gifts of equipment, goods or medicines, as well as free communications materials and media. This kind of non-financial giving appears at the foot of the Income Statement and of the Income and Expenditure Statement, and it is thanks to contributions of this kind that the Association is able to save money and expand its operations still further. Donations in kind: The valuation of goods and services in kind is based on official documents, supplied by the donors, certifying the financial value of the goods or services being given to Médecins du Monde. This financial value reflects the cost price of the goods or services in question. The valuation of services in kind for the year 2016 came to €1 263K, compared with €1 051K for 2015. 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 2016, the French volunteers entered on the system worked 240 772 hours, and would have cost us approximately €5 563K. This valuation is not an accurate reflection of all the work done by volunteers in the course of an entire year, since it is based on individual volunteers’ declarations of the hours they have spent working for the Association. Inevitably, this method of record-keeping fails to pick up every last detail and therefore ends up underestimating the true picture. International voluntary work: An international voluntary worker is a physical person over the age of eighteen who fulfils the following 3 conditions:
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Médecins du Monde 2016 Financial Report
1) Signs a voluntary service contract with a French voluntary organisation promoting international solidarity and recognised by the French Ministry of Foreign Affairs or Ministry for Overseas Development. 2) Under this remit, takes part in an operation promoting international solidarity. 3) Completes one or more missions of general public interest in a country not on a list determined by French government decree (Decree of 02 May 1995). Under the terms of a voluntary work contract, a voluntary worker must receive: training; a regular subsistence allowance and benefits in kind; payment of travel expenses and repatriation; medical and civil liability insurance; Social Security cover; and technical support. Welfare protection is also guaranteed under the provisions regarding voluntary insurance for French expatriates (the Fund for French nationals abroad [CFE]). The value of the contribution made by international voluntary workers is assessed using the following method: Médecins du Monde knows the exact number of voluntary workers engaged in one or more programmes over the course of a financial year. This number of variable-length programmes equates to a certain number of days, and that number of days can be expressed in terms of their full-time equivalence per month/per person. Each volunteer’s working profile is matched to a similar function already carried out within Médecins du Monde, allowing the theoretical cost to payroll to be calculated using Médecins du Monde’s internal pay scale. Any allowances and benefits in kind which have actually been paid to these voluntary workers are deducted from this total. On 31 December 2016, international voluntary worker contributions totalled €643K.
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 31/12/2016 amounted to €83 484.
Administrators’ expenses: In the course of the financial year 2016, the Association’s administrators incurred travel and programme expenses of €90 054. These included travel for international programmes. Remuneration of the Association’s Chair: In compliance with the statutory provisions and with Article 261-7-1-d and Article 242 C of Appendix II of France’s General Tax Code, Médecins du Monde remunerates the position of Chair of the Board of Directors. The upper limit for this remuneration is set at 1.3 times the ceiling set by French Social Security or by whichever body is used as a reference instead. This remuneration, which is intended to be a gross amount, may not be paid for more than 3 terms of one year each, whether or not they are consecutive. The remuneration paid for 2016 came to €49 452.
20
Médecins du Monde 2016 Financial Report
Remuneration of the Association’s three most senior executives, whether volunteers or paid employees (Article 20 of Act 2006-586 of 23 May 2006): The Association’s three most senior executives, whether volunteers or paid employees, are the Chair, the Treasurer and the General Secretary. Only the Chair is remunerated, as indicated in the previous paragraph, i.e. € 49 452 in 2016.
Events occurring after the close of the financial year: None.
21
Médecins du Monde 2016 Financial Report
5. TANGIBLE AND INTANGIBLE FIXED ASSETS 5.1. Fixed assets movements table INTANGIBLES
01/01/2016
Subcontracted software Licences (software) Subtotal… IFA Advances
TOTAL INTANGIBLES TANGIBLE ASSETS
305 037 388 699 693 736 0 693 736 01/01/2016
Acquisitions
Fxd asset alloc. In prog. &
Disposals
56 680 2 736 59 416 0 59 416 Acquisitions
0 84 397 84 397 0 84 397
310 238 0 310 238 0 310 238 Fxd asset alloc. In prog.
Disposals
31/12/2016 671 955 307 038 978 993 0 978 993 31/12/2016
LAND Land Marcadet land Subtotal …
1 754 1 204 347 1 206 101
0 0 0
0 0 0
0 0
1 754 1 204 347 1 206 101
Buildings Marcadet building Fixtures/fittings & improvements Marcadet Fixtures/fittings & improvements Int. Prog. Subtotal …
0 2 761 874 4 862 135 77 570 7 701 579
0 0 41 722 5 713 47 435
0 0 21 685 3 310 24 995
0 0 0 3 310 3 310
0 2 761 874 4 882 172 83 283 7 727 330
1 937 986 5 426 363 2 391 966 671 975 549 645 142 540 428 420 71 859 11 620 754 310 238 20 838 672
190 448 155 321 100 709 9 061 0 3 646 575 958 460 718 0 508 153
1 055 512 386 040 599 445 23 382 12 851 11 447 0 8 924 2 097 601 0 2 122 595
0 0 0 -3 310 0 0 0 0 -3 310 -310 238 -310 238
1 072 922 5 195 644 1 893 231 654 344 536 794 134 738 428 995 63 893 9 980 562 0 18 913 992
21 532 408
567 569
2 206 992
0
19 892 985
BUILDINGS
OTHER TANGIBLE ASSETS Fixtures and fittings Transportation equipment IT equipment Office equipment Office furniture Medical equipment Communication equipment Audiovisual equipment Subtotal … Tangible assets in progress
TOTAL TANGIBLE ASSETS TOTAL
22
Médecins du Monde 2016 Financial Report
5.2. Depreciation table INTANGIBLES
01/01/16
Subcontracted software Licences (software)
TOTAL INTANGIBLES TANGIBLE ASSETS BUILDINGS
Amort. 151 443 35 892
0 84 397
395 501 303 535
596 098
187 335
84 397
699 036
Deprec.
