The Accord provides explanation of projected finances in light of mis-reporting

In its first Annual Report for the year ending 31st December, the Accord detailed not only its costs incurred in the early stages of operations but also set out the income and expenditure forecast for the current financial year ending 31st December 2014.

In some areas of the media, this has been inaccurately reported and to a degree mis-interpreted and we have therefore highlighted below the key points of clarification.

  • The entire inspection programme encompassing circa 1500 factories will all be completed between February and September 2014.
  • The costs of these inspections is fully accounted for and will represent 83.4% of the total income of the Accord in 2014.
  • The operational costs on the ground in Bangladesh will account for a further 6.8% of the total income.
  • Therefore over 90% of the total income of the Accord will be used in financing the inspection and operational costs on the ground in Bangladesh.
  • Agreement has been reached with all Signatories to fund these activities and there is no funding shortfall.

The Accord is well funded and capable of meeting its full 5 year programme effectively.