Controller’s Audit Report
Mar 10th, 2022
Médecins Sans Frontières, Japon
President:

Takashi Kurumiya

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 2021 and ended 31st December 2021.
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 2021 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 2021, 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 Articlesof Associations etc.

Richard SEBEL, ControllerIndependent Auditor's Report
March 11, 2022
Médecins Sans Frontières Japon
To: Takashi Kurumiya, President
KPMG AZSA LLC, Tokyo Office
Designated Limited Liability Partner
Managing Partner
Tetsuaki Nomura, Certified Public Accountant<Audit of Financial Statements>
Audit Opinion
We have audited the accompanying balance sheet of Médecins Sans Frontières Sans Frontières, a non‐profit organization,
as of January 1, 2021 through December 31, 2021, and the related statements of changes in net assets, notes to the financialstatements, and an inventory of property (collectively, the audited (The documents are referred to as the "financialstatements, etc."). We have audited the financial statements, etc. (the "Financial Statements, etc.") of the Company.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position andresults 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 accepted in 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 thecorporation and fulfill our other ethical responsibilities as auditors in accordance with the provisions of the Code ofProfessional Ethics in Japan. We believe that we have obtained sufficient and appropriate audit evidence to provide a basis
for our opinion.
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 the establishment andoperation of such internal control as the board members determine is necessary to enable the preparation and fairpresentation of the financial statements and other financial information that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the board members are responsible for evaluating whether it is appropriate to prepare
the financial statements based on the going concern assumption, and for disclosing matters relating to the going concern ifsuch 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, arefree from material misstatement, whether due to fraud or error, based on the audit performed by the auditor, and to 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 the aggregate, 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 and throughout
the course of the audit exercise professional judgement and maintain professional skepticism in doing the followingDesign and perform audit procedures that address the risks of material misstatement. The selection and application ofaudit 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 made by the Director and the related notes.

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 or conditions thatwould cast significant doubt on the going concern basis. If a material uncertainty regarding the going concern
assumption is recognized, the auditor is required to draw attention in the auditor's report to the notes to the financialstatements or, if the notes to the financial statements are not appropriate with respect to the material uncertainty, toexpress an opinions 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 or circumstances 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 the related notes,
present fairly the underlying transactions and accounting events, as well as the presentation, organization, and detailsof the financial statements and related notes.

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 matters required by the audit
standards.
StakeWe have no interest in or relationship with the Company which is required to be disclosed pursuant to the provisions of theCertified Public Accountants Act.
Please note that this English version is made by AI translation.

Not-for-Profit Organization Médecins Sans Frontières Japon

Statement of Financial Activities
For the year ended December 31, 2021
(Unit：JPY）

2021

2020

AmountRatio

ChangesAmountRatio

AmountRatio

I. Non-earmarked Net Assets Changes
1. Changes in Operating Item
(1) Operating Revenues① Donations

11,170,418,816100.0%

13,050,103,455

100.0%(1,879,684,639)

Donations from private individuals

10,434,880,219

93.4%

11,539,600,859

88.4%(1,104,720,640)-9.6%

Donations from private companies

656,981,839

6.2%

1,424,682,326

6.2%(767,700,487)-53.9%

Donations from other organizations

78,556,758

0.7%

85,820,270

0.7%(7,263,512)-8.5%② Public institutional funds etc.

750,732,410

806,586,772(55,854,362)

-6.9%

-

279,527,952(279,527,952)-

750,732,410

527,058,820

223,673,590

42.4%

6,361,028

13,234,340(6,873,312)-51.9%

Contributions to multilateral institutions
Grants from MSF Korea③ Other Revenues
Association membership fee
Interest income and revaluation gains etc.
Total Operating Revenues-14.4%

536,931

758,400(221,469)-29.2%

5,824,097

12,475,940(6,651,843)-53.3%

11,927,512,254

13,869,924,567(1,942,412,313)-14.0%-14.4%(2) Operating Expenditures
Social Mission Expenditures (①＋②+③＋④＋⑤)

9,485,403,525

82.7%

11,078,389,799

83.5%(1,592,986,274)① Program & Program Support

8,855,453,54277.2%

10,521,763,892

79.3%(1,666,310,350)-15.8%

Financial contribution to operational centers (Grants)

8,855,453,542(1,660,405,909)-15.8%(5,904,441)-100.0%10,515,859,451-Other Program Support etc.

② Operational Support Project

81,064,702

Personnel expenses

44,178,118

5,904,441
0.7%

70,016,073

0.5%

49,283,467

15.8%(5,105,349)-10.4%

16,153,97877.9%(4,448,879)-3.3%

Others (Office rent, travel & depreciation etc.)

36,886,584③ Field HR management

132,215,878

Personnel expenses

83,318,528

80,533,955

2,784,573

3.5%

Others (Office rent, travel & depreciation etc.)

