The Lutheran World Federation Department for World Service Geneva

Independent auditor’s report to the Communion Office Leadership Team on the financial statements 2018

Independent auditor’s report to the Communion Office Leadership Team of The Lutheran World Federation Department for World Service Geneva

Opinion On your instructions, we have audited the financial statements of The Lutheran World Federation Department for World Service, which comprise the balance sheet, income and expenditure statements and notes, for the year ended 31 December 2018.

In our opinion, the accompanying financial statements are prepared, in all material respects, in accordance with the accounting principles followed by The Lutheran World Federation and in accordance with Note 1 of the financial statements.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and Swiss Auditing Standards. Our responsibilities under those provisions and standards are further described in the “Auditor’s responsibilities for the audit of the financial statements” section of our report. We are independent of the entity in accordance with the requirements of the Swiss audit profession and the IESBA Code of Ethics for Professional Accountants, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter We draw attention to the notes to the financial statements, which describes the basis of accounting. The financial statements are prepared in relation to the accounting principles of the Lutheran World Federation. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for The Lutheran World Federation Department for World Service for use in connection with the purpose as described in the preceding paragraph. Our report should not be distributed to or used by parties other than The Lutheran World Federation Department for World Service or used for any other purpose. We do not, in giving our opinion, accept or assume responsibility or liability for any other purpose or to any other parties to whom our report is shown or into whose hands it may come. Our opinion is not modified in respect of this matter.

Responsibilities of Management and the Federation Board for the financial statements Management is responsible for the preparation of the financial statements in accordance with the accounting principles followed by The Lutheran World Federation, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

In preparing the financial statements, Management is responsible for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. The Federation Board is responsible for overseeing the entity’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and Swiss Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs and Swiss Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.  Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern.  Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with the Federation Board or its relevant committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

PricewaterhouseCoopers SA

Marc Secretan Charlotte Tavernier Audit expert Audit expert

Geneva, 21 May 2019

Enclosure:

 Financial statements (balance sheet, income and expenditure statement and notes)

THE LUTHERAN WORLD FEDERATION Department for World Service

BALANCE SHEET AS AT 31 DECEMBER (EUR)

Note 2018 2018 Unrestricted Restricted Total 2018 Total 2017

Assets

Total assets less liabilities 3.1 52,507,028 11,460,598 63,967,626 56,797,379 Programs/project balances receivable 3.2 0 9,760,602 9,760,602 11,287,200

Total net Assets 52,507,028 21,221,200 73,728,228 68,084,579

Liabilities and Reserves

Current Liabilities Unexpended balances on programs/projects 3.2 0 13,276,136 13,276,136 12,254,353 Current accounts - former world service programs 2.11 0 614,876 614,876 143,374 Total Current Liabilities 0 13,891,012 13,891,012 12,397,727

Long Term Liabilities Field staff provisions 2.12 0 7,283,549 7,283,549 7,028,682 Provision for staff - assignment,leave and termination 2.12 266,554 0 266,554 293,771 Global emergency revolving fund 0 46,639 46,639 46,639 Total Long Term Liabilities 266,554 7,330,188 7,596,742 7,369,092

Total Liabilities 266,554 21,221,200 21,487,754 19,766,819

Reserves General Reserve 2.13 6,137,522 0 6,137,522 5,991,346 Institutional Capacity Development Reserve 2.13 585,000 0 585,000 585,000 Resettlement Administration 2.13 640,400 0 640,400 640,400 Field designated reserves 2.13 44,877,552 0 44,877,552 41,101,014 Total Reserves 52,240,474 0 52,240,474 48,317,760

Total Liabilities and Reserves 52,507,028 21,221,200 73,728,228 68,084,579

1 THE LUTHERAN WORLD FEDERATION Department for World Service

INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 DECEMBER (EUR)

Unrestricted Restricted Restricted Global Projects Field Projects Total 2018 Total 2017 Operating Income Member churches and related agencies 2,195,703 682,679 34,699,454 37,577,836 46,338,377 Other Partners - 77,606 90,049,280 90,126,886 96,543,404 Net AVH/VTC operating results 2,258,916 - - 2,258,916 2,959,216 Administration fees 2,119,270 309,737 - 2,429,007 1,892,784 Non-project income 5,475,798 - - 5,475,798 5,953,766 Non-implementation projects - - 1,501,214 1,501,214 1,607,009 Total Operating Income 12,049,687 1,070,022 126,249,948 139,369,657 155,294,557

Operating Expenditure Staff related costs 2,953,034 - - 2,953,034 2,860,556 Travel and representation 193,912 - - 193,912 164,484 Other operating expenses 343,511 - - 343,511 308,000 Project expenses - 1,070,022 124,748,734 125,818,756 140,778,156 Non-implementation projects - - 1,501,214 1,501,214 1,607,009 Non-project expenses 3,958,173 - - 3,958,173 4,797,070 Committee for World Service 14,018 - - 14,018 16,971 Central services allocation 895,352 - - 895,352 810,682 Consulting 23,884 - - 23,884 20,407 Audit and other professional fees 34,805 - - 34,805 40,853 Interpreting and translating - - - - 58 Total Operating Expenditure before recharge 8,416,689 1,070,022 126,249,948 135,736,659 151,404,248

Activity based charges to CPs (175,871) - - (175,871) (195,400) Central Services Fee to CPs (256,372) - - (256,372) (280,006) Activity and Expenses charged to Projects (23,584) - - (23,584) (106,815)

Operating Result Surplus / (Deficit) 4,088,825 - - 4,088,825 4,472,530

Financial (Expenses) / Income Net exchange gains (losses) 37,019 - - 37,019 (598,130) Net gains/(losses) on Shares (121,297) - - (121,297) 396,379 Interest Income 28,380 - - 28,380 39,694 (55,898) - - (55,898) (162,057)

Bank charges 23,404 - - 23,404 15,484

Net Financial Result (79,302) - - (79,302) (177,540)

Extraordinary (Expenses) / Income Project Income Mozambique 67,731 - - 67,731 128,321 Project expenditures Central Africa Republic - - - - (31,799) Project expenditures DR Congo - - - - (7,493) Program Monitoring (PMER) expenses (154,540) - - (154,540) -

Comprehensive result for the year 3,922,714 - - 3,922,714 4,384,019

2 THE LUTHERAN WORLD FEDERATION Department for World Service

STATEMENT OF RESERVE MOVEMENT AS AT 31 December (EUR)

Balance as at Transfers Receipts Disbursements Net AVH/VTC Balance as at 1st January between Operating 31st December 2018 reserves results 2018

General Reserve "A" 5,991,346 0 146,176 0 0 6,137,522 Institutional Capacity Development 585,000 0 0 0 0 585,000 Resettlement Adminitstration 640,400 0 0 0 0 640,400 Field Designated Reserves * 41,101,014 0 5,632,419 (4,114,795) 2,258,914 44,877,552 48,317,760 0 5,778,595 (4,114,795) 2,258,914 52,240,474

* Refer to Appendix 6 for the summary of movement of field designated reserves.

3 THE LUTHERAN WORLD FEDERATION Department for World Service

ADMINISTRATION, COORDINATION, IMPLEMENTATION STATEMENT OF RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED 31 DECEMBER (EUR)

2018 2017

Operating Income Related Organizations and Member Churches 2,195,703 2,114,527 Administration fees and other income 2,119,270 1,881,882

Total Operating Income 4,314,973 3,996,409

Operating Expenditure Staff related costs 2,953,034 2,860,556 Travel 193,912 164,484 Other operating expenses 343,511 308,000 Committee for World Service 14,018 16,971 Central services allocation 895,352 810,682 Consulting 23,884 20,407 Audit and other professional fees 34,805 40,853 Interpreting and translating 0 59 Total Operating Expenditure before recharge 4,458,516 4,222,012

Charge out to Country Programs (432,243) (475,406) Charge out to Projects (23,584) (106,815)

Operating Result Surplus / (Deficit) 312,284 356,618

Financial (Expenses) / Income Net exchange gains/(losses) 37,019 (598,130) Net gains/(losses) on investments (121,297) 396,379 Interest Income 28,380 39,694 (55,898) (162,057)

Bank Charges 23,401 15,484

Net financial result (79,299) (177,540)

Extraordinary (Expenses) / Income Project Income Mozambique 67,731 128,321 Project expenditures Central Africa Republic 0 (31,799) Project expenditures DR Congo 0 (7,493) Program Monitoring (PMER) expenses (154,540) 0

Comprehensive result for the year 146,176 268,107

4 THE LUTHERAN WORLD FEDERATION DEPARTMENT FOR WORLD SERVICE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018

NOTE 1 - ACTIVITIES

The Lutheran World Federation (LWF) is a global communion of Christian churches in the Lutheran tradition, founded in 1947. World Service (WS) is the internationally recognized humanitarian and development agency of the LWF. The LWF Communion Office is located in the Ecumenical Centre in Geneva and DWS operates in four regional hubs, three emergency programs and 16 countries programs.

The LWF is a non-profit association incorporated and registered under Article 60 of the Swiss Civil Code.

The DWS's purpose is to work with marginalized and disadvantaged communities in areas of greatest vulnerability and endemic need, responding to emergencies and strengthening local capacities for disaster preparedness, advocacy and sustainable development, irrespective of race, religion, sex, nationality or political conviction.

The Assembly, composed of representatives of the member churches of the LWF, is the principal authority of the LWF. The Assembly is normally held every seven years and is responsible for the Constitution, electing the President and the members of the Council, and giving general direction to the work of the Federation.

The Council is composed of the President, the Chairperson of the Finance Committee, and 48 persons elected by the Assembly. The term of office of the Council shall end at the close of the next ordinary Assembly. The Council is responsible for the business of the LWF in the interim between ordinary Assemblies. The Council elects the Secretary General and the Treasurer. The Council elects the Vice-Presidents, decides on the budgets of the LWF, and receives the audited accounts and approves them. The Council also elects from among its members an Executive Committee and Program Committees as required and appoints their chairpersons.

The Council has appointed a Committee for World Service which is responsible and reports to the Council.

The financial statements of the WS for the year ended 31 December 2018 are consolidated to include the department as part of the Geneva Communion and the field offices. Former WS country programs are not included in the consolidation as each of these has its own legal status separate from that of the LWF and the LWF exercises no control over them. These statements should be read in conjunction with the LWF Group financial statements.

The consolidated financial statements were examined and endorsed for issue by the General Secretary and the Communion Office Leadership Team (COLT) on May 21, 2019.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

2.1 Statement of compliance

The consolidated financial statements have been prepared in accordance with and comply with the financial regulations and the accounting principles of the LWF.

2.2 Basis of preparation

The consolidated financial statements are presented in Euro.

The consolidated financial statements have been prepared under the historical cost convention.

Preparation of the consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results ultimately may differ from those estimates and the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change.

2.3 Basis of consolidation

The financial statements of the WS are consolidated to include the department located in the Geneva communion office and the field offices. Significant intercompany balances between the Geneva communion office and the field offices have been eliminated in consolidation.

