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South Sudan

The world’s youngest nation South Sudan will be celebrating its one-year anniversary on July 9, 2012. BRAC has been active in the area since 2007 and has grown to become one of the largest, if not the largest, NGO in the young country, reaching over 17,000 micro-borrowers with over USD 7 million in loans, distributing over 17 metric tonnes of seeds, creating work for 2,500 health workers, and educating over 6,000 students. BRAC is expanding in South Sudan by providing technical and grant support to 69 community-based organisations working in all 10 states of the new country through a special government and UN peace fund. What started out in 1972 in a remote village of Bangladesh as a limited relief operation, turned into the largest development organisation in the world. Of major non-governmental organisations, BRAC is one the few based in the global south. Today, BRAC is a development success story, spreading solutions born in Bangladesh to 10 other countries around the world - a global leader in creating opportunity for the world’s poor. Organising the poor using communities’ own human and material resources, it catalyses lasting change, creating an ecosystem in which the poor have the chance to seize control of their own lives. We do this with a holistic development approach geared toward inclusion, using tools like microfinance, education, healthcare, legal services, community empowerment and more.

South Sudan

Our work now touches the lives of an estimated 126 million people, with staff and BRAC-trained entrepreneurs numbering in the hundreds of thousands - a global movement bringing change to 10 countries in Asia, Africa and the Caribbean, with operations in our eleventh country, the Philippines, being launched in 2012.


Harnessing the past Enriching the future

Contents Mission, Vision and Values 01 Chairperson’s Statement 02 Agriculture 04 Health 08 Adolesent Girls Initiative 11 Education 13 Microfinance 16 Inside BRAC 19 Development partners 20 BRAC across the world 22 Harnessing the past 24 Governance 26 Management 27


1 Annual Report 2011

Harnessing the past Enriching the future

Contents Mission, Vision and Values Chairperson’s Statement Agriculture Health Adolesent Girls Initiative Education 0LFURÛQDQFH Inside BRAC Development partners BRAC across the world Harnessing the past Governance Management

01 02 04 08 11 13 16 19 20 22 24 26 27


Annual Report 2011 1

Vision, Mission and Values

Vision

Mission

Values

A world free from all forms of exploitation and discrimination where everyone has the opportunity to realise their potential.

Our mission is to empower people and communities in situations of poverty, illiteracy, disease and social injustice. Our interventions aim to achieve large scale, positive changes through economic and social programmes that enable men and women to realise their potential.

Innovation For forty years, BRAC has been an innovator in the creation of opportunities for the poor to lift themselves out of poverty. We value creativity in programme design and strive to display global leadership in groundbreaking development initiatives.

Integrity We value transparency and accountability in all our professional work, with clear policies and procedures, while displaying the utmost level of honesty in our financial dealings. We hold these to be the most essential elements of our work ethic.

Inclusiveness We are committed to engaging, supporting and recognising the value of all members of society, regardless of race, religion, gender, nationality, ethnicity, age, physical or mental ability, socioeconomic status and geography.

Effectiveness We value efficiency and excellence in all our work, constantly challenging ourselves to perform better, to meet and exceed programme targets, and to improve and deepen the impact of our interventions.


2 Annual Report 2011

Chairperson’sStatement

It gives me great pleasure to present the ANNUALÖREPORTÖANDÖTHEÖAUDITEDÖÙNANCIALÖ statements for the year ended 31 December 2011. 4HISÖISÖAÖSIGNIÙCANTÖYEARÖFORÖ3OUTHÖ3UDANÖ emerging as an independent nation on 9 July, 2011 after decades of civil war. A proud moment for the people of this new nation no doubt, but it also highlights the stark reality of a country which has seen injustice, violence and destruction for many years. This will require concerted EFFORTÖBYÖTHEÖGOVERNMENTÖOFÖ3OUTHÖ3UDANÖ and the international development partners to rebuild this nation. The majority of THEÖPOPULATIONÖINÖ3OUTHÖ3UDANÖAREÖSTILLÖ extremely poor and it is estimated that 90 per cent of the population live below the POVERTYÖLINEÖOFÖ53$ÖÖPERÖDAYÖ4HEÖCOUNTRYÖ has one of the highest rates of maternal and infant and child mortality. In education, the situation is even worse. Less than 50 PERÖCENTÖOFÖALLÖCHILDRENÖINÖ3OUTHÖ3UDANÖ RECEIVEÖÙVEÖORÖMOREÖYEARSÖOFÖPRIMARYÖ school education and health coverage is only 30 per cent. /URÖCOMMITMENTÖINÖ3OUTHÖ3UDANÖREMAINSÖ strong particularly in education, youth empowerment, health, agriculture, and food security. Our 225 schools are providing a chance for over 6,000 children to graduate to government formal schools to complete primary education. We will continue to focus on our goal of helping 3OUTHÖ3UDANÖTOÖACHIEVEÖTHEÖ-ILLENNIUMÖ Development Goals of universal primary


Annual Report 2011 3

education and gender parity in primary schools in the coming years. To achieve this we are taking new initiatives to further improve our existing programmes and plan to continue our primary education PROJECTÖINÖ3OUTHÖ3UDANÖWITHÖSUPPORTÖFROMÖ 5./03 Ö5.)#%&ÖANDÖ$&)$Ö"2!#lSÖFOCUSÖ ONÖYOUTHÖISÖREÚECTEDÖINÖOURÖWORKÖWITHÖ 3,000 adolescent girls and young women who meet regularly through our clubs getting training on life skills and livelihood opportunities. Under the Common Humanitarian Fund, BRAC initiated the nutrition programme in 2011, through which communities gained awareness about infant and child care, hygiene and healthy food habits and treatment of severe malnutrition among THEÖUNDER ÙVESÖ/URÖCOMMUNITYÖHEALTHÖ promoters have treated over 30,000 children for malaria in four counties of ,AKESÖ3TATEÖANDÖOURÖHEALTHÖSTAFFÖPROVIDEDÖ in-house antenatal care for pregnant mothers. /URÖGROWTHÖINÖMICROÙNANCEÖSECTORÖHASÖ been impeded by a number of factors and taking into account the uncertainties during the transition period following the COUNTRYlSÖINDEPENDENCEÖWEÖHAVEÖTAKENÖ measures to streamline our programme. )NÖ ÖWEÖDISBURSEDÖ53$ÖÖMILLIONÖ as micro and small enterprise loans to

 Ă–BORROWERSĂ–BRINGINGĂ–THEĂ–CUMULATIVEĂ– TOTALĂ–TOĂ–53$Ă–Ă–MILLIONĂ–4HESEĂ–BORROWERSĂ– were able to improve their livelihoods through existing and new businesses. Agriculture provides a living for the vast majority of the population and to support the poor and marginal farmers, BRAC provided training to women farmers and ex-combatants to enhance their capacity in modern farming techniques and small business practices. We feel strongly that investing in agriculture will ensure THEĂ–COUNTRYlSĂ–ECONOMYĂ–ANDĂ–PROVIDEĂ– food security in the long run to its poor and growing population. In collaboration with World Food Programme and the United Nations Food and Agriculture Organisation, BRAC distributed 5.88 metric tonnes of seeds and 300 metric tonnes of food during the year. I would like to take this opportunity to COMMENDĂ–OURĂ–TEAMĂ–INĂ–3OUTHĂ–3UDANĂ– who have worked with commitment to

take advantage of every opportunity that has come our way. The quality of "2!#lSĂ–PERFORMANCEĂ–ISĂ–ATTRIBUTEDĂ–TOĂ– this remarkably competent team, their knowledge and skills. I extend my sincere thanks to the members of the governing body, whose leadership and foresight has steered the organisation to success. )Ă–THANKĂ–THEĂ–3OUTHĂ–3UDANESEĂ–GOVERNMENTĂ– ANDĂ–OURĂ–DEVELOPMENTĂ–PARTNERSĂ–INĂ–3OUTHĂ– 3UDANĂ–FORĂ–THEIRĂ–CONTINUEDĂ–SUPPORTĂ–ASĂ– we strive to create greater value in our services to contribute to the progress ANDĂ–PROSPERITYĂ–OFĂ–3OUTHĂ–3UDANĂ–


BRAC Programmes

4 Annual Report 2011

Agriculture /PERATINGÖINÖEIGHTÖCOUNTRIES Ö"2!#lSÖAGRICULTUREÖPROGRAMMESÖWORKÖWITHÖGOVERNMENTSÖTOÖENSUREÖFOODÖSECURITYÖ7EÖ build systems of production, distribution and marketing of quality seeds at fair prices; conduct research to develop better inputs and practices for the agricultural sector; offer credit support to poor farmers; and promote the use of EFÙCIENTÖFARMINGÖTECHNIQUESÖANDÖPROVENÖTECHNOLOGIESÖ5SINGÖENVIRONMENTALLYÖSUSTAINABLEÖPRACTICES ÖWEÖAREÖHELPINGÖOURÖ PARTNERÖCOUNTRIESÖBECOMEÖSELF SUFÙCIENTÖINÖFOODÖPRODUCTION

Addressing the issues of agriculture in South Sudan BRAC has been implementing an AGRICULTURALĂ–PROGRAMMEĂ–INĂ–3OUTHĂ–3UDAN Ă– addressing the urgent need for increased food security and enhancing agricultural activities in the region. Due to the PROLONGEDĂ–CIVILĂ–WARĂ–ANDĂ–INTERNALĂ–CONĂšICTĂ– INĂ–3OUTHĂ–3UDAN Ă–AĂ–HUGEĂ–PORTIONĂ–OFĂ–FERTILEĂ– land in this area had remained unutilised, and farmers were incapable of involving themselves agriculturally due to the lack

of available resources such as seeds and tools. In this programme, eligible farmers were selected and introduced to a variety of farming techniques, including the use of modern technology, organic pesticides and integrated pest management. The agriculture programme addresses the problems of poor crop productivity, a lack

BRAC agriculture extension worker James Mawei Mayom, 35, with okra at individual demonstration farm on the banks of the Nile River in Bor, Jonglei State, South Sudan.

of resources, and the large areas of fallow LANDĂ–INĂ–POST CONĂšICTĂ–3OUTHĂ–3UDANĂ–7EĂ–AREĂ– IMPLEMENTINGĂ–OURĂ–PROJECTSĂ–INĂ–3OUTHĂ–3UDANĂ– through the following approaches:


!GRICULTUREĂ–ANDĂ–&OODĂ–3ECURITY

Annual Report 2011 5

Our approach: Value chain interventions



ve Achie foodrity Secu

Farmers produce high-yield crops





 We fie thes ld test e se for m eds prod ass uctio n



 s d ds as an see e m ce e W du et th pro ark m

Establishing demonstration farms BRAC has established nine collective demonstration farms with 20 local farmers selected from each of the nine communities to work on the demonstration plots. BRAC manages the cultivation process by providing water pumps so the farmers can continue their work during dry seasons, and by giving technical support with the help of local government OFÙCIALSÖ4HEÖRESULTSÖAREÖHIGHERÖYIELDSÖANDÖ better seeds, which motivates the other farmers to use modern practices and tools to cultivate their land. All the produce from the demonstration farm goes to the FARMERSlÖCOOPERATIVE

Capacity building of the farmers in agricultural best practices 3OUTHÖ3UDANÖHASÖSIGNIÙCANTÖQUANTITIESÖOFÖ fallow land and while the majority of the people are farmers, the extended civil war has limited their ability to use this land productively. BRAC is helping the farmers, returnees and internally displaced people in building their capacities on best agricultural practicies. The farmers are trained to choose appropriate crops and ensure optimal planting, spacing, weeding, and post-harvest management.

r offe We dit cre ort p sup

We prom using ote farmingefficient techniq and pr ues techno oven logies

Facilitate distribution of agricultural seeds and tools 4HEĂ–FARMERSĂ–INĂ–3OUTHĂ–3UDANĂ–ALSOĂ– lack access to critical inputs such as agricultural seeds and tools for cultivation. BRAC, in collaboration with the United Nations Food and Agricultural Organisation (FAO), distributes agricultural tools such as hoes, pangas and sickles. They also distribute seeds, such as sorghum, maize, ground nut, okra, tomato, eggplant, bean, and cow peas amongst the farmers. Water pumps for irrigation have also been provided to the demonstration farms.


!GRICULTUREĂ–ANDĂ–&OODĂ–3ECURITY

6 Annual Report 2011

Support food distribution among farmers &OODĂ–INSECURITYĂ–INĂ–3OUTHĂ–3UDANĂ–HASĂ– its roots in several factors, including unexplored farmer capacity, lack of modern cultivation techniques and equipment, low purchasing power and inaccessibility to markets. There was ANĂ–ACUTEĂ–SHORTAGEĂ–OFĂ– Ă–METRICĂ– TONNESĂ–OFĂ–FOODĂ–INĂ–3OUTHĂ–3UDANĂ–BEFOREĂ–THEĂ– commencement of the harvesting season. To encourage the farmers to participate in agricultural activities, BRAC, in partnership with the World Food Programme (WFP), has distributed rations among them. Each farmer received adequate rations for three family members for a maximum of three months.

Provide technical advice to the farmers The agricultural coordinators, along with the community organisers, continually MONITORÖTHEÖÙELDÖACTIVITIESÖOFÖTHEÖFARMERSÖ ANDÖTHEÖCONDITIONÖOFÖTHEÖCROPSÖ$URINGÖÙELDÖ visits, they provide farmers with technical advices to improve production. Issues like pest management, storage of grains, distribution and packing are also followed up on.

Create market linkages

Growth in 2011

One of the major challenges for the farmers in producing grain at a large scale is the lack of access to markets. BRAC, in collaboration with WFP, implemented the Purchase for Progress programme INÖTWOÖSTATESÖOFÖ3OUTHÖ3UDANÖ)NÖITSÖÙRSTÖ year, a total 50 metric tonnes of maize were purchased from the farmers at a competitive price, maintaining the impetus for further progress and the maintenance of quality.

