MSF Australia Annual Report 2011

Médecins Sans Frontières Australia

Annual Report 2011

Our Charter

Médecins Sans Frontières is a private international association. The association is made up mainly of doctors and health sector workers and is also open to all other professions which might help in achieving its aims. All of its members agree to honour the following principles:

Médecins Sans Frontières offers assistance to populations in distress, to victims of natural or man-made disasters and to victims of armed conflict, without discrimination and irrespective of race, religion, creed or political affiliation.

Médecins Sans Frontières observes neutrality and impartiality in the name of universal medical ethics and the right to humanitarian assistance and demands full and unhindered freedom in the exercise of its functions.

Médecins Sans Frontières’ volunteers undertake to respect their professional code of ethics and to maintain complete independence from all political, economic and religious powers. As volunteers, members are aware of the risks and dangers of the mission they undertake, and have no right to compensation for themselves or their beneficiaries other than that which Médecins Sans Frontières is able to afford them.

© Corentin Fohlen

Message from the President

must consider withdrawing completely. For complex reasons this time may be approaching in Somalia. What is clear though is the vast ongoing failure to find a resolution to a series of internal and regional conflicts that now span three decades. Certainly in Somalia the recent actions of neighbouring governments, supported by Western nations, have contributed substantially to the destabilisation of the country and deterioration in the conflict. Our patients pay the price for these failures.

Dear Friends

All of us who have worked in the field are aware of the substantial risks involved, and tragically we have seen over the years our colleagues lose their lives in the course of treating our patients. At the conclusion of 2011, we paid our deepest condolences to the families and friends of Philippe Havet and Andrias Karel Keiluhu, the field coordinator and medical doctor who lost their lives while working with Médecins Sans Frontières in Mogadishu, Somalia. Just before these terrible events, two colleagues were kidnapped whilst working on the SomaliKenyan border. At the time of writing this report Médecins Sans Frontières is still working to secure the release of Montserrat Serra and Blanca Thiebaut, and our thoughts are with them and their families.

These tragic events have provoked the deepest reflection at Médecins Sans Frontières, particularly regarding our ongoing work in Somalia. As individuals and as an organisation we must constantly evaluate the risks we take to access our patients. There are few contexts as risky as Mogadishu. In such situations it is our fundamental principles of impartiality and independence that have allowed us to continue to care for patients relatively protected.

However, there comes a point when we must acknowledge that our capacity to provide care is becoming so limited and the risks to our staff so great, that we

The emergency in Somalia was represented in the media and aid community as a broader nutritional crisis in the Horn of Africa, caused essentially by drought. At Médecins Sans Frontières we felt this simplified the complex political dysfunction that was centred upon the Somali conflict, albeit with contagion to neighbouring countries, but which was ultimately responsible for the nutrition crisis. The world’s largest refugee camp in Daadab, on the Kenyan border, became the focus of much of the world’s attention for a brief time, and for that moment our teams were able to draw attention to conditions within the camp that were, if anything, marginally worse than those from which the refugees were fleeing. Of course, the trying conditions in the Dadaab camp persist today, even if the international community’s attention to them has waned.

As well as the difficult series of events in Somalia, 2011 has brought challenges and opportunities elsewhere in our projects. The conflict in Libya led to serious internal questions at Médecins Sans Frontières on how to operate effectively in middle-income nations affected by war. Our surgical and trauma teams found particular challenges in keeping up with a continuously mobile front line, which reduced our effectiveness. Maintaining neutrality in such a politically charged environment and ensuring that patients on both sides were able to access care, was particularly difficult.

After returning to Afghanistan in 2009, our activities expanded further last

year. Médecins Sans Frontières teams worked in Ahmed Shah Baba Hospital in eastern Kabul and Boost Hospital in Lashkargah, Helmand Province. We also opened a trauma centre in Kunduz, offering surgical care to patients in northern Afghanistan. Around 350 patients were seen per month, many travelling from nearby provinces to access the only surgical service available in the region. In all locations, Médecins Sans Frontières provided medical care free-of-charge under a ‘no weapons, no fee’ policy, and worked across a number of different services including maternal and child health. Our reliance solely on private charitable funding for our work in Afghanistan is a clear demonstration of our independence and ensures our ongoing access to patients in another high security context. Our teams will expand in 2012 to include more than 70 international and 600 national staff.

Although we have always been an organisation defined by medical action, it is clear that part of that action is in advocating for access to affordable medicines. In 2011 two major events stood out as examples of the constant need to speak out when access to medicines is threatened. The campaign by pharmaceutical company Novartis to challenge the production of generic medicines by Indian manufacturers continues to threaten the source of affordable medicines for millions of patients. India is effectively the pharmacy for the developing world and yet Western governments including our own lend tacit support to pharmaceutical giants like Novartis allowing their fight to extend drug patents to continue. Médecins Sans Frontières’ Stop Novartis social media campaign continues into 2012 as the court proceedings progress. The second, perhaps more controversially, was our outspoken criticism of the GAVI Alliance, a publicprivate partnership designed to increase access to immunisation in poor countries. Despite GAVI’s important successes, we observed challenges that need to be addressed to ensure they reach the un-reached, including revising

operational policies that boost regular immunisation programs in fragile states; supply and procurement policies that bring vaccine prices down further by speeding up development in emerging markets; and using GAVI’s market power to push for adapted products that would allow increased vaccination in places with weak health systems. Finally we were critical of GAVI for ignoring recommendations to revise its Ethics and Conflict of Interest policies that allow ‘Big Pharma’ suppliers to continue reaping profits based on GAVI’s governance process – which do not adhere to the same standards as other global health initiatives or international institutions. Although Médecins Sans Frontières has been criticised for this position, we continue to support the production of discounted generic medicines and vaccines as a means for ensuring the best and most affordable access to life-saving treatment for our patients.

Against this backdrop, Médecins Sans Frontières Australia continues to support the international Médecins Sans Frontières movement by providing the highest quality of field workers to treat or support the treatment of our patients. I’m pleased to report that the Australian section continues to grow in stature within the movement, not

only for the quality of our field human resources, but also for our medical expertise and our communications staff, whom we now deploy on a regular basis throughout our projects. I’m particularly proud of our fundraising team, who really strive for a fundamental principle of deep engagement with our donors regarding the work that we do. It’s very rewarding to see the commitment to Médecins Sans Frontières of all our staff in Australia, not just those who go to the field. I would also like to thank our new Executive Director, Paul McPhun, for his leadership and vision over the past year. I thank our donors for their continuing support of our medical work. Finally I would like to thank our patients and their families for trusting us to provide them with care at their most vulnerable, and in doing so restate our promise to treat them with the highest standard of care.

