M E A S U R I N G
2013 ANNUAL REPORT
Our purpose... Vision:
Christel House helps South African children break the cycle of poverty, realise their hopes and dreams, and become self-sufficient contributing members of society.
Christel House transforms lives by providing impoverished children with an independent education, nutrition, health care and a nurturing environment, and by empowering their families and communities through outreach services.
Respect, Responsibility, Independence and Integrity are organisational values that guide the work of Christel House. By embracing these values, our children will become responsible citizens and productive members of society.
Christel House children realise their fullest potential by working hard in their studies, pledging to be good citizens and giving back to their communities.
to help children break the cycle of poverty and become contributing members of society.
Contents Chairpersonâ€™s Report
Audit & Risk Committee
Board of Directors
Results & Outcomes
Social Services Report
Fundraising & Development
Work Study Report
The Christel House Model
NPO Number: 017-044 NPO
Christel House South Africa is a registered Non-Profit Organisation in terms of Section 18A of the SA Income Tax Act 58 of 1962.
Chairpersonâ€™s Report I am pleased to report that Christel House South Africa has completed another successful year. We measure our success by the number of students retained from grades R to 12, the number we graduate and how many are placed in institutions of higher learning or employment. As you will discover in our comprehensive Annual Report, we have maintained and in many cases improved on these key metrics. It is important for the reader to understand the full context of this success. An extraordinary performance like ours, with students from financially distressed communities subject to the challenges of drugs, gangsterism and violence, requires quality educators, requisite nutrition, social service interventions and an culture of good values to build learnersâ€™ confidence and unlock their potential. We have demonstrated that it is possible, with the shared vision, correct model and collective passion, to break the cycle of poverty and return well-prepared citizens to our local communities. In order to provide for the more-than-700 children at Christel House, as well as replicate this well-tested educational model in other acutely needful South African communities, we require financial support from individuals, foundations and corporations. Our overhead is covered by Christel House International, so all local donations are utilised 100% for the development of our students. I wish to thank all our donors for helping us increase funds raised in 2013. I applaud our team of experts who help our learners make their dreams a reality. We regret the untimely passing of Ron Haylock and the loss of his kind and substantive contribution to our cause. We welcome Lulu Gwagwa to our board and appreciate her immediate positive impact. My other board colleagues, especially Elspeth Donovan, Charles Abraham and Brian Stocks, have been very helpful in my inaugural year as Chairman and deserve thanks. Lastly, the untiring efforts of Christel DeHaan to make the lives of poor children rich with opportunity, to give them the Christel House chance at life, is an inspiration to us all. Stephen Ross March 2013
Luthando Williams: South African Navy, Simonstown Born and raised in Langa, Luthando is one of three Christel House alumni who have embarked on careers in the SA National Defense Force, facilitating regional security, assisting Search and Rescue, securing our nations trade routes, and providing humanitarian assistance to the region. Page 3
Board of Directors Stephen Ross Chairman Marketing Committee
Experience: Business, Marketing & Public Relations
Experience: Business and Finance
Christel DeHaan (USA) Nominations Committee
Experience: Business, Education, Fundraising, Marketing & Public Relations
Experience: Business, Finance, Infrastructure Development, Marketing & Public Relations
Experience: Business, Finance, Infrastructure Development
Experience: Business, Finance, Infrastructure Development, Marketing & Public Relations
Experience: Education, Social Development
Stewart Van Graan
Education Committee, Remuneration Committee
Experience: Business, Information, Communication and Technology, Marketing & Public Relations
Experience: Education, Social Development
Charles Abrahams Audit Committee Remuneration Committee
Experience: Business, Governance and Law
Ron Haylock (UK) Nominations Committee
Experience: Business, Fundraising, Infrastructure Development, Marketing & Public Relations (Deceased 2013)
is to ensure that as many children as possible across South Africa have the Christel House chance at life. As the board, we are committed to ensuring professional, compassionate, resultsbased performance with integrity being paramount.â€? Stephen Ross Chairperson
In pursuit of these objectives, the Board of Chistel House South Africa strives to adhere to the principles of good corporate governance as stipulated in the Code of Corporate Practices and Conduct as recommended by the King III Report. All members of the board are non-executive directors.
