Annual report 2009 - Handicap International

xz Financial reportxz Financial transparencyFor Handicap International financial transparency is amanagement principle, and it aims to be able to account forthe use of the funds entrusted to it at all times. In addition toits own internal control procedures, the Association submitsitself to several types of checks.Statutory auditThe annual financial statements, drawn up to 31 st December2009, are audited and certified by the Association’s auditors,Ernst & Young Audit. They were prepared according togenerally accepted French accounting principles andmethods, in accordance with the French accountingsystem applicable to associations and foundations, andin accordance with the new regulations on the “compted’emploi des ressources” (CER) [Statement of utilisation offunds].“Le Comité de la charte” charity supervisorybodySince 1998 Handicap International has been a member ofthe “Comité de la Charte”, a supervisory and accreditationbody. The Association voluntarily submits itself to oversightof principles of good governance, scrupulous management,irreproachable public relations and public fundraisingactivities, as well as financial transparency towards donors.The logo “Don en confiance” or “Giving with confidence”,which appears on the Association’s main public relationsmaterials, informs donors that accreditation has beenreceived from this body and that its principles have beenadhered to.Cour des Comptes [French Court of Audit]Because Handicap International is recognised as beinga public interest body by the government, appeals to thepublic for funds and issues tax deduction certificates, thisgovernmental body can audit the Association at any time.The Cour des Comptes also carries out ad hoc checks onthe utilisation of funds raised.Inclusion of the CER statement in to the annualfinancial statementsThe decree of 11 December 2008 laid down newaccounting regulations on the preparation of the CERstatement, effective from the 2009 financial year. Thecombined financial statements for 2009 have thereforebeen prepared to comply with these regulations. Forcomparative purposes, the 2008 financial statementshave been restated in line with this new standard. Thisrestatement has been verified by the Association’sauditors.Did you know?The annual financial statements, the notes to the accounts,and the statutory auditor’s report can be consulted uponrequest to the Association’s head office. These documentsare also available on the www.handicap-international.frwebsite.xz How the CER (statement ofutilisation of funds) is prepared– The total for each line item includes the direct costs, theremuneration of the employees responsible for carrying outthe activity, and a fraction of overhead costs proportionalto head office employee full-time equivalents.– The expatriate labour cost total is allocated directly to thesocial missions, on the basis of the time actually spent inthe field.– Steering costs and the costs of the support services neededto run the social missions (programmes management,technical advisers, logistical and purchasing supportservices, personnel administration, and accounting andinternal audit services) are categorised under this lineitem, as in 2008.– The costs incurred in development education form part ofthe Association’s social mission and are categorised in theappropriate line item. This is the case with costs allocatedto the International Campaign to Ban Landmines andCluster Munitions, and for costs relative to raising publicawareness on the inclusion of people with disabilities.– The costs of information for the general public, such asthe website, are included in the line item “Administrativeexpenses”.– Exceptional costs are included under the operations towhich they relate. Financial support given to other sectionsof the international network is allocated over various lineitems according to the type of expense being funded.– Funds raised for a specific purpose but not utilised in thefinancial year are shown before arriving at the surplus ordeficit.– The proportion of the contribution from institutional donorstoward funding head office costs is allocated to theheading “Administrative expenses”.– Charges to and write-backs from provisions are shownafter the totals for uses or sources of funds, as requiredby the new legislation.– The total valuations of donations in kind received byHandicap International in 2009 are shown at the bottomof the CER.– The proportion of reserves deriving from funds raised fromthe general public has been calculated in accordance withthe new directives of 1 st January 2008.20 ı Annual report 2009