5 THE LUTHERAN WORLD FEDERATION DEPARTMENT FOR WORLD SERVICE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018

a) Field Programs The consolidation of the field programs' financial statements with the Geneva operations is based on financial reports, which are subject to individual examination in the countries concerned by independent auditors. The audit in Geneva in respect of these balances is carried out on a test basis upon the documentation and analysis of figures shown in the field office reports, which do not include the underlying substantiating documentation.

b) Former World Service Programs Former World Service programs which have registered as legal entities under local country statutory regulations and are not legally controlled by the LWF have not been consolidated.

2.4 Restricted/unrestricted funds

The financial statements distinguish between Restricted and Unrestricted use funds. Restricted use funds are those funds received from third parties who have imposed restrictions on the purposes for which they may be used. Unrestricted use funds are those funds where there are no externally imposed restrictions and include assets freely available or appropriated to reserves for internally designated purposes.

2.5 Foreign currency transactions

The presentation and functional currency of the LWF is the Euro. The books of account are maintained in Euro. Assets and liabilities, excluding fixed assets, denominated in currencies other than Euro have been translated at the December 31, 2018 rate of exchange per the European Commission "InfoEuro" website using EURO cross-rates.

Income and expenditure has been translated into Euro, monthly using the previous month end exchange rate per the European Commission "InfoEuro" website using EURO cross-rates.

Exchange gains/losses resulting from the application of the accounting principles outlined above are credited/charged to the Statement of Income and Expenditure.

2.6 Revenue and expenditure recognition

a) Operating Income Restricted use funds are normally received as a result of a specific solicitation or with donor imposed restrictions and are recognized as income over the duration of the program/project in proportion to the achievement of the conditions attached to the contributions. Income for the year is therefore equal to expenditure. Contributions received but not yet recognized are included in Current Liabilities. Contributions not yet received relating to expenditure already recognized are included in Current Assets.

In some instances, in-kind contributions are recognized in the financial statements and an equal amount of expenditure is recorded. In 2018 and 2017 respectively, the amount included in revenue and expenditure related to in-kind contributions is €3,962,832 and €640,850. In-kind contributions are recorded at the value noted in the accompanying shipping documents upon receipt.

b) Investment Income Investment income is recognized on an accrual basis. The investment income together with foreign exchange gains and losses and gains and losses on investments is allocated between the various LWF departments according to the opening balance of reserves and net project/other grant balances.

c) Non Project Income Non project income and expenditure are those income and expenses which relate to the change in the reserve funds of the field office. Non project income may consist of, inter alia, the sale of assets, hire of LWF owned vehicles to the project and asset valuation income. Non project expenditure is usually the cost of repairs of LWF owned vehicles, purchase of vehicles from the non project income that has built up and depreciation of LWF owned assets.

d) Non Implementation Projects Compound management and administration income generated by donors' implemented projects.

e) Extraordinary income and expenditures In 2018, DWS Management team decided to invest in PME (Planning, Monitoring and Evaluation).

6 THE LUTHERAN WORLD FEDERATION DEPARTMENT FOR WORLD SERVICE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018

2.7 Inventories

Inventories purchased from Restricted use funds are expensed in the year of purchase. Rights over inventories would not generate future economic benefit to the LWF due to the short term nature of program contracts and the terms of contracts where rights over residual program assets are vested with the grantors.

The only material inventories purchased from Unrestricted use funds are held at the WS program in Jerusalem. These inventories consist of medical supplies for the Augusta Victoria Hospital (AVH) that the program runs. They are accounted for at cost which does not exceed market value and recognized by the first-in, first-out method.

2.8 Fixed assets

Fixed assets purchased from Restricted use funds are expensed in the year of purchase. It is considered improbable that such expenditures will generate future economic benefit to the LWF due to the short term nature of program contracts and the terms of contracts where rights over residual program assets are vested with the grantors.

Fixed assets comprising buildings and land improvements, vehicles and office equipment purchased from Unrestricted use funds are capitalized and amortized as detailed in 2.9. Assets of a capital nature with a cost lower than €5,000 are not capitalized.

When the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognized in the Income and Expenditure Statement.

Repairs and maintenance costs are charged in the Income and Expenditure Statement during the financial period in which they are incurred.

Subsequent expenditure is capitalized only when it increases the probable future economic benefits of the asset. The following net fixed assets are included in the balance sheet in the line 'Total Assets less Liabilities excluding program/project balances'.

Description Cost Depreciation Net Value

Buildings 5,422,415 (1,490,405) 3,932,010 Vehicles 3,698,356 (3,045,433) 652,923 Office Equipment 1,400,154 (844,050) 556,104 Other Equipment 821,208 (665,474) 155,734 11,342,133 (6,045,362) 5,296,771

2.9 Fixed assets - depreciation

Based on the past experience of the useful life expectancy, the rate of depreciation is set by each individual country program not to exceed the following rate per year by category:

Building 4% Plant and equipment 7% Vehicles 20% Office furniture and equipment 20% Computers 25%

Depreciation for a full year commences in the year of purchase.

2.10 Impairment

The carrying amount of the LWF's assets are reviewed at each balance sheet date to determine whether there is any indication of impairment or, if earlier, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is the higher of the asset's net selling price or its value in use. Impairment losses are recognized in the Income and Expenditure Statement.

7 THE LUTHERAN WORLD FEDERATION DEPARTMENT FOR WORLD SERVICE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018

An impairment loss is reversed if there is an upward revision of the recoverable amount. An impairment loss is only reversed to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization, if no impairment loss had been recognized.

2.11 Current accounts - former World Service programs

The former World Service programs in Bangladesh, Cambodia, India, Indonesia, Malawi, Peru, South Africa, Tanzania, Zimbabwe and Swaziland are not consolidated with the LWF/WS Geneva books. The year-end payable to these programs appear in the balance sheet under "Current accounts - former World Service programs" for a net amount of €614,876 as detailed below.

Payable to former World Service programs 166,734 World Service field offices reconciling items 448,142 614,876

2.12 Provisions a) Employee termination/repatriation benefits These benefits (assignment, leave, termination) are recognized proportionately as accrued over the employment period of personnel. They exist to meet any termination and settling out expenses under present contractual LWF working conditions for expatriate field based staff. b) Field staff An amount of €7,283,550 is restricted for field programs' local staff provisions which can only be used as specified.

2.13 Reserves

Unrestricted reserves are earmarked as detailed below: a) General reserve This reserve represents an unrestricted amount and is used to account for all resources over which the department has discretionary control. It can be used to cover ongoing commitments in case of emergencies. b) Field designated funds These various funds are available exclusively for use in each field program according to the definition of the fund. c) Other reserves The Resettlement Administration Reserve is funds where there is no externally imposed restrictions and include assets freely available to DWS for internally designated purposes.

Restricted reserves are earmarked as below: i) Institutional Capacity Development Reserve The institutional Capacity Development Reserve is a fund which is aimed to increase the capacity of Resource Mobilization.

2.14 Employee benefit costs a) Retirement benefit obligations The LWF operates a single pension fund for expatriate field staff and all headquarters staff. b) Termination benefits Termination benefits are payable whenever an employee's employment is terminated before the normal retirement date or contract completion date.Termination benefits are recognized on the basis of a formal committed plan to terminate the employment of current employees as per 2.12.

2.15 Leases

A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership.

The LWF had no leases of a material nature.

8 THE LUTHERAN WORLD FEDERATION DEPARTMENT FOR WORLD SERVICE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018

NOTE 3 - DETAILS RELATING TO THE FINANCIAL STATEMENTS

This section provides a breakdown of the main items on the Balance Sheet, the Income and Expenditure Statement, the Cash Flow Statement and the Statement of Changes in Reserves.

3.1 Details of the total assets less liabilities

2018 2017 2018 2017 Restricted Unrestricted Cash and bank * - - 20,090,838 19,861,146 Other assets 22,211,138 23,874,211 17,324,416 15,848,092 Inventory * - 2,021,665 2,151,299 Interdepartmental account (736,314) (1,296,855) 7,498,148 7,403,434 Other receivables - - 275,190 179,620 Net fixed assets * - - 5,296,771 3,167,940 Accounts payable * (8,502,421) (9,545,169) - - Accrued expenses * (1,511,806) (4,846,339) - - Total assets less liabilities 11,460,598 8,185,848 52,507,028 48,611,531

* Refer to Appendix 2 for the balances of Country Programs as at 31 December 2018.

3.2 Details of the program/projects balances

Receivable - current assets 2018 2017 WS Field Offices - project balances 6,371,391 7,773,893 WS Field Offices - deferred expenditure 3,192,155 3,224,202 WS Geneva - B projects balances 197,057 289,105 9,760,603 11,287,200

Part of the above deferred expenditure (except for €2,581,402 relating to the AVH Jerusalem and €171,546 relating to Chad project overspend) represents the monetary value of outstanding leave days as at December 31. Eligible days were determined in accordance with the national and international staff regulations. This provision is expected to reverse in 2019 when staff take days off.

Payable - current liabilities 2018 2017 WS Field Offices - project balances 13,120,442 12,142,994 WS Geneva - B projects balances 155,694 111,359 13,276,136 12,254,353

Detailed breakdown by donor and by country of these receivables and payables are as below;

Program/Project balances receivable by country for the year ending 31 December 2018

2018 ACT Alliance 28,136 TMC 1,124 Catherines Restaurant 311 Masinde Murilo University(MMUST) 984 World Council of Churches 3,378 Norwegian Refugee Council 4,069 Diakonie Katastrophenhilfe 8,526 Hungarian Interchurch Aid 736 Property Maintenance - Jordan Valley #4 9,429 Property Maintenance - LWF Guest Room #3 + 4 1,432 Evangelical Lutheran Church in Bavaria 11,300 Nederlands Luthers Genootschap voor In- en Uitwendige Zendin 18,210 Other UN Agencies 72,961 Property Maintenance - Jordan Valley #3 2,514 Compound Kiosk 52 Australian Lutheran World Service 39,067 Bread for the World - Protestant Development Service 481,875

9 THE LUTHERAN WORLD FEDERATION DEPARTMENT FOR WORLD SERVICE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018

Bureau of Population, Refugees, and Migration 1,843,050 Canadian Lutheran World Relief 132,364 Canadian Lutheran World Reliel/Canadian Foodgrains Bank 54,856 Christian Aid 12,973 United States Agency for International Development 180,174 Danida 83,208 Church of Sweden 140,772 Dadaab Compound Management 41,716 DanChurchAid 808 Danish Refugee Council 12,553 European Commission - ECHO 378,222 European Commission - Europeaid 381,377 Evangelical Lutheran Church in America 1,807,930 Film Aid International 11,984 Finn Church Aid 25,000 Finnish Evangelical Lutheran Mission 14,909 Food and Agriculture Organization 4,438 Guest House Income - Jerusalem 160 ICCO 29,134 INSO-Compound Management 655 International Organisation for Migration 138,155 Department for International Development(DFID) 77,399 ISRAAID 2,584 Kenya Red Cross society 1,319 Lutheran World Relief 2,431 National Council of Churches in Kenya 6,112 Nazareth Apartment / Guesthouse 751 Norwegian Church Aid 9,747 Norwegian Refugee Council 1,297 Other donors-local 2,868 Other Misc incomes 7,969 Palestinian Medical Relief Society 20,915 Refugee Consortium of Kenya 990 United Methodist Committee on Relief 48,428 United Nations Children's Fund 77,382 UNICEF 2,398 United Nations Development Programme 17,089 United Nations High Commissioner for Refugees 55,042 Windle Trust Kenya 5,648 World Food Programme 249,539 6,568,448 Deferred Expenditure 3,192,155 9,760,603