48,897,350

56,130,802(7,233,452)-12.9%④ Advocacy activity

29,321,904

Personnel expenses etc.

29,321,904

20,732,606

11,048,629

1.2%

0.3%

136,664,757

19,335,706

1.0%

0.1%

19,335,706
3.4%

2.5%

51.6%
51.6%

56,738,128

17.2%
28.8%

⑤ Awareness-raising387,347,499

Personnel expenses

109,598,695

85,059,772

24,538,923

Newsletter/Website related expenses

181,883,120

165,438,874

16,444,246

9.9%

Agent service fee

59,298,173

47,302,397

11,995,776

25.4%

3,759,183

11.5%(185,947,528)-9.5%

Others (Office rent, travel & depreciation etc.)

Fundraising

36,567,511
1,781,002,410

330,609,371

9,986,198
9,986,198

32,808,328
15.5%

1,966,949,938

14.8%

176,405,827

171,224,327

5,181,500

3.0%

1,176,611,224

1,346,362,480(169,751,256)-12.6%

Agency service fees and system-related costs

243,831,501

226,111,155

17,720,346

7.8%

Agent service fee

71,103,979

79,691,377(8,587,398)-10.8%Printing fee

23,475,436

25,086,417(1,610,981)-6.4%

Others (Office rent, travel & depreciation etc.)

89,574,443

118,474,182(28,899,739)-24.4%

Personnel expenses
Fundraising campaign expenses

Management & General Administration

207,851,775

Personnel expenses

136,613,296

1.8%(17,625,324)-7.8%

151,029,582(14,416,286)-9.5%-40.1%

225,477,099

1.7%

Association related expenses (except personnel)

4,784,948

7,984,290(3,199,342)

Others (Office rent, travel & depreciation etc.)

66,453,531

66,463,227(9,696)

0.0%

Other International Contributions etc.

441,367,989

26,601,103

6.4%

Contribution to DNDi

29,873,256

1,778,397

6.3%-

414,766,886-

28,094,859

Contribution to Campaign for Access to Essential Medicines

36,008,365

32,780,212

3,228,153

9.8%

Contributions to MSF International Office184,026,918

157,565,381

26,461,537

16.8%

Financial support to MSF Korea
Total Operating Expenditures

Increase in Non-earmarked Net Assets

191,459,450
11,915,625,699

196,326,434
100.0%

13,685,583,722

100.0%(4,866,984)-2.5%(1,769,958,023)-12.9%

11,886,555

184,340,845(172,454,290)-

Non-earmarked Net Assets at Beginning of Year

1,175,478,320

991,137,475

184,340,845-

Non-earmarked Net Assets at End of Year

1,187,364,875

1,175,478,320

11,886,555-

1. Accepted Earmarked Donations

279,210,576

3,087,992,427(2,808,781,851)-

2. Transfer to Non-earmarked Net Assets

279,210,576

3,120,765,784(2,841,555,208)-

Changes in Earmarked Net Assets-(32,773,357)

32,773,357-

Earmarked Net Assets at Beginning of Year-32,773,357(32,773,357)-Earmarked Net Assets at End of Year----

1,187,364,875

1,175,478,320

11,886,555

1.0%

II. Earmarked Net Assets Changes

III. Net Assets at End of Year to be carried forwardNot-for-Profit Organization Médecins Sans Frontières Japon

Balance Sheet
As of December 31, 2020
(Unit：JPY）

2021

Changes2022

Amount%ＩAssets
1. Current Assets
Cash and deposit with banks

2,998,662,913

3,551,329,306(552,666,393)-15.6%

Accounts receivable

367,281,098

344,035,419

23,245,679

6.8%

Prepaid expenses

13,235,882

10,477,275

2,758,607

26.3%

-

1,125,398(1,125,398)-100.0%1,244,316

31,533,949(30,289,633)-96.1%

3,380,424,209

3,938,501,347(558,077,138)-14.2%

23,996,851
43,026,623
41,689,540

8,952,589
33,645,255
14,208,491
41,589,540(8,952,589)(9,648,404)
28,818,132
100,000-100.0%-28.7%
202.8%
0.2%

108,713,014
3,489,137,223

98,395,875
4,036,897,222

10,317,139(547,759,999)

10.5%-13.6%

2,250,998,631

2,802,255,324(551,256,693)-19.7%

387,717

9,554,778(9,167,061)-95.9%

2,251,386,348

2,811,810,102(560,423,754)-19.9%

50,386,000

49,608,800

777,200

1.6%

Advances
Other current assets
Total Current Assets

2. Non Current Assets
Building structures
Office equipment and fixtures
Software
Long-term deposit
Total Non Current Assets
Total Assets
ⅡLiabilities
1. Current Liabilities
Accounts payable
Deposits received etc.
Total Current Liabilities
2. Non Current Liabilities
Provisions for retirement benefits
Total Non Current Liabilities

