board of trustees
Annual Report 2011
The Island of Bohol is not just a famous tourist destination in the Philippines. It is also the birthing home of Community Economic Ventures, Inc. (CEVI), a microfinance organization, which integrates values formation in its provision of financial and technical assistance to micro-entrepreneur, engaged in trading, manufacturing, agriculture and service-type businesses.
10 CEVI coverage areas 11 product portfolio 12 social performance 14 endorsing quotes 16 CEVI highlights 28 what our partners say about us 32 stories of change 35 audited financial statements 40 network and partners Page 2 I www.cevi.org.ph
CEVI was born in 1998. It started as a microenterprise development program to address the pressing need for livelihood among families covered by the Area Development Program of World Vision Development Foundation (WVDF). As a Christian, non-stock, non-profit, nongovernmental organization (NGO), CEVI provides a better alternative to access credit, build up capital, micro-insurance and savings, consultancy services and trainings to help transform the lives of thousand of Filipino families. Vision People Experiencing Fullness of Life.
It operates with the understanding that by equipping clients with the knowledge, and instilling to them the right values, in addition to capital, clients would be able to sustain and, eventually, grow their businesses. CEVI is a microfinance subsidiary of World Vision Development Foundation (WVDF), a part of a global network of VisionFund International (VFI) and a member of the Microfinance Council of the Philippines.
Mission As a sustainable Microfinance Institution, we follow Jesus Christ in promoting transformation in the lives of poor families and communities through the provision of appropriate microfinance services with values formation, training and consultancy.
Social Mission Serve the economically active poor by providing appropriate and quality microfinance products and services to help their business. Community Economic Ventures, Inc. (CEVI) I Page 3
Annual Report 2011
Message of the Executive Director
Message of the President Over the past 12 months, CEVI has remarkably achieved organizational effectiveness in terms of providing appropriate financial services, which go directly toward to its more than 37,000 clients in the country. With this, we truly recognize the faithfulness and blessings of God, for He is with us in every step of our way.
The year 2011 has brought us many opportunities, when it comes to strengthening our partnership with the World Vision Development Foundation (WVDF) and other networks, which provided valuable support and contributions to our organization. However, it is also a year where challenges are bigger, as we take strides to uphold capacity building of our employees and enhance our existing structure to be able to extend appropriate microfinance services to our clients and become more efficient on the way we deliver our products and services.
As a microfinance subsidiary of World Vision Development Foundation, CEVI continues to provide adequate financial support in the creation and expansion of small businesses, whilst also providing credit plus education through its Christian nurturing program that adds value to its clients and stakeholders. The relationship between CEVI and World Vision is very outstanding. They work together to deliver an effective intervention in the aspect of micro enterprise development to help improve lives and create transformation on people, community and their children. For three straight years, the CEVI has consistently achieved the highest rating in terms of integration with World Vision, which shows the deep and breadth of its partnership. The Board is happy to see more of you achieving much recognition. We are delighted to know that the CEVI is now being recognized globally through the Grameen Foundation for being the very first MFI to become PPI Certified in the entire VFI Network and the second one to get certified in Asia. May all of you in CEVI will continue to pursue excellence in our PPI integration. On behalf of the Board, I am with you in your prayers. Let us contemplate once again what the Lord has promised to us in Jeremiah 29:11, for He declares, “For I know the plans I have for you, plans to prosper you and not to harm you, plans to give you hope and a future”. To CEVI, there is always a bright future ahead of us. God Bless to all!
This year, we saw how the CEVI achieved a 10% growth in terms of Loan Portfolio and 9% increase in terms of the number of families availing of its microfinance services. The loan portfolio of CEVI has increased to over 205 Million, which benefited a total of 37, 233 families. The year has also brought opportunities to us in achieving organizational effectiveness and obtaining recognitions from the international community. At present, the CEVI is recognized globally through its implementation of the Social Performance Management including the adoption of the Progress out of Poverty Index tool, which allows the CEVI to refocus its target on the poor in designing its products and services. CEVI also undertook a Christian Witness Program, tree planting and feeding outreach in selected communities, which strengthens the quality of living of its clients and stakeholders. Indeed, we are grateful of these achievements and very excited to see the impact that we continue to make in the lives of the families and children, who are covered by our microfinance services. I would like to acknowledge the World Vision Development Foundation (WVDF) and Vision Fund International (VFI) for their contributions to the success of our organization. To all our partners and stakeholders, thank you for making the works of CEVI to remain relevant and meaningful. Without your continued support, much of what we do would simply not be possible.
ELNORA B. AVARIENTOS BOT President
Above all to our sovereign God, who is the true source of the CEVI’s accomplishments. God Bless us all!
Page 4 I www.cevi.org.ph
JONAR B. DORADO, CPA CEVI Executive Director
Community Economic Ventures, Inc. (CEVI) I Page 5
Annual Report 2011
A Letter from VisionFund President and CEO, Scott Brown This year we have seen our 5,000 staff in 38 countries help more than 650, 000 rural poor lift themselves from hardship and suffering, despite natural disasters and difficult economic environments. We are proud of our global network of MFIs (microfinance institutes) who have worked with passion and expertise and are encouraged by donors, lenders and consultants offering their generous support to our MFIs such as CEVI.
