Audit & Communication

AC SIGMA Group

International Federation for Human Rights

17, Passage de la Main d'Or
75011 Paris

Auditor's Report on the Annual Financial Statements

Financial year ending 31 December 2021
 FIDH Financial year ended 31 December 2021

To the members of the organisation,

I. Opinion on the financial statements

In compliance with the mission entrusted to us by the International Board, we have audited the
accompanying financial statements of the International Federation for Human Rights for the period
ending 31 December 2020, as annexed to this report.

These accounts were closed on 23 June 2021 by the Executive Board of the organisation on the
basis of available elements in the evolving context of the health crisis related to Covid-19.

We certify that the financial statements are, in accordance with French accounting rules and
principles, accurate and fair, and accurately reflect the results of the operations for the period as well
as the financial situation and assets of the organisation at the end of the period.

II. Basis of the opinion

Audit Standards

We conducted our audit in accordance with French auditing standards. We consider that the material
evidence collected is substantiated and fair for the purpose of forming our opinion.

Our responsibility under the applicable standards is stated in the section "Auditor's responsibility for
the audit of the annual financial statements" of this audit report.

Independence

We conducted the audit mission within the framework of applicable professional standards of
independence, for the period from 1 January 2020 to the date of our report, and we did not carry out
any services forbidden by the code of professional conduct for external auditors.

III. Observations

In addition to the opinion stated above, attention is drawn to note 4.1 of the Appendix which sets out
the change to accounting methods relating to the application of regulation ANC 2018-06 regarding
the presentation of annual accounts.

IV. Justification of assessments

The global crisis linked to the COVID-19 pandemic created special conditions for the preparation and
audit of the accounts for this financial year. The crisis and the exceptional measures taken in the
framework of the health state of emergency have had multiple consequences for organisations,
particularly on their activity and their financing, as well as increased uncertainty for their future. Some
of these measures, such as restrictions on movement and remote working, have also affected
internal arrangements within organisations as well as the way that audits are carried out.

It is in the context of this complex and evolving situation that, with regard to articles L.823-9 and
R.823-7 of the French Commercial Code relating to the justification of our assessments, we bring to
your attention the following assessments which, in our professional opinion, were the most important
for the audit of the annual financial statements.

Allocation of grants to the relevant period:

Note 4.1 of the appendix sets out the principle of allocation of grants to the income for the relevant
period.

We have examined the validity of the methods used and we are assured of the soundness of the
information provided in the appendix.

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 FIDH Financial year ended 31 December 2021

These assessments were thus made in the context of the audit of the financial statements taken as a
whole, completed under in the conditions noted previously, and the formation of our opinion
expressed above. We do not form an opinion on isolated elements of the financial statements.

V. Audit of the financial control report and other documents addressed to members

We have also performed the specific checks required by the law, in conformity with the applicable
French code of professional conduct.

As of the date of signature of this report, we have not had access to financial management reports
and other financial documents supplied to members of the Assembly.

VI. Responsibilities of the organisation's management and governance in relation to the

annual financial statements

The Management is responsible for the preparation of the annual financial statements, ensuring an
accurate representation in accordance with accounting rules and principles applicable in France. It is
also responsible for the implementation of internal controls necessary for the preparation of the
annual financial statements free from significant anomalies, whether due to fraud or errors.

In preparing the annual financial statements, Management is required to evaluate the capacity of the
organisation to continue its operations, and to present in these accounts, if applicable, necessary
information relating to this operation as a going concern, and to apply the accounting convention of
business continuity, unless Management intends to liquidate the entity or to cease its activities.

The annual financial statement have been approved by the Executive Board.

VII. Auditor's responsibility in relation to the annual financial statements

Our responsibility is to produce a report on the annual financial statements. Our mission is to obtain
reasonable assurance that the financial statements are free of material misstatement.

Reasonable assurance corresponds to a high level of assurance. Nevertheless, it does not

guarantee that such an audit carried out in compliance with the code of professional conduct allows
for systematic assessment of all significant anomalies.