In 2011, we established nine collective demonstration farms in six states in 3OUTHĂ–3UDANĂ–!Ă–TOTALĂ–OFĂ– Ă–WORKERS Ă– comprising of 180 farmers, 900 individual demonstration farmers, 2,688 general farmers, and 168 agriculture extension workers, have been employed to work on the demonstration farms. To support famers, 5.88 metric tonnes of seeds of different varieties, and 300 metric tonnes of food were distributed in collaboration with WFP and FAO. Our programme has assisted 800 contract growers in receiving training in the best agricultural practices TOĂ–PRODUCEĂ–Ă–METRICĂ–TONNESĂ–OFĂ–GRAINSĂ– in the Central and Western Equatoria states in 2011. In addition, 300 women in Western Bahar el Gazhal were trained in modern agricultural techniques this year to enhance their capacity. We have also PROVIDEDĂ–SUPPORTĂ–TOĂ– Ă–EX COMBATANTSĂ– by training them in modern agriculture techniques, and small business practices in the Lakes and Western Equatoria states.

Reintegration of excombatants This programme was initiated to assist ex-combatants in adjusting to a civilian life, in support of the post-peace agreement of social stabilisation through agriculture and business across the Lakes and Western %QUATORIAĂ–STATESĂ–4HEREĂ–AREĂ–CURRENTLYĂ– Ă– ex-combatants involved in both states. The programme is funded by UNDP and FAO. It began in March 2010, with the tentative ending date being in March 2012.

A young woman stands at a BRAC supported Collective Demonstration Farm in Garbo village in Juba County. South Sudan.


!GRICULTUREĂ–ANDĂ–&OODĂ–3ECURITY

Annual Report 2011 7

CASE STUDY

With the proper training and support, Mariam now produces good yield during the harvest season.

-!2)!-Â&#x;50(/52Â&#x;(OWÂ&#x;FARMINGÂ&#x;ENABLEDÂ&#x;ONEÂ&#x;WOMANÂ&#x;TOÂ&#x;BECOMEÂ&#x;SELF SUFĂšCIENT

m3OUTHÖ3UDANÖWITHÖITSÖVASTÖ virgin land can be transformed to become the food basket of the region. Thank you GOVERNMENTÖOFÖ3OUTHÖ3UDAN Ö and thank you BRAC for providing me with the support and tools to grow a better life for myself and my family.�

Mariam Uphour was an underprivileged woman who lived in River Kuru Boma of Diemzubeir Payam in Raja County. To support her family, she used to grow vegetables as a source of income, mainly rigila, kudura, tomato, eggplant, and okra. (OWEVER ÖSHEÖHADÖDIFÙCULTIESÖINÖPRODUCINGÖ a good yield during the harvest season as she was employing traditional farming methods to grow her vegetables. Mariam was selected by BRAC to receive training given especially to women under THEÖ'ENDERÖ3UPPORTÖANDÖ$EVELOPMENTÖ Programme. With the knowledge gained from the training and the assistance she received from BRAC, she can now grow tomatoes on half an acre of land, establish a total plant population through line showing and mulch manure, and use Neem plants to manage pest control and

other related diseases. Within four months, SHEÖWASÖABLEÖTOÖTURNÖAÖPROÙTÖOFÖ330Ö Ö 53$Ö ÖWHICHÖWASÖMOREÖTHANÖWHATÖ she was earning previously. Undergoing the training and receiving the support from BRAC has enriched her existence, allowing her to maintain sustenance in her DAILYÖLIFEÖ3HEÖNOWÖENCOURAGESÖOTHERÖ3OUTHÖ 3UDANESEÖWOMANÖTOÖTAKEÖUPÖFARMINGÖASÖ their source of livelihood because it has helped her transform her life and enabled HERÖTOÖBECOMEÖSELF SUFÙCIENTÖ


8 Annual Report 2011

BRAC Programmes

Health 7ORKINGĂ–INĂ–EIGHTĂ–COUNTRIES Ă–"2!#lSĂ–HEALTHĂ–PROGRAMMESĂ–PROMOTEĂ–SUSTAINABLEĂ–ANDĂ–ACCESSIBLEĂ–HEALTHCAREĂ–FORĂ–THEĂ–POORĂ–INĂ– COLLABORATIONĂ–WITHĂ–BOTHĂ–THEĂ–STATEĂ–ANDĂ–PRIVATEĂ–HEALTHCAREĂ–SECTORSĂ–7ORKINGĂ–INĂ–THEIRĂ–OWNĂ–SLUMSĂ–ANDĂ–VILLAGES Ă–"2!#lSĂ–kARMYlĂ– of self-employed Community Health Promoters (CHPs) helps whole communities stay healthy, with a groundbreaking door-to-door approach. These workers create a cost-effective bridge between underserved poor communities and formal healthcare systems. BRAC also organises health meetings to encourage an exchange of knowledge, thus empowering people to take care of themselves, their families and neighbours.

Confronting the health needs of South Sudan The BRAC essential healthcare PROGRAMMEÖINÖ3OUTHÖ3UDANÖISÖAÖSCALABLEÖ model of community healthcare. The overall goal of the health programme is to improve health conditions and increase access to healthcare by providing basic health services in communities where "2!#ÖHASÖESTABLISHEDÖMICROÙNANCEÖ groups. One member of each BRAC borrowing group is designated and trained as a community health promoter (CHP). They serve the health needs of the entire community, with particular attention being paid to poor women and children.

BRAC takes a multi-pronged approach to community health education. We offer community health forums on issues such as malaria, tuberculosis and HIV prevention, family planning and maternal health, as well as sanitation.

Within our generation we have seen a worldwide sharp reduction from deaths related to treatable diseases, we owe a lot of this to BRAC.

Jeffrey Sachs

Director, Earth Institute Columbia University

During door-to-door antenatal visit, Mariana Achan (49), a BRAC Community Health Volunteer, visits Agnes Achan, at Gumbo village in Juba County. South Sudan.


Annual Report 2011 9

Health

Basic curative services

Family planning

Growth in 2011

CHPs are trained to diagnose and treat some basic ailments such as diarrhoea, dysentery, common cold, helminthiasis, anaemia, ringworm, scabies, hyperacidity and angular stomatitis. They refer individuals with more serious conditions to local public and private health facilities. CHPs earn a small income by selling over-the-counter medicines to the patient groups. It also helps reduce transmission of infections and supports appropriate treatment of diseases through early case detection. In line with the free healthcare initiative, free services are provided for pregnant and breastfeeding mothers and CHILDRENÖUNDERÖÙVEÖ

During regular household visits, the CHP encourages women to use modern methods of contraception where there ISĂ–AĂ–DEMANDĂ–3HEĂ–PROVIDESĂ–CLIENTSĂ–WITHĂ– birth control pills and condoms. For other temporary or permanent methods, couples are referred to government primary and secondary healthcare facilities.

Under the Common Humanitarian Fund (CHF), BRAC initiated the nutrition programme for six months (June through November) in 2011. After an extension at no cost, the programme was approved for extension up to April 2012. The objective of the programme is to provide emergency nutrition support to children suffering from SEVEREĂ–ACUTEĂ–MALNUTRITIONĂ–3!- Ă–4HROUGHĂ– this programme, communities are gaining awareness about infant and young child feeding (IYCF), hygiene, sanitation, and healthy food habits, capacity building offered by government healthcare providers, and in what ways NGO staff PROVIDEĂ–TREATMENTĂ–FORĂ–3!-Ă–CASESĂ–AFTERĂ– nutritional assessment. BRAC currently operates three outpatient therapeutic programme (OTP) centres for the treatment OFĂ–3!-Ă–CASE

Malaria control $URINGÖHOUSEHOLDÖVISITS ÖTHEÖ#(0ÖIDENTIÙESÖ suspected cases of malaria and refers the patients to the nearest government health CENTRESÖ3HEÖFOLLOWSÖUPÖTOÖDETERMINEÖTESTÖ results and see if the patients are taking their anti-malarial medication. A relative of the patient is put in charge of supervising the medication intake according to their prescription. The CHP then conducts AÖFOLLOW UPÖVISITÖTOÖENSUREÖTHEÖPATIENTlSÖ recovery and to make sure that he or she has not developed further complications. The CHP keeps records of this information in her household visit register. We are delivering home-based management of malaria as part of supporting the Child 3URVIVALÖ0ROGRAMMEÖOFÖTHEÖ-INISTRYÖOFÖ (EALTHÖOFÖTHEÖ'OVERNMENTÖOFÖ3OUTHÖ3UDANÖ

Tuberculosis control CHPs implement a well-tested, community-based approach for increasing and sustaining TB case detection and treatment. During household visits, CHPs ask simple questions related to suspected TB cases based on symptoms. When a SUSPECTEDÖ4"ÖVICTIMÖISÖIDENTIÙED ÖTHEÖ#(0Ö encourages that person to be tested at a NEARBYÖGOVERNMENTÖFACILITYÖ3HEÖEXPLAINSÖ the dangers that TB can pose to the sick person as well as the rest of the family. 3HEÖTHENÖFOLLOWSÖUPÖONÖTHEÖPATIENTÖTOÖ determine the test results and to advise accordingly.

Reproductive healthcare /NEÖOFÖ"2!#lSÖPRIMARYÖCONCERNSÖISÖTOÖ increase awareness on reproductive healthcare and how to utilise the SERVICESÖAVAILABLEÖ4OÖFULÙLÖTHISÖOBJECTIVE Ö CHPs identify pregnant women during their household visits and inform the programme assistants, who then perform antenatal check-ups in the home, raising awareness of pregnancy care and possible pre-natal danger signs. The CHP keeps a tab on whether her clients have had their Tetanus Toxoid vaccine. 3HEÖALSOÖRAISESÖAWARENESSÖREGARDINGÖTHEÖ importance of Voluntary Counselling and 4ESTINGÖ6#4 ÖFORÖ()6!)$3 ÖANDÖPREVENTINGÖ mother to child transmission of HIV.

3OMEÖOFÖTHEÖHIGHLIGHTSÖFORÖÖINCLUDEÖ  ÖFREEÖIN HOMEÖANTENATALÖCHECK UPSÖ performed by our team and 3,225 health forums conducted in the communities, CONSISTINGÖOFÖ ÖPARTICIPANTSÖ3IXÖ branches are currently in operation in Juba, with an additional four branches in Rumbek. We are employing 180 community health promoters who have TREATEDÖ ÖPATIENTSÖINÖ ÖWITHÖAÖ FURTHERÖ ÖCHILDRENÖUNDERÖÙVEÖTREATEDÖ for malaria in four counties of Lakes STATE ÖANDÖÖSEVEREÖACUTEÖMALNUTRITIONÖ CASESÖTREATEDÖTHROUGHÖTHEÖTHREEÖ/40lSÖ established this year. A total of 360 CHPs received training ONÖ)9#& ÖWITHÖANÖADDITIONALÖÖ.'/ community-based organisation staff HAVINGÖBEENÖTRAINEDÖONÖITÖASÖWELLÖ!LSO ÖÖ government health staff were being trained ONÖ)NTEGRATEDÖ-ANAGEMENTÖOFÖ3EVEREÖ !CUTEÖ-ALNUTRITIONÖ)-3!- ÖINÖ


10 Annual Report 2011

Health

CASE STUDY

Proper identification and prompt treatment has restored Dut to full health.

DUT: Three year old girl cured from malaria

“Thank you BRAC, and Ms. Rebeka for curing me. I was very ill, and could not move or eat, but after receiving the malaria treatment, my health has greatly improved.â€? Dut is a three-year-old girl and the fourth child of Elijabet Ayam and Danial Mayom. 3HEĂ–LIVESĂ–WITHĂ–HERĂ–FAMILYĂ–INĂ–.YANKOTĂ– under Matangai Payam in Rumbek. One day, Dut was struck with high fever and severe joint pain in the middle of the night. Her mother Elijabet knew that her daughter was suffering from malaria, as she was informed on how to identify the symptoms, and immediately took her to see the nearest BRAC community-based distributor for treatment and assistance. Dut received free and prompt treatment from Rebeka Ayam, the distributor, who THENĂ–ADVISEDĂ–$UTlSĂ–MOTHERĂ–TOĂ–CONTINUEĂ–THEĂ– treatment for the next three days. After this period of time, Dut was completely cured and restored to good health.

Following decades of civil war, the HEALTHCAREÖSYSTEMÖINÖ3UDANÖISÖSTILLÖ developing. The lack in health service infrastructure, poverty, illiteracy and lack of adequate food supplies have taken a heavy toll on the health of people, with high rates of maternal and child mortality ANDÖMORBIDITYÖ5NDER ÙVEÖMORTALITYÖISÖVERYÖ high and children are susceptible to die from treatable illnesses such as malaria, pneumonia and diarrhoea. Adults too have a high incidence of malaria cases INÖTHEÖ3OUTHÖOFÖTHEÖCOUNTRYÖ4HEÖ7ORLDÖ Health Organisation estimates that health coverage is only 30 per cent.

)NÖTHEÖ,AKESÖSTATEÖOFÖ3OUTHÖ3UDAN Ö"2!#Ö uses a network of community-based distributors, who are women selected from local communities and who have been trained to identify cases of malaria and diarrhoea in children ranging from six MONTHSÖTOÖÙVEÖYEARSÖOLDÖ%VERYÖDAY ÖTHESEÖ committed distributers provide door-todoor services to the communities in four counties, covering more than 100,000 children in total. The community-based distributors also refer those children suffering from severe cases of malaria to the nearest primary healthcare centres. As a community based distributor, Rebeka Ayam received training on malaria 3INCEÖ ÖASÖPARTÖOFÖTHEÖ#HILDÖ3URVIVALÖ IDENTIÙCATIONÖANDÖTREATMENTÖPROCEDURESÖ 0ROGRAMMEÖOFÖTHEÖ'OVERNMENTÖOFÖ3OUTHÖ from BRAC, after which she began her 3UDAN Ö"2!#ÖHASÖBEENÖAÖSUB RECIPIENTÖOFÖ work in treating malaria patients. Each the Global Fund to Fight Aids, Tuberculosis month she treats an average of 10 to 15 ANDÖ-ALARIAÖ2OUNDÖÖFORÖMALARIAÖPREVENTIONÖ patients, and by now everyone in her ANDÖTREATMENTÖOFÖCHILDRENÖUPÖTOÖÙVEÖ village knows her very well, respecting and years of age. The programme is being honouring the tremendous work she does IMPLEMENTEDÖTHROUGHÖAÖNETWORKÖOFÖ Ö every day. community health promoters, who were trained to identify signs and symptoms of malaria in children and provide artemisininbased combination therapy.