Sincerely,

Dr Nicholas Coatsworth President, Medicins Sans Frontieres Australia

Mogadishu, Somalia © MSF Misrata, Libya © MSF

2011: Our year in review

malnutrition and disease. As one of the only international medical relief agencies working inside Somalia, Médecins Sans Frontières also strove to gain greater access and expand operations, deploying teams into Mogadishu, where large numbers of internally displaced persons arrived seeking assistance.

2011 had been anticipated within Médecins Sans Frontières’ corridors as the ‘year of recovery’ from the impact of managing some of the largest scale humanitarian emergencies in the history of the organisation in 2010 – namely the emergency response to the earthquake and cholera epidemic in Haiti, and the devastating floods in Pakistan. What then has been surely remarkable about 2011 is that the expected respite from such a concentration in emergency management never came. In fact, 2011 was another hugely significant year where multiple emergencies simultaneously stretched the resources and capacities of our teams around the world. It is very clear to us that the scale of our response and our ability to act immediately and independently was only made possible by the tremendous ongoing trust and financial support placed in us by the many thousands of donors who provide voluntary financial support to our work.

Emergencies in Haiti, Japan and Ivory Coast drew heavily on our medical capacity and expertise, while during the onset of the ‘Arab Spring’, Médecins Sans Frontières sought to provide emergency medical assistance in extremely complex contexts such as Libya, Yemen, Bahrain, Egypt and Syria. In refugee camps in Kenya and Ethiopia, our teams rapidly scaled up assistance to meet the needs of the massive influx of refugees from Somalia, driven across borders by violence, food insecurity,

It is a tragedy then that 2011 was also marked by several devastating security incidents, most notably affecting our international staff working to address the Somalia crisis. Philippe Havet and Andrias Karel Keiluhu were tragically killed in Mogadishu shortly before New Year, and as this report goes to print our thoughts remain with Montserrat Serra and Blanca Thiebaut who have remained in captivity in Somalia since their abduction from the Dadaab refugee camp in Kenya in October.

As can be expected, our communications team was tremendously busy ensuring a flow of information about these and other crises to our supporters and the general public. Our team provided field communications support in South Sudan, Japan and Kenya in response to emergencies throughout the year. Interviews with team members on the ground from emergencies around the world, and with key support staff from our office were facilitated to bring immediate coverage of events and provoke debate on key issues. The Communications team also jointly facilitated the hosting of the inaugural International Symposium on Reducing Child Mortality led by our Sydney-based medical team in the Project Unit. The Symposium – held in Melbourne in the lead up to the 7th World Congress of the World Society for Infectious Paediatric Diseases – was hosted by Médecins Sans Frontières and Epicentre (Médecins Sans Frontières’ epidemiological research centre). We welcomed international child health professionals to a one-day symposium to re-think strategies of delivering care to address the key threats to child survival in resourcelimited settings.

The Project Unit saw growth with the addition of further medical expertise in the areas of women’s health and paediatrics. Direct medical supervision and technical support was provided to Médecins Sans Frontières projects in a number of countries including Madagascar, Pakistan, Ivory Coast, South Sudan, Mali, Armenia and Papua New Guinea. Of particular note is the roll out of a much needed training for health care workers on newborn resuscitation, close support for field operations during the nutritional crisis in Somalia and neighbouring countries, and significant steps forward in addressing the challenges of diagnosing and treating tuberculosis in children. In addition to the core business of field support, the Project Unit engaged proactively with the Australian medical community, organising events to mark International Women’s Day as well as the International Symposium on Reducing Child Mortality mentioned above.

The Australian office also continued monitoring and surveillance of emergencies in the Asia-Pacific region, developing further its network and database of regional emergency contacts, and securing good collaboration within the region. This was put to the test with two emergency interventions managed from Sydney in response to flooding in the Philippines, following which, a general health needs assessment was conducted after the emergency response was completed. The Sydney office also managed Médecins Sans Frontières’ new mother and child health program in Buin, in the Autonomous Region of Bougainville, Papua New Guinea.

Our Field Human Resources team again rose to the challenges of 2011 and placed 170 Australian and New Zealand field workers into field positions. Sixtyfour new recruits were brought into the organisation, and 28 percent of our departures were new team members on their first placement. The team was expanded to meet these growing recruitment and placement needs. A common strategy was developed with

Médecins Sans Frontières’ Operational Centre Paris to address core common priorities such as recruitment, retention, training, tools and systems management. Sydney has now assumed a leadership role for the adoption and implementation of a new common human resources management system as part of a Médecins Sans Frontières movement wide upgrade and transition. Our fundraising team completed another extremely successful year, going beyond annual targets and generating total revenue of AUD55.73 million. Extensive evaluation of the fundraising sector was undertaken to inform the development of a new fundraising strategy cycle. The success of the department has required some moderate expansion of the team, resulting in additional capacity added in support of data management and the major gifts sector.

A new office better able to meet the needs of Médecins Sans Frontières Australia over the next ten years was identified and the current premises will be vacated in May 2012. An impressive amount of work was undertaken to ensure a high level of financial and fiscal accountability was maintained; many areas of policy development and risk management have been undertaken. The office finance and administration

team has expanded slightly to manage our in-house donor support services and the increased workload of a growing Médecins Sans Frontières team. The partnership between Médecins Sans Frontières Australia, France, USA and Japan has continued to build strong reliance on the opportunities, skills and resources of each section in support of Paris’ field operations. Common strategic and annual planning is now taking place allowing great involvement of all partners in the strategy development and implementation of operations overseas. Key areas of responsibility have been delegated within the group and new platforms for communication, evaluation and decision making have been formed.

2011 was my first year in the position of Executive Director, and it has been an exciting and engaging one. I have met many generous individuals who financially support our work and their level of interest, knowledge and conviction never ceases to astonish me. None of the achievements made in 2011 would have been possible without their continued generous support. I am also fuelled by the enthusiasm and commitment of our office staff, our regular volunteers and the board of directors. I would sincerely like to thank

everyone for the personal support during the year, and their hard work on behalf of our patients and medical programs.

