Financial report 2011 by MSF Greece

Médecins Sans Frontières Greece Financial report for the financial year ended 31 December 2011

Board of Directors report Financial review Independent Auditor’s report Financial statements Financial statements : final notes

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BOARD OF DIRECTOR REPORT The Board of Directors (BoD) present its Report along with the financial statements of Médecins Sans Frontières Greece, (MSF‐Greece) or “the Association”, for the year ended 31 December 2011. The Financial Statements have been prepared in accordance with the provision of the Accounting Standards prescribed by Greek Company Law.

Board of Directors Members Ioanna Papaki – President Christos Christou – Vice President Dimitris Varthalitis – General Secretary Evangelia Stratoudaki – Treasurer Maria‐Evdokia Trikoupi – Board Member Theodorus Kreuzen – Co‐opted Member 1, MSF Spain Charlotta Wanholm ‐ Co‐opted Member 2,MSF International

Executive Director Reveka Papadopoulou

Objectives and policies Médecins Sans Frontières (MSF) is an international non‐governmental medical‐humanitarian organisation which provides independent medical relief to victims of war, disasters, epidemics and other catastrophes in over 65 countries around the world. It strives to provide assistance to those who need it the most, regardless of ethnic origin, religion or political affiliation. To get access to and care for the most vulnerable, MSF’s operational policies must remain scrupulously independent of governments, as well as religious and economic powers. We rely on private individuals for the majority of our funding. In the field, we conduct our own assessments, manage projects directly and monitor the impact of our assistance. We also campaign for improved access to medicines for the most vulnerable groups and fund research into the development of drugs for neglected diseases. Each year about 2,000 doctors, nurses, logistics specialists and engineers of all nationalities leave on field assignments to join around 23,000 staff already working in the countries of assistance As a member‐section of the International Movement Médecins Sans Frontières Grece, (the Association), participates in, supports and implements the decisions of the Organization’s International Council. For the accomplishment of the above‐mentioned objectives, the Association may by way of indication and not limitation may : a. Recruit human resources, prepare and train personnel or volunteers, in order to carry out medical, administrative or other technical tasks. b. Finance and participate in missions in co‐ordination and co‐operation with the International Movement of Médecins Sans Frontières and c. Take all kinds of action in order to inform the public and increase public awareness about medical humanitarian needs all over the world. All those working with MSF agree to abide by the principles of the International Charter of MSF as follows: 1. 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.

2. Médecins Sans Frontières observes strict 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. 3. Médecins Sans Frontières’ volunteers undertake to respect their professional code of ethics and to maintain complete independence from all political, economic and religious powers. 4. As volunteers, members are aware of the risks and dangers of missions they undertake, and have no rights to compensation for themselves or their beneficiaries other than that which Médecins Sans Frontières is able to afford them.

Organizational structure and governance a) MSF Greece Constitution MSF‐ Greece was established on the 3 December 1990 as a humanitarian non profit Association based on voluntary offer, according to decision 3780/1990 of the One‐Judge Court of First Instance of Athens. Board & Executive Membership consists of personnel who work or who have worked for us in MSF projects in Greece and overseas or who have worked at the Association’s headquarters in Greece or overseas. The qualification of memberships shall be acquired by a decision of the Board of Directors. The Association is governed by the Board of Directors, which consists of five (5) members elected by the Ordinary General Assembly (supreme body of the Association) and two (2) co‐opted members that are members of other MSF associations which are appointed by the Board of Directors. The Board of Directors has the power to decide on any issue concerning the governance of the Association and the administration of its property, except those issues which by law or the present Statutes fall within the powers of the General Assembly. The Board of Directors appoints the General Director who leads the implementation of the long‐term vision and strategy for MSF‐Greece based on the general orientations and the general policy of the organization, as determined by the General Assembly. The Board of Directors appoints the chartered accountants and submits the yearly financial report for approval to the General Assembly. b) MSF OCBA The two associations of MSF (Greece) and MSF Spain have signed a partnership agreement for the OCBA (Operational Center Barcelona Athens) which is common operational project. This agreement has been set up to better reach the aim of shared operationally which has been a chosen model in order to maximize resources and share responsibilities. With this agreement, MSF Greece is part of the decision‐making process over the operational portfolio of the OCBA, and provides support to the social missions through its expertise (operational cell based in Athens), Human Resources sent overseas (expatriates contracted by MSF Greece), as well as funding raised in Greece (private and public funds), while all the missions’ costs are integrated in the MSF Spain books – due to a better rationalization of resources all legal responsibilities of the projects fall under MSF Spain frame. In 2011, MSF Greece was operating five missions (Zambia, Niger, Morocco, Democratic Republic of Congo and Greece). In 2011 MSF Greece co‐funded seven missions in Sudan, Yemen, and Palestine territory, Zimbabwe, Somalia, Niger and Greece.

