Independent Auditor's Report
March 13, 2024
Médecins Sans Frontières Japon
To: Yuko Nakajima, President
KPMG AZSA LLC, Tokyo Office
Designated Limited Liability Partner
Managing Partner
Shuuji Fukuhara, Certified Public Accountant<Audit of Financial Statements>
Audit Opinion
We have audited the accompanying balance sheet of Médecins Sans Frontières, a non-profit organization, as of January
1, 2023 through December 31, 2023, and the related statement of financial activities, notes to the financial statements,
and a summary of assets (collectively, the audited documents will be referred as "financial statements, etc.").
In our opinion, the financial statements, etc. referred to above present fairly, in all material respects, the financial
position and results of operations (changes in net assets) of the Company for the period, for which the financial
statements were prepared, in conformity with accounting principles for public benefit corporations generally acceptedin Japan.
Basis for Audit Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan.
Our responsibility is to express an opinion on these financial statements based on our audit. We are independent of
the corporation and fulfill our other ethical responsibilities as auditors in accordance with the provisions of the Codeof Professional Ethics in Japan. We believe that we have obtained sufficient and appropriate audit evidence to provide
a basis for our opinion.
Other published materials
Other published material refers to the Moral Report. Directors are responsible for the disclosure of other publishedmaterials. The responsibility of the controller is to monitor the directors' performance of their duties in thedevelopment and operation of the Other published materials.
The auditor’s duties related to the financial statements, etc. do not include any opinion related to Other publishedmaterials. The auditors’ responsibilities regarding Other published materials are limited to reviewing the Other
published materials for material inconsistencies with the financial statements, etc.
We do not have any matter to report related to the Other published materials.
Responsibility of Board Members and Controller for Financial Statements, etc.
The board members are responsible for the preparation and proper presentation of financial statements, etc., in
conformity with accounting standards for public interest corporations generally accepted in Japan. This includes theestablishment and operation of such internal control as the board members determine is necessary to enable thepreparation and fair presentation of the financial statements and other financial information that are free from
Please note that this English version is made by Al translation.

1

material misstatement, whether due to fraud or error.
In preparing the financial statements, the board members are responsible for evaluating whether it is appropriate toprepare the financial statements based on the going concern assumption, and for disclosing matters relating to thegoing concern if such disclosure is required under generally accepted accounting principles in Japan for public interest
corporations. The following is a summary of the terms and conditions of the agreement.
The responsibility of the controller is to monitor the board members ‘performance of their duties in the development
and operation of the financial reporting process.
Auditor's Responsibility for the Audit of Financial Statements
The auditor's responsibility is to obtain reasonable assurance about whether the financial statements, taken as a whole,
are free from material misstatement, whether due to fraud or error, based on the audit performed by the auditor, andto express an opinion on the financial statements from an independent perspective in the auditor's report. A
misstatement is considered to be material if it could have been caused by fraud or error and, individually or in theaggregate, could reasonably be expected to influence the decisions of users of the financial statements.
The auditor shall, in accordance with auditing standards generally accepted as fair and reasonable in Japan andthroughout the course of the audit exercise professional judgement and maintain professional skepticism in doing thefollowing.
・ Design and perform audit procedures that address the risks of material misstatement. The selection andapplication of audit procedures shall be at the auditor's discretion. In addition, obtain sufficient appropriate audit
evidence to provide a basis for expressing an opinion.
・ The purpose of an audit of financial statements is not to express an opinion on the effectiveness of internal control.
However, in making those risk assessments, the auditor considers internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances.
・ Evaluate the appropriateness of the accounting policies and methods of application thereof adopted by the board
members and the reasonableness of the accounting estimates and related notes made by the board members.
・ The board members concludes whether it is appropriate to prepare the financial statements on the going concern
basis and, based on the audit evidence obtained, whether there is a material uncertainty about events orconditions that would cast significant doubt on the going concern basis. If a material uncertainty regarding thegoing concern assumption is recognized, the auditor is required to draw attention in the auditor's report to thenotes to the financial statements or, if the notes to the financial statements are not appropriate with respect tothe material uncertainty, to express an opinion with qualifications on the financial statements. The auditor's
conclusion is based on audit evidence obtained up to the date of the auditor's report, but future events orcircumstances may cause the corporation to cease to exist as a going concern.
・ Evaluate whether the presentation and notes to the financial statements conform to generally accepted
accounting principles for public benefit corporations in Japan, and whether the financial statements, including therelated notes, present fairly the underlying transactions and accounting events, as well as the presentation,organization, and details of the financial statements and related notes.

