FINANCIAL REPORT 2010

MAIN CONCLUSIONS
Financial balance
The result of the annual accounts was 412,781.80, i.e. 11,582.28 more than in 2009, a year in which we returned to a situation of financial equilibrium. In 2010, therefore, we continued our financial management policy, which enabled us to maintain that balance.

Budget
The organisation's overall budget fell slightly, with substantial cost-cutting having a positive impact on the accounting results. Part of this reduction comes from the completion of projects developed following the Tsunami in 2004. We also provided less substantial financial support to partner organisations. Generally speaking, the costs generated by the various services were also cut.

FINANCIAL TRANSPARENCY
We pay great attention to the proper management of the funds entrusted to us. All of the association's accounts are audited and certified by the firm of Bossaert, Moreau, Saman SPRL. The 2010 annual accounts were approved by our General Assembly on 24 June 2011. Moreover, the expenditure incurred in implementing our projects is subject to regular specific audits by our donors. Expenditure is only committed after having followed strict internal procedures. Thanks to these internal and external control mechanisms, we are able to ensure that the resources placed at our disposal are optimally managed.

Right to information
Handicap International is an active member of the Association pour une Ethique dans la Rcolte de Fonds (AERF - Association for Ethics in Fundraising) and has signed up to the Code of Ethics of the AERF (www.vef-aerf.be) which comprises a right to information. This annual report provides you with the main financial information. You also have the right to ask us for further information: G. TURINE / VU - HANDICAP INTERNATIONAL
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a summary of the cost accounting; notes on what the organisation understands by utilisation of cost centres, particularly for fundraising; the auditor's report; pay ratios (ratio between the lowest and highest gross salaries); amortization table.

You may request these documents simply by phoning 02/280 1601 or sending an e-mail to the address donateurs@handicap.be, or consult them at the head office of Handicap International, rue de Spa 67, 1000 Brussels. You can also find information about the charter of Handicap International or our Board of Directors on our Internet site: www.handicapinternational.be

BALANCE SHEET
ASSETS Intangible fixed assets Tangible fixed assets Buildings and facilities Furniture and equipment Other financial investments Total fixed assets 2010
133 271.184 236.084 35.100 59.176 330.493

2009
276 208.008 190.646 17.362 57.579 265.863

LIABILITIES Capital and reserves of the organisation Result for the financial year Total capital

2010

2009

2.434.520 421.782 2.847.302

2.033.320 401.200 2.434.520

Receivables 2.435.116 Operating receivables 195.695 Accrued income 0 Donors 2.132.091 Other receivables 107.330 Stock 9.966 Cash and cash equivalents 4.384.385 Shares 283.197 Banks 3.799.051 Savings banks 282.337 Internal transfers 19.800 Accrued income and deferred charges 173.029 Total current assets 7.002.495

2.991.429 28.901 0 2.770.989 191.538 10.024 2.541.013 80.869 2.150.043 295.615 14.486 260.319 5.802.784

Provisions for charges Provisions for liabilities Provisions for lawsuits Total provisions

0 864.335 0 864.335

150 000.00 361.674 900 512.574

Long-term debt Short-term debt Donors Suppliers Tax and social security liabilities Accrued charges and deferred income Total debt

0 1.764.870 1.034.432 585.368 145.070 1.856.481 3.621.351

0 2.942.485 1.345.710 1.272.898 323.877 179.068 3.121.553

TOTAL ASSETS

7.332.988

6.068.647

TOTAL LIABILITIES

7.332.988

6.068.647

Financial security
This balance sheet shows that Handicap International has a sound cash-flow position. The organisation is capable of paying its shortterm debts. As in previous years, Handicap International sought to improve its solvency. In future years, the organisation will continue its efforts to further increase its reserves in order to be more independent from a financial viewpoint. Our aim is to hold three months of operating costs, which corresponds to the ability to finance onequarter of Handicap International's annual budget from our own funds.