Moreover, 100 volunteers of the Greek section have already participated in the field during 2011, in missions operated by OCBA, as well as other MSF operational centers. c) International Organisational Structure Founded in Paris in 1971, MSF has become an international organisation with nineteen sections throughout the world and one international office based in Geneva. All the MSF offices agree to abide by the principles of the International Charter of MSF. All sections work in collaboration with one another and meet regularly through various forums to discuss operational and cross‐cutting issues. Resource provision between the entities is at arm’s length and all the sections are separate legal entities.

FINANCIAL REVIEW Revenue 2011 Revenue Private funds

Euro

3.871.435

99%

5.096.985

98%

44.692

113.266

3.916.127

100,00%

5.210.251

100,00%

Institutional funds Other revenues Total

2010

Euro

As part of the Association’s effort to guarantee independence and strengthen its link with home society, it was maintained a high level of private income, with almost 100% of our funds coming from private revenues.

Expenses MSF Greece allocated 62 % of its expenses to social mission including 52% for the immediate support of field costs. 2011 Expenses Programs

2010

Euro

2.309.599

52%

2.532.685

52%

Headquarter Programs support

180.755

266.127

Témoignage / Awareness-raising

262.448

393.871

Other Humanitarian activities Social mission expenses

2.756.822

62%

3.192.683

66%

Fundraising Management, general administration

1.069.530

24%

985.017

20%

636.126

14%

648.172

14%

Support expenses

1.705.656

38%

1.633.189

34%

Total

4.462.478

100,00%

4.825.872

100,00%

Exchange difference losses

Programs Represent the direct cost of offering medical and humanitarian support to the populations affected by armed conflicts, natural disasters, epidemics and neglected diseases. These includes costs such as international and national personnel, office running costs in the field, medical and nutrition, logistics and sanitation, trainings, transport and freight, consultants. Headquarter Programs support Headquarters programme support relates to headquarters expenses incurred in order to carry out MSF humanitarian operations (e.g. project design, monitoring and evaluation, recruitment of expatriates, activities designed to improve the quality and the effectiveness of MSF operations).

1.189

Témoignage / Awareness raising Comprise expenses incurred by MSF in an educational manner to further its social mission. They represent the situations where MSF acts as a witness and speaks out about the plight of the populations it serves through trying to mobilise the international community and by issuing information publicly in order to inform, put pressure on responsible actors and stimulate action. Too often in the countries where MSF works, we cannot treat our patients because the medicines are too expensive or they are no longer produced. Sometimes, the only drugs we have are toxic or ineffective, and nobody is looking for a better cure. As a medical humanitarian organisation, it is fundamentally unacceptable to MSF that access to essential medicines is becoming almost impossible, particularly for the common global infectious diseases. Since 1999, MSF has been campaigning internationally to find long-term, sustainable solutions to this crisis. The Access to Essential Medicines Campaign is pushing to lower the prices of existing medicines, to bring abandoned drugs back into production, to stimulate research and development for diseases that primarily affect the poor, and to overcome other barriers to access.

Other Humanitarian activities The other humanitarian activities consist primarily of the cost of the goods sold and services provided to other organizations, as well as MSF’s contribution to the Drugs for Neglected Disease initiative, also called DNDi. DNDI aims at developing drugs and other health tools for people suffering from neglected diseases. Fundraising Fundraising expenses represent the costs incurred for raising funds from all possible sources of income, be they private or public institutional. MSF organizes several fundraising activities, so as to increase financial support from private donors in order to achieve financial independence that gives the organization the freedom to base its interventions on the actual needs of the populations and not on political and financial interests and pressures. Management, general administration Management, general and aadministration represent the expenses incurred for the management and the administration of the organisation. They consist primarily of expenses associated with executive management, headquarters finance and human resources management, internal communication and the associative life of the organisation

FINANCIAL STATEMENTS For the year ended 31/12/2011:  Statements of financial position (Balance sheet)  Statements of financial activities (Income Statement)

NOTES TO THE FINANCIAL STATEMENTS 1.1 General Information MSF ‐ Greece was established on the 3 December 1990 as a humanitarian non profit Association based on voluntary offer, according to decision 3780/1990 of the one‐judge court of first instance of Athens.

1.2 Basis of presentation The Financial statements comprise of the Balance Sheet, Income Statement and the Final Notes reg. the Financial Statements. Those have been prepared on the basis of the accounting records in that very same format provided by the Greek General Chart of Accounts.