1 409 204 4 242 032 5 651 236
Subtotal…
31/12/16
244 058 352 040
01/01/16
Building Fixtures & fittings (Bdg)
Recovery
Recovery
0 127 280 127 280
31/12/16
0 22 333 22 333
1 409 204 4 346 979 5 756 183
OTHER TANGIBLE ASSETS Fixtures & fittings Transportation equipment IT equipment Office equipment Office furniture Medical equipment Communication equipment Audiovisual equipment
69 115 81 9 8 2
TOTAL TANGIBLE ASSETS
1 642 690 5 223 163 2 264 057 635 019 524 628 137 300 426 696 69 141 10 922 695 16 573 931
704 083 645 985 428 232 567 533 288 177 415 457
121 050 445 382 038 447 0 8 924 2 029 407 2 051 740
723 272 4 953 196 1 746 258 621 622 521 017 128 086 427 264 60 749 9 181 465 14 937 648
TOTAL
17 170 029
602 792
2 136 137
15 636 684
Subtotal…
989 385 599 23 12 11
5.3. Net book values table INTANGIBLE ASSETS
GROSS AMOUNTS ON 31/12/2016
671 955 307 038 0 978 993
Subcontracted software Licences (software) Advances on intangible assets
TOTAL INTANGIBLES
GROSS AMOUNTS ON 31/12/2016
TANGIBLE ASSETS
TOTAL AMORTISATION ON 31/12/2016
395 501 303 535 0 699 036
TOTAL AMORTISATION ON 31/12/2016
NET BOOK VALUE ON 31/12/2016
276 454 3 503 0 279 957
NET BOOK VALUE ON 31/12/2016
LAND Land Marcadet Land Subtotal…
1 754
0
1 754
1 204 347
0
1 204 347
1 206 101
0
1 206 101
BUILDINGS Building
0
0
0
Marcadet building
2 761 874
1 409 204
1 352 670
Fixtures/fittings & improvements Marcadet
4 882 172
4 274 022
608 150
Fixtures/fittings & improvements Int. Prog.
83 283
72 957
10 326
7 727 330
5 756 183
1 971 146
Subtotal… OTHER TANGIBLE ASSETS Fixtures & fittings
1 072 922
723 272
349 650
Transportation equipment
5 195 644
4 953 196
242 448
IT equipment
1 893 231
1 746 258
146 973
Office equipment
654 344
621 622
32 723
Office furniture
536 794
521 017
15 777
Medical equipment & supplies
134 738
128 086
6 652
Communication equipment
428 995
427 264
1 732
Audiovisual equipment Subtotal… Tangible assets in progress TOTAL TANGIBLES TOTAL
23
63 893
60 749
3 143
9 980 562
9 181 465
799 097
0
0
0
18 913 992
14 937 648
3 976 344
19 892 985
15 636 684
4 256 302
Médecins du Monde 2016 Financial Report
6. FINANCIAL FIXED ASSETS
FINANCIAL FIXED ASSETS
31/12/16
Other long-term securities Housing construction loans (tax on French employers) Deposits & guarantees Total ...
20 962 660 782 826 821 1 508 565
7. STOCK
STOCK
31/12/16
End of year amount of stock
336 605
Depreciation of vehicle stock
-35 786
Net stock amount
300 819
8. STATEMENT OF END-OF-YEAR CLAIMS
CLAIMS STATEMENT
Gross amount
1 year maximum
Over 1 year
Relating to fixed assets: Loans (deposits and guarantees)
660 782
18 634
642 148
Other financial fixed assets
826 821
115 000
711 821
1 487 603
133 634
1 353 969
59 244
59 244
25 399 887
17 324 155
41 545
41 545
104 898
104 898
0
0
Various debtors
1 707 551
1 707 551
Accrued income
794 031
794 031
Legacies in progress
188 991
68 475
120 516
Total 2 …
28 296 146
20 099 898
8 196 248
Total 3 …
646 950 646 950
646 950 646 950
0
30 430 699
20 880 483
9 550 216
Total 1 … Relating to current assets: Account receivables Funding bodies personnel and related accounts Social security bodies State
Prepaid costs
GRAND TOTAL (1 + 2 + 3) Amount of :
- loans granted during financial year - loan repayments over financial year
24
0
8 075 732
Médecins du Monde 2016 Financial Report
9. ACCRUED INCOME
OTHER RECEIVABLES :
On 31/12/2016
-Discounts, reductions & rebates obtainable and credits receivable
152 228
- Social security bodies - accrued income
64 143
- State - accrued income
0
- Accrued income * Grants income * other accrued income * International network
794 031 229 759 262 164 302 107 TOTAL ACCRUED INCOME :
10.