Sincerely,

Paul McPhun Executive Director, Medicins Sans Frontieres Australia

Dadaab, Kenya © Brendan Bannon Abidjan, Ivory Coast © Chris de Bode

Médecins Sans Frontières – projects funded by Australian donors

A$ A$

COUNTRY MSF FRANCE MSF SWITZERLAND

1. Armenia 255,000

2. Burkina Faso 816,000

3. Cambodia 936,500

4. Cameroon 1,600,000

5. Central African Republic 170,000

6. Chad 586,565 1,700,000

7. Colombia 255,000

8. Democratic Republic of Congo 2,557,500 950,000

9. Djibouti 200,000

10. Ethiopia 170,000

11. Georgia 255,000

12. Guinea 2,050,000

13. Haiti 1,232,800 850,000

14. Iran 2,210,000

15. Iraq (Jordan) 2,252,500

16. Ivory Coast 1,997,500

17. Kenya 1,955,000 395,000

18. Kyrgyzstan 650,000

19. Libya 1,636,250

20. Madagascar 850,000

21. Malawi 2,074,024

22. Mali 765,000

23. Mozambique 1,200,000

24. Myanmar 650,000

25. Nigeria 340,000

Médecins Sans Frontières field projects are run by five operational centres (France, Switzerland, Spain, Holland and Belgium).

The Australian section is an offical partner of the French operational centre, and Australian donors fund projects run by both the French and the Swiss operational centres. When needed, Médecins Sans Frontières Australia also provides human resources and medical support to all operational centres’ projects.