Spend by theme
Support to associations: 10 % Socio-economic integration: 1 % Road safety: 7 %

Community-based rehabilitation: 24 %

Inclusive education: 3 % Maternal and child health: 8 %

Provisions
In 2010, we set aside an additional 351,761 in provisions. By doing this, we are taking into account the risks associated with an amendment of European Union regulation, which provides that payment of taxes in countries where we operate are not considered eligible costs. By increasing these provisions, we are also protecting ourselves against the eventuality of a large donor not granting us expected funds.
Physical rehabilitation: 31 %

Actions to combat mines and cluster munitions: 16 %

EXPENDITURES AND INCOMES

EXPENDITURES Programme realisation Programme implementation Investments Materials and consumables Other external expenses and costs Taxes Personnel costs Partnerships and other expenses Various implementation expenses Technical support Programme management Specialised services Lobbying and Education Lobbying Education Fundraising Appeal and management of donations and sponsorship Communication & events General services Charges 2010
15 488 266 13 666 321 1 050 552 624 096 4 142 311 52 034 5 968 877 1 402 452 425 999 1 821 945 893 546 928 399 809 188 634 045 175 142 1 784 913 1 354 801 430 111 616 857 411 840

2009
15 697 881 14 082 549 1 186 891 528 881 4 076 548 52 086 5 583 439 2 356 822 297 882 1 615 332 751 857 863 475 878 369 756 444 121 925 2 076 851 1 633 551 443 300 532 239 393 476

INCOMES Public financing International organisation European Union United Nations & World Bank National organisations DGD (Action plan) Belgian cooperation & others Within the European Union Outside of the European Union Private financing Self-funding Fundraising Legacies & inheritances Sales & services provisions Sponsoring Others (Consortium 1212) Other operating income Subsidies Costs billable to third parties Other income Finacial resources Financial income Effect of exchange rate changes Exceptional resources

2010
13 007 276 4 039 819 3 769 691 270 128 8 967 457 4 842 930 1 028 829 2 718 442 377 256 863 509 5 207 334 4 067 355 426 954 60 26 510 686 455 200 242 68 908 36 446 94 888 169 211 14 593 154 617 76 273

2009
13 200 846 3 648 049 3 439 518 208 531 9 552 797 4 514 000 1 296 642 3 103 338 638 817 1 048 866 5 373 699 3 748 708 571 142 1 032 15 250 1 037 568 110 231 41 673 14 486 54 072 161 440 51 185 110 255 84 933

TOTAL EXPENDITURES

19 111 063

19 578 815

TOTAL RECEIPTS RESULT

19 523 845 412 782

19 980 015 401 200

Result
The result after setting aside provisions is 412,782. This positive result is due to various factors. First of all, the net income derived from fundraising from the general public increased due to fundraising becoming less expensive and an increase in the funds raised. Another major factor which influenced the result is the limitation of salary costs at the head office of Handicap International. Finally, the support from our institutional donors both public and private - also contributed to this positive result.

Income
The total amount of income was 19,523,845. The main sources of income can be broken down into three categories:
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Public funding: these funds are of public origin, such as from the European Union or the Belgian Directorate-General for Development (DGD). Private funding: e.g. resources from foundations or large companies. Income from fundraising: this income is of private origin, e.g. letters appealing for donations, events such as Solidanza, sponsorship, etc.

Implementation of programmes
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The amount of 15,488,266, or 82% of total spend, went directly to implementing our programmes. About 80% of that amount is devoted to development projects, and the remaining 20% to emergency aid.

Handicap International is 67% financed by public institutional donors. Private loans and income from fundraising represent 33% of the organisation's funding.

HANDICAP INTERNATIONAL

ANNUAL REPORT 2010

EMERGENCY ACTIONS SUPPORTED BY CONSORTIUM 1212: HAITI AND PAKISTAN

Haiti
Net income in 2010: 2,506,073 Income from Consortium 1212: 1,908,132 Total spend in 2010: 1,275,362 To spend in 2011: 1,230,711

This report has already described in detail the actions to which the resources available were devoted. After the earthquake in January 2010, our teams rapidly set up physiotherapy treatment projects. Handicap International will continue to work in Haiti in years to come. Besides physical rehabilitation projects, the organisation will work in the fields of socioeconomic reintegration and road safety.

