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Financial StatementRegistered NGO No. G39/D14/5/388
REPORT OF THE TRUSTEESThe trustees of MPYRAA now submit their report and the audited consolidated financial statements for the year ended 31 December 2007.REFERENCE AND ADMINISTRATIVE DETAILSThe Movement for the Promotion of Youths Rights and HIV/AIDS Awareness is registered with the Government of Cameroon as a Non-Governmental Organization under Law number 90/053 of 11-12-1990 and equivalent to the us 501 (c) (3) Status of N.G.Os Our Ref.No.is G39/d145/388 OF 19 February 2000.STRUCTURE, GOVERNANCE AND MANAGEMENTOrganizational structure We have Subsidiaries, country offices and linking organizations. The support of community-level responses to the HIV/AIDS epidemic has always been central to the Movement’s strategy. In the communities in which it operates, therefore, the movement secretariat’s initial aim is to identify local associations that can acts as linking organizations to support other non-governmental and community-based organizations within those communities. These linking organizations are independent of the secretariat but collaborate in community work. In some communities, however, the need for urgent action and quick results has meant that there was no time to select, support and build the type of relationship that would enable a linking organization to be truly independent from the very beginning. In this situation the movement sets up local offices, many of which will eventually become linking organizations independent of the secretariat. The movement currently has subsidiaries in Manyemen, Limbe, Mbonge, Tiko and Edea and other community offices in Kossala, Etam, Bamenda, Ikiliwindi, Mutengene, Douala and Yaoundé. The Kumba office was established in 2000 as the main policy making office of the movement. The legal status of the community offices (the term includes subsidiaries) varies depending upon the requirements of the local councils and the needs of the Movement’s programs in that community. In Yaounde, Edea, Douala and Mamfe, the offices are individual legal entities, incorporated in those communities, with boards of directors composed of various permutations of the movement’s trustees, while in the cases of Kumba, Bamenda, Buea, Tombel and Bafoussam the movement is registered as a local company or association, and the community office functions as a branch of the secretariat Governance Trustees The movement is governed by its board of trustees, the highest policy-making body within the organization. The board approves the movement’s strategic framework and is responsible for ensuring that the organization’s broad policies and strategies are in keeping with its mission. At their semi-annual meetings (which take place over two days) the trustees authorize annual work plans, funding requests and program priorities, ratify annual budgets and approve accounts. The trustees also select and appoint the movement’s Chief Executive Officer. In accordance with the memorandum and articles of association of the movement, one-third of the trustees retire annually on a rotation basis, and appointment of trustees is by resolution of the board. Trustees are chosen for their existing skills and expertise in areas relevant to the movement. The current informal induction process that accustoms new trustees to the specifics of the movement’s operations will be replaced in 2009 by enhanced, formal induction and training procedures. Audit committee The audit committee reports to the board of trustees and now comprises five members: four trustees, plus an external member whose appointment was approved by the board at its April 2006 meeting. The committee meets twice a year, and its responsibilities include the review of the statutory accounts of the Movement and its community offices, the approval of changes in accounting policies, the assessment of risk facing the movement and the systems put in place, and the consideration of findings and recommendations of both the internal and external auditors. Management The Chief Executive Officer (CEO) manages the movement on a day-to-day basis, coordinates and directs the five secretariat departments, and reports to the board of trustees at the bi - annual meetings. He leads the Executive Secretariat(es), which comprises the Chief Executive Officer, the four departmental directors and the associate director:(the secretariat’s four departments are: the policy and field programs department; the technical support department; the communications and resource mobilization department; and the finance and administration department). The Executive Secretariat meets on a weekly basis to take decisions regarding (among other things): the development and implementation of operational plans; financial, planning and other management systems; changes in organizational policies; and the creation of new staff positions. Significant decisions-such as the approval of organization-wide strategy, annual work plans and budgets – are subject to ratification by the board of trustees. Risk management The major risk to which the Movement is exposed, as identified by the trustees, have been reviewed and a risk management strategy is in place. The risk management process was developed considerably