World Education Australia building skills, changing lives
Annual Report 2014
About Us We believe no one deserves a life of poverty. Our Vision
Our Accreditation
Our Mission
The objective of Australian Aid is to assist developing countries to reduce poverty and achieve sustainable development. World Education Australia has full accreditation from Australian Aid.
A world without poverty where people have access to resources and opportunities to improve their own lives.
Through responsible microfinance and skills development, we enable people living in poverty to grow their incomes and change their lives sustainably.
Microfinance
The provision of financial services to the poor. Microfinance services are not just loans (microcredit) but include savings, micro insurance, and money transfer products. The desire and capacity to save represent a critical step towards economic self-sufficiency.
Skills Development
Literacy and numeracy are essential if people are to extend their natural capability. Those who want to run any type of enterprise also need basic financial literacy, to understand book keeping, budgeting, borrowing, and savings options. Livelihood skills are the vocational and technical know-how that enhance a person’s productivity.
We are a member of the Australian Council for International Development (ACFID), the peak body for organisations involved in overseas aid, and are committed to upholding its Code of Conduct. We ensure our financial reporting complies with the standards set out by the Code. The Australian Charities and Not-for-profits Commission (ACNC) is the regulator for the sector. We are registered with ACNC and comply with all requirements. Because World Education Australia remits funds overseas, it is required to meet the reporting and compliance requirements of the Anti-Money Laundering/Counter Terrorism Funding Act 2006. To do this, we report regularly to AUSTRAC, the Commonwealth Agency responsible for administration of the Act.
Contents Letter from Chair and CEO ..................................... 3 Where We Work & Key Activities ........................... 4 Our Partners .......................................................... 5 Update on Good Return ......................................... 6 Skills Development ................................................ 7 Responsible & Inclusive Microfinance ................... 9 Trek to End Poverty 2014 ....................................... 10 CAFE Initiative ....................................................... 11
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Vanmai SCU Update .............................................. 11 Field Support Officer Program .............................. 12 ConnectEd Update ................................................ 13 Environmental Impact .......................................... 14 Board of Directors ................................................. 15 Governance ........................................................... 17 Concise Financial Report ...................................... 18 Supporters, Management, & Staff ......................... 22
Letter from Chair and CEO By any standards, 2014 has been a remarkable year for World Education Australia (WEAL) and our flagship microfinance program Good Return. We have worked on many fronts as we pursue our vision of a world without poverty, and are pleased to highlight here some of our successes.
Responsible microfinance As microfinance becomes a global industry, there is more need than ever for lenders to deal fairly and responsibly with their disadvantaged clients. WEAL has positioned itself at the leading edge of this initiative. Our specialists coach microfinance institution (MFI) partners’ senior management on building their social performance agenda, and on best practice in areas like client protection and poverty tracking. We believe these measures are essential if microfinance is to become a respected and effective tool in helping people escape poverty.
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Hand in hand with responsible lending is responsible borrowing. If people are to use micro-debt prudently, they must understand the basics of interest rates, budgeting, and money management. Good Return partners with MFIs across the Asia Pacific to deliver financial capability and livelihood skills training. Last year 6,500 people benefited from these programs, strengthening their capacity to earn a living and build a path out of poverty for themselves and their families. Improved services and more training options for their clients is now a priority for leading MFIs around the world. WEAL is proud of our leadership role in extending this initiative across the Asia Pacific region. An important part of this is developing use of the Progress out of Poverty Index, an objective measure of the extent of hardship among the poor, enabling us to better track the impact of our work.
Working in Laos While Good Return is our public face with the Australian public, WEAL continues to participate in additional regional programs. WEAL was chosen by the Department of Foreign Affairs & Trade (DFAT) to manage a sub-component of the Laos-Australia Rural Livelihoods Project. As part of this major effort to enhance economic security for the rural poor, WEAL will work with 1,000 vulnerable families in rural Salavan province over the next two years. Projects such as this enable us to share our insights and experiences across countries and partners.