As a member of Vision Fund’s global network, CEVI has played an integral part in providing financial resources to the poor. Working in 30 branches throughout 13 provinces and cities across the Philippines, CEVI has increased its total loans by 10% from Php 187 million in 2010, to PhP 205 million in 2011, now serving over 37,000 clients. We are proud of these achievements including the steps CEVI has taken to provide transparency and advice to clients. In order to ensure it is targeting the right level of the poor, it has adopted the industry’s ‘Progress out of Poverty Index’ tool. CEVI also offers services on, loans, capital build-up fund reserves and microinsurance.
Working in partnership with World Vision, VisionFund is well on its way to impact 3.5 million children every year, by 2015. In doing so we are creating one of the world’s leading microfinance networks that leverages the development and relief work of World Vision to support those living in poverty. Our MFI staff are supported by specialists at our Operations centre who provide systems development, training and fundraising. Together we achieve repayment rates of over 97.3% on our gross portfolio of $360 million which CEVI has contributed to. We are thankful to all our global partners and supporters in helping CEVI make a difference to economically empower local people, who desire to see themselves, their families and communities flourish in sustainable environments. Sincerely,
Scott Brown President and Chief Executive VisionFund International
Page 6 I www.cevi.org.ph
Community Economic Ventures, Inc. (CEVI) I Page 7
Annual Report 2011
board of trustees Elnora Avarientos is the National Director of World Vision Development Foundation in the Philippines. She has 31 years of work experience in World Vision and once responsible for giving support and guidance to national directors and leadership teams in countries such as Cambodia, Indonesia, India, China and Papua New Guinea in enhancing their capacity to lead, manage and deliver quality ministry, through coaching and mentoring. She is also the former Director for Diversity Management at World Vision International.
Danilo Lucero, CPA
Eduardo O. Roberto Jr. is an author, entrepreneur, speaker and international award-winning seminar producer. He co-writes a weekly column, MarketingRx, for the Philippine Daily Inquirer together with his father, marketing guru, Dr. Ned Roberto. He is a co-founder and CEO of Salt & Light Ventures, Inc. a learning event organizer that have won both local and international awards for the seminars and conferences that it produced and marketed.
Elnora B. Avarientos
Mr. Eduardo C. Jimenez is presently working as Microfinance Consultant of the Bangko Sentral ng Pilipinas. Looking at policy issues affecting the practice of microfinance in the banking sector, he is also the Housing Microfinance Consultant of the Asian Development Bank. Mr. Jimenez has previously worked as consultant of United Nation (UN) and other UN attached agencies as well as with other bilateral organizations. Eduardo C. Jimenez
Florelyn Plaza Tiu is currently the Director of the Humanitarian Emergency Affairs and Executive Associate for Governance of World Vision Development Foundation (WVDF). Before taking this lead role, she was also the Frontline Sponsorship Initiatives Manager of World Vision International, wherein she was able to provide supports in enhancing the effectiveness and efficiency of field based sponsorship operations. Florelyn Plaza Tiu
Danilo Lucero is a Certified Public Accountant and a Senior Pastor of JESUS Our Hope International Assemblies Inc. (JOHIA) in Marikina City, Philippines. He is also the President of the CROSS-Country Farms and Parks, Inc., Chairperson of Saverâ€™ Club and a former Deputy Director of World Vision Development Foundation, Inc.
Eduardo O. Roberto Jr. Rommel Peter Caringal is the VisionFund International Regional Director, in Asia Pacific Region. He provides leadership in the execution of Vision Fund strategies involving 11 countries of Asia Pacific region. He has more than 15 years of extensive experience in microenterprise / microfinance sector in the areas of setting up commercial companies, organizational management, product and services development, human resource, organizational development, Management Information System (MlS), capacity building, board development, various program innovations for greater sustainability. Rommel Peter D. Caringal
Gregorio Austral is a Certified Public Accountant and a Lawyer from Tagbilaran Ciy Bohol. Currently, he serves as a college professor and a Dean of the University of Bohol College of Law. With extensive legal experience, he became instrumental in producing competent lawyers and in building strong reputation of the University.
Atty. Gregorio Austral, CPA Page 8 I www.cevi.org.ph
Community Economic Ventures, Inc. (CEVI) I Page 9
coverage areas CEVI currently operates with 30 branches across the Philippines.
product portfolio LUZON • Cavite • Roxas • Puerto Princesa • Brooke’s Point
Product Distribution %
% 6 3
• Isabel • Baybay • Hilongos • Dulag • Carmen Cebu • Barili • Moalboal • Balasan • Sara • Bais • Talibon • Trinidad • Ubay • Tubigon • Carmen Bohol • Jagna • Tagbilaran
CEVI offers four loan products, which are designed to cater the needs of the economically active poor.
CROP Loan, which targets the microentrepreneurs engaged in agriculture occupies the biggest portion of the total loan portfolio of CEVI at 52%. The YAMAN Loan, which targets the entrepreneurs engaged in trading and commerce is second in rank at 36%. The ASENSO Loan, which is intended for the small and medium scale entrepreneurs is third in rank at 11%, while the BABE Loan, which is offered in Bais, Estancia and Sara Iloilo and is intended only for micro-entrepreneurs engaged in hog raising business is only 1% of the total loan portfolio of CEVI.
Portfolio Distribution %
MINDANAO • Trento • Nabunturan • Butuan • Davao • Zamboanga • Isulan • Surallah • General Santos • Tandag
Page 10 I www.cevi.org.ph
Annual Report 2011
As a member of the Vision Fund’s global Network, the CEVI continues to provide financial resources to the poor all through out the country. CEVI’s Loan Portfolio was seen highest in Mindanao and Visayas Regions at 47% and 37%, respectively. Luzon Region has occupied only 16% of the total Loan Portfolio of CEVI.