The Financial Statements have been prepared in accordance with the provision of the Accounting Standards prescribed by the Greek Company of Law and have been audited on a regular basis (annually) by independent certified auditors who issue a final Auditor’s report. 1.3 Amortizable costs / Intangible & Tangible assets Amortizable costs and Intangible assets are measured at cost and depreciated on a straight‐line basis over a 3 year period. Tangible assets are measured at cost. They are depreciated using the straight‐ line method over the estimated useful lives, as follows: • Land: no depreciation, • Buildings: 50 years • Fixtures: 3 years, • Furniture, computers, machinery and equipment: 3 years, • Other tangible assets: 3 years. 1.4 Debtors / Receivables Grants receivable represent the funds pledged by a third party but not yet received at year end. Legacies & bequests are accounted for on a cash basis and are therefore not included in receivables (see paragraph 1.10 Legacies and bequests).

1.5 Cash at bank and in hand Amounts represent high liquid investments such as Cash on hand, time deposits, etc.

1.6 Revaluation reserves ‐ Investment grants This account includes collected donations that according to the administrative council’s decision (24.07.98) used for the funding of the construction of the building at “15 Xenias street” where the Association’s offices are located. Since 2003, when the building started being depreciated the related depreciation expense is transferred to the income statements of each year. 1.7 Results carried forward Results carried forward represent cumulated surpluses and deficits of the current and previous years. 1.8 Provisions A provision is a liability of uncertain timing or amount. A liability is a present obligation of the Association arising from past events, the settlement of which is expected to result in an outflow from the Association of resources embodying economic benefits. The amount recognized as a provision in the best estimate of the expenditure required to settle the present obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provisions should be reversed. A provision should be used only for expenditures for which the provision was originally recognized.

1.9 Liabilities/accruals and deferred income Trade and other accounts payable are recorded when the invoices are received before year‐end. Accrued expenses are cost which are not payable at year end. 1.10 Income MSF’s revenue comprises contributions from the public generosity, and public institutional bodies, as well as revenues from other activities. Private resources represent all resources provided by individuals, private organizations (companies, trusts and foundations, other not for profit organization) and coming from MSF own activities. Public institutional resources represent grants (i.e. contributions based on contracts for specific projects), subsidies and donations received or pledged directly from / by public institutional bodies such as governments or multi‐lateral agencies. Income from other activities is mainly related to financial income transactions. Restricted income Income is considered restricted only when associated with a donor‐imposed restriction. Donors include all third parties which contribute to MSF’s resources. A donor‐imposed restriction is a stipulation and limitation in the use of contributed assets or monetary donations. The restrictions can be limited to purpose (country, project, type of intervention, specific activities); time or specific wishes (vaccines, donations awarded for buildings renovation). Donations with donor‐imposed restrictions are recorded as restricted for their full amount. Grants are recorded as restricted for the allowable expenses incurred in the current year. Unrestricted Income Income is considered as unrestricted, if not associate with a donor –imposed restriction. Legacies and bequests If restricted by a donor’s will for use by the Association (selling or distribution forbidden), legacies and bequests are accounted for as restricted income and as the appropriate nature of asset (building, other financial assets, other inventories) in case that there is an intention to use the assets for a long period. If not restricted by donors, legacies and bequests are accounted for upon realisation. 1.11 Expenses Expenses are allocated to the financial statements according to the full cost method. The principle of the full cost method is to allocate under each expenses’ category, not only the direct costs that are specifically associated with it (direct allowable costs), but also an apportionment of the indirect costs (overheads). Therefore all expenses’ categories include salaries, other direct costs and allocated overheads (building costs, depreciation, etc). 2 STATEMENT OF FINANCIAL POSITION (Balance sheet)

2.1 Amortizable costs Analysis of movement in this account, in Euros, is as follows: Balance at Category 31.12.2010 Additions Software Depreciation Net book Value

33.798 (22.266)

0 (6.759)

33.278 (29.025)

11.532

(6.759)

4.773

2.2 Intangible assets Analysis of movement in this account, in Euros is as follows: Balance at Category 31.12.2010 Additions Rights on industrial property 2.494 480 Depreciation (864) (545) Net book Value

Balance at 31.12.2011

1.630

(65)

Balance at 31.12.2011 2.974 (1.409) 1.565

2.3 Tangible assets Analysis of movement in this account, in Euros, is as follows: Balance at Category (Gross Value) 31.12.2010 Additions