26. Occupied Palestinian Territory 850,165

27. Pakistan 1,275,269

28. Republic of Congo 544,000

29. Somalia 379,221

30. Sri Lanka 170,000

31. Sudan 900,000

32. Sudan South 19,807 600,000

33. Swaziland 1,800,000

34. Uganda 850,000

35. Yemen 2,125,000

36. Other countries 300,000

Field Staff in 2011 Australia and New Zealand

Nurse Aisleen Glasby, Jahun, Nigeria © Penny Bradfield

Afghanistan

Danielle Ballantyne nurse

Sam Bartlett nurse

Don McCallum logistician

Armenia

Carmel Morsi nurse

Janthimala Price field coordinator

Melinda Staunton counsellor

Bangladesh

Stewart Condon medical coordinator

Robert Gardner administration/ financial coordinator

Katrina Harper medical doctor

Lisa Percy medical doctor

Cambodia

Jennifer Gibson logistician/administrator

Emmanuel Lavieuville head of mission

Adam Liu medical doctor

Stella Smith nurse

Cameroon

Rosemary Hay medical doctor

Chad

Stephanie Johnston pharmacist

Rachel Loong medical doctor

Damien Moloney logistician

Paras Valeh medical doctor

China

Lee-Anne Cameron administration/ financial coordinator

Heidi Spillane medical doctor

Colombia

Rachel Creek logistician/administrator

Côte D’ivoire

Peter Chan medical doctor

Myree Little OT nurse Democratic Republic of Congo

Toby Barton logistician

Emily Berry logistician/administrator

Debra-Lee Holman field coordinator

Alan Hughes obstetrician/gynaecologist

Michael Rowell administration/ financial coordinator

Lisa Searle medical doctor

John Swinnen surgeon

Djibouti

Brian Willett logistician

Ethiopia

Kaye Bentley administration/ financial coordinator

Jackie Butler midwife

Erin Calabrese nurse

Sandra Downing epidemiologist

Jennifer Gibson logistician

Phil Humphris head of mission

Julianne Millar medical doctor

Linda Pearson field coordinator

Rolands Selis nurse

Guinea

Miriam Kasztura nurse

Devi Lalloo nurse

Haiti

Alana Baker nurse

Sita Cacioppe nurse

Cath Deacon medical doctor

Debra-Lee Holman nurse

Tracey Leslie logistician/water-sanitation

Rachel Marsden OT nurse

Michael O’Brien nurse

Sneha Parghi medical doctor

Alexandra Serri field coordinator

Robert A Simpson medical doctor

Sally Thomas logistician/construction

Mohamad-Ali Trad medical doctor

Paras Valeh epidemiologist

Colin Watson nurse

Brian Willett logistician

India

Lisa Errol midwife

Devika Tharumaratnam medical doctor

Iraq

Stephanie Boyd medical doctor

Peter Wigg psychiatrist Japan

Susan Petrie medical coordinator

Jordan

Danielle Moss administration/financial coordinator

Kenya

Stephanie Boyd medical doctor

Sita Cacioppe nurse

Prue Coakley field administrator

Rachel Creek logistician

Jaclyn Cruz field administrator

Daron Cunningham surgeon

Cath Deacon medical team leader

Natalie Evans medical doctor

Lainie Grummitt administration/financial coordinator

Hannah Jensen psychologist

Don McCallum logistician

Catherine Moody head of mission

David Nash field coordinator

Karen Poole medical doctor

Nicole Trim nurse

Paul Wilcox HR officer

Kyrgyzstan

Rebecca Bennett psychologist

Lainie Grummitt administration/financial coordinator

Jonathan Nichol nurse

Hilary Stiel medical doctor

Libya

Haydar Alwash surgeon

Kevin Baker anaesthetist

Margie Barclay midwife

Erin Calabrese nurse

Daron Cunningham surgeon

Juliet Donald psychologist

Chris Fletcher nurse

Anthony Flynn field coordinator

Colin Watson nurse

Kate White OT nurse

Bill Wilson logistician/administrator

Malawi

Roslyn Brooks medical doctor

Heather Cook field administrator

Rachel Creek logistician

Aisleen Glasby nurse

Ellen Kamara administrator/financial coordinator

Laura Margison nurse

Natasha Martin pharmacist

Kristen McClelland nurse

Bill Wilson logistician

Shelagh Woods head of mission Mongolia

Jayne Martin head of mission

Carol Petrie nurse

Mozambique

Barbara Telfer epidemiologist

Myanmar

Deanna Beaumont logistician

Daniel O’Brien medical doctor

Niger

Warren Keen logistician

Christopher Lack medical doctor

Awras Majeed medical doctor

Nigeria

Prue Coakley field administrator

Jacinta Gibson logistician

Fiona Gillett midwife

Aisleen Glasby nurse

Eileen Goersdorf OT nurse

Julie Guy medical doctor

Melissa Hozjan nurse

Nicole Hunter field administrator

Peter Mathew surgeon

Sivapalan Namasivayam anaesthetist

Kelly Saunders nurse

Stella Smith nurse

Hilary Stiel medical doctor

Anne Taylor head of mission

Sally Thomas logistician

Lisa Trigger-Hay medical doctor

Gabrielle Watt nurse

Tracy Zordan nurse

Occupied Palestinian Territory

Sally Carter psychologist

Rowan Gillies surgeon

Eileen Goersdorf OT nurse

Ileana Hatton psychologist

Malcolm Hugo mental health coordinator

Myree Little nurse

Carol Nagy medical coordinator

Peter Wigg psychiatrist

Pakistan

Haydar Alwash surgeon

Margie Barclay midwife

Judy Coram nurse

Judith Forbes anaesthetist

Brian Moller field coordinator

Annekathrin Muller OT nurse

Ruth Osadebay midwife

Ruth Priestley nurse

Donna Raymond midwife

Alan Scott surgeon

Sofie Yelavich medical doctor

Papua New Guinea

Franck Boulay logistician

Maria Cartwright head of mission

Katrina Harper medical doctor

Clair Mills field coordinator

Carol Nagy nurse

Jessica Overton midwife

Helle Poulsen-Dobbyns field coordinator

Karina Severin medical doctor

Adrienne Storken nurse

Bill Wilson logistician

Philippines

Jeff Stewart nurse

Sierra Leone

Claire Fotheringham medical doctor

Somalia

David Nash field coordinator

South Africa

Helen Cox epidemiologist

South Sudan

Sam Bartlett nurse

Deanna Beaumont field coordinator

Katy Brown nurse

Sita Cacioppe nurse

Lee-Anne Cameron field administrator

Johanna Cromley nurse

Frederick Cutts logistician

Hugo De Vries logistician

Anthony Flynn medical team leader

Lisa Gray nurse

Nerida Greenaway OT nurse

Carol Greenwell OT nurse

Heather Harris midwife

Abi Kamara logistician

Jacinta Knell midwife

Wedyan Meshreky pharmacist

Danielle Moss field admin

Annekathrin Muller OT nurse

Helle Poulsen-Dobbyns field coordinator

Sally Somi medical doctor

Johanna Thomson medical doctor

Caitlin Tunnicliffe medical doctor

Mark Ward logistician

Gabrielle Watt nurse

Sri Lanka

Kate Chapman nurse

Juliet Donald psychologist

Kathleen Leach psychologist

Ruth Lim medical doctor

Helle Poulsen-Dobbyns field coordinator

Kate White OT nurse

Kelly Wilcox field coordinator

Sudan

Philippa Boulle field coordinator

Jacqueline Boyd medical doctor

Swaziland

Emma Campbell administrator/financial coordinator

Ruth Dabell nurse

Victoria Harris medical scientist

Sue Harrop Administrator/financial coordinator

Tajikistan

Cindy Gibb nurse

June Woolford counsellor

Tunisia

Philippa Boulle medical doctor

Louise Johnston medical team leader

Robert A Simpson medical doctor

Uganda

Rebecca Caporn nurse

Anita Coombs medical scientist

Veronique De Clerck medical coordinator

Kaheba Clement Honda nurse

Kamalini Kalahe-Lokuge epidemiologist

April Murphy nurse

Will Robertson head of mission

James Sadlier logistician

Mark Ward logistician

Yemen

Haydar Alwash surgeon

Sahar Bajis pharmacist

Michael Bala medical doctor

Monica Burns nurse

Julie Guy medical doctor

Lisa Mazlin nurse

Carolyn Merry head of mission

Sivapalan Namasivayam anaesthetist

Doris Ng medical doctor

Joanne Sage medical team leader

Amanda Stack nurse

Kelly Wilcox field coordinator

Zambia

Sally Stevenson head of mission

Zimbabwe

Ileana Hatton psychologist

Joanne Sage nurse

Summary activity charts

• In 2011, there were 170 field positions filled by Australians and New Zealanders in 36 countries. Twenty eight percent of these were Field Staff on their first placement, providing adequate ability to sustain field support in the future.

• Funding spent on social mission increased 23% to $52.9 million in 2011, from $43.1 million in 2010. This is the largest amount to date that Médecins Sans Frontières Australia has remitted to Operational Centres in one year. This is due to the significant reserves built up over previous years. Consistent with prior years, this is split between Operational Centre Paris (70%) and Operational Centre Geneva (30%).

• Income from fundraising totalled $55.6 million in 2011, which is $2 million above budget. This is a slight decrease on the $56.8m total for 2010. Income from Field Partners, contributing a regular monthly gift, increased significantly in 2011; however there was a decrease in single donations following an abnormally high year in 2010 due to natural disasters in Haiti and Pakistan.

• The number of people actively donating to Médecins Sans Frontières Australia grew from 128,249 in 2010 to 132,221 in 2011.

• Our investment policy within Australia remains consistent, short term deposits are utilised to maximise interest, minimise risk and ensure the flexibility of accessibility to funds when required.

• Médecins Sans Frontières Australia continues to rely on the support of volunteers both in the field and in the office. The estimated total salaries forgone by field staff in 2011 is $3,089,740 (2010: $3,226,904) and for office volunteers $106,300 (2010: $99,700).

Médecins Sans Frontières Australia

ABN 74 068 758 654

Financial Report for the Financial Year

Ended 31 December 2011

Médecins Sans Frontières Australia

Directors’ report

The directors of Médecins Sans Frontières Australia submit herewith the annual financial report of the company for the financial year ended 31 December 2011. In order to comply with the provisions of the Corporations Act 2001, the directors’ report as follows:

The names and particulars of the directors during or since the end of the financial year are:

Dr Nicholas Coatsworth President Médecins Sans Frontières Australia from 26 May 2010. Reelected 28 May 2011. Resident of Australia. Senior Medical Registrar at Royal North Shore Hospital. Attended ten out of ten directors’ meetings.

Mr Peter Hooker Treasurer Médecins Sans Frontières Australia. Re-elected 09 May 2009. Resident of Australia. CEO of Fertile Mind Pty Ltd, an importer/exporter of maternity wear and baby goods. Attended nine out of ten directors’ meetings.

Ms Veronique Avril Elected 09 May 2009. International Vice President from 26 May 2010. Resident of France. Special Advisor (City of Paris). Attended five out of ten directors’ meetings.

Ms Emma Timmins

Re-elected 09 May 2009. National Vice President from 26 May 2010. Resident of Australia. Registered nurse. Attended three out of five directors’ meetings.*

Dr Pauline Horrill Elected 09 May 2009. Resident of New Zealand. General practitioner and course convenor tropical and refugee medicine University of Otago. Attended two out of four directors’ meetings.*

Mr Constantinos Asproloupos

Re-elected 28 May 2011. Resident of Australia. Manager of diabetes prevention projects, Deakin University. Attended nine out of ten directors’ meetings.