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Thanks to the team Our strong year-end financial position is most comforting. Its purpose is to assure the sustainability of our mission, and continue to give those in need access to the resources and opportunities by which they can improve their lives. WEAL is fortunate in being able to access the skills and enthusiasm of our staff, volunteers, directors, and supporters. To all of you, we offer thanks. 3
Neild McIntosh, Chair
Guy Winship, CEO
1. A training participant with drawings of her savings goals, Cambodia 2. Counting repayments at a centre meeting, Fiji 3. Financial booklets, which form the backbone of our Financial Education Program in the Pacific 3
Where We Work China
Nepal
Laos Bangladesh Vietnam Sri Lanka
Philippines
Cambodia
Papua New Guinea Indonesia East Timor Solomon Islands
Fiji
Tonga Australia
Current Programs Past Programs
Australia
Cambodia
Fiji
Indonesia
Good Return
Skills for Life
Sustainable Livelihoods
Laos
Nepal
Philippines
Tonga
PROGRAMS
Sustainable Energy ConnectEd
Microfinance Capacity Building
KEY ACTIVITIES Financial literacy
Training team capacity building
Microfinance
Renewable energy technologies
Social performance management
Small business management
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Sustainable agriculture
Youth employment building
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Our Partners Microfinance Partners World Education Australia and Good Return partner with microfinance institutions (MFIs) in the Asia Pacific to invest funds raised in Australia directly to helping the poor in our region. We conduct a thorough selection and due diligence process for all partners. We assess their financial and social performance, to confirm their viability and that they share our vision of helping the poor – sustainably.
CUKK, West Kalimantan, Indonesia We began our relationship with Credit Union Keling Kumang (CUKK) in 2012. Keling Kumang refers to a local folk story about a “strong husband and strong wife” who work together to build their community. From humble beginnings, the members of Keling Kumang have made their own story – and now number over 110,000.
TPC, Cambodia Thaneakea Phum Cambodia has a vision of providing the poor with the opportunity to transform the lives of their families and communities. Established in 1994, TPC now has 54 branches and 95% of its 180,000 clients live in rural areas. More than 40% of them have incomes below the national poverty line, and 85% of loans go to women.
SECDEP, Philippines In the Philippines, our partner is St. Elizabeth Community Development Program (SECDEP) whose women members live on the island of Panay. From its start as a food program, SECDEP has evolved to provide microfinance, education, and health-related services. Good Return helps SECDEP deliver financial literacy and business training to its clients, and also finance for sustainable energy products such as home solar power systems and fuel efficient cook stoves.
SPBD, Tonga and Fiji South Pacific Business Development (SPBD) is part of a network of microfinance institutions in Fiji, Samoa, Tonga, and the Solomon Islands. They are committed to eradicating poverty by giving rural women the opportunity to start and grow sustainable enterprises. SPBD also provide clients with a range of services to support home improvements and education. Of the total loans distributed, 99% go to women, 80% to clients in rural areas, and some 40% to single mothers.
Major Corporate Partners World Education Australia received significant monetary and/or pro bono support from these organisations in the last year. We are most grateful for their assistance.
Industry Partners & Affiliations Australia: YWCA NSW Cambodia: Cambodia Microfinance Association Indonesia: Solidaridad, Stichting DOEN Foundation, Hivos Nepal: Regional Microfinance Development Centre, Centre for Microfinance Responsible Microfinance: Microfinance Centre of Poland, Smart Campaign, Social Performance Task Force, Grameen Foundation Progress out of Poverty Index World Education Inc: We are pleased to work in Cambodia, Indonesia, Laos, and Nepal with affiliated units of our founding member, World Education Inc. 5
Update on Good Return Good Return was established in 2009 to connect Australians to the working poor in the Asia Pacific who need a small loan to grow their income and lift themselves out of poverty. Combined with financial education and livelihoods training, this has ensured long-term benefits for many. Continued growth of the Good Return program has prompted some changes in the way we communicate with the Australian public. As more of our work goes beyond providing interest-free capital to our partners, we needed to explain this to Australians. During the year we have developed a new value proposition, creative direction, and website to engage and educate our supporters. Australians will now be able to follow the working journeys of a Village Trainer and Community Banker in each of the countries where our Field Support Officers are based. Our Field Support Officers themselves will also provide regular updates on their work and what daily life is like in a developing nation. These insights will provide a meaningful experience for donors, as well as educating them on microfinance, financial education and inclusion, Social Performance Management, and other tools for combating poverty.
