Modest surplus in 2004

In 2004, the youth wing of The Danish Social-Liberal Party (RU) donated 9,158 DKK corresponding to 1 percent of the organization's revenues to MS. RU chose to MS as recipient of the donation because they liked MS's approach to development work, and because they were frustrated about the drastic government cut backs in development aid.

IN 2004, MS, the Danish Association for International Co-operation, had a turnover of 206,9 million DKK and ended up with a surplus of 21,000 DKK. The goal for 2004 was a balance between revenues and expenses, which was thus reached.

The main MS activities are the MS in the South country programs, which in 2004 were granted a total of 133 million DKK. This was a cutback in funds of approximate 5 million DKK compared to 2003.

Of the 133 million DKK, 121,5 million were spent. That we spent less than the allotted amount was due to the fact that we in 2004 had fewer development workers placed in 2004 than budgeted for.

The reason for this is that we are restructuring our work in the South because of cutbacks; concurrently, the evaluation of MS, carried out by the Ministry of Foreign Affairs of Denmark, has meant that we have drawn up a new strategic plan. This is why we have been cautious about employing new development workers.

Smaller staff

Generally speaking, cutbacks have meant extensive organizational and staff changes in MS. At the end of 2003, the secretariat in Denmark gave employment to what corresponded to 94 full-time staff; the corresponding number for 2004 has been 70.

At the end of 2000, the number of staff in the country programs was 303, not counting development workers, a number that had fallen to 206 at the end of 2004.

In 2003, development workers constituted 145 fulltime positions; in 2004 the number was 148. Appropriation of funds to MS from the Ministry of Foreign Affairs of Denmark for, among other things, administration, was reduced by almost 2,9 million DKK from 2003 to 2004.

This made it necessary to shut down the Århus office in the early summer of 2004, and a large number of employees were laid off. The MS office in Lesotho also closed in 2004, but this was the result of a decision taken in 2002 to phase out activities in Lesotho and Swaziland.

MS-Travels deficit

The returns for MS-Travels are 1 million DKK less than in 2003. This is unsatisfactory, but to be expected, primarily because of the restructuring in connection with the relocation of MS-Travels in the wake of the closing of the Århus office.

MS-Travels operations have been reorganized, starting in 2005, and there is an initial 200,000 DKK deficit for this year. 85 percent of MS activities in 2004 were financed through grants from the Ministry of Foreign Affairs. The corresponding number for 2003 was 86 percent.

It is our goal to, in the years to come, increase the part of the funding that does not come from the Ministry of Foreign Affairs of Denmark. In 2005, we are expecting a surplus of 400,000 DKK, and it is our goal that our net capital will grow by 10 percent a year, starting in 2005.

At the end of 2004, our net capital was approximately 3,5 million DKK.