1 010 402
LIQUID ASSETS
10.1. Marketable values INVESTMENTS
Share price on 31/12/2016
Purchase value
SICAV or FCP Shares Term deposit account
0
0
0
2 706
2 706
0
9 785 743
Term deposit account interests
0
TOTAL
9 788 449
10.2. Banks and cash funds GROSS VALUE
On 31/12/2016
Values for collection
3 536 243
Bank balances
20 761 193
Cash in hand
501 351
TOTAL
24 798 788
11. PREPAID COSTS PREPAID COSTS
On 31/12/2016
Suppliers' charges billed in advance
646 950
TOTAL
646 950
25
latent revaluation gains
latent revaluation losses
0
MĂŠdecins du Monde 2016 Financial Report
12. ORGANISATION’S OWN FUNDS
31 December 2015 15 245 0 15 259 804 420 000 0 0 0 0 4 745 0
OWN FUNDS Statutory Reserve Gratuities/Legacies General Reserve: Operations Reserve: Associative project Balance brought forward Emergency Reserve Operating Reserve Investment grants / renewable goods Investment grants Surplus allocated to investments
TOTAL 2015 Surplus 2016 Surplus TOTAL OWN FUNDS
Increase
Reduction
31 December 2016
0 0 353 270 119 359 0 0 0 24 745 0 0
0 0 0 207 547 0 0 0 0 4 745 0
15 245 0 15 613 074 331 812 0 0 0 24 745 0 0
15 699 794
497 374
212 292
15 984 876
265 082 0
0 1 162 540
265 082 0
0 1 162 540
15 964 876
1 659 914
477 374
17 147 416
13. TABLE OF PROVISIONS
NATURE OF PROVISIONS Provisions for Provisions for Provisions for Provisions for Provisions for
On 31/12/15
contingency and loss litigation foreign exchange losses retirement benefit exchange loss Total 1
Provisions for depreciation On financial fixed assets Other provisions for depreciation Total 2
GRAND TOTAL (1 + 2)
26
Allowance for financial year
Write-back of provisions
On 31/12/16
555 935 833 398 516 751 0 1 906 084
252 315 1 332 564 420 983 387 694 2 393 556
477 315 816 087 516 751 0 1 810 153
330 935 1 349 874 420 983 387 694 2 489 486
0 348 919 348 919 2 255 003
0 26 695 26 695 2 420 251
0 227 185 227 185 2 037 338
0 148 429 148 429 2 637 915
Médecins du Monde 2016 Financial Report
14. EARMARKED FUNDS
EARMARKED FUNDS
EFs at start of financial year
Provisions for outstanding commitments (+)
Write-backs of EFs
EFs at end of financial year
(-)
(=)
From grants
699 986
583 350
484 018
799 318
AFRICA ASIA EUROPE FRANCE MIDDLE EAST
0 332 004 0 367 982 0
0 0 0 583 350 0
0 116 726 0 367 292 0
0 215 278 0 584 040 0
605 635
0
468 596
137 039
0 558 206 39 729 7 700 0
0 0 0 0 0
0 421 167 39 729 7 700 0
0 137 039 0 0 0
From legacies
0
0
0
0
FRANCE
0
0
0
0
1 305 621
583 350
952 614
936 357
0 890 210 39 729 375 682 0
0 0 0 583 350 0
0 537 893 39 729 374 992 0
0 352 317 0 584 040 0
1 305 621
583 350
952 614
936 357
Gross amount 1 year maximum as at 31/12/2016
Over 1 year to 5 years maximum
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
DEBTS STATEMENT Borrowings and similar debts
17 856
17 856
0
Accounts payable and related accounts
3 761 647
3 761 647
0
Personnel and related accounts
2 153 227
2 153 227
0
Social security bodies
2 166 853
2 166 853
0
587 364
587 364
0
75 606
75 606
0
9 054 290
3 603 598
5 450 692
TOTAL DEBTS …
17 816 843 21 307 529
12 366 152 16 280 838
5 450 692 5 026 690
GRAND TOTAL
39 124 372
28 646 990
10 477 382
State taxes Fixed asset debts and related accounts Other debts Deferred income
27
Médecins du Monde 2016 Financial Report
16. TABLE OF LEGACIES AND DONATIONS IN PROGRESS Ongoing legacies Ongoing legacies and donations on and donations on 31/12/2015 31/12/2016
TOTAL
3 297 994
3 500 142
17. ACCRUED LIABILITIES
ACCRUED LIABILITIES
On 31/12/2016
Borrowings and debts with credit institutions: - Accrued interest, not yet matured Accounts payable and related account - Invoices not yet received Tax and social security debts - Accrued paid leave debts - Other personnel costs payable - Social security bodies - accrued contributions - Accrued State taxes Other debts - Miscellaneous expenses accrued
TOTAL ACCRUED EXPENSES
0 0
959 665 959 665
3 419 903 1 473 366 620 162 989 035 337 339
195 592 195 592
4 575 160
18. DEFERRED INCOME
DEFERRED INCOME
On 31/12/2016
Foreign Grants - Africa - America - Asia - Europe - Middle East - Cross countries
21 235 644 5 704 612 3 000 876 3 328 606 545 711 7 042 905 1 612 934
France Grants
71 885
TOTAL :
21 307 529
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Médecins du Monde 2016 Financial Report
19. OFF-BALANCE-SHEET COMMITMENTS
18.1. Commitments received Commitments received (legacies and donations)
Legacies
Number of testamentary donations accepted by the board and not received Valuation of the amount to be received
Donations
159 6 818 892
2 34 718
Total on 31/12/2016 161 6 853 610
18.2. Given Commitments
LEASING COMMITMENTS
Residual Paid royalties Redevances restant à payer Financial period Cumulated Less than a year From 1 to 5 years Total to be paid purchase price 18 139 52 180 3 511 0 3 511 2 625
(in euro) Rolling stock
TOTAL…
18 139
LEASING COMMITMENTS
52 180
3 511
0
3 511
Depreciation charges Financial year Cumulated 43 036 12 845 39 004
Entry Costs
(in euro) Rolling stock
TOTAL …
43 036
12 845
Other commitments
Total on 31/12/2016
Security, guarantee, bond Security in rem
none none
29
39 004
2 625
Net value 4 032 4 032
Médecins du Monde 2016 Financial Report
20. EMPLOYEE STATISTICS MdM workforce as at 31 December 2016 1 749 1 520 18 130 81
international programs staff national employees international solidarity volunteers expatriate employees head office IOD employees
2 272 2 137 117 18
French sector staff volunteers employees in the field head office employees
432 305 127
operational support staff voluntary association managers head office employees
For a total of more than 4 000 MdM staff
Pay: Average of the 3 highest gross annual salaries: €73 614 Average of the 3 lowest gross annual salaries: €23 013 Average gross annual salary: €36 276 Ratio 3 highest gross annual salaries/3 lowest gross annual salaries: 3.20 The lowest gross annual salary is higher than French minimum wage: + 20.70%.