Disposals

Balance at 31.12.2011

Land Buildings & Technical works Transportation equipments Furniture and Fixtures

74.647 0 0 1.916.651 48.763 (48.763) 54.164 (12.397) 0 370.928 3.047 0

74.647 1.916.651 41.767 373.975

Gross Value

2.416.390

2.407.040

39.413

(48.763)

At 31/12/09 Building & technical works related to the MSF Greece office – Athens Xenias 15. Land comprises the building plot of Xenias 15, and one land in Chalkidiki. Analysis in accumulated depreciation, in Euros, is as follows: Balance at Balance at Items 31.12.2010 Additions Disposals 31.12.2011 Buildings & Technical works Transportation equipments Furniture and Fixtures

(442.180) (38.433) (365.007)

(38.333) 9.880 (3.590)

(480.513) (28.553) (368.597)

Total

(845.620)

(32.042)

877.662

Tangible assets are recorded at cost and related to the Association’s headquarters. 2.4 Financial assets Analysis of movement in this account, in Euros, is as follows: Balance at Balance at Category 31.12.2010 31.12.2011 Other long term receivables

368

Net 368 368 This account refers to long term receivables from guaranties given (Water Supply Company and Electricity Company for MSF Greece office). 2.5 Debtors / Receivables Analysis of this caption, in Euros, is as follows: Category Sundry debtors Grants receivables MSF sections and satellites: MSF Belgium MSF Canada MSF France MSF Holland MSF Italy MSF International MSF Luxembourg MSF Spain MSF Switzerland Total

Balance at 31.12.2010

Balance at 31.12.2011

151.431 0

255.388 0

106 178 0 857 0 30745 0 372.966 0

9.626 0 965 10.962 0 81.172 0 101.791 2.116

556.283

462.020

Sundry debtors mainly relate to donations deposited through the post office (ELTA) and the donation from Niarchos Foundation which has not yet been collected at year end. These donations are deposited in the Association’s bank accounts during the first days of the following year. The outstanding balances with MSF Spain is related mainly to the cost of our operational cell in the frame of the common operational project (OCBA). 2.6 Cash at banks and in hand Analysis of this account, in Euros, is as follows: Category Cash in hand Cash in Banks

Balance at 31.12.2010

Balance at 31.12.2011

9.436

17.378

1.480.669

821.011

Total 1.490.105 838.389 Cash at banks are held in current bank accounts. The Association’s reserve policy recommends keeping cash reserve with covering of 3 months of future activities. 2.7 Transitory assets Analysis of this account, in Euros, is as follows: Category Prepaid expenses Other prepayments and accrued income Total

Balance at Balance at 31.12.2010 31.12.2011 44.853 35.099 299

5.594

45.152

40.693

Prepaid expenses comprise mainly of prepaid insurance expenses of MSF’s assets and MSF employees. Accrued income relates to an expected discount from the post office (ELTA) and the provision from income of Televoting 2011. 2.8 Revaluation reserves‐Investment grants Analysis of this account, in Euros, is as follows: Category Grant for investments in fixed assets Reserve from donated real estate

Balance at Movements 31.12.2010 795.903

(19.600)

5.150

Balance at 31.12.2011 776.303

5.150

Total 801.053 (19.600) 781.453 Grants for investments in fixed assets include collected donations which according to the administrative council’s decision (24.07.98) were used for the funding of the construction of the building at “15 Xenias street”, where the organization’s offices are located. Since the year 2003, when the depreciations of the related building began, a proportional amount related to the depreciation is transferred to the Income statement of each year. Reserve from donated real estate represents an inferable value assessed by the Tax Authorities that is stated on the deeds of acquisition of the asset, since those assets were donated to the Association.

2.9 Results carried forward Analysis of movement in this account, in Euros, is as follows: Balance at Surplus / Category 31.12.2010 Deficit Result carried forward 2.267.079 (546.351) 2.267.079 (546.351)

Balance at 31.12.2011 1.720.728 1.720.728

Results carried forward comprise of the cumulative profits/deficits of the Association since its establishment in 1990. 2.10 Provisions Analysis of movement in this account , in Euros, is as follows: Balance at Balance at Category 31.12.2010 Additions 31.12.2011 Provision for staff leaving indemnity 94.556 (10.454) 84.102 Total 94.556 (10.454) 84.102

MSF Greece has established a provision for staff leaving indemnity since 2006, according to the Greek Law. 2.11 Liabilities Analysis of this account, in Euros, is as follows: Balance at Balance at Category 31.12.2010 31.12.2011 Suppliers 139.196 127.437 MSF sections and satellites: 195.869 414 Taxes ‐ duties 28.003 17.788 Social security organization 84.819 81.407 Sundry creditors 240 2.211 Total 448.127 229.257 Liabilities mainly consist of amounts due to suppliers, employees, tax authorities and social security as well as to other MSF associated organizations. 2.12 Accruals and deferred income Analysis of this account, in Euros, is as follows: Balance at Balance at Category 31.12.2010 31.12.2011 Other accruals

55.995

52.616

Total 55.995 52.616 This account relates to invoices which have not been received at year‐end. The amount mainly includes auditors’ fees and insurance expenses.

