Financial Statements - International Planned Parenthood Federation

IPPF Financial Statements 2009 17
Funds (including pension
fund deficit)
The surplus generated of US$9.8
million has increased IPPF’s total funds
and reserves from US$104.7 million
to US$114.5 million.
The general fund has decreased from
US$36.0 million to US$24.5 million.
The general fund represents 32.5%
of anticipated 2010 unbudgeted
expenditure which is just below the
35% target general reserve level set
by Governing Council. Designated
Reserves have increased from
US$49.8 million to US$73.8 million
due to the establishment of a Resource
Mobilisation Fund (US$6.0 million),
an increase to the translation reserve
set up to cover exchange rate
volatility (US$3.0 million) and increases
to the WHR sustainability fund
of US$12 million relating to the
receipt of the US$7.7 million legacy,
and investment gains. The WHR
sustainability fund is the largest
designated fund and is used to
support activity in the region, 3.5%
of the total fund value each year being
released to the region each year.
IPPF’s balance sheet includes
a restricted balance of US$22.9 million
in respect of funds received in advance
of the project related activities being
completed. These funds will be
used in 2010 and beyond. Any funds
showing a negative balance at the
year-end (where expenditure to date
has exceeded income) have additional
funding secured in a project
agreement and will be cleared
when funds are received in 2009
and beyond. A number of funds
had negative balances above $100k.
These comprise Eric E. Edith Bergstrom
Foundation – Promoting real options
($249k), European Commission –
Improving SRH&R for Street Kids
(Sante)($249K) and EC V2F Project
($247k), UNAIDS PLHIV (US$101k)
UNFPA Linkages project (US$104k).
These are all multi-year projects –
expenditure has been recognised for
these projects, but the related income
cannot be recognised until its receipt
in future years.
We work with
the poorest
and most
marginalized
communities
to defend their
rights and
address health
inequalities.
The closing 2009 balance sheet
contains a net pension liability
of US$8.0 million. This represents
an increase from the 2008 closing
balance of US$4.1 million. The majority
of this movement is accounted for
by an increase in scheme liabilities.
The pension liability forms part
of unrestricted funds and represents
the total net future liability arising
from the Central Office Defined
Benefit pension scheme.
The defined benefit scheme was
closed in 2007. The assumptions
used to calculate the FRS17 pension
liability are in line with typical market
practice at the time of commissioning
our FRS17 report. However, market
conditions are constantly changing,
and the FRS17 valuation can be
sensitive to changes in the underlying
assumptions. The triennial valuation,
which is used to calculate the funding
shortfall, was completed July 1 2009.
This identified a shortfall on the
scheme of US$17.2 million. An
agreement will be sought with the
pension regulator to eliminate the
funding shortfall by making payments
until 2020.The payment will be
US$1.6 million which will increase
annually by 3.4% from 2011. Since the
last triennial valuation was completed
the value of the schemes assets
has risen considerably and by end
February 2010 has increased in value
by US$4.3 million.
Trading Subsidiary
2009 was the eighth year in which
the trading subsidiary of IPPF, ICON
operated. The company primarily
engages in commodity supply
services and with the social marketing
of contraceptives in conjunction
with Member Associations. In 2009
the company made a trading loss
after tax of US$49k for the year to
31 December 2009. The loss was
driven by a one off payment occurring
in 2009 and it is expected that ICON
will make a profit in 2010. This result
includes inter-company income from
IPPF, which is eliminated from the
consolidated IPPF financial statements.