Financial Statements for 2014 Executive Summary IPPF’s total income has fallen by US$10.0 million from US$136.1 million to US$126.1 million. This reduction is due to a fall in unrestricted government income of US$2.2 million, a reduction of restricted government income of US$8.0 million and reduced donations in kind of US$2.2 million offset by an increase in restricted grants from multilaterals of US$2.9 million. The total decrease is equally split between unrestricted and restricted income at US$5 million each. With the exception of Australia, all government donors have held level or increased their unrestricted funding to IPPF in the donor currency. However the strengthening of the US dollar has had a significant impact, effectively reducing US dollar unrestricted income by approximately 9% on a like for like basis compared to 2013. Total expenditure has risen from US$132.8 million to US$137.6 million. Unrestricted expenditure has risen from US$76.8 million to US$84.3 million while restricted expenditure has fallen from US$56.0 million to US$53.3 million. The increase in unrestricted expenditure is driven by an exchange loss (US$3.6 million) and the use of designated funds to provide support in a number of areas: support in South Asia for system strengthening (US$1.7 million); provision of support to Member Associations (MAs) to scale up services (US$0.9 million); development of the new strategic framework (US$0.4 million); international advocacy and supporting IPPF Vision 2020 campaign to place sexual reproductive health (SRH) and rights at the centre of the sustainable development agenda (US$0.8 million); and support for resource mobilization at a regional and central level (US$1.4 million). Restricted expenditure levels are driven by the timing of donor funded programmes, which vary on a year-byyear basis. This has resulted in an unrestricted deficit of US$4.6 million before other unrecognized gains and losses and a restricted deficit of US$6.9 million, to generate a total operating deficit of US$11.5 million. After taking into account actuarial losses on the defined benefit pension scheme the resulting net movement in funds was a reduction of US$15.1 million. The level of unrestricted income received was as forecast in the 2014 budget and the expenditure in excess of income levels was funded using approved designated funds (US$6.4 million). This resulted in a small increase in general reserves to US$24.0 million and a fall in designated reserves to US$85.9 million.   "The unrestricted funding that our major donors have provided to us over the long term has enabled the Federation’s Member Associations to build sustainable programmes of delivery and advocacy impacting positively the lives of millions of people."