Annual Report 2017

"First help the poorest". This motto of Abbé Pierre also served as the guiding principle in 1959 for the founders of Leprosy Relief when helping victims of the disease, this scourge of humanity.

With ten million sufferers at the time, leprosy was a major public health problem in poor countries. Persons affected by leprosy were rightly counted among the poorest of the poor who needed to be helped first. Not only did they suffer from a disease that slowly destroyed their bodies, they were also marginalised and banished to leprosy colonies. It was not until the mid-1980s that an effective drug became available that could be used as an instrument to reduce the number of leprosy patients from 5.3 million in 1985 to 250,000 today.

Significant positive developments have been made in recent decades. The number of people living in absolute poverty has fallen drastically. Diseases such as sleeping sickness, which used to make entire regions uninhabitable, have largely been suppressed. Today, 80 percent fewer people die from malaria than 20 years ago. Starvation catastrophes such as those in India, Bangladesh or Biafra are a thing of the past – but not all people benefit from this progress.

FAIRMED has also developed along with the success in the fight against leprosy. Although not yet eradicated, today leprosy belongs to the group of neglected tropical diseases that continue to affect the poorest of the poor. Even if our focus now extends far beyond the disease of leprosy, "First help the poorest", the motto from our roots, remains as valid as ever. It forms the foundation of our vision that no one should suffer or die from a curable disease.

The Sustainable Development Goals of the United Nations bear the motto "Leaving no one behind", as well as a crucial further phrase that states "and those who are furthest behind must be reached first". On the one hand, this shows how clearly our founders started out in the right place at the time, and how important this approach still remains today.

For almost 60 years, FAIRMED has been working where people are abandoned and have been unable to benefit from progress, and gives them top priority. Thanks to the generous support of individuals, foundations and institutions, we can make a local contribution to the realization of these global goals and decisively change the lives of many people. In the name of these people, I offer you my heartfelt thanks!

Rolf LehmannPresident of FAIRMED Foundation

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Foreword from the President

FOREWORD

3

Leprosy is still far from eradicated. India has the high-est rate of newly infected persons with the disease each year.

Main Focus Manhattan – Yaoundé – Bankim. The pitfalls of the final stretch 4 Projects Africa – Success in the fight against a mysterious tropical disease 6 Asia – Self-help for individuals with disabilities 8 FAIRMED projects in figures 10 Annual Financial Statement 2017 – Generous donations 13 Portrait FAIRMED Foundation 18 Gratitude Thank you very much 19

Contents

Imprint

Editorial staff: Rolf Lehmann, René Stäheli, Paul Tschurtschenthaler, Saskia van WijnkoopPhotos: Simon Huber, Simon B. Opladen, René Staeheli, FAIRMEDLayout: graphicarts, Bern-Liebefeld; Printed by: Gerteis AG, ZollikofenCover image: Young Baka boys in Cameroon – FAIRMED assists the indigenous community claim their rights, obtain access to health care and develop opportunities to earn money.

CONTENTS

"Leave no one behind". The path that goes from the motto proclaimed in New York to those left behind in the hinterlands of Cameroon leads over a bumpy road.With its seventeen "Sustainable Development Goals", the United Nations has developed an inspiring vision of what a better world could look like in 2030. The motto, which runs through all the development goals like a vein, reads "Leave no one behind" and expresses the desire to leave no person behind – no nations, no peo-ples and no parts of society, in an effort to reach those who are farthest back.* Between Turtle Bay, Manhat-tan and the settlements of people in remote villages in Cameroon, one of the six countries in which FAIRMED is currently active, a road must be negotiated that con-tains potholes of strategies that leave behind the aban-doned and that discriminate against them. It is a road filled with key indicators in which those left behind are statistically irrelevant or even uncounted, a road that contains inhibiting incentives as well as mismanage-ment and a lack of political will. Those left behind can only be reached if both they and their disadvantage are known, if group-specific plans exist, if resources are used purposefully and implementation is efficient. Voiceless minorities struggle against unequal and bl-unted opportunity for top spot on the list of priorities.

Data (pot)holesThe road to those left behind leads into a largely unknown area. However, identifying the needs of those left behind is a prerequisite for drawing up ef-fective plans to ensure that no one is left behind, and that development progress can be measured. Many governments do not know enough about their own po-pulations. Public funds that flow into health care dis-proportionately favour the rich members of society. On average, less than 40 percent of the health budget in Africa goes towards basic health services. Health costs

can spell financial disaster many times over for the poor, and insurance is primarily affordable to the rich. The rich benefit two to seven times more than poor regi-ons from public funds that flow into the poor sector. If the disadvantaged are not prioritised in planning, they will be completely left behind.