Ronald Fortune: Principal - Secondary School Lucille Smith: Principal - Primary School
Christel House offers the most comprehensive school programme in South Africa to the most deprived children in Cape Town. Our programmes have been developed specifically to address the myriad challenges faced by children living in our poorest communities. We address the immediate needs of our learners and help them develop long-term goals. We stay a longer course than other school programmes, guiding our graduates into adulthood and gainful employment. To understand the success of Christel House, it is important to know how South African students perform nationally. Up to 60% of students drop out before grade 9, and another 45% exit between grades 9 and 12. Thus, the high National Senior Certificate results of 78% (nationally) and 82% (provincially) reflect the success of a very small number of the total school-aged population. And, most of these successful graduates do not come from a background of abject poverty like the students of Christel House. CHSA boasts a proud 97.8% National Senior Certificate pass rate since inception, with a 100% pass rate over the last five years. Importantly, our students keep coming back. Our average annual retention rate of 99% means almost every member of our original 2002 grade 1 class has graduated.
academic programme, from early childhood to Grade 12.
100% Matric pass rate over the last five years.
99% annual student retention rate
CH literacy pass rates exceed the Western Cape average by
CH numeracy pass rates exceed the Western Cape average by
Christel House teachers exceed the national average time-on-task by
Most CHSA learners start grade R with little or no English, but by the end of their first year are speaking it fluently. The 2013 Systemic test pass rates show that the number of our students who pass English exceeds the WCED average by 35.9% in grade 3, 40.5% in grade 6 and 41.1% in grade 9. But, the robust 13-year academic programme (grades R to 12) is not the end of our relationship with learners. To ensure we effectively break the cycle of poverty, CHSA has a unique Work Study Programme, which extends an additional five years of support to assist graduates as they complete tertiary studies and secure employment. Job opportunities are secured through a carefully nurtured network of relationships with the private sector - a level of engagement unequalled by most work placement agencies. Ninety-five percent of our school leavers participate in this Work Study Programme. Page 6
Academic excellence is at the heart of every Christel House, but our holistic approach has enabled learners to excel in other areas as well. We are very proud to have produced eight national fencers and one national baseball player. In 2013 CHSA learners were members of provincial teams in fencing, baseball, softball and debating. Our cultural programme is also robust. The school choir participated in the opening of the African Fencing Games and the Peace Mass Choir,
and we now have a 68-member strong woodwind band. Producing these results requires skilled and devoted teachers. Our educators commit to teaching more hours daily and more days annually than the SA norm. They also undertake ongoing professional development outside the 200 normal school days to enhance their instructional skills. We salute and thank them for their unwavering dedication. Page 7
Social Services and Health Report In twenty years of democracy, South Africa has improved housing and services for many of its citizens, but the tide of urbanisation continues to create great social challenges. In urban areas, the number of children with little or no access to health, education, social and wellness services, particularly in poverty-stricken informal settlements, is staggering. For many learners at Christel House, the school represents the only structure and stability in their lives. Here they are nurtured in a safe, secure environment. It is no exaggeration that for most of our learners this school is their only hope.
For many learners, the school represents the only structure and stability in their lives.
The year 2013 was particularly challenging because of increased gang violence. Frequent gun battles made it difficult for many learners to sleep at night. In counselling, they often spoke of being afraid to walk outside and of fearing for the safety of families, friends and neighbours. The Social Services Department provides learners and families with physical, social and wellness support. Services include: • Child protection services which immediately investigate any sign of child abuse or neglect and provides support to victims. • Psycho-social support for all learners, particularly those affected by any form of trauma. • Preventative services, which include regular health care, deworming and sex education, rendered by the Health Department at Christel House. • Parental Empowerment through workshops addressing topics like domestic violence and substance
abuse, and through skills programmes that increase employment opportunities. We cannot prevent or heal all wounds, but we can be there for our children each day - to listen, to comfort, to love and to accept them unconditionally. By so doing we help them to acquire life skills necessary to cope with future challenges. Claudia Carew: Head of Social Services and Health.
