Act against Aids

Annual Report: Efficient project work in tough environment

The foundation closed the year with an operating loss of around CHF 300,000. A good 90 per cent of total expenses flowed into aid projects. Thanks to a high degree of professionalism and efficiency, a record increase of 471 patients was managed well. The annual loss of CHF 2.4 million is primarily due to a poor year on the stock markets.

At CHF 7.7 million, total income was again gratifying in 2022 (prior year CHF 7.9 million). Ordinary donations declined slightly to CHF 2.1 million from CHF 2.4 million the previous year. Earmarked donations were slightly lower than the previous year, down from CHF 875,000 to CHF 822,000, while donations in kind increased to around CHF 1.9 million (from CHF 1.5 million the prior year). The Swiss Agency for Cooperation and Development (SDC) contributed CHF 1.8 million in support for Newlands Clinic. From 2020 to 2023 the SDC is providing the foundation with funding totalling CHF 6.98 million. We would like to thank our donors and partners for their loyalty and support in what was a challenging year.

Efficient use of resources
Activities could be largely resumed after the pandemic, and total expenses were significantly higher than the prior year, up 21 % to CHF 8 million. CHF 7.2 million or 90.1 % of this flowed directly into projects. CHF 6.2 million (+23 %) was spent on the Clinic, CHF 388,000 (+34 %) on the Women’s Health Centre and CHF 571,000 (+19 %) on the Training Centre and research. The higher expenses of the clinic are due in particular to growth in patient numbers combined with an increase in medical staff, greater consumption of medicines, higher procurement costs owing to inflation and a greater need for food assistance. Slight increase in general expenses Administrative, fundraising and communications expenses increased to about CHF 790,000 (+5 %) and accounted for 9.9 % of total expenses. Administration expenses amounted to around CHF 474,000 (+4 %), with fundraising and communications expenses totalling around CHF 314,000 (+6 %)

Poor year on the financial markets leads to annual loss
The financial result is overshadowed by one of the worst years on the stock market in a long time. Owing to the poor financial result, current assets declined to CHF 24.8 million (-9.3 %), of which CHF 13.8 million falls to securities. Inventories of drugs remained stable. Organisational capital totalled CHF 23.8 million and designated capital CHF 18 million, as before. The HIV treatment which patients need their whole life long can thus be assured over the longer term. In the profit and loss statement, total expenses exceeded total income by around CHF 300,000. The negative development of the financial markets had an impact on the financial result, resulting in a loss before capital allocation of around CHF 2.4 million. After a withdrawal of designated capital of CHF 21,000, the annual loss amounts to just under CHF 2.4 million. The fluctuation reserves still come to CHF 1.9 million (13.8 % of the value of the security holdings).

Financial statements for Zimbabwe
The local Ruedi Lüthy Foundation organisation ensures the smooth running of Newlands Clinic, while the Ruedi Lüthy Foundation provides the necessary funding. The accounts of Ruedi Lüthy Foundation Zimbabwe, the Training Centre and the Women’s Health Centre were audited by Grant Thornton in Harare, and have been consolidated in the present financial statements.

Organisation and remuneration
The members of the Board of Trustees (see page 15) work in an honorary capacity and are elected for a term of four years; repeated re-election is permitted. They are responsible for the strategic management of the foundation and for managing the assets. The salaries and fees of the CEO and Deputy CEO totalled around CHF 93,000 including employer contributions. Of this, CHF 32,000 fell to project expenses and CHF 61,000 to general expenses. The decline in expense is due to the temporary absence of the chief executive owing to illness.

This year, 2023, is election year in Zimbabwe. The economic situation remains unstable and again it is difficult to assess how costs will develop. Once again the Newlands Clinic team will do everything in its power to keep operations going and address the new medical, economic and logistical challenges that arise. We hope that we will also be able to count on the support of our loyal donor community in the future.