30
MĂŠdecins du Monde 2016 Financial Report
21. OPERATING EXPENSES: DETAILS
BREAKDOWN OF AND CHANGES IN OPERATING EXPENSES Operating expenses
2016
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
2015
2016/2015
2 889 905 937 134 135 153 937 124 655 58 134 1 032 878 6 309 395 926 955 146 992 194 848 27 924 880 036 55 774
-93 193 1 515 640 119 384 455 130 71 506 90 860 1 198 539 7 029 133 935 699 168 652 169 830 25 327 1 137 980 52 486
Purchases
10 954 488 7 723 892 18 139 5 095 756 1 262 681 355 459 49 712 180 958
12 876 974 7 614 972 15 038 4 621 064 1 193 364 464 121 81 981 179 127
Outside services
14 686 598 212 700 1 062 477 2 399 715 2 572 011 666 854 5 531 072 2 272 288 390 785 114 983
14 169 667 335 869 1 043 200 2 043 728 2 803 928 530 211 5 782 225 2 448 294 285 211 96 086
Other outside services
15 222 886 2 735 522 29 720 121 7 905 078
15 368 752 2 577 203 26 284 218 7 085 918
Personnel costs
37 625 199 1 156 162 8 875 444
33 370 136 424 484 8 029 357
Other management costs Allowances for depreciation
10 031 606 2 635 350
8 453 841 2 074 617
6% 13% 12% 13% 172% 11% 19% 27%
TOTAL
93 891 649
88 891 190
6%
Subcontracting Leasing charges Rental and rental charges Maintenance and repairs Insurance premiums Studies and research Miscellaneous Outside staff Local staff Fees Advertising and publications Transportation Trips / Receptions Postage and Telecommunications Bank charges Miscellaneous Taxes and similar payments Salaries and pay French NI contributions Miscellaneous management costs Grants paid by the association
31
-103% -40% 12% -66% 74% -36% -14% -10% -1% -13% 15% 10% -23% 6% -15% 1% 21% 10% 6% -23% -39% 1% 4% -37% 2% 17% -8% 26% -4% -7% 37% 20% -1%
Médecins du Monde 2016 Financial Report
22. INCOME AND EXPENDITURE STATEMENT The Annual Income and Expenditure Statement (IES) was drawn up in compliance with the provisions of Regulation No. 2008-12 of the Accounting Regulatory Committee. The IES explains how the Association’s overall resources were used, i.e. how they were divided up between social programmes, fundraising costs and operating costs. The totals in columns 1 and 2 match the total expenditure and income in the Income Statement. The IES also gives a separate breakdown of the way in which funds raised through public giving have been used. Columns 3 and 4 enable the monitoring of all such funds, whether they have been raised in the same financial year or brought forward from previous years’ unused funds. The total shown on the Income and Expenditure Statement is always identical to the totals on the Balance Sheet and on the Income Statement. In 2009, the Board of Directors of Médecins du Monde ruled on several aspects of the IES, including: -
the amount of unrestricted, unused funds raised from the public carried forward at the start of the financial year; the definition of Médecins du Monde’s social programmes (in France and abroad); the definition of fundraising costs; the definition of operating costs; and the allocative keys available for indirect costs.
This year, no changes were made to our methods or to the definitions of the various headings used (social programmes, fundraising costs and operating costs).
32
Médecins du Monde 2016 Financial Report
Social Programmes: Médecins du Monde’s vocation is to treat the most vulnerable people groups in crisis situations or situations of exclusion, both here in France and Worldwide, highlighting the harm caused by crises and by threats to people’s health and dignity. Its aim is to help prevent such harm and, through its witness-bearing initiatives, to denounce human rights violations, in particular the obstacles preventing access to treatment. As an organisation authorised and empowered by the competent authorities, the Association also aims to promote adoption, in order to help those children who have been put up for adoption legally by the authorities in their country of origin, and who cannot be kept safe in any other way.
Social programmes therefore include the following: -
-
operations carried out in France, arranged by type of activity (centres, outreach, regional delegations, exploratory programmes, witness-bearing programmes, coordination, management and monitoring costs); operations carried out abroad, arranged by continent, and including adoption programmes, of exploratory programmes and of witness-bearing programmes, coordination, management and monitoring costs).
harm reduction, and associated (direct costs of and associated
Information and communications costs are shown under social programmes, since the Board of Directors has decided that these activities constitute an integral part of the Association’s social purpose.
Guidelines for the allocation of expenses to social programmes: Expenditure on social programmes is the sum of the costs incurred by the Association in pursuit of its operations. Expenditure on social programmes therefore includes direct costs (charged as soon as transactions are entered in the accounts) and costs that cannot be directly assigned and are therefore shared out using allocative keys. Only an expense which has actually been incurred is assigned to a specific social programme. Provisions are recorded under the headings ‘Charges to Provisions’ or ‘Write-back of Provisions’ in the Annual Income and Expenditure Statement, depending on whether they are being created or recovered. Allowances for depreciation can be classed as operational expenses if the above definition applies. Only financial costs linked directly to social programmes (and which would disappear if the social programme in question came to an end) should be recorded under social programmes.
33
Médecins du Monde 2016 Financial Report
Fundraising Costs: -
Costs of appeals for public giving: This heading includes the costs of appealing for donations (marketing, direct mail advertising, newspaper inserts, etc.) and the costs of processing donations, issuing tax receipts, and finding and managing legacies, as well as donations linked to life insurance, managing special events, dedicated personnel costs, and the costs of fundraising from other network members. Some of the costs for the donors’ newsletter are charged to this heading (cf. allocative keys below). -
The costs of finding other sources of private funding: This heading includes the costs of the Corporate Sponsorship & Partnerships Department;
-
The costs of obtaining grants and other public-sector participation: This heading includes the costs of the department dedicated to public-sector and institutional funding [DDI].
Operating Costs:
Operating costs include the costs of the following departments: -
Administration and Legal Affairs; Directorate of Financial Management and Head Office Accounts; IT (excluding its share of provisions for depreciation divided up on the basis of the guideline below); General Services (excluding their share of allowances for depreciation divided up on the basis of the guideline below); HR directorate; financial costs (excluding costs directly attributable to particular programmes); some salary-based taxes; Head Office depreciation (excluding its share of allowances for depreciation divided up on the basis of the guideline below).
