In a world of global challenges, continued poverty, inequity, and increasing vulnerability to disasters and disease, the International Federation with its global network, works to accomplish its Global Agenda, partnering with local community and civil society to prevent and alleviate human suffering from disasters, diseases and public health emergencies.
During 2006 the Red Cross Society of Bosnia and Herzegovina (RCSBiH) has made major changes to its statutes. The focus of Federation support has been, besides supporting programmes, on strengthening the new structure of the society through the Organisational Development programme. This is essential, not only for effective functioning of the RCSBiH but also for future funding possibilities.
Programme support has been concentrated on Health and Care - Home Care, Population Movement, HIV/AIDS, TB - and Disaster Management programmes. The Home Care programme was evaluated during the autumn and this evaluation will serve as the basis for future support to the programme and also for the Population Movement programme.
The overall financial situation for Federation support to RCSBiH is still quite good. The major donors are Norwegian and Swedish Red Cross Societies. During 2006 the Federation also received considerable support for the Home Care programme from the Italian Red Cross.
Goal: To improve the quality of life for people in need living in BiH.
Needs: Total 2006-2007 budget CHF 2,482,990 (USD 2,055,665 or EUR 1,513,760) (out of which 43 % covered).
The most significant economic event to affect the programme and its beneficiaries in 2006 was the introduction of Value Added Tax (VAT). Starting on 1 January the authorities introduced a general VAT of 17 % in the country. In an already poor country with an overall unemployment rate of 40 % this has had a severe effect on people's lives; for people who had problems making ends meet before 2006 this problem became even worse during 2006. The effect on the Red Cross programmes was also strong because less commodities (hygiene and food parcels) could be distributed to vulnerable people.
The Federation Representative Office managed this situation quite well since through the status agreement it is exempted from paying VAT. However the VAT regime means a lot more administrative work in order to get refunded the already paid VAT.
The RCSBiH was not exempted from paying VAT which meant that this was an extra cost for the society. Italian Red Cross during the first part of 2006 was going to do a major procurement for RCSBiH Home Care programme. In order to avoid the VAT problem the procurements were done through the Federation system and consequently the Federation appeal for 2006 had to be revised.
For further information please contact:
Sune Follin, Federation Representative to BiH; email: firstname.lastname@example.org; Telephone: +387 33 666 009; Fax: +387 33 666 010
Samra Campara, Finance Development Manager; email: email@example.com; Telephone: +387 33 666 009; Fax: +387 33 666 010
Erja Reinikainen, Regional Officer, Europe Department, Federation Secretariat; email: firstname.lastname@example.org; Telephone: +41 22 730 43 19; Fax: +41 22 733 03 95
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