IAS FinancesMembers’ Meeting

Kuala Lumpur, Malaysia, Tuesday, 2 July 2013

Treasurer: Anton PozniakFinance SubCommittee: Celia Christie-Samuels, Alex Muganga Muganzi

GENERAL SITUATION

IAS Core 2012 : Audit approved by KPMG, Surplus of 3K allocated to the General Reserve

AIDS 2012 : Audit approved by KPMG, surplus of $293K, allocated to the General Reserve to support the Core Activities over 2013/2014

IAS Core 2013 : Balanced with a new fundraising income of $1,4M.

IAS 2013 : Deficit of $923K vs $498K in March

AIDS 2014 : Deficit of $986K no major change since last ECwhich is lower than revolving fund allocation and acceptable at this

point

Revolving Fund For Conference Institutional Memory & Administration approved by the partners

2012 RESULT

AIDS 2012: As aproved by the EC/GC, the AIDS2012 surplus was allocated as follows:

General Reserve for future conferences & AIDS2012 follow up: $1,300,000

AIDS2014 support to Global Village, International Scholarship Fund$200,000

AIDS2014 support to maintain lower fee level for l&mi countries$300,000

AIDS2014 Revolving Fund$500,000

AIDS2012 follow up by IAS in 2013$200,000

AIDS Pioneers project$100,000

General Reserve to support Core expenses over 2013/2014: $293,000

• IAS Secretariat: as projected at the EC in March 2013, the secretariat realized a surplus of $3K allocated to the General Reserve

2012 Financial Statements approved by the IAS GC

IAS HQ 2013 Expenses:

o ForEx USD/CHF: 80% of the CHF expenses are now covered by ForEx contracts until the end of 2013

Income:

o Additional commitment since last EC $250K (KAPS)o Pending opportunities $491K (TasP/KAPS/E2)

Working on an emergency budget in case the fundraising target is not reached (deficit of at least $700K).

The alternative is, as per the IAS HQ 2013 budget guidelines approved by the Officers in September 2012 and the GC in December 2012, to reduce the staff count to reach a healthy financial situation again.

Assessment for the above will be undertaken by the Secretariat in September 2013 and actions will be taken accordingly if needed and GC will be informed.

IAS HQ 2013 projection approved by the IAS GC

IAS HQ 2013 – Expenses projectionStated in U$ 000

GOVERNANCE 573 FIXED TERM STAFF 759MEMBERSHIP 223PERMANENT STAFF 5,351EXECUTIVE 57

FUNDRAISING 77 NON-CONF TRAVEL 959COMMUNICATIONS 198 CONTRACTED SERVICES 186I/T 133

CONSULTANT FEES 360HR 59

OFFICE COSTS 991FINANCE & ADMIN 75 GOVERNANCE

339CONF SHARED SERVICES 1,460 COMMS, MKTG

273EVALUATION -SCHOLARSHIPS 102SAT / EXHIB / SPONSORS 134CONF MGMT 711CONF PROGRAMME 654CONF LOGISTICS 411CONF OFFICE COSTS 892PARTNERSHIPS 229POLICY / ADVOCACY 1,793RESEARCH PROMOTION (excl. SubG) 1,791

TOTAL EXPENSES $9,573$9,573

IAS HQ 2013 – Income projectionStated in U$ 000

March July

2013 2013

CONTRIBUTION FROM GENERAL RESERVE 6060

PAST CONFERENCE SURPLUS248 248

NON-CONF DONOR COMMITTED 200200

NON-CONF DONOR FUNDRAISING 1,400

SECRETARIAT REMAINING290P/A & RP PENDING491P/A REMAINING

339MEMBERSHIPS

500 500INTERESTS & MISC. FUNDING 144

144SUPPORTED BY CONFERENCES:

IAS 20132,246 2,246

AIDS 20141,906 1,906

IAS 2015298 298

PARTNERSHIPS224 224

RESEARCH PROMOTION (Excl. SubG) 1,3141,314

ILF CONTRIBUTION310 310

POLICY ADVOCACY CONTRIBUTION 7551,005

TOTAL INCOME$9,605 $9,575

TOTAL SURPLUS$32K $2K

IAS 2013 - Kuala Lumpur

Fundraising target of $1,6M was raised to $1,7M

As of 1 June, expected fundraising is $1,6M committed (94% of target).

The conference budget now shows a deficit of just over $900K (incl. 500K allocated to the RF).

IAS 2013 projections approved by the IAS GC

IAS 2013 – Budget SummaryStated in U$ 000

Approved Budget ProjectionMarch 2013 June 2013IAS EC IAS EC/GC

SPONSORS & DONORS 3,0132,652

COMMERCIAL SPONSORSHIP 1,025747

REGISTRATION FEES 2,1411,951

OTHER REVENUES 11155

TOTAL REVENUES $6,290 $5,405

LOGISTICS 1,3231,211

EXHIBITION & SATELLITES COSTS 158 143

SCHOLARSHIPS 487 367

PROGRAMME 597 567

AV 254 210

IAS CONFERENCE SECRETARIAT 1,4101,247

IT 421 496

COMMUNICATIONS 349 337

EVALUATION + QUALITY ASSESSMENT 83 28 RESOURCE DEVELOPMENT 198

198 REVOLVING FUND 500

500 GOVERNANCE 110

110 AUDIT / FINANCE 260

211 VARIOUS FINANCIAL COSTS & TICKS 411 481 START-UP COSTS 70

74 OTHER LOCAL COSTS 150

150 TOTAL COSTS $6,779 $6,328 TOTAL DEFICIT -$489 -$923

AIDS2014 - Melbourne Deficit of $986K

Income

o As per budget guidelines, registration income based on 7,000 full fee paying participants (vs 8,800 Budgeted for AIDS 2012).

o Host country contribution is half in Melbourne (3.5M) than in the U.S. o The budgeted income include reserves from AIDS2012 mentioned earlier

Expenses:

Overall cost reduced by 14% vs AIDS2012 budget, despite a venue rental 4x more expensive than D.C. :

o From 10 to 6 session rooms (mini session rooms)o Size of Media Center decreased o Size of GV reduced with almost 50%o Scholarship programme reduced

AIDS2014 budget approved by the IAS GC

AIDS 2014 – Budget SummaryStated in U$ 000

AIDS2010 AIDS2012 AIDS2014Audited Report Audited Report Working Budget

SPONSORS & DONORS10,170 11,000 8,078COMMERCIAL SPONSORSHIP 4,083 4,754 3,830REGISTRATION FEES 8,998 10,353 6,783OTHER REVENUES 482 478 1,345 TOTAL REVENUES $23,733 $26,585 $20,036

LOGISTICS 4,939 4,305 4,699EXHIBITION & SATELLITES COSTS 664 711 448SCHOLARSHIPS 2,369 2,051 1,545LOCAL SECRETARIAT 909 906 472 PROGRAMME 2,378 2,326 2,378PROGRAMME ACTIVITIES 862 897 718IAS CONFERENCE SECRETARIAT 3,219 4,729 3,653IT 1,428 1,383 1,018COMMUNICATIONS 1,536 1,571 836EVALUATION + QUALITY ASSESSMENT 265 209 53 RESOURCE DEVELOPMENT 765 933 736REVOLVING FUND 0 1,000 1,000GOVERNANCE 354 544 233AUDIT / FINANCE 952 670 480VARIOUS FINANCIAL COSTS & TICKS 1,962 1,216 1,650START-UP COSTS 98 255 250AV 1,032 1,282 852 TOTAL COSTS $23,733 $24,992 $21,022

o Allocation to AIDS2014 & follow up 1,300

TOTAL SURPLUS / - DEFICIT $0 $293 -$986

Revolving Fund For Conference Institutional Memory & Administration

The proposal was approved by the IAS GC

Background

The Officers have suggested a new Revolving Fund for our conferences in complement to the two existing funds with the same total amount of money that will just be divided differently. The amount is $2M (25% of the agreed ultimate target of $8M)

allocation

IAC RF $3,8M $1,4M $2.4MIAS RF $1,5M $0.6M $0.9MCIM&A RF $2.0M• TOTAL $5.3M $5.3M

This third fund will jointly serve the two conferences, for their conference secretariat, administration and institutional memory and thereby sustain the overall Secretariat.

Proposal was made to the IAC permanent partners and approved unanimously (UNAIDS, ICW, GNP+ AND ICASO) on June 8, 2013.