-
Allocative Keys used: •
Head office depreciation is divided up into 50% operating costs and 50% social programme costs. Half the equipment and fixtures are in actual fact used by programme-related departments.
•
Costs relating to the donors’ newsletter are considered partly as a means of/tool for telling people about initiatives we have carried out, and partly as the costs of raising income through public giving.
•
Under social missions, all the headings covering both french and international operations are divided up using the following key: 75% to international programmes and 25% to French programmes. This following headings fall into this category: General Directorate, Board of Directors, Financial Management and Internal Control Coordinator, Provisions and miscellaneous taxes, etc.
34
MĂŠdecins du Monde 2016 Financial Report
Funds from public giving: Funds from public giving are: donations from private individuals and businesses (excluding corporate sponsorship, sales-percentage and partnership agreements); legacies; donations linked to life insurance; income from special events; and funds raised from other network members.
Other private funds: Other private funds include: funds received from businesses in the form of corporate sponsorships, sales percentages or partnerships; grants received from private, not-for-profit organisations.
Grants & other public-sector participation: This heading includes grants from the European Union and the French State, and from local authorities and public-sector institutions.
Other income: Other income includes: financial income from reserves created by the Association to cushion it against contingencies We believe that the investments chosen are among the safest on the market (money market investments, and interest-earning accounts and deposits); miscellaneous operating income; subscriptions; contributions to the ‘Adoption’ service.
Allocation of income from public giving: Once any allocated funds received (whether grants, donations, legacies or funds from corporate sponsorship) have been used, any unallocated income from public giving is used as far as possible to fund social missions. According to this guideline, the order in which income is allocated to expenditure is as follows: Allocated grants; Other allocated, private funds; Allocated public giving; Unallocated public giving; Other unallocated, private funds or other income. In the event that not all the income received from public giving can be used to fund social missions, the balance is put firstly towards fundraising costs, then towards operating costs.
35
MĂŠdecins du Monde 2016 Financial Report
Income from corporate sponsorship is used as far as possible to fund the search for further corporate sponsorship, and the percentages for administrative costs awarded along with public-sector grants are used as far as possible to fund the search for further grants, after which they can be put towards the Association’s operating costs.
Changes to Earmarked funds from public giving: These changes show either that the funds allocated by a donor have been used, or, when it has not been possible to use a donation as requested by the donor, the continued existence of earmarked funds.
Funding of Fixed Assets: As far as possible, fixed assets are funded from income other than that derived from public giving.
Inventory of French volunteer workforce: 2 137 French volunteers intervened in 2016 - the Full Time Equivalent of 132,29 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.
36
65 095 883
11 621 705
1.2 Activities carried out abroad
2 - FUNDRAISING COSTS
37
Social Programmes Fundraising costs Operating costs and other expenses TOTAL
6 826 840
6 743 449 68 800 14 592
1 162 540 97 024 107
583 350
III - OUTSTANDING COMMITMENTS FROM EARMARKED FUNDS
IV - SURPLUS FUNDS FOR THE FINANCIAL YEAR V - GRAND TOTAL V - Proportion of gross fixed asset acquisitions in the financial year finances since the regulation first came into force by funds raised from the general public VI - Offsetting of depreciation allowances on fixed assets financed since the regulation first came into force by funds raised from the general public VII - Total expenditure financed by funds raised from the general public
2 420 251
92 857 967
92 857 967
I - TOTAL EXPENDITURE FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - CHARGES TO PROVISIONS
TOTAL
4 543 209
261 604
2.3 Costs related to applications for grants and other public sector funding
3 - RUNNING COSTS
233 601
2.2 Costs of fundraising from other private sources
11 126 501
11 597 169
1.1 Activities carried out in France
2.1 Costs of appeals to public generosity
76 693 052
2016 Expenditures
1 - SOCIAL PROGRAMMES
EXPENDITURE
45 630 801
0
0
45 630 801
2 760 720
0
214 565
11 126 501
11 341 066
24 218 312
7 310 703
31 529 015
Allocation (according to use) of funds raised from the general public for use during the financial year
Volontary work (France) Donations in kind
TOTAL
VI - Total expenditure financed by the funds raised from the general public Balance of funds raised from the general public which are unrestricted and unused at the end of the financial year
I - TOTAL FUNDS FOR THE FINANCIAL YEAR RECORDED IN THE INCOME STATEMENT II - WRITE-BACKS OF PROVISIONS III - UNUSED, EARMARKED FUNDS BROUGHT FORWARD FROM PREVIOUS FINANCIAL YEARS IV - CHANGE IN EARMARKED FUNDS RAISED FROM THE GENERAL PUBLIC (cf table of earmarked funds) IV - FUNDING DEFICIT FOR THE FINANCIAL YEAR VI - GRAND TOTAL
3 - GRANTS AND OTHER PUBLIC SECTOR FUNDING 4 - OTHER REVENUE
6 826 840
5 563 179 1 263 661
0 97 024 107
952 614
2 037 338
94 034 155
43 321 137 1 062 183
3 717 990
792 043 396 539
2 - OTHER PRIVATE FUNDS
38 160 211 5 092 116
2 352 075
Unrestricted donations by hand Earmarked donations by hand Unrestricted legacies and other gratuities Earmarked legacies and other gratuities
43 580 770
45 932 845
Funds Raised in 2016
1.2 Other revenue from appeals to public generosity
-
1.1 Donations and legacies received
1- FUNDS RAISED FROM THE GENERAL PUBLIC
Brought forward funds raised from the general public, unrestricted and unused at the start of thefinancial year
INCOME
6 259 533
45 630 801
46 401 441
468 596
2 352 075
38 160 792 211 043 5 092 396 116 539
43 580 770
45 932 845
5 488 893
Monitoring of funds raised from the general public for use during the financial year
INCOME AND EXPENDITURE STATEMENT : FUNDS RAISED FROM THE GENERAL PUBLIC - 2016
Médecins du Monde 2016 Financial Report
MĂŠdecins du Monde 2016 Financial Report
Part 2 Analysis of the 2016 Accounts
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1. INCOME STATEMENT In thousand of €
INCOME EXPENSES SURPLUS/DEFICIT -
2014 74 956 77 880 2 924
2015 91 187 90 922 265
2016 97 024 95 861 1 163
The financial activity of Médecins du Monde has increased by 5%, which is less than the previous years but still sustained. This increase is due to the social programmes (+7%), both international and French. The financial year is in surplus (+1.2 M€ before charging on the reserves for associative projects, the expenses concerning the French innovating projects and the adaptation of premises). Three factors had a positive impact on the accounts between 2015 and 2016:
o A better project funding from the funders (public or private) and the general public generosity. The effect is heightened by the recovery of dedicated funds of the past years. o The persistent confidence of the general public, in France and in Europe. The fundraising (France and International) increased by 0.8M€, increase that is even more noticeable than last year was remarkable due to the Nepal emergency and the related large public engagement. o More important donor funds specially dedicated to cover administrative expenses of the projects. This allowed our association to better cover the running costs. In 2016, Médecins du Monde updated the calculation of the exchange gains and losses concerning the donors contracts in foreign currencies (cf part 1). Before this year, the variation between currencies impact on the contract products was only calculated at the end of the contract. From now on, the variation impact is calculated at the end of each financial year, which allows a better reporting of the programmes annual economic result. At the end, gains and losses concerning the contract is still the same but the result is calculated according to the real programme implementation. The update of the calculation of the exchange gains and losses method ended up with an extra cost of 0.7 M€ which partly explains the financial year result decrease.