The economic incentive gapThe journey along the bumpy road is not only uncom-fortable, it is also expensive. Secure funding is a prere-quisite for the implementation of universal health care as a core part of sustainable development goals. In the Abuja Declaration**, the leaders of the African states committed themselves to a 15 percent budget alloca-tion to health. Today, the average is ten percent, with Cameroon finishing last at just four percent. But even in countries where appropriations to the health budget have increased, excessive fragmentation, poor distri-bution and poor management mean that those most in need do not benefit. Cameroon has more than a hund-red times the population of Geneva but has the same budget. It is understandable that budget appropriations do not primarily benefit those furthest back as long as the more easily reached are also underserved. Donors, as well as the UN and WHO, love impressive num-bers. An understanding of efficiency that holds that funds should benefit as many beneficiaries as possible penalises the "expensive" people left behind in hard-to-reach areas.

There is nothing good unless you do it (Erich Kästner)When economic and intrinsic incentives do not suffice for a "the weakest first" agenda, international organisa-tions, governments, external donors and NGOs play a crucial role. Incentive can be created, on the one hand, via the political pressure of accountability for the im-plementation of sustainability goals and, on the other,

MAIN FOCUS4

MAIN FOCUS

Manhattan – Yaoundé – Bankim. The pitfalls of the final stretch

5MAIN FOCUS

via the goal-oriented and targeted allocation of funds to countries and development organisations. The prize is group-specific monitoring, rather than spectacular numbers.

The road gets steeper each yearThere are twelve years left for the ones furthest back to catch up. The specific dimension of those left be-hind requires urgently-needed, adjusted "the weakest first" plans based on accurate, meaningful data, if pa-ragraph four of the Sustainable Development Goals Act is to be actually implemented by 2030 and the gap between those left behind and the better-off is to be closed. The obstacles to be overcome are manifold, and without strong political will and international co-hesion, progress will once again pass by those most disadvantaged. There are promising approaches in dif-ferent countries, but time is short. Every year that pas-ses without targeted action will require more effort per year if the targets are to be achieved by 2030. In 2017,

we once again made our local contribution to achieving the global goals. In the Central African Republic, Ca-meroon, Côte d'Ivoire, Nepal, Sri Lanka and India, we have improved access to health care for the poorest of the poor. We are proud of that and will continue to work tirelessly in the future.

René StäheliDirector FAIRMED

* United Nations Resolution A/RES/70/1 of 25 September 2015, Paragraph 4

** "Public financing for health in Africa: from Abuja to the SDGs", 2016.

World famous for their polyphonic singing and virtuoso dances, the Baka are nevertheless one of the most disadvantaged and oppressed communities in the world.

Most people in the Bankim district of Cameroon live in remote villages and in extreme poverty. Thanks to the Santé Bankim project, today they have access to good health care. In addition, com-plicated Buruli operations have become a rarity.

Lamu Idrissa spent his days moving through meadows and forests with cows. But one evening, the 12-year-old's eyes were uncharacteristically dull. His mother re-calls: "He immediately went to bed, and a small wound appeared on his leg." Day after day, the wound grew lar-ger. Lamu's leg grew steadily weaker until he could only crawl. Treatments by the traditional healer brought no relief. A bricklayer who happened to pass through the village gave Lamu's mother a crucial tip: "He told me Lamu's wound might be something that could be trea-ted in the district hospital in Bankim." So Lamu's family decided to bring the seriously ill boy to Bankim District Hospital, a journey of several hours. The 12-year-old was diagnosed with the neglected tropical disease Bu-

ruli, which sickens a particularly large number of child-ren under the age of 15 and whose path of infection is still completely unknown. Lamu was lucky: after nine months of antibiotics and treatment of the wound, plus intensive physical therapy, he was completely cured of Buruli. "I haven't suffered any disabilities and can move my leg and put force on it again," the now 16-year-old Lamu says.

"Only FAIRMED fights Buruli here""The poorest people live in remote villages where no road goes, where there is neither electricity nor run-ning drinking water, nor access to healthcare structu-res," says Ferdinand Mou, FAIRMED coordinator of the "Santé Bankim" project. As a result, to reach the sick and those in need of care, it's not enough to train health wor-kers who can recognise and treat illnesses. "FAIRMED is working with the communities to develop a system which patients can use to be transported by the nea-rest motorcyclist in an emergency."

