SOME SEE WHAT IS...
The Year in Review
How You Can Help
11 Character Development
24 Chairmanâ€™s Statement
18 The Christel House Model
32 Map of Communities Served
WE SEE WHAT CAN BE.
Christel House is an accredited Level 2 B-BBEE contributor. B-BBEE Certificate Number: ADJGEN/171214/01
NPO Number: 017-044 NPO Christel House is a registered Non-Profit Organisation in terms of Section 18A of the SA Income Tax Act 58 of 1962.
Cover photograph: Bruce Sutherland, City of Cape Town. 1
The Year in Review
BREAKING NEW GROUND MTN CEO, Mteto Nyati and the team get stuck in. In 2016, MTN built our new computer laboratory and a music & drama room. They also paid for our learners’ school uniforms. 2
“Christel House is a business. Our ‘product’ is Employable Citizens and we thrive through sustainable partnerships,” writes CEO Nicky Sheridan. Many South Africans see a national unemployment rate of 26% as indicative of an ailing economy. At Christel House South Africa (CHSA), we see it as a huge opportunity. Businesses struggle to find qualified candidates to fill job vacancies and there is a shortage of highly employable persons in the marketplace. So, while 3
Year in Review
BREAKING NEW GROUND
we strive for academic excellence and compete favourably with the best private schools in terms of our results, we also place considerable focus on Character Development and Employability. Almost a quarter of our students did not miss one of the 200 nine-hour school days last year. Classrooms are set up so that the high achievers coach and mentor classmates in need of help. Deadlines are mandatory. Positive behavior is rewarded and negative behavior confronted. Teams collaborate on tasks, just as they do in the commercial world. This methodology makes our graduates employment-ready. The fact that 98% of our graduates are gainfully employed or studying at university or college bears testimony to our approach. Entrepreneurship is taught beginning in the foundation phase, and continuing through the intermediate phase and high school. We also hold 10-week entrepreneurship courses for graduates. The world of work is changing rapidly and at CHSA we strive to stay ahead of the curve.
MTN built us a new computer laboratory and a music & drama room in 2016. They also paid for our school uniforms. As importantly, MTN employees volunteer at CHSA, personally giving back to benefit our pupils.
Like businesses, we broaden our impact through partnerships. FutureMe brings its expertise to help our high school students select the best career path. Tyre recyclers, Redisa, and the Tsebo Group not only sponsor learners and employ graduates, but also have founded innovative social entrepreneurship ventures to uplift parents of our learners.
All of our partners share our ultimate goal - to break the cycle of poverty, permanently. Their contributions to now self-sufficient CHSA graduates have been literally life-changing. What is also very apparent is the value of these contributions to our country’s economy. We salute all of you who have become part of the South African solution.
Our partners, many of whom are heavily invested in this country, share our visi on and are eager to drive change. Dell support us with best-in-class technology products and services and also pay for our learners’ lunches. This year, it hosted the Dell Women’s Entrepreneur Network event in Cape Town in June, which included a visit to CHSA. Almost 100 women from around the world came to the school and gave advice to 11 different township businesses in a fascinating business cultural exchange.
Ideas Exchange... Women entrepreneurs from around the world give advice and share insights with local township businesses and learners at the D.W.E.N. event held at Christel House. 5
IS AN OPPORTUNITY FOR EXCELLENCE
OF OUR SENIORS GRADUATED
ACHIEVED A BACHELORâ€™S PASS
We live in an age where innovation is ubiquitous, and is yet more desperately needed than ever to revitalise our nation. Innovation extends and enriches our lives, puts new opportunities within reach of more people, and gives us more information and ways to use it than ever before. Still, poverty remains the greatest challenge to the South African dream of a prosperous, equal society. So CHSA has developed new ways of educating, new goals for students and new paths to employment for our graduates. And we do this in collaboration with forward-thinking partners who share our vision. Technology integration, rigorous academic systems, instilling values through character building and service learning, and extensive cultural and sporting activities all combine to develop in students the IQ/EQ balance that will serve them well for life. 6
INNOVATION, ASPIRATION, COLLABoRATION... From Grade R, children are taught to first listen and think, and then to learn. This helps develop the critical thinking which is a cornerstone of our model. For crucial subjects like maths and science, the approach is deceptively simple. Daily tests, marked on the day given (and returned to students for rewriting if unsuccessful), provide an immediate measure of performance and progress. Feeding this data into our dashboard management system enables every student, teacher and Head of Department to gauge their academic progress, take immediate remedial action where necessary or set higher targets where there is such potential. The results speak for themselves. Our average scores - already significantly higher than national averages - improved dramatically in the 2016 Systemic Tests. Our comprehensive career guidance and entrepreneurship programmes, which begin in primary school, help our learners to identify fields of endeavour that suit their aptitudes and ambitions. With this information, we can help them plan tertiary studies and career paths most likely to yield successful citizens living productive lives. Once again, all of our CHSA seniors graduated this year. 25% of them earned subject distinctions. And while this has proven another successful year, it reveals more opportunity for innovation. For South Africa to be globally competitive, we must move towards becoming a more knowledge-based economy. 8
Technology partnerships free up learners to focus on the science, developing ambitions and skills that will help develop a knowledgebased economy.
