I am pleased to submit the annual report of the Treasurer of the International Union Against Tuberculosis and Lung Disease (The Union) for the fiscal year ended 31 December 2017.
The Union in 2017 continued to focus its efforts in the core areas of its mission. It conducted more than 30 projects on TB, tobacco, HIV, operational research and NCDs. It organised more than 50 high level technical, management and operational research courses. These courses took place in 28 countries worldwide and hundreds of public health professionals and doctors were trained. Three region conferences were organised in addition to the 48th Union World Conference on Lung Health, which took place in Guadalajara, Mexico. Those conferences brought together thousands of technical experts and doctors from around the world.
2017 was a challenging year for The Union as donors, while continuing to fund technical activities, reduced funding towards operational support of the organisation. This has resulted in the organisation recording a net loss for the year 2017. The Union will pursue all measures in line with the strategic plan 2015-2020 voted by the general assembly in 2014 to ensure the financial sustainability of the organisation. These measures will seek to ensure that the organisation functions more efficiently, satisfies the requirements of our donors and our banks, and improves the financial health indicators of The Union.
The organisation needs to continue its efforts to diversify its funding and increase substantially its unrestricted revenue. It will continue to invest in lung health through the Union World Conference, develop courses with a high level of expertise that The Union has acquired through almost one hundred years of work on TB and lung health, and significantly increase the number of its members in the coming years.
To secure its competitiveness, The Union will continue to invest in information technology, human resources and fundraising, and will further develop its field offices. The organisation intends to strengthen its relationships with existing donors and bring in new partners and new projects. All of these activities are intended to ensure the prudent management of The Union’s financial resources and meet the commitment outlined in its strategic plan.
Fiscal 2017 Highlights
- Total net result for the year 2017 was a deficit of 1.318 million euros compared to a surplus of 0.349 million euros in 2016.
- Total revenue was 51.470 million euros compared to 51.776 million euros in 2016.
- Total expenditure was 52.789 million euros compared to 51.426 million euros in 2016.
- Revenue from grants, gifts and operating grants amounted to 39.5 million euros compared to 42.8 million euros in 2016.
The key to The Union’s success and to maintaining a leadership position in global health will be a keen focus on our areas of strength. We will need to adjust budgets prudently. It is imperative that The Union focuses on those areas in which it has expertise and resources so that it continues to provide its beneficiaries with high-quality products.
With the breadth of resources entrusted to The Union by donors, government agencies, members and other supporters, the need for prudent fiscal oversight is great. Working closely with our Board of Directors and our auditors, we continue to review and improve our financial policies, procedures and practices.
This report describes the financial position of The Union. The document on the following pages consists of the audited financial statements for Fiscal Year 2017 audited by KPMG.
The audited financial statements present a snapshot of The Union’s entire resources and obligations at the close of the fiscal year. A complete Audit Report, including detailed comments and notes to supplement the Balance Sheet and the Income and Expenditure Accounts, is available upon request. We have presented the accounts in euros and US dollars in order to facilitate comparison of accounts.
The financial statements and the accompanying notes of The Union include all funds and accounts for which the Board of Directors has responsibility. These statements illustrate The Union’s formal financial position presented in accordance with generally accepted accounting principles.
The auditor, KPMG, provides an independent opinion regarding the fair presentation in the financial statements of The Union’s financial position. Their opinion is attached to this report. Their examination was made in accordance with generally accepted auditing standards and included a review of the system of internal
accounting controls to the extent they considered necessary to determine the audit procedures required to support their opinion.
I would like to thank you, the members of The Union, and our donor agencies for your confidence and continued support of The Union.