Ms Jane Coster Elected 22 May 2010. Resident of New Zealand. Nurse/Midwife, Program Manager NZ Ministry of Foreign Affairs and Trade. Attended nine out of ten directors’ meetings.

Dr Kamalini Lokuge Elected 22 May 2010. Resident of Australia. Attended six out of ten directors’ meetings.

Mr Marc GastelluEtchegorry

Appointed 27 July 2010. Resident of France. Member of the Board of Medecins Sans Frontières France. Attended five out of ten directors’ meetings.

Dr Stewart Condon Elected 28 May 2011. Resident of Australia. Coordinating Doctor for International SOS. Attended six out of six directors’ meetings.*

Mr Hichem Demortier Elected 28 May 2011. Resident of Australia. Global and Tropical Health Programs Manager, Menzies School of Health Research Attended six out of six directors’ meetings.*

* The above named directors held office during and since the end of the financial year except for:

Dr Stewart Condon and Mr Hichem Demortier – elected to the Board 28 May 2011

Ms Emma Timmins – resigned 28 May 2011

Dr Pauline Horrill – resigned 25 April 2011

Médecins Sans Frontières Australia

Directors’ report

COMPANYSECRETARY

Mr. P. McPhun, Executive Director of Médecins Sans Frontières Australia since 6 December 2010 and Company Secretary of Médecins Sans Frontières Australia since 11 December 2010. Worked for Médecins Sans Frontières in various roles since 1997. Holds an MSc in Humanitarian and Development Practices from Oxford Brookes University.

PRINCIPALACTIVITIES

The principal activities of the company during the financial year to 31 December 2011 have been:

• operational participation in the field projects of the international movement of Médecins Sans Frontières, through assignment of field staff humanitarian relief workers; participation as faculty in various Australian and international training courses for such field staff; and exploratory and evaluation missions to field projects.

• community education in the form of dissemination of public information on humanitarian and development issues; provision of materials and source people to journalists in the print and electronic media; publication of newsletters; participation in seminars; and guest lectureships at secondary schools and universities.

• liaison with institutions and individuals in Australia and internationally, with a view to obtaining funding or other operational support for field projects, and for co-ordination with other organisations involved in overseas humanitarian relief.

• fundraising from the general public in order to finance the field operations of Médecins Sans Frontières.

The nature of each of these activities has not changed significantly during the year. They are described in the Annual Review that will be available to the public from May 2012.

REVIEWOFOPERATIONS

The net operating deficit for the financial year to 31 December 2011 was $4,175,603 (2010: $7,306,177 surplus).

CHANGESINSTATEOFAFFAIRS

During the financial year there was no significant change in the state of affairs of the company, other than that referred to in the financial statements or notes thereto.

Médecins Sans Frontières Australia continued the strategy of face to face fundraising whereby the organisation contracts a third party to approach members of the public, in public places, to recruit new field partners. The financial impact continues to be that a cost is created at the outset that is more than made up over subsequent years of income. Médecins Sans Frontières Australia continues to diversify its sources of funding, and to increase the proportion of funding that comes from regular field partner donations.

From January 2007, Médecins Sans Frontières Australia started contracting and paying field staff directly from Australia when they go to the field. Field staff are seconded to and managed by the Operational Centre running the project.

Médecins Sans Frontières Australia

Directors’ report

The financial impact of this is not significant as the salary cost incurred by Médecins Sans Frontières Australia is recharged to the relevant Operational Centres.

During 2009, Médecins Sans Frontières Australia introduced a regional emergency response program, sending exploratory teams from Australia to regional emergencies, to assess potential operational response, to provide information to the Operational Centres, and to provide immediate short term assistance. During 2011, Médecins Sans Frontières Australia became responsible for the direct management of regional emergencies in the Asia Pacific and projects in Papua New Guinea through the establishment of a delocalised Médecins Sans Frontieres France Emergency Desk.

Médecins Sans Frontières Australia has continued to increase its cash reserves during 2011. However, given the consecutive surpluses achieved over the last few years, these funds will be released over the coming years to the relevant Operational Centres to allow additional support to field operations.

In 2010 Médecins Sans Frontières Australia recorded a substantial surplus and corresponding increase in equity, which was not paid out to Operational Centres due to a lack of operational need. In the current year operational needs have increased. As well as fulfilling Médecins Sans Frontières Australia’s budgetary requirements with regards to paying Operational Centres, an additional $5.5m was committed. This has given Médecins Sans Frontières Australia the opportunity to return its equity balance back to a typical basis and to return its cash base back to a typical basis once the payment is made. As such, at 31 December 2011 there is a significant cash balance with a corresponding payable recorded as a liability. These funds will be paid during 2012, in addition to the normal 2012 grants payable.

DONATIONSINKIND

Over the course of the year the company has received donations in kind from a number of sources. These donations may be physical assets for use in the company, items to be sent to the field or services provided to Médecins Sans Frontières at reduced rates.

The directors estimate the value of donations in kind received during the year to 31 December 2011 to be $161,580 (2010: $94,734). This amount has been brought to account in the financial statements.

VOLUNTARYASSISTANCEANDFIELDSTAFF

In addition to donations in kind the company recruits a number of staff in the field for Médecins Sans Frontières Operational Centres. There are five Médecins Sans Frontières Operational Centres and they are located in Belgium, France, Holland, Spain and Switzerland. Many of the field staff are professional staff. The company estimates the total salaries forgone for the year ended 31 December 2011 by volunteer field staff to Médecins Sans Frontières Operational Centres to be approximately $3,089,740 (2010: $3,226,904).

The company estimates that the total salaries forgone by field staff to Médecins Sans Frontières Operational Centres who undertook missions of less than three months to be approximately $715,164 (2010: $792,712).

Médecins Sans Frontières Australia

Directors’ report

Médecins Sans Frontières Australia also have a number of volunteers who freely give their time in the Australia office to assist in office based activities. The estimated value of this is approximately $106,300 (2010: $99,700).

This time donated by office volunteers, and salaries which would have been paid to the volunteers sent to the field, are not brought to account in the financial statements since they cannot be reliably measured.

MONEYSPENTINSOCIALMISSION

The mission of Médecins Sans Frontières Australia is to provide humanitarian assistance to populations in danger and to increase awareness of the plight of these populations. The international Médecins Sans Frontières movement as a whole targets and achieves an '80/20 rule' whereby at least 80% of expenditure is directly devoted to this social mission. In 2011 Médecins Sans Frontières Australia spent $49,789,000 to the social mission therefore representing 81% of total expenditure (2010: $40,211,000 or 80%). Médecins Sans Frontières Australia uses a conservative value for calculating its social mission ratio which excludes field worker expenses which are fully reimbursed by Operational Centres. The net impact of this transaction on the Statement of Comprehensive Income is nil. In 2011 this amount was $3,094,000 and in 2010 it was $2,928,000. A number of factors impact the ratio and will continue to be ongoing factors:

• Nil institutional funding in 2011 (2010: $Nil), which is expected to continue in 2012.