With this in mind, 2017 will see a renewed focus on STEM subjects: maths, sciences and IT. Each year, more of our graduates enter related university degree programmes and as the supporting technology provided by our partners becomes second nature for our learners, they are able to focus on the discipline, on analysing the data and seeing the bigger picture. More learners now
aspire to careers in medicine, engineering, software development and other high-skill professions than was possible just a few years ago. This is the future made possible by committed teachers and valued partners who understand our mission. With your support, CHSA will continue to innovate, collaborate and transform this country. 9
CHARACTER DEVELOPMENT TEAMWORK MAKES THE DREAM WORK.
CAN’T STOP. WON’T STOP. 10
One Saturday last year, alumni of CHSA gathered, of their own volition, to discuss how they had transcended the dire circumstances of their youth to reach university, find quality employment and escape poverty. Identifying that they had been blessed with the most committed teachers and great facilities, they brainstormed how they might “give back” for their good fortune. Today, they conduct regular mentoring workshops with current CHSA learners. They assist with academics, discuss their newly acquired work experience and explain what it takes to successfully progress through college. This “learning through teaching” philosophy is something we use through all grades to develop the collaborative mindset learners will need to succeed in life. Learners are grouped by academic results, with high achievers helping to coach others. 11
A PARENTING JOURNEY When we become parents, we do what we can to ensure that our children grow up to be good people, good citizens and young adults with character. At CHSA, our teachers and support staff assume the role of co-parents to 973 students and graduates.
Business & Economics teacher Habiel Adams in action. His businesss class achieved 9 distinctions in the 2016 Matric exams.
The Christel House Character Education programme focusses on 7 essential traits - choice, optimism, motivation, perseverence, gratitude, self-control and social intelligence.
When â€œour childrenâ€? finish school, either at the end of a day or upon graduation, character is just as important, maybe even more so, as their academic achievements. They must resist multiple temptations as they return to their impoverished communities each night and they must overcome the challenges of an increasingly competitive workplace. That we can maintain a drug-free high school while serving communities beset with substance abuse problems, shows our programme is working. By the time they graduate, our learners have overcome challenges many of us cannot imagine, and in so doing, developed the character traits that will be invaluable as they progress through life. Our model promotes the intellectual, social, emotional and ethical development of young people, ensuring that they become responsible, caring, successful and contributing citizens. Visit our school, see our programmes in action, speak to our students. They inspire us every day and who knows, perhaps like our other partners, you may find yourself needing to get involved. 12
soft skills for a tough world Achieving “employability” requires, firstly, identifying the right career for an individual’s particular aptitudes and ambitions and, secondly, developing in that individual the attributes that employers desire. For the first part of the formula, we encourage learners from their primary school years to dream of what they might become. Men and women from diverse professions frequently visit our school to talk about what they do, stimulating existing ideas for some students and igniting new ambitions in others. This year saw a series of fantastic events for CHSA learners. DWEN, the Dell Women’s Entrepreneur Network, sent a delegation of the most inspiring female entrepreneurs from around the world for a day of collaboration, thoughtleadership and networking with Christel House learners. Minds were blown, horizons expanded, and particularly for some of our girls, glass ceilings shattered. FutureMe launched its first World of Work event at CHSA in November. At a sprawling expo, 36 companies with exhibition stands demonstrated their businesses to our learners. In the spirit of Ubuntu, seven other schools were invited to share this unique opportunity. From accountancy to agriculture, health care to animation, students were able to “kick the tyres” of a wide range of careers.
