Plan Worldwide Annual Review and Combined Financial ...

9b Income
Plan mainly raises funds in Europe, the Americas and the Asia-Pacific region. Income in both 2011 and 2012 was impacted by favourable
exchange rates movements compared to the Euro in most fundraising markets.
57% of Plan’s income is derived from regular giving through child sponsorship, which increased by 3% to €363 million in the year due to
the effects of currency appreciation against the Euro and a small underlying increase. Underlying child sponsorship income increased in some
markets, with particularly strong growth in Canada, Germany, Korea and Norway and also in Hong Kong which commenced operations in
2009. These offset decreases in Netherlands and Sweden. The growth in sponsorship income reflects successful marketing programmes
and is encouraging given the current weak economic environment.
Grants income grew by €14 million to €153 million in the year. 2012 included total income of €7 million from the Global Fund compared
to €26 million in 2011. This income reflects the timing of projects and covers new malaria prevention programmes in Liberia and Senegal,
in addition to the programmes in Togo, Burkina Faso and Cameroon that started in 2011, as well as the continuing HIV prevention and
support project in Benin. The decrease in Global Fund income was more than offset by higher grant income in most geographies, especially
in Netherlands and Sweden (both of which benefited from new framework agreements) and in Australia, Canada, Germany and Colombia.
Gifts in kind totalled €27 million in 2012 compared with €15 million in 2011. Gifts in kind included food aid from the World Food Programme for
Zimbabwe, Rwanda, Niger, Sierra Leone and El Salvador in both 2012 and 2011 and in 2012 also for Cambodia, Pakistan, Philippines and South
Sudan. Gifts in kind also included medicines for various countries, principally El Salvador in 2012 and Pakistan in 2011, and pro bono consultancy
for the business operating model reform programme required to implement the Global Strategy.
Other contributions, including disaster and other appeals, increased by €7 million to €85 million in the year. The growth came from successfully
targeted marketing, especially in Australia, Canada and Sweden, whilst in Japan other contributions have decreased as donors reprioritise their
support following the tsunami in 2011. Investment income remained at almost €3 million, as higher interest income offset lower gains on sales
of investments. Trading income of €3 million was less than 2011.
9c Expenditure
Total Plan Worldwide expenditure before foreign exchange gains and losses increased by €90 million compared to 2011, to €634 million.
Total programme expenditure was €488 million in the year to 30 June 2012, which was an increase of €70 million or 17% over 2011.
This represents all costs directly related to delivering programmes including field staff and associated office and equipment spend, the cost
of facilitating communications between sponsored children and sponsors and activities to raise awareness of development issues.
The regional profile of expenditure in 2012 is relatively unchanged compared to 2011. Africa continues to be the region accounting for most
expenditure, representing 34% of total expenditure excluding net gains on foreign exchange, compared to 31% in 2011. Expenditure in Asia
represented 22% of total expenditure in 2012 compared to 24% in 2011. Central and South America accounted for 15% of total expenditure
excluding net gains on foreign exchange, compared to 19% the previous year, as expenditure in Haiti reduced following the earthquake in 2010.
The balance was in Europe and North America.
Programme expenditure in Africa of €216 million represents 44% of total programme expenditure. Expenditure in Asia was €109 million or
22% of programme expenditure and a further 19% of expenditure or €92 million was applied to programmes in Central and South America.
Field programme expenditure also includes Interact worldwide expenditure which accounted for €4 million spend in 2012 and €3 million in 2011.
The remaining €67 million of programme expenditure is in Plan donor countries and the International Headquarters.
Expenditure is categorised into the distinct areas in which Plan works in accordance with Plan’s programme framework as implemented in 2010.
Expenditure on a Healthy start in life, which covers support to primary health care programmes, pre school infrastructure and the Universal Birth
Registration campaign, increased by 37% compared to the prior year. This is the programme area with the highest expenditure at €97 million
in 2012 or 20% of total programme expenditure. Half of the increase was due to the timing of malaria prevention activities that were funded
by grants from The Global Fund in Burkina Faso, Cameroon, Liberia, Senegal and Togo. Expenditure in 2012 in Togo included the distribution
of malaria nets that were received in 2011 but their distribution was delayed pending availability of all nets for other Global Fund partners.
Expenditure increased in Sierra Leone for food aid targeted at programmes for school and under five’s feeding and in Bolivia, El Salvador,
Kenya and Tanzania due to wider coverage by Plan.
Plan International Worldwide Combined Financial Statements for the year ended 30 June 2012
7