Please note that this English version is made by Al translation.

2

The auditor shall report to the controller on the planned scope and timing of the audit, significant audit findings,
including significant deficiencies in internal control, identified during the course of the audit, and other mattersrequired by the audit standards.
Stake
We have no interest in or relationship with the Company which is required to be disclosed pursuant to the provisionsof the Certified Public Accountants Act.

Please note that this English version is made by Al translation.

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Controller’s Audit Report
Mar 13th, 2024
Médecins Sans Frontières, Japon
President: Yuko Nakajima
In accordance with the Act on Promotion of Specified Non-profit Activities, Article 18, I haveconducted the assessment of Médecins Sans Frontières, Japon (hereinafter MSFJ) for thebusiness year started 1st January 2023 and ended 31st December 2023.
I.

Summary of the methods used in the assessment:(1) Financial Assessment
I attended the regular Board Meetings and got treasurer’s report regarding the financial
statements of MSFJ for 2023 discussed at Finance Committee as well as other importantfinance-related meetings. Furthermore, I obtained the explanation from the external auditors
about the results of audit implemented for the Financial Statements for the above-mentioned
period, in order to monitor and check the appropriateness of the method and process of theaudit.
(2) Operational Assessment
I have monitored the appropriateness of the activities of the board members and operationsof the MSFJ board for 2023, by obtaining explanation and opinions from the board members
and office staff by attending the important meetings including regular board meetings.

II.

Results of the Audit(1) Financial Assessment
I believe that the methods and the results of audit implemented by the external auditors areappropriate. In my opinion, the financial statements referred to above are prepared withoutmaterial misstatement, whether due to fraud or error, in accordance with the accounting
standards generally accepted in Japan.
(2) Operational Assessment
In my opinion, the board members had engaged in proper activities in their execution ofduties and there has been no serious violation of NPO Law of Japan as well as the Articles
of Associations etc.

Mitsuyo MORIKAWA, Controller

Not-for-Profit Organization Médecins Sans Frontières Japon
Balance Sheet
As of December 31, 2023

(Unit：JPY）

Changes

2023

2022

2,777,988,728
247,872,265
13,543,284

2,810,506,330
220,130,359
11,089,782(32,517,602)
27,741,906
2,453,502

-1.2%
12.6%
22.1%

Total Current Assets

3,039,404,277

3,041,726,471(2,322,194)-0.1%

2. Non Current Assets
Building structures
Office equipment and fixtures
Software
Long-term deposit
Total Non Current Assets
Total Assets

1,639,495
32,513,274
40,213,293
39,885,940
114,252,002
3,153,656,279

2,143,955
15,697,561
52,128,673
40,302,940
110,273,129
3,151,999,600(504,460)
16,815,713(11,915,380)(417,000)
3,978,873
1,656,679

0.0%
107.1%-22.9%
-1.0%
3.6%
0.1%

Total Current Liabilities

1,658,509,776
11,477,787
1,669,987,563

1,909,236,726
343,641
1,909,580,367(250,726,950)
11,134,146(239,592,804)-13.1%
3240.1%-12.5%

2. Non Current Liabilities
Provisions for retirement benefits
Total Non Current Liabilities
Total Liabilities

48,471,600
48,471,600
1,718,459,163

53,993,400
53,993,400
1,963,573,767(5,521,800)(5,521,800)(245,114,604)-10.2%-10.2%-12.5%

1,435,197,116

1,188,425,833

246,771,283

20.8%

Total Net Assets

1,435,197,116

1,188,425,833

246,771,283

20.8%

Total Liabilities and Net Assets

3,153,656,279

3,151,999,600

1,656,679

0.1%

ＩAssets
1. Current Assets
Cash and deposit with banks
Accounts receivable
Prepaid expenses

ⅡLiabilities
1. Current Liabilities
Accounts payable
Deposits received etc.

ⅢNet Assets
Earmarked Net Assets
Non-earmarked Net Assets

Amount%Not-for-Profit Organization Médecins Sans Frontières Japon
Statement of Financial Activities
For the year ended December 31, 2022
(Unit：JPY）
2023

2022

AmountI. Non-earmarked Net Assets Changes
1. Changes in Operating Item
(1) Operating Revenues① Donations
Donations from private individuals
Donations from private companies
Donations from other organizations② Public institutional funds etc.
Grants from Other MSF③ Other Revenues
Association membership fee
Interest income and revaluation gains etc.

