From choice, a world of possibilities Financial Annual Report 2006 From choiceStatements, a world of possibilities 2009 From choice, a world of possibilities IPPF is a global service provider and a leading advocate of sexual and reproductive health and rights for all. We are a worldwide movement of national organizations working with and for communities and individuals. IPPF works towards a world where women, men and young people everywhere have control over their own bodies, and therefore their destinies. A world where they are free to choose parenthood or not; free to decide how many children they will have and when; free to pursue healthy sexual lives without fear of unwanted pregnancies and sexually transmitted infections, including HIV. A world where gender or sexuality are no longer a source of inequality or stigma. We will not retreat from doing everything we can to safeguard these important choices and rights for current and future generations. Contents Executive summary 2 Annual report of the Governing Council 4 Independent Auditors’ report to the governing council of the International Planned Parenthood Federation 20 Statement of financial activities 22 Balance sheets 23 Cash flow statement 25 Notes to the financial statements 27 Contacts 62 2 IPPF Financial Statements 2009 120 100 80 60 Executive summary 40 20 0 Income in 2009 of US$140.2 Million Income received from governments, Figure 1: IPPF Income 2004–2009 foundations and other sources has increased over the past five years US$m by 46%. 2009 income increased 160 by US$20.5 million, a movement of 17% compared to 2008. The main 140 drivers were a significant unrestricted legacy received by Western 120 Hemisphere Region of US$7.7 million, 100 and a rise in restricted income of US$11.7 million, largely due 80 significant new restricted funding from the Government of Netherlands 60 and from the Gates Foundation. 40 Unrestricted Government grants rose by approximately US$2 million, 20 representing an increase of US$8.9 million in local currency terms, 2004 2005 2006 2007 2008 2009 offset by approximately US$6.9 million reduction caused by the strengthening of the US dollar, which impacted on the US dollar value of receipts in other currencies. Figure 2: Expenditure in 2009 of US$131 million by type Donors continue to support unrestricted activities with over 68% E A Grants to Member Associations D of funds being available for IPPF F C to allocate to Strategic Priority areas. B Programme activities C Support costs Expenditure in 2009 D Fundraising B A of US$ 131.0 Million E Trading company Expenditure on grants to Member F Governance Associations and partner organizations of US$81.6 million, an increase of over 14% from 2008. The costs involved in raising resources represent 2.4% of total expenditure, a fall from 2.9% in 2008. IPPF Financial Statements 2009 3 Figure 3: Expenditure in 2009 of $131 million by activity US$m Expenditure on adolescents has 140 increased by US$9.9 million, due Trading Company & Other to 2009 being the first full year 120 of the ‘Intensification of Sexual and Evaluation Reproductive Health & Rights (SRHR)’ Capacity Building project funded by The Government 100 of the Netherlands. Resource Mobilization Expenditure on abortion activity 80 Accreditation & Governance fell by US$4.6 million. This is due to Advocacy a US$5 million reduction in grants 60 relating to the Promoting Real Options Abortion project (anonymous donor) managed 40 Access out of our Western Hemisphere Regional office. The total expenditure HIV/AIDS 20 commitments for this multi-year Adolsecents project were recognised in 2008 in line with UK accounting convention, resulting in high expenditure in 2008 2009 2008 compared to subsequent years. Audit opinion Our auditors, KPMG LLP have Figure 4: IPPF’s governance structure: provided an unqualified audit opinion on our 2009 financial statements. Member Associations Volunteers from each Association elect their own governing body All Member Associations represented at Regional Council REC members elected Six Regional Executive by RC Six Regional Councils Committees Meet once per year Meet three times per year Five volunteers elected by each Regional Council to Governing Council Audit Committee Governing Council Membership Committee All regions represented, Thirty members meet All regions represented meets twice per year twice per year meets twice per year 4 IPPF Financial Statements 2009 Annual report of the Governing Council Introduction The International Planned Parenthood IPPF currently has 152 Member The Member Associations of IPPF Federation (IPPF) is a global service Associations (MAs). These Member are all autonomous and report provider and a leading advocate Associations are working in 163 independently, therefore their of sexual and reproductive rights for countries (the Caribbean Family accounts are not presented here. all. IPPF is a worldwide movement Planning Affiliation operates in The accounts contained herein have of national organizations working with 12 countries). In addition, IPPF is active been prepared in accordance with the and for communities and individuals, in a further 11 countries where there Statement of Recommended Practice focussing support on those who are is not currently a Member Association. (SORP), Accounting and Reporting poor, marginalised socially excluded This brings the total number of by Charities, as issued by the Charity and under-served. countries in which IPPF is working Commission in 2005. to 174. IPPF’s mission is driven by the needs and desires of the communities and individuals that we work with and for. IPPF Financial Statements 2009 5 Structure, governance and management Governing document Governance IPPF was formed in 1952 and IPPF is governed by a Governing incorporated in 1977 under a UK Council, composed of 30 volunteers Act of Parliament: The International from Member Associations, and Planned Parenthood Federation appoints a Director-General as its Act 1977. The Governing Council Chief Executive Officer responsible confirm that the Strategic Framework for managing the affairs of the is in alignment with the purposes Federation as determined by the stated in the Act. Governing Council. Public benefit Governing Council members are elected for a period of three years. In April 2008 the Charity Commission Each Regional Council elects five guidance on Public Benefit was members to serve as Governing considered with the recommended Council members and also elects self-assessment for the public benefit a Regional Executive Committee principles undertaken. The Governing to govern the affairs of the Region. Council confirm that the aims of Each Member Association has Incorporated under the organization as stated in The a volunteer Board of Directors a UK Act of Parliament, International Planned Parenthood (elected by the membership of the Act 1977 meet the charitable purposes Association) and sends one or more IPPF’s aims are the as outlined in The Charities Act as a delegate to Regional Council. advancement of health 2006. Specifically, IPPF is engaged with purposes in relation to the The Governing Council meets and human rights. ‘advancement of health or the saving twice per year, for three days. This of lives’ and the ‘advancement of Council has two sub-committees; human rights’. the Membership Committee and the Audit Committee which meet twice As discussed on pages 8 to 14, IPPF per year for one day at a time. has set out its mission to improve sexual and reproductive health and Following the election of a new rights for millions of women, men Governing Council, members receive and young people around the world a comprehensive induction pack in its Strategic Framework. The outlining their responsibilities as Strategic Framework demonstrates UK charity trustees. In addition, an that IPPF is engaged in activities interactive session is held where which have general public benefit members are provided with materials in the 163 countries in which IPPF in relation to strategy, policies and currently works with our Member finances as well as practical elements Associations. IPPF works through one concerning the role distinctions organization in each of these countries. between volunteers and staff. Member Associations do not pay any fee to become or maintain their membership of the IPPF. Through monitoring global indicators IPPF assesses its ability to meet the needs of the poor, marginalized, socially- excluded and/or under-served groups, ensuring that those in poverty have the opportunity to benefit from the services IPPF provides. 6 IPPF Financial Statements 2008 In order to assess our The responsibilities The Governing Council’s members of the governing council are responsible for the maintenance progress against our and integrity of the financial and Under charity law, the members of the other information included on strategic priorities Governing Council are responsible for the IPPF website. Legislation in the a series of global preparing the Trustee Report and the UK governing the preparation and financial statements for each financial dissemination of financial statements indicators were year which show a true and fair view may differ from legislation in other developed. These of IPPF and the results for that period. jurisdictions. In preparing these financial were gathered from statements, generally accepted Organization Member Associations accounting practice entails that the IPPF has a Secretariat that carries across the Federation Governing Council members: out the policies