Pakistan
Net income in 2010: 340,404 Income from Consortium 1212: 326,852 Total spend in 2010: 18,500 To spend in 2011: 321,904 In July and in August 2010, Pakistan was hit hard by serious flooding. The human cost was high: 20 million people were affected. With the means at its disposal, the Handicap International Federation provided parcels of primary necessities, drinking water and information centres for people with disabilities, as well as temporary shelters for the most vulnerable families. Handicap International will continue its actions in Pakistan in 2011.

www.1212.be

DONORS

ORGANISMES PUBLICS INTERNATIONAUX European Union EuropeAid Cooperation Office Humanitarian Aid Department of the European Commission (ECHO) United Nation United Nations Childrens Fund (UNICEF) United Nations Development Programme (UNDP) Others World Bank

National public donors outside the European Union Australian Agency for International Development (AusAid) Cambodian Ministry of Social Affairs (MOSVY) Canadian International Development Agency (CIDA) Canadian Embassy in China (Canada Fund) General Directorate of Mine Action (GDMA) Japan Embassy in Cambodia Ministry of Foreign Affairs of Norway Swiss Agency for Development and Cooperation (Cosude) United States Agency for International Development (USAid)

OTHER SECTIONS OF HANDICAP INTERNATIONAL Handicap International Luxembourg contributed financially to support some projects namely: Inclusion of people with disabilities in Potosi province, Bolivia Together to act in favour of people with disabilities in Burundi Support to associations for people with disabilities network in Burundi Happy child prevention project in Cambodia Physical rehabilitation centers in Takeo and Siem Reap, Cambodia Improving rehabilitation services and development of prevention activities in Chamdo, A.R. Tibet, China Capacity building and implementation of advocacy activities from associations of people with disabilities in Colombia Community-based rehabilitation in Cuba Support to KORD Kurdish Organisation for the Rehabilitation of the Disabled, Iraq Prevention, early detection and intervention for children with disabilities or at risk, Savannakhet, Lao PDR. Implementation of two spinal cord units in North Vietnam Handicap International France contributed financially to support the Mine action project against landmines and explosive remnants of war in D.R. Congo Handicap International Germany contributed financially to support the action implemented after the earthquake in Sichuan, China.

NATIONAL PUBLIC DONORS General Direction to Development of Belgium (DGD) Budget line Programme and Emergency Aid and short term rehabilitation Ministry of Foreign Affairs of Belgium Budget line Conflict Prevention National public donors inside the European Union Austrian Development Agency (ADA) Belgian Development Agency (CTB) Brussels Capital Region (Belgium) City of Luxembourg City of Waterloo Department for International Develoment of United Kingdom (DFID) Dutch Embassy in Republic of Korea Dutch Ministry of Foreign Affairs (BUZA) French Embassy in China French Ministry of Foreign and European Affairs - The Crisis Center Government of Flanders (Belgium) Luxembourg Ministry of Foreign Affairs Ministry of Foreign Affairs of Finland (FINNIDA) Ministry of Foreign Affairs of Germany Province of Limburg (Belgium) Spanish Agency for Development International Cooperation (AECID) Swedish International Development Cooperation Agency (SIDA) Wallonie Bruxelles International (WBI) (Belgium) PRIVATE DONORS (NGO AND FOUNDATIONS) Amicale des Francophones au Vietnam (AFV) Big Lottery Fund (BIG) British Business Group in Vietnam (BBGV) Canadian Autoworkers Union (CAW) Children for a Better World Cluster Munition Coalition (CMC) Doctors Without Borders French section Dr. Gustav Krau Krankenhaus Foundation Eden Foundation EDF China Global Road Safety Partnership (GRSP) Half Marathon Committee International Campaign to Ban Landmines (ICBL) John Hopkins Bloomberg School of Public Health Lord Michelham of Hellingly Foundation Karl Storz Company Lord Michelham of Hellingly Foundation Martin Iversen Olympus KeyMed Partnerships for Community Development (PCD) Rotary Club Kowloon Sanofi Aventis Trust Foundation