• Maintaining sufficient levels of cash reserves in subsequent years to preserve the safety of operational funding.

• Responding to the operational needs of the Operational Centres.

SUBSEQUENTEVENTS

There has not been any matter or circumstance that has arisen since the end of the financial year that has significantly affected, or may significantly affect, the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.

FUTUREDEVELOPMENTS

It is likely that in future financial years the company will continue to provide operational, financial and human resource support to the field operations of Médecins Sans Frontières financed substantially by income from private fundraising. Where possible, subject to the availability of resources, the company intends to increase its level of support for the field operations of Médecins Sans Frontières.

DIVIDENDS

Under the terms of the company’s constitution, the company is not authorised to pay dividends.

Statement of Comprehensive Income (i) for the financial year ended 31 December 2011

(i) A full year income statement which complies with the ACFID Code of Conduct is set out in Note 23 of the financial report on page 38.

(ii) All revenue and costs arise from continuing operations. No operations have been discontinued.

Notes to the financial statements are included on pages 17 to 44

Médecins Sans Frontières Australia

Statement of Financial Position as at 31 December 2011

Notes to the financial statements are included on pages 17 to 44

Statement of Changes in Equity for the financial year ended 31 December 2011

Notes to the financial statements are included on pages 17 to 44

Médecins Sans Frontières Australia

Statement of Cash Flows for the financial year ended 31 December 2011

Notes to the financial statements are included on pages 17 to 44

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

1. GENERALINFORMATION

Médecins Sans Frontières Australia is a public company limited by guarantee, incorporated and operating in Australia.

Principal registered office and principal place of business:

Suite C Level 1

263 Broadway

Glebe, NSW 2037

Tel: (02) 8570 2600

2. SIGNIFICANTACCOUNTINGPOLICIES

StandardsandInterpretationsaffectingamountsreportedinthecurrentperiod

Standards and Interpretations adopted with no effect on financial statements

The following new and revised Standards and Interpretations have been adopted in these financial statements. Their adoption has not had any significant impact on the amounts reported in these financial statements but may affect the accounting for future transactions or arrangements.

• AASB 2010-3 Amendments to Australian Accounting Standards arising from the Annual Improvements Project and AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project

The amendments have led to a number of changes in the detail of the company’s accounting policies – some of which are changes in terminology only, and some of which are substantive but have had no material effect on amounts reported.

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

SIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)

Standards and Interpretations in issue not yet adopted

At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective:

Standard/Interpretation

Effectiveforannual reportingperiods beginningonorafter

Expectedtobe initially appliedinthe financial yearending

• AASB 127 Separate Financial Statements (2011)

• AASB 9 Financial Instruments (December 2010), AASB 2010-7

Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)

• AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2

Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

• AASB 13 Fair Value

Measurement and related AASB2011-8 Amendments to Australian Accounting Standards arising from AASB 13

• AASB 119 Employee Benefits (2011), AASB 2011-10

Amendments to Australian Accounting Standards arising from AASB 119 (2011) and AASB 2011-11 Amendments to

• AASB 119 (September 2011) arising from Reduced Disclosure Requirements

1 January 2013

Applies on a modified retrospective basis to annual periods beginning on or after 1 January 2013

Applies to annual reporting periods beginning on or after 1 July 2013 but may be early adopted for annual reporting period beginning on or after 1 July 2009

1 January 2013

31 December 2013

31 December 2013

31 December 2013

31 December 2013

1 January 2013

31 December 2013

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

2. SIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)

• AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements

• AASB 2011-9 Amendments to Australian Accounting Standards - Presentation of Items of Other Comprehensive Income

1 January 2013

31 December 2013

Applies to annual reporting periods beginning on or after 1 July 2012, with early adoption permitted

31 December 2012

The directors anticipate that the adoption of the Standards and Interpretations in future periods will have no material financial impact on the financial statements of the company.

StatementofCompliance

The financial report is a general purpose financial report, which has been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations and complies with other requirements of the law. Accounting Standards include Australian equivalents to International Financial Reporting Standards (‘A-IFRS’).

A statement of compliance with IFRS cannot be made due to the application of not for profit sector specific requirements contained in the A-IFRS.

BasisofPreparation

The financial report has been prepared on the basis of historical cost. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

Adoptionofnewandrevisedaccountingstandards

In the current year the company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current annual reporting period.

The following significant accounting policies have been adopted in the preparation and presentation of the financial report.

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

2. SIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)

(a) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(b) Donations in kind and voluntary assistance

Over the course of the year the company has received donations in kind from a number of sources. These donations may be items to be sent to the field or services provided at reduced rates. Donations in kind of plant and equipment are recorded at fair value. Items to be sent to the field and services provided for no consideration are also brought to account in the financial statements at the fair value of the items or services received.

In addition to donations in kind, both office volunteers and field staff sent to the field donate their time to Médecins Sans Frontières Australia. This time donated by office volunteers and salaries foregone by volunteers sent to the field are not brought to account in the financial statements since they cannot be reliably measured.

(c) Employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave when it is probable that settlement will be required and they are capable of being measured reliably.

Liabilities recognised in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.

Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the company in respect of services provided by employees up to reporting date.

Defined contribution plans

Contributions to defined contribution superannuation plans are expensed when incurred.

Notes to the financial statements for the financial year ended 31 December 2011

2. SIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)

(d) Fundraising expenses

Fundraising expenses include those costs, which are directly attributable to fundraising, such as function expenses, promotions, printing and mailing and employee expenses. These expenses are brought to account in the period in which they are incurred.

(e) Financial assets

Loans and receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment.

Interest is recognised by applying the effective interest rate.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discount) through the expected life of the financial asset or where appropriate, a shorter period.

Income is recognised in an effective interest rate basis for debt instruments other than those financial assets ‘at fair value through profit or loss’.

Impairment of financial assets

Financial assets, other than those at fair value through profit or loss are assessed for indicators of impairment at each balance date. Financial assets are impaired where there is objective evidence that as a result of one or more events that occurred after the initial recognition of the financial asset the estimated future cash flow of the investment have been impacted.

For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flow, discounted at the original effective interest rate.

