NOTES TO THE FINANCIAL STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2015
1 GENERAL INFORMATION
a) Legal aspects
The Drugs for Neglected Diseases initiative (DNDi) is a Swiss foundation registered in Geneva under statutes dated 17 July 2003 as a not-for-profit legal entity, with its headquarters in Geneva. DNDi is monitored by the Swiss Federal Supervisory Board for Foundations, and was granted ‘Other International Organisation’ status in 2011. DNDi is compliant with Swiss law and with Swiss GAAP FER. The annual average number of full-time positions in the reporting year, as well as in the previous year, did not exceed 250.
DNDi is exonerated from income tax from the Swiss federal income tax and from the Geneva cantonal and communal taxes for a tenyear period granted in September 2008 until 2018.
c) Situation of Regional Offices
DNDi has seven Regional Offices (RO) that help identify patients’ needs, support Heads of Disease Programmes, identify and support regional partners, and undertake regional advocacy work for DNDi. Their strategic role is defined in DNDi ’s Business Plan. Their operational contributions are defined in the context of the yearly Action Plan and budget approved by the Board of Directors of DNDi. From an operational perspective, the ROs can be characterized either as a Regional office, a Liaison Office, or a Project Support Office depending on the purpose of their mission. From a legal standpoint, DNDi can establish the RO as a simple office (e.g. branch, representation, or Liaison Office) of the DNDi Foundation or as an independent legal entity, depending on needs, local regulations, and requirements. Establishment of a DNDi RO outside Switzerland requires the authorization of the Board of Directors. Such ROs are set up according to the DNDi vision and mission, and model (in particular as a Not-for-Profit organization). DNDi is compliant with all local laws and regulations, where it operates. RO accounting is fully incorporated into DNDi accounts, following the method of full integration (i.e. all income and expenditures are incorporated into DNDi financial statements). The chart below gives an overview of the relationships established between DNDi Geneva and the different Regional Offices: As of December 2015, DNDi has established branches in Kenya (2006), Brazil (2008), India (2009), and in Penang, Malaysia. Additionally, DNDi has one Project Support Office in the Democratic Republic of Congo (2006). In June 2009, the Board approved the creation of a liaison office in Japan, under the form of a ‘specified non-profit organization’, a legal entity registered with the city of Tokyo. DNDi Japan was established in November 2009. Drugs for Neglected Diseases initiative North America, Inc., (DNDi NA), a Delaware not-for-profit corporation exempt from U.S. Federal income taxation pursuant to Section 501(c) (3) of the U.S. Internal Revenue Code, was established in February 2007. This affiliate is based in New York City, New York, USA, and operates under the Direction of the DNDi NA Board of Directors. In June 2009, the Board approved the creation of a new legal entity in Brazil, in addition to the branch in the form of an ‘Organização da Sociedade Civil de Interesse Público’, DNDi Latin America. The process was completed in October 2012. Since 2012 accounts were audited by an external auditor and by Deloitte Touche Tohmatsu as from 2014 accounts. In 2013, DNDi decided to setup a new legal entity in Argentina with the initial purpose of addressing regional fundraising needs.