Community Economic Ventures, Inc. (CEVI) I Page 11
Annual Report 2011
social performance Children Impacted 108,000 Women Outreached 89% Job Created and Sustained 54,478 On Poverty Outreach
Still on average below the national poverty line, clients that are engaged in Production business have the highest concentration of poor clients with 43%, Commerce or Trading with 39%, Service type of Business with 37%, while only 32% in Agriculture sector.
Comparison of the Philippines’ Poverty Incidence with the CEVI Poverty Outreach On Poverty Level of New Client Beside is the overall poverty level of the 14,155 new clients of CEVI for the fiscal year of 2011. Starting from the first column, 37% represents the poverty rate below the national poverty line, 21% is below $1.25/ day, 55% is below $2.50/day while the 16% is the USAID “Extreme” Poverty Line.
Page 12 I www.cevi.org.ph
Poverty distribution by Sector
Comparing the Philippines’ Poverty incidence with the CEVI poverty outreach for the last 4 quarters, it shows that the CEVI were able to reach more than the poverty incidence of the country.
Community Economic Ventures, Inc. (CEVI) I Page 13
i h t in s r a e y n e v e s y m t I could really say tha d n a s e c n ie r e p x e l u f g in n a e m f o l l u f is n io t a iz n a org in e c n a id u g d e d e e n I n e h w e r e h t s a w I V E memoIriecousld. reaC is full of meaningful ion zat ani org s thi in rs yea en sev my t tha say lly I needed guidance in my work and en wh re the s wa . ries mo me and s nce my wexpIorerieamk thaankfndul for all the opportunities that the organization has givsen methforatthetpashet it n u t r seiethey will provide you o au p bec p w gro o to e ties h uni t ort opp l ny l ma e a hav l r wil o ly. I ayeawitmrs.h chatIhllennanginkg ftasyouuklwhfere you can apply your skills and experiencesymoeare reffsect. iveI I V E C n t s a p e h t r o f e m n e iv g s a h n organIizamareatiolly proud that I am part of this great organization. ow because they wil r g o t s ie it n u t r o p p o y n a you will have m y l p p a n a c u o y e r e h w k s a t g in g n le l a h c h it w u o y provide . y l e iv t c e f f e e r o m s e your skills and experienc Annual Report 2011
endorsing quotes many ups and downs along its
here were The journey of CEVI was never perfect. T ted a strong resilience and pite those difficult moments, CEVI demonstra way. But des remained sustainable as an organization.
yees, outreach and portfolio in its plo em of s term in wth gro l ena nom phe a d nce CEVI experie are stories of hard work, s ent em iev ach se the ind beh ut B s. ion rat ope more than 10 years of CEVI employees. commitments, dedicated service and prayer of the zation so that it would ani org le nab tai sus a e om bec to ue tin con l wil I wish that the CEVI re families. continue to help in building and sustaining mo
Page 14 I www.cevi.org.ph
Marilou M. de la Paz OIC-Finance Manager
Joel C. Gatus
Network and Server Adminis
Community Economic Ventures, Inc. (CEVI) I Page 15
Annual Report 2011
INSTITUTION AND INDUSTRY BUILDING
VALUES AND INTEGRATION CEVI has continued to implement its program, which promote Christian values and full integration with World Vision Development Foundation. • Achieved a high Integration rating from the World Vision Development Foundation • Completion of the Christian Witness Initiative Project and pilot testing of an Islamic Compliant Product. • Conducted a Joint Retreat with the Board of Trustees and Management of World Vision Development Foundation (WVDF). • Generated a devotional and prayer guide for CEVI, which are used for the spiritual nurturing of the CEVI clients and employees. • Conceptualized a social protection product that will increase the number of the ADPs covered by the CEVI Microfinance Program. • Invited the Filipino Pride advocates Dale Dennis David and Ma. Julie Tanada to speak about the value and significance of national pride and love of country to the CEVI Management and Staff during the CEVI Strategic Realignment Workshop in Tagbilaran City, Bohol last March 28, 2011.
IMPACT AND INCLUSIVENESS CEVI continues to provide communities and families with an appropriate loan product design and delivery. • Institutionalized the client protection program in its operations by means of establishing an Integrity and Protection hotline to seek feedback from clients to ensure that they are given with a fair and respectful treatment. • Adopted the use of Progress Out of Poverty Index tool in client selection and provided credit, capital build-up and micro-insurance services to the poor especially in the ADP covered communities. • Provided social protection to more than 37,000 families through its micro-insurance program. Page 16 I www.cevi.org.ph
CEVI continues to enhance its capacity to serve its clients and contribute to the development of the microfinance industry.
SUSTAINABILITY AND SYSTEM CEVI continues to strengthen its systems and processes to achieve organizational effectiveness and sustainability. • CEVI operates with 30 branches in 13 provinces and cities across the Philippines. • Increased Total Assets by 19% from Php 252.8 Million in 2010 to PhP 301.7 Million in 2011. • Increased Total Number of Borrowers by 9 % from 34,097 to 37,233. • Achieved unqualified opinion and acceptable rating from its latest external and internal audits, which shows strong internal control and policy compliance
• Gold Award Certification from CGAP for Social Performance Reporting since 2010. • Maintained a Green rating in its operations based on the global standards of Vision Fund International. • Achieved a satisfactory rating based on the PESO standards for microfinance. • Became the first MFI in the VFI network and second in Asia to receive a PPI certification from Grameen Foundation for its excellent poverty measurement. • Served as a Board of the MCPI, and actively participated in all the conferences and meetings facilitated by its network.
