The finances of the German Leprosy and Tuberculosis Relief Association (DAHW) are in a good shape. This was confirmed again by two independent institutions this year: by the audit company Solidaris and the German Institute for Social Affairs (DZI).
The auditors of Solidaris found that “the bookkeeping of 2008 and the annual balance sheet as of 31.12.2008 are in accordance with the principles of proper accounting”. The auditors have certified that our bookkeeping is ”correct and proper” and “the audit of the use of the donations gave no cause for complaints either”.
The DZI, the so-called “MOT examiner of donations”, has thoroughly scrutinised DAHW as well. As in previous years, in 2008, too, we met the stringent requirements and have been awarded the desired DZI seal of approval.
Although we passed these checks successfully, we cannot foresee an increase in income from donations. For this reason we have calculated our expenses very cautiously: we are planning tospend 10,235,680 Euro on project activities in the year 2009. On pages 16 and 17 you can see details about the financial support to our 281 relief projects.
The crisis in the worldwide financial markets shall not serve as our reason to make savings, but it has shown us how fast hopes and expectations can be dashed: the income from interest on our savings has reduced greatly and we have had to balance the reduction in income from donations by using some of our reserves for several years already. It is this precise purpose that these reserves were built up.
But in order to sustain the work of DAHW we cannot permanently rely on spending our reserves. For this reason, we have planned reductions in expenditure which shall be effective in 2009 and reduce our budget remarkably. By using part of the reserve funds over the past years we have been able to carefully consider where to make cutbacks, thus not endangering the sustainability of project work.
We will also make savings in general administration. Today we already know that several staff members will retire in the next three years. In each case we will check very carefully whether a new person is needed for a position or whether the tasks can be carried out by another within an internal restructuring.
In the past years we have frequently been asked why DAHW has been accumulating reserve funds in previous years. Now we see that this decision was prudent and demonstrated foresight. These reserves are enabling us now to react adequately to the developments of recent years without forgetting our own – social – principles for staff and patients.
DAHW has received the DZI Seal of Approval yet again
In 2008, DAHW again received the seal of approval of the German Institute for Social Affairs (DZI). DZI has strict criteria for awarding this seal: it is awarded to charitable institutions whose publicity is “accurate, unambiguous and factual”, who present their financial reports in a clear and comprehensible manner and if their financial statements are audited annually. The seal indicates to donors that they can put their trust in DAHW.
back to the Annual Report 2008