1.1 Operating result 1.1.1
Operating income
Operating income stands at €95.2M for 2016. This increase of €6M in 2016 (+6%) is due to higher public and private sector grants (+€4.4M, + 10%) and also to the write-back of provisions and transfer of costs (+€1.5M) – see below. Our main sources of funding were private giving (€45.9M), public-sector grants (€43.3M) and privatesector grants (€3.7M). 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.
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Income from generosity of the public in France and within the international was virtually the same as in 2015 (-€0.05m). Results were mixed here, with continuing growth in funds raised from the general public, both in France and internationally, and a decrease in income from legacies and other similar donations. French fundraising from the individuals grew by €0.5M to reach €38.4M (+1%). This increase is remarkable given that the Nepal emergency appeal in 2015 generated an exceptional amount of fundraising, with donations estimated at €2M. This increase reflects the success of investments made in developing direct debits and, more generally, of our communication campaigns with the general public. Income from International Network fundraising reached €2.3M, an increase of €0.4M on 2015 (+20%) – or €1.2M, if we deduct donations for the Nepal emergency from 2015 figures. This result is largely due to MdM’s strategy to develop fundraising that is currently being implemented with other Network members. Income from legacies and other similar donations reached €5.2M, down by €0.9M against 2015. However, 2015 included the balance of a particularly large legacy (€0.9M), as well as adjustments from old files, notably life insurances.
Public-sector grants also continued to grow (+€4.1M, or +10% against 2015), due to the development of our social programmes, especially our Migrant programmes. There was a slight increase in private-sector grants and corporate sponsorship (+€0.3M, or +6% on 2015, with a total of €3.7M), due to strong support in France for our Migrants programmes and profitable contacts established through our International Network (US and UK). The write-back of provisions (€2M) was particularly high in 2016, as several liabilities or litigations for which there were provisions, were brought to a conclusion during the financial year. The detail is as follows:
- Write-backs of provisions offset by the recognition of an expense stood at €1.2M. They did not affect the result. - Certain provisions were no longer required (the liability did not materialise), and their write-back added €0.3M to the result. - Finally, the provision for retirement benefits is written back and re-appropriated each year. The amount of the write-back of this provision in 2016 was €0.5M. The appropriation is given in the expenses below.
1.1.2
Operating expenses
The increase in operating expenses in 2016 (+6%) is linked to the growth in our social missions (+7% on average). The most notable changes were as follows:
- Purchases: the decrease (variation 2015/2016: -€1.9M) is due to a reduction in the quantity of pharmaceutical products purchased compared with 2015 (especially in countries affected by the Syrian 40
Médecins du Monde 2016 Financial Report
crisis) and the closure of some completed programmes (rehabilitation of building and water conveyance in Ivory Coast, Nepal emergency, etc.); - Staff costs (variation 2015/2016: +€4.3M): the increase in expenses concerns both staff under French contracts (+€2.4M) and staff recruited locally on international programmes (+€1.9M) and is due to the growth in our activities and the strengthening of supervisory functions.
- Grants awarded (variation 2015/2016: +€0.8M): these grants are awarded by MdM to: • Local institutional or civil society actors taking over our programmes in accordance with our Mission statement - €5.6M in 2016 • Members of our International Network to help them set up field or advocacy programmes and develop their fundraising - €3.3M in 2016. - Other expenses (variation 2015/2016: +€0.7M) The increase in expenses under this item in 2016, for a global amount of €1.2M, is mainly due to losses recorded against debts or litigation linked to our operations abroad. These losses had been anticipated and provisions for write-offs had been made. These provisions were reversed at 31/12/2016 (see above), thereby cancelling out the impact of these expenses on the result. - Provision (variation 2015/2016 :+€0.4M) The main provisions over the financial year were for liabilities linked to our international operations, writeoffs and the annual adjustment to the provision for retirement benefits. Given the decline in international adoption, a provision was also made for the progressive closing of our Adoption operation.
1.2 Financial result
The latter shows a €0.5M loss for the financial year, mostly due to the update of the calculation of the exchange gains and losses method. Our financial income deriving from our investments (sometimes linked to the gap recorded between our income and expenditures) are slightly higher compared to 2015 (+€0.01M) despite the decrease of the reference rates. Indeed, currency rates dropped in 2016 and stayed negative. For the record, our investment policy prefers money-market investments (deposits or short-term accounts, Sicav/FCP), which represent some of the most secure assets on the market.