BRAC Programmes

Annual Report 2011 11

Adolescent Girls Initiative

"2!#lSÖPROGRAMMESÖFORÖADOLESCENTSÖAREÖDESIGNEDÖTOÖSOCIALLYÖANDÖÙNANCIALLYÖEMPOWERÖTHOSEÖBETWEENÖTHEÖAGESÖOFÖ ÖANDÖÖ4ARGETINGÖVULNERABLEÖTEENAGEÖGIRLS ÖWEÖPROVIDEÖAÖSAFEÖSPACEÖFORÖTHEMÖTOÖSOCIALISEÖANDÖRECEIVEÖMENTORINGÖ ANDÖLIFEÖSKILLSÖTRAININGÖ7ITHÖNETWORKSÖOFÖTHESEÖGIRLSlÖCLUBSÖACTIVEÖINÖÙVEÖCOUNTRIES ÖWEÖCOMBINEÖTHISÖCOMPONENTÖWITHÖ ÙNANCIALÖLITERACYÖTRAININGÖANDÖOFFERINGÖCUSTOMISEDÖMICRO LOANSÖTHATÖCONTRIBUTEÖTOÖTHEÖSOCIALÖANDÖÙNANCIALÖEMPOWERMENTÖ of adolescent girls. This in turn helps prevent early marriages and leads to a more stable future for the next generation.

Empowering adolescent girls Decades of struggle due to the civil war in WHATÖUSEDÖTOÖBEÖSOUTHERNÖ3UDANÖANDÖISÖ NOWÖ3OUTHÖ3UDANÖHASÖLEFTÖTHEÖMEMBERSÖ of the society experiencing changes in traditional family life as well as changing societal structure. For example, the reduction in the male population in many areas has resulted in women taking on what were previously considered to be male responsibilities. BRAC has extensive experience in Bangladesh with regards to adolescent girls who are faced with poverty and are often unaware of their basic human rights. The knowledge that has been gained has been useful in launching a programme for adolescent GIRLSÖINÖ3OUTHÖ3UDANÖWITHÖTHEÖSUPPORTÖOFÖ World Bank. Even though the context of "ANGLADESHlSÖADOLESCENTÖPROGRAMMEÖISÖ DIFFERENTÖFROMÖTHATÖOFÖ3OUTHÖ3UDAN ÖTHEÖ adolescent girls initiative (AGI) programme ISÖRUNNINGÖSUCCESSFULLYÖANDÖHASÖBENEÙTTEDÖ the lives of many adolescent girls since its inception almost two years ago.

BRAC has established 100 AGI clubs in the four states of Central Equatoria, Eastern Equatoria, Jonglei and Lakes. Each club serves 30 adolescent girls and is located no more than 15 minutes walking distance from the homes of most participants in order to ensure the safety and security of those selected for the project. This project is intended as a pilot, to be scaled up and replicated in all 10 states if successful. The objective of this programme is to provide a space for adolescent girls where they are able to exercise their freedom to express themselves, learn, and acquire VALUABLEÖLIFEÖSKILLSÖWHICHÖWILLÖBENEÙTÖTHEMÖ and their communities. The clubs serve as centres for various trainings, and to provide the girls and young women with a safe place to socialise and interact with their peers and mentors. Club members receive life skills training and gain an understanding of critical social issues, including sexual and reproductive health, early marriage, gender-based violence, drug abuse and other relevant topics. The training unit consists mostly of international staff, who train the local programme staff MEMBERSÖANDÖOFÙCERS ÖWHOÖLATERÖTEACHÖTHEÖ club leaders and members.

These girls and young women have held SIGNIÙCANTÖRESPONSIBILITIESÖFORÖKEEPINGÖ their family alive under overbearing circumstances. They carry the additional responsibility of sustaining their family amidst circumstances of low status, poor access to income generation activities, few and limited education opportunities, and The programme incorporates livelihood little or no legal redress. training which offers trainings in both agricultural and non-agricultural wage 4HEÖADOLESCENTÖGIRLSÖINITIATIVEÖINÖ3OUTHÖ and self-employment sectors to the 3UDANÖISÖAÖPROJECTÖWHICHÖPROMOTESÖTHEÖ PARTICIPANTSÖ4HEÖSPECIÙCÖCURRICULUMÖANDÖ social and economic empowerment of training modules depend on the results adolescent girls and young women ages of an extensive labour market survey and ÖTOÖ ÖANDÖASÖAÖRESULTÖENABLEÖTHEMÖTOÖ the demands of the locality. Examples of CONDUCTÖTHEMSELVESÖWITHÖCONÙDENCEÖANDÖ trainings include raising domestic animals, independence in their communities and tailoring and embroidery, photography, LEADÖDIGNIÙEDÖLIVESÖÖÖ computer technology, salon activities and hotel management.

The girls and young women are educated ONÖÙNANCIALÖLITERACY ÖWHICHÖPROVIDESÖ them with a better understanding of BOTHÖPERSONALÖÙNANCESÖANDÖTHEÖÙNANCIALÖ ASPECTSÖOFÖSMALLÖBUSINESSESÖ3AVINGSÖANDÖ credit facilities are provided to give them access to savings and credit opportunities ANDÖTOÖORIENTÖTHEMÖTOWARDSÖÙNANCIALÖ empowerment from an early age. The AGI will encourage the girls and young women to understand the importance of savings while providing them with access to credit facilities as a source for seed capital to start a small business. BRAC puts emphasis on the importance of community involvement in all of its programmes. Regular meetings are held with committees of parents, local leaders and members of the community to raise awareness and build community support for AGI participants and the programme activities.

Growth in 2011 In 2011, 100 safe spaces were established in four states – Central Equatoria, Eastern Equatoria, Jonglei and Lakes. With the help of community organisers we have had 3,000 adolescent girls from the POORESTÖHOUSEHOLDSÖIDENTIÙEDÖANDÖENROLLEDÖ in the programme. 100 adolescent leaders were trained in various basic life skills. Life SKILLSÖTRAININGÖANDÖÙNANCIALÖLITERACYÖTRAININGÖ was provided and practiced mid-year. The livelihood training is an ongoing process, WITHÖAÖTOTALÖOFÖÖGIRLSÖCURRENTLYÖINVOLVEDÖINÖ training. More participants are expected as the programme expands.


12 Annual Report 2011

Adolesent Girls Initiative

CASE STUDY

Christine attended a computer training course, which has helped her tremendously in her work.

CHRISTINE: An inspirational computer operator

“I am thankful to receive a job from BRAC. My children are MYĂ–Ă™RSTĂ–PRIORITY Ă–ANDĂ–)Ă–HOPEĂ–TOĂ– give them the best education and use the valuable KNOWLEDGEĂ–)lVEĂ–RECEIVEDĂ–TOĂ– ensure stability for my family.â€?

Christine has been employed as a COMPUTERÖOPERATORÖATÖ"2!#lSÖCOUNTRYÖ OFÙCEÖINÖ*UBA Ö3OUTHÖ3UDAN ÖSINCEÖ*UNEÖ 2010. Before joining BRAC, she was an adolescent leader in one of the clubs in THEÖ*UBAÖAREAÖ3HEÖISÖSTILLÖAÖMEMBERÖOFÖ the very same club and is an inspiration to those around her. After Christine attended the six-week computer training course as part of the AGI project, she applied for an open position at BRAC. Married with two kids, her aim is to provide her children with a good education in order to improve the quality of their lives.

Christine feels that her life has completely changed since joining the club. The knowledge and practical skills she gained HAVEÖGIVENÖHERÖTREMENDOUSÖCONÙDENCEÖTOÖ live her life with dignity and without fear.


BRAC Programmes

Annual Report 2011 13

Education With education programmes in six countries, BRAC has built the largest secular private education system in the world, with 36,000 schools giving disadvantaged youth a second chance at learning. Complementing mainstream school systems with innovative teaching methods and materials, BRAC opens primary schools in communities unreached by formal education systems, bringing joyful learning to millions of children, particularly those affected by extreme poverty, violence, displacement or discrimination. At the pre-primary level, we target underprivileged children to prepare them for entry into mainstream primary school. At the secondary level, we provide need-based trainings, student mentoring initiatives, and e-learning materials to improve the mainstream secondary education system.

Giving underprivileged children an equal chance at education BRAC pioneered a non-formal education PROGRAMMEÖINÖPOST CONÚICTÖ3OUTHÖ3UDAN Ö as a means to support the government in promoting peace, along with sustainable and equitable development. The goal of the education programme is to prepare students for admission to the formal government school system at the grade 5 level. )NÖTHEÖNEWLYÖINDEPENDENTÖNATIONÖOFÖ3OUTHÖ 3UDAN Ö"2!#ÖHASÖPROVIDEDÖACCESSÖTOÖ education for children who have never had the opportunity to attend school or have dropped out of primary school. Our approach to education is drawn from the innovations of our low-cost, non-formal primary education model that operates nationwide in Bangladesh and Afghanistan. This model has been effective and designed in such a way that its methods can be adapted to meet the needs of STUDENTSÖINÖOTHERÖCOUNTRIESÖSUCHÖASÖ3OUTHÖ 3UDANÖ The programme is designed to provide children with important intellectual skills, such as literacy and problem solving, which will ultimately empower individuals to overcome poverty and succeed in the future. The majority of children from poor families do not attend school or they eventually drop out due to various reasons. We have taken these various reasons into account and developed our programme TOÖCATERÖTOÖTHESEÖSTUDENTSlÖCIRCUMSTANCESÖ )TÖWASÖIMPORTANTÖTHATÖWEÖELIMINATEÖÙNANCIALÖ costs for students or guardians, create ÚEXIBLEÖSCHOOLÖSCHEDULES ÖMAINTAINÖ small class sizes managed by female teachers, create child-friendly teaching

environments, incorporate a relevant curriculum to provide basic education and life skills, give little to no homework, ensure supportive supervision, and encourage parents and the community to participate in the management of the schools. Our focus is on providing non-formal education for children in such a manner that after completion they can continue their education within the formal government school system. Our students are given mid-term reviews which help determine their progress. We believe it is in the best interest of both the education programme and the students to conduct a basic training for new teachers, also consisting of refresher training courses to ensure and maintain the quality of teaching and learning experience for pupils.

Details of the programme We conduct door-to-door surveys to identify prospective students and teachers ANDÖCROSS CHECKÖOURÖÙNDINGSÖWITHÖLOCALÖ EDUCATIONÖOFÙCIALSÖTOÖIDENTIFYÖDROPOUTSÖ ANDÖTOÖPREVENTÖDUPLICATIONÖ3ELECTEDÖ future teachers are hired by BRAC and given 12 days of basic teacher training, designed to be proactive and participatory, placing emphasis on practice and role-play teaching. The teacher training includes topics such as basic concepts of education, child psychology, different teaching and learning techniques and how to support children with special needs. We monitor our programme by recruiting one local female community organiser for EACHÖÖSCHOOLSÖTOÖBEÖSUPERVISEDÖ3HEÖ

3IRÖ&AZLEÖ(ASANÖ!BEDlSÖLIFEÖ and career embody the values OFÖ7)3%Ö(EÖRECOGNISEDÖTHATÖ education is a passport to social inclusion and opportunity. He discovered a successful formula, and he adapted and expanded it – first in Bangladesh and then in other countries. As a direct consequence, millions of people around the world lead healthier, happier and more productive lives. His vision, resourcefulness and determination are vital ingredients of the innovation process and he stands as an example to all of us who believe that education, more than anything else, determines the destiny of individuals and societies.

H.E. Dr. Abdulla bin Ali Al-Thani

7)3%Ă–7ORLDĂ–)NNOVATIONĂ–3UMMITĂ–FORĂ– Education) Chairman


14 Annual Report 2011

Education

BRAC school in Cuei Atem Village, Bor, Southern Sudan.

visits each school twice a week to ensure the attendance of the students and the progress in learning. Teachers also receive monthly refresher training throughout the school cycle to hone and strengthen their abilities. All teachers are women, which helps parents feel comfortable in sending their daughters to school and serves to increase the status of women in the community. A school building is rented in the local community, normally a one-room structure made of bamboo or mud with a metal roof, no further than one kilometer walking distance from the STUDENTSlÖHOUSESÖ3TUDENTSÖAREÖTAUGHTÖAÖ curriculum that encompasses both basic primary education as well as relevant practical skills, such as topics related to health and agriculture. Flexible school times and a little-to-no-homework policy allow children to complete daily chores at home and engage in productive activities. 4HEREÖAREÖZEROÖÙNANCIALÖCOSTSÖTOÖPARENTSÖ and students, which, combined with the relevant curriculum results in extremely low dropout rates. BRAC continues to work WITHÖTHEÖGOVERNMENTÖOFÖ3OUTHÖ3UDANÖTOÖ achieve education for all, especially for girls. The programme contributes to the basic education of the most deprived CHILDRENÖINÖ3OUTHÖ3UDANÖWHILEÖALSOÖ promoting increased female participation in education, not only as students but as TEACHERSÖANDÖPARAPROFESSIONALSÖINÖTHISÖÙELD

Growth in 2011 BRAC schools are located in Juba and Yei in Central Equatoria state, Bor in Jonglei state, Rumbek in Lakes state, and Torit in Eastern Equatoria state. We ESTABLISHEDÖÖSCHOOLSÖWITHÖFUNDINGÖ FROMÖ"2!#Ö53! Ö0ETROFAC ÖANDÖ3TROMMEÖ Foundation in 2010. As a result of our commitment to scaling up, we have since provided 225 schools with additional FUNDÖFROMÖ#OMICÖ2ELIEFÖANDÖ3TROMMEÖ &OUNDATIONÖ7EÖHAVEÖ ÖOUT OF SCHOOLÖ children, 65 per cent being girls, who are continuing their education in our nonFORMALÖEDUCATIONÖPROGRAMMEÖ!LMOSTÖÖ per cent of the children come from families THATÖAREÖSUPPORTEDÖBYÖOURÖMICROÙNANCEÖ programme. We continue to focus on our GOALÖOFÖHELPINGÖ3OUTHÖ3UDANÖTOÖACHIEVEÖ the Millennium Development Goals of universal primary education and gender parity in primary schools by 2015. BRAC has implemented its education programme in numerous other countries,

with the intention to share the knowledge GAINEDÖTHROUGHÖ"2!#lSÖEXPERIENCES Ö encountered challenges, and lessons learnt. Our vision is to empower students around the world, for which we have received global recognition and have gained a strong reputation. We have been fortunate to have other institutions, such ASÖ5.)#%&Ö!.$Ö5./03Ö5NITEDÖ.ATIONSÖ /FÙCEÖFORÖ0ROJECTÖ3ERVICES ÖRECOGNISEÖOURÖ achievements and support our mission and goals by providing funding to our education programmes. We have made great achievements in our education programme. BRAC promotes further growth and taking on new initiatives to improve our existing programmes. In 2012, we plan to continue OURÖPRIMARYÖEDUCATIONÖPROJECTÖINÖ3OUTHÖ 3UDAN ÖSUPPORTEDÖBYÖ5./03 ÖACTIVEÖINÖ Lake states. Another initiative to be taken is the Youth Lead project, supported by UNICEF,and implemented in Upper Nile, Jonglei state).