Such anomalies may arise from fraud or from errors and are considered as significant when,
considered individually or globally, they may reasonably be expected to influence financial decisions
that users of the financial statements may take based on these financial statements.

In accordance with the requirements of article L.823-10-1 of the French Commercial Code, our
mission to certify the financial statements does not guarantee financial viability or the quality of
financial management of the organisation.
In the context of an audit conducted in compliance with the French code of professional conduct, the
auditor makes her/his own professional assessment throughout this audit. In addition, the auditor:

 identifies and assesses the risk that the annual financial statements may contain significant
anomalies, whether as a result of fraud or errors, and defines and implements audit procedures
to mitigate these risks, and gathers sufficient and appropriate elements to substantiate her/his
opinion. The risk of non-detection of a significant anomaly resulting from fraud is higher than that
of a significant anomaly resulting from error, as fraud may involve collusion, forgery, wilful
omission, false statements or the circumvention of internal control;
 takes note of internal control mechanisms relevant to the audit in order to define audit
procedures appropriate to the circumstances, and not with a view to expressing an opinion on
the effectiveness of internal control;
 assesses the appropriateness of selected accounting methods and the reasonable nature of
accounting estimates made by Management, as well as information provided in the annual
financial statements;

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 FIDH Financial year ended 31 December 2021

 assesses the appropriateness of Management's application of the accounting convention on

business continuity and, according to information collected, the existence or absence of a
significant anomaly related to events or circumstances that might affect the organisation's
capacity to continue its activity. This assessment is based on information collected up to the date
of this report, with the understanding that circumstances or events arising later may put
continued operation at risk.

If the auditor identifies a material uncertainty, he/she draws the attention of readers of the audit
report to the information provided in the annual financial statements concerning this uncertainty
or, if information is not provided or is not relevant, may issue a qualified opinion, or may refuse to
certify;

 the auditor assesses the overall presentation of the annual financial statements and whether
they provide a fair representation of the underlying operations and events.

Signed in Paris,
24 June 2021

Fabrice Attoumo
Independent Auditor

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FIDH Financial year ended 31 December 2021

CORPORATION ACCOUNTS

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 FIDH Financial year ended 31 December 2021

Amounts in euros

ASSETS

Amounts in euros
31/12/2021 Depr., Amort., 31/12/2021 31/12/2020
Gross amount Provisions Net amount Net amount

Fixed assets
Intangible fixed assets 188 700 176 164 12 536 16 664
Software 188 700 176 164 12 536 16 664

Tangible fixed assets 1 296 370 1 275 112 21 259 18 921

Land 94 518 94 518 - -
Constructions 414 779 414 779 - -
Technical installations, equipment and fixtures 787 073 765 814 21 259 18 921

Financial fixed assets 47 381 - 47 381 43 776

Participating interests and related receivables 3 000 - 3 000 3 000
Other 44 381 - 44 381 40 776

TOTAL I 1 532 451 1 451 275 81 176 79 362

Current assets
Receivables 9 583 692 37 592 9 546 100 7 099 919
Rreceivables and related accounts 111 167 37 592 73 575 56 862
Other receivables 9 472 525 9 472 525 7 043 058
Short-term investment securities 125 668 - 125 668 125 044
Cash and cash equivalents 2 760 090 - 2 760 090 4 291 927
Prepayments 61 926 - 61 926 44 474

TOTAL II 12 531 377 37 592 12 493 784 11 561 364

Realisable exchange losses (III) 23 626 23 626 -

TOTAL ASSETS (I + II + III) 14 087 454 1 488 868 12 598 586 11 640 726

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 FIDH Financial year ended 31 December 2021

Amounts in euros

LIABILITIES AND EQUITY

Amounts in euros

31/12/2021 31/12/2020

Capital and reserves

Retained earnings 1 054 479 1 460 004
Net income or loss for the financial year 15 171 - 405 525

TOTAL I 1 069 649 1 054 479

Funds carried forward and designated funds

TOTAL II - -

Provisions
Provisions for liabilities 29 949 7 521
Provisions for charges 23 621 165

TOTAL III 53 570 7 686

Liabilities (was called Debts payable)