12,963,469,950
11,828,439,989
1,038,408,695
96,621,266
26,562,343
26,562,343
5,617,015
474,051
5,142,964

Total Operating Revenues

12,995,649,308(2) Operating Expenditures
Social Mission Expenditures (①＋②+③＋④＋⑤)① Program & Program Support
Financial contribution to operational centers (Grants)
Other Program Support etc.
② Operational Support Project
Personnel expenses
Others (Office rent, travel & depreciation etc.)③ Field HR management
Personnel expenses
Others (Office rent, travel & depreciation etc.)④ Advocacy activity
Personnel expenses etc.
⑤ Awareness-raising
Personnel expenses
Humanitarian aid public relations activities
Agent service fee
Others (Office rent, travel & depreciation etc.)
Fundraising
Personnel expenses
Fundraising campaign expenses
Agency service fees and system-related costs
Communication and postage
Printing fee
Others (Office rent, travel & depreciation etc.)
Management & General Administration
Personnel expenses
Association related expenses (except personnel)
Others (Office rent, travel & depreciation etc.)
Other International Contributions etc.
Contribution to DNDi
Contribution to Campaign for Access to Essential Medicines
Contributions to MSF International OfficeFinancial support to MSF Korea
Total Operating Expenditures
2. Changes in Non-Operating Item
(1) Non-Operating Revenues
Gain on prior periods adjustment
Total Non-Operating Revenues

Ratio

ChangesAmount100.0%
91.2%
8.0%
0.7%

13,006,036,409
11,852,813,891
955,455,551
197,766,967
12,534,641
12,534,641
5,110,898
594,157
4,516,741

Ratio

Amount100.0%
91.1%
7.3%
1.6%

-42,566,459-24,373,902
82,953,144-101,145,701
14,027,702
14,027,702
506,117-120,106626,223

-0.3%
-0.2%
8.7%
-51.1%
111.9%
111.9%
9.9%-20.2%
13.9%-28,032,640-0.2%-161,716,476-154,114,458-151,014,454-3,100,004
4,200,615
2,279,673
1,920,942-15,090,063-2,515,728-12,574,335
4,005,711
4,005,711-718,281-2,191,260
4,890,287-256,850-3,160,458
147,211,055
24,637,591
97,019,832
4,767,706-984,839
1,263,139
20,507,626-16,224,803-10,203,820
11,894,080-17,915,063-243,012,740
2,802,177
3,417,265
36,653,364-285,885,546

-1.6%
-1.6%
-1.6%
-98.1%
5.4%
6.0%
4.8%
-9.2%
-2.6%
-19.0%
13.2%
-0.2%
-1.7%
4.9%
-0.6%
-6.5%
7.7%
11.1%
7.2%
3.4%
-1.4%
4.7%
18.2%
-5.9%
-7.2%
108.9%-14.7%-42.3%
11.9%
10.6%
15.8%
-100.0%-273,742,964-2.1%

13,023,681,948

10,099,329,709
9,512,059,532
9,512,000,000
59,532
82,214,273
40,478,674
41,735,599
148,864,845
95,208,343
53,656,502
34,403,881
34,403,881
321,787,178
128,643,845
105,049,000
42,327,166
45,767,167
2,060,383,209
247,351,645
1,438,132,319
144,332,700
69,318,509
27,913,517
133,334,519
257,709,831
130,619,691
22,820,012
104,270,128
331,455,277
26,348,632
35,738,704
269,367,941
-

81.3%
76.6%

12,748,878,026

100.0%

0.7%

1.2%

0.3%
2.6%

16.6%

2.1%

-

10,261,046,185
9,666,173,990
9,663,014,454
3,159,536
78,013,658
38,199,001
39,814,657
163,954,908
97,724,071
66,230,837
30,398,170
30,398,170
322,505,459
130,835,105
100,158,713
42,584,016
48,927,625
1,913,172,154
222,714,054
1,341,112,487
139,564,994
70,303,348
26,650,378
112,826,893
273,934,634
140,823,511
10,925,932
122,185,191
574,468,017
23,546,455
32,321,439
232,714,577
285,885,546
13,022,620,990