PROJECTS

Africa – Success in the fight against a mysterious tropical disease

6 PROJECTSPROJECTS

Complicated operations virtually unneeded any moreTo make sure that patients who live in remote areas do not have to travel unnecessarily far, FAIRMED em-ployees first visit them at home, Mou explains. "You drive the FAIRMED motorcycle to the patient and exa-mine him. Then it's decided whether the patient needs to be transported to the hospital or he can be treated on an outpatient basis at home." Thanks to this consul-tation system, as well as education, early detection and access to medicines, the number of serious cases of Buruli's disease has declined sharply. "In the past, every year doctors from Europe would travel regularly to the hospital in Ayos to operate on seriously disfigured Bu-ruli patients. The fact that this is no longer necessary shows that our Buruli program is successful. We reach patients at an earlier stage of the disease, so most pa-tients are completely healed, and severe progressions with irreparable disabilities are rarely seen."

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Humanitarian aid and develop-ment of the health system

When people suffer from neglected tropical diseases, this is an indicator for FAIRMED that part of the lo-cal population has no access to good health services. FAIRMED's goal is to leave no one behind and to espe-cially support those individuals who are the most dis-advantaged. In Cameroon, the focus of FAIRMED's activities is on the Baka, an indigenous forest people, as well as refugees from the Central African Republic and other surrounding countries who settle in the slums of the larger Cameroonian cities. In the Ivory Coast, FAIRMED has helped communities build latrines and develop health facilities. This has reduced the incidence of diarrheal diseases in villages aided by FAIRMED. In the Central African Republic, which has suffered from armed conflict for five years, FAIRMED contribu-tes to much needed humanitarian aid and to the long-term development of the local health system.

Today, Lamu Idrissa, now 16, is healthy and makes a living tending cows. Four years ago he could only crawl.

Ferdinand Mou, coordinator of FAIRMED’s "Santé Bankim" project.

PROJECTSPROJECTS

Number of projects: 8

Project cost (CHF): 5,330,644

Focal countries with Cameroon, Ivory Coast,FAIRMED offices: Central African Republic

PROJECTS

Asia – Self-help for individuals with disabilities

8

In the Sindhupalchok district, which was largely destroyed by a devastating earthquake in 2015, FAIRMED is still active. No longer is emergency aid the focus of efforts, but rather the strengthe-ning and maintenance of the health system, espe-cially for the weakest individuals. The current poli-tical upheavals are challenging – nevertheless they foster hope that, one day, even the poorest in Ne-pal will have access to health care.

"When the earth shook two years ago, I was at home with my family, asleep. My parents and sisters ran out of the house, but I was in bed and was buried under the rubble of the collapsing house," recounts 20-year-old Muna Lama. Members of the Nepalese army exca-vated her from the rubble and carried the seriously in-jured Muna on foot to the nearest health centre, from where she was taken to a specialist clinic. There, she received intensive care and was operated on several times over a five-month period. "Today, I can sit again – but walking, lying down or fetching water at the river is very painful." Muna takes painkillers every day and is

bored because virtually the only thing she can do is sit. "I’ll be glad when I can take the iron bars out of my back soon, and I'd like to learn how to sew clothes – then I would have a job and could be more useful to the family."

Taking health seriously"FAIRMED has been active in Nepal for eleven years and is committed to helping the most vulnerable in ru-ral areas," says Nirmala Sharma, FAIRMED country coor-dinator for Nepal. "These are first and foremost people with disabilities, mothers and children." FAIRMED works tirelessly for them to provide medical care, Sharma says. "We train health workers and volunteer health workers, rebuild the destroyed health centres, offer courses for people with disabilities and lead self-help groups for people with disabilities and mothers. Success in resto-ring the necessary importance of health has been par-ticularly seen in earthquake-afflicted Sindhupalchowk district. "Since people here are still living in a state of emergency, rebuilding their homes and dealing with the loss of relatives, it's important to help them take their health seriously."

PROJECTS

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Leprosy projects, mother-child health, and reconstruction

Political earthquakeA new constitution was adopted in Nepal only two years ago, and in 2017 the newly elected local govern-ment representatives began their work. "The new sys-tem is intended to be better attuned to the needs of the local population," says Sharma. "Until the system is im-plemented, organisations such as FAIRMED will need to maintain fragile health care structures." Once this phase is over, Nepal, which has demonstrably reduced poverty among the population and which guarantees free health care for all, could successfully implement the vision of "Leaving no one behind".

