International FedeFation of Red Cross and Red Crescent Societies Appeal (MAA63003) - Southern Africa: Regional HIV and AIDS Appeal

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2 International FedeFation of Red Cross and Red Crescent Societies (MAA63003) - Southern Africa: Regional HIV and AIDS Flinancial statements for the sixteen months ended 31 December 2007 Contents Page Management's responsibility statement 2 Independent auditor's report 3-'1 Income and expenditure statement 5 Notes to the financial statements 6-8 "

3 (MAA63003) - Southern Africa: Regional HJV and AIDS Management's responsibility statement Management is responsible for the preparation and presentation of the financfal statements of the International Fcderation of Red Cross and Reel Crescent Societies ("IFRe") (MAA63003) Southern Africa: Rcgional ETV and AIDS, comprising the income and expenditure statel ent for the sbcteeu months ended 31. December 2007 and the notes to the financial statcments, which include a summary of significant accounting policies and other explanatory notes, in accordance with the basis of accounting described in note 2. Management's responsibility includes the preparation and presentation of these financial statements on the basis of accounting policies described in note 2,'for thc purpose of providing information to IFRC partners and donors that have contributed to the Southern Africa Regional I-IIY and AIDS Appcal (MAA63003), and also includes: designing, implementing and maintaining intelllal control relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting ami applying appropriate accounting policics; and making accounting estimates that are reasonable in the circumstances. Management's responsibility also includes maintaining adequate accounting records and an effective sys em of dsk management. The auditor is responsible fot" repurting on whether the financial statements are presented in accordance with the applicable financial reportingfi amework. Approval of the financial statements The financial statements of lfrc, as idcntificd in {he first paragraph, were approved hy management on 6th January 2009 and are signed on its behalf by ~ M4fP--i----- Francoise Le Goff Head, SOllthern Africa Zone I-lead, Finance Department

4 ~G ServleM lpropr mryl Um,lid Telep1'lo +27 ( KPMG Crascer'it Fox +27 (11~ as Empke,Road. ParktO'Wn, 2193 Doc&x 472 Jol'18n llsoorg F'rlva~e Bag 9. f'a lew, 2122, SCI 1 AlriCll In ntlt Independent auditor's report To the management of the International Federation of Red Cross and Red Crescent Societies We have audited the financial statements of International Federation of Red Cross and Red Crescent Socictics("IFRC') (MAA63003) - Southern Africa: Regional HIV and AIDS which comprise the income and expenditurc statement for the sixteen months ended 31 December 2007 and notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, as set out on pages 5 to 8. Management's responsibility for the financial statements Management is responsible for the preparation and presentation of these financial statements on the basis of accounting policies described in note 2, for the purpose of providing information to IFRC paliners and donors that have contributed to tbe Southern Africa Regional HIV and AIDS (MAA63003). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor's responsibility Our responsibility is to express an opinion On these'financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal contro!. An audit also indudes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, tbese financial statements are prepared, in all material respects, in accordance with the accounting policies described in the note 2 to the financial ~tatements. IG'MG SIll'oicn \Pmjlilil:rrl L1mh:!d, ACIlmIItI!ff i'lwjlq'l1l1d Un Iil SouitllJr Cgmjlllllla I!<:I. loki, rw~r fl Cif 11» IelPMG ~_ c>lln~~rdtnllnn>li4r fl~.fhbtld'hilh ~PMG I ~lo",l. $wi._1it!... KJlMG Stlnoitu ii'=u"il\,u_rnl~ It ~ 4!i1'-.Ttd AllGitOl in IGtmo t.llfi6...l1ltlflc AD/nile<! kl 2~ 01.. Il:d (!QtiI1'01 ll"ifyidi AI6'I RNIU. n "'tjnml ill SAC QfJ 1 (llihis liel ~ 0'1 mil'l1hr I 8W12iJ'l1/D1 0>11... _.~

5 Other matter' - Restriction on use and distrihution As indicated, th finandal statements have been prepared in accordance with the basis of accounting described in note 2 for the purpose of pr iding information to IFRC partners and donors that have contributed to the Southern Africa Regional HIV and AIDS (MAA63003). The financial statements and related auditor's report may not be suitable for another purpose. Our report is intended solely for IFRC partners and donors that have contributed to the Southern Africa Regional HIV and AIDS (MAA63003). KPMG Inc. er SC Smith Chaliered Accountant (SA) Registered Aud itor Director 6 January