77.7%

0.6%

1.3%

0.2%
2.6%

15.4%

2.2%

-

100.0%

Ratio

1
1

-

1
1

-

-

0

246,771,283
1,188,425,833
1,435,197,116

1,060,958
1,187,364,875
1,188,425,833

245,710,324
1,060,958
246,771,283-

45,777,000
45,777,000-

182,373,659
182,373,659--136,596,659-136,596,659
0
0

-

-

-

0

-

1,435,197,116

1,188,425,833

246,771,283

20.8%

-

(2) Non-Operating Expenditures
Total Non-Operating Expenditures
Increase in Non-earmarked Net Assets
Non-earmarked Net Assets at Beginning of Year
Non-earmarked Net Assets at End of Year
II. Earmarked Net Assets Changes
1. Accepted Earmarked Donations
2. Transfer to Non-earmarked Net Assets
Changes in Earmarked Net Assets
Earmarked Net Assets at Beginning of Year
Earmarked Net Assets at End of Year
III. Net Assets at End of Year to be carried forward-Not-for-profit Organization Médecins Sans Frontières Japon
Summary of Assets
As of December 31, 2023
2023
I. Assets
1. Current Assets
Cash and cash equivalents
Petty cash
Ordinary account (MUFG Bank,Ltd.)
Ordinary account (Sumitomo Mitsui Banking Corp.)
Ordinary account (Mizuho Bank Ltd.)
Transfer Saving Account (Japan Post Bank Co., Ltd.)
Ordinary account (Rakuten Bank Ltd.)
Ordinary account (SBI Sumishin Net Bank,Ltd.)
Ordinary account (Sumitomo Trust and Banking Co Ltd..)
Ordinary account (MUFG Trust and Banking Ltd.)
Fixed deposit(Sumitomo Mitsui Banking Corp.)
PayPal
Accounts receivable
Donation receivable from outsourced vendor
MSF France
MSF International Office etc.
Other MSF offices (Expatriates related expenses etc.)
Others
Prepaid expenses
Total Current Assets
2. Non Current Assets
Building structures
Leasehold Improvements
Office equipment and fixtures
Furniture
Equipment and fixtures
Video equipment
Software
Long-term deposit
Office rent and others
Total Non Current Assets
Total Assets
II. Liabilities
1. Current Liabilities
Accounts payable (Grants etc.)
Grants for MSF France
Grants for MSF Spain
Grants for MSF Switzerland
Grants for MSF Holland
Grants for MSF Belgium
Grants for WaCA
Accounts payable (Other national expenses)
Deposits received etc.
OthersTotal Current Liabilities
2. Non Current Liabilities
Provisions for retirement benefits