Program/Project balances payable by country for the year ending 31 December 2018

2018 Anglican Overseas Aid 1,927 Australian Lutheran World Service 259,912 Australian Lutheran World Service/DFAT 89,972 Bread for the World - Protestant Development Service 1,461,471 Bureau of Population, Refugees, and Migration 23,829 Canadian Lutheran World Relief 406,586 Charities and Societies Agency 220,180 Guest House Rent 60,526 Swiss Department of Foreign Affairs - FDFA 10,238 Other UN Agencies 11,420 CordAid 38,390 Juzoor For Health and Social Development 13,842 Christian Aid 100,923 Hungarian Interchurch Aid 195,953 Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) 275,451 Church of Sweden 1,201,036

10 THE LUTHERAN WORLD FEDERATION DEPARTMENT FOR WORLD SERVICE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018

Comic Relief 167,090 LWS Endowment Fund 545 DanChurchAid/ECHO 22,457 Diakonie Katastrophenhilfe 363,596 Disciples of Christ: Week of Compassion 55,136 Enrolment Fees for New Scholastic Year 120,800 European Commission - ECHO 1,102,530 European Commission - Europeaid 734,846 Evangelical Lutheran Church in America 737,153 Evangelical Lutheran Church in Bavaria 79,442 Evangelical Lutheran Church of Finland 480,123 Evangelical Lutheran Church in Wurttemberg 243,869 Evangelischer Entwicklungsdienst (EED/KED) 19,209 Finn Church Aid 67,372 Finnish Evangelical Lutheran Mission 466,838 Guest House Income - Jerusalem 5,643 German National Committee of the Lutheran World Federation 69,325 Icelandic Church Aid 168,299 International Organisation for Migration 1,947 Islamic Development Bank 142,051 Bread for the World - Development Services 8,181 Other donors-local 14,710 Lutheran World Relief 5,480 Ministry of Education - Jerusalem 558,980 Norwegian Church Aid 249,770 Norwegian Representative Office 866,574 Other Donors (International) 193,640 Other Income - Jerusalem 207,973 Primate's Relief and Development Fund 129,087 Productivity Inc. 11,035 TMCO Inc. 13,096 United Church of Canada 7,639 United Nations - OCHA 288,119 United Nations Children's Fund 436,640 United Nations Development Programme 169,410 United Nations High Commissioner for Refugees 612,958 United States Agency for International Development 15,278 Norwegian Church Aid 24,750 VTP Graduates Loan Payment 9,681 Web Donors 1,309 Welfare Association 29,796 Wider Church Ministries 2,107 13,276,136

3.3 Augusta Victoria Hospital (AVH)

Cumulative expenditures in excess of project funding received for the repositioning exercise of the Augusta Victoria Hospital (AVH), Jerusalem, are €2.5 million through the end of 2018 (€2.6 million at the end of 2017). These excess expenditures are included in "Programs/project balances receivable" in the balance sheet of World Service as at December 31, 2018.

Annual net income from the Augusta Victoria Hospital property rental in excess of €124,000 is projected each year. These funds will be set against the accumulated excess of expenditure over funding.

3.4 Contingent Liabilities a) Medical Malpractice claims - Jerusalem Program:

The Hospital purchases professional and general liability insurance policies to cover medical malpracitc claims. In 2018, the limit of coverage amounted to $2,500,000 equivalent to €2,182,644 for each single claim. According to the estimates by the insurers concerning these claims, the maximum liability of the Hospital in the medical malpractice claims outstanding at December 31, 2018, in the form of the excess (deductible) amounts the Hospital is required to settle in accordance with the terms of the insurance policies was €314,508.

11 THE LUTHERAN WORLD FEDERATION DEPARTMENT FOR WORLD SERVICE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018

3.5 Taxes

The LWF is exempt from Federal and Cantonal income taxes.

3.6 Financial risk management

The LWF is exposed to a variety of financial risks namely: market; credit risk; liquidity risk and interest rate risk. The LWF seeks to actively minimize potential adverse effects arising from this exposure as detailed below.

a) Market risk Foreign currency risk arises primarily from contributions that are denominated in a currency other than Euro. The main currencies giving rise to this risk are the US dollars and Swedish Kroner. The LWF ensures that net exposure is kept to an acceptable level, by selling foreign currencies at spot rates where necessary to address short-term needs.

b) Credit risk The major risk in 2018 was in LWF Jerusalem with €37,527,524 of amounts receivable, the most significant being from the Palestinian Authority (PA) (€29,040,205) in relation to provision of medical services and treatment to Palestinians through the Augusta Victoria Hospital (AVH).

To prevent the financial loss, the Lutheran World Federation (LWF) and the AVH, together with the LWF member churches and related agencies have continued the lobby and advocacy work to counter delays of payments from the Palestinian Authority, Ministry of health.

c) Liquidity risk Liquidity risk is minimized by maintaining sufficient funds as cash on hand, on-demand deposits or short-term deposits with maturities of three months or less to meet short-term liabilities. In addition, investments are all in liquid securities which can easily be sold to meet longer term cash flow needs.

d) Interest rate risk There is no significant short-term exposure to changes in interest rates as cash and cash equivalents are held as cash on hand, on-demand deposits, or in short-term deposits with maturities of three months or less.

3.7 Related parties

a) Identity of related parties The field programs that are former World Service programs are considered to be related parties with LWF-DWS. They are RDRS Bangladesh, LWD Cambodia, LWS India Trust, Indonesia, ELDS Malawi, Diaconia Peru, ELCSA South Africa, TCRS Tanzania, LDS Zimbabwe and Swaziland.

b) Transactions with related parties During the year the LWF received €108,004 on behalf of the former World Service programs for projects and €12,954 as reimbursement of expenses paid on behalf of others. The LWF paid €20,208 expenses for the former World Service programs and transferred €40,825 to the former World Service programs during 2018. At 31 December 2018, the LWF had outstanding payables to former World Service programs of €166,734.

Other than compensation arising in the ordinary course of business, there were no transactions with key management personnel or Council Members. No persons related or connected by business to them, have received any remuneration or other compensation from the LWF during the year.

3.8 Capital commitments There were no capital expenditure commitments at 31 December 2018.

12

The Lutheran World Federation Department for World Service Geneva

Additional Information

The additional information presented in the following pages, which has been taken from accounting and other records of the Lutheran World Federation, Department for World Service, Geneva, has been subjected to testing procedures applied in our audit of the Department for World Service’s financial statements for the year ended 31 December 2018.

Although this information is not necessary for the fair presentation of the financial statements, it is included in order to assist the readers in their interpretation and better comprehension of these financial statements.

PricewaterhouseCoopers SA

Marc Secretan Charlotte Tavernier Audit expert Audit expert

Geneva, 21 May 2019

PricewaterhouseCoopers SA, avenue Giuseppe-Motta 50, case postale, CH-1211 Genève 2, Switzerland Téléphone: +41 58 792 91 00, Téléfax: +41 58 792 91 10, www.pwc.ch

PricewaterhouseCoopers SA is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity. THE LUTHERAN WORLD FEDERATION Appendix 1 Department for World Service

INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2018 2018 2018 2017 Budget Actual Actual Actual CHF CHF EUR EUR

Operating Income

Related Agencies Australian Lutheran World Service 49,225 51,724 45,488 46,900 Canadian Lutheran World Relief 116,786 112,756 97,938 101,310 DanChurchAid 225,267 234,139 205,638 208,060 Finn Church Aid 305,200 321,094 280,000 280,000 Bread for the World - Protestant Development Service 673,075 736,680 641,500 617,500 Nederlands Luthers Genootschap voor In- en Uitwendige Zendin 0 0 0 38,500 Norwegian Church Aid 59,759 30,003 26,143 53,896 Church of Sweden 370,276 380,909 327,833 332,625 Lutheran World Relief 0 79,136 68,480 68,058 Evangelical Lutheran Church in America 425,100 525,256 461,817 367,677 Evangelical Lutheran Church in Wurtemberg 0 47,048 40,865 0 2,224,688 2,518,744 2,195,703 2,114,527 Other Receipts Administration Fees 2,524,268 2,666,572 2,429,008 1,881,882 Administration Fees - transfer to project 4601 0 (273,523) (309,737) 0 2,524,268 2,393,049 2,119,270 1,881,882

Total Operating Income 4,748,956 4,911,792 4,314,973 3,996,409

Operating Expenditure

Director's Office Staff related expenses 330,953 338,784 293,121 303,696 Travel expenses 15,750 16,697 14,329 16,960 Office and computer rental 41,208 40,235 34,752 34,666 Other 23,000 45,418 39,360 34,209 410,911 441,135 381,561 389,531

Finance Coordination Staff related expenses 440,308 519,173 450,358 394,173 Travel expenses 13,300 35,819 30,936 18,622 Office and computer rental 47,844 40,445 34,953 31,653 Other 5,200 6,580 5,722 5,742 506,652 602,017 521,969 450,190

Finance Hub, Uganda Staff related expenses 234,201 154,395 133,648 140,344 Travel expenses 6,700 4,484 3,851 75 Office and computer rental 18,624 5,837 5,020 5,209 Other 0 127 112 1,445 259,525 164,843 142,631 147,072

PMER Coordination Staff related expenses 294,048 284,736 246,686 266,609 Travel expenses 12,200 24,151 20,962 21,088 Office and computer rental 41,208 30,783 26,546 26,473 Other 4,600 7,517 6,470 5,375 352,056 347,187 300,663 319,545

Risk Assurance / Accountability Coordinator Staff related expenses 34,880 32,174 28,412 0 Travel expenses 4,100 1,439 1,267 0 Office and computer rental 3,104 3,932 3,435 0 Other 1,500 10 9 0 43,584 37,555 33,122 0

13 THE LUTHERAN WORLD FEDERATION Appendix 1 Department for World Service

INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2018 2018 2018 2017 Budget Actual Actual Actual CHF CHF EUR EUR Programme Coordination Staff related expenses 333,810 311,953 270,394 265,552 Travel expenses 16,500 18,201 15,639 7,547 Office and computer rental 41,208 26,011 22,452 24,697 Other 5,700 7,402 6,353 4,187 397,218 363,567 314,838 301,983