Loans and debts payable to credit institutions 97 2 836
Trade creditors and related accounts 146 458 91 887
Tax and social security payable 532 680 586 685
Other liabilities (was called Other debts payable) 1 435 965 2 289 975
Deferred income 9 360 167 7 607 013

TOTAL IV 11 475 366 10 578 395

Realisable exchange gains (V) 165

TOTAL LIABILITIES AND EQUITY (I + II + III + IV + V) 12 598 586 11 640 725

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 FIDH Financial year ended 31 December 2021

Amount in euros

INCOME STATEMENT
Amounts in euros
2021 2020

Operating income
Contributions from members and affiliates 61 056 60 446
Revenues from third-party funders 7 049 409 6 143 574
Contributions from public and operating grants 1 775 513 1 748 669
Funds from generosity of the public 128 296 36 174
Of which: donations 128 296 36 174
Designated grants 5 145 599 4 358 731
Writebacks of depreciation, provisions and transferred charges 365 197 367 251
Other income 61 19
TOTAL I 7 475 723 6 571 290

Operating costs 7 394 556 7 019 437

Purchase of goods 98 008 88 393
Other external services 3 969 199 3 477 816
Taxes, levies and similar payments 274 203 275 343
Personnel costs 2 072 146 2 126 137
Social security contributions 855 131 868 733
Depreciation 58 594 59 166
Provisions 10 099 18 722
Other current operating costs 57 176 105 127
TOTAL II 7 394 556 7 019 437
OPERATING RESULT (I - II) 81 167 - 448 147

Financial income
From other short-term investment securities 635 82 542
Writebacks of provisions 165 3 722
Excjange gains 22
TOTAL III 821 86 264

Financial charges
Depreciation, amortisation and provisions 23 621 165
Interest and similar charges 18 551 22 989
Exchange losses 11 711 12 738
TOTAL IV 53 882 35 892
RESULTAT FINANCIER (III - IV) - 53 061 50 372
RESULTAT COURANT (I - II + III - IV) 28 106 - 397 775

Extraordinary income
On operating transactions 30 583 4 152
Provisions
TOTAL V 30 583 4 152

Extraordinary charges
On operating transactions 13 570 11 902
Writebacks of provisions 29 949
TOTAL VI 43 519 11 902
EXTRAORDINARY RESULT (V - VI) - 12 936 - 7 750
Total income (I + III + V) 7 507 128 6 661 706
Total charges (II + IV + VI) 7 491 957 7 067 231
PROFIT OR LOSS 15 171 - 405 525

VOLUNTEER CONTRIBUTIONS IN KIND

Contributions in kind 46 800 11 550
Volunteering
TOTAL 46 800 11 550
CHARGES ON VOLUNTEER CONTRIBUTIONS IN KIND
Contributions in kind 46 800 11 550
Volunteers
TOTAL 46 800 11 550

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 FIDH Financial year ended 31 December 2021

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

The notes and tables below form an integral part of the financial statements for the year ended 31
December 2021.

Total assets came to 12,598,586 euros. The income statement for the year shows positive income of
15,171 euros.

The financial year covered the 12 months from 1 January to 31 December 2021.

The previous financial year had the same duration, from 1 January to 31 December 2020.

1. Presentation of FIDH and significant events during the year

1.1. Presentation

The FIDH (Fédération Internationale pour les Droits Humains) is an international NGO that defends
human rights, constituted as an organisation under the law of 1901. Since 1922, it has worked to
defend all civil, political, economic, social and cultural rights, as defined in the Universal Declaration
of Human Rights. It is composed of 192 national human rights organisations working in 117
countries. The FIDH carries out activities of documentation, lobbying, capacity-building, and assisting
civil society as well as judicial cases.
.

1.2. Significant events during the year

After a financial year marked by the health crisis linked to COVID, in 2021 FIDH returned to a level of
activity (programmes) comparable to that of previous years, enabling it to close the year with a
balanced budget.