6 (MAA63003) - So thern Africa: Regional HIV and AIDS Income and expenditure statement for the sixteen months ended 31 December 2007 Income Voluntary contributions Note 3 16 months ended 31 December 2007 CHF I 1 II Total income Operatlog expenditure Supplies ehicles and equipment Transport and storage Personnel expenditure Workshops and training Travel Information and public relations Office costs Communications Professional fees and financial charges Other general expenses Financial losses MI Programme support Operational provisions Total operating e:lpenditure ] Excess income over expenditure

7 (MAA63003) - Southern Africa: Regional HIV and AIDS Notes to the financial statements for the sixteen months ended 31 December Activities Founded in 1919, the International Federation of Red Cross and Red Crescent Societies ("IFRC") is a membership organisation comprising 186 member Red Cross and Red Crescent societies governed by a Governing Board and with management suppol1 provided by a Secretariat with more than 65 delegations strategically located to support activities around the world. The Global Alliance on HIV programme in Southern Africa ( ) is implemented by all ten National Societies in the Southern Africa Zone, coordinated by the Federation Zone office. The programme aims to quadruple the target bcneficiaries by 20 I0, but also to provide quality scrvice to 50 million people reached through a sct of evidence-based prevention strategies, 250,000 pcople living with HI V benefiting from an expanded care, treatment and support programme and 460,000 orphans and vulnerable children provided with educational, nutritional and psychosocial support. The financial statemcnts prescnted comprise the income and expenditure statement and supporting notes of all projects linked to the Southem Africa: Regional H1V and AIDS (MAA63003), hereto referred to as th~ Financial Statements. 2. Significant accounting policies 2.1 Basis ofaccounting The Income and E penditul'e statement is presented in Swiss Francs. The Income and Expenditure statement has been prepared under the historical cost convention. 2.2 Foreign currency transactions The presentational and functional currency of the IFRC is the Swiss Franc, since.operating cash flows are primarily denominated in and influenced by the Swiss Franc. The IFRC's operations are not concentrated in anyone economic environment, but appeals, including the Southern Africa HIV and AIDS (MAA63003) are always launched in Swiss Francs, and expenditure is budgeted and managed in Swiss Francs. Foreign currency transactions are translated into Swiss Francs using the month end exchange rate prevailing prior to the dates of the transactions. Exchange gains and losses resulting from the settlement of foreign currency transactions and from translation arc included under financial lossesl(gains), net in the Income and Expenditure statement 2.3 Income Income comprises contributions in cash or in-kind from donors. Earmarked cash contributions are recognised as income when a eonfinned written pledge has been received from the donor. 6

8 (MAA63003) - Southern Africa: Regional HIV and AIDS Notes to the financial statements for the sixteen months ended 31 Dec:emlHor Significant accounting policics(continued) 2.3 Income(continued) In-kind contributions of goods (comprising relief supplies) and services (in the form of staff or transport) are recognised on the date of receipt of the goods or service and are reported as equal contributions and expenses in the Income and Expenditure Statement. In-kind goods and services received in response to appeals are measured at fair value. The fair value of in-kind staff is taken as the average cost that would be incurred by the IFRC if it were to directly employ a person in a similar position. 2.4 Accounting period The financial statements are for the sixteen months from 1 September 2006 (date of commencement oftbc Southcm Africa Regional HIV and AIDS (MAA63003)) to 31 December Voluntary contributions analysis 16 months ended 31 In-Kind December Cash Personnel 2007 CHF CIIF CHI" British Red Cross Canadian Red Cross Danish Red Cross DFID Partnership grant Finnish Red Cross Icelandic Red Cross (from Icelandic Govemment) Netherlands Government New Zealand Red Cross Norwegian Red Cross Norwegian Red Cross (from Norwegian Goverrunent) ~7 550 On line donations HI Swedish Red Cross Swedish Red Cross (from Swedish Government) Other ~ 9f

9 (MAA63003) - Southern Africa: Regional HIV and AIDS Notes to the financial statements [or the sixteen months ended 31 December Programme support recovery In accordance with IfRC standard policy, a charge is made to the budget of each operation as a contribution to the costs of support for operations in the field. This support includes services essential for an operation's success such as human resources, finance; logistics, infoidlation technology and other support. 5. Operational provisions Operational provisions in the Income and Expenditure Statement represent the value of working advances made to National Societies which have not yet been reported on by the recipient National Societies. Detailed breakdowns of the expenditure incurred by the National Societies are therefore not kno wn at the balance sheet date, but are normally reported on shortly thereafter. 8

International Federation of Red Gross and Red Crescent Societies Appeal (MAA63003) - Southern Africa: Regional HIV and AIDS Appeal

". International Federation of Red Gross and Red Crescent Societies Financial statements for the year ended 31 December 2008 Contents Page Management's responsibility statement 2 Independent auditor's