Humanitarian and Emergency Programs Staff related expenses 166,316 170,959 147,971 149,290 Travel expenses 9,700 10,540 9,114 8,984 Office and computer rental 15,948 12,473 10,763 11,206 Other 4,100 4,856 4,202 4,553 196,064 198,827 172,051 174,033

Angola, Burundi, Mauritania & Livelihoods Staff related expenses 143,696 179,631 155,490 159,032 Travel expenses 16,700 11,195 9,680 18,053 Office and computer rental 15,948 12,473 10,763 11,206 Other 4,800 3,259 2,815 2,777 181,144 206,558 178,749 191,068

Cameroon Staff related expenses 40,946 60,898 53,333 0 Travel expenses 10,700 9,246 8,105 0 Office and computer rental 12,068 9,273 8,032 0 Other 4,700 1,409 1,235 0 68,414 80,826 70,705 0

Central America, Colombia, Haïti & RBA Staff related expenses 170,031 202,030 175,034 159,429 Travel expenses 13,700 16,838 14,490 17,260 Office and computer rental 15,948 12,473 10,763 11,685 Other 4,800 1,441 1,246 1,776 204,479 232,782 201,533 190,149

Chad, DR Congo, CAR & Security Staff related expenses 173,949 184,042 159,265 161,386 Travel expenses 9,700 14,168 12,168 10,346 Office and computer rental 15,948 12,473 10,763 11,206 Other 4,100 2,883 2,499 2,359 203,697 213,566 184,695 185,297

Ethiopia, South Sudan, Uganda & Child Protection Staff related expenses 170,410 174,944 151,430 155,294 Travel expenses 10,700 13,195 11,442 13,755 Office and computer rental 15,948 12,473 10,763 11,206 Other 4,300 2,667 2,312 1,669 201,358 203,279 175,947 181,925

Jerusalem, Northern Iraq, Jordan & Gender Justice Staff related expenses 175,484 181,103 156,800 158,537 Travel expenses 8,700 12,757 11,046 9,655 Office and computer rental 15,948 12,473 10,763 11,206 Other 3,700 2,186 1,899 3,926 203,832 208,519 180,508 183,325

Kenya, Myanmar, Nepal & CHS Staff related expenses 164,207 168,857 146,158 131,895 Travel expenses 10,700 17,537 15,283 11,352 Office and computer rental 15,948 12,473 10,763 8,220 Other 4,100 3,815 3,300 3,349 194,955 202,682 175,505 154,815

14 THE LUTHERAN WORLD FEDERATION Appendix 1 Department for World Service

INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2018 2018 2018 2017 Budget Actual Actual Actual CHF CHF EUR EUR Global Grants Coordination Staff related expenses 168,620 178,757 154,819 152,767 Travel expenses 7,200 13,313 11,600 5,266 Office and computer rental 15,948 12,473 10,763 11,206 Other 4,100 3,045 2,644 4,924 195,868 207,588 179,826 174,163

Global Funding Staff related expenses 238,500 243,791 211,121 93,019 Travel expenses 8,200 4,314 3,791 1,115 Office and computer rental 25,260 18,310 15,783 5,862 Other 1,100 469 408 1,646 273,060 266,883 231,104 101,642

DWS Documentation and Archiving Staff related expenses 21,000 21,033 18,194 45,361 Travel expenses 0 246 209 227 Office and computer rental 1,862 1,167 1,004 1,437 Other 0 20 17 19 22,862 22,467 19,424 47,045 Communications Staff related expenses 76,300 911 800 124,170 Travel expenses 0 0 0 4,180 Office and computer rental 0 0 0 11,206 Other 0 28,179 24,827 1,699 76,300 29,091 25,627 141,256

Global Expenses Committee for World Service 30,000 16,067 14,018 16,971 Central services allocation 1,002,800 1,034,541 895,352 810,682 Consulting 123,110 27,588 23,884 20,407 Membership fees 6,000 0 0 0 Audit and other professional fees 48,000 40,278 34,805 40,853 Interpreting and translating 25,000 0 0 58 1,234,910 1,118,472 968,059 888,972

Total operating expenditure before recharge 5,226,889 5,147,844 4,458,516 4,222,012

Activity based charges to CPs (285,173) (200,530) (175,871) (195,400) Central Services Fee to CPs (218,000) (296,100) (256,372) (280,006) Activity and Expenses charges to Projects 0 (26,918) (23,584) (106,815)

Operating Result Surplus / (Deficit) 25,240 287,496 312,284 356,618

Financial (Expenses) / Income Net exchange gains (losses) 0 41,894 37,019 (598,130) Net gains/(losses) on Shares 0 (140,816) (121,297) 396,379 Interest Income 0 32,137 28,380 39,694 0 (66,785) (55,899) (162,056)

Bank Charges 25,240 26,640 23,401 15,484

Net financial result (25,240) (93,425) (79,299) (177,540)

Extraordinary (Expenses) / Income Project Income Mozambique 0 76,699 67,731 128,321 Project expenditures Central Africa Republic 0 0 0 (31,799) Project expenditures DR Congo 0 0 0 (7,493) Program Monitoring (PMER) expenses 0 (175,002) (154,540) 0

Comprehensive Result for the year 0 95,768 146,176 268,107

15 THE LUTHERAN WORLD FEDERATION Appendix 2 Department for World Service

CONSOLIDATED BALANCE SHEET AS AT 31 December 2018 (EUR) Central Africa Central Grand Total Jerusalem AVH Total Angola Burundi Cameroon Republic America Chad Colombia D R Congo

ASSETS: Current Assets Cash, banks and securities 20,090,838 38,332 20,052,506 346,671 69,593 42,112 62,051 719,569 1,018,963 275,642 45,881 Project balances receivable 6,371,391 0 6,371,391 172,330 107,357 322,973 117,975 451,807 419,416 234,368 90,869 Prepayments 788,736 128,986 659,750 69,651 1,189 421 10,383 0 21,893 0 609 Advance accounts 448,913 27,037 421,876 0 1,135 0 0 206,192 34,818 0 1,059 Receivables - other 38,441,770 36,283,915 2,157,855 271 6,178 3,704 7,873 39,093 2,827 12,350 0 Inventory 2,021,665 2,021,665 0 0 0 0 0 0 0 0 0 Current accounts - field programs 1,143,092 5,138,410 (3,995,318) (126,615) 102,733 (330,678) (24,003) (317,492) (757,997) 109,876 59,749 69,306,405 43,638,345 25,668,060 462,308 288,185 38,532 174,279 1,099,169 739,920 632,236 198,165

Fixed Assets Buildings and Land Improvements 5,422,416 4,028,596 1,393,820 0 0 0 0 0 0 0 0 Vehicles 3,698,357 54,255 3,644,102 215,435 0 39,324 222,351 120,578 105,001 107,859 359,095 Office Equipment 2,221,362 1,689,683 531,679 0 0 0 28,790 0 80,977 139,358 0 11,342,134 5,772,534 5,569,600 215,435 0 39,324 251,141 120,578 185,978 247,217 359,095

Accumulated Depreciation - Buildings and Land Impro (1,490,404) (329,845) (1,160,559) 0 0 0 0 0 0 0 0 Accumulated Depreciation-Vehicles (3,045,434) (32,349) (3,013,085) (190,550) 0 (31,459) (171,312) (104,928) (55,683) (99,748) (338,980) Accumulated Depreciation - Office Equip (1,509,525) (1,080,045) (429,480) 0 0 0 (28,790) 0 (13,119) (127,756) 0 (6,045,363) (1,442,239) (4,603,124) (190,550) 0 (31,459) (200,102) (104,928) (68,802) (227,504) (338,980)

Other Assets - Deferred Expenditure 3,192,155 0 3,192,155 0 2,207 21,881 15,736 0 171,546 12,239 0

TOTAL ASSETS 77,795,331 47,968,640 29,826,691 487,193 290,392 68,278 241,053 1,114,820 1,028,642 664,188 218,281

LIABILITIES: Current Liabilities Accounts payable 8,502,419 4,697,318 3,805,101 33,716 5,158 23,579 16,399 99,416 75,968 99,075 31,319 Accrued Expenses 1,511,807 260,386 1,251,421 86,539 9,644 4,898 1 19,250 179,591 22,320 25,911 Contributions received in advance 13,120,442 0 13,120,442 376,482 202,296 66,652 157,114 725,858 556,561 500,499 153,066 23,134,669 4,957,704 18,176,965 496,738 217,098 95,130 173,514 844,524 812,120 621,894 210,295

Long Term Liabilities: Field staff provisions 7,283,549 907,272 6,376,277 521 51,831 0 602 117,291 63,592 14,147 0 Payable to LWF Geneva 2,499,560 0 2,499,560 0 0 0 0 0 0 0 0 9,783,109 907,272 8,875,836 521 51,831 0 602 117,291 63,592 14,147 0

Reserves: Field designated 44,877,552 42,103,664 2,773,888 (10,067) 21,463 (26,851) 66,937 153,004 152,931 28,146 7,986

TOTAL LIABILITIES AND RESERVES 77,795,329 47,968,640 29,826,689 487,193 290,392 68,278 241,053 1,114,819 1,028,643 664,188 218,281

16 THE LUTHERAN WORLD FEDERATION Appendix 2 Department for World Service

CONSOLIDATED BALANCE SHEET AS AT 31 December 2018 (EUR) Jerusalem South Ethiopia Haiti Iraq Other projects Jordan Kenya Mauritania Myanmar Nepal Sudan Uganda Zambia

ASSETS: Current Assets Cash, banks and securities 360,934 310,889 185,867 10,175,040 289,169 807,390 140,170 998,435 659,128 276,763 3,267,564 674 Project balances receivable 762,962 194,392 736 205,188 102,292 835,060 128,122 586,384 116,571 428,710 1,093,881 0 Prepayments 5,729 1,135 2,635 43,289 15,694 15,350 0 84,498 0 8,927 378,349 0 Advance accounts 0 19,531 907 48,545 8,649 9,927 3,132 0 11,384 8,838 67,574 185 Receivables - other 11,024 293,204 0 1,243,608 75,376 292,149 1,697 100,955 10,842 31,720 24,984 0 Inventory 0 0 0 0 0 0 0 0 0 0 0 0 Current accounts - field programs 181,623 (77,355) 200,206 (2,959,650) 361,751 203,909 (201,834) (260,486) 178,317 495,313 (864,495) 31,811 1,322,270 741,796 390,351 8,756,020 852,930 2,163,785 71,287 1,509,785 976,241 1,250,270 3,967,857 32,671

Fixed Assets Buildings and Land Improvements 0 0 0 1,393,820 0 0 0 0 0 0 0 0 Vehicles 0 29,157 0 78,083 73,436 638,295 208,092 147,378 154,954 191,253 911,054 42,757 Office Equipment 0 0 0 156,132 0 26,925 0 10,345 0 89,151 0 0 0 29,157 0 1,628,035 73,436 665,219 208,092 157,724 154,954 280,405 911,054 42,757