2. Accounting principles, rules and methods

2.1. General principles

The annual accounts are prepared in accordance with the accounting principles, standards and
methods laid down by the French Generally Accepted Accounting Principles (Plan général
comptable – PCG) under Regulations ANC 2014-03 of 5 June 2014 and ANC 2018-06 of 5
December 2018 as amended by the French Accounting Standards Authority (Autorité des Normes
Comptables – ANC).

The presentation of the figures and other information is based on accounting principles that
emphasise the importance of prudence and accuracy of the accounts and govern how the items on
the balance sheet are valued and how the result of each financial year is determined:

 the going-concern principle

 separate reporting of each financial year
 consistency of accounting methods from one year to the next
 the principle of allocating charges and revenues by financial year.

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 FIDH Financial year ended 31 December 2021

The main accounting rules and methods used are explained in the various notes to the annual
accounts, each of which refers to a specific item on the balance sheet and the income statement.
The historical cost method was used for valuation of the elements set out in the accounts.

The financial statements are drawn up in euros.

2.2. Post-closure events

Information on the war in Ukraine

This event is likely to have an impact on FIDH's funding insofar as certain donors may temporarily
shift their funding towards assistance in resolving the conflict.

However, to date, FIDH is not aware of any such event that would be likely to jeopardise the
continuity of the association's operations.

3. Notes on the balance sheet

3.1. Fixed assets

Intangible and tangible fixed assets are valued at their cost of acquisition, which includes the
purchase price and the direct costs of putting them into use. Fixed assets acquired with equity are
depreciated using the straight-line method over the estimated useful life of the assets.

As exceptions to this rule,

- fixed assets at FIDH headquarters the purchase of which is financed by donors are written
off in full in the year they are acquired;

- fixed assets located in the mission areas, and the purchase of which is financed by donors,
are booked as expenses in the accounts of the mission concerned.

Security investments are valued at their nominal value. If their current value is less than their face
value they are written down by means of a provision..

Fixed assets, gross amount

Opening Increase Decrease Closing

value value
Intangible fixed assets 185.200 3.500 - 188.700
Tangible fixed assets 1.243.067 53.303 - 1.296.370
Other financial assets 43.776 3.605 - 47.381
TOTAL 1.472.043 60.408 - 1.532.451

Depreciation and amortisation

Opening Increase Decrease Closing
value value
Intangible fixed assets 168.536 7.628 - 176.164
Tangible fixed assets 1.224.145 50.966 - 414.779
Other financial assets - - - 1.275.112
TOTAL 1.392.681 58.594 - 1.451.275

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 FIDH Financial year ended 31 December 2021

3.2. Receivables and payables

Receivables and payables are recorded at their nominal value.

If necessary, a provision for loss-in-value of receivables is established to take account of the difficulty
of collecting them.

1
Receivables and payables denominated in foreign currency, with the exception of grants , are
converted into euros using the monthly average rate published by the EU. Any differences at the
end of the financial year are recorded as conversion adjustments and provisions are made for
unrealised losses.

Statement of receivables

Gross Due in 1 >1 year

amount year
Contributions from members and affiliates 111.167 111.167 -
Grants receivable 8.952.412 4.759.587 4.192.825
Other current assets and deferred charges 547.804 547.804 -
TOTAL 9.611.383 5.418.558 4.192.825

At the end of the year the provision for loss-in-value of contributions from members and affiliates
amounted to 37,592 euros.

Statement of payables
Gross Due in 0 to 1 From 1 to 5 > 5 years
amount year years
Due to credit institutions 97 97
Suppliers 146.458 146.458
Tax and social security 532.680 532.680
Other liabilities 1.435.965 1.435.962
Deferred income 9.360.169 5.952.073 3.408.096
TOTAL 10.578.395 7.170.299 3.408.096

3.3. Equity

Opening Appropriation Increase Decrease Closing

Value of Net Income Value
Retained earnings 1.460.004 (405.525) 1.054.478
Net income (405.525) 15.171 (405.525) 15.171
TOTAL 1.054.479 (405.525) (473.076) 1.069.649

3.4. Provisions

Provisions are set up if, at the end of the year, the association has a liability to a third party that is
likely or certain to involve a disbursement to the third party without expectation of equivalent
consideration from the third party.