ORGANIZATIONAL GOVERNANCE AND STAFF WELL BEING CEVI ensures that its employees are equipped and well cared for. • Provided and improved medical and insurance premium coverage to all its employees. • Implemented a Leadership and Managerial Strengthening Program, which increase the capacity of its Management staff. • Improved staff competency and knowledge about microfinance by participating to the 2011 COO training, Regional Audit Conference and Finance Exposure in Bangkok, Thailand. • Enhanced the Leadership and Governance of the Board by conducting a client visit during Board Retreat.
NETWORK AND RESOURCES CEVI has continued to generate resources, and at the same time consistently contributed and benefited from initiatives and programs of the MFI network • Maintained a strong partnership with the Microfinance Council of the Philippines (MCPI), PlaNet Finance, BPI Globe, People’s Credit and Finance Corporation, KIVA, LBP, PLANIS, VisionFund International, World Vision Development Foundation, World Vision ADP partners and the support offices of World Vision Canada, Germany, Hongkong and Singapore. • Conducted an orientation about the CEVI and the use of Progress Out of Poverty Index tool to VFI representative. • Participated and presented a paper about Social Performance Management during the WV Asia Pacific Policy and Programme Conference in Bangkok, Thailand. • Presented a paper to the volunteers of Bankers with Vision in Singapore, who provided strong technical support to VisionFund International and its affiliated MFIs. • Availed of the consultancy assistance from Oliver Wyman to review the CEVI organizational strategy and develop a strategy template for VisionFund International. • Availed of the opportunities to enhance Micro-Agri product and institutionalize Social Performance with the assistance from PlaNet Finance.
Community Economic Ventures, Inc. (CEVI) I Page 17
Annual Report 2011
Coaching for Performance
CEVI and WVDF Hold A Joint Retreat Only on a rare occasion, that the Board of Trustees (BOT) and the Senior Management Team of the World Vision Development Foundation (WVDF) and Community Economic Ventures Inc. (CEVI) will have an opportunity to meet together.
their courtesy call at the Alcantara Town Hall. After the dialogue, the Board of Trustees and Management of WVDF and CEVI made their way to the WVDF ADP office. They also visited a small community and have the chance to speak with the CEVI borrowers.
Finally, on July 14-16, 2011, CEVI and WVDF held a joint retreat for its Board and Senior Management Team in Moalboal Cebu, Philippines.
There were many interesting opportunities happened during the retreat. The Board and Senior Management of WVDF and CEVI were able to reflect on the current performance of each organization and at the same time, they were able to share some strategies to foster a stronger integration and partnership.
The entire team was able to tour to Alcantara, Cebu and was able to connect with the local officials during
CEVI Management and Supervisors during Coaching for Performance workshop.
The Community Economic Ventures Inc. (CEVI) conducted a Coaching for Performance Workshop for its selected supervisors and managers last March 2829, 2011 in Tagbilaran City Bohol.
According to Ms. Alvarez, constant coaching by a supervisor would help increase the performance level of the employees and would help them achieve their full potential.
The Director of People and Culture of World Vision Development Foundation (WVDF), Ms. Joy Alvarez was the resource speaker of the workshop.
The workshop was part of the staff development program of CEVI in order to equip and help its supervisors and managers to administer their critical role in the organization.
The Coaching for Performance is comprised with a series of presentation about the Benefits of an Integrated HR System, Core Capabilities Framework and Coaching for Performance System, Leadership Paradigm and New Practices, and Establishing Performance Agreements.
Page 18 I www.cevi.org.ph
The workshop also provided a wide array of opportunities to the CEVI employees in understanding their leadership strengths, areas for further development and the different types of people they will need to lead in the future.
Board of Trustees and Management of WVDF and CEVI during the Joint Annual Retreat in Moalboal, Cebu.
Community Economic Ventures, Inc. (CEVI) I Page 19
Annual Report 2011
CEVI Team Building Activity This year, the employees of Community Economic Ventures, Inc. (CEVI) based at the CEVI Headquarters held its team building activity at the White Beach Resort in Panglao Island, Bohol. CEVI Operations Manager, Edwin Crescencio and Transformation Program Coordinator, Joy May Undag together with the CEVI Senior Management team spearheaded the activity last June10, 2011. The team building was comprised of tough group challenges, wherein each member of the group has the chance to become closer to one another and become more comfortable to work with the other members of the group while performing various tasks. The team building was also part of the staff-
development program of CEVI in building confidence and trust. It was also held to build capability, relationship and cooperation of its employees. By teaching the employees with the values of teamwork, commitments and hard work, CEVI employees would contribute to a great degree in the attainment of the CEVI’s goals and objectives. The group has also reflected the Words of God from 1 Corinthians 12:12 “Just as a body, though one, has many parts, but all its many parts form one body, so it is with Christ.” CEVI employees were reminded that every part of the body is unique, necessary, has an important role, takes responsibility, and must continuously engage.
The Community Economic Ventures Inc. (CEVI) in partnership with the Local Government Unit (LGU) of Baclayon Bohol, and the CEVI Credit Cooperative has conducted a tree planting drive in Brgy. Tanday Baclayon Bohol, Philippines last September 2, 2010.
CEVI staffer, Hermilyn Mijares shared her experience during the tree planting activity in Tanday, Baclayon, Bohol.
