Annual report 2009 - Handicap International

Development Department operation. Mines Departmenthas therefore seen its budget reduced, especially since nosignificant new programmes were opened during 2009.Emergency Response Department’s budget rose slightly,however, in line with new operations in Pakistan and thePalestinian territories.These programmes bore exceptional expenses of US$2.12million, including US$1 million in the exchange lossesbecause of market instability and US$0.7 million arising onproject close downs.Better funding cover by institutional donorsPublic and private institutional funding increased by US$4.8million overall, a greater increase than that of expenditure,resulting in better financial coverage for missions. Thework done in 2009 to develop new international fundingmechanisms bore fruit: United Nations grants more thandoubled between 2008 in 2009 (up 125%). These weremainly for the food security programme in Haiti (US$1.7million), humanitarian aid in the Democratic Republic ofCongo (US$1.5 million) and the development programme inthe Lebanon (US$1.2 million).European co-financing was down overall, but thecontribution from the European Community HumanitarianOffice (ECHO) stayed much the same in 2009, at US$5.0million. The decrease in other private funds (down f2 million)is explained mainly by the decrease in post-emergencywork in Indonesia, Sri Lanka and Bangladesh.Donations from the public: reduction in costsand stabilisation of receiptsPublic fundraising expenses decreased sharply in 2009,the Association’s objective being to return to a position offinancial balance. The budget for finding new donors wasreduced in favour of trying to reactivate former donors, andstreet operations for seeking new regular donors ceasedfollowing the fall in return from this type of fundraising in2008. These savings taken as a whole (US$2.8 million)resulted in a better rate of cover: for each US$1.00 spent,US$4.80 was raised compared to US$3.80 in 2008.The initiative to achieve greater stability of funding by useof Solidarity Sponsorship and regular donations by directdebit continued: the proportion of funding received from thistype of commitment came to 46% in 2009, against 44% in2008. Bequests received increased significantly rising fromUS$0.84 million in 2008 to US$1.45 million in 2009.Funding from co-branding products also increased slightlyin 2009. Plio kits fetched US$1.53 per unit sold for theAssociation (against US$1.51 in 2008), and the Christmastree bag fetched US$2.49 (against US$2.47), giving anaverage of US$2.05 (against US$2.00)Finally, total funding from corporate sponsorship was alsoup in 2009, in spite of the drop in interest rates which hadadversely impacted “shared” type financial investments setup mainly by the Credit Coopératif (down US$72 thousand).However, in 2009 the economic crisis made it more difficultto find new partners.Provisions for risksProvisions of US$1.1 million were raised during the 2009financial year, with US$0.72 million being for programmeoperations. They were particularly to provide for new taxesin field countries, and to provide for litigation with theinsurance company that insured the “mines” accident thatoccurred in Albania in 2004.Finally, the exceptional expenses incurred in restructuringin the first half of 2009 were covered by provisions raisedin 2008. As a result, they had no impact on the surplus forthe year.(in million US$) Rate 1.4406Origin of funds 2009 2008Subsides and other public aid 44.3 37.4Collected private income 60.7 62.8Resources raised from the public 52.7 52.6Donations, solidarity sponsorship, legaciesDonations foreign countriesRevenues from sales and other productsOther income from general public47.53.02.10.147.32.92.30.1Other private income 8.1 10.1Financing from private organisationsSponsoringOther private income5.91.30.88.01.11.0Other income 1.4 2.1Subtotal of resources 106.4 102.2Commercial activitiesWrite-back of provisions(after deducting write-backs fromprovisions of a similar type)Allocated funds carried forward from theprevious financial year3.61.20.83.71.20.7Total income,before contribution in kind112.0 107.9Annual report 2009 ı 25