Annual Report 2011 15

Education

CASE STUDY

Despite her hurdles, Mary is determined to fulfill her dream of becoming a member of parliament.

MARY ABD-ULAH: With BRAC, “anything is possible�

“Although there may be Ă™NANCIALĂ–OBSTACLESĂ–THATĂ–MYĂ– stepmother and I will face trying to pursue my higher education, I am determined to follow my dreams. BRAC HASĂ–GIVENĂ–MEĂ–AĂ–NEWĂ–LIFEĂ–Ă™LLEDĂ– with friends and support, and the hope that anything is possible.â€?

Mary Abd-ulah is a 12-year-old girl FROMĂ–3OUTHĂ–3UDANĂ–WHOĂ–BELONGSĂ–TOĂ–THEĂ– Nyangwara tribe of Yei. From a young age, she was faced with challenges, such as the absence of her mother in her life, resulting in her being raised by her father and step-mother. Like many other children INĂ–3OUTHĂ–3UDAN Ă–-ARYĂ–WASĂ–AĂ–VICTIMĂ–OFĂ–THEĂ– CONĂšICTĂ–WHICHĂ–LEFTĂ–CHILDREN Ă–FAMILIESĂ–ANDĂ–THEĂ– country on a larger scale in a devastating state. In 2000, her life was turned upside down when her father was killed by rebels while returning from Yei to Juba. His

death left Mary as an orphan but she was fortunate to have her stepmother present in her life, who took the responsibility to continue raising her. 3HEÖHASÖBEENÖSTUDYINGÖATÖTHEÖ"2!#Ö primary school and is currently enrolled INÖ3TANDARDÖÖ$ESPITEÖALLÖTHEÖHURDLESÖ she has dealt with, her great interest in education and literacy has remained at the COREÖOFÖHERÖBEINGÖ3HEÖHASÖHADÖAÖDESIREÖ TOÖÙNISHÖPRIMARY ÖSECONDARYÖANDÖHIGHERÖ EDUCATIONÖINÖTHEÖPURSUITÖOFÖFULÙLLINGÖHERÖ dreams to be a member of parliament. 3HEÖISÖWELLÖAWAREÖTHATÖINÖORDERÖTOÖDOÖSO Ö SHEÖMUSTÖBEÖLITERATEÖANDÖQUALIÙED ÖWHICHÖ can only be achieved if she receives an adequate education. Mary has been privileged to receive her education from BRAC, which has been of no cost to her stepmother. As she is ÙNISHINGÖ3TANDARDÖÖATÖTHEÖ"2!#Ö3CHOOL Ö she is obliged to join the government SCHOOLÖFROMÖ3TANDARDÖÖ&ROMÖNOWÖON Ö INÖCONTRASTÖTOÖTHEÖ"2!#Ö3CHOOLÖWHICHÖ WASÖOFÖNOÖCOST ÖITÖWILLÖBEÖDIFÙCULTÖFORÖHERÖ stepmother to pay school fees when Mary is admitted to the government school.

Hence, the only alternative would be that -ARYÖÙNDSÖAÖJOBÖANDÖHELPSÖHERÖSTEPMOTHERÖ cover the expenses for her school fees. BRAC is trying to help this girl with support FROMÖMICROÙNANCEÖORÖOTHERÖPROGRAMMESÖ best suited for her condition to create a job opportunity, so that she can come out OFÖPOVERTYÖANDÖATÖTHEÖSAMEÖTIMEÖÙNISHÖHERÖ EDUCATIONÖANDÖFULÙLLÖHERÖDREAMS Mary has developed a passion to serve HERÖNATIONÖÖ3HEÖCONDEMNSÖVIOLENTÖACTSÖ and promotes self-righteousness in her own daily life. Even though the war ended after two decades of struggle, she feels that the people are still scared and DEPRIVEDÖOFÖKNOWLEDGEÖ3HEÖENVISIONSÖAÖ PROSPEROUSÖ3OUTHÖ3UDAN ÖMOREÖPEACEFUL Ö WITHÖSUFÙCIENTÖGOVERNMENTÖSCHOOLÖFUNDSÖ and support so that children can be given quality education and use their voice for liberty and truth.


BRAC Programmes

16 Annual Report 2011

Microfinance

)NNOVATIVE Ö CLIENT FOCUSEDÖ ANDÖ SELF SUSTAINABLE Ö THEÖ "2!#Ö MICROÙNANCEÖ PROGRAMMEÖ ISÖ AÖ CRITICALÖ COMPONENTÖ OFÖ OURÖ holistic approach to support livelihoods. Over the course of the last four decades, we have grown to become one of THEÖWORLDlSÖLARGESTÖPROVIDERSÖOFÖÙNANCIALÖSERVICESÖTOÖTHEÖPOOR ÖPROVIDINGÖTOOLSÖTHATÖMILLIONSÖCANÖUSEÖTOÖBETTERÖMANAGEÖ their lives.

Improving socio-economic positions in South Sudan 3INCEÖOURÖLAUNCHÖINÖ Ö"2!#ÖHASÖ grown to become the largest NGO and PROVIDERÖOFÖMICROÙNANCEÖINÖ3OUTHÖ3UDANÖ -ICROÙNANCEÖISÖATÖTHEÖHEARTÖOFÖ"2!#lSÖ integrated approach for alleviating poverty. We now operate 26 branches in seven STATESÖOFÖ3OUTHÖ3UDAN ÖCOVERINGÖ Ö communities with more than 23,980 MICROÙNANCEÖMEMBERSÖ!SÖOFÖ ÖWEÖ DISBURSEDÖ53$ÖÖMILLIONÖINÖLOANSÖTOÖ poor women. "2!#lSÖMICROÙNANCEÖPROGRAMMEÖHASÖ been designed to provide a large number of poor people with a reliable access TOÖCOST EFFECTIVEÖÙNANCIALÖSERVICESÖ Community partnerships and institution building are essential for the marginalised if

they are to change their economic, social, and political conditions. We deliver our MICROÙNANCEÖANDÖRELATEDÖPROGRAMMESÖBYÖ organising poor women into groups who come together to improve their socioeconomic position. "2!#lSÖMICROÙNANCEÖBRANCHÖOFÙCESÖ conduct area surveys and consult with community leaders and local elders to select 10 to 20 members for each group. The group is then sub-divided into groups OFÖÙVE ÖEACHÖWITHÖTHEIRÖOWNÖELECTEDÖLEADERÖ The members of the small groups take co-responsibility to solve peer repayment problems. New borrower groups meet four times before any loan disbursement takes place. After that, they meet weekly

to discuss credit decisions with their DEDICATEDÖ"2!#ÖCREDITÖOFÙCERÖANDÖTOÖMAKEÖ their loan repayments. BRAC provides training and technical assistance to its members and others in the community, enabling them to earn more income from existing activities and to start new ones. At the core of the programme are microLOANSÖ4HESEÖLOANSÖAREÖSPECIÙCALLYÖ designed for poor women as a means to encourage and assist them in undertaking income generating activities. Borrowers range in age from 18 to 50 years with little or no education, and are not served BYÖOTHERÖMICROÙNANCEÖINSTITUTIONSÖ%ACHÖ WOMANÖCANÖBORROWÖBETWEENÖ53$ÖÖTOÖ 53$Ö Ö"ORROWERSÖTYPICALLYÖOPERATEÖ

Jesfin Seama (38, left) is the group leader of the microfinance group in Gudule. She is a member of the group since 2010 and has taken two loan since then of SDG 400 and 700. She invested her loan in trade as she sells cooking oil, tomato, onion, etc in the local area.


Microfinance

Annual Report 2011 17

Our approach: Step-by-step economic development :4,SVHUZ MYVT THPUZ[YLHT IHURZ

4PJYVLU[LYWYPZL SVHUZ

"2!#lSĂ–MICROFINANCEĂ– programme reliably serves millions each year - a rarity anywhere. Recent improvements in products and delivery mechanisms further allow BRAC to deliver better financial services to the poor in the years to come.

4PJYVSVHUZ

;HYNL[LKHZZL[ NYHU[ZHUK ZVM[SVHUZ

Gregory C. Chen 2EGIONALĂ–2EPRESENTATIVEĂ–FORĂ–3OUTHĂ–!SIA Consultative Group to Assist the Poor (CGAP)

Growth in 2011

businesses that provide products or services to their local communities. Women with seasonal businesses, such as farming related activities, may also be eligible for shorter term loans. The microloan services are easily accessible due to the community organisers directly reaching the poor women and meeting with them in THEIRĂ–VILLAGESĂ–ORĂ–ATĂ–AĂ–MEMBERlSĂ–HOMEĂ–!SĂ–AĂ– result, women do not incur any travel costs and minimise time spent away from their homes and their businesses.

3OMEĂ–OFĂ–THEĂ–KEYĂ–FEATURESĂ–OFĂ–MICRO loans include loan repayment in small weekly instalments, no requirement for physical collateral, life insurance, competitive interest rates, and services being available in both rural and urban areas. The micro-loans are utilised to run a variety of ventures, such as operating a retail store, a bar, a drinks shop, food vending or a local beer brewery, charcoal selling, selling raw fruits and vegetables, selling second-hand clothes and shoes, running a beauty parlour, cultivating agriculture, poultry and livestock rearing, and tailoring.

As of 2011, we have 26 branches in seven out of 10 states, namely in Central Equatoria, Eastern Equatoria, Western Equatoria, Jonglei, Lakes, Upper Nile, and Western Bahr el Gazal. We currently HAVEÖ ÖMEMBERSÖINÖOURÖMICROÙNANCEÖ GROUPS ÖWITHÖ ÖBORROWERSÖ)NÖ Ö we added new groups, now totalling 1,803 groups, to accommodate the growing number of members. We are now employing 86 staff members in our MICROÙNANCEÖTEAMÖ!NÖAMOUNTÖOFÖ53$Ö ÖMILLIONÖWASÖDISBURSEDÖTHISÖYEAR Ö BRINGINGÖTHEÖCUMULATIVEÖTOTALÖTOÖ53$ÖÖ million.


18 Annual Report 2011

Microfinance

Joharil’s successful enterprise has now given her the financial security to send her children to school, and live comfortably.

JOHARIL JOHN: A success story of a green grocer

“Thanks to BRAC, my family and I are very happy. My children are going to school, and me and my husband are operating successful enterprises, which lets us live comfortably.�

Joharil John is a member of one of "2!#lSÖMANYÖMICROÙNANCEÖGROUPSÖ3HEÖ works as a green grocer, and lives with her husband and their seven children. Before SHEÖBECAMEÖPARTÖOFÖTHEÖMICROÙNANCEÖ programme, her family was living in abject POVERTYÖ3HEÖWASÖRUNNINGÖAÖSMALLÖRETAILÖ shop from her home, but because they did not have a permanent house, it was DIFÙCULTÖFORÖHERÖBUSINESSÖTOÖPROSPERÖANDÖ TURNÖAÖPROÙTÖ!SÖAÖRESULTÖOFÖTHEIRÖECONOMICÖ situation, neither she nor her husband were able to earn an adequate income to

enrol their seven children in school. Their situation was grim and their meals were irregular, as the cost of feeding the entire family was too high. *OHARILÖÙRSTÖLEARNEDÖABOUTÖ"2!#ÖANDÖTHEÖ MICROÙNANCEÖSERVICESÖPROVIDEDÖWHENÖAÖ survey was conducted in her village in Ö4HOUGHÖHESITANTÖATÖÙRST ÖSHEÖSOONÖ joined the organisation, taking out her ÙRSTÖLOANÖOFÖ330ÖÖ53$Ö ÖINÖÖ Fully utilising her loan, she constructed a permanent shop for her business, and purchased additional inventory for the SHOPÖ3HEÖTOOKÖOUTÖHERÖSECONDÖLOANÖTHEÖ FOLLOWINGÖYEARÖFORÖ330ÖÖ53$Ö Ö and used the loan to buy a refrigerator for her shop so that she could sell cold soft DRINKSÖ3HEÖALSOÖUSEDÖAÖPARTÖOFÖTHEÖPROÙTSÖ from her business to start construction of a permanent house for her family with the help of her husband. In 2010, she took OUTÖHERÖTHIRDÖLOANÖFORÖ330Ö Ö53$Ö  ÖTOÖINCREASEÖTHEÖSUPPLYÖOFÖGOODSÖ in her shop as customer demand was increasing. From the surplus income she

generated that year, she supported her husband in developing a clinic at their now permanent residence. 7ITHÖTHEÖÙNANCIALÖSUPPORTÖPROVIDEDÖ by BRAC, Joharil is now able to send all her children to school with the income she generates from her BUSINESSÖVENTUREÖ(ERÖHUSBANDlSÖ clinic has also been very successful, FULÙLLINGÖTHEÖMEDICINALÖANDÖ pharmaceutical needs of those in their village, all from the convenience of their new home; and whenever their children are ill, Joharil, similar to other community members, can obtain the medicine for their ailments FROMÖHERÖHUSBANDlSÖPHARMACYÖ Currently, Joharil is earning a MONTHLYÖPROÙTÖOFÖ330ÖÖ53$Ö Ö FROMÖHERÖÚOURISHINGÖBUSINESSÖ