The planting trip was a big challenge for us given that we had feared a low volunteer turnout due to the limited time of preparations that we had for the activity. However, we were pleasantly grateful to the support of the LGU Officials and surprised to see over 70 volunteers on the jeep, ready for a beautiful day of planting. From Tagbilaran City, we arrived at 8:00 in the morning in Baclayon Bohol and were able to connect with the local officials. It took us only one hour to get to and meet the Municipal Agriculturist, Ms. Rhea Mendoza. We also had a great time to listen to the orientation from the Agriculture Office before we finally started our activity.
After the orientation, we made our way to the planting site. We planted a total of 200 Mahogany seedlings in a wide terrain of Tanday Bohol with the assistance of the Sangguniang Kabataan and Brgy. Officials. Everybody has enjoyed the activity and hopeful that every single tree that we planted would contribute to clean water and healthy ecology of the community.
CEVI staff during the Team Building activity. Page 20 I www.cevi.org.ph
CEVI Turns Green: Tree Planting Drive Community Economic Ventures, Inc. (CEVI) I Page 21
Annual Report 2011
CEVI Receives Progress-Out of Poverty Index (PPI) Certification
“Every man shall give as he is able, according to the blessing of the LORD your God which He has given you”. -Deuteronomy 16:17 There were only four days left before Christmas, when the Community Economic Ventures Inc. (CEVI) has brought glad tidings to the children of Purok 8, Poblacion, Panglao Bohol, Philippines. A Feeding Activity was conducted on December 21, 2010 at where the all-time famous fried chicken and spaghetti were fed to some sixty kids and Christmas gifts were also distributed. The CEVI Staff and the volunteers from Tagbilaran Christian Alliance Church entertained the children. There was a fun game and singing, which the children have gladly enjoyed. There was also a sharing of story about the birth
PPI Certificate of Completion
Last November 2010, the Grameen Foundation has conducted a review on the CEVI’s process of using the Progress-Out of Poverty Index (PPI) in targeting its intended clientele.
The results of the evaluation revealed that the process used for PPI data collection at CEVI is sound and should produce accurate results for analysis and dissemination to stakeholders.
According to the Grameen Foundation, the review has covered an intent, data collection, training, processing and reporting. It was also based on the PPI Certification Standards, which were developed with input from a variety of stakeholders, from MFIs to investors, across the microfinance field that represent the minimum quality standards a PPI user should have in place to collect and report poverty level information accurately in a transparent manner.
Grameen Foundation has certified the CEVI with a Basic and Advanced level of certification last March 31, 2011.
Page 22 I www.cevi.org.ph
of Jesus Christ, which was narrated by a CEVI employee. Mr. Jonar B. Dorado, Executive Director of CEVI, together with the members of the CEVI Senior Management Team headed the feeding program. The CEVI’s team-up with the Tagbilaran Christian Alliance Church (TCAC) in arranging a feeding activity for the children has concluded successfully. The CEVI Senior Management Team also gratefully acknowledged all the volunteers for sharing their time and talents in making the event possible.
CEVI staff held a Christmas feeding activity with the children in Panglao, Bohol.
The steps that the CEVI has undertaken in adopting the PPI tool help the organization to target on the poor in designing its product and services. CEVI is the first MFI within the VFI network and second in Asia to receive a Basic and Advance PPI Certification from the Grameen Foundation. Community Economic Ventures, Inc. (CEVI) I Page 23
Annual Report 2011
MFI Senior Operations staff during VFI COO meeting.
Chief Operations Officer Meeting The recently concluded VisionFund Chief Operations Officer (COO) Meeting has brought together stakeholders from various microfinance organization of VFI to discuss about the issues that are recently confronting the microfinance industry. The meeting was held in Bangkok, Thailand and participated by more than 20 Senior Operations staff of VFI held last June 13-17, 2011. The meeting comprised with a series of presentation about Deliquency Management, People Management, Page 24 I www.cevi.org.ph
Integration Management and Fraud Management in the microfinance organization.
Delegates during the World Vision and VisionFund Training of Trainers in Thailand.
CEVI participates in the VisionFund Orientation Training of Trainers in Thailand
There was also a sharing of best practices of the MFI regarding the strategies they used in managing their operations.
The City of Bangkok in Thailand becomes the meeting place of the VisionFund Orientation Training of Trainers last March 7-9, 2011 at where the MFI from VisionFund including the CEVI of the Philippines obtain an understanding of the VisionFund International as a Christian organization.
CEVI Operations Manager, Mr. Edwin Crescencio; Assistant Operations Manager, Glenn Anciano; And Recruitment Specialist, Yandy Grace Timogtimog have attended this 5-day COO meeting and were able to share the works of CEVI and its best practices
The CEVIâ€™s delegation has learned through the modules being introduced during the training, the VisionFund (VFI) and World Visionâ€™s (WV) faithbased approach to development. What does it mean by having an appropriate Christian Witness. What
Christian witness is not, including our rejection of proselytism and discrimination. And what should be our relationship with the staff, churches, and people of other faiths. Mr. Edwin Crescencio, CEVI Operations Manager and Ms. Madeline Guibao Sinfuego, Human Resource Manager attended this three-day orientation training and aimed to implement the alignment of VisionFund International (VFI) Christian identity and approach to all CEVI staff.