Freedom Park Informal Settlement:
Christel House social workers on a home visit
1 186 interventions
with learners and families were conducted by Social Services in 2013. Interventions include: Individual counselling, family counselling, crisis intervention, psycho-social assessments, home visits and referrals where necessary. Page 9
ABRIDGED FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2013 Christel House South Africa once again achieved an unqualified audit report. The complete set of audited financial statements is available on our website:
R Accumulated Surplus
Current Assets Cash and cash equivalents Temporarily restricted funds Trade and other receivables
34 767 563
35 552 271
18 230 823 769 007 3 659 696 22 659 526
18 842 548 754 766 707 472 20 304 786
57 427 089
55 857 057
EQUITY AND LIABILITIES Equity Accumulated surplus Liabilities Current Liabilities Deferred income Temporarily restricted funds held Trade and other payables
Total Equity and Liabilities
35 960 086
34 727 999
Surplus / (Deficit) for the year
36 772 214
Balance at 1 January 2012
(2 044 215) 34 727 999
(2 044 215) 34 727 999
1 232 087
1 232 087
35 960 086
35 960 086
Changes in equity Surplus for the year
STATEMENT OF CASH FLOWS Note
Cash flows from operating activities Cash receipts from donors Cash paid to suppliers & employees
Cash generated from operations Interest Income
18 439 614 769 007 2 258 382 21 129 058
18 167 260 754 776 2 207 032 21 129 058
57 427 089
55 857 057
38 492 499 (37 299 914) 1 192 585 757 075
2012 R 30 074 903 (31 977 392) (1 902 489) 877 491
(1 949 660)
(1 024 998)
Cash flows from investing activities Purchase of property, plant, equipment
(2 561 385)
(2 604 299)
Total cash movement for the year Cash at the beginning of the year
(611 725) 18 842 548
(3 629 297) 22 471 845
18 230 823
18 842 548
Net cash from operating activities
STATEMENT OF COMPREHENSIVE INCOME
Revenue Operating Expenses Operating Surplus / (Deficit) Investment revenue
36 772 214
Balance at 31 December 2012
Non-Current Assets Property, plant and equipment
Balance at 1 January 2011 Changes in equity (Defecit) for the year
STATEMENT OF FINANCIAL POSITION
Total cash at the end of the year
Note to Cash Flow and Deferred Income: *Because of fluctuations and uncertainty in the exchange rate, Christel House International made 2014 operational funds available in 2013.
38 220 145 (37 745 133) 475 012 757 075
32 858 837 (35 780 543) (2 921 706) 877 491
The audited financial statements were compiled in accordance with the International Financial Reporting Standards for Small to Medium Sized Entities and in the manner required by the Companies Act of South Africa 2008.
1 232 087
(2 044 215)
The auditors were Henri Grove & Partners Registered Auditors, Bellville.
Audit & Risk Committee Report
REVENUE Support and partnership raised in 2013 Relationships between Christel House South Africa and our local and international partners remain strong. Despite continued global economic challenges, CHSA total revenue
increased by 13% over the previous year, due primarily to continued growth in contributions from the South African private and public sector. South African Funding
R 14 688 172
International Funding R 23 531 973 TOTAL REVENUE
Christel House International Operating fund US Contributions and Grants UK Contributions
h i 186% 14% Investment Income
We continue to see substantial increases in SA private sector funding, up 19% this year. This can be attributed to building ongoing relationships that focus on student success and offer our partners real returns in human capital terms. Since 2010 there has been a 54% rise in local private sector investment in Christel House SA.
Costs unrelated to programmes are kept at 10% or lower. Lydia Dreyer CFO – Christel House South Africa
Operating Costs School Programme Work Study Programme Fundraising Costs Management Costs
R 33 824 840 731 730 R R 2 330 120 858 443 R
R 37 745 133
School Programme Costs Staff/Outside Services Books/Supplies/Uniforms Student Transport/Food Facilities/Medical Services Equipment
Brian Stocks Chairperson - Audit & Risk Committee
Remuneration Committee Report
EXPENDITURE How our model channelled funding in 2013 Overall costs increased by a modest 4% this year despite constant inflationary pressures and increased student count in both the school and Work Study programmes. Rigorous costcontrol measures kept expenditures in check.