Annual Report 2011 19

Inside BRAC

Capacity building and training unit "2!#lSÖTRAININGÖUNITÖINÖ3OUTHÖ3UDANÖISÖ responsible for capacity building and the professional development of its staff members and programme participants, including representatives from other national and international organisations. BRAC also hopes to establish a permanent training and resources centre in Juba. In 2010, BRAC conducted various TRAININGSÖWHICHÖINCLUDEDÖMICROÙNANCEÖ management training, operational management training, group dynamics and HIGHÖPERFORMANCEÖTRAINING ÖBASICÖTEACHERSlÖ training, management training, proposal WRITING ÖORIENTATIONÖOFÖOFÙCEÖSTAFF ÖANDÖ agricultural training, among others. The division also organised training for external ORGANISATIONSÖSUCHÖASÖTHEÖ-ICROÙNANCEÖ !SSOCIATIONÖOFÖ3OUTHÖ3UDAN ÖANDÖTHEÖ Danish Refugee Council. BRAC ensures that it recruits professional, skilled trainers to conduct each of its training sessions. The objectives include the development of management capacities of other NGOs and governmental organisations INÖ3OUTHÖ3UDANÖTOÖDEVELOPÖANDÖPROVIDEÖ TRAININGÖCOURSESÖFORÖ"2!#lSÖDEVELOPMENTÖ practitioners and programme participants; and to extend appropriate support and facilities to other organisations to arrange training, seminars and conferences.

Auditing and monitoring/ internal control system The monitoring department is a part OFĂ–"2!#lSĂ–INTERNALĂ–CONTROLĂ–MECHANISM Ă– ensuring transparency and accountability ACROSSĂ–ALLĂ–THEĂ–PROGRAMMESĂ–INĂ–3OUTHĂ– 3UDANĂ–)TĂ–CONDUCTSĂ–PERIODICĂ–ANALYSESĂ– using selected indicators to enable

managers to determine whether key activities are being carried out as planned, and whether they are having the expected impact on the target population. At present, a total of six monitoring staff are working in this department. In 2011, 16 ASPECTSÖRELATEDÖTOÖ"2!#Ö3OUTHÖ3UDANlSÖ stakeholders, staff and others from different projects were selected and monitored. In 2009, the auditing department started its operations. With the assistance of senior management, the department has developed a system of rigorous internal control. The department also assisted the management by providing a riskBASEDÖASSESSMENTÖFORÖEFÙCIENCYÖANDÖ effectiveness.

!CCOUNTSÂ&#x;ANDÂ&#x;ĂšNANCE !CCOUNTSĂ–ANDĂ–Ă™NANCEĂ–ISĂ–AĂ–CRUCIALĂ– department, as it plays an important role INĂ–MODELLINGĂ–ANDĂ–MONITORINGĂ–THEĂ–Ă™NANCIALĂ– system of the organisation. In 2011, seven national staff worked alongside NINEĂ–EXPATRIATEĂ–STAFFĂ–"2!#lSĂ–Ă™NANCEĂ– and accounts division performs a vital ROLEĂ–INĂ–IMPROVINGĂ–PROGRAMMEĂ–EFĂ™CIENCY Ă– enhancing management decision- making capability and promoting transparency and ACCOUNTABILITYĂ–5NDERĂ–THISĂ–DIVISION Ă–Ă™NANCIALĂ– data from all transactions carried out at different cost centres are collected and stored. Data useful for decision making is processed into information and adequate control to safeguard organisational assets are provided.

Recruitment (human resources) )NĂ– Ă–"2!#Ă–3OUTHĂ–3UDANĂ–LAUNCHEDĂ– a management trainee programme in order to replace some of the expatriates INĂ–MANAGEMENTĂ–POSITIONSĂ–WITHĂ–3OUTHĂ– 3UDANESEĂ–STAFFĂ–INĂ–THEĂ–NEARĂ–FUTUREĂ–"2!#Ă– CURRENTLYĂ–ENGAGESĂ–Ă–EXPATRIATESĂ–ANDĂ– sector specialists for the smooth operation OFĂ–THEĂ–PROGRAMMEĂ–!Ă–NUMBERĂ–OFĂ–3OUTHĂ– 3UDANESEĂ–STAFFĂ–RECRUITEDĂ–ATĂ–THEĂ–ENTRYĂ– level have been promoted to higher levels, based on their good performance. #URRENTLY Ă–THEĂ–COUNTRYlSĂ–OPERATIONSĂ–INCLUDEĂ– AĂ–TOTALĂ–STAFFĂ–OFĂ– Ă–COMPRISEDĂ–OFĂ–AĂ–NATIONALĂ– STAFFĂ–OFĂ–Ă–ANDĂ–Ă–EXPATRIATES Ă–OFĂ–WHICHĂ– 156 are male and 358 are female, along WITHĂ– Ă–VOLUNTEERS


20 Annual Report 2011

Development partners BRAC USA

MINISTRY OF GENDER, SOUTH SUDAN


Annual Report 2011 21


22 Annual Report 2011

)9(*across the world


Annual Report 2011 23


24 Annual Report 2011

Harnessing the Past: Our innovations in the last four decades

Functional education

Village organisations (VOs)

Life skills development education for adults that helps to build solidarity, create a savings mentality and prepare people for new income generation

The most effective medium for catalysing change in disadvantaged communities

Homemade oral rehydration solution campaign

Incentive salary system

A groundbreaking campaign in which 13 million households in Bangladesh learned how to make oral saline at home – a lesson that continues to save millions of lives from diarrhoea

A result oriented incentive package that measures effectiveness of and compensates our community workers and volunteers accordingly

Enterprises for value chain support

Directly observed treatment (DOT) for TB control

An integrated network of our development programmes, enterprises and investments that result in a unique synergy that supports our holistic approach for alleviating poverty

An effective treatment method for tuberculosis, a result of our incentive based salary system for community health workers, ensuring patients’ daily intake of medicine for six months or more

Para-professionals Pioneering models for vaccinators, community health workers and ‘barefoot lawyers’ that provide incentive based jobs for those ready to serve their own communities

Education for dropouts and non entrants Our own primary schools that help disadvantaged children make successful transitions to formal schools

Credit ++ approach An integrated set of services for the landless poor, marginal farmers and small entrepreneurs working together to strengthen the supply chain of the enterprises in which our microfinance borrowers invest


Annual Report 2011 25

Empowerment and livelihood for adolescents A range of initiatives to empower adolescents including skills training, social development and micro-loans for their future businesses.

Hybrid maize A pioneer venture to commercialise corn harvesting, which plays a key role in making farmers shift from traditional single cropping to multiple cropping to maximise land usage during idle seasons

Sharecroppers scheme A phenomenal initiative to offer soft loans for tenant farmers (sharecroppers) with a specially tailored recovery plan

Adolescent clubs

Pre primary schools

Safe spaces where peer driven intervention for adolescents enhance their personal growth and social skills

Our own pre primary schools where we prepare underprivileged children to enter mainstream primary schools

Popular theatre A traditional platform became an effective communication medium to advocate for social changes in rural communities, particularly to the illiterate

Challenging the frontiers of poverty reduction A unique model focusing on extremely deprived women to improve their economic and social situations, allowing ultra poor households to graduate from extreme poverty and enter mainstream development programmes

M-health services

Unique management model

A mobile based platform that community health workers use to collect data and provide a range of real time automated services such as storing patient records, categorising and assessing medical risks, prioritising medical responses and monitoring referrals

A unique management model that focuses on internal control without suffocating creativity, runs our large scale interventions cost effectively, and enables us to constantly learn from the communities we serve across the world

$UWLĂ›FLDOLQVHPLQDWRUV We transformed over 2,000 rural poor into entrepreneurs with an innovative livelihood opportunity: providing fee based ‘door to door’ artificial insemination and education services for livestock farmers

Birthing huts Safe and culturally accepted childbirth places with appropriate services for mothers in urban slums


26 Annual Report 2011

Governance

Sir Fazle Hasan Abed Founder and Chairperson, BRAC

3IRĂ–&AZLEĂ–ISĂ–RECOGNISEDĂ– by Ashoka as one of the “global greatsâ€? and is a founding member of its prestigious Global !CADEMYĂ–FORĂ–3OCIALĂ– Entrepreneurship. He was also appointed Knight Commander of the Most Distinguished /RDERĂ–OFĂ–3TĂ–-ICHAELĂ–ANDĂ– 3TĂ–'EORGEĂ–+#-' Ă–BYĂ– the British crown in 2010 in recognition of his services to reducing poverty in Bangladesh and internationally. He has received numerous national and international awards for his achievements in leading "2!# Ă–INCLUDINGĂ–7)3%Ă– 0RIZEĂ–pĂ–THEĂ–WORLDlSĂ–FIRSTĂ– major international prize for education by Qatar Foundation (2011), the David Rockefeller Bridging Leadership Award (2008), the Conrad N. Hilton Humanitarian Prize  Ă–pĂ–THEĂ–WORLDlSĂ– largest humanitarian prize, the Inaugural Clinton Global Citizen !WARDĂ– Ă–THEĂ–(ENRYĂ– R. Kravis Prize in ,EADERSHIPĂ–

Dr. Mahabub Hossain

Muhammad A. (Rumee) Ali

Executive Director, BRAC and BRAC International (Ex-officio)

Managing Director, BRAC (Ex-officio)

A renowned agricultural economist, Dr. Hossain ISĂ–FORMERĂ–HEADĂ–OFĂ–3OCIAL 3CIENCESĂ–$IVISIONĂ–OF the International Rice Research Institute (IRRI), Philippines and former director General of the Bangladesh Institute of Development 3TUDIESĂ–")$3 Ă–(E was awarded the first Gold Medal from the Bangladesh Agricultural Economist Association in 1985, in recognition of outstanding contribution to understanding the operation of rural economy in Bangladesh.

Mr. Rumee is the vice chairman of Bangladesh Association of Banks and a member of THEĂ–'LOBALĂ–3TEERING Committee of THEĂ–k0ERFORMANCE "ASEDĂ–'RANTSĂ–)NITIATIVEl of the International Finance Corporation and the Technical Advisory Committee of Bangladesh Investment Climate Fund. He served as the deputy governor of Bangladesh Bank, and country head and general manager of Grindlays Bangladesh. He was appointed the CEO of THEĂ–3TANDARDĂ–#HARTERED Group in Bangladesh, HEADINGĂ–BOTHĂ–3TANDARD Chartered Bank and 3TANDARDĂ–#HARTERED Grindlays Bank. He also served as a member of the Governing Body of 0+3&Ă–

Faruque Ahmed Senior Director BRAC International

Prior to joining BRAC, Mr. Ahmed worked for the World Bank. He is a member of the working group of Bangladesh Health Watch, a civil society initiative, vice chair of Bangladesh Country Coordination Mechanism for Global Funds for AID Tuberculosis and Malaria (GFATM) and a member of World Bank Civil 3OCIETYĂ–#ONSULTATIVEĂ– Group on Health, Nutrition and Population. He also represented civil society on the GAVI Alliance Board.

Tanwir Rahman Director, Finance, BRAC and BRAC International

Previously, Mr. Rahman was the Divisional Controller for HBG (Hollandsche Beton Groep) Royal BAM, Assistant Controller for Mitchell engineering, 3ENIORĂ–0ROJECTĂ– Accounting Manager for Bovis Lend Lease. Before joining BRAC he worked as Controller for !LLIEDĂ–#ONTAINERĂ–3YSTEM


Annual Report 2011 27

Management

Md. Abu Bakar Siddique

Country Representative

M. M. Habirbur Rahman

Technical Manager Nutrition & Health

Khan Mohammad Ferdous

3RĂ–!REAĂ–%DUCATIONĂ–-ANAGER Livelihoods programme

-RÖ3IDDIQUEÖISÖTHEÖCOUNTRYÖREPRESENTATIVEÖ OFÖ"2!#Ö3OUTHÖ3UDANÖ(EÖJOINEDÖ"2!#Ö in 1982, and over the last 30 years, has worked at different development projects for the organisation both nationally and internationally. He has been involved in initiation of variety of projects related to rural economic development and empowerment, and educational development. He HASÖCONTRIBUTEDÖTOÖTHEÖDIVERSIÙCATIONÖ of implementation strategies for the

ORGANISATIONlSĂ–MONITORINGĂ–DEPARTMENTĂ–Ă– -RĂ–3IDDIQUEĂ–HASĂ–PROVIDEDĂ–TECHNICALĂ– participation and coordinated in developing different policy papers. He led the relief and REHABILITATIONĂ–OFĂ–CYCLONEĂ–3IDRĂ–AFFECTEDĂ–PEOPLEĂ– in Bangladesh, and received training in Indonesia on disaster preparedness. He was born in Mymensingh on 1956.