Notes to the financial statements for the financial year ended 31 December 2011

2. SIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)

The carrying amount of financial assets including uncollectable trade receivables is reduced by the impairment loss through the use of an allowance account. Subsequent recoveries of amounts previously written off are credited against the account. Changes in the carrying amount of the allowance account are recognised in profit or loss. In a subsequent period if the amount of the impairment loss decreased and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit and loss to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

(f) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

ii. for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivable as payables.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(g) Impairment of assets

At each reporting date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Where the asset does not generate cash flows that are independent from other assets, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Notes to the financial statements for the financial year ended 31 December 2011

2. SIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cashgenerating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.

(h) Income tax

Section 50-5 of the Income Tax Assessment Act provides that certain bodies will be exempt from income tax. The company is exempt from income tax in accordance with the Act; accordingly no provision for income tax has been recorded.

(i) Leased assets

Leases are classified as finance leases when the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. All other leases are classified as operating leases.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating lease are recognised as an expense in a manner consistent with the basis on which they are determined.

Notes to the financial statements for the financial year ended 31 December 2011

2. SIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)

Lease incentives

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefits of incentives are recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

(j) Payables

Trade payables and other accounts payable are recognised when the company becomes obliged to make future payments resulting from the purchase of goods and services.

(k) Plant and equipment

Plant and equipment and leasehold improvements are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item.

Depreciation is provided on plant and equipment and is calculated on a straight-line basis so as to write off the net cost of each asset over its expected useful life to its residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, with the effect of any changes recognised on a prospective basis.

(l) Provisions

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of provision.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

Notes to the financial statements for the financial year ended 31 December 2011

2. SIGNIFICANTACCOUNTINGPOLICIES(CONTINUED)

(m) Revenue recognition

The timing of the recognition of donations, fundraising, legacies and bequests depends when control of these contributions or right to receive these contributions is obtained, which is usually upon receipt of the monies.

Where monies are received relating to a specific project to take place in the following year, the amount so received is brought to account as income received in advance on a time proportionate basis. Interest revenue is recognised on a time proportionate basis that takes into account the effective interest rate.

3. CRITICALACCOUNTINGJUDGEMENTSANDKEYSOURCESOFESTIMATION UNCERTAINTY

In the application of A-IFRS management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements that management has made that have the most significant effect on the amounts recognised in the financial statements:

i. Provisions for employee entitlements – management judgement is applied in determining the future increase in wages and salaries, future on cost rates and experience of employee departures and expected period of service. Refer to note 14 for further details.

ii. Make good provisions - Provisions for future costs to return certain leased premises to their original condition are based on the company’s past experience with similar premises and estimates of likely restoration costs. These estimates may vary from the actual costs incurred as a result of conditions existing at the date the premises are vacated.

iii. Estimation of the useful lives of assets - The estimation of the useful lives of assets has been based on historical experience. In addition, the condition of the assets is assessed where necessary and considered against the remaining useful life. Adjustments to useful lives are also made when considered necessary.

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

4. REVENUE

(a)Revenue

Revenue from operations consisted of the following items:

(b)Profitbeforeincometax

Profit before income tax has been arrived at after crediting/ (charging) the following gains and losses:

Profit before income tax has been arrived at after charging the following expenses:

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

5. KEYMANAGEMENTPERSONNELREMUNERATION

The directors and other members of key management personnel of Médecins Sans Frontières Australia during the year were

• Dr Nicholas Coatsworth (President, non-executive)

• Ms Emma Timmins (National Vice President, resigned 28 May 2011, non-executive)

• Ms Veronique Avril (International Vice President, non-executive).

• Mr Peter Hooker (Treasurer, non-executive)

• Mr Constantinos Asproloupos (non-executive)

• Dr Pauline Horrill (Resigned 25 April 2011, non-executive)

• Dr Kamalini Lokuge (non-executive)

• Ms Jane Coster (non-executive)

• Mr Marc Gastellu-Etchegorry (non-executive)

• Dr Stewart Condon (non-executive), elected 28 May 2011

• Mr Hichem Demortier (non-executive), elected 28 May 2011

• Mr Paul McPhun (Executive Director and Company Secretary)

• Mr John Burns (Head of Fundraising)

• Dr Myrto Schaefer (Head of Project Unit)

• Mr James Nichols (Head of Communications)

• Mr Robin Sands (Head of Field Human Resources)

• Ms Michelle Ingman (Head of Finance & Administration), on leave 19 November 2010

• Mr Mark Alley (Head of Finance & Administration), appointed 19 November 2010, resigned 9 July 2011

• Ms Melanie Triffitt (Head of Finance & Administration), appointed 15 August 2011

The directors provide their services on a voluntary basis. The aggregate compensation of the key executive management personnel of the company is set out below:

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

7. PLANTANDEQUIPMENT

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

7. PLANTANDEQUIPMENT(CONTINUED)

The following estimated useful lives are used in the calculation of depreciation:

• Office furniture and equipment 5 years

• Computer equipment 3 years

• Leasehold improvements (i) Over the term of the lease

(i) Leasehold improvements have been included into the category of Furniture and Fittings above.

(ii) Software development has been included into the category of Office Equipment above.

Aggregate depreciation allocated as an expense of other assets during the year:

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

Médecins Sans Frontières Australia

14. PROVISIONS

The provision for make good represents the present value of the expenditure required to settle the make good obligation at the reporting date.

15. RETAINEDEARNINGS

16. MEMBERSGUARANTEE

The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the Constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligations of the company. At 31 December 2011, the number of members was 286 (2010: 300).

17. RELATEDPARTYDISCLOSURES

Médecins Sans Frontières Australia provides services to and receives services from Médecins Sans Frontières International entities.

The Board of Médecins Sans Frontières Australia approved the payment of the following business expenses incurred by the directors of the company in the course of their duties as a Director.

Ms Emma Timmins

Mr Dino Asproloupos

Dr Nicholas Coatsworth

Mr Peter Hooker

Ms Veronique Avril

Mr Marc Gastellu-Etchegorry

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

18. SUBSEQUENTEVENTS

On 16 January 2012, a new office lease was signed for a five year term. The commitment for expenditure on this lease has been included in Note 19. There has not been any other matter or circumstance that has arisen since the end of the financial year that has significantly affected, or may significantly affect, the operation of the company, the results of those operations, or the state of affairs of the company in future financial years.