Community Economic Ventures, Inc. (CEVI) I Page 25
VisionFund Staffer Reflects on CEVI and the Microfinance Community Bank Model Brad Stave, the manager of marketing at VisionFund International, the microfinance subsidiary of World Vision, spent a remarkable week in November 2010 with his colleagues at the World Vision and VisionFund affiliated microfinance institution (MFI), Community Economic Ventures, Inc (CEVI), in the Philippines. The delegation from VisionFund was able to tour CEVI’s headquarters, while connecting with senior leadership and management. After dialoguing on the current state of microfinance at CEVI, the group traveled to witness microfinance operations via the branch office in Cebu. The group was able to connect with the branch office management, visit with loan officers, witness the transforming power of small loans administered through the World Vision Micro partnership, and participate in a cluster group meeting.
Annual Report 2011
CEVI is making a tremendous difference in the lives of thousands of entrepreneurs across the Philippines; it really is an exceptional MFI. The cluster group of borrowers would meet on a weekly basis during a formal time that includes bible study, prayer, financial instruction, and a time to get current and pay back their weekly loan installment. At most MFIs, cluster groups, or “community banks,” include 20-30 members who cross guarantee each other’s loans. This is done because members don’t have existing capital or collateral to guarantee outstanding loans. Brad explains, “It’s a brilliant system. Consumer banking in the industrialized world is made possible through attaching either collateral or a credit score to an individual. However, the majority of the world’s population does not have either adequate collateral or a credit rating to secure a loan.” Towards the end of the meeting, a young lady, stood up and introduced herself to the group. She was known throughout her community as an upstanding woman, who had a strong work ethic and the tenacity to succeed. To increase profits of her family’s
Page 26 I www.cevi.org.ph
fishing business she was requesting to be added to the cluster group, and receive a loan from CEVI. Half way through the young woman’s appeal, a micro borrower in the audience spoke up and declared, “I will cosign for her!” This led to an avalanche of group endorsement, and the woman was invited to join the small circle of micro entrepreneurs and secure a loan through CEVI.
Brad reflected, “Now that this young woman has been accepted into this cluster group, and will soon receive a small loan from CEVI, it will only be a matter of time before she can expand her family’s fishing business and provide a better future for herself and her family. Through fostering the development of small businesses, families are now able to buy enough food, further their educational aspirations, and access healthcare services that allow them to thrive. CEVI is making a tremendous difference in the lives of thousands of entrepreneurs across the Philippines; it really is an exceptional MFI.”
Community Economic Ventures, Inc. (CEVI) I Page 27
Annual Report 2011
what our partners say about us
Community Economic Ventures, Inc. (CEVI) strives to live its mission of promoting transformation in the lives of the less fortunate. Its endeavours are geared towards giving the best service and appropriate products to its clients. The uptake and integration of social performance management in its day-to-day operations demonstrates the organization’s earnest desire to fulfill the task it has set out to do. CEVI gives utmost importance to protecting the people it has embraced. MCPI supports CEVI in its efforts for the good of its clients and the communities it serves.
Juliet Ampong Quijada
BCCAP - Program Team Leader
The Micro Insurance department of Mercantile was established as part of the company’s corporate social responsibility in contributing for alleviating poverty. It was in 2005 when our valuable partnership with CEVI started. Throughout the years, this partnership has evolved into a pinnacle level of relationship, understanding, and cooperation. Working together everyday towards our goal in promoting transformation in the lives of poor families and communities.
MCPI – Executive Director
Kiva chose CEVI because of a broad range of effective loan, credit, insurance, and savings products offered. These financial products are well tailored to the economically active poor, and help them to grow small income-generating businesses. Kiva wants to reward CEVI’s product offerings because they increase the likelihood that CEVI will reach entrepreneurial poor people.
Michael Looft Kiva - Regional Director, Europe & Asia
Page 28 I www.cevi.org.ph
The Bohol Concerned Citizens Action for Progress (BCCAP) rejoices to all the accomplishments that the CEVI has achieved this year. We are always with you in your undertakings in helping the people to experience fullness of life through your provision of appropriate microfinance services to the economically active poor. We commend your transparency in your Operations and for being an excellent partner to us. May you continue to become a channel of transformation and blessing to a number of families that you have served.
Our highest level of commendation and appreciation to the officers and staff of CEVI. Best regards to everyone and God bless. JOSE MARIA J. DADIVAS
Manager, Micro Insurance Department
Community Economic Ventures, Inc. (CEVI) I Page 29
d n a rn a le to y it n u rt o p p o n a ad h I , I V E C in g in rk o w e Whil endorsing quotes s. g in th t a re g y n a m ce n e ri e p x e ny and provided ncel ma erie exp and rn lea to ty uni fe ort li opp an e a hav n I , io VI ss CE While working in me to advance my profe provided me with many heVIlpheledped me to advance my professional life and in ngs. CE t CEgreV n at thiI e d fi n co re , o VI m CE n e I m rk. wo co my e g b min to in perafor d encile ls n andmconyfidsk lls ness hmyaski har to ties uni ss e opport rn to s me opeveporyortneuntreitatsieone another as a family member. It is a great organization that doingvalmuesy peowpleork. . ue to grow and provide manifold tin con l wil VI CE the t tha e hop I , a ure fut is t In the I . y il m fa its a of t s par a k too r o e wh ilyanoth ryofam toaeve e s but n ts itsveemryplooyee e to all tr onlyI e n gs not blessinE e , V In C program. nce ina rof mic . le p eo p s e lu a v t a th n o ti isa great organ Yandy Grace M. Timogtimog Recruitment Specialist w ro g to e u n ti n co l il w I V E C e th t a th e p o h I , In the future Annual Report 2011
The Peopleâ€™s Credit and Finance Corporation (PCFC) takes great pride to have forged a microfinance business partnership with the Community Economic Ventures, Inc. (CEVI). We share a common aspiration in harnessing the full potential of the microentrepreneur sector by providing greater socioeconomic opportunities through microfinance. May your successes inspire and strengthen the resolve of all players in the microfinance industry to rededicate their efforts towards building a better and brighter nation.