Given the devastating earthquake in Nepal in 2015, the renovation of health facilities and treatment of peo-ple with disabilities are still priorities. The mother-child health project in Kapilvastu is making good progress and is making a significant contribution to reducing mater-nal and infant mortality in the district. In Sri Lanka, a new leprosy project was launched which focuses on the active case detection of leprosy sufferers in the popu-lation. The LPEP research program* has demonstra-ted that public health systems can routinely implement active case detection and provide rifampicin single-dose prophylaxis to those in contact with leprosy sufferers. In India, two of our leprosy projects have been success-fully evaluated. The project in East Godavari will be tran-sitioned to a new phase, incorporating the findings from the evaluation.

*Leprosy Post Exposure Prophylaxis

Now 20, Muna Lama was seriously injured when she was buried under the rubble of her house during heavy earthquakes. Today, she can lead a more or less normal life.

Nirmala Sharma, FAIRMED Country Coordinator in Nepal.

Number of projects: 15

Project cost (CHF): 1,490,029

Focal countries with FAIRMED offices: India, Sri Lanka, Nepal

PROJECTS

182 024

89 923

1221

354

145 464

86 247

1119

470

57 717

32 602

0

66

PROJECTS10

Number of people who benefited directly or indirectly from FAIRMED projects in 2017 through prevention, awareness-raising and improved health structures.

Number of patients who received medical treatment in 2017 through FAIRMED.

Number of patients newly infected with leprosy or other neglected tropical diseases who were treated by FAIRMED.

Africa

Number of local qualified health workers and volunteer health workers who were trained by FAIRMED.

Central AfricanRepublic

Cameroon Ivory Coast

2017 FAIRMED projects in figures

176 095

52 900

202

2777

4354

286

343

525

118 943

17 881

2354

6745

11PROJECTS

In the six countries in which FAIRMED works, locally active and salaried employees, working together with locally trained health staff, provided health services for a total of 684,597 people. 279,839 patients received medical treatment, including 5239 who were newly infected with leprosy or other neglected tropical diseases.

This has only been possible through the support of countless in-dividuals who are committed along with us. Our heartfelt thanks goes out to all of you who helped achieve this!

AsiaSri Lanka India Nepal

12 ANNUAL FINANCIAL STATEMENT

We can look back on a gratifying 2017. Although we were not able to realise the budgeted income from the sale of our house in Yaoundé by the end of the year, we are still almost within budget thanks to additional reve-nue from donations and legacies.

In 2017, we received even greater donations of medici-nes, and continue to be supported by the Luxembourg government via our friends of the Fondation Follereau Luxembourg in order to significantly improve the pre-carious health care of people in Lobaye in the Central African Republic. We also enjoy continued support from the United Nations High Commissioner for Refugees (UNHCR) to care for refugees from the Central African Republic on the other side of the border, in Cameroon. Together with the many donations from our donors, which form the basis of our revenues, as well as from foundations and funds, municipalities and cantons, we have received more funding to support our programs in the Congo Basin and the Indian subcontinent.

On the expense side, we were able to increase project allocations while reducing project support costs. Incre-ased fundraising costs are offset by lower administra-tion costs and project support costs. Despite our very conservative investment policy, we were able to rea-lise a price gain that helped us achieve this good result.

The 2017 annual financial statements were prepared in accordance with the main Swiss GAAP core FER/FER 21 accounting standard and have been thoroughly audited and certified by our auditors AudEx. Only the balance sheet, income statement and notes to the fi-nancial statement are reproduced below. The com-plete financial statements can be downloaded from our website https://www.fairmed.ch/downloads or ordered from us by telephone or email.

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ANNUAL FINANCIAL STATEMENTS

2017 – Generous donations

Use of funds 2017

Sources of funds 2017

We have been able to help 684,597 people in 2017

ANNUAL FINANCIAL STATEMENT

40 % Donations

45 % Dedicated project grants

1 % Financial income

10 % Legacies

4 % Cantons and municipalities

73 % Projects

6 % Project accompaniment

14 % Fundraising

7 % Administration expenses

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(in CHF) Notes 31.12.2017 % 31.12.2016 %

Assets Cash 3 970 3 156Postal accounts 1 375 041 613 703Banks 372 793 1 295 982

Cash equivalents 1 751 804 48.8 1 912 841 51.2Receivables· "Leprahilfe" linked account, affiliate 54 500 99 873· Other short- term receivables 147 246 105 195Prepaid expenses 58 135 146 394