19. LEASES Operatingleases

Leasing arrangements

There are three operating leases. The first operating lease relates to office facilities and for the term of 6 years between 01/07/06 to 31/05/12. This operating lease contract contains rent increases per year equivalent to CPI. The lease contract does not have an option to renew the lease or the option to purchase the leased asset at the expiry of the lease period. This lease contract also contains a clause whereby the lessor can provide Medecins Sans Frontieres Australia with written notice to vacate the leased premises within 9 months. This notice can be provided at any time.

The second operating lease relates to office facilities and for the term of 5 years between 01/06/12 to 31/05/17. This lease was signed on 16 January 2012. This operating lease contract contains rent increases per year equivalent to CPI. The lease contract has an option to renew the lease but no option to purchase the leased asset at the expiry of the lease period.

The third operating lease is for the office photocopier/printer. This is a 4 year lease for the term between 12/6/09 and 11/6/13. The lease is a fixed price per month for the duration of the contract. The lease contract does not have an option to renew the lease nor the option to purchase the leased asset at the expiry of the lease period.

Non-cancellable operating lease payments

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

19. LEASES(CONTINUED)

In respect of non-cancellable operating leases, the following liabilities have been recognised:

20. COMMITMENTSFOREXPENDITURE

Non-cancellable operating lease commitments are disclosed on note 19 to the financial statements.

21. NOTESTOTHESTATEMENTOFCASHFLOWS

(a) Reconciliationofcashandcashequivalents

For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial period as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows:

(b) Reconciliation of (deficit)/surplus for the period tonetcashflowsfromoperatingactivities

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

22. FINANCIALINSTRUMENTS

(a)CapitalRiskManagement

The capital structure of the company includes cash and cash equivalents and retained earnings.

The carrying amount reflected above represents the company's maximum exposure to credit risk for such loans and receivables.

(c)Liquidityriskmanagementobjectives

The directors manage the financial risks relating to the operations of the company. These risks include credit risk, liquidity risk and cash flow interest rate risk.

The company does not enter into or trade financial instruments, including derivative financial instruments for speculative purposes.

(d)MarketRisk

The company's exposure to market risk is the effect of changes in interest rates and foreign exchange rates which would affect the interest received and payments to related companies in foreign currencies.

(e)LiquidityRisk

The ultimate responsibility for liquidity risk management rests with the board of directors. The company manages liquidity risk by maintaining adequate cash balances and monitoring forecasts and actual cash flow.

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

22. FINANCIALINSTRUMENTS(CONTINUED)

(e)LiquidityRisk(continued)

The following table details the company's remaining contractual maturity for its nonderivative financial liabilities. The table has been drawn up based on undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

(f)Interestrateriskmanagement

The company is exposed to interest rate risk as it invests its surplus funds in variable rate instruments. The risk is managed by regular review of its variable interest rate investments.

Maturity profile of financial instruments

The following table details the company’s exposure to interest rate risk as at 31 December 2011:

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

22. FINANCIALINSTRUMENTS(CONTINUED)

(f)Interestrateriskmanagement(continued)

(g)Fairvalue

The carrying amount of the financial assets and financial liabilities represents a reasonable approximation of fair value.

Notes to the financial statements for the financial year ended 31 December 2011

22. FINANCIALINSTRUMENTS(CONTINUED)

(h)Creditrisk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the company. The company has adopted a policy of only dealing with credit worthy counterparties as a means of mitigating the risk of financial loss from defaults.

The company does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics.

Interestratesensitivityanalysis

The sensitivity analysis below has been determined based on the exposure to interest rates for the company’s financial instruments at the reporting date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. At reporting date, if interest rates had been 50 basis points higher or lower and all other variables were held constant, the company’s:

• net surplus would increase by approximately $606 and decrease by approximately $606 (2010: increase by approximately $850 and decrease by approximately $850). This is mainly attributable to the company’s exposure to interest rates on its variable rate instruments.

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

23. DETAILEDINCOMESTATEMENTFORTHEYEARENDED31DECEMBER2011

The following disclosure has been made to satisfy the requirements of the Charitable Fundraising Act 1991 and the requirements of the Australian Council for International Development code of conduct. Non monetary income and expenses are disclosed separately, unlike the Income Statement where they are included in the relevant income or cost line.

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

24. DETAILED BALANCE SHEET FOR THE YEAR ENDED31DECEMBER2011

24.

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

DETAILED BALANCE SHEET FOR THE YEAR ENDED31DECEMBER2011(CONTINUED)

25. DETAILED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER2011

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

26. DETAILSOFFUNDRAISINGAPPEALS

Details of aggregate gross income and total expenses of fundraising appeals (i):

Less: total direct costs of fund raising appeals

(i) The Charitable Fundraising Act 1991 defines income from fundraising appeals as excluding bequests and unsolicited donations. The total income shown above includes both bequests and unsolicited donations, shown as separate items. Income excluding these amounts was $49,663,421 in 2011 (2010: $50,758,631). Net surplus excluding these amounts was $41,672,037 in 2011 (2010: $43,675,650).

Income is reported against the original donation source, in order to reflect the full income generated by appeals.

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

27. FUNDSRECEIVEDFROMTHEGENERALPUBLIC APPLIEDINCHARITABLEPURPOSES

was applied to the charitable purposes in the following manner:

to overseas projects were expended by the following parties on behalf of Médecins Sans Frontières

(i) This number is the net surplus from all fundraising appeals, excluding indirect costs of fundraising.

(ii) This number is different than that in the Income Statement due to the fact that non monetary expense has not been included into this balance as it is not funds received from the general public.

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

28. COMPARISONSOFCERTAINMONETARYFIGURES&PERCENTAGES

Gross comparisons including fundraising income and costs not covered by the CharitableFundraisingAct1991

Médecins Sans Frontières Australia

Notes to the financial statements for the financial year ended 31 December 2011

29. LISTOFTYPESOFFUNDRAISINGAPPEALSCONDUCTEDDURINGTHE FINANCIALPERIOD

Newspaper and Magazine Advertisements and Inserts

Direct and Unaddressed Mail Donor Acquisition

Field Partner (Regular Giving) Acquisition and Retention

Trusts and Foundations

Bequest Program

Major Donor Program

Telefundraising Program

Workplace Giving Online

No single appeal within the types listed above, or other form of fundraising for a designated purpose, generated 10% or more of total income for the period under review.

First published April 2012

Médecins Sans Frontières Australia

ABN 74 068 758 654

PO Box 847, Broadway NSW 2007, Australia

Phone: +61 2 8570 2600

1300 136 061

Fax: +61 2 9552 6539

Email: office@sydney.msf.org

© 2012 Médecins Sans Frontières Australia

front cover: © Ron Haviv/VII

www.msf.org.au