28 Annual Report 2011

Notes


Annual Report 2011 29

Notes


Annual Report 2011 1


28 Annual Report 2011

BRAC SOUTH SUDAN

Auditor’s Report And Financial Statements For the year ended December 31, 2011


Annual Report 2011 29


30 Annual Report 2011

BRAC SOUTH SUDAN Statement of Financial Position As At 31 December 2011

2011 2010

2011 2010

Notes MF SDP Total SSP SSP SSP SSP USD USD ASSETS Cash and Cash Equivalents 11 9,813,726 1,831,142 11,644,868 9,116,161 3,947,413 3,690,753 Short term deposits 12 9,500,000 - 9,500,000 7,910,000 3,220,339 3,202,429 Loan & advances to customers 13 1,356,689 - 1,356,689 3,433,001 459,895 1,389,879 Grants receivable 14 - 1,371,412 1,371,412 2,115,194 464,885 856,354 Other assets 15 3,583,702 580 3,584,282 1,726,912 1,215,011 699,155 Property Plant and equipment 16 512,460 209,431 721,891 643,613 244,709 260,572 Total assets 24,766,577 3,412,565 28,179,142 24,944,881 9,552,252 10,099,142 LIABILITIES AND CAPITAL FUND Liabilities Loan from BRAC 18 8,850,000 - 8,850,000 7,410,000 3,000,000 3,000,000 Term Loan 19 2,902,051 - 2,902,051 3,986,347 983,746 1,613,906 Loan security Fund 20 1,021,008 - 1,021,008 1,374,032 346,104 556,288 Other liabilities 21 12,778,378 115,148 12,893,526 9,905,205 4,370,687 4,010,204 Total liabilities 25,551,437 115,148 25,666,585 22,675,584 8,700,537 9,180,398 Capital fund Donor Grants 17 479,998 3,297,417 3,777,415 2,459,305 1,280,480 995,670 Retained Earnings (6,279,858) - (6,279,858) (4,389,008) (2,128,765) (1,776,926) BRAC contribution 22 5,015,000 - 5,015,000 4,199,000 1,700,000 1,700,000 Total capital fund (784,860) 3,297,417 2,512,557 2,269,297 851,714 918,744 Total liabilities and Capital fund 24,766,577 3,412,565 28,179,142 24,944,881 9,552,252 10,099,142

Director Director The notes are an integral part of these financial statements


Annual Report 2011 31

BRAC SOUTH SUDAN Statement Of Comprehensive Income For The Year Ended 31 December 2011

2011 2010 2011 2010 Notes MF SDP Total SSP SSP SSP SSP USD USD Service charge on loans 4 1,081,061 - 1,081,061 2,037,068 366,461 824,724 Interest expense 5 751,791 - 751,791 2,437,708 254,844 986,926 Net income from service charge 329,270 - 329,270 (400,640) 111,617 (162,202) Membership and Other Fees 6 43,185 - 43,185 605,772 14,639 245,252 Other Income 7 15,257 - 15,257 424,947 5,172 172,043 Grant income 4.1 2,146,885 6,855,425 9,002,310 11,286,327 3,051,631 4,569,363 2,205,327 6,855,425 9,060,752 12,317,046 3,071,441 4,986,658 Total operating income 2,534,597 6,855,425 9,390,022 11,916,406 3,183,058 4,824,456 Impairment losses on loans and advances to customers 8 1,011,081 - 1,011,081 1,564,887 342,739 633,557 Operating income after impairment charges 1,523,516 6,855,425 8,378,941 10,351,519 2,840,319 4,190,898 Staff costs 9 1,850,683 2,015,194 3,865,877 4,999,869 1,310,467 2,024,238 Other operating expenses 10 1,985,119 4,806,500 6,791,619 8,979,531 2,302,244 3,635,438 Depreciation 16 120,621 33,731 154,352 109,024 52,323 44,139 Total expenditure 3,956,423 6,855,425 10,811,848 14,088,424 3,665,033 5,703,815 Profit before tax (2,432,907) - (2,432,907) (3,736,905) (824,714) (1,512,917) Income tax expense Net profit for the year (2,432,907) - (2,432,907) (3,736,905) (824,714) (1,512,917) Other comprehensive income 7.1 542,057 - 542,057 - 183,748 Total comprehensive income (1,890,850) - (1,890,850) (3,736,905) (640,966) (1,512,917) Director Director The notes are an integral part of these financial statements


32 Annual Report 2011

BRAC SOUTH SUDAN Statement Of Changes In Equity For The Year Ended 31 December 2011

Donor Funds Retained BRAC Total Capital Total Capital Earnings Contribution Fund Fund SSP SSP SSP SSP USD At 1 January 2010 2,990,852 (652,103) 3,944,000 6,282,749 2,543,623 Donations received during the year 8,639,491 - - 8,639,491 3,497,770 Fluctuation adjustment (Note-23) - 255,000 255,000 103,239 Adjustment with Grant received in advance 2,115,289 - - 2,115,289 856,392 Transfered to Income Statement (11,286,327) - - (11,286,327) (4,569,363) Deficit for the year - (3,736,905) - (3,736,905) (1,512,917) At 31 December 2010 2,459,305 (4,389,008) 4,199,000 2,269,297 918,744 At 1 January 2011 2,459,305 (4,389,008) 4,199,000 2,269,297 918,744 Donations received during the year 11,064,202 - - 11,064,202 3,750,577 Fluctuation adjustment (Note-23) 816,000 816,000 276,610 Adjustment with Grant received in advance (743,782) - - (743,782) (252,129) Transfered to Income Statement (9,002,310) - - (9,002,310) (3,051,631) Deficit for the year (1,890,850) (1,890,850) (640,966) At 31 December 2011 3,777,415 (6,279,858) 5,015,000 2,512,557 851,714


Annual Report 2011 33

BRAC SOUTH SUDAN Cashflow Statement For The Year Ended 31 December 2011

2011 2010 2011 2010 Notes SSP SSP USD USD Cash flow from Operating Activities 24 1,303,998 4,335,443 442,033 1,755,240 Loan disbursement (3,370,200) 6,220,100 (1,142,441) 2,518,259 Loan Collection 4,352,969 (6,970,119) 1,475,583 (2,821,911) Net cash flow from Operating Activities 2,286,767 3,585,424 775,175 1,451,589 Cash flow from Investing Activities Acquisition of fixed assets (250,722) (277,107) (84,991) (112,189) Sale of Fixed Assets 18,092 - 6,133 Short term deposits (1,590,000) (950,000) (538,983) (384,615) Net cash flow from Investing Activities (1,822,630) (1,227,107) (617,841) (496,804) Cash flow from Financing Activates Term Loan (1,084,296) (6,648,604) (367,558) (2,691,743) Grant Receivable 743,782 9,043,582 252,129 3,661,369 Loan from BRAC 1,440,000 - 488,136 Loan Security Fund (353,026) 227,144 (119,670) 91,961 Donor fund increase/(decrease) 1,318,110 (9,514,933) 446,817 (3,852,200) Net cash flow from financing activities 2,064,570 (6,892,811) 699,854 (2,790,612) Net (decrease)/increase in cash and cash equivalents 2,528,707 (4,534,494) 857,189 (1,835,828) Cash and cash equivalents at beginning of the year 9,116,161 13,650,655 3,090,224 5,526,581 Cash and cash equivalents at end of the year 11 11,644,868 9,116,161 3,947,413 3,690,753


34 Annual Report 2011

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011

1.00

THE REPORTING ENTITY BRAC South Sudan, an international private development organization started its activities in March 2007 and registered under the ministry of Internal Affairs, the Republic of South Sudan with a view to participating in the development activities by adapting an environmental friendly sustainable development approach through high-impact education, health, agriculture and employment and income generation activities for the poor specially for the women and children. At present BRAC South Sudan has five development programmes that cover the areas of health, education, adolescent development program and microfinance to improving the livelihood of the poor people of South Sudan. 2.00 BASIS OF PREPARATION 2.01 Statement of Compliance The financial statements have been prepared in accordance with and comply with International Financial Reporting Standards (IFRS) . The financial statements were issued by the Board of Directors on March 20, 2012 2.02

2.03

Basis of Measurement The financial statements are prepared under the historical cost convention. Functional and Presentation Currency These financial statements are presented in South Sudanese Pound (SSP) previously known as Sudanese Dinar Guniah (SDG) ,which is the entity’s functional currency. The financial statements include figures, which have been translated from South Sudanese Pound ( SSP) to United States Dollars (US $) at the year end rate of US$ 1: SSP 2.95 .These figures are for memorandum purposes only and do not form part of the audited financial statements.

2.04

Use of estimation and Judgements The preparation of financial statements in conformity with International Financial Reporting Standards (IFRS) requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of financial statements and reported amounts of revenues and expenses during the reported period. The estimates and associated assumptions are based on historical experiences, the results of which form the basis of making the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results ultimately may differ from these estimates.

3.00

SIGNIFICANT ACCOUNTING POLICIES The accounting policy set out below have been applied consistently to all period presented in these financial statements.


Annual Report 2011 35

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

3.01

Property,Plant and Equipment Property ,Plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset.

The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software, that is integral to the functionality of the related equipment is capitalised as part of that equipment. Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying value of property and equipment and recognized net with other income in profit or loss. 3.02 Depreciation Depreciation is recognized in profit or loss and calculated to write off the cost of the property,plant and equipment on a straight line basis over the expected useful lives of the assets concerned, and intangible assets on a straight line basis. Land is not depreciated The estimated useful lives for the current and comparative periods are as follows: - Furniture & Fixtures 10% Equipments 15% Vehicles 20% Motor Vehicles 20% Bi-cycles 20%

3.03

Management and directors review the depreciation methods, residual value and useful life of an asset at the year end and any change considered to be appropriate in accounting estimate is recorded through the statement of comprehensive income. Gains and losses on disposals are determined by comparing proceeds with carrying amounts and are included in the operating result for the reporting period. Foreign currency Transactions. Transactions in foreign currencies are translated to SSP at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to SSP at the rate prevailing on that date. The resulting difference is treated as foreign currency gain or loss and recorded in statement of comprehensive income. Non-monetary assets and liabilities denominated in foreign currencies, which are stated at historical cost, are translated to SSP at the foreign exchange rate ruling at the date of transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to SSP at foreign exchange rates ruling at the dates the fair values were determined. Foreign exchange differences arising on translation are recognized in the statement of comprehensive income.


36 Annual Report 2011

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

3.04

Loans and Advances to the Customers a) Loans originated by the company by providing finance directly to borrowers is categorized as loans and advances to customers and is carried at amortised cost, which is defined as fair value of the cash consideration given to originate those loans as is determinable by reference to market prices at origination date and subsequently measured at the original effective interest rate at reporting date. All loans and advances are recognized when cash is advanced to borrowers.

b) BRAC South Sudan generally provides for an allowance for loan impairment at 5% of loan disbursements made.Management regularly assess the adequacy of allowance for impairment based on the age of the loan portfolio.At the year end BRAC South Sudan calculates the required provision for loan losses based on loan classification and provisioning methodology which is shown below and any adjustments ,if required are made and accounted for in the financial statments for the year. Loan classification Days in Arrear Provision required Standard No arrear 2% Watch list 1-30 days 5% Substandard 31-180 days 20% Doubtful 181-350 days 75% Loss 350+ days 100% c) Loans within the maturity period is considered “Current Loans”. Loans which remains outstanding after the expiry of their maturity period are considered as ‘Late loans”. Late loans which remain unpaid after one year of being classified as “Late” are considerd as “Non-Interest bearing loans’ (NIBL) and is referred to the Board for write off. Apart from that, any loans can be written off subject to the approval of the board where the board thinks that it is not realizable due to death, dislocation of the borrower or any other natural or humanitarian disaster that affects the livelihood of the borrowers.Subsequent recoveries are credited as income in the statement of comprehensive income.

3.05 Impairment i) Financial Assets At each balance sheet date BRAC South Sudan assesses whether there is objective evidence that financial assets not carried at fair value through profit or loss are impaired. Financial assets are considered to be impaired when objective evidence indicates that one or more events that have a negative effect on the estimated future cash flow of an asset. Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit characteristics. All impairment losses are recognized in profit or loss and Impairment losses on available-for-sale investment securities are recognized by transferring the difference between the amortized acquisition cost and current fair value out of equity to profit or loss. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognized. For financial assets measured at amortized cost and available for sale securities is recognized in profit or loss. For available for sale securities that are equity securities the reversal is recognized directly in equity.


Annual Report 2011 37

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

ii) Non financial Assets The carrying amounts of BRAC South Sudan’s non financial assets other than inventories are reviewed at each balance sheet date to determine whether there is any indication of impairment. If such condition exists, the assets recoverable amount is estimated and an impairment loss recognised in the statement of comprehensive income whenever the carrying amount of an asset exceeds its recoverable amount.

3.06

Other Assets Other assets comprise prepayments, deposits and other recoverable which arise during the normal course of business; they are carried at original invoice amount less provision made for impairment losses. A provision for impairment of trade receivable is established when there is objective evidence that the Fund will not be able to collect all amounts due according to the original terms of receivables. The amount of the provisions is the difference between the carrying amount and the recoverable amount

3.07

Cash and Cash equivalents For the purpose of the cash flow statement, cash and cash equivalents comprise balances with less than 90 days maturity from the balance sheet date and include: cash in hand, deposits held at call with banks, net of bank overdraft facilities subject to sweeping arrangements

3.08

3.09

Provisions and Other Liabilities A provision is recognised if, as a result of a past event, BRAC South Sudan has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Other accounts payable are carried at cost, which is the fair value of the consideration to be paid in the future for goods and services received Income Tax Current income tax is the expected tax payable on taxable income for the year, using tax rates enacted at the balance sheet date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

3.10 Revenue Recognition Revenue is recognized on an accruals basis.

i) Service Charge on Loans Service charge on loan is recognised on an accrual basis.The recognition ceases when a loan is transferred to Non Interest Bearing Loan (NIBL) as described in note-3.04. Service charge is recognised thereafter only when it is received. ii) Membership fees and Other charges Membership fees and other charges are recognized as and when the money is received. iv) Other Income Other income comprises interest from short term deposits,gains less losses related to trading assets and liabilities, and includes gains from disposal of BRAC South Sudan assets and all realized foreign exchange differences. Interest income on BRAC South Sudan bank deposit is earned on an accruals basis at the agreed interest rate with the respective financial institution


38 Annual Report 2011

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

3.11

Donor Grants All donor grants received are initially recognized at fair value and recorded as liabilities in the Grants Received in Advance Account for the period. The portion of the grants utilized to purchase property and fixed assets are transferred as deferred Income in liabilities and subsequently the portion of the depreciation expense of the same assets for the period is recognized in the statement of comprehensive income as grant income. Grants utilized to reimburse program related expenditure, the amounts are recognized as Grant Income for the period. Donor grants received in kind, through the provision of gifts and /or services, are recorded at fair value (excluding situations when BRAC South Sudan may receive emergency supplies for onward distribution in the event of a disaster which are not recorded as grants). For ongoing projects and programs, any expenditures yet to be funded but for which funding has been agreed at the end of the reporting period is recognized as Grants receivable. 3.12

Grant Income Grant income is recognized to the extent that BRAC South Sudan fulfills the conditions of the grant and recorded as income in the statement of comprehensive income. A portion of BRAC South Sudan’s donor grants are for the funding of projects and programs, and for these grants, income recognized is matched to the extent of actual expenditures incurred on projects and programs for the period.