during 2006. Previously, a risk register maintained by management was instrumental in enabling the trustees to assess the risks to which the Movement was exposed. However, in late 2004 the decision was taken by the audit commitment and management to implement a revised risk management framework so as to engender a more risk-aware culture and to make risk management an integral part of the management philosophy. At the same time, management committed to establishing an internal audit function which would test systems and controls put in place to mitigate the most significant risks, and which itself would provide information which would allow the trustees to assess the risk the Movement faces. The sequential components of the revised risk management systems, and details of their development during 2006, are as follows:
Objectives and activitiesObjectivesA resume of the movement’s objects as stated in its memorandum of association are as follows:
Strategic framework 2005 – 2007 The Movement’s news strategic framework was endorsed by the board of trustees in November 2005, and set out our mission, strategy and priorities for 2006 –2007 the document’s four strategic directions refine and develop the three key goals identified in the strategic plan for 2000-2006 which the strategic framework replaces. The first three strategic directions are about what we do, while the fourth is about how we do it:
Activities In the year 2007 the Movement’s programs and other projects contributed to the achievement of the organization’s objectives for the year. Significant activities included:
The movement gives aids to identified people living with AIDS (PLWHAs). The movement also gives aids directly to programme-implementing organizations (implementing partners) in charge of orphans and street children. The Movement has a comprehensive onward granting policy and procedures manual that provides clear guidelines on the criteria for awarding aid to it’s identified orphans,street children and school drop outs to ensure that accountability and transparency is maintained. The manual includes detailed tendering processes, as well as guidelines on matters such as how to establish selection criteria, how to engage external stakeholders in the selection process, how to carry out programmatic and financial assessments, how to support and monitor grantees, and what to do when there is a need to close out the aids. Aid renewal is subject to performance, review and replanning. Achievements and performanceIncreasing the paceIn 2004, the Movement set itself an agenda to broaden and deepen its response to the epidemic,Human Rights abuse and Poverty alleviation. The resulting strategic framework set out our mission, strategy and new priorities for 2006-2009 as detailed above. Two years into this framework, we are on track to meet our targets. We increased our support to communities dramatically, by reaching more communities within our country. In certain instances, we have shown that this can be achieved in record time. In mundemba, it took less than one year to set up a local group which is now giving aid to the local communities. In less than eight months, this group has supported nearly 500 orphans and vulnerable children and provided voluntary counseling and testing to 2,500 people. Remarkably, all this was achieved against a backdrop of ongoing difficulties. Perhaps equally remarkably, the Bamenda programme received as much technical support from CEDEAV as it did from the Movement’s secretariat, making this our most promising example of collaboration to date. Kumba provided the stage for other striking developments. Five community-based HIV/AIDS groups, including the movement’s linking organization, CEDEAV came together to create a national watchdog, the Guardian, to monitor the responses to HIV and AIDS/Human Rights abuses in these communities and to play an active role in overcoming problems. There are days when the problems appear insurmountable. But by boosting the scale of our work (Strategic direction 1,) by strengthening national and regional responses (SD 2), by having an impact on global and national policy (SD 4,) the movement makes a significant difference to the lives of many around the world. Other Movement achievements in 2006-2007SD 1: Increase coverage of effective community-focused HIV/AIDS action
SD 2: Strengthen national and regional responses to HIV and AIDS
SD 3: Influence global and national policies
Trustees’ responsibilities in respect of the accountsThe law requires the trustees to prepare account for each financial year which give a true and fair view of the state of affairs of the group and movement and of the surplus or deficit of the group for that period. In preparing those accounts the trustees are required to:
Results for the yearIncome:In 2007 income totaled CFA 83 million FRS compared with 75 million FRS in 2006. Mr. Mbachu Jacob Kay a renowned businessman continued to be the movement’s largest single donor; monies are received from him in respect of the movement’s programme, and accounted for 31% of the movement’s income. Funds received from appeal letters accounted for 24% of income and supported various MPYRAA programmes across the province, while Justice Mme Mbah Acha Rose was also a significant donor, accounting for 13% of our income during the year. An increasing percentage of our funding came from the general public. In April 2002 a six-year partnership programme agreement (PPA) was agreed between the movement and the Juris consul law firm Buea which provides the movement with guaranteed strategic funding of 5 million FRS per annum for the first three years of the agreement. The agreement follows on from the PPA agreed in April 2005 which provided funding of 8 million over the period 2005 – 2007. Expenditure: Charitable expenditure increased by 26% from 36 million FRS in 2005 to 40 million in 2007. The greatest expenditure took place in Kumba, where as part of the programme funded by the Fomanka foundation 17 million FRS was disbursed in grants to the local community for the procurement of anti-retroviral drugs, orphans up keep and school needs. Of the 8 million FRS funding received from the Juris consul Law firm a significant amount was spent in Kosalla in particular benefiting the movement’s programme. Over 15 million FRS of funds were disbursed as part of the movement’s Prevention Project funded by Justice Mme Mbah Acha Rose. Reserves policy: At 31 December 2007 unrestricted funds amount to 34 million FRS (2006:26 million FRS) of this 26 million FRS was designated for spending on programme activities (2006: 19 million FRS) while 12 million FRS was held in a general fund (2006; 9 million FRS). The trustees reviewed the movement’s reserves policy at their meeting in April 2007, when it was agreed to modify the target level of the general fund. The three main aims of the trustees in respect of the movement reserves are:
Investment policy and objectivesIn line with the movement’s investment policy approved by trustees in June 2002.
Plans for future periodsIn furtherance of its mission, the movement will continue to develop and improve the strategic objectives and milestones based on the four key strategic directions contained in its 2006-2007 strategic plan. The longer-term strategic objectives developed from the strategic plan include the following.
REPORT OF THE INDEPENDENT AUDITORSWe have audited the financial statement of the Movement for the Promotion of Youths Rights and HIV/AIDS Awareness (MPYRAA) for the year ended 31 December 2007. These financial statements have been prepared under the accounting policies set out by the law.Respective responsibilities of trustees and auditors: The trustee’s responsibilities for preparing the trustee’s report and the financial statement in accordance with applicable law and Cameroon Accounting Standards (Cameroon generally accepted Accounting practice) are set out in the trustee’s report; the trustees are also the directors of MPYRAA for the purposes of company law. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and international standards on auditing. We report to you our opinion as to whether the financial statements gives a true and fair view and are properly prepared in accordance with the company Act 1985. We also report to you if, in our opinion, the trustees’ report is not consistent with the financial statements, if the movement has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding trustees’ remuneration and transactions with the movement is not disclosed. We read other information contained in the trustees’ report, and consider whether it is consistent with the audited financial statements. We consider the implications for our report if we become aware of any apparent mis-statements or material inconsistencies with the financial statements. This report has been prepared pursuant to the requirements of the movement Act 2000 and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of the movement or has been expressly authorized to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or any other purpose and we hereby expressly disclaim any and all such liability. Basis of opinion: We conducted our audit in accordance with international standard on auditing issued by the auditing practices board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes as assessment of the significant estimates and judgments made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charity’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material mis-statement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of presentation of information in the financial statements. Opinion: In our opinion:
ACCOUNTING POLICIESBasis of preparation:The financial statements have been prepared under the’ historical cost convention, and in compliance with the Company Act 1985, the Statement of Recommended Practice ‘Accounting and reporting by the donors and Cameroon accounting standards and applicable law. The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the movement and its subsidiary undertakings in its various communities. The movement has branch offices in Mundemba and Konye and the financial figures from these offices are included in the accounts. No separate SOFA has been presented for the parent movement alone as permitted by the Company Act 1985. Funds structure: The movement maintains two types of funds:
Unrestricted fund are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the movement and which are not subject to donors’ restrictions. The movement divides unrestricted funds as follows: Restricted funds: Restricted funds are funds that must be used in accordance with the specific requirements of donors. Incoming resources: Incoming resources are included in the SOFA when the movement is legally entitled to them, is reasonably certain of receipt, and the amount can be reliably measured. Incoming resources from charitable activities includes income from performance related grants; income and fees for contracts and services; and income from unrestricted grants. Voluntary income comprises public donations and is included when it is received. The movement receives funding from performance-related grants and contracts for direct and indirect programme costs, to provide sub-grants to other community and for procuring goods and services. This funding is subject to contractual restrictions which must be met through incurring qualifying expenses for particular programmes. Revenue from performance grants and contracts is recognized on a ‘completed activity’ basis, as measured by the funds utilized to carry out the activity stipulated in the agreement. This is generally equivalent to the sum of the relevant expenditure incurred during the year and any related contributed towards overhead costs. Cash received in advance of earning revenue under these grants and contract is shown on the balance sheet as deferred income. The movement also receives some unrestricted grants from local donors and foundations that are not subject to contractual restrictions. Revenue from these grants is included at the time the contract is signed by the donor. Resources expended:
Governance costs: These are the costs associated with the governance arrangements of the movement as opposed to those costs associated with fundraising or charitable activities. Governance costs include internal and external audit costs, and costs associated with constitutional or statutory requirements, for example the costs of trustees’ meetings and of preparing statutory accounts. Foreign exchange gains and losses Monetary assets and liabilities in foreign currencies are translated into francs FCA at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into FRS CFA at the rate of exchange ruling at the date of transaction or at an average monthly rate. Exchange differences are taken into account in arriving at the net movement in resources for the year. Fixed assets and depreciation: Kumba Expenditure for office equipment purchased for use in the Kumba office is capitalized at original cost. The capitalization limit is 500.000 FRS CFA. Depreciation is provided on the straight-line basis over the estimated useful lives of the assets as follows: Investments: Funds invested in treasury bonds are treated as current assets investment. Interest income, together with gains or losses in the bonds’ market valuation, are recognized in the statement of financial activities. Provisions for liability’s and charges: Provisions for liabilities and charges are provided for where these arises from a legal or constructive obligation, as a best estimate of the expenditure required to settle the present obligation at the balance sheet date. Full details of these provisions have not been disclosed in the notes, to prevent the risk of disclosure prejudicing the position of the movement in negotiations with other parties. Pensions: The movement makes defined contributions to personal pension schemes. The assets of these schemes are held separately from those of the movement in independently administered funds. In accordance with Retirement benefits, contributions are charge to the statement of financial as they are incurred. Operating leases: Rentals paid under operating leases are charged to the statement of financial activities and expensed over term of the lease.
The movement received support from many partners in 2006 and would like particularly to thank the following: The Directors of SONEL,SNEC,WESTERN UNION,FOKOBO AND SONS LTD,PETER CHI LTD, FAKO SHIP PLAZA,T-SQUARE HOLDINGS. Catholic Mission Health Centre Kumba Hope Medical Foundation Kumba FOMANKA Foundation Fonki and sons Holdings Buea Juris Consul Law Firm Buea EL-PALACIO Hotel Buea Global Fund to Fight AIDS, Tuberculosis and Malaria CARE Cameroon PLAN International The British High Commission Yaoundé Cameroon The U.S Embassy Yaoundé Cameroon The Cameroon Association for Social Marketing Justice Mme Mbah Rose Acha World Health Organisation The movement is grateful to all the donors that have supported our programmes, technical development activities and policy work in 2006. Attracting a greater number of donors, and especially security increases in strategic, flexible funding, is essential to the overall sustainability of the movement. In 2007, we will continue to collaborate with our greatly valued group of supporters to develop new areas of work that are borne in line with the overall strategy of the movement and the priorities of the wider community of people and agencies responding to HIV/AIDS and HUMAN RIGHTS ABUSES. If you wish to support the movement either personally or through an organisation that you work for, please contact Tumbu Fomanka Batholomew or visit our website: www.mpyraa.org for more information or to make a donation. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||