1.3 Extraordinary profit, corporate tax (IS) and changes in dedicated funds: The extraordinary profit (-€0.06M) 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), is mainly due to the transfer to 2016 of the use of funds received for Nepal in 2015 (+€ 0.4M).
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2. BALANCE SHEET ASSETS (In thousand €) Brut Fixed assets Stocks Claims Cash Prepaid charges TOTAL
21 402 337 28 296 24 801 647 75 483
2016 Deprec+AmortNet 15 637 5 765 36 301 113 28 183 24 801 647 15 786 59 697
2015
LIABILITIES
2016
2015
5 709 324 19 171 25 690 827 51 721
Equity Provisions for liabilities and charges Dedicated funds Debts Deferred income TOTAL
17 147 2 489 937 17 817 21 307 59 697
15 965 1 906 1 306 14 541 18 003 51 721
Net
The balance sheet total (€59.7M, i.e. +€7.9M compared to 2015) was affected by the increase of donors’ claims (+€8.6M on asset) and from deferred incomes connected to grants (+€3.3M on debt). The number of donor’s contracts is increasing compared to 2015. For the record, agreements with donors are recorded as debts as soon as the agreement is signed, whatever the time period covered; and the deferred incomes represent the portion of the grant concerning future financial years. The fixed assets are stable, €5.7M. The main investments are a new Parisian RHAC and Ile de France delegation localisation (offices avenue Parmentier were transferred Boulevard de Picpus), the new internet website and a patient record software. The liquid assets decreased by €0.9M. Our own funds increased by the surplus amount recorded on the financial year. On 31/12/2016, they were of €17.1M, which is 2.19 months of operation. The debts item increased by €3.3M due to the strong increase of the consortia item (which reflects our activities in consortia with other NGOs), and the increase of the suppliers item (which is due to an intense fundraising activity at the end of the year.
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3. INCOME AND EXPENDITURE STATEMENT Method for the calculation of ratios1
3.1 Expenditure
In 2016, the growth in our social programmes (+7% compared with 2015, i.e. +€5M) goes with our fundraising costs decrease (fundraising investments on the international network are lesser) as well as the operating costs stabilisation. Social Programmes represented 82.6% of total expenditure, an improvement on last year’s ratio.
3.1.1 Social programmes
The distribution between French social programs and international social programs is stable.
1
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’). 43
MĂŠdecins du Monde 2016 Financial Report
FRENCH PROGRAMMES
Geographical distribution
The amounts correspond to the expenditure, coordination excluded and earmarked funds included
Distribution by domain
In thousands â‚Źs Reception, Healthcare and Advice Centres Harm Reduction Other French Programmes Exploratory Programmes Witness-bearing Programmes Coordination and Management of French
2015
Total
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2016 3 914 916 1 960 16 657 3 305 10 768
4 297 1 025 2 101 647 3 527 11 597
Médecins du Monde 2016 Financial Report
2016 KEY EVENTS 1. Refugees reception crisis Operational implementation in the Hauts de France region was reinforced with 9 salaried personnel as well as important private funds received at the end of 2015. Health monitoring and Médecins du Monde RHAC activities were continued. Explorations and watch on the Italian border were undertaken.
2. Positions creation to support innovating operational dynamics Health in rural areas Haute Vallée de l’Aude, unaccompanied foreign minors in Caen, health in fragile urban areas South Lille
3. New programmes • • • • •
Unaccompanied foreign minors in Caen (Normandy) Migrants Rights and Health Nantes (Pays de la Loire) Health in rural areas Haute Vallée de l’Aude (Languedoc-Roussillon Health in fragile urban areas South Lille (Hauts de France) Cervical cancer prevention transversal programme
4. Changes in programmes • •
RHAC Cayenne changed into mobile actions RHAC Paris changed into a Reception, Counselling and Accompaniment Center (RCACs)
5. Closed programmes • • • •
RHAC Angers RHAC Nantes RHAC Valenciennes Homeless project Poitiers
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INTERNATIONAL PROGRAMMES In thousands â‚Źs Africa Latin America Asia Eastern Europe Middle East/Maghreb Regionally-managed International Programmes Exploratory Programmes Cross-sector Programmes Operation Smile Adoption Expansion of International Network Witness-bearing Programmes Programme Coordination and Management Total
2015 17 2 7 1 17
3 1 7 60
724 998 564 051 073 111 85 663 479 470 344 946 458 966
2016 16 3 6 3 20
2 1 7 65
502 703 510 228 904 39 65 937 378 437 882 942 569 096
Geographical distribution
The amounts correspond to the expenditure, coordination excluded and earmarked funds included.