III. Net Assets
Earmarked Net Assets
Non-Earmarked Net Assets

Total Non Current Liabilities
Total Liabilities

Total Net Assets
Total Liabilities and Net Assets（Unit: JPY）
Changes

2022

2,777,988,728

2,810,506,330-32,517,602-

21,000-21,000

377,470,026

1,187,949,629-810,479,603

1,767,501,122

419,013,647

1,348,487,475

166,361,089

110,102,522

56,258,567

190,035,580

883,077,936-693,042,356

57,937,015

31,244,241

26,692,774

50,839,678

28,686,672

22,153,006

43,461,453

37,703,378

5,758,075

13,692,031

11,354,652

2,337,379

100,000,000

100,000,000-

10,690,734

1,352,653

9,338,081

247,872,265

220,130,359

27,741,906

127,135,452

119,460,022

7,675,430

14,411,796

13,857,596

554,200

27,108,854

12,902,864

14,205,990

77,971,525

70,251,566

7,719,959

1,244,638

3,658,311-2,413,673

13,543,284

11,089,782

2,453,502

3,039,404,277

3,041,726,471-2,322,194

1,639,495

2,143,955-504,460

1,639,495

2,143,955-504,460

32,513,274

15,697,561

16,815,713

1,700,353

1,681,622

18,731

30,536,281

14,015,939

16,520,342

276,640-

276,640

40,213,293

52,128,673-11,915,380

39,885,940

40,302,940-417,000

39,885,940

40,302,940-417,000

114,252,002

110,273,129

3,978,873

3,153,656,279

3,151,999,600

1,656,679

1,303,447,231

1,285,448,042

17,999,189

780,000,000

657,054,454

122,945,546

260,000,000

314,380,000-54,380,000

65,000,000

78,495,000-13,495,000

68,447,231

78,528,588-10,081,357

65,000,000

78,495,000-13,495,000

65,000,000

78,495,000-13,495,000

355,062,545

623,788,684-268,726,139

11,477,787

343,641

11,134,146

11,477,787

343,641

11,134,146

1,669,987,563

1,909,580,367-239,592,804

48,471,600

53,993,400-5,521,800

48,471,600

53,993,400-5,521,800

1,718,459,163

1,963,573,767-245,114,604

-

-

-

1,435,197,116

1,188,425,833

246,771,283

1,435,197,116

1,188,425,833

246,771,283

3,153,656,279

3,151,999,600

1,656,679

Notes to Financial Statements
1.

Significant Accounting Policies(1) Basis of Preparation of Financial Statements
The "Accounting Standards for Public Interest Corporations" (April 11, 2008, amended on
October 16, 2009 by the Public Interest Corporation Commission, Cabinet Office) is adopted.
(2) Depreciation and Amortization Methods for Fixed Assets① Property, plant and equipment are depreciated using the straight-line method.
Buildings and fixtures

3-5 years

Furniture, fixtures and video equipment

3-15 years② Software: Straight-line method.

3-5 years(3) Revenue Recognition
In principle, donation income is recognized on a cash basis.
In addition to monetary donations, MSF Japan also receives in-kind donation such as
pharmaceuticals and software. The value of these in-kind donation is reasonably estimated at thetime of acquisition, recognized as "donation income," and expensed when the business is placed
in service.
(4) Basis of Allowance
Allowance for retirement benefits
To provide for the payment of retirement allowances to employees, the amount required at theend of the fiscal year is recorded based on the retirement allowance regulations.
(5) Consumption taxes are accounted for by the tax-included method.
(6) Operating Expenses
Expenses are presented separately by major activity.
① Social mission
Costs to support activities, including humanitarian assistance, staff recruitment for field
activities, medical care and research and development, public relations and advocacy costs,etc.
② Fundraising expenses③ Administrative expenses④ Other expenses for MSF overseas offices and support for essential drug campaigns and new
drug development initiatives

2.

Increase/decrease in basic assets and specific assets - Not applicable.

3.

Breakdown of basic assets, etc. of basic assets and specific assets - Not applicable.

4.

Assets pledged as collateral - Not applicable.

5.

Acquisition cost, accumulated depreciation and balance at the end of the current fiscal year for fixed
assetsAcquisition cost, accumulated depreciation and balance at the end of the current period for fixed
assets are as follows(Unit: Yen)
Acquisition cost

Accumulated

Balance at end of current

depreciation

fiscal year

Building accessories

54,016,634

52,377,139

1,639,495

Office furniture and fixtures

121,593,928

89,080,654

32,513,274

furniture

20,184,465

18,484,112

1,700,353

Furniture and fixtures

94,966,765

64,430,484

30,536,281

video equipment

6,442,698

6,166,058

276,640

software104,901,296

64,688,003

40,213,293

Total

280,511,858

206,145,796

74,366,062

6.

Contingent liabilities such as guarantee obligations - Not applicable.

7.

Breakdown of transfers from restricted fund to general fundThe breakdown of the amount transferred from restricted fund to general fund is as follows(Unit: Yen)

AmountTransfer to ordinary revenues
Purpose restrictions accomplished
Total

8.

45,777,000
45,777,000

Allowance for retirement benefits(1) Outline of the retirement benefit plan adopted – lump-sum retirement benefit plan in accordancewith internal rules.
(2) Retirement benefit obligation and its breakdown
48,471,600 yen Retirement benefit obligation,
48,471,600 yen Allowance for retirement benefits(3) Retirement benefit expenses 8,971,500 yen

9.

Breakdown of the allocation of humanitarian aid program support for the current fiscal year.
(Unit: Yen)
Donations from domestic supporters

Total Program Support Funds

MSF France

5,707,200,000

5,707,200,000

MSF Spain

1,902,400,000

1,902,400,000

MSF Switzerland

475,600,000

475,600,000

MSF Netherlands

475,600,000

475,600,000

MSF Belgium

475,600,000

475,600,000

MSF WaCA

475,600,000

475,600,000

9,512,000,000

9,512,000,000

Total

10. Significant subsequent events －Not applicable.