From this groundbreaking initiative, FutureMe has invested further, holding Life Orientation classes at our school for Grade 9’s and upwards. This brings us to the second part of the formula for employability - “soft skills.” Soft skills include critical thinking, communication ability, teamwork, time management, problem solving and work ethic. They are increasingly important to graduate recruiters sifting through the CVs of a growing pool of similarly qualified applicants. From Grade 7, students are taught to better understand themselves. Using psychometric testing we develop a profile of each, showing their aptitudes, inclinations, strengths and weaknesses. This provides the basis for a career roadmap and helps us identify what to work on to get there. Communication, collaboration and coaching are inculcated in learners from an early age. Grade 6’s are taught to look after Grade R’s, growing into a coaching mindset in high school, with high achievers mentoring peers in need of assistance.
from The 2016 EY Efficacy Study, using 2015 Data.
------------- Grade 1 Repeat Rate -------------
------------ Grade 11 Repeat Rate ------------
----------- Not reaching Grade 12 ----------
-------------- Grade 12 pass rate --------------
--- of graduates enrolled in tertiary studies ---
--- of graduates either
studying or working
Our students come from the most disadvantaged backgrounds, but with 98% of all CHSA graduates either studying or gainfully employed, our programme clearly equips them with other advantages, the ones most in demand, as they take their place in the world of work.
* 97% at time of study, 98% at 31 December 2016 14
COLLEGE & CAREERS
Of the 231* graduates from 2009 to Year End 2015:
100% Matric pass rate, 8 years running
are at university or college
are in apprenticeships
are gainfully employed
Bachelor pass rate (85% in 2015)
25% Achieved subject distinctions
94% Cumulative student retention rate 16
are still to be placed of graduates are either working, studying or doing both
* (279 graduates including the recently graduated class of 2016) 17
A holistic programme delivering a values-based curriculum EDUCATION
R 29 805
LEARNING MATERIAL, UNIFORMS & SUPPORT SERVICES
And the cost per learner All general and administrative expenses are covered by our Founder, so that every rand of your donation directly benefits the children. This budgeted figure constitutes 75% of the programme and services cost per learner, per year.
TRANSPORT 2 Trips per day and extracurricular activities
R 5 655
R 3 265
NUTRITION 2 Meals and a snack per day
R 3 830
COLLEGE & CAREERS PROGRAMME
R 1 065
OUTREACH & Service Learning
SPORTS & Extramural Activities
HEALTHCARE & Social Services
Exploring ways to give... Tier
Change a life by sponsoring, in part or total, one learner’s schooling.
2: Spo nsor ship s
Tier 3: Other Ways to Give
INTERNSHIPS AND JOBS Help our graduates, who have overcome so much, become working citizens.
Your help changes lives. Please contact us to discuss how you can make a difference or to plan your contribution.
Help us reach sustainability with a planned, recurring contribution.
A small contribution from your staff can change lives.
Help sponsor one of our fundraising events.
Sponsor uniforms, shoes, or help fund our laundry service.
BURSARIES & GRANTS Help fund our graduates in tertiary institutions.
TECHNOLOGY PARTNERSHIPS Help us deliver innovative learning and technology skills.
Sponsor or donate books & stationary, equipment & other materials.
Contribute to our learners’ nutrition.
Share your expertise: teach or coach learners or mentor graduates.
Or visit www.christelhouse.givengain.org to make a donation.
Social entrepreneurship a blueprint for what can be... In late 2015, Tsebo CEO Clive Smith visited CHSA to better understand our needs. After a brief tour he asked to have a private conversation with some of our learners. He emerged hours later with an idea. Our students were great, the academic programme excellent, but the reach had to go further. He had heard that each night our learners go back to families without jobs, communities without hope. Here was an opportunity.
sewing the seeds
Tsebo Group quickly established Christel’s Fresh Crops, a farm designed to employ and empower the parents of our learners. The goal: to provide not only upliftment for disenfranchised parents, but also another income stream and step towards sustainability for CHSA. Within one year the project employed sixteen parents and produced 100 000kg of potatoes and ten tunnels of tomatoes. Net profits are donated to Christel House. Tsebo’s vision is inspiring, but they are not alone. Redisa, a prominent recycling business and another key partner for CHSA, applied similar entrepreneurial thinking to the wider social challenges faced by families in our communities. Ten parents will soon be inducted into their micro-collections chain, giving them purpose, income and renewed self-respect. These businesses employ the “not for, but with” philosophy, which is akin to the “teach a man to fish” principle of CHSA. They have chosen to work with communities to address complex 22
of change Learners show off the fruits of their parents’ labour. Thanks to this enterprise, sixteen parents now have a permanent job and regular income.
socio-economic problems. They provide a blue print for the upliftment of this country. New models that pay for themselves and create employment are the future, not charity. It is possible to see a future where a disadvantaged majority find employment in this way, relying on their own economic contribution to live, and less on social grants.
