Read Krousar Thmey's Annual Report - Overbrook School for the Blind

Financial PartOur accounts have been audited by KPMGThe high inflation rate must be noted for the year 2008: according to official data, the rate reached22.3% between July 2007 and July 2008. This galloping inflation had consequences on KrousarThmey’s expenses, particularly in food (the price of rice doubled, for example) and in energy (theprice of petrol increased by 50%). The budget for 2008 was not planned in anticipation of such priceincreases, and the impact of these higher costs has been very significant for our NGO.In 2008, investments were important for Krousar Thmey since more than a 40% of our expenseswere allocated to fixed assets: this rate is « exceptionally high » for our NGO. The construction ofthe new school for the blind or deaf children in Phnom Penh Thmey represented 95% of theexpenses item. It was the reason why administrative costs were lower in 2008 than the yearsbefore: 2.6%, with about one percent drop in cost.In order to deal with the increase in expenses and with the financial crisis – which may have aserious impact on donations from Europe – all Krousar Thmey’s entities have boosted theirfundraising efforts by contacting private donors and requesting firm commitments. Some of theresults of these contacts have been quite positive, and we hope for significant results for the year2009.Alexia AUBELLE, financial managerManuela GENEIX, communication officer