The committee is satisfied that it has considered and discharged its responsibilities in accordance with its mandate and terms of reference during the year under review. We are satisfied with the improving trend in the results of the management’s assessment of its internal control and risk environments as confirmed by the combined assurance model implemented. The committee formed the opinion that at the date of this report there were no material breakdowns in internal control, including financial control that would result in any material loss. The committee reviewed and recommended the approval of the annual financial statements to the board.
INCREASE in SA Funding: 2011 to 2013
h h 18% 6%
SA Contributions SA Government Grant
h h 19% 37%
_ _ _ _ _ R 5m _ _ _ _ _
R 38 220 145
Cash Special Events In-kind Contributions Competitive Grants
The committee carried out its duties to stakeholders as required by the King Report and its own terms of reference in respect of the 2013 financial year.
Staff/Outside services Travel/Facilities Phone/Equipment
The committee carried out its duties as required by the King Report and the committee’s terms of reference to submit this report to stakeholders in respect of the 2013 fiscal year. The committee reviewed the company’s general remuneration policy and specific packages for executive and senior management, educators and support staff.
The committee also reviewed and endorsed the company’s policy not to remunerate non-executive directors. The remuneration strategy for management and the workforce at CHSA is designed to: 1. Attract and retain individuals with the ability, experience and skill to fulfill the mission of the organisation. 2. Incentivise employees to deliver sustained performance and appropriate risk management. 3. Provide market-competitive compensation packages. 4. Encourage behaviour consistent with CHSA values The committee submits that it has considered and discharged its responsibilities in accordance with its mandate and terms of reference during the year under review. Elspeth Donovan Chairperson – Remuneration Committee
Distribution of Remuneration Unskilled Semi-skilled Academically 4% 2% Qualified/Junior Management/ Top Supervisors
40% African, Coloured or Indian men
1.5% White men
Work Study Programme Management Costs
Staff/Outside services Facilities Telephone/Equipment
Professionally Qualified & Experienced Staff
57% African, Coloured or Indian women
CHSA has 72 employees. Our educators have between 5 and 30 years practical experience.
Our year in numbers...
ACADEMIC RESULTS 100% 99% 98% 98% 100%
The Christel House Work Study Programme provides support to graduates for up to five years following matriculation.
Of the 147 graduates from 2009 to 2013: Matric pass rate the last 5 years
are at university
are at technical college
are in learnerships
are in meaningful employment
are still to be placed
Annual student retention rate
Average daily student attendance
Average teacher attendance
Students receiving breakfast, lunch and a snack daily
Students transported to and from school
Students living in disadvantaged communities
of graduates are either working, studying or doing both
Grade 10 pupils “Giving Back”
at one of the several informal settlements we serve
All Christel House students participate in our Service Learning programme, which teaches them to become active, community-minded citizens.
18 Projects 7 260 Hours 8 Communities to uplift communities completed
of service learning, outside class hours
53 Graduates 550 Hours
volunteered 10 hours or more to the school in 2013 Page 16
given back to school by alumni
received the benefits of service learning projects
Jubayda Solomons sorting new school uniforms
This CH mother also runs the school laundry and repairs school uniforms Christel House parents, all of whom are financially distressed and cannot contribute school fees, gave back to the school in other ways in 2013.
1 Days 543
Worked by parents
Time in labour days
Volunteered last year
Parents contribute in a number ways: Escorting Learners • Classroom Assistants • Invigilating Exams • Maintaining school books, uniforms and other property • Laundry Services • Assisting supervision of excursions • Cleaning, sealing and painting school facilities Page 17
Parents at a weekend skills workshop These are held throughout the year to aid employment prospects for our many unemployed parents.