For donor grants restricted to funding procurement fixed assets, grant income is recognized as the amount equivalent to depreciation expenses charged on the fixed asset

3.13

Loans and borrowings Loans and Borrowings are recognised as the proceeds are received, net of transaction costs incurred.The carrying values of these instruments approximate their fair values due to their short term maturity. All borrowing costs are recognised as an expense in the statement of income and expenditure in the period in which they are incurred.

3.14

Employee benefits Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date. The company does not operate any retirement benefit fund. However severance pay is provided for in accordance with the Country statute. The company also operates an employee bonus incentive scheme. The provision for employee bonus incentive is based on a predetermined company policy and is recognised in other accruals. The accrual for employee bonus incentive is expected to be settled within 12 months.

3.15

Related Party Transactions Related parties comprise directors, subsidiaries of BRAC International and key management personnel of the company and companies with common ownership and/or directors.

3.16

Comperatives Where necessary comparative figures have been adjusted to conform to changes in presentation in the current year.


Annual Report 2011 39

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

2011 2010 2011 2010 SSP SSP USD USD 4.0 SERVICE CHARGE ON LOANS Group Loans ( Microfinance) 1,081,061 2,037,068 366,461 824,724 1,081,061 2,037,068 366,461 824,724 4.1 Grant Income Microfinance (Note-17.1.1 and 17.1.2) 2,146,885 1,776,931 727,758 719,405 SDP (Note-17.2.1 and 17.2.2) 6,855,425 9,509,396 2,323,873 3,849,958 9,002,310 11,286,327 3,051,631 4,569,363 5.0 INTEREST EXPENSE Interest on loans 704,223 2,384,172 238,720 965,252 Interest on VO members saving deposits 47,568 53,536 16,125 21,674 751,791 2,437,708 254,844 986,926 6.0 MEMBERSHIP FEES AND OTHER CHARGES Admission fee 9,447 18,930 3,202 7,664 Loan application fee 33,702 62,545 11,424 25,322 Interest income from Fixed Deposits 36 524,297 12 212,266 Total 43,185 605,772 14,639 245,252 7.0 OTHER INCOME Gain due to early repayment 15,257 11,018 5,172 4,461 Loss due to early repayment - (109,558) - (44,355) Bad debts realization - 523,487 - 211,938 Total 15,257 424,947 5,172 172,043 7.1 UNREALISED FOREIGN CURRENCY GAIN/LOSS 542,057 - 183,748 The exchange gains arise from translation of foreign currency transactions and revaluations of foreign currency denominated assets and liabilities to South Sudanese Pound (SSP). Financial assets and Liabilities denominated in foreign currencies are translated to SSP at rate ruling at balance sheet date. 8.0 IMPAIRMENT LOSSES ON LOANS AND ADVANCES General Provision 1,011,081 1,564,887 342,739 633,557 9.0 STAFF COSTS Salaries and Benefits-MF 1,850,683 2,589,981 627,350 1,048,575 Salaries and Benefits-SDP 2,015,194 2,409,888 683,117 975,663 Total 3,865,877 4,999,869 1,310,467 2,024,238


40 Annual Report 2011

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

2011 2010 2011 2010 SSP SSP USD USD 10.0 OTHER OPERATING EXPENSES- MF Occupancy expenses (Note-10.1) 593,411 329,257 201,156 133,302 Staff training and development 20,662 70,359 7,004 28,485 Travel and transportation 394,836 431,653 133,843 174,758 Maintenance and general expenses 324,088 290,336 109,860 117,545 Printing and office stationery 28,255 63,792 9,578 25,827 Program supplies 6,925 - 2,347 HO logistics and management expenses 616,942 713,018 209,133 288,671 Sub Total (A) 1,985,119 1,898,415 672,922 768,589 OTHER OPERATING EXPENSES- SDP Occupancy expenses (Note-10.1) 591,590 744,368 200,539 301,364 Staff training and development 715,283 1,088,390 242,469 440,644 Travel and transportation 553,289 645,277 187,556 261,246 Maintenance and general expenses 164,661 245,795 55,817 99,512 Printing and office stationery 26,206 82,281 8,883 33,312 Program supplies 2,443,870 3,700,564 828,431 1,498,204 Cash write off - - - HO logistics and management expenses 311,601 574,441 105,627 232,567 Sub Total (B) 4,806,500 7,081,116 1,629,322 2,866,849 Total (A+B) 6,791,619 8,979,531 2,302,244 3,635,438 10.1 Occupancy expenses are analysed as follows; MF Rent 480,515 269,463 162,886 109,094 Utilities 112,896 59,794 38,270 24,208 593,411 329,257 201,156 133,302 SDP Rent 589,281 489,329 199,756 198,109 Utilities 2,309 255,039 783 103,255 Total 591,590 744,368 200,539 301,364 11.0 CASH AND CASH EQUIVALENTS Cash in hand 86,983 186,192 29,486 75,381 Cash at Bank Nile Commercial Bank Ltd 5,427,880 5,400,613 1,839,959 2,186,483 Stanbic bank Ltd 3,912,030 1,783,552 1,326,112 722,086 Kenya Commercial bank Ltd 1,572,626 1,736,704 533,094 703,119 Equity Bank Ltd 643,075 2,210 217,992 895 Ivory Bank Ltd 2,274 6,890 771 2,789 11,557,885 8,929,969 3,917,927 3,615,372 Total Cash & Bank 11,644,868 9,116,161 3,947,413 3,690,753


Annual Report 2011 41

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

2011 2010 2011 2010 SSP SSP USD USD 12.0 SHORT TERM DEPOSITS Nile Commercial Bank 8,850,000 7,410,000 3,000,000 3,000,000 Equity Bank Ltd 650,000 500,000 220,339 202,429 Total 9,500,000 7,910,000 3,220,339 3,202,429 13.0 LOAN & ADVANCES TO CUSTOMERS: At 1 January 5,093,287 4,343,266 1,726,539 1,758,407 Loans disbursed 3,370,200 6,220,100 1,142,441 2,518,259 Less: Loans repayments (4,322,906) (5,277,666) (1,465,392) (2,136,707) Gross advances to customers 4,140,581 5,285,700 1,403,588 2,139,960 Less : Gross Loan Adjusted (2,405,283) (192,415) (815,350) (77,901) 1,735,298 5,093,285 588,238 2,062,059 Interest receivable 69,427 151,891 23,535 61,494 Impairment loss on loans advance (Note -13.1) (448,036) (1,812,175) (151,877) (733,674) Net advances to customers 1,356,689 3,433,001 459,896 1,389,879 13.1 The movement on the impairment on loans account is shown below; At 1 January 1,812,175 439,703 614,297 178,017 Charge for the year 1,011,081 1,564,887 342,739 633,557 Net write-off (2,375,220) (192,415) (805,159) (77,901) At 31 December 448,036 1,812,175 151,877 733,674 13.2 Analysis of Impairment of loans Principal Provision Provision Outstanding rate required Local Local For general Provision No past due 1,107,715 2% 22,154 For specific provision 1-30 days 87,466 5% 4,373 31-180 days 52,603 20% 10,521 181-365 days 306,106 75% 229,580 366 days and above past due 181,408 100% 181,408 627,583 425,881 1,735,298 448,036


42 Annual Report 2011

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

2011 2010 2011 2010 SSP SSP USD USD 14.0 Grant Receivable- SDP 1,371,412 2,115,194 464,885 856,354 1,371,412 2,115,194 464,885 856,354 15.0 OTHER ASSETS-MF Advance to 3rd party 60,925 181,448 20,653 73,461 Interest Receivable 1,040,699 1,048,392 352,779 424,450 Advance against salary 1,770 5,128 600 2,076 Security deposit - 13,268 - 5,372 Others (prepayments) - 7,365 - 2,982 Current account in transit 2,480,308 446,834 840,782 180,904 Transferable goods - 24,077 - 9,748 Total 3,583,702 1,726,512 1,214,814 698,993 OTHER ASSETS- SDP Advance to 3rd party 560 400 190 162 Advance against salary 20 - 7 Total 580 400 197 162 Advances to customers are carried at amortized cost. It is estimated that the fair values of advances to customers are approximately the same as the carrying values. All advances to customers are unsecured


BRAC SOUTH SUDAN

16.00 PROPERTY PLANT AND EQUIPMENT (MF) Furniture Equipments Vehicle ( Trucktor ) Bicycle Motor cycle Total Total SSP SSP SSP SSP SSP SSP USD Cost At 31 December 2010 253,073 288,783 54,050 23,198 27,990 647,094 219,353 Additions 6,395 73,521 81,490 11,000 172,406 58,443 Disposal (13,605) (3,552) (2,500) (19,657) (6,663) At 31 December 2011 245,863 358,752 135,540 34,198 25,490 799,843 271,133 Depreciation At 31 December 2010 46,520 78,538 19,978 11,639 11,652 168,327 57,060 Charge for the year 25,946 60,107 23,033 6,270 5,265 120,621 40,888 Adjustment (848) (717) (1,565) (530) At 31 December 2011 71,618 137,928 43,011 17,909 16,917 287,383 97,418 Written Down Vallue At 31 December 2011 174,245 220,824 92,529 16,289 8,573 512,460 173,715 At 31 December 2010 206,553 210,245 34,072 11,559 16,338 478,767 193,833 PROPERTY PLANT AND EQUIPMENT (SDP) Furniture Equipments Vehicle ( Trucktor ) Bicycle Motor cycle Total Total SSP SSP SSP SSP SSP SSP USD Cost At 31 December 2010 57,426 13,201 49,916 3,487 72,220 196,250 66,525 Additions 27,986 21,359 9,164 1,258 18,549 78,316 26,548 Disposal (7,813) At 31 December 2011 77,599 34,560 59,080 4,745 90,769 274,566 93,073 Depreciation At 31 December 2010 12,314 2,778 4,992 1,165 10,155 31,404 10645 Charge for the year 4,654 3,728 9,983 617 14,749 33,731 11,434 Adjustment (7,813) At 31 December 2011 9,155 6,506 14,975 1,782 24,904 65,135 22,079 Written Down Vallue At 31 December 2011 68,444 28,054 44,105 2,963 65,865 209,431 70,994 At 31 December 2010 45,112 10,423 44,924 2,322 62,065 164,846 66,739

NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

Annual Report 2011 43


44 Annual Report 2011

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

2011 2010 2011 2010 SSP SSP USD USD 17.0 Donor Grants Donor Grants MF (Note-17.1) 479,998 428,213 162,711 173,366 Donor Grants SDP (Note-17.2) 3,297,417 2,031,092 1,117,768 822,304 3,777,415 2,459,305 1,280,480 995,670 17.1 Donor Grants MF Grants received in advance (Note-17.1.1) - - - - Deffered Income (Note-17.1.2) 479,998 428,213 162,711.19 173,365.59 479,998 428,213 162,711 173,366 17.1.1 Grants Received in advance Donations received (17.1.1a) 2,198,670 1,818,197 745,312 736,112 Transferred to deferred income - investment in fixed assets (172,406) (131,897) (58,443) (53,400) Transferred to Statement of Income and Expenditure (2,026,264) (1,686,300) (686,869) (682,713) - - - 17.1.1a Donation received NORAD 2,021,670 1,651,704 685,312 668,706 BRAC USA 177,000 166,493 60,000 67,406 2,198,670 1,818,197 745,312 736,112 17.1.2 Deffered Income Opening balance 428,213 386,947 145,157 156,659 Transferred from grants received in advance 172,406 131,897 58,443 53,400 Amortization during the period (120,621) (90,631) (40,888) (36,693) 479,998 428,213 162,711 173,366 17.2 Donor Grants SDP Grants received in advance (Note-17.2.1) 3,087,986 1,866,246 1,046,775 755,565 Deffered Income (Note-17.2.2) 209,431 164,846 70,994 66,739 3,297,417 2,031,092 1,117,768 822,304 17.2.1 Grants Received in advance-SDP Balance as on 1st January (248,948) 2,566,233 (84,389) 1,038,961 Donations received (17.2.1a) 8,865,532 6,821,294 3,005,265 2,761,657 Transferred to deferred income - investment in fixed assets (78,316) (145,471) (26,548) (58,895) Transferred to Statement of Income and Expenditure (6,821,694) (9,491,004) (2,312,439) (3,842,512) 1,716,574 (248,948) 581,889 (100,789) Receivable from Donors 1,371,412 2,115,194 464,885 856,354 3,087,986 1,866,246 1,046,775 755,565


Annual Report 2011 45

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

2011 2010 2011 2010 SSP SSP USD USD 17.2.1a Donation received FFR ( WFP) 251,956 128,351 85,409 51,964 P4P ( WFP) 254,036 123,500 86,114 50,000 DDR ( FAO) 164,020 154,128 55,600 62,400 FAO - 25,656 - 10,387 DDR ( UNDP) - 99,272 - 40,191 UNESCO 74,414 61,750 25,225 25,000 Gender ministry - 241,500 - 97,773 OXFAM NOVIB 928,043 291,460 314,591 118,000 BRAC USA 843,786 - 286,029 BRAC UK 761,908 618,678 258,274 250,477 Comic Relief 721,057 - 244,426 Stromme Foundation 314,154 223,752 106,493 90,588 World Bank 2,131,207 419,900 722,443 170,000 PSI 933,327 625,384 316,382 253,192 CHF 483,650 - 163,949 UNDP 959,724 3,691,999 325,330 1,494,736 SF 44,250 - 15,000 UNMIS ( Education ) - 57,964 - 23,467 UNMIS ( Agriculture ) - 58,000 - 23,482 8,865,532 6,821,294 3,005,265 2,761,657 17.2.2 DEFRRED INCOME-SDP Opening balance 164,846 37,672 55,880 15,252 Transferred from grants received in advance 78,316 145,566 26,548 58,934 Amortization during the period (33,731) (18,392) (11,434) (7,446) Total 209,431 164,846 70,994 66,739 18.0 LOAN FROM BRAC- MF 8,850,000 7,410,000 3,000,000 3,000,000 8,850,000 7,410,000 3,000,000 3,000,000 Loan from BRAC $ 3,00,000 was obtained to support Microfinance Program in South Sudan. It is repayable within twelve months after five years of disbursement. 19.0 TERM LOAN-MF UNCDF 2,645,045 3,193,212 896,625 1,292,798 KIVA 257,006 432,635 87,121 175,156 BOSS - 360,500 - 145,951 2,902,051 3,986,347 983,746 1,613,906 Loan from United Nations Capital Development Fund (UNCDF) US$ 1,292,798 equivalent to South Sudanese Pound (SSP) 3,193,212 was obtained for support to microfinance programme and bear interest at 3% per annum. It is repayable in semi annual installments over a period of three years from the date of receipt of the fund after two years of grace period. Loan from KIVA Foundation US$ 87,121 equivalent to South Sudanese Pound (SSP) 257,006 was obtained for support to microfinance programme. It is repayable in monthly installments started from October 2008.


