henry hills
PROVEN STERLING
HenryHillsWFPppt.pptxWorld Food Programme
Student’s Name
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Overview
World Food Program
Founded in 1961 (https://www.wfp.org/)
Headquarters are in Rome
The food-assistance branch of the United Nations (UN).
Largest humanitarian organization globally
Focus:
Focused on alleviating hunger and achieving food security
The largest provider of school meals in the world
Business/revenue model
The principal source of funding for WFP is the government
Receives nothing from the UN assessed contributions.
Operating Dynamics
Main sources of revenue:
Governments
Corporations
Individuals (WFP, 2021)
Main expenses
Staff costs exceed the billion-dollar mark for the first time in 2019 (WFP, 2020)
Program services
Expenses are not adjusted to match recent revenue increases
Revenue sources not adequately diversified as it depends on contributions only
Profitability
Strong financial position (WFP, 2020)
Growing liquidity surplus
Surpluses sufficient to meet balance sheet obligations
WFP is not spending its surplus for the last few years
It is economically dependent on contributions
Balance Sheet/Liquidity
Revenues are more then expenses (WFP, 2020)
Has both long term and short term assets
Assets mix:
Contributions receivable
Investments
Property, plant and equipment and intangible assets
Inventories
Assets exceed liabilities
Invests excess liquidity in highly liquid securities with AAA credit ratings (WFP, 2020)
Lowers credit risk and liquidity risk
WFP’s IRS 990
Almost all revenue comes form contribution and grants
most of its revenue is used as grants to other assistance foreign entities
The revenue is tax exempt
https:// www.wfpusa.org/wp-content/uploads/2019/04/WFP-USA-Form-990-2017.pdf
Annual Report
Emergency Response 2019
Seven Level 3 and11 Level 2 cross 20 countries in 2019
75% of WFP’s 2019 direct expenditures allocated to crisis response
Assisted 97.1 million beneficiaries
https://docs.wfp.org/api/documents/WFP-0000115522/download/?_ ga=2.72511441.352384182.1615928982-862263614.1614129514
Overall Assessment
WFP has a very strong financial position
WFP can easily cover its liabilities
Investments cushion part of the liabilities
The organization has adequate unrestricted operating revenue to foot its operational costs
Main capital requirement are for pushing for gender equity and Zero Hunger
Recommendations
Invest all liquid surplus
Serve more people
Expand its global supply chain
Invest in sustainable solutions
Increase urgency of offering humanitarian help
References
WFP (2021). Funding and donors. wfp.org/funding-and-donors
WFP (2020). Audited annual accounts, 2019. https://docs.wfp.org/api/documents/WFP-0000115483/download/#:~:text=WFP's%20simplified%20statement%20of%20financial%20position%2C%20presented%20above%2C%20shows%20a,in%20the%20previous%20financial%20statements.
https://www.wfp.org/