Receivables 259 881 7.2 351 462 9.4 Current assets 2 011 685 56.1 2 264 302 60.6

Equipment and IT 30 55 Torbey, Yaounde property 1) 1 1

Tangible assets 31 0.0 56 0.0

Financial investments 2) 1 574 816 43.9 1 472 792 39.4

Fixed assets 1 574 847 43.9 1 472 848 39.4

Total assets 3 586 533 100.0 3 737 151 100.0

Liabilities

Liabilities · Assistance and costs 312 609 319 884 · Other short- term liabilities 5 327 41 486Prepaid income 95 525 25 500

Short-term liabilities 413 461 11.5 386 870 10.4

Dedicated funds · Nepal earthquake 0 61 122· Bankim Cameroon 0 34 174

Fund capital 0 95 296 2.5 External and fund capital 413 461 11.5 482 166 12.9

Foundation capital 500 000 500 000Corporate funds (free capital) 2 516 072 2 607 985Fluctuation funds 157 000 147 000 Organisational capital 3 173 072 88.5 3 254 985 87.1

Total Liabilities 3 586 533 100.0 3 737 151 100.0

Balance Sheet as of December 31 2017

ANNUAL FINANCIAL STATEMENT

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(in CHF) Notes 2017 % 2016 %

Donations received and other revenue Donations 3 996 327 3 815 671Dedicated project grants 3) · General 4 595 147 3 521 003· Cantons and municipalities 439 300 280 368Bequests and legacies / condolences 1 002 613 1 006 871Foreign currencies 11 351 10 500

Operating revenue 10 044 738 100.0 8 634 413 100.0

Expenses for projects Project expenses 4) 7 517 427 6 280 642Ancillary project expenses 5) 611 610 824 094 Fundraising and general advertising expenses 6) 1 435 113 1 235 089Administrative expenses 7) 750 689 859 646

Operating expenses 10 314 838 102.7 9 199 471 106.5 Operating result –270 101 –2.7 –565 058 –6.5 Financial income 115 440 65 424Financial expenses –22 548 –69 086

Financial result 92 891 0.9 –3 662 0.0

Result prior to modification of funds –177 209 –1.8 –568 720 –6.6 Use / withdrawal of funds 95 296 141 032Allocation / deposit of funds 0 –34 175 Fund result 95 296 0.9 106 857 1.2

Annual result prior to organisational capital allocation –81 913 –0.8 –461 863 –5.3 Change in fluctuation funds –10 000 1 000Allocation (-) / withdrawal (+) from corp. funds 91 913 460 863

Total allocations (-) / withdrawals (+) from funds 81 913 0.8 461 863 5.3

Annual result following allocations 0 0.0 0 0.0

Operating Statement

ANNUAL FINANCIAL STATEMENT

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Notes to the annual financial statement

General accounting principlesAccounting is conducted in accordance with the principles of Swiss GAAP core-FER / FER 21 and provides a true and accurate view of the assets, financial position and results of the FAIRMED Foundation. The operating statement is illustrated in accordance with the function of expense method, i.e. according to functional areas. The demarca-tion between project and administrative expenses is made in accordance with the ZEWO demarcation methodology.

Affiliated organisationsAll of the activities, which were previously carried out by the "Leprosy Relief Emmaus Swit-zerland" association, have been continued by the FAIRMED Foundation since 1.1.2010. As agreed, any donations and legacies received by "Leprosy Relief" are in each case trans-ferred to the FAIRMED Foundation. FAIRMED is a member of ILEP (International Federa-tion of Anti-Leprosy Associations) which has its registered office in Geneva. The primaryaim of this organisation is to coordinate global aid. However, it does not exert a con trolling influence, nor does it have any authority to give instructions. The members of ILEP are not subject to any common control or management. Essential transactions with affiliated organisations are disclosed in the annual financial statement.