Edgar V. Generoso
PCFC - President and CEO
BPI Globe would like to thank and salute Community Economic Ventures, Inc. (CEVI) for its commitment in providing microfinance loans to the unserved and marginalized sectors in the province of Bohol. Through the years, CEVI has proven that it is one of the most successful MFIs in the Visayas, expanding its outreach through innovative products and services. We are confident that CEVI will be able to maintain the trust and confidence of its members as it continues to empower them by improving their economic conditions. CEVI is our valued partner and we affirm our full support as it endeavors to ensure financial stability and uplift the lives of its beloved member and the community.
Page 30 I www.cevi.org.ph
Jose Raul E. Jereza
BPI Globe - Vice President
Community Economic Ventures, Inc. (CEVI) I Page 31
Annual Report 2011
stories of change A Fish of Opportunity Selling fish really is not an easy job, says Susan Oribiana 39 years old, married woman from Barangay Barong-Barong, Sitio Tagusao, Brooke’s Point, Palawan. She is married to Marcelo Javier and they were blessed with two children, Arlyne Jane 15, years old and Stephanie, 14 years old, who are currently in third year and second year in high school, respectively. Both of her children make consistently honors in their school, which makes her so proud as a mother.
A Farmer’s Journey
She started her fishing business in 1990. She used to sell her fish on foot during the time that she was just starting her business. But now, she already owns three motorcycles, which she uses in selling her fish.
Iluminda Porazo is a 64 year-old entrepreneur from Brooke’s Point, Palawan. She is married to Antonio and is blessed with three children, Hazel, Lemuel, and Jocelyn. The couple has also adopted a child, Jesabel, whom they considered as their fourth child.
Susan’s suppliers are the fishermen in their village. During normal days, Susan buys 5-10 buckets of fish from the fishermen, which will cost her around 1,700 Php per bucket. Each bucket weighs 25 kilograms, which she said would allow her to earn an income of 3,400 Php. Aside from selling fresh fish, she also sells dried fish in her community. She sold the dried fish for 200 Php per kilo, however if her customers will buy in great volume, she provides discount and sold her dried fish for only 180 Php per kilo.
Susan is highly skilled and very cautious when it comes to producing a dried fish in their village. According to her, the period of fish drying under the heat of the sun should be done for four hours only; otherwise it will become a salted fish, which is only sold for 100 Php per gallon. Susan shared to CEVI that dried fish business is not easy especially during rainy season because during this period there is always rain and the surrounding is wet. So, while facing this problem, her advise to her fellow dried fish vendor is to just sell fresh fish in the market or to the nearby villages. Susan also observed that during summer vacation, there are also fewer Page 32 I www.cevi.org.ph
people, who will buy a dried fish. And in order to remain stable in the market, dried fish vendor should figure out when is the best time to produce and not to produce dried fish. Susan is happy that she was helped by Community Economic Ventures, Inc. to have enough capital to grow her small business. Every time she takes a loan from CEVI, she makes necessary improvements in her business. Today, Susan is on her 8th cycle in CEVI with a loan of 25,000 Php. The income that she was able to generate from her business was used in buying appliances for the family, and construction of their new house. In the future, she also dreams that her children would be able to finish their studies and become a teacher and businessman someday.
In 1995, Iluminda started her multiple businesses. She started rice farming, retail and fishing business. When she became a member of Community Economic Ventures Inc. (CEVI) she was not only able to buy more merchandise for her retail store and improve her rice farming business, but she was also able to start growing pigs, which give her additional source of income. Currently, Iluminda is in her 12th cycle in CEVI and has a loan of 25,000 Php. Iluminda gets 60 sacks of rice from her rice farm every harvest period. Half of the harvest is sold to the market for 700 Php per sack while the other half goes towards the family consumption. She also enjoys maintaining her small pig farm, wherein she has two sows and 1 boar. In every 3 months, her sow will produce a minimum of 7 offsprings and she sold this offspring for 2,000 Php each. Iluminda’s husband and children are very supportive to her when it comes to managing the family’s business. Her husband helps her take care of the rice and pig farm while her children help her in tending the retail store and fishing business. Every
member of her family works together and has made the work becomes easy to manage. Iluminda has seven workers; five of them work in her fishing business while the other two work in her rice farm. She is very grateful that somehow she is able to provide employment in her local community. Like other businessmen, Iluminda also experienced ups and downs in her business. She always worries every time a typhoon will visit to their village because she knows that it will damage her rice crop and make her fishing business operations to be paralyzed. To date, Iluminda is grateful because she was helped by the Community Economic Ventures, Inc. (CEVI) in purchasing a hand tractor, motorcycle and rice thresher for her farm. Through her loan in CEVI, she was also able to buy engine for her fishing boat and improve more her retail store.