Christel House employs a holistic approach to our learnersâ€™ well-being and education. Students spend eight hours a day or more in our care, but every evening they return to deprived communities and families in economic distress. The school endeavours to educate and uplift families through a series of workshops and outreach activities throughout the year. We know that informed, empowered parents will create a better home environment for their children. During 2013, Christel House conducted the following:
completed this course Designed to teach the fundamental skills needed to start a business.
Wordworks Language Course
completed these workshops A 7-session workshop designed to teach Grade R parents how to help their children learn to read.
Computer Literacy Course
completed this 10-session course Aimed at families of Grade 1 and 2 learners, to build confidence with technology.
completed this 2-week course Designed to teach a practical, income-generating skill.
“It is great to see how technology is used at Christel House, in all its various ways, to help the children develop a wide range skills.” Aongus Hegarty, Dell President (Europe, Middle East and Africa) Opposite: Joy Petersen teaching a computer-based Grade 11 class Technology supports learning in most aspects of the school. Computer labs help children master comprehensive computer skills. Teachers are proficient with laptops and use interactive digital projectors and “smart boards” in classrooms. Students research using the internet. Christel House South Africa is committed to bridging the digital divide.
Performance Measurement Performance measurement is key to our success. Christel House has clearly defined norms and standards which set high expectations. Goals for educators, learners and parents are aligned with our annual business plan and are reported on monthly.
Continuous monitoring allows us to identify problems early, and intervene to implement appropriate corrective measures in a timely manner. Our teachers willingly commit to more instructional hours annually than is the SA norm. They also engage in professional development outside their 200 normal school days per year to hone their methodology. By successfully completing an NQF level 6 qualification at the University of the Western Cape, our educators are now able to introduce innovative technology strategies such as digital media into their classroom practice.
teacher time-on-task than the national average
leave per annum for educators, far less than the national average
Professional Development each year, in addition to the 200 normal school days
Opposite: Chamelle Da Silva teaching extra afternoon lessons Chamelle is studying for her Doctorate in Education, with a focus on Technology Integration in primary school education. She also teaches parents Learning Support in Literacy and Computer Skills. Page 21
Fundraising and Development Report
We’re selling impact... Attracting new stakeholders and carefully stewarding their investments will help Christel House South Africa serve more disadvantaged children. We are committed to building sustainable investor relationships, where the traditional ”charity” mindset is replaced by quantifying the economic value of our social impact.
We operate in the Social Capital market, engaging with stakeholders who attach significant value to the social benefits we are creating. Initiatives to address economic disparity in South Africa require intersectoral solutions. By working together, the non-profit sector, private enterprise and government can help close this gap and achieve new levels of prosperity. And in this process, public and private sector funders will increasingly want to measure the return on their investment. This can only be done by quantifying results and developing outcome measures. Christel House South Africa holds itself accountable through rigorous outcome metrics - like the rates for daily attendance, annual student retention, graduation, matric passage, university admissions and employment status. These outcome statistics, as well as the individual stories of students like Nontando, make a compelling case for one irrefutable conclusion: Christel House WORKS. We would like to recognise and thank the individuals, foundations and corporations
financial support for learners from private sector partners partners
new corporate, foundation and individual partners investing in Christel House SA in 2013
Goal for support from partner investors in 2014
IMPACT who partner with us. Every rand invested goes to fund the children’s school programme, not to administrative or fundraising expenses. Thanks to this shared vision achievements like Nontando’s are possible. We invite you to join us in making make more stories like hers a reality.
Sharon Williams Marketing and Development
Chemical Engineer, Chevron. Nontando grew up in the informal settlement of Langa, in a one-roomed house so small that half the family had to sleep outside. She was valedictorian of her Christel House graduating class, and earned a bachelor’s degree in chemical engineering. Today she works at Chevron’s Cape Town refinery helping to supply South Africa’s energy needs. Nontando is also studying for her post-graduate degree and plans to be involved in the development of next generation cleaner fuels. Page 23
The Work Study Programme
The extra five miles... Unique to Christel House and essential to fulfilling our pledge of creating active citizens, the Work Study Programme assists graduates for up to 5 years following matric. By providing them with guidance, mentoring, and financial stipends as they pursue their career aspirations, Christel House helps these young adults become firmly established in the work force. Through partnerships with the private sector and government Christel House secures full or partial bursaries for students continuing with tertiary studies. To monitor their progress we regularly check their grades and get updates on their progress by phone, at quarterly alumni meetings and when they return to school as volunteers. Early identification of problems is critical, and allows timely intervention to keep students on track. When needed, Christel House secures mentors to provide Work Study students with additional academic support. Prior to payment of monthly stipends, our graduatesâ€™ attendance and performance are confirmed with the institution. Christel House also maintains relationships with prospective employers to secure learnerships, apprenticeships and full time employment for graduates who do not pursue further studies. As individual learners identify new fields of interest, additional relationships are cultivated.