Accounting and valuation principlesProvided there is no information to the contrary in the following individual balance sheet positions, the balance sheet positions are valued at market value on the balance sheet date, whereby any accrued interest is not considered to be part of the market value. Ac-counting is maintained in Swiss francs. Assets and liabilities in foreign currencies are trans-lated at the foreign exchange rates on the balance sheet date, and transactions in foreign currencies at the respective daily rate. Cash and cash equivalentsThe item includes cash and cash accounts at PostFinance and banks, as well as any short-term securities which are otherwise reported under financial investments. Accounts receivableThe receivables are valued at nominal values minus any specific allowances. Project grants are only included in the balance sheet if the grant is made formally. This item also inclu-des any surplus with respect to Leprosy Relief Emmaus Switzerland. Prepaid expensesThis position includes the assets resulting from the material and chronological delimitation of individual expense and income positions. They are valued at nominal value. Tangible assetsThis position includes furniture and fixtures and other assets, such as IT hardware and soft-ware, needed for providing services and management in Switzerland. Furniture and fixtu-res are valued at their acquisition value minus planned depreciations, whereby a useful life of four years is generally assumed. The depreciations are carried out on a declining balance basis from the book value. Individual acquisitions for less than CHF 3000 are not capita-lised. Assets are depreciated on a residual basis (pro memoria). Property abroad has been depreciated on a residual basis, as it is located in a third-world country and a reasonable market value cannot be determined.

Financial investments"Securities are booked during the year at the acquisition value. For disposals, the exchangerate differences are determined using the average purchase price and are shown in thefinancial result. To cover extraordinary risks of loss, a value fluctuation reserve of 10% ofthe market value is recorded under organisational capital." LiabilitiesThis position includes payments that have been promised but not yet paid or not yet re-quested by the beneficiary as at the balance sheet date. This position also includes other liabilities for administrative expenses and, in the event of a deficit, the "Leprahilfe" linked account for Leprosy Relief Emmaus Switzerland. It is valued at nominal value. Prepaid income This position includes the liabilities resulting from the material and chronological delimi-tation of individual expense and income positions. They are valued at nominal value. Fund capital This item includes funds from donations with a clear designated purpose. This capital re-presents a performance obligation to the donors/financial backers until it is completely used up. Organisational capitalThis position includes the funds that can be utilised in line with the purpose according to the bylaws of the FAIRMED Foundation. The surpluses from operational activities that have not been utilised are recognised in corporate funds. The fluctuation fund is always 10% of the market value of the securities investments. Principles of the cash flow statementThe cash flow statement shows the change in liquidity, divided by the factors of opera-ting activities, investment activities and financing activities. The cash flow statement is prepared in accordance with the indirect method. Principles for the calculation of changes in capital The calculation of changes in capital shows the development of each individual dedicated fund and each individual component of the freely available capital.

31.12.2017 31.12.2016

1) Tangible assets Holdings, additions, disposals and depreciations are recognised in a separate schedule of assets.

The Torbey property, which was acquired in 1997, is located in Yaoundé (Cameroon) in the "Centre-Résidentiel" district. The parcel is 1980 m2.

Acquisition value, approximate 370 000 370 000Depreciation, cumulative – 369 999 – 369 999

Book value 1 1

2) Financial investmentsThe composition of the securities is as follows: Bond and money market funds 774 447 774 375Stock funds 518 257 434 257Strategy funds 282 112 264 160 1 574 816 1 472 792

Notes about individual positions in the operating statement 31.12.2017 31.12.2016

3) Dedicated project grantsThis concerns project-related grants and donations. If the purpose of these is defined more narrowly than the general purpose of the FAIRMED Foundation, the donations are significant and they are not reused during the current operating year, they are allocated to a corresponding revenue fund.

4) Project expensesThis concerns direct payments toward the achievement of the objective of FAIRMED (by region):

India 691 888 526 342Cameroon 1 585 050 1 495 653Sri Lanka 94 413 235 585Central African Republic 3 804 646 2 647 746Ivory Coast 140 948 145 450Republic of Congo 23 650 213 110Nepal 703 728 522 243Misc. global projects (incl. external information) 473 103 494 513 7 517 427 6 280 642

5) Ancillary project expenses This concerns expenses in connection with finding, planning, preparing and monitoring projects.

India 3 353 19 134Cameroon 4 319 8 621Misc. countries and regions 61 017 32 325Staff costs for projects 692 449 554 833Other ancillary expenses 62 956 41 679

611 610 824 094

Total expenses for projects 8 129 037 7 104 736

6) Fundraising and PRStaff expenses 318 872 188 385Administrative expenses (rent, maintenance, gen. admin.) 7 686 11 810Advertising materials for fundraising 197 244 159 062Postage costs for fundraising 200 271 178 939Other advertising costs for fundraising 671 082 683 936Advertising materials for PR 176 1 890Other PR expenses for PR 39 781 11 067 1 435 113 1 235 089 7) Administrative expenses Staff expenses 479 750 537 212Administrative costs (space expenditure and administrative expenses) 270 914 322 384Depreciation 25 50

750 689 859 646

Method of calculating administrative expenses as well as fundraising and general advertising expenses Expenses are deemed to be administrative expenses, if the activity can only make an indirect contribution to the achievement of objectives or the expenses for projects. This applies almost exclusively to basic operational functions such as financial administra-tion, human resources and general management. Fundraising and general advertising expenses are assigned, in certain cases (e.g. awareness-raising campaigns), in accordance with the ZEWO methodology, in part, in line with the target groups and systematically to project and service expenses.

