From choice, a world of possibilities Financial Annual Report 2006 Statements From choice, a world of possibilities 2011 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 5 Report of the independent auditors 18 Statement of financial activities 19 Balance sheets 20 Cash flow statement 22 Notes to the financial statements 24 Contact names and addresses 59 2 IPPF Financial Statements 2011 Executive Summary Income in 2011 of US$127.6 million IPPF’s total income from governments, Figure 1: IPPF Income 2006–2011 foundations and other sources rose by US$3.4 million between 2010 and US$m 2011, an increase of 3%. This 160 comprised a rise of US$4.1 million in restricted income (9%), and a fall in 140 unrestricted income of US$0.7 million (1%). Over the past five years, total 120 income from governments, foundations and other sources has 100 increased by 19%. The rise in restricted income was due to 80 increased programme funding by the governments of United Kingdom, 60 Australia and Norway and a number of foundations including the Bill and 40 Melinda Gates Foundation and the David and Lucile Packard Foundation. 20 As a Federation there are increasing opportunities for restricted and contract 2006 2007 2008 2009 2010 2011 income through competitive tendering. The most significant driver in the fall in unrestricted income was the decision by the government of Netherlands to stop funding the Federation on an unrestricted basis, and instead provide Figure 2: IPPF’s governance structure: restricted funding only. This was offset in part by an increase in funding from Member Associations the government of Australia of Volunteers from each Association elect their own governing body US$1.5 million, the government of Switzerland of US$1.4 million, and a All Member Associations donation of commodities from UNFPA represented at Regional Council REC members with a value of US$2.1 million. elected Six Regional Executive by RC Six Regional Councils The unrestricted funding we receive Committees Meet once per year from our major donors plays a key role Meet three times per year in ensuring that the key services and advocacy provided by the Federation’s Four volunteers elected by each Regional Council to Governing Council Member Associations can continue. The funding also strengthens the Audit Committee Governing Council Membership Committee sustainability of IPPF Member All regions represented, Twenty four members meet All regions represented Associations by providing a platform meets twice per year twice per year meets twice per year from which they can secure further funding, increasing the long-term impact they have in the communities they work with and for. IPPF Financial Statements 2011 3 Expenditure in 2011 of US$125.7 million Grants made to Member Associations and partner organizations have increased by 25% over the past five years. In 2011 grants expenditure fell Figure 3: Expenditure in 2011 of US$125.7 million by activity 0140 by US$1.4 million (2%). This decrease reflects the fact that a number of US$m 120 incoming funds only became available 140 to IPPF relatively late in the 2011 planning cycle, and therefore were Trading Company & Other 100 earmarked to support implementing 120 activities in 2012 onwards, rather than Evaluation 80 in 2011. This approach will ensure 100 Capacity Building that the funds achieve the most high-impact, sustainable results. Resource Mobilization 60 80 Expenditure on abortion programmes Accreditation & Governance increased by US$7.3 million (59%), 40 60 Advocacy driven by increased implementation on anonymous-donor funded global Abortion 20 abortion initiatives. This increase was 40 Access offset by a decrease in adolescents HIV/AIDS spend of US$4.4 million (27%), due to 20 the completion of the Netherlands- Adolescents funded ’Intensification of Sexual and Reproductive Health & Rights (SRHR)’ 2011 2010 project in 2010- expenditure on a new Netherlands funded adolescents- focussed programme, ’The Choices and Opportunities Fund’, commenced in 2011 and will result in higher levels of expenditure in this area in future years. Figure 4: Expenditure in 2011 of US$125.7 million by type X A Grants to Member Associations and Partners D F Audit opinion C B Programme activities Our auditors, KPMG LLP have provided C Support an unqualified audit opinion on our 2011 financial statements. D Fundraising B A X Trading company F Governance 4 IPPF Financial Statements 2011 Annual Report of the Governing Council Introduction The International Planned Parenthood 165 countries (the Caribbean Family The accounts contained herein have Federation (IPPF) is a global service Planning Affiliation operates in been prepared in accordance with the provider and a leading advocate of 13 countries). In addition, IPPF is Statement of Recommended Practice sexual and reproductive rights for active in a further eight countries (SORP), Accounting and Reporting all. IPPF is a worldwide movement of where there is not currently a by Charities, as issued by the Charity national organizations working with Member Association. This brings the Commission in 2005. and for communities and individuals, total number of countries in which In addition to the financial statements focussing support on those who are IPPF is working to 173. IPPF publishes an Annual Performance poor, marginalized socially excluded The Member Associations of IPPF Report which outlines in detail and under-served. are all autonomous and report the major activity of IPPF and their IPPF currently has 153 Member independently, therefore their alignment to the Strategic goals of the Associations (MAs). These Member accounts are not presented here. organisation. Copies of this report are Associations are working in available electronically on www.IPPF.org Girls and women have been at the heart of IPPF’s work for 60 years. 5 IPPF Financial Statements 2010 IPPF Financial Statements 2011 5 Structure, Governance and Management Governing Document for managing the affairs of the Practice have been followed, Federation as determined by the subject to any material departures IPPF was formed in 1952 and Governing Council. disclosed and explained in the incorporated in 1977 under a UK Act financial statements; of Parliament: The International Governing Council members are Planned Parenthood Federation Act elected for a period of three years and • State whether the financial 1977. The Governing Council confirm the last elections took place in 2011. statements comply with The that the Strategic Framework is in Each Regional Council elects four International Planned Parenthood alignment with the purposes stated in members to serve as Governing Federation Act 1977 and IPPF the Act. Council members as opposed to five Regulations, subject to any material members in previous years. Each departures disclosed and explained Public Benefit region also elects a Regional Executive in the financial statements; Committee to govern the affairs of the In April 2008 the Charity Commission • Prepare the financial statements on Region. Each Member Association has guidance on public benefit was a going-concern-basis unless it is a volunteer Board of Directors (elected considered and the recommended inappropriate to presume that the by the membership of the Association) self-assessment for the public benefit group and the charity will continue and sends one or more as a delegate principles undertaken. The Governing its activities; and Council confirms that the aims of the to Regional Council depending on • Safeguard the assets of IPPF and organization as stated in The membership category. hence take reasonable steps for the International Planned Parenthood The Governing Council meets twice prevention and detection of fraud Federation Act 1977 meet the per year, for three days. This Council and other irregularities. charitable purposes as outlined in the has two sub-committees; the Charities Act 2011. Specifically, IPPF is Membership Committee and the Audit The Governing Council’s members are engaged with purposes in relation to Committee which meet twice per year required to act in accordance with the ’advancement of health or the for one day at a time. The International Planned Parenthood saving of lives’ and the ’advancement Federation Act 1977, within the Following the election of a new of human rights’. framework of trust law. They are Governing Council, members receive a responsible for keeping proper As discussed on pages 7 and 8, IPPF comprehensive induction pack outlining accounting records, sufficient to has set out its mission to improve sexual their responsibilities as UK charity disclose at any time, with reasonable and reproductive health and rights for trustees. In addition, an interactive accuracy, the financial position of the millions of women, men and young induction session is held where charity at that time, and to enable the people around the world in its Strategic members discuss strategy, policies and trustees to ensure that, where any Framework. The Strategic Framework finances as well as practical elements statements of accounts are prepared by demonstrates that IPPF is engaged in concerning the role distinctions them under section 132(1) of the activities which have general public between volunteers and staff.