Accumulated Depreciation - Buildings and Land Impro 0 0 0 (1,160,559) 0 0 0 0 0 0 0 0 Accumulated Depreciation-Vehicles 0 (21,868) 0 (61,870) (21,967) (550,123) (208,092) (147,378) (154,954) (153,945) (657,470) (42,757) Accumulated Depreciation - Office Equip 0 0 0 (156,132) 0 (26,925) 0 (8,276) 0 (68,481) 0 0 0 (21,868) 0 (1,378,561) (21,967) (577,049) (208,092) (155,655) (154,954) (222,426) (657,470) (42,757)

Other Assets - Deferred Expenditure 36,776 27,114 0 2,723,858 0 40,472 28,594 38,422 0 36,470 36,841 0

TOTAL ASSETS 1,359,046 776,199 390,351 11,729,352 904,399 2,292,428 99,882 1,550,277 976,241 1,344,718 4,258,282 32,671

LIABILITIES: Current Liabilities Accounts payable 97,122 130,561 0 727,338 27,131 971,692 3,139 52,890 51,687 127,236 1,231,615 60 Accrued Expenses 42,967 134,778 29,743 76,890 56,625 95,831 10,952 21,252 45,510 200,228 188,492 0 Contributions received in advance 1,090,161 255,039 344,918 3,432,856 740,799 918,395 14,134 1,128,913 575,681 358,167 1,522,850 0 1,230,251 520,377 374,661 4,237,084 824,554 1,985,918 28,225 1,203,056 672,877 685,631 2,942,957 60

Long Term Liabilities: Field staff provisions 40,517 58,263 0 4,268,483 0 0 103,911 290,242 38,218 440,125 885,232 3,301 Payable to LWF Geneva 0 0 0 2,499,560 0 0 0 0 0 0 0 0 40,517 58,263 0 6,768,043 0 0 103,911 290,242 38,218 440,125 885,232 3,301

Reserves: Field designated 88,279 197,558 15,689 724,224 79,846 306,510 (32,255) 56,979 265,146 218,962 430,093 29,309

TOTAL LIABILITIES AND RESERVES 1,359,046 776,198 390,350 11,729,351 904,400 2,292,428 99,881 1,550,277 976,241 1,344,718 4,258,282 32,671

17 THE LUTHERAN WORLD FEDERATION Appendix 3 Department for World Service

SUMMARY OF REVENUE AND EXPENDITURE FOR DWS FIELD PROGRAMS FOR THE YEAR ENDED 31 December 2018 (EUR) Central Africa Central Grand Total Jerusalem AVH Total Angola Burundi Cameroon republic America Chad Colombia D R Congo

Operating Income Programme operations 271,724 0 271,724 0 4,256 4,596 718 0 0 99 58,034 Basket Funded 55,684,554 46,674,004 9,010,550 307,128 388,731 0 0 987,351 0 671,289 0 Emergencies 3,303,870 97,371 3,206,499 986 0 121,092 49,378 69,086 24,167 0 433,510 Other projects 67,747,500 2,431,039 65,316,461 1,048,107 241,562 3,351,744 1,623,850 1,381,559 4,858,319 1,296,404 683,227 Total Project Income 127,007,648 49,202,414 77,805,234 1,356,221 634,548 3,477,433 1,673,947 2,437,995 4,882,486 1,967,792 1,174,771 Other projects - non LWF 1,501,214 0 1,501,214 0 0 0 0 677,978 0 0 0 Non project revenue 5,475,797 0 5,475,796 123,471 33,687 30,801 65,596 53,155 60,283 202,092 56,014 Total Income 133,984,659 49,202,414 84,782,244 1,479,692 668,235 3,508,233 1,739,543 3,169,128 4,942,769 2,169,885 1,230,785

Operating Expenditure Programme operations 271,725 0 271,725 0 4,256 4,597 718 0 0 99 58,034 Basket Funded 53,456,320 44,571,709 8,884,611 307,128 388,731 0 0 987,351 0 671,289 0 Emergencies 3,303,871 97,371 3,206,499 986 0 121,092 49,378 69,085 24,167 0 433,510 Other projects 67,716,818 2,431,039 65,285,779 1,048,107 241,562 3,351,744 1,623,850 1,381,557 4,858,319 1,296,404 683,227 Total Project Expenditure 124,748,734 47,100,119 77,648,614 1,356,221 634,548 3,477,433 1,673,947 2,437,994 4,882,486 1,967,792 1,174,771 Other projects - non LWF 1,501,214 0 1,501,214 0 0 0 0 677,979 0 0 0 Non project expenditure 3,958,173 0 3,958,173 223,977 26,506 41,090 41,018 104,344 73,172 189,549 83,254 Total Expenditure 130,208,121 47,100,119 83,107,998 1,580,198 661,054 3,518,522 1,714,965 3,220,317 4,955,658 2,157,341 1,258,025

Result added to (subtracted from) 3,776,538 2,102,295 1,674,246 (100,506) 7,181 (10,289) 24,579 (51,189) -12888.95 12,544 (27,240)

Reserves, beginning 41,101,014 37,885,428 3,215,586 90,440 14,282 (16,563) 42,358 204,193 165,820 15,603 35,225

Reserves, end 44,877,552 39,987,723 4,889,832 (10,066) 21,463 (26,852) 66,937 153,004 152,931 28,146 7,986

18 THE LUTHERAN WORLD FEDERATION Appendix 3 Department for World Service

SUMMARY OF REVENUE AND EXPENDITURE FOR DWS FIELD PROGRAMS FOR THE YEAR ENDED 31 December 2018 (EUR)

Jerusalem South Ethiopia Haiti Iraq Other Projects Jordan Kenya Mauritania Myanmar Nepal Sudan Uganda Zambia

Operating Income Programme operations 8,605 0 0 0 1 54,365 6,524 0 7,542 117,474 9,510 0 Basket Funded 635,353 657,114 0 2,077,257 0 454,009 410,311 1,122,601 388,059 721,724 189,623 0 Emergencies 177,857 109,735 555,095 0 444,926 584,841 0 137,698 405,107 50,251 25,475 17,293 Other projects 3,371,729 1,239,747 531,203 187,359 2,488,455 10,389,761 1,571,126 2,920,531 2,338,250 6,559,882 19,233,646 0 Total Project Income 4,193,545 2,006,597 1,086,298 2,264,616 2,933,381 11,482,975 1,987,961 4,180,831 3,138,959 7,449,331 19,458,254 17,293 Other projects - non LWF 0 0 0 0 18,537 735,498 0 47,447 0 15,595 6,158 0 Non project revenue 139,440 55,783 16,730 2,841,545 134,771 415,936 69,558 170,602 159,653 314,675 531,252 754 Total Income 4,332,985 2,062,379 1,103,028 5,106,161 3,086,689 12,634,409 2,057,518 4,398,880 3,298,611 7,779,601 19,995,664 18,047

Operating Expenditure Programme operations 8,605 0 (0) 0 0 54,365 6,524 0 7,542 117,474 9,510 0 Basket Funded 635,353 657,115 0 1,951,317 0 454,009 410,311 1,122,601 388,059 721,724 189,623 0 Emergencies 177,857 109,735 555,095 0 444,926 584,841 0 137,698 405,107 50,251 25,475 17,293 Other projects 3,371,729 1,239,746 531,203 156,678 2,488,455 10,389,761 1,571,126 2,920,531 2,338,250 6,559,882 19,233,646 0 Total Project Expenditure 4,193,545 2,006,596 1,086,297 2,107,995 2,933,382 11,482,976 1,987,960 4,180,831 3,138,959 7,449,331 19,458,254 17,293 Other projects - non LWF 0 0 0 0 18,537 735,498 0 47,447 0 15,595 6,158 0 Non project expenditure 150,473 117,973 23,447 924,725 94,106 434,428 68,892 193,542 139,875 258,487 768,024 1,293 Total Expenditure 4,344,017 2,124,569 1,109,744 3,032,720 3,046,025 12,652,902 2,056,852 4,421,820 3,278,834 7,723,413 20,232,436 18,586

Result added to (subtracted from) (11,033) (62,190) (6,717) 2,073,441 40,664 (18,492) 666 (22,939) 19,777 56,188 (236,772) (539)

Reserves, beginning 99,311 259,748 22,406 766,724 39,182 325,003 (32,920) 79,918 245,369 162,775 666,865 29,848

Reserves, end 88,279 197,558 15,689 2,840,165 79,846 306,511 (32,254) 56,979 265,146 218,962 430,093 29,309

19 THE LUTHERAN WORLD FEDERATION Appendix 4 Department for World Service

STATEMENT OF OPERATING INCOME (EUR) Restricted Unrestricted Restricted Field Projects Global Projects Total Total 2018 2018 2018 2018 2017

Member Churches and Related Organizations

Member Churches

Germany Evangelical Lutheran Church in Bavaria 118,469 0 0 118,469 527,369 Evangelical Lutheran Church in Wurttemberg 479,635 40,865 0 520,500 106,270 Evangelische Kirche/Gemeinde Deutschland 75,259 0 0 75,259 0 Evangelisches Missionswerk, Bayern 400,375 0 0 400,375 0 1,073,738 40,865 0 1,114,603 633,640

Switzerland Church of the Brethren 0 0 0 0 10,165 Emmanuel Church of Geneva 24,984 0 0 24,984 0 24,984 0 0 24,984 10,165

Finland Evangelical Lutheran Church of Finland 0 0 0 0 33,660 0 0 0 0 33,660

1,098,722 40,865 0 1,139,587 677,464

Related Organizations

Australia Australian Lutheran World Service 1,233,734 45,488 70,715 1,349,937 2,380,108 Australian Lutheran World Service/DME 0 0 0 0 4,476 Australian Lutheran World Service/DFAT 214,277 0 0 214,277 319,396 1,448,011 45,488 70,715 1,564,214 2,703,979

Canada Canadian Lutheran World Relief 3,593,175 97,938 92,583 3,783,696 3,328,867 Canadian Lutheran World Reliel/Canadian Foodgrains Bank 377,044 0 0 377,044 263,416 3,970,219 97,938 92,583 4,160,740 3,592,283

Denmark DanChurchAid 545,710 205,638 0 751,348 1,360,316 DanChurchAid/ECHO 148,692 0 0 148,692 296,736 694,403 205,638 0 900,041 1,657,052

Finland Finn Church Aid 521,104 280,000 51,454 852,558 975,496 Finnish Evangelical Lutheran Mission 981,244 0 0 981,244 673,030 1,502,349 280,000 51,454 1,833,803 1,648,526

Germany Bread for the World - Protestant Development Service 4,558,990 641,500 24,372 5,224,862 5,412,503 Diakonie Katastrophenhilfe 2,758,913 0 0 2,758,913 7,034,871 Evangelischer Entwicklungsdienst (EED/KED) 80,179 0 0 80,179 63,187 German National Committee of the Lutheran World Federation 881,356 0 54,825 936,181 1,167,617 8,279,437 641,500 79,197 9,000,134 13,678,178

