Financial statement

Financial statement

FINANCIAL STATEMENT FOR THE FISCAL YEAR ENDED AT 31/12/2005

Aide Médicale Internationale’s financial statement for the 2005 fiscal year shows a positive net accounting result of €198,776. While the annual budget grew by 27% compared to 2004, structure charges remained unchanged, allowing us to post an excess of resources. This being mainly due to savings made on management fees [administrative fees paid by various fund donors] and to the positive net accounting result in 2005, worth €39,981, it is important to consider this result as cyclical and not to underestimate the means which have to be implemented to efficiently manage and supervise field programs. So, the total equity and reserves in the liabilities column of the balance sheet rose to €881,832, a 29% increase compared to 2004.

Income/Resources

In 2005, out of €100 of income:

  • 90 come from public funding,
  • 6 come from private institutional funds [foundations, associations, local participation],
  • 3 from private donations,
  • 1 from other resources [financial and extraordinary income and adjustments for overprovision].

The activities of the association – uses column in the statement of sources and uses – are financed up to €11,440,152 in 2005, against €9,035,672 in 2004, by public and private funds collected [i.e. a 27% rise in activity].

Public funds

In 2005, foreign government funds increased by 108% compared to 2004 and now account for 14% of public funds, against 9% in 2004. [These are funds received from the Afghan government through the funding of the World Bank in Afghanistan and from the Swiss cooperation agency in Haiti]. It should be noted that the rise of approximately 12% in European Union funds [i.e. €804,000 more than in 2004] respects the fund diversification policy decided by AMI’s board of directors. European funds now only represent 63% of global resources in 2005, against 71% in 2004.

Resources coming from fundraising

Total resources coming from fundraising amount to €383,085 in 2005, against €128,569 in 2004, i.e. a 197% increase [€39,205 in the additional resources come from private donations and €187,300 from corporate donations].

Tsunami

The humanitarian crisis created by the Tsunami which hit South-East Asia set a huge fit of generosity from individuals and private companies. Total funds collected for victims of the Tsunami in 2005 amount to €122,000, among which €97,000 were collected in 2005 and €25,000 come from the reprofiling of donations collected in late 2004 [see reprofiling of allocated funds]. Thanks to funds collected, AMI opened medical missions in 2005 to support the victims of the Tsunami in Indonesia and Sri Lanka. In addition to donations collected, both missions were quickly financed by the help of Fondation de France [€438,000 in 2005], the French government and the European Union [€206,000 overall for both missions in 2005].

Allocated funds

Private and institutional resources collected which have not been allocated by 31/12/05 will be allocated in 2006, in accordance with the agreement made with donors and/or third party fund providers. These commitments have been taken into account in the allocated funds in the liabilities column of the balance sheet for a total amount of €687,175, among which:

  • €654,234 come from subsidies, especially from the French government, amounting to €244,372, Foreign governments, amounting to €202,844, and the European Union, amounting to €200,803.
  • €32,941 come from donations made for the victims of the Tsunami and allocated to the Sri Lanka mission in early 2006. Private funds and other resources Total private funds amounted to €1,104,299 in 2005, i.e. 9.7% of global resources, against 6% in 2004 [€520,368 in 2004]. This 89%-plus increase is mainly due to the funds given by Fondation de France for missions in Sri Lanka and Indonesia and to corporate patronage. Private funds are divided in 3 main parts:
  • Private institutional funds, consisting in funds collected from other organizations or private foundations. They increased significantly in 2005 [from €197,000 to €551,000].
  • Own funds, made up of donations from individuals, corporate patronage, sales, local participation and members annual fees. After two years of decrease, private donations collected rose in 2005 [€159,863 in 2005, against €122,454 in 2004, i.e. a 30.5% growth compared to 2004].
  • Other resources, meaning financial and extraordinary income as well as adjustments for overprovision.

The dual origin of AMI’s funding – private and public funds – ensures the independence of its decision-making process. Nevertheless, larger private funds would allow AMI to increase the field of action of its activities. Thus, it is still necessary to reinforce private funding, rally new donors and maintain the trust of those who have been faithful to AMI for many years and whom we heartily thank. In addition, the free cash flow depending on the ups and downs of payments made by public donors, the board of directors wishes to pursue in the coming years the diversification effort made in this respect to limit the impact of such ups and downs.