50,386,000

49,608,800

777,200

1.6%

Total Liabilities

2,301,772,348

2,861,418,902(559,646,554)-19.6%ⅢNet Assets--

1,187,364,875

1,175,478,320

11,886,555

1.0%

Total Net Assets

1,187,364,875

1,175,478,320

11,886,555

1.0%

Total Liabilities and Net Assets

3,489,137,223

4,036,897,222(547,759,999)-13.6%

Earmarked Net Assets
Non-earmarked Net Assets

Not-for-profit Organization Médecins Sans Frontières Japon

Summary of Assets
As of December 31, 2021
（Unit: JPY）

2021

2020

Changes

I. Assets
1. Current Assets
Cash and cash equivalents

2,998,662,913

3,551,329,3062,995,527

132,369

2,863,158

Ordinary account (MUFG Bank,Ltd.)673,654,267

1,264,395,695(590,741,428)

Ordinary account (Sumitomo Mitsui Banking Corp.)

856,735,920

529,912,295

326,823,625

Ordinary account (Mizuho Bank Ltd.)72,156,054

22,347,858

49,808,196

1,235,546,058

1,588,334,757(352,788,699)

Ordinary account (Rakuten Bank Ltd.)11,154,716

18,102,791(6,948,075)

Ordinary account (SBI Sumishin Net Bank,Ltd.)8,880,645

2,645,763

6,234,882

Ordinary account (Sumitomo Trust and Banking Co Ltd..)

27,705,343

18,687,129

9,018,214
2,337,736

Petty cash

Transfer Saving Account (Japan Post Bank Co., Ltd.)

Ordinary account (MUFG Trust and Banking Ltd.)
Fixed deposit(Sumitomo Mitsui Banking Corp.)

PayPal
Accounts receivable(552,666,393)

9,017,259

6,679,523

100,000,000

100,000,000-

817,124

91,126725,998
23,245,679

367,281,098

344,035,419

Donation receivable from outsourced vendor

115,543,434

107,164,245

8,379,189

MSF Korea

100,590,000

76,907,849

23,682,151

MSF France

79,740,536

93,122,810(13,382,274)

MSF International Office etc.

36,007,972

36,453,937(445,965)

Other MSF offices (Expatriates related expenses etc.)

32,242,478

29,948,486

2,293,992

Others
Prepaid expenses
Advances

3,156,678

438,092

2,718,586

13,235,882

10,477,275

2,758,607-

1,125,398(1,125,398)

1,244,316

31,533,949(30,289,633)

Gold ingot-

31,256,089(31,256,089)

Supplies---

1,244,316

277,860

966,456

3,380,424,209

3,938,501,347(558,077,138)---

Building structures-

8,952,589(8,952,589)

Leasehold Improvements-8,952,589(8,952,589)

23,996,851

33,645,255(9,648,404)

Other current assets

Suspense payment
Total Current Assets
2. Non Current Assets

1) Specific purpose funds
Reserve funds for grant to emergency program2) Other Non Current Assets

Office equipment and fixtures
Furniture

1,867,553

1,989,597(122,044)

Equipment and fixtures

22,129,298

31,655,658(9,526,360)

Video equipment---

43,026,623

14,208,491

28,818,132

Long-term deposit

41,689,540

41,589,540

100,000

Office rent and others

41,689,540

41,589,540

100,000

Total Non Current Assets

108,713,014

98,395,875

10,317,139

Total Assets

3,489,137,223

4,036,897,222(547,759,999)

Software

II. Liabilities
1. Current Liabilities
Accounts payable (Grants etc.)

1,911,960,149

2,414,845,507(502,885,358)

Grants for MSF France

1,312,403,542

1,555,795,507(243,391,965)(21,500,000)

Grants for MSF Spain

342,600,000

364,100,000

Grants for MSF Switzerland

85,600,000

91,250,000(5,650,000)

Grants for MSF Holland

85,600,000

97,250,000(11,650,000)

Grants for MSF Belgium

85,600,000

91,250,000(5,650,000)

156,607215,200,000(215,043,393)

339,038,482

387,409,817(48,371,335)

387,717

9,554,778(9,167,061)

387,717

9,554,778(9,167,061)---

2,251,386,348

2,811,810,102(560,423,754)
777,200

Grants for WaCA
Accounts payable (Other national expenses)
Deposits received etc.

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

50,386,000

49,608,800

Total Non Current Liabilities

50,386,000

49,608,800

777,200

Total Liabilities

2,301,772,348

2,861,418,902(559,646,554)

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

1,187,364,875

1,175,478,320

11,886,555

Total Net Assets

1,187,364,875

1,175,478,320

11,886,555

Total Liabilities and Net Assets

3,489,137,223

4,036,897,222(547,759,999)