¹ see 3.7 Foreign-currency hedging

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 FIDH Financial year ended 31 December 2021

The estimated amount of the provisions corresponds to the disbursement that the association is
likely to incur.

3.5. Investment securities

At the end of the year investment securities consisted almost exclusively of a deposit account..

3.6. Equalisation accounts:

Deferred liabilities
Deferred liabilities recorded at the end of the financial year amounted to 61,926 euros compared with
44,474 euros on 31 December 2020.

Deferred income
Deferred income amounted to 9,360,167 euros at the end of the year, corresponding to grants
received or receivable before 31 December 2021 and not yet used.

3.7. Couvertures de change :

The FIDH hedges foreign-currency risk for the main grants paid in foreign currency (USD, NOK, and
SEK).

These hedge contracts are arranged for each grant and are considered perfect hedges (matching
date and amount) for accounting purposes. Consequently, receivables denominated in foreign
currency are recorded while the currency concerned is hedged and FIDH is thus able to avoid any
exchange-rate differences on these contracts.

4. Notes to the Income Statement

4.1 Grants :

Grants include all resources resulting from fund-raising from public and private institutions.

This revenue is recorded on the income statement is based on the progress of the projects financed
and in accordance with the provisions of the agreements with funders or donors (date of eligibility of
expenditure, budget allocated and type of expenditure financed).

Cost accounting is used to track the progress of projects as this provides accurate information on
expenditure and commitments for each project compared with the contractual budget.

The method used by FIDH for its financial statements is described below:

- Income statement: amounts recorded as expenses incurred for missions match those
recorded as revenue, which means there is no impact on the income statement since they
are expenses incurred for missions that are entirely financed by funders or donors. Income
for the corresponding operating expenses is recorded on the basis of FIDH needs for the
period and in accordance with contractual financing conditions.
- Balance sheet: grants that have been awarded but not paid are recorded as receivables.
Deferred income recorded as a liability corresponds to the share of income for missions that
have yet to be implemented and future revenue, in accordance with the duration of the
underlying contracts.

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 FIDH Financial year ended 31 December 2021

Donations

These correspond to payments from donors to FIDH and 87,730 in proceeds from the 'Liberté et
solidarité' investment fund (SICAV) for 2021.

Thus, starting in financial year 2021, the income received from this SICAV is reclassified as
donations in order to correspond to its characterization under French law. The impact of this
reclassification compared to 2020 can be summarised as follows

Amounts in euros
2020 2020
2021
restated published

Operating income
Donations 128 296 118 716 36 174

Financial income
From other short-term
635 - 82 542
investment securities
SURPLUS OR DEFICIT (-) 15 171 - 405 525 - 405 525

Members contributions:
FIDH books contributions from its members when those contributions are called up.

Transfers of operating charges:

These correspond to the portion of operating expenses covered by financial contributions.

4.2 Financial net income:

This item primarily reflects the foreign-exchange impacts relating to the year's expenses, given that
foreign-currency denominated income is hedged.

4.3 Donations in kind:

In 2021, FIDH benefitted from in-kind donations in legal services, interpreting, administrative and on-
site work free of charge.

Occasionally, FIDH also receives benefits in kind from its members. These benefits are not
subjected to tracking (due to their nature and quantum), and are therefore not assigned a value.

5. Autres information

5.1. Number of employees

The number of the organisation’s paid staff came to 47 (full-time equivalent) in 2021, including 9 on
fixed-term contracts
.

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 FIDH Financial year ended 31 December 2021

5.2. Remuneration

In 2021, remuneration and benefits in kind received by the 3 most senior managers, voluntary and
salaried, came to 201,947 euros.

5.3. External auditor’s fees

The external auditor’s fees during the year including tax amounted to 21,000 euros, including 8,000
euros for advisory and other due diligence related services directly linked to the legal examination of
the accounts.

5.4. Net operating result and exceptional result

Items covering normal activities, including those that were for exceptional amounts or which occurred
with exceptional frequency, are included in net operating income. Only items that do not correspond
to ordinary operations have been recognized under exceptional income.