Program Highlights 2,025 fully funded loans this financial year for a total of 7,081 to 30 June 2014 AUD $1,717,650 loaned with a 99.99% repayment rate 30,522 family members benefit from flow-on effects
The new brand was launched at our annual fundraiser in August 2014, and the new website went live in November 2014. Good Return continues to be a practical and personal way for Australians to make a difference in fighting poverty in the Asia Pacific.
SUPPORT SUPPORT Community Bankers Community Bankers to achieve to achieve their their social mission mission social
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FUND FUND Small Small Loans Loans to people people living to living in poverty poverty in
FOLLOW FOLLOW Village Village Trainers Trainers to develop develop skills to skillsinin their communities their communities
ADOPT ADOPT a Country a Country and be part of and be a part of the the development development
VISIT VISIT Our Programs Our Programs to see see our our work to work ďŹ rst hand first hand
GROW GROW Our Our Mission Mission to break to break the thepoverty poverty cycle cycle for forgood good
Skills Development Training and Skills Development Lack of education and a life of poverty form a vicious circle. Many of the rural poor in the countries where we work do not have the education or the skills to find a job or start their own enterprise. And so they in turn can’t afford more than a few years of school for their children. To break this cycle, people need access to practical training that enhances their skills, enabling them to earn a living, manage money, and build financial and personal assets. Good Return works with our partners to assess training needs in their communities, design interventions and learning materials, start train the trainer programs, and provide ongoing monitoring, coaching, and support.
Financial Capability Financial education and capability development strengthen the capacity and wellbeing of those living at the margins of the economy.
Program Highlights 748 trainers trained this year for a cumulative 1,302 to 30 June 2014 - Gender participation: 8% ♂, 92% ♀ 8,222 people participated in training this year for a cumulative 24,797 to 30 June 2014 - Gender participation: 3% ♂, 97% ♀
Effective financial capability goes beyond just understanding – to being ready, willing and able to act on the new knowledge. A key goal is to enable participants to close the gap between what they might want to do – and what they actually do in practice. Equipping people with the capacity to act flows from letting them experiment and rehearse, and build the confidence to move forward and apply positive behaviours. Good Return has moved toward a greater emphasis on understanding the drivers of behaviour and creating opportunities for clients to experiment with and practice positive financial behaviours. This greatly increases the likelihood they will apply the learning in their day to day lives.
Sustainable Livelihoods We focus on helping people grow sustainable and diversified income streams, through resilient enterprises that can survive both the good times and the bad. We also raise environmental awareness, reducing the use of pesticides and chemical fertiliser, and promoting recycled products where possible.
Kamrang Tith Master Trainer Kamrang Tith is one of the leaders in skills development with our partner Thaneakea Phum Cambodia (TPC). TPC’s financial education program, developed with Good Return, is available for all village members, not just clients. “This job with TPC is my dream job. Not only do I get to help community members improve their financial situation, I also get to mentor others who have a similar passion. One of the most enjoyable things about my job is seeing members smile and participate fully in the training. Although travelling to the rural classes can be difficult, I really enjoy getting out of the office to see the beauty of the rural areas, and chat with the participants of the financial education courses.” 7
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Case Study: Mao
Rin
Mao Rin (41) has received a certificate earlier this year for completing a Good Return savings course to help manage her loan. After dropping out of primary school in grade 4, Mao Rin says that she can “read and write only a little.” Now a mother of three, two of her children have had similar educational experiences. Her eldest child, now 22, was forced to drop out of school in grade 7 after an illness affected his hearing. Her second child dropped out to work in a garment factory so that she could help earn money for the family. Mao Rin and her husband have always relied on their rice crop and small well-boring business for income. However, the rice crop hasn’t always been successful, and the family has struggled to afford basic living costs let alone the expensive maintenance of their equipment. Things changed when Mao Rin was granted a micro loan. The funds from the loan meant that Mao Rin and her husband were able to purchase fertiliser for their rice crop, which resulted in a higher yield than ever before. They were also able to afford the cost of fuel and maintenance for their well-boring business, which now earns the family up to USD $200 for each well.