For social entrepreneurs, the act of envisioning a new future begins with belief in the power of human beings to transform their lives. Much like CHSA’s founder, these agents of change target unjust and unsustainable equilibria, shaping them into something entirely new, superior, sustainable. Let’s use their example as the seed for social change. 23
Measurement & GOVERNANCE
Measurable social metrics provide staff and students with accurate reference points to improve scores.
a formula for Results Annual statements focus thinking on what has been accomplished and what the future holds. Our consistent academic performance; the eighth consecutive year of graduating the full class, this year with 65% eligible for further education and 25% earning distinctions, set us apart as a successful school developing students into citizens capable of breaking the cycle of poverty and adding value to their communities. These graduates are improving their odds of a more certain future in a less certain world. Our future relies on the generosity of our donors, the dedication of faculty and support staff and, of course, the diligence of our learners. As a board working in concert with Christel House International we support all these elements. We regularly review the comprehensive metrics which measure all elements of our performance locally and relative to our sister schools in other countries. As commercial companies contemplate their performance, the business of our board is to study the numbers that indicate the health of our school. We review the metrics of test results, attendance, student health, enrolment, operating budgets and donations. We debate approach, guide on strategy and support management. As a governing body we unanimously support CHSA
with personal contributions. We help to build a network of like minded South Africans devoted to creating opportunity for the poorest children to break the cycle of poverty and become citizens of tomorrow. We are fortunate to have women and men on our board from diverse backgrounds and fields of endeavour. Educator, lawyer, directors, chief executives, chartered accountants, all special people with a common goal to make a positive difference in the life of children who might not otherwise have the Christel House chance at life. I am privileged to serve with such a wonderful group. In 2016 we welcomed Wrenelle Stander as the newest member of our board, we look forward to her contribution in the years ahead. Perhaps the most important ingredient of our success, love, is also the hardest to measure. It is most evident on the faces of the children and an overwhelming presence at our assemblies. We hope you can visit and see for yourself. If you do, I have no doubt, you will join our wonderful donors as we help to solve our national education challenge in the Western Cape. With your support we will expand our work to other locations of need.
Stephen Ross Chairman, CHSA 25
Board of Directors Stephen Ross Chairman
Christel DeHaan (USA)
Nominations Committee Marketing Committee Experience: Business, Marketing & Public Relations
Experience: Business, Education, Fundraising, Marketing & Public Relations
Experience: Business, Finance, Fundraising, Marketing & Public Relations
Experience: Business and Finance
Wrenelle Stander Audit Committee Marketing Committee Experience: Business, Finance, Marketing & Public Relations
Stewart Van Graan Marketing Committee Experience: Business, Information, Communication and Technology, Marketing & Public Relations
Audit Committee Experience: Business, Finance, Infrastructure Development, Marketing & Public Relations
Audit Committee Experience: Business, Finance, Infrastructure Development
Education Committee Remuneration Committee
Nominations Committee Remuneration Committee
Experience: Education, Social Development
Experience: Business, Governance and Law
Education Committee Experience: Business and Education 26
Marketing Committee Experience: Business, Marketing & Public Relations
The Business of Education
Christel House is run like a business. We need to solicit donations to run the school. Donors want to see a positive social return on their investment. This return, headlined by those in quality employment or continued studies (98%), is achieved using interim key performance indicators (KPI’s) covering academic success, character development and employability.
We set clearly defined goals and objectives and staff are paid a variable portion of their salary as they meet the specific KPI’s, just like a business. Teachers are paid not just on the academic success of their class, but also on the university success rate and employability KPI’s, meaning they need to teach and mentor their students for the future as well as the present. All Board members donate to the school, receive no directors’ fees and pay their own expenses.
Teachers undertake 3 weeks of continuous professional development each year, outside school hours.