6. Off-balance sheet liabilities and transactions

6.1. Liabilities relating to retirement benefits

The association has no provision in its accounts for its employees' retirement benefits or for
supplementary pensions. The corresponding charge is recorded in the same financial year in which
the benefit is actually paid.

The rights acquired by the staff as a whole to retirement benefits have not been neither valued and
are not covered by provisions, as the association's employees are young and recently recruited.
.

6.2. Other commitments made or received

With the exception of the funds committed by FIDH and received from its donors to carry out and
finance some programmes or missions that are subject to specific targeted funding, FIDH neither
made nor received any commitments: all sums received for its operations are always awarded
unconditionally.

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 FIDH Financial year ended 31 December 2021

7. Grant monitoring statements

7.1. Revenues

Grant remaining
Grants to be Amount of grant
Funder to be used at
used (1) used in 2021 (2)
31/12/21
Agence Française de Développement 2 835 798 1 573 850 1 261 948
Embassy of Switzerland 3 393 3 393
Bread for the World 506 093 109 328 396 765
Carrefour 30 000 30 000
European Commission 4 324 377 1 946 682 2 377 694
DEVCO 44 833 23 000 21 833
FIDDH 36 000 18 000 18 000
Fondation de France 154 996 37 496 117 500
Fondation Nicolas Puech 80 000 40 000 40 000
Freedom Fund 32 914 32 914
Freedom House 8 829 5 631 3 198
FRIO 33 000 726 32 274
Front Line 7 500 835 6 665
Irish Aid 831 682 181 314 650 367
Ministry of Foreign Affairs - France 160 000 159 340 660
Ministry of Foreign Affairs - Netherlands 601 574 321 017 280 557
City of Paris 30 000 30 000
Anonymous foundation 1 381 182 245 634 135 548
New Venture Fund - Sage 74 206 39 180 35 027
OAK Foundation 386 126 257 245 128 881
CLUA 32 933 26 869 6 064
Francophonie 32 000 22 862 9 138
Open Society Foundations 478 863 194 273 284 590
Oxfam 5 450 5 450
Anonymous Foundation 2 197 990 80 351 117 639
Pan American Development Fund - Nicaragua 166 487 82 379 84 108
Swedish International Development Agency 4 805 055 1 456 735 3 348 320
Total 16 281 281 6 921 112 9 360 168
(1)
Remaining grants to be used at the end of 2020 plus contracts signed in 2021
(2)
Deductions made from unused funds to be repaid

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 FIDH Financial year ended 31 December 2021

7.2. Receivables

Revenue to Revenue to
Funder receive at Increase Decrease receive at
31/12/2020 31/12/2021
Agence Française de Développement 1 233 106 543 485 772 415 1 004 176
Embassy of Germany 1 291 1 291
Embassy of Switzerland 80 80
Bread for the World 519 523 10 032 169 683 359 872
Carrefour - 30 000 30 000 -
European Commission 4 075 866 1 313 610 2 012 130 3 377 346
FRIO - 33 000 26 400 6 600
FIDDH 29 735 29 735
Fondation de France 50 000 30 000 40 000 40 000
Delmares Hamoud Foundation 15 000 35 000 35 000 15 000
N. Puech Foundation 10 000 80 000 10 000 80 000
Freedom House OBS - 8 829 8 829 -
Irish Aid - 720 000 220 000 500 000
Ministry of Foreign Affairs - Canada 441 441
Ministry of Foreign Affairs - France - 160 000 160 000 -
Ministry of Foreign Affairs - the Netherlands 299 131 239 231 59 900
City of Paris - 30 000 30 000 -
Anonymous foundation 1 60 459 167 620 228 079 0
New Venture Fund 32 727 32 727 0
Oak Foundation 281 925 281 917 8
Open Society Foundations 55 170 422 333 475 103 2 400
Pan American Development Fund - Nicaragua 33 943 56 628 29 454 61 117
Anonymous Foundation 2 - 132 983 66 857 66 126
Swedish International Development Agency - 4 805 055 1 456 735 3 348 320
Total 6 698 397 8 578 574 6 324 559 8 952 412

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