Where did the money go?

Project locations

Contexts

Balance Sheets

Human Resources

Program expenses by country

Income

Largest Interventions In 2005, the largest countries of intervention remained Sudan, where MSF continued to provide assistance to hundreds of thousands displaced; Niger, where MSF mounted a large nutritional intervention and treated 63,000 severely malnourished children; and Democratic Republic of Congo, where violence affecting civilians continued throughout the year. MSF responses to the Tsunami and Central Asia earthquake are also ref lected, with large relief operations deployed in Indonesia and Pakistan.

Activity Highlights

In 2005, MSF aggressively developed its activities in the field of malnutrition and more than doubled the number of children treated with therapeutic feeding. MSF also continued its investment in HIV/AIDS, more than doubling the number of patients under ARV between 2004 and 2005, and furthered its commitment to treating patients with tuberculosis.

MSF pursued its commitment to assisting victims of violence, with 76% of its surgeries, 88% of its assistance to victims of sexual violence and 95% of war-trauma activities taking place in unstable contexts.

Large-scale immunisation campaigns were also conducted against measles, yellow fever, and meningitis.

Project Locations

In 2005, 63% of all MSF projects were located in Africa, followed by 23% of projects in Asia, an increase over 2004 ref lecting MSF deployment in natural disasters affecting Central and Southeast Asia in 2005. MSF closed and opened more than 25% of its projects during the year, attesting to MSF's dynamism and capacity to react to crises and develop operations according to context evolution.

Context of Interventions

In 2005, 47% of MSF projects took place in unstable settings - armed conf licts, internal instability and post-conf lict. A full 20% of MSF assistance was targeted at displaced populations.

Audited Facts and Figures

Médecins Sans Frontières (MSF) is an international, medical humanitarian organisation that is also private and not-for-profit.

MSF comprises 19 national branches in Australia, Austria, Belgium, Canada, Denmark, France, Germany, Greece, Holland, Hong Kong, Italy, Japan, Luxembourg, Norway, Spain, Sweden, Switzerland, the United Kingdom, the United States, and with an international office in Geneva.

The search for efficiency has led MSF to create specialised organisations - called satellites - in charge of specific activities such as humanitarian relief supplies, epidemiological and medical research studies, and research on humanitarian and social action.

They include: Epicentre, Etat d'Urgence Production, Fondation MSF, MSF Assistance, MSF Enterprises Limited, Médecins Sans Frontières - Etablissement d'Utilité Publique, MSF Foundation Kikin, MSF-Logistique, SCI MSF, SCI Sabin, MSF Supply and Urgence Développement Alimentaires.

As these organisations are controlled by MSF, they are included in the scope of the financial statements presented here.

The figures presented here describe MSF's finances on a combined international level. These 2005 combined international figures have been set up in accordance with MSF international accounting standards, which comply with most International Financial Reporting Standards (IFRS). The figures have been jointly audited by the accounting firms KPMG and Ernst & Young according to international auditing standards. A copy of the full 2005 financial report may be obtained from the International Office upon request.

In addition, each branch office of MSF publishes annual, audited financial statements according to its national accounting policies, legislation and auditing rules. Copies of these reports may be requested from the national offices.

Owing to the fact that the Greek office rejoined the international movement in 2005, Greece is not included in the 2004 comparative figures presented here. However, for information purposes, its total expenditures in 2004 were 5.3 million euros. Its total income was 4.5 million euros and its total balance sheet amounted to 5.3 million euros.

The figures presented here are for the 2005 calendar year. The Activity Report itself covers the period mid-2005 to mid-2006.

All amounts are in millions of euros.

NB: Figures in these tables are rounded off and this may result in slight addition differences.

Where did the money go?

Sources of income As part of MSF's effort to guarantee its independence and strengthen the organisation's link with society, we strive to maintain a high level of private income. In 2005, 86.1% of MSF's income came from private sources. More than 3.4 million individual donors and private funders worldwide made this possible. Additional public institutional agencies providing funding to MSF include among others, the governments of Belgium, Canada, Ireland, Luxembourg, The Netherlands, Norway, Spain, Sweden, Switzerland, and the United Kingdom.

Expenditures Expenditures are allocated according to the main activities performed by MSF. Operations gather programme-related expenses as well as the headquarters' support costs devoted to operations. All expenditure categories include salaries, direct costs and allocated overheads.

Permanently restricted funds may be capital funds, where the assets are required by the donors to be invested, or retained for actual use, rather than expended, or they may be the minimum compulsory level of retained earnings to be maintained by some of the sections.

Unrestricted funds are unspent non-designated donor funds expendable at the discretion of MSF's trustees in furtherance of our social mission.

Other retained earnings represent foundations' capital as well as technical accounts related to the combination process, including the conversion difference. MSF's retained earnings have been built up over the years by surpluses of income over expenses. As of the end of 2005, their available part (the unrestricted funds decreased by the conversion difference) represents 9.1 months of activity.

The purpose of maintaining retained earnings is to meet the following needs: future major emergencies for which sufficient funding cannot be obtained, and/or a sudden drop of private and/or public institutional funding, and the sustainability of longterm programmes (e.g. ARV treatment programmes), as well as the prefinancing of operations to be funded by upcoming public funding campaigns and/or by public institutional funding.

Unspent temporarily restricted funds are unspent donor-designated funds, which will be strictly spent by MSF in accordance with the donors' desires (e.g. specific countries or types of interventions) as needs arise.

Additional disclosures: Tsunami disaster Public donations received in response to the December 2004 tsunami disaster resulted in contributions totalling 111 million euros, of which 36.4 million euros were received in 2004, and the balance in 2005.

The funds received were used for tsunami-relief operations or "derestricted" with the consent of donors and spent where they are most needed within MSF's ongoing work. MSF spent a total of 24.5 million euros in 2004 and 2005 on operations in the regions affected by the tsunami - 1.7 million in 2004 and the remainder in 2005.

In total 19.7 million euros were spent in Indonesia, 4.0m in Sri Lanka and 0.8m in India and Thailand. An amount of 2.3 million euros of restricted tsunami funds remains unspent at the end of 2005 and are carried in the balance sheet within liabilities as "unspent restricted funds". The remainder of the donations received were "derestricted" or "redirected" with the consent of the donors - approximately 30 million euros of which were used to fund two other big emergencies that occurred in 2005 - the malnutrition crisis in Niger and the earthquake in Pakistan.