Nature and extent of free gifts Included in the item ‘Dedicated project contributions, general’ are donations in the formof medicines valued at USD 3 133 839 and milk powder valued at CHF 91 501. Total dona-tions in kind amount to CHF 3 194 801 (previous year: CHF 2 177 430).

Information on the compensation of the Honorary Foundation Board and remune-ration of the Executive Board As fees for specific legal services, CHF 11 887 and CHF 19 973 were paid to the Found-ation Board in the year under review. The total amount of remuneration paid to the Exe-cutive Board was CHF 474 170 (previous year: CHF 440 783).

Other information in pursuance of Article 959c of the Swiss Code of Obligations The average annual number of full-time employees is 13 persons. There is otherwise no information that is required to be disclosed.

Notes about individual positions in the balance sheet

ANNUAL FINANCIAL STATEMENT

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AudEx® Audit Expertise Consulting Investigation

Bern und Genf

AudEx AG Genf: Burgackerweg 25, CH-3047 Bremgarten-Bern Boulevard Helvétique 17, CH-1207 Genève André Bolla Mitglied EXPERTsuisse Tel. +41 31 301 42 56 Tél. +41 22 700 63 00, Fax +41 22 732 57 34

www.audex.ch / www.finanzia.ch rb 2

017

25 e

Report of the Statutory Auditor on the Limited Statutory Examination to the Board of Trustees of

Foundation FAIRMED in Bern

As statutory auditors, we have examined the financial statements (balance sheet, statement of operations, cash flow statement, statement of changes in capital and notes) of the Foundation FAIRMED for the year ended December 31, 2017. In accordance with Swiss GAAP FER 21 the information in the performance report is not subject to the audit work performed by the statutory auditor.

These financial statements are the responsibility of the Board of Trustees. Our responsibility is to perform a limited statutory examination on these financial statements. We confirm that we meet the licensing and independence requirements as stipulated by Swiss law.

We conducted our examination in accordance with the Swiss Standard on the Limited Statutory Examination. This standard requires that we plan and perform a limited statutory examination to identify material misstatements in the financial statements. A limited statutory examination consists primarily of inquiries of personnel and analytical procedures as well as detailed tests of documents of the unit as considered necessary in the circumstances. However, the testing of operational processes and the internal control system, as well as inquiries and further testing procedures to detect fraud or other legal violations, are not within the scope of this examination.

Based on our limited statutory examination, nothing has come to our attention that causes us to believe that the financial statements do not give a true and fair view of the financial position, the results of operations and the cash flows in accordance with Swiss GAAP FER and do not comply with Swiss law and the foundation’s charter and regulations.

AudEx AG

André Bolla Licensed Audit Expert, Auditor in Charge

Bern, March 29, 2018

Enclosure: Financial statements

ANNUAL FINANCIAL STATEMENT

No one should suffer or die from a curable disease. FAIRMED – formerly Leprosy Relief Emmaus Switzer-land – goes to the ends of the earth to fulfil this promise. We fight neglected tropical diseases that affect more than a billion people worldwide. The poorest of the poor in Africa and Asia are especially affected by these di-seases – and we have been helping them since 1959.

FAIRMED operates from Bern and works exclusively with local partners on site. We also reach people in re-mote areas with mobile health teams. FAIRMED has held the ZEWO seal of approval since 1963 and is also certified with the NPO Label for Management Excel-lence.

Having emerged from the association Leprosy Relief Emmaus Switzerland, FAIRMED is a foundation pursu-ant to Article 80 et seq. of the Swiss Civil Code. The foundation’s organs are the Foundation Board and the Board of Control. FAIRMED finances itself and its pro-jects through donations, bequests, as well as donations from private and institutional donors.

