CARE USA's financial activities are significantly driven by the state of poverty in the world. Our mission demands that we go where we are most needed. As a result, our expenses can vary greatly from year to year as those we serve face changing conditions.
For example, in fiscal year 2012, CARE’s response to the hunger crisis caused by droughts in Africa increased our food and emergency program spending on the continent by $23 million compared to the previous fiscal year. CARE USA's program volume in Africa showed an overall increase of $40 million or 16 percent compared to fiscal year 2011. CARE USA's programs were spread across the globe with 56 percent in Africa, 22 percent in Asia, 13 percent in Latin America and the Caribbean, and 6 percent in the Middle East and Eastern Europe. The remaining 3 percent of our work was performed across regions.
Other notable examples of shifts in CARE’s programs in fiscal year 2012 include successfully completing a major infrastructure program in Afghanistan and wrapping-up most of CARE’s response to the 2010 earthquake in Haiti. These and other examples resulted in total program activities of $529 million in fiscal year 2012, compared to $561 million in 2011.
Many of CARE’s revenue streams are tied to programs supported by various major donors and can also vary from year to year as programs shift. In fiscal year 2012, private cash contributions remained at similar levels compared to 2011. Support from the U.S. government and through CARE International members reduced somewhat, while support from other institutional donors increased. Overall, CARE’s revenue was $561 million in 2012.
CARE USA’s expenses in 2012 totaled $586 million and more than 90 percent of spending served our mission through program expenses. Only 10 percent of our spending went to fundraising, management and other support activities.
The consolidated financial statements that follow demonstrate our organizational fiscal health through our total net asset balance of $301 million at the end of fiscal year 2012. Program spending of restricted gifts received in prior years represents $37 million of the $40 million reduction in net assets compared to the end of 2011. Other contributing factors were a decline in value of $8 million in a third-party trust portfolio netted against an unrestricted surplus of nearly $6 million.
CARE USA’s commitment to executing high-quality programs as efficiently as possible is demonstrated through the investment in a new finance and grants management system, which continued throughout fiscal 2012. As it goes online at the beginning of fiscal year 2013, most CARE locations around the world will, for the first time, share a common, Web-based software platform. Implementing this new system reflects CARE’s unwavering commitment to the responsible management of our financial resources.
Vickie J. Barrow-Klein
Chief Financial Officer
Our auditors have expressed an unqualified opinion on our June 30, 2012 consolidated financial statements.
These financial statements include associated notes that are essential to understanding the information presented herein.
The full set of statements and notes is available at CARE USA’s website, www.care.org, and a printed copy may be obtained from CARE USA.