Community Economic Ventures, Inc. (CEVI) I Page 33
Annual Report 2011
A Different Perspective Cecilia Aranzado is a simple woman by nature. She finished a degree in Bachelor of Science in Accountancy but did not pursue the corporate life because she wanted to start a business, manage her own time and at the same time become closer to her family most of the time. Cecilia is a resident of Sto. Niño, South Cotabato, Philippines. She is 54 years old and married to Arnel Aranzado. They have 2 children namely Arcie and Arcieli. Arcie, the oldest, finished a degree in Bachelor of Science in Marine Transportation, which Cecilia claims would not be possible without her loan from CEVI. Her youngest child Arcie is still in first year high school and hopes to take up Commerce course in college. When Cecilia graduated from college, she got a call from her town’s Municipal Office, which offers to her a position as an Accountant. She accepted the position but did not stay long. Cecilia met her husband Arnel and decided to settle down. Arnel urged Cecilia to quit her job and start a business. It did not take long for Cecilia to decide since she also wanted to start a family. In 1996, Cecilia ventured into a General Merchandise and Dry Goods business. She started a small store and rented a stall at the market, where she could sell home and kitchen supplies. Because Cecilia is a graduate of Accountancy, she knows how to manage her finances and business expenses. Cecilia also trained herself to become a people person so that she would be able to handle her customers well. When Cecilia’s business has started to flourish, she also started to rent a bigger space in the market. Cecilia expanded the variety of merchandise that she sells. She includes kitchenwares, bed sheets, stoves, and souvenir shirts. To support the growth of her business, Cecilia also availed of the microfinance services of CEVI. According to Cecilia, she had to strategize on how to maintain her business and sustain her son’s education and save up for college.
Page 34 I www.cevi.org.ph
Cecilia gave up her membership with the other financing organizations. She said that joining a lot of financing organizations would be a big problem in the future. Cecilia retained her membership in CEVI and enjoyed the company of other entrepreneurs who are also members of the CEVI cluster association. In the cluster association, Cecilia had an opportunity to gain knowledge about business and reflect the Words of God during Biblical reflections. Cecilia’s cluster association was not free of challenges. It came to a point that there were no members left other than her and one other member. In spite of this, Cecilia stayed in the CEVI program and helped recovered their cluster. Cecilia already took 10 loans from CEVI in the past. Then she applied for an ASENSO loan because she needed a bigger capital for her business. Later on, Cecilia opened a branch in Agusan Del Sur and hired her brother-in-law to run the business for her since it is quite far from their home. To date, Cecilia owns and manages 3 stores at her town’s market. She has 4 regular employees and 2 extra staff that she hires during peak season. Cecilia also allows her employees to have a sideline and earn an extra income. She said it would be a big help to them to support their own families. Aside from managing a store, Cecilia and her husband also manage a farm. They grow rice crops and raise livestock. In Cecilia’s words, “Through CEVI, I learned to manage my business well and to save daily. I also learned how to share the Gospel of God. Without CEVI, I would not be able to earn 10,000 Php a day, expand my business and sustain my children’s education.”
audited financial statements Report of Independent Auditors We have audited the accompanying financial statements of Community Economic Ventures, Inc. (a nonstock, nonprofit organization), which comprise the statements of assets, liabilities and fund balance as at September 30, 2011 and 2010, and the statements of income and expenses, statements of changes in fund balance and statements of cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting Standards for Small and Medium-sized Entities (PFRS for SMEs), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion ln our opinion, the financial statements present fairly, in all material respects, the financial position of Community Economic Ventures, Inc. as at September 30,2011 and 2010, and its financial performance and its cash flows for the years then ended in accordance with PFRS for SMEs. Other Matter The Bureau of Internal Revenue (BIR) issued on November 25,2010 Revenue Regulations (RR) 15-2010 requiring companies to provide in the notes to financial statements information on taxes, duties and license fees paid or accrued during the taxable year. However, the Organization opted to present such information in a separate schedule to be attached to the financial statements for filing with the BlR. The supplementary information is not a required part of the basic financial statements under PFRS for SMEs and not a required disclosure by Securities and Exchange Commission. Our opinion on the basic financial statements is not affected by presenting such supplementary information in a separate schedule. MANABAT SANAGUSTIN & CO., CPAs VIRGILIO L. MANGUILIMOTAN Partner CPA License No. 0035026 SEC Accreditation No. 0047-AR-2 Issued March 26, 2009; Valid until March 25, 2012 Tax Identification No. 112-071-561 BIR Accreditation No. 08-001987-11-2010 Issued June 30, 2010; Valid until June 29, 2013 PTR No. 3174017MA Issued January 2, 2012 at Makati City January 6, 2012 Makati City, Metro Manila
Community Economic Ventures, Inc. (CEVI) I Page 35
Annual Report 2011
Page 36 I www.cevi.org.ph
Community Economic Ventures, Inc. (CEVI) I Page 37
Annual Report 2011
Page 38 I www.cevi.org.ph
Community Economic Ventures, Inc. (CEVI) I Page 39
Community Economic Ventures, Inc. (CEVI) Sarabia-Co-Torralba Building 2, Espuelas Street, Tagbilaran City, 6300, Philippines Telephone: (038) 412-2356 I 501-0170 I235-5463 Fax: (038) 412-2356 http://www.cevi.org.ph Annual Report 2011
To God be the glory.
Network and Partners World Vision Development Foundation World Vision ADP Partners VisionFund International Microfinance Council of the Philippines Peoples Credit and Finance Corporation The Mercantile Insurance Co., Inc. Grameen Foundation Media, Inc. BPI Globe PLANIS Kiva