* Expenses

In 2005, out of €100 of income:

  • 92 are devoted to mission programs,
  • 5 cover the running operations of the head office, financial and extraordinary expenses as well as information and communication costs,
  • 1 is dedicated to private fundraising,
  • 2 make up the excess result and are reprofiled in AMI’s account.

AMI’s resources in 2005 thus mainly finance mission programs, which represent 92% of total costs.

The strong growth of expenses for the year 2005 is mainly due to the acceleration of activities in Afghanistan, the constant increase of activities in Thailand as well as in Sudan, and the opening of two new missions in Sri Lanka and Indonesia. Missions The number of missions supported by AMI, nine in 2005, was the same as in 2004. No mission was closed in 2005, whereas three had been closed in 2004.

* Afghanistan:

In 2005, total program expenses rose by 56% compared to 2004, from €2,325,000 to €3,632,000. The Afghan context, although still very unstable, calls for long-term reconstruction actions. In this respect, our programs perfectly answer the aid dynamic which exists in the country: support and reinforcement of the health policy of the Afghan Ministry of Health, set up of minimal health services in isolated provinces, participation to the elaboration of health policies at central level. These activities mainly focus on the long term and require important means for their implementation.

* Indonesia and Sri Lanka:

In the aftermath of the Tsunami which hit South-East Asia, we opened two new missions directly linked to populations who suffered from the disaster in Indonesia [€350,000] and in Sri Lanka [€238,000]. In the first country, the project tackles various areas of activity: improvement of the access of populations to primary health care, rehabilitation of health structures and psychological support of populations, information and training through the Health Messenger magazine.

* Sudan:

The activities of the mission opened in Sudan in 2004 were set up in a context still largely unstable. Total program expenses rose from €189,000 in 2004 to €663,000 in 2005. Our project of intervention aims at providing emergency support and access to health care to rural and displaced populations hit by the war in South Darfur.

* Thailand:

In 2005, total program expenses increased by 45% compared to 2004 [€1,142,000 in 2005 against €788,000 in 2004]. Our program to bring medical and sanitary assistance to populations who took refuge in the camps in Thailand registered a strong growth in terms of financial, material and human means due to the provision of health care to refugees in the Mae La camp.

* Democratic Republic of Congo – South-Kivu:

In 2005, total program expenses grew by 10% compared to 2004, from €1,865,000 to €2,042,000. Our program in the province of South-Kivu, in the Republic of Congo, aims at improving the access to quality health care for the populations of 55 health areas in the health zones of Lemera, Uvira, Fizi and Nundu-Lulenge, in particular for pregnant women, children under five years old, most vulnerable people [poor, displaced, returned, repatriated, refugee people] and the victims of sexual violence. The program has been constantly developed since its implementation.

* Haiti: In 2005, total program expenses decreased compared to 2004 [from €458,000 in 2004 to €224,000 in 2005] as we refocused our activities on two main areas: medical aid and prevention for street children and youth in the city of Port-au-Prince. In addition to giving access to quality health care and an adequate medical follow-up, the program consists in informing and raising awareness among street children and youth on at-risk behaviors and their consequences, highlighting HIV/AIDS transmission issues.

* Myanmar:

Despite the difficulties coming from relations with local authorities, our activities remained stable in 2005, expenses rising by 12% [from €1,304,000 in 2004 to €1,457,000 in 2005].

* Palestine:

In 2005, total program expenses remained stable compared to 2004 [€112,000 in 2004 against €96,000 in 2005].

* Head office

To answer the rise in activities witnessed in 2005, we increased the permanent staff of the head office creating a third desk in charge of the new missions opened in 2005. The total permanent staff at 31/12/2005 is now made up of 17 people. The gross payroll made up by the unallocated staff of the head office rose by 21%, from €211,000 in 2004 to €255,000 in 2005, whereas resources grew by 27% between 2004 and 2005.

From a more general point of view, the fixed running costs of the structure remained stable and now only account for 5% of total costs, against 7% in 2004. This positive situation is due to the will of the association to control its structural cost. However, it seems necessary to adapt, in the coming months, means and human resources to the current size of the association so as to increase its efficiency.

Financial transparency

The annual financial statement of our association has been validated by the statutory auditors’ cabinet Olivier Paris. Detailed accounts, as well as the statutory auditor’s report, are available upon request at our association’s head office.

sent 28 June 2006