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Mao Rin says that thanks to the savings course, “I now understand the
differences between income and expenses, and the importance of saving money now for things for in the future and emergencies.”
This means that Mao Rin’s youngest daughter, just 13, will be able to continue her studies. The family’s extra income and improved financial stability also means that Mao Rin’s granddaughter (her son’s first child) will also stay in school longer.
1. Left to right: Mao Rin, her granddaughter, her sister, her youngest daughter, and her husband.
3. Participants who also received completion certificates from the savings course.
2. Family of all ages are welcome at training sessions.
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Responsible & Inclusive Microfinance Microfinance loans can be a powerful tool to fight poverty, when delivered responsibly. But they can cause harm if made to already indebted people, or are just not suited to their needs. That’s why Good Return works with institutions that share our social mission. They must believe in an integrated approach, delivering responsible, inclusive microfinance services alongside accessible capability development programs. Our goal is to help them deliver products that are responsible – safe, affordable, and reliable; inclusive – available to all in the community, particularly the poorest and most vulnerable; and responsive to their needs. Good Return’s work on Social Performance Management (SPM) has yielded positive results as we build the expertise of our partners. Looking ahead, we will continue to develop the Progress out of Poverty Index (also known as the PPI, an objective country-specific scorecard for tracking poverty levels), and promote better client protection practices (based on the Smart Campaign’s Principles) and the Universal Standards for Social Performance Management (USSPM). USSPM provide a guide to help financial service providers improve their social, environmental and financial performance. Working with our partners and their national microfinance associations, we encourage them to apply these standards in shaping a client centred, community based, poverty alleviation agenda.
Program Highlights Relationship established with five association partners: Rural Microfinance Development Center in Nepal, Center for Microfinance Nepal, Microfinance Center of Poland, Cambodia Microfinance Association, and Microfinance Pasifika 396 MFI board, management, & staff trained this financial year for a cumulative total of 1,354 to 30 June 2014 - Gender participation: 55% ♂, 45% ♀ Progress Out of Poverty Index development in Nepal and Fiji
Visit the Good Return website to see our plans for 2015.
Luigi Dela Cruz As a banker and trainer for our partner SECDEP in the Philippines, Luigi is on the ground delivering responsible microfinance to the women of Guimaras Island. Reaching these remote rural clients means hours on a motorbike on dirt roads, but his passion for community development makes it all worth it. For Luigi, the most difficult part of his job is motivating clients who have faced significant hardship, affecting their confidence and outlook. But this also provides his greatest source of satisfaction; when they apply the skills they have learned and are able to change their lives.
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Recently, his team has opened a new centre, so Luigi has been busy conducting orientation training. “I enjoyed giving the training and getting to learn about the new clients,” he says. “Listening to the hardships they have faced and their dreams for the future is really moving. I had never really understood how much the clients appreciate the savings training. I am always inspired when I see the client’s savings increase, and withdrawals decrease. I’ve also noticed that the clients are using their cashflow diaries to record their weekly expenditure.” 1. Counting repayments back at the office.
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2. Do you like your banker this much? Luigi with clients at a meeting. 9
Trek to End Poverty, March 2014 In March 2014, eleven participants boarded their flight to the Philippines on our inaugural trip, the Women of the World: Trek to End Poverty. The team spent 10 days visiting remote villages in the Philippines to see our financial education and microfinance programs first hand. The trip culminated in a trekking challenge – three days climbing Mt Madjaas.