Distribution by domain
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FOCUS ON AFRICA Expenditure in 2015: Expenditure in 2016:
€18.2M (including provisions and dedicated funds) €16.5M
2016 Key events 2016 main events are: • The closed programme in Mali beginning of the year • The activities increase in CAR and the Nigeria opening • The closed programme in Liberia on Ebola activities • The closed children in the streets programme in Kinshasa, as well as the closed mental health programme in Goma, this goes along with the Goma office stand-by (DRC) • A new Reproductive and Sexual Health/ Gender based violence activity in Somalia going alongwith the Bosaso Hospital support • 20 extra health centers supported concerning the Kanem programme in Tchad (42 vs 22 in 2015)
Financial weight per country in €
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Médecins du Monde 2016 Financial Report
FOCUS ON LATIN AMERICA AND THE CARIBBEAN Expenditure in 2015: €3M Expenditure in 2016: €3.7M
2016 Key events 2016 main events are: • The expenditure increase in Haiti due to Matthews hurricane • The activities decrease in Colombia • The activities increase towards Central American migrants
Financial weight per country in €
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Médecins du Monde 2016 Financial Report
FOCUS ON EURASIA Expenditure in 2015: €9.6M (including provisions and dedicated funds) Expenditure in 2016: €9.7M
ASIA 2016 Key events
After 2 countries closed and 4 programmes closed in 2015, 2016 has seen a reinforcement accompanied with medical human resources support: • Reproductive and sexual health: programme focus was put on unwanted pregnancy, teenagers, large cities and South Asia thematic • Harm reduction: “Do less but better” • Harmful environments: An overview of the e-waste project in Manila was performed in order to be able to reproduce it elsewhere, and an exploration was launched in Nepal • Disaster risk reduction: 4 countries developed activities on disaster risk reduction approach, 2 different funding were obtained and guidelines were validated in May 2016 • Emergency answer: the emergency period being over, programmes in Nepal are under the longterm Unit responsibility. Evaluations were led following the emergencies in Sri Lanka and Philippines Financial weight per country in €
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Médecins du Monde 2016 Financial Report
EUROPE 2016 Key events
• • •
Migrations, Rights and Health: European reception and solidarity crisis answer was developed and therefore several projects were opened: Italy, Serbia, Bulgaria, boat on the Mediterranean sea, Greece Russia and Georgia projects’ reinforcement, innovating projects modelling ( Hepatitis C treatment in Georgia, Sex workers in Russia), and strong activities increase in Ukraine (+€1.4M) Programme closure in Moldavia
Financial weight per country in €
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Médecins du Monde 2016 Financial Report
FOCUS ON THE MIDDLE EAST / MAGHREB Expenditure in 2015: €17.6M (including provisions and dedicated funds) Expenditure in 2016: €20.9M
2016 Key events 2016 main events are: • Programme closure in Jordan • Activities re-opening in Yemen (+€1.1M) • Activities increase in Iraq (+(e)1.3M) and in Turkey / Syria (+€1.9M)
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3.1.2 Fundraising costs In the course of the financial year, fundraising costs fell from 13.6% to 12.5% of total expenditure. They decreased slightly in terms of their value -€0.3M (-2.6%) due to the fact that the general public database was migrated and all the fundraising operations foreseen didn’t occur.
3.1.3 Operating expenses Operating expenses increased in value (+€0.3 M i.e. +6.8%) for the financial year, but were relatively stable in terms of weight of total expenditure (4.9% in 2016 compared to 4.8% in 2015).
3.2.
Funding sources
Our funding has already been analysed in an earlier part of this report. It should, however, be emphasised that we strive to maintain a balance between public-sector and private funding. Despite the strong growth shown by public-sector grants (+€4M) due to the expansion of our programmes, they accounted for 44.6% of our total revenue which represents less than 50% of our total revenue.
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Part 3:
Special Report on Regulated Agreements
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Part 4: 2017 Budget
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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 89 160 634 12 457 183 76 703 451 12 787 302 12 032 049 470 298
Income Funds raised from the general public
2017 Budget 47 184 008 Donations 38 210 761 Legacies, other gratuities 6 532 247 Other revenue from appeals to public generosity 2 441 000 Sponsorship 0 Other private funds 4 826 851
284 955 Grants and other public sector funding 0 Other revenue 5 018 712 Deficit for the financial year 106 966 648 Total
54 501 807 414 000 39 982 106 966 648
Comments on the 2017 budget The 2017 budget was approved by the Board of Directors on 17 December 2016. 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). For the first time, the budget was built on 3 years i.e. 2017, 2018 and 2019. Only the 2017 budget was approved during the 2017 held General Assembly. The 2 others years will be updated further on. The Board of Directors decided to put a balanced budget to the vote at the General Assembly (after taking into account the reserve created for association project during the 2015 and 2016 General Assemblies). This budget answers the Board of Directors priority requests:
•
Health and Advocacy Direction creation
•
Creation support and implementation of the International network roadmap
•
Associative life promotion
•
Decentralization management implementation concerning actions led in France and internationally
•
Information system master scheme implementation
•
Strengthened support to South NGOs partnership
2017 budget expenditure The growth in our activities continues in 2017, with our overall volume of expenditure (€107M) increasing by €11M compared with the actual figures for 2016. This growth reflects the expansion of our social programmes in France and abroad, in particular the expansion of our emergency programmes (Syrian crisis, Iraq, Nigeria, Yemen …). 59
Médecins du Monde 2016 Financial Report
Social programmes The total volume of social programmes shown in the 2017 budget is therefore €89M, an increase of €12M compared with the actual figures for 2016 (€77M). The ratio of social programmes to total expenditure works out at 83.3%, compared with 82.6% in 2016 (actual figures). International programmes are showing significant growth, and their financial volume for 2017 is set at € 76.7M, compared with €65.1 M in 2016 (+18%). Budgetary growth continues in the French sector too, increasing from €11.6M in 2016 to €12.5M in the 2017 budget (+8%).
Fundraising costs Fundraising costs have gone from €11.6M in 2016 (actual figures) to €12.8M in the 2017 budget. This reflects the strong will to enlarge the donors’ database. Even though their actual value has increased, fundraising costs are stable: 12% of 2016 and 2017 budget.
Operating costs Operating costs have slightly risen (to €4.9M in the 2017 budget, compared with actual figures of €4.5M in 2016). Their impact on expenditure in 2017 is slightly decreasing to 4.5%, compared with 5% in 2016.
2017 budget income Revenue from the general public are slightly increasing (€47M in the 2017 budget compared with actual figures of €46M in 2016), and this despite the estimated legacies amount increase (+€1.3M in the 2017 budget compared with the 2016 actual figures). Public-sector grants continue to show strong growth in 2017, amounting to €54.5M (compared with €43M in 2016). In the 2017 budget, they represent 51% of total income, while total private funds and funds from public giving account for 49%.
2017 budget conclusion This 2016 budget, balanced after taking into account the reserve created for innovative projects during the 2015 and 2016 General Assembly, reflects the Organisation’s strategy and its desire to:
•
Keep on developing its social programmes in France and abroad, in a world marked by multiple crises and growing needs, whilst adapting its programmes in accordance with the strategic plan’s areas.
•
Pursue the funding diversification in order to guarantee the financial independence
•
Maintain its own funds and secure financial solidity in relation to the scope of its global growth.
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