Plan Worldwide Annual Review and Combined Financial ...

Expenditure on sexual and reproductive health covers costs related to family planning, HIV/AIDS and sex education. This expenditure represents
3%, or €15 million of total programme expenditure. It is higher than 2011 as the HIV prevention and support programme ramped up in Benin
and there were smaller increases in many other countries. Conversely expenditure decreased in Kenya due to the government taking over
through community health workers.
Education accounted for 16% or €79 million in 2012, compared to €81 million in 2011. Education programme costs comprise costs related
to teacher training, school infrastructure improvements and advocacy for education policy improvements including the Learn Without Fear
campaign. Expenditure in Burkina Faso declined as the Bright grant comes towards its end, but this was offset by grant funded projects,
including school construction, in Cameroon, Guinea, Mali, Pakistan and Zimbabwe.
Water and sanitation expenditure of €47 million, increased by 6% compared to 2011, primarily due to higher spending in Burkina Faso for
family latrines and boreholes and in Pakistan in flood affected areas. Conversely expenditure in Ethiopia, Guatemala and Vietnam is lower
due to a greater focus on prevention and education rather than construction and rehabilitation of water systems. This programme area,
representing 10% of total programme expenditure, covers community infrastructure such as water systems, latrines and housing including
assisting communities with achieving provision from local authorities.
Economic security which covers costs relating to microfinance and natural resource management, fell by 2% over 2011 and represents
€39 million or 8% of programme expenditure. Grant funded projects finished in Pakistan and Zambia, whilst expenditure increased in
Cambodia due to targeting more communes and beneficiaries. Otherwise there were no significant country movements from the previous year.
Programmes to protect children from exploitation, neglect, abuse and violence represent €28 million or 6% of total programme costs.
These costs increased by €12 million compared to 2011 with new grant funded programmes commencing in Bangladesh, Haiti, Malawi
and Sudan plus smaller increases across most countries. Expenditure in this programme area relates to training of children and human
rights and capacity building at local and national level.
Spending on participation programmes amounted to €71 million, an increase of 26%. Participation programmes include development
education work through child media, life skills training and the ‘Because I am a Girl’ (BIAAG) campaign, which aims to fight gender inequality
and promote girls’ rights. There were new grant funded programmes in Bangladesh, Malawi, Vietnam and Zambia and in Honduras an
increased focus on socio-political awareness and participation. Additionally, there was increased expenditure on the BIAAG campaign
ahead of the global launch on 11 October 2012, coinciding with the first UN International Day of the Girl-Child.
Expenditure relating to disaster risk management includes costs related to disaster risk reduction and relief activities ranging from food
and medicine distribution to child psychosocial support and protection. These costs were €60 million compared with €46 million in 2011.
Higher costs relating to the food crises and drought in the Sahel and the Horn of Africa were incurred in South Sudan, Ethiopia and Kenya
and for typhoon responses in El Salvador and Philippines. These were offset by reduced expenditure in Niger and Zimbabwe and in Haiti,
as programmes there moved from immediate disaster response to longer term recovery.
Sponsorship communications comprises costs associated with communication between sponsors and sponsored children. These costs have
increased by 1% globally to €52 million.
Fundraising costs increased by 23% compared to the previous year, to €91 million. These costs increased in most NOs, with significant growth
in Australia, UK and USA due to a range of investments in building fundraising capacity and additionally investment in the UK to raise general
awareness of the Plan brand. Also, in Germany there was a one off payment of €6 million as described in note 13 to the financial statements.
Other operating costs of €53 million represent an increase of €3 million over the previous year, with higher costs in most NOs. Trading
activities remain a minor activity, representing less than 1% of income and expenditure in both years.
Gains on foreign exchange of €11 million in 2012 and losses of €17 million in 2011 represent the revaluation of non-Euro balances and primarily
reflect the movements of the Euro relative to the USD in each year.
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