“It confirmed in my mind and my heart that Good Return has a powerful and life changing role to play to alleviate poverty.” – Kate Jordan, Board Member & Trip Participant
The trip was a wonderful experience for everyone involved, and we were delighted by the success of the participants’ fundraising. We are looking forward to our next trip, the Pedal to End Poverty in Cambodia in March 2015.
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1. Sarah Paparo with Filipino women on International Women’s Day. 2. Nicole Jamison, Kate Fabian, and Di Ryall are welcomed by Mary Ann (far right) and her centre members. 10
3. The group on top of Mt Madjaas.
CAFE Initiative Over the years, we have observed that giving the poor access to financial products and services is not always enough to break the cycle of poverty. Many do not understand how to use these services, and as a result, valuable financial tools for poverty alleviation are being bypassed by the very people they are designed to help. CAFE (Consumer Awareness and Financial Education) is targeted at two levels: MFIs, and their clients. For MFIs, it responds to recent calls for more responsible lending and client protection standards in the sector. We work with national microfinance associations and financial service providers to strengthen their consumer awareness and financial capability development efforts. At the client level, CAFE aims to improve the power of financial education to change personal behaviours. It recognises that financial knowledge by itself is not enough. To have long term impact, training must provide people with the confidence to change their mind set and behaviours. It is these capabilities that enable low income households to improve their livelihoods – and their lives – in a truly sustainable way. CAFE is currently in a pilot phase with our partners in Cambodia and Nepal.
Vanmai SCU Update Vanmai Savings and Credit Union (SCU) was established in response to the lack of savings and credit services available to rural households in Laos. It was launched in late 2010 by WEAL and our affiliate World Education Inc. The meaning of ‘Vanmai’ is ‘new day,’ and it represents the dawn of an effort to help the rural poor of Salavan province access financial tools essential to escape poverty. Starting with a small group of motivated community leaders, and seed funding of $10,000 provided by WEAL, Vanmai SCU has gradually increased its membership, savings base, and loan portfolio to become a sustainable member-owned financial institution with total assets of $100k. Vanmai achieved financial self-sufficiency in 2011, and WEAL’s five year support to this initiative ended in June 2014. We have negotiated with the German development agency GIZ to continue to provide technical support through its extensive rural banking support program in Laos. We are pleased that Vanmai is able to access this support to grow and thrive.
Program highlights • • • •
Increase in membership to 822 members 50 participants in sustainable agriculture and financial literacy training Increase in total assets to approx. $100k, and loan portfolio to approx. $80k Dividends distributed to members following Annual General Meeting in February 2014 • 13 Board & staff members received training on topics such as credit and delinquency management, compliance reporting, and financial literacy. • Negotiated ongoing technical support from German development agency GIZ
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Field Support Officer Program This year marked the beginning of our Field Support Officer (FSO) program. It was launched through the placement of four full-time, skilled volunteers with partners in Fiji, Tonga, Cambodia, and the Philippines for a period of 12 months. It is the first year of a program which we know will provide great benefits to our work in the region.
The program has provided invaluable support for project management and coordination, relationship management, technical assistance, and creating marketing and communications material. We intend to grow the program in the future according to partner and program needs.
2014 Field Support Officers
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Esther Bates
Zac Colborne
SPBD, Suva, Fiji
SPBD, Nuku’alofa, Tonga
Background: Commercial Management
Background: Economics, Applied Finance
“One of my favourite things about being an FSO is meeting SPBD’s clients and hearing how even small amounts of resources and basic financial training can have a huge impact on their lives. The gratitude and warmth of the ladies I meet makes the hard work worthwhile!”
“Being part of a partnership that aims to provide women with the opportunity to pull themselves out of poverty and improve their own lives and those of their family is why I love this role and being here in Tonga.”
Zena Van Bemmel
Jason Weise
SECDEP, Iloilo City, Philippines
TPC, Phnom Penh, Cambodia
Background: Arts