Iceland Icelandic Church Aid 678,468 0 0 678,468 420,286

Netherlands ICCO 702,476 0 0 702,476 1,469,532

Norway Norwegian Church Aid 1,946,957 26,143 0 1,973,100 1,130,101 1,946,957 26,143 0 1,973,100 1,130,101

Sweden Church of Sweden 7,708,578 327,833 110,227 8,146,638 10,738,139 Church of Sweden/ECHO 0 0 0 0 116,615 7,708,578 327,833 110,227 8,146,638 10,854,754

United States of America Evangelical Lutheran Church in America 4,403,657 461,817 278,503 5,143,977 5,463,641 Lutheran World Relief 1,182,501 68,480 0 1,250,981 2,183,685 5,586,158 530,298 278,503 6,394,958 7,647,325

20 THE LUTHERAN WORLD FEDERATION Appendix 4 Department for World Service

STATEMENT OF OPERATING INCOME (EUR) Restricted Unrestricted Restricted Field Projects Global Projects Total Total 2018 2018 2018 2018 2017

Others Local Income - Other 0 0 0 0 59,151 LWF Staff 10,160 0 0 10,160 589 LWS Endowment Fund 66,146 0 0 66,146 8,179 UPR INFO 4,833 0 0 4,833 0 81,139 0 0 81,139 67,920

32,598,194 2,154,838 682,679 35,435,710 44,869,935

Sub Total - Member Churches and Related Organizations 33,696,916 2,195,703 682,679 36,575,297 45,547,399

Other Partners

Government grants Bureau of Population, Refugees, and Migration 6,744,011 0 0 6,744,011 5,753,880 Charities and Societies Agency 18,073 0 0 18,073 116,555 Czech Republic Development Assistance 19,035 0 0 19,035 0 Danida 650,463 0 0 650,463 176,656 Department for International Development (DFID) 341,150 0 0 341,150 412,234 Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) 14,395 0 0 14,395 98,003 European Commission - ECHO 3,916,812 0 0 3,916,812 3,779,016 European Commission - Europeaid 857,671 0 0 857,671 476,826 Swiss Department of Foreign Affairs - FDFA 4,762 0 0 4,762 0 United States Agency for International Development 613,227 0 0 613,227 0 United States of America - Other Donors 1,610 0 0 1,610 0 13,181,210 0 0 13,181,210 10,813,170

UN grants Food and Agriculture Organization 13,976 0 0 13,976 43,129 United Nations Development Programme 456,629 0 0 456,629 2,519,896 United Nations High Commissioner for Refugees 24,273,860 0 0 24,273,860 27,548,188 United Nations Children's Fund 1,340,649 0 0 1,340,649 1,358,163 World Food Programme 1,031,312 0 0 1,031,312 1,493,768 Other UN Agencies 498,377 0 0 498,377 60,370 United Nations - OCHA 558,801 0 0 558,801 775,182 International Organisation for Migration 482,871 0 0 482,871 287,916 28,656,475 0 0 28,656,475 34,086,612

Ecumenical Partners Amity Foundation 0 0 0 0 488,462 All We Can 81,160 0 0 81,160 60,018 Anglican Overseas Aid 9,526 0 0 9,526 87,032 Diakonia ECCB - Center of Relief and Development 171,415 0 0 171,415 248,091 Episcopal Church in America 0 0 0 0 6,454 National Christian Council Japan 0 0 0 0 53,618 Council of Churches of Malaysia 0 0 0 0 7,204 Nederlands Luthers Genootschap voor In- en Uitwendige Zendin 325,432 0 0 325,432 368,753 Diaconia, Sweden 3,484 0 0 3,484 883 Presbyterian Disaster Assistance 0 0 0 0 17,900 Church World Service, USA 126,085 0 0 126,085 0 Disciples of Christ: Week of Compassion 58,587 0 0 58,587 33,859 Federation of Evangelical Churches in Italy 44,000 0 0 44,000 0 Hungarian Interchurch Aid 171,840 0 0 171,840 0 International Orthodox Christian Charities 0 0 0 0 45,006 Other donors-local 18,407 0 0 18,407 84,947 Malankara Orthodox Church 0 0 0 0 38,177 Mission EinWelt 0 0 0 0 128,498 Presbyterian World Service and Development 11,483 0 0 11,483 251,559 Primate's Relief and Development Fund 198,492 0 0 198,492 324,976 Union of Protestant Churches of Alsace and Lorraine 0 0 0 0 10,000 United Church of Canada 17,347 0 0 17,347 16,470 United Methodist Committee on Relief 0 0 0 0 28,254 Uniting World, Australia 0 0 0 0 28,736 Evangelical Church of the Lutheran Confession in Brazil 0 0 0 0 3,028 Council of Lutheran Churches in UK 0 0 0 0 7,051 Wider Church Ministries 29,644 0 0 29,644 16,847 1,266,901 0 0 1,266,901 2,355,824

21 THE LUTHERAN WORLD FEDERATION Appendix 4 Department for World Service

STATEMENT OF OPERATING INCOME (EUR) Restricted Unrestricted Restricted Field Projects Global Projects Total Total 2018 2018 2018 2018 2017

Other International Organizations Christian Aid 164,213 0 0 164,213 107,680 Comic Relief 2,604 0 0 2,604 67,870 CordAid 5,066 0 0 5,066 0 Islamic Relief Worldwide 217,906 0 0 217,906 688,281 Mercy Corps 0 0 0 0 31,792 Norwegian Refugee Council 54,185 0 0 54,185 21,299 443,974 0 0 443,974 916,922

AVH Revenue Augusta Victoria Hospital patients and other revenue 40,448,005 0 0 40,448,005 46,135,823 AVH Patients Revenue 0 0 0 0 20,477 Ministry of Education - Jerusalem 368,040 0 0 368,040 440,757 PNA - Ministry of Finance 150,444 0 0 150,444 160,044 Islamic Development Bank 3,928,363 0 0 3,928,363 19,806 Juzoor For Health and Social Development 23,165 0 0 23,165 8,689 Property - Jerusalem - Rental Revenues 483,724 0 0 483,724 492,064 Refugee Youth Project 2,022 0 0 2,022 302 Rental Income 45,421 0 0 45,421 0 Scholaship Programme 0 0 0 0 62 Welfare Association 293,278 0 0 293,278 351,422 Various Donors - Gala Dinner 53,654 0 0 53,654 0 Jerusalem - Poor Fund 33,552 0 0 33,552 27,239 Guest House Income - Jerusalem 101,715 0 0 101,715 136,776 Bethlehem Apartment / Guesthouse 21,834 0 0 21,834 18,917 Nazareth Apartment / Guesthouse 8,547 0 0 8,547 8,903 Jerusalem Vocational Training Centre Revenue 298,341 0 0 298,341 329,991 Olive Trees 4,606 0 0 4,606 22,561 LWF Royalties 8 0 0 8 0 Local Income -Other 19,873 0 0 19,873 23,097 Health work committees 0 0 0 0 29,200 International Committee of the Red Cross 0 0 0 0 5,854 Palestinian Medical Relief Society 63,941 0 0 63,941 42,638 Net Augusta Victoria Hospital Operating Results 2,258,916 0 0 2,258,916 2,959,216 Norwegian Representative Office 448,022 0 0 448,022 0 Catholic Relief Services 131,626 0 0 131,626 220,181 Web and Other Donors 15,315 0 0 15,315 0 49,202,414 0 0 49,202,414 51,454,020

Other local contributions Bank Interest 24,499 0 0 24,499 17,771 Beneficiary contributions 39,618 0 0 39,618 37,522 Chamber of Commerce 1,421 0 0 1,421 48,699 COOPI International 2,700 0 0 2,700 0 Exchange Gains 103,513 0 0 103,513 (19,548) Income from Compound Management 34,356 0 0 34,356 36,724 Income from Reserves 140,183 0 67,731 207,914 276,338 Charges for Office Costs 0 0 0 0 623 Equipment Hire 584 0 0 584 3,029 Federación Luterana Mundial 13,778 0 0 13,778 0 Sale of Equipment 9,207 0 0 9,207 9,605 Income-Penalty 0 0 0 0 65 Sale of Vehicles 0 0 0 0 14,381 Mileage Income 1,852 0 0 1,852 0 Transfers from Projects 9,512 0 0 9,512 4,758 Web and Other Donors 178,538 0 9,875 188,413 237,079 559,762 0 77,606 637,368 667,049

Sub Total - Other Partners 93,310,735 0 77,606 93,388,341 100,293,596

Administration fees 0 2,119,270 309,737 2,429,007 1,892,784

Non-Project Income Non-project income 5,475,798 0 0 5,475,798 5,953,766

Non-implementation Projects 1,501,214 0 0 1,501,214 1,607,009

Total Operating Income 133,984,664 4,314,973 1,070,022 139,369,657 155,294,557

Financial Income Net exchange gains 0 37,019 0 37,019 (598,130) Interest Income 0 28,380 0 28,380 39,694 Net gains/(losses) on bonds 0 (121,297) 0 (121,297) 396,379 0 (55,898) 0 (55,898) (162,057)

Total Income 133,984,664 4,259,075 1,070,022 139,313,759 155,132,500

22 THE LUTHERAN WORLD FEDERATION Appendix 5 Department for World Service

FUNDS RECEIVED IN GENEVA ON BEHALF OF FORMER WORLD SERVICE PROGRAMS FOR THE YEAR ENDED 31 December 2018 (not included in consolidated revenue numbers) (EUR)

Received on behalf of RDRS, Bangladesh Lutheran Life Together 8,292 Evangelische Kirche in Deutschland 50,000 58,292

Received on behalf of Lutheran Development Service, India Australian Lutheran World Service 24,712 24,712

Received on behalf of ELDS, Zimbabwe Empowerment of Youth 25,000 25,000

Total for Former World Service Programs 108,004

23 THE LUTHERAN WORLD FEDERATION Appendix 6 Department for World Service

SUMMARY OF MOVEMENT OF FIELD DESIGNATED RESERVES FOR THE YEAR ENDED 31 December 2018 (EUR)

Balance as at Transfers Receipts Disbursements Net AVH/VTC Balance as at 1st January between Operating 31st December 2018 Reserves results 2018

Vehicle Replacement Fund 666,091 (2,176) 136,820 (368,398) 0 432,337 Emergency Medical Insurance Fund 46,888 0 0 0 0 46,888 Asset Replacement 75,641 2,414 32,475 (39,670) 0 70,859 Fixed Asset 3,167,940 0 3,029,966 (901,135) 0 5,296,771 Other Funds 574,703 0 233,024 (359,321) 156,621 605,028 Capital Reserve 748,181 (238) 233,073 (247,292) 0 733,723 AVH/VTC Operating Reserve 35,671,075 0 0 0 2,102,295 37,773,370 Restricted Reserves 208,498 0 14,861 0 0 223,359 Exchange Fluctuations (58,004) 0 1,952,200 (2,198,979) 0 (304,782) Total 41,101,014 0 5,632,419 (4,114,795) 2,258,916 44,877,552