3 – INCOME STATEMENT 3.1 Income Analysis of this account, in Euros, is as follows: Balance at Balance at Category 31.12.2010 31.12.2011 Revenues from Individual Donors: Donation 4.682.408 3.361.963 Legacies and bequest 0 0 Membership fees 2.400 74.414 Revenues from companies

412.177

433.198

5.096.985

3.871.435

Institutional funds

Total revenues public donors

7.013 105.823 0 430

5.504 37.040 0 2.148

113.266

44.692

5.210.251

3.916.127

Total revenues from donors

Financial interest Other revenues Investment subsidies Exchange rate gain Total other income Total income

Other revenues comprises mainly of prior year’s income and other extra‐ordinary income. 3.2 expenses Analysis of this account, in Euros, is as follows: Headquarter Témoignage Other Management Nature of program / awareness humanitarian. general and expenses Programs support raising activities Fundraising administration TOTAL 2011 Personnel costs 103.756 146.013 277.500 378.808 906.077 Travel & transportation 21.834 6.232 6.045 53.418 87.529 Professional services 11.565 4.611 31.604 52.495 100.275 Audit fees 15.990 15.990 Communication 10.042 4.118 29.384 13.991 57.535 Publications 48.598 124.509 173.107 Promotional expenses 1.170 11.897 552.159 10.082 575.308 Office expenses 16.289 12.332 28.048 22.196 78.865 Taxes 665 265 954 903 2.787 Private grants 2.309.599 23.012 61.497 2.394.108 Public grants Financial expenses 1.121 447 1.608 1.521 4.697 Others 5.985 8.469 14.455 Depreciation 12.347 4.923 17.718 16.756 51.744 TOTAL EXPENSES 2.309.599 184.774 262.447 1.069.529 636.126 4.462.477 Exchange rate losses

TOTAL 2010 1.132.332 157.920 79.069 13.500 57.801 151.652 454.060 56.276 2.133 2.635.701

9.123 26.142 50.162

4.825.871

 Personnel costs Personnel cost represents salaries and wages, social charges, private health insurance, pension costs, paid leave, luncheon vouchers, child care expenses and other personnel related costs or benefits. Highest and lowest salary and related position Position yearly gross salary in euro Lowest scale Highest scale

16.044 49.504

In 2011, personnel costs related to an average of 26,73 full time and part time employees working in the Association’s headquarters in Athens.  Travel & Transportation expenses This category consists of travel, accommodation and food/per diem expenses  Professional services expenses Professional services are related to expenses for external consultants and services and other professional fees (i.e.: legal fees)  Communication expenses Communication expenses include mainly telephone charges, Internet, fax, postage & couriers etc.  Publication expenses This category mainly consists of the design, printing and documentation, internal publications, annual reports and other (témoignage) reports, photos & media production.  Promotional expenses This category mainly consists of renewal /acquisition of donors’ lists, printed material, cost of telemarketing, advertising (including TV, radio, newspapers, magazines) and other promotional events.  Office expenses This category mainly consists of equipment maintenance, office maintenance & repairs, electricity, water, insurances official representation, supplies and stationery.  Private Grants Private grants and donations to third parties are related to the transfer of funds to other MSF sections for: - Program cost (see detail bellow) and program Headquarter support. - Contribution to the campaign for Access to essential medicines. - Contribution to the international office expenses. Details of private Grant allocated to program, in Euros, are as follows: Balance at 31.12.2011 SOMALIA 330.105 SUDAN 600.000 ZIMBABWE 180.000 YEMEN 500.00 PALESTINE 455.560 GREECE 134.699 NIGER 4.715 Contribution to international funds* 9.235 TOTAL 2.309.599

* Funds allocated to missions by the international office according to specific criteria such as operational innovation.  Financial expenses Financial expenses include Bank charges, including charges due to foreign transfers, excluding foreign exchange and interest banks.  Other expenses This category includes training expenses and expenses not included in the other category (i.e.: prior year expenses)  Depreciation This account represents depreciation of amortizable costs, intangible and tangible assets respectively