46 Annual Report 2011

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

2011 2010 2011 2010 SSP SSP USD USD 19.1 Movement of Term loan Opening Balance 3,986,347 360,500 1,351,304 145,951 Received during the period 225,007 3,625,847 76,274 1,467,954 Repayment (1,309,303) - (443,832) 2,902,051 3,986,347 983,746 1,613,906 20.0 LOAN SECURITY FUND Opening balance 1,374,032 1,146,888 465,774 464,327 Received during the year 1,085,850 1,693,034 368,085 685,439 Paid off /Adjusted during the year (1,438,874) (1,465,890) (487,754) (593,478) Closing balance 1,021,008 1,374,032 346,104 556,288 The Loan Security Fund acts as collateral for the customers’ loan obligations to BRAC South Sudan. This is computed as 10% of the customers’ approved loan. In the event of any default, the clients forfeit all or part of the Loan Security Fund to the extent of the amount at risk. 21.0 OTHER LIABILITIES-MF Liabilities for expenses 1,496,399 1,021,140 507,254 413,417 Payable to Brac Sticting International 469,502 - 159,153 Payable to Bangladesh 10,791,251 8,598,038 3,658,051 3,480,987 Withholding tax payable 21,226 14,242 7,195 5,766 12,778,378 9,633,420 4,331,654 3,900,170 OTHER LIABILITIES-SDP Liabilities for expenses 50,537 23,100 17,131 9,352 Bonous Provision 23,528 15,756 7,976 6,379 Payable to Bangladesh - 220,637 - 89,327 Social insurance 33,278 9,467 11,281 3,833 Withholding tax 6,303 1,850 2,137 749 Others income 1,502 975 509 395 Total 115,148 271,785 39,033 110,034 22.0 BRAC Contribution/ Share Capital Share Capital 5,015,000 4,199,000 1,700,000 1,700,000 23.0 Fluctuation Adjustment 816,000 255,000 This represents unrealised exchange gain on translation of Share Capital from US$ to SSP. At the Balance Sheet date (US$ 1 = SSP. 2.95).


Annual Report 2011 47

BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

24.0

CASHFLOW FROM OPERATING ACTIVITIES 2011 2010 2011 2010 SSP SSP USD USD Cash flow from operating activities Excess of income over expenditure (1,890,850) (3,736,913) (640,966) (1,512,920) Depreciation 154,352 109,024 52,323 44,139 Fluctuation Adjustment of BRAC Contribution 816,000 - 276,610 Loan loss provision 1,011,081 1,564,887 342,739 633,557 Cash flow before changes in working capital 90,583 (2,063,002) 30,706 (835,223) Changes in working capital Decrease/(increase) of Interest Receivable 82,464 66,446 27,954 26,901 Decrease/(increase) of other current assets (1,857,370) 190,528 (629,617) 77,137 Increase/(decrease) of other liabilities 2,988,321 6,141,471 1,012,990 2,486,426 Net cash from operations 1,303,998 4,335,443 442,033 1,755,240 25.0 Use of Estimates and Judgements The preparation of financial statements in conformity with International Financial Reporting Standards requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements and reported amounts of revenues and expenses during the reported period. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The estimates and associated assumption are based on historical experiences, the results of which form the basis of making the judgments about the carrying values and liabilities that are not readily apparent from other sources. Actual results ultimately may differ from these estimates. BRAC makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Management identifies all significant accounting polices and those that involve high judgment and in particular the significant areas of estimation and un-certainty in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are: i) Impairment The company regularly reviews its loan portfolio and other assets and makes judgments in determining whether an impairment loss should be recognized in respect of observable data that may impact on future estimated cash flows. The methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed regularly to reduce any differences between loss estimates and actual loss experience. Amount and timing of future cash flows are reviewed regularly to reduce any differences between loss estimates and actual loss experience. ii) Provision and contingencies A provision is recognized if as a result of past events, the company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.


BRAC SOUTH SUDAN

(891,615)

TOTAL

9,516

Fixed Deposits

Cash in hand and at banks

Advances, deposits and prepayment

901,131

-

12,545

-

(51,839)

29,546

-

10,460

560

63,824

19,086

SSP

-

SSP

Loans to Village Organisation members

Grants and accounts Receivable

P4P

223

-

223

-

-

-

-

SSP

(WFP)

BRAC USA

-

SSP

( BRAC )

F FR

Fixed assets

FFR

2,119

-

(39,214)

-

41,333

-

-

SSP

( Rum )

DDR

UNESCO

UNMIS

Gender

2,474

-

(72,546)

-

75,020

-

-

SSP

284

Oxfam

SSP

-

SSP

security Novib

-

SSP

Food

-

-

-

44,937

44,250

33

44,250

-

33

-

AGI

Health

PSI

Nutration FFTIG

SRF

SSP

SSP 12,034

-

-

5,252

201,632

298,894

SSP

116,812

-

-

-

3,034

SSP

SSP 8,113

SSP 43,631

1,107,187 (98,741)

-

109,542 114,568

SSP

386,379

SSP 6,497

SSP 18,504 29,814 (24,526)

(6,370)

-

6,370

22,673

206,884

310,928

119,846

1,229,383

23,940

430,010

32,788

6,497

SSP

-

1,356,689

512,460

1,709

20,213 24,766,577

9,500,000

9,813,726

- 3,583,702

-

-

27,500

-

-

-

12,654

- 863,476

MF

Total

- -

- 2,474

- 284

- -

- 33

- -

-

8,189

2,425

- 14,484

-

861,051

5,252

14,174

-

187,458

12,034

956

-

297,938

3,034

-

-

116,812

12,654

20,367

-

1,196,362

43,631

27,500

15,827

-

2,264

-

5,288

-

- 384,115

8,113

-

-

-

6,497

2902051

479,998 1,709 12,778,378

-

-

18,504

209,431

29,546

223

2,119

2,474

284

44,937

33

44,250

863,476

22,673

206,884

310,928

119,846

1,229,383

23,940

430,010

32,788

6,497

28,179,142

12,545

20,213 24,766,577

9,516

TOTAL

5,015,000 (6,279,858)

5,015,000

Retained Surplus (6,279,858)

8,850,000

12,893,526

2,902,051

3,567,984

BRAC Contribution

2,119

44,250

- -

1,021,008

223

44,937

8,850,000

10,460

-

1,021,008

12,545

-

Loan security fund

9,516

- -

Loan from BRAC

Liabilities for Expenses

-

19,086

Term Loan

- -

Grants received in advance account

-

-

-

Donor Fund investment in Fixed Assets

Liabilities:

LIABILITIES AND CAPITAL FUND

28,179,142

9,500,000

11,644,868

3,584,282

1,371,412

1,356,689

721,891

SSP

BRAC UK Comic Relief Stromee

20

863,476 (15,346)

-

29,810

-

8,189

SSP

BRAC USA

-

-

-

44,937

SSP

-

284

-

-

-

-

SSP

( Yamb )

DDR

ASSETS

Agriculture Education

As at 31st December’ 2011

Balance Sheet

BRAC South Sudan

NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

48 Annual Report 2011


BRAC SOUTH SUDAN

SSP

UNESCO

UNMIS Gender Oxfam BRAC USA BRAC UK

SSP

SSP

SSP

SSP

SSP

SSP

SSP

Yambio

DDR SSP

Relief

Comic

Health

PSI

Nutration

FFTIG

SRF

MF

SSP

SSP

SSP

SSP

SSP

SSP

SSP

SSP

Stromee SSP

Total

14,135

14,135

59,173 156,714

59,173 156,714

29,965 29,965

74,459 74,459

9,151 9,151

3,469 397,392 3,469 397,392

425,700 425,700

458,514 458,514

411,085 411,085

273,502 273,502

1,021,287 1,021,287

185,844 185,844

698,479 490,172 698,479 490,172

756 756

2,074,415 2,146,885 2,074,415 3,076,654

-

6,522

33,568

-

Refreshers course

-

Reserch & evaluation

6,590

-

-

-

-

-

-

-

-

40,406 -

3,000

-

-

-

-

-

-

-

-

6,415

20,310

-

3,960

-

48,862

-

-

-

-

-

36

3,125

11,890

-

-

-

-

-

-

-

- 1,440

- 2,599

- 15,154

9,500

-

-

-

-

- 52,109

7,761 78,822

-

4,436

66,266

14,135

-

5,636

- 240

- 6,586

-

29,965

74,459

-

-

-

59,173 156,714

-

1,506

-

9,151

-

-

9,151

-

-

-

-

-

-

-

-

-

-

-

-

-

- - -

-

-

-

-

-

-

-

-

-

3,469 397,392

-

-

-

-

-

-

-

-

- 132,723

-

- 37,393

- 10,365 -

99,301 46,306

425,700

-

27,858

1,806

-

2,000

-

-

15,257

9,274

1,171

-

22,467

30,598

64,408

-

-

- 105,254

- 25,532

-

-

-

-

- 37,872

- 3,469 153,507 -

80,506

458,514

29,579 80,480

11,211

-

36

2,819

8,479

-

-

17,062

53,463

7,510

13,340

7,722

9,722

90,040

-

411,085

273,502

-

19,321

476

3,846

-

-

-

7,220

36,510

3,796

4,222

3,903

15,034

57,904

-

-

104,188

16,198

-

37,423

1,239

-

1,907

-

-

15,358

8,137

8,270

-

15,290

44,497

83,953

-

-

103,317

25,729

113,394

325,426

-

-

-

7,888

(11,236)

-

5,664

8,794

16,668

-

-

-

-

32,959

100,020

1,021,287

-

90,945

670

185,844

-

23,656

1,431

-

-

15,735

-

-

-

-

2,488

25,690

33,658

772

698,479 490,172

-

38,499

7,590

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

324,088

141,153

6,925

20,662

-

-

- 1,011,081

-

-

-

38,434

10,511

17,200

- 480,515

-

756

-

-

756

-

-

8,997,363

- (1,890,852)

(1,890,852)

11,817,984 -

2,074,415 4,967,506

928,543

154,352

6,665

106,175

33,238

1,011,081

73,198

485,292

153,479

408,802

483,802

425,681

813,783

-

-

393,275

948,125

3,472,602

9,927,132

1,919,891

616,942

120,621

329,270 600,499

1,919,891

26,273

5,368

Net Surplus for the year

394,836 -

16,283

40,455 1,850,683

-

- 60,568

-

-

-

141,469

-

-

-

-

-

83,371

- 109,888

7,498

18,320

20,502

-

-

-

-

108,391

356,210 158,002

-

33,221

33,238

-

7,925

26,934

742

250,790

44,330

63,305

36,963

-

-

-

106,798

Total expenses

Fund disbursement to NGO/CBO’S

H.O.Logistics & management support

Depreciation on fixed assets

Monotoring & Evaluation

-

-

-

-

to customers

-

-

-

-

-

Contengency cost

Impairment losses on loans and advances

8,037

Staff training & development

Program supplies

-

2,858

Beneficiary Training

Maintenance & general expenses

-

-

9,645

School rent and maintenance

Stationery,rent &utilities

-

-

-

-

9,699

Teachers training

SS Training

Teachers salaries

Travelling & transportation

Salaries & benefits

EXPENDITURE

66,266

66,266

Donor grants

Total Income

329,270 600,499

Service Charge on loan to group members

Membership and Other Fees

INCOME

SSP

Rum

SSP

SSP

DDR

BRAC USA

P4P

FFR

AGI

Agriculture Education

For the period ended 31 December’2011

Statement Of Comprehensive Income

BRAC South Sudan

NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)

Annual Report 2011 49


50 Annual Report 2011


Photo Credit: Client Photos: BRAC Reat of the Photos: BRAC/Shehzad Noorani/Lorne Mallin

BRAC BRAC Centre 75 Mohakhali Dhaka 1212 Bangladesh

T : +88 02 9881265 F : +88 02 8823542 E : info@brac.net W : www.brac.net

BRAC International

BRAC South Sudan

Teleportboulevard 140 1043 EJ Amsterdam Netherlands

Plot # 31, Block L 14 Atlabara, Juba South Sudan


BRAC communications/INT AR11/Aug12

www.brac.net

South Sudan Annual Report 2011  

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