24 THE LUTHERAN WORLD FEDERATION Appendix 7 Department for World Service

SUMMARY OF CHANGES IN LONG TERM LIABILITIES FOR THE YEAR ENDED 31 December 2018 (EUR)

Balance as at 1st Receipts Disbursements Balance as at 31st January 2018 December 2018

Local Staff Provisions - Other 7,028,682 1,896,536 (1,641,669) 7,283,549

Total 7,028,682 1,896,536 (1,641,669) 7,283,549

25 LUTHERAN WORLD FEDERATION Department for World Service

MATRIX OF B PROJECTS INCOME AND EXPENDITURE (EUR) Intern. Climate Resource Accountability Training in Right PMER Interfaith Change Donor Name Total Internal Audit Mobilisation Training Based Advocacy Revision Communications Collab. Adaptation 90-4201 90-4202 90-4205 90-4206 90-4207 90-4208 90-4209 90-4212

INCOME Received in the previous year: Australian Lutheran World Service (9,614) (9,614) 0 0 0 0 0 0 0 Canadian Lutheran World Relief (5,247) 0 0 0 0 0 0 0 0 German National Committee of the Lutheran World Federation (17,137) 0 0 0 0 0 0 0 (4,312) Church of Sweden (34,988) (5,817) 0 0 0 0 0 (18,099) 0 Evangelical Lutheran Church in America (37,535) (18,606) 0 0 0 0 0 0 0 Other Donors (International) (9,875) 0 0 0 0 0 0 (9,875) 0 (114,396) (34,038) 0 0 0 0 0 (27,974) (4,312)

Received in the current year: Australian Lutheran World Service (66,007) (9,098) (9,098) (9,098) 0 0 0 0 0 Canadian Lutheran World Relief (93,835) 0 0 0 0 0 0 0 0 Finn Church Aid (80,000) 0 0 0 (25,000) (25,000) 0 0 0 German National Committee of the Lutheran World Federation (71,000) 0 0 0 0 0 (6,000) 0 0 Church of Sweden (132,746) (7,257) 0 0 (20,512) (14,513) 0 0 0 Evangelical Lutheran Church in America (360,201) (6,754) (28,609) 0 0 (56,414) 0 0 0 United Nations High Commissioner for Refugees (98,803) 0 0 0 0 0 0 0 0 Mozambique - Reserves (67,731) 0 0 0 0 0 0 0 0 Transfers between projects or to CPs: Church of Sweden 43,654 0 0 0 0 0 0 0 0 Evangelical Lutheran Church in America 224,315 0 0 0 0 0 0 0 0 Administration fees (210,934) 0 0 0 0 0 0 0 0 (913,289) (23,108) (37,706) (9,098) (45,512) (95,927) (6,000) 0 0

Carried forward to 2019: Australian Lutheran World Service 4,906 0 0 2,500 0 0 0 0 0 Canadian Lutheran World Relief 6,499 0 0 0 0 0 0 0 0 Finn Church Aid 28,546 0 0 0 8,546 0 0 0 0 German National Committee of the Lutheran World Federation 33,312 0 0 0 0 0 0 0 4,312 Church of Sweden 13,853 0 0 0 605 0 0 0 0 Evangelical Lutheran Church in America 68,579 4,544 0 0 0 0 0 0 0 155,694 4,544 0 2,500 9,151 0 0 0 4,312

Accrued in the current year: Bread for the World - Protestant Development Service (24,372) 0 0 0 0 0 0 0 0 Evangelical Lutheran Church in America (173,660) 0 (17,167) 0 0 (50,473) 0 0 0 (198,032) 0 (17,167) 0 0 (50,473) 0 0 0

Total income (1,070,022) (52,602) (54,873) (6,597) (36,361) (146,400) (6,000) (27,974) 0

EXPENDITURE Expenditure 1,070,022 52,602 54,873 6,597 36,361 146,400 6,000 27,974 0

Total Expenditure 1,070,022 52,602 54,873 6,597 36,361 146,400 6,000 27,974 0

Closing Balance, 31 December 2018 0 0 0 0 0 0 0 0 0

26 LUTHERAN WORLD FEDERATION Department for World Service

MATRIX OF B PROJECTS INCOME AND EXPENDITURE (EUR) Humanitarian Country Child Engaging with Safety and Compliance Systems Strategy Gender Emergengy Program Write- Donor Name Protection UPR Security Review Developmt Review Justice Team off 90-4214 90-4215 90-4216 90-4217 90-4218 90-4219 90-4220 90-4401 90-4601

INCOME Received in the previous year: Australian Lutheran World Service 0 0 0 0 0 0 0 0 0 Canadian Lutheran World Relief 0 0 0 0 0 0 0 (5,247) 0 German National Committee of the Lutheran World Federation 0 0 0 0 0 0 0 (12,825) 0 Church of Sweden 0 0 0 0 0 0 0 (11,071) 0 Evangelical Lutheran Church in America 0 0 0 0 0 0 0 (18,928) 0 Other Donors (International) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (48,072) 0

Received in the current year: Australian Lutheran World Service (21,448) 0 0 0 0 (12,718) (4,549) 0 0 Canadian Lutheran World Relief 0 0 (85,459) 0 0 (8,377) 0 0 0 Finn Church Aid 0 0 0 0 0 (10,000) (20,000) 0 0 German National Committee of the Lutheran World Federation 0 0 0 0 0 (15,000) 0 (50,000) 0 Church of Sweden 0 0 (7,257) 0 (29,026) 0 (5,805) (48,377) 0 Evangelical Lutheran Church in America 0 0 0 0 0 0 0 (268,425) 0 United Nations High Commissioner for Refugees 0 0 0 0 0 0 0 0 (98,803) Mozambique - Reserves 0 0 0 0 0 0 0 0 (67,731) Transfers between projects or to CPs: Church of Sweden 0 0 0 0 0 0 0 43,654 0 Evangelical Lutheran Church in America 0 0 0 0 0 0 0 224,315 0 Administration fees 0 0 0 0 0 0 0 0 (210,934) (21,448) 0 (92,715) 0 (29,026) (46,095) (30,354) (98,833) (377,468)

Carried forward to 2019: Australian Lutheran World Service 2,406 0 0 0 0 0 0 0 0 Canadian Lutheran World Relief 0 0 6,499 0 0 0 0 0 0 Finn Church Aid 0 0 0 0 0 0 20,000 0 0 German National Committee of the Lutheran World Federation 0 0 0 0 0 15,000 0 14,000 0 Church of Sweden 0 0 0 0 0 0 0 13,248 0 Evangelical Lutheran Church in America 0 0 0 0 0 0 0 64,035 0 2,406 0 6,499 0 0 15,000 20,000 91,283 0

Accrued in the current year: Bread for the World - Protestant Development Service 0 (24,372) 0 0 0 0 0 0 0 Evangelical Lutheran Church in America 0 0 0 (106,020) 0 0 0 0 0 0 (24,372) 0 (106,020) 0 0 0 0 0

Total income (19,042) (24,372) (86,216) (106,020) (29,026) (31,095) (10,354) (55,622) (377,468)

EXPENDITURE Expenditure 19,042 24,372 86,216 106,020 29,026 31,095 10,354 55,622 377,468

Total Expenditure 19,042 24,372 86,216 106,020 29,026 31,095 10,354 55,622 377,468

Closing Balance, 31 December 2018 0 0 0 0 0 0 0 0 0

27 The Lutheran World Federation Department for World Service

Internal Audit LWF Project No. 4201

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in the previous year Australian Lutheran World Service 9,600 9,614 Church of Sweden 5,800 5,817 Evangelical Lutheran Church in America 18,600 18,606

Received in the current year Australian Lutheran World Service 10,000 9,098 Church of Sweden 8,000 7,257 Evangelical Lutheran Church in America 15,000 6,754

Deferred Income * Evangelical Lutheran Church in America 0 (4,544)

Total Income 60,000 67,000 52,602

EXPENDITURE

Consultants Consultancy fees 39,000 20,986 Consultants travel related costs 4,078 0 39,000 25,064

Staff Salaries and Benefits Staff salaries 28,000 27,538 0 28,000 27,538

Total Expenditure 60,000 67,000 52,602

Closing Balance, 31 December 2018 0 0 0

* Deferred income relates to unspent funds. This amount has been transferred to the balance sheet as a project balance, which will be spent in 2019.

28 The Lutheran World Federation Department for World Service

Resource Mobilization LWF Project No. 4202

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in the current year Australian Lutheran World Service 10,000 9,098 Evangelical Lutheran Church in America 40,000 28,609

Accrued Income Evangelical Lutheran Church in America 0 17,167

Total Income 380,000 50,000 54,873

EXPENDITURE

Global Funding Officer - East and Horn of Africa Region Staff Salary and Benefits 90,000 79,179 Staff Travel Expenses 0 6,416 Computer charges 0 5,126 Other Office Expenses 0 175 0 90,000 90,896

Global Funding Officer - Francophone Region Staff Travel Expenses 0 222 0 0 222

Sub Total - Expenditure 0 90,000 91,118

Less allocated to Country Programmes Staff payroll recharged to Country Programmes 0 (40,000) (36,245)

Net Expenditure 380,000 50,000 54,873

Closing Balance, 31 December 2018 0 0 0

29 The Lutheran World Federation Department for World Service

Accountability Training LWF Project No. 4205

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in the current year Australian Lutheran World Service 10,000 9,098

Deferred Income * Australian Lutheran World Service 0 (2,500)

Total Income 45,000 10,000 6,597

EXPENDITURE

Accountability training to country programmes Consultancy fees 10,000 6,597

Total Expenditure 45,000 10,000 6,597

Closing Balance, 31 December 2018 0 0 0

* Deferred income relates to unspent funds. This amount has been transferred to the balance sheet as a project balance, which will be spent in 2019.

30 THE LUTHERAN WORLD FEDERATION Department for World Service

Training in Rights based Advocacy LWF Project No. 4206

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in the current year FinnChurchAid 25,000 25,000 Church of Sweden 23,000 20,512

Deferred Income * Finn Church Aid 0 (8,546) Church of Sweden 0 (605)

Total Income 80,000 48,000 36,361

EXPENDITURE

Consultants travel costs 6,000 4,438 Participants travel & related costs 8,200 1,788 Printing and publication costs 800 597 Consultancy fees 10,000 9,632

Support for Advocacy visits Participants travel & related costs 7,000 7,869

Develop model through support to Right based Advocacy initiatives in country Participants travel & related costs 3,000 2,165 Consulting fees 5,000 2,256

Support Geneva staff capacity Staff cost 8,000 7,617

Total Expenditure 80,000 48,000 36,361

Closing Balance, 31 December 2018 0 0 0

* Deferred income relates to unspent funds. This amount has been transferred to the balance sheet as a project balance, which will be spent in 2019.