No Free Rides
Although we do not charge school fees, families, students and teachers gave back to the school and the communities we serve in a number of ways this year:
Parents volunteered at the school
Students gave back to communities through service learning
Parents attended workshops conducted by teachers and counsellors 27
ABRIDGED FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2016
R Accumulated Surplus
Christel House South Africa once again achieved an unqualified audit report. The complete set of audited financial statements is available on our website:
Figures in R
Non-Current Assets Property, plant and equipment
44 942 017
35 563 728
14 884 584 425 231 680 127 15 989 942
20 398 267 775 558 21 173 825
Balance at 31 December 2015
(418 687) 33 282 140
(418 687) 33 282 140
8 409 054
8 409 054
41 691 194
41 691 194
60 931 959
56 737 553
41 691 194
33 282 140
STATEMENT OF CASH FLOWS Figures in R
Equity Accumulated surplus
Total Equity and Liabilities
546 135 14 847 225 3 847 405 24 180 369
19 988 658 3 466 755 13 028 518
56 737 552
56 737 553
Figures in R Revenue Surplus on disposal of property, plant and equipment Operating expenses Operating surplus/(deficit) Investment Income - Interest
Surplus/(deficit) for the year 28
61 736 700 (54 273 305) 7 463 395 945 659
50 323 032 4 012 (51 219 369) (892 325) 473 638
8 409 054
56 595 267 (46 599 919) 6 995 348 945 659
60 827 790 (46 901 301) 13 926 488 473 638
7 941 007
14 400 126
Net cash from operating activities Cash flows from investing activities Property, plant and equipment acquired Sale of property, plant and equipment Net cash utilised in investing activities (Decrease)/Increase in cash & equivalents Cash at the beginning of the year
Total cash at the end of the year
STATEMENT OF COMPREHENSIVE INCOME
Cash flows from operating activities Cash receipts from Donors Cash paid to suppliers and employees Cash generated from operations Investment Income - Interest
EQUITY AND LIABILITIES
Liabilities Current Liabilities Employee benefit obligations Deferred Revenue Trade and other payables
33 700 827
Balance at 31 December 2016
Current Assets Cash and cash equivalents Inventories Trade and other receivables
33 700 827
Changes in equity Surplus for the year
Balance at 1 January 2015 Changes in equity Deficit for the year
STATEMENT OF FINANCIAL POSITION
(13 454 163) (527) (13 454 690)
(3 090 258) 16 701 (3 073 557)
(5 513 683) 20 398 267
11 326 569 9 071 698
14 884 584
20 398 267
Note to Cash, Deferred Income and Cash Flow: Due to fluctuations in the exchamge rate, Christel House International contributed 2017 operational funding in 2016.
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. The auditors were Henri Grove & Partners Registered Auditors, Bellville.
REVENUE Relationships between Christel House South Africa and our local and international partners remain strong. Despite continued local and global economic challenges, CHSA total revenue increased by 23% over the previous year, in large part due to an increase of 40% in local contributions.
International Funding R 32 425 535 TOTAL REVENUE
R 62 491 655
Local Contributions R 29 120 461
Audit & Risk Committee Report The Committee carried out its duties to stakeholders as required by the King Report and its own terms of reference in respect to the 2016 financial year. 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.
Chairperson - Audit & Risk Committee
Increase in SA Funding, Year-on-year:
Remuneration Committee Report
EXPENSES A strong focus on cost containment this year saw overall costs increase by only 6%. Areas reflecting above inflationary increase include transport costs and facilities maintenance.
Costs unrelated to school programmes are kept at 15% or less, per annum.
The Committee also reviewed and endorsed the company’s policy not to remunerate non-executive directors.
Operating Costs School Programme
R 46 155 980
5 277 977
2 838 385
R 54 272 342
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 2016 fiscal year. The Committee reviewed the company’s general remuneration policy and specific packages for executive and senior management, educators and support staff.
85% School Programme Costs
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 30
THE COMMUNITIES WE SERVE CHSA serves the 20 poorest townships and informal settlements in Cape Town. We transport 733 students to and from these locations, twice daily. Poverty, however, is not our greatest challenge. Physical, sexual and emotional abuse, drugs, violence and gang culture are pervasive. The lack of positive role models in our communities is a primary concern. CHSA conducts home visits, social work, family interventions and provide community outreach in all these communities. We also transport learners outside of school hours for extra-curricular activities and events. Our formula for success is to admit impoverished children in Grade R and by stressing Academic Excellence, Character & Values and Employability we produce successful, self-sufficient South African citizens, gainfully employed and giving back to their communities.
Langa 66km Bokmakierie
Pooke se Bos Settlement
Hanover Park Philippi
OTTERY Zille-Raine Settlement
Phumlani Village Settlement
Brownâ€™s Farm 70km Phola Park Settlement
McCluese Settlement Jim se Bos Settlement
Strandfontein 25 km
Mitchells Plain - 80km
Strandfontein Informal Settlements
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.
Phone: +27 21 704 9406 / 7 / 8 Email: firstname.lastname@example.org 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 NPC FNB CALL ACCOUNT 62690724573 25 06 55 FIRNZAJJ
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Christel House South Africa Annual Report 2016