bursaries for college or university study secured in the last 3 years
tertiary institutions have accepted our graduates and work closely with our programme
companies support the programme, offering mentoring, internships and employment
The Work Study programme is only possible with the support of our partners. We show our gratitude by informing these partners frequently on the progress of our students.
Chris Hanson Head of Work Study
Undergraduate student, Stellenbosch Universtity. Nadine matriculated in 2013 as one of our top achievers. Stellenbosch University awarded her a Recruitment Bursary. Raised in Hanover Park, Nadine is acutely aware of the psycho-social problems that plague impoverished communities. She plans to complete a Masters in Psychology and become a teacher, equipped with a full understanding of the problems of poverty and the tools to help stem the tide of gangsterism and drugs through education. Page 25
CHRISTEL HOUSE M O D E L
South Africa strives to advance the social and economic transformation and participation of black South Africans in the economy. To ensure sustainable access to the economy, CHSA contibutes on two levels: imparting transferable skills and facilitating access to the workplace.
Life Skills (making good choices)
Values & Character Building
English Language Development
Creative Play Numeracy Development
Gross & Fine Motor Skills Development
Service Learning: “Giving Back”
Learner support and remediation
Sport & Music
Transport Food Uniforms
Clear goals: success planning and career guidance
Time-on-task: longer school days
Counselling & support
Education Value-based curriculum
Food, uniforms, transport, health care & social services
Service Learning: Giving Back
Sex & Gender Education
Service Learning: “Giving Back”
Service Learning: “Giving Back”
Support & Mentoring
Student Life: sports, music, arts, culture
Early Childhood DEVELOPMENT
Love & nurture
Cost per Learner
Average Cost per Learner = R 51 564 pa Management & Fundraising R 4 356 Work Study & Career Guidance - R 1 000 2% 8% Nutrition - R 3 843 Health Care & 7% Social Services - R 1 932 Learning Material, Uniforms & Support Services - R 2 243 Outreach & Social Services - R 607
Transportation R 4 997
Depreciation R 4 571
EDUCATION R 28 015
9% Page 27
THE THE COMMUNITIES COMMUNITIES Cape Town
J J J JJ Bokmakierie 60km
Pooke se Bos Settlement
Christel House Ottery
JJ Springfield Informal Settlement
J JJ J Phumlani Village Settlement
Hanover Park - 30km
Philippi 20 km
Zille-Raine Informal Settlement
WE WE SERVE SERVE
Egoli Informal Settlement
J Brownâ€™s Farm 70km
J Phola Park Settlement
McCluese Informal Settlement
Mitchells Plain - 80km
Jim se Bos Settlement
J J Strandfontein 25 km
Strandfontein Informal Settlements
732 Students... in these locations... twice a day.
F a l s e B a y
On behalf of our learners, teachers and support staff, we would like to thank our partners and sponsors for their ongoing support of Christel House South Africa.
Phone: +27 21 704 9406 / 7 / 8 Email: email@example.com Website: www.sa.christelhouse.org Banking Details:
NAME OF ACCOUNT: NAME OF BANK: TYPE OF ACCOUNT: ACCOUNT NUMBER: BRANCH CODE: SWIFT:
CHRISTEL HOUSE SOUTH AFRICA NEDBANK MONEY MARKET INVESTMENT ACCOUNT 1047 039 117 104 709 NEDSZAJJ
In support of Christel House