31 THE LUTHERAN WORLD FEDERATION Department for World Service

PMER Revision LWF Project No. 4207

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in the current year Church of Sweden 16,000 14,513 Evangelical Lutheran Church in America 86,000 56,414 FinnChurchAid 25,000 25,000

Accrued income Evangelical Lutheran Church in America 0 50,473

Total Income 100,000 127,000 146,400

EXPENDITURE

Regional Consultant PMER - Asia Consultancy fees 0 63,761 Consultants accommodation 0 2,999 Consultants Travel Costs 0 6,321 Computer Charge 0 5,044 0 67,000 78,124

Regional Consultant PMER - Francophone Staff Salary and Benefits 0 45,828 Accommodation and Meals 0 6,251 Staff Travel 0 3,338 Furniture & equipment 0 306 Computer charges 0 1,186 0 0 56,909

32 THE LUTHERAN WORLD FEDERATION Department for World Service

PMER Revision LWF Project No. 4207

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

Newdea Support team Staff Salary and Benefits 0 82,761 Computer Charge 0 2,287 0 0 85,047

PME systems advisor Staff Salary and Benefits 0 62,611 Staff Accommodation 0 4,629 Consultants Travel Costs 0 14,122 Computer Charge 0 5,198 0 70,000 86,560

Less Allocated to Country Programmes Staff Costs Recharge 0 (10,000) (5,700)

Total Expenditure 100,000 127,000 300,940

Transfer to Geneva Coordination 0 (154,540)

Closing Balance, 31 December 2018 0 0 0

33 THE LUTHERAN WORLD FEDERATION Department for World Service

Communications Project LWF Project No. 4208

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in current year German National Committee of the Lutheran World Federation 6,000 6,000

Total Income 0 6,000 6,000

EXPENDITURE

Salary related expenses Staff Salary and benefits 6,000 6,000

Total Expenditure 0 6,000 6,000

Closing Balance, 31 December 2018 0 0 0

34 THE LUTHERAN WORLD FEDERATION Department for World Service

Intern, Interfaith collaboration LWF Project No. 4209

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in the previous year Church of Sweden 18,000 18,099 Other Donors (International) 10,000 9,875

Total Income 0 28,000 27,974

EXPENDITURE

Workshop expenses Consultancy Fees 18,000 22,445 Participants travel costs 2,000 1,255

Other expenses Printing, stationery, supplies 8,000 4,275

Total Expenditure 0 28,000 27,974

Closing Balance, 31 December 2018 0 0 0

35 THE LUTHERAN WORLD FEDERATION Department for World Service

Climate change adaptation project LWF Project No. 4212

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in previous year German National Committee of the Lutheran World Federation 0 (4,312)

Deferred Income * German National Committee of the Lutheran World Federation 0 4,312

Total Income 0 0 0

EXPENDITURE

Total Expenditure 0 0 0

Closing Balance, 31 December 2018 0 0 0

* Deferred income relates to unspent funds. This amount has been transferred to the balance sheet as a project balance, which will be spent in 2019.

36 THE LUTHERAN WORLD FEDERATION Department for World Service

Child rights project monitoring LWF Project No. 4214

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year to Budget Budget Date

INCOME

Received in previous year Australian Lutheran World Service 22,000 21,448

Deferred Income * Australian Lutheran World Service 0 (2,406)

Total Income 45,000 22,000 19,042

EXPENDITURE Consultancy Fee 8,000 6,103 Consultant Travel Costs 1,000 396 Praticipants Travel & Related Costs 9,000 9,166 Workshop Items & Supplies 4,000 3,377

Total Expenditure 45,000 22,000 19,042

Closing Balance, 31 December 2018 0 0 0

* Deferred income relates to unspent funds. This amount has been transferred to the balance sheet as a project balance, which will be spent in 2019.

37 THE LUTHERAN WORLD FEDERATION Department for World Service

Engaging with universal periodic review LWF Project No. 4215

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Accrued income Bread for the World - Protestant Development Service 0 24,372

Total Income 0 0 24,372

EXPENDITURE

Salary related expenses Staff Salary and benefits 0 136,619 0 0 136,619

Staff travel expenses Staff Travel and related costs 0 261 0 0 261

Other expenses Communication costs 0 116 Occupancy charges (office &IT) 0 5,761 Printing, stationery and supplies 0 79 Computer department 0 15,503 0 0 21,458

Total Expenditure - Salaries, Travel and Other Expenses 0 0 158,338

Allocated to Projects Allocation of staff related expenses 0 (154,614) 0 0 (154,614)

Net - Expenditure less allocation to projects 0 0 3,725

Project Expenditure

Mozambique Flagship MOZ Land rights : International activities 0 2,441 MOZ Land rights: Monitoring and evaluation 0 83 MOZ Land rights: Consultancy 0 100 MOZ Land rights: Project officer Geneva 0 18,023 0 0 20,647

Total Project Expenditure 0 0 24,372

Closing Balance, 31 December 2018 0 0 0

38 THE LUTHERAN WORLD FEDERATION Department for World Service

Safety and security LWF Project No. 4216

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in current year Canadian Lutheran World Relief 90,000 85,459 Church of Sweden 8,000 7,257

Deferred Income * Canadian Lutheran World Relief 0 (6,499)

Total Income 110,000 98,000 86,216

EXPENDITURE

Field based security advisor National staff on regional deployment 56,000 56,198 Travel costs 3,500 3,205 Staff training 500 5,044 0 60,000 64,447

Other security costs and trainings Consultancy fees 7,500 492 Membership fees 7,000 5,886 Staff Cost 13,000 12,927 Staff Travel 8,000 1,649 Meals and accommodation 2,500 815 0 38,000 21,769

Total Expenditure 110,000 98,000 86,216

Closing Balance, 31 December 2018 0 0 0

* Deferred income relates to unspent funds. This amount has been transferred to the balance sheet as a project balance, which will be spent in 2019.

39 THE LUTHERAN WORLD FEDERATION Department for World Service

Compliance Reviews LWF Project No. 4217

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year to Budget Budget Date

INCOME

Accrued income Evangelical Lutheran Church in America 64,000 106,020

Total Income 0 64,000 106,020

EXPENDITURE

Consultant Procurement and Logistics Consultancy fees 90,400 Consultants accommodation 2,696 Consultants travel costs 6,311 Equipment (camera, computer, printer, phone) 5,994 0 50,000 105,400

Global Finance Compliance Consultants accommodation 1,913 Consultants travel costs 40 Staff Salary and benefits 11,305 0 14,000 13,258

Less Allocated to Country Programmes 0 (12,638) 0 0 (12,638)

Total Expenditure 0 64,000 106,020

Closing Balance, 31 December 2018 0 0 0

40 THE LUTHERAN WORLD FEDERATION Department for World Service

Systems development LWF Project No. 4218

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year to Budget Budget Date

INCOME

Received in current year Church of Sweden 30,000 29,026

Total Income 150,000 30,000 29,026

EXPENDITURE

Salary related expenses Staff Salary and Benefits 3,902 0 5,000 3,902

Learning Lab DCA Learning Labs 20,530 0 25,000 20,530

Sage Consultants Consultancy Fees 2,039 Consultants Travel Costs 2,555

0 0 4,594

Total Expenditure 150,000 30,000 29,026

Closing Balance, 31 December 2018 0 0 0

41 THE LUTHERAN WORLD FEDERATION Department for World Service

Strategy review LWF Project No. 4219

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in current year FinnChurchAid 10,000 10,000 Australian Lutheran World Service 10,000 12,718 German National Committee of the Lutheran World Federation 15,000 15,000 Canadian Lutheran World Relief 10,000 8,377

Deferred Income * German National Committee of the Lutheran World Federation 0 (15,000)

Total Income 50,000 45,000 31,095

EXPENDITURE

Consultancy fees 28,000 15,140 Printing and publication costs 15,000 14,192 Accomodations and meals 2,000 1,762

Total Expenditure 50,000 45,000 31,095

Closing Balance, 31 December 2018 0 0 0

* Deferred income relates to unspent funds. This amount has been transferred to the balance sheet as a project balance, which will be spent in 2019.

42 THE LUTHERAN WORLD FEDERATION Department for World Service

Gender Justice LWF Project No. 4220

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in current year Australian Lutheran World Service 5,000 4,549 Church of Sweden 6,000 5,805 FinnChurchAid 20,000 20,000

Deferred Income * Finn Church Aid 0 (20,000)

Total Income 30,000 31,000 10,354

EXPENDITURE

Staff costs 9,439 Participants travel 915

Total Expenditure 30,000 31,000 10,354

Closing Balance, 31 December 2018 0 0 0

* Deferred income relates to unspent funds. This amount has been transferred to the balance sheet as a project balance, which will be spent in 2019.

43 THE LUTHERAN WORLD FEDERATION Department for World Service

Humanitarian emergency team LWF Project No. 4401

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in previous year Canadian Lutheran World Relief 5,000 5,247 German National Committee of the Lutheran World Federation 12,000 12,825 Church of Sweden 11,000 11,071 Evangelical Lutheran Church in America 18,000 18,928

Received in current year German National Committee of the Lutheran World Federation 8,000 50,000 Church of Sweden 9,000 48,377 Evangelical Lutheran Church in America 79,741 268,425

Deferred Income * German National Committee of the Lutheran World Federation (14,000) Church of Sweden (13,248) Evangelical Lutheran Church in America (64,035)

Income transfer Church of Sweden 0 (43,654) Evangelical Lutheran Church in America 0 (224,315)

Total Income 600,000 142,741 55,622

EXPENDITURE

Increased Emergency Team Capacity Staff Salary and benefits 65,000 38,259

Staff travel Travel costs (air tickets and accommodation) 10,000 0

Operational budget Consultancies (including emergency roster) 54,165 7,952 Capacity building (regional workshops) 10,000 0 Staff training 2,500 0 Printing,stationery,supplies 0 9,411

Other office costs Office operation (phone, electricity, postage, consumables) 576 0 Equipment (camera, computer, printer, phone) 500 0

Total Expenditure 600,000 142,741 55,622

Closing Balance, 31 December 2018 0 0 0

* Deferred income relates to unspent funds. This amount has been transferred to the balance sheet as a project balance, which will be spent in 2019. ** The figures presented here relate to Geneva expenditure. Other Hub expenses are reported in the host country audit reports.

44 THE LUTHERAN WORLD FEDERATION Department for World Service

Country program support LWF Project No. 4601

Financial Report for the period ended, 31 December 2018 All amounts stated in EURO

Approved Working Actual Year Budget Budget to Date

INCOME

Received in current year Mozambique - Reserves 67,731 United Nations High Commissioner for Refugees 98,803 Administration fees 210,934

Total Income 0 0 377,468

EXPENDITURE

Country Program Operations Mauritania 133,913 Country Program Operations Democratic Republic of the Congo 149,106 Country Program Operations Cameroon 26,718 Mozambique - Reserves transferred to Coordination 67,731

Total Expenditure 0 0 377,468

Closing Balance, 31 December 2018 0 0 0

45