FAIRMED is a member of the International Federation of Anti-Leprosy Associations (ILEP), the Swiss Emmaus Association, the Neglected Tropical Disease Network (NNN), the International Disability and Development Consortium (IDDC), the Partnership for Maternal, New-born & Child Health (PMNCH), the Swiss Water Partner-ship and Medicus Mundi Switzerland. FAIRMED is a sig-natory to the London Declaration on Neglected Tropical Diseases. In addition, on April 20, 2017 FAIRMED co-founded the Swiss Alliance against Neglected Tropical Diseases SANTD and has hosted its secretariat since that time. The network is composed of representati-ves from research and development, non-governmen-tal organisations and the pharmaceutical industry. The aim of the respective members is to work together to intensify the fight against neglected tropical diseases.

Members of the Honorary Foundation Board as of 2017 The Foundation Board is the strategic governing body of FAIRMED.• Rolf Lehmann (President), advocate and notary,

Schliern bei Köniz, since 2009• Prof. Dr. Adrian B. Hehl (Vice President), PhD, cell

biologist, Zurich, since 2009• Dr. med. Richard Hehl, specialist in orthopedic

surgery and hand surgery FMH, Bern, since 2009• Dr. med. Ignazio Cassis, National Councillor,

Montagnola, since 2014 until 31.10.17• Goran Radin Lic. rer. pol., member of the Executive

Board of Baumann & Cie Banquiers, Basel• Beat Ritschard, lic. rer. pol., economist, Köniz, since

2009• Prof. Dr. h.c. Marcel Tanner, Director of Swiss TPH,

Basel, since 2014

Bern head office as of 31 December 2017The head office is responsible for planning and im-plementing projects, programs and actions at home and abroad. In 2017, it employed a staff of 17 in Bern, spread across 12.95 full-time positions

• René Stäheli, Director• Paul Tschurtschenthaler, Head of Marketing/ Fundraising• Bart Vander Plaetse, Head of Programs• Corinne Abegglen, Head of Administration and Personnel

PORTRAIT

FAIRMED Foundation

18 PORTRAIT

• to all our donors – it is only thanks to you that we can give people affected by poverty and illness access to healthcare and help them to live in dignity. Your many regular contributions are a sign of your trust in us and enable us to carry out our work in uninter-rupted manner.

• to all partners, communities, companies and foun-dations which have supported our projects either financially or in terms of content. In particular, we would like to thank the SDC, the Foundation Fol-lereau Luxembourg FFL, the Swiss Tropical and Public Health Institute, the Novartis Foundation, the Medicor Foundation, the Stanley Thomas Johnson Foundation, the Lottery Funds of the Cantons of Bern, Glarus and Thurgau and the Swisslos Fund of the Canton of Aargau, the cities of Berne and Zurich, the municipal authority of Heimberg and Ober-diessbach, the Däster-Schild Foundation, the Dr. Erwin Lauper Fondation, the Von Duhn Foundation, the Gertrud von Haller Foundation, the Hasler Son-

nenberg Foundation, the Corrado Foundation, the Rowdeldy Foundation, the Poristes Foundation, the Gebauer Foundation, the Gottlieb Naef Founda-tion, the Erna Mündle Foundation, the Bühlmann-Kühni Foundation, the Peter und Cornelia Hostettler Foundation, the Marys Mercy Foundation, the Third Millennium Foundation and the Symphasis Founda-tion – Fonds LUTTE CONTRE LA LÈPRE.

• to our partner organisations International Federation of Anti-Leprosy ILEP, Secours aux Lépreux Canada (SLC) and the Fondation Raoul Follereau (FRF).

• to our employees, partner organisations and the health ministries in the project countries, whose dedication has helped bring about the results described here.

• to all our employees, the interns and volunteers who have actively supported us in Bern.

Our warmest thanks go out to you all!

Refugees from the Central African Republic in Cameroon: FAIRMED, together with the UN High Commissioner for Refugees UNHCR, ensures health care.

GRATITUDE

Thank you very much

19GRATITUDE

A warm wax bath im-proves blood circu-lation and the flexi-bility of the joints of Makesh's hand

When Makesh was discovered by a FAIRMED employee, the joints of his hand were already bent and his fingers were numb. The 12-year-old boy was immediately transferred to the FAIRMED-supported leprosy centre in Shirpur, where he has been receiving treatment for several months now. Makesh still needs to take antibiotics for the next six months or so. After that, he’ll be com-pletely cured of leprosy. Physiotherapy will significantly restore the mobility of his hand and en-able Makesh to use it again in future with as few limitations as possible.

Leprosy is no one’s destiny

Leprosy had numbed Makesh‘s fingers, and the joints of his hand

were already bent.

Aarbergergasse 29CH-3001 BerneP.O. BoxTelephone +41 (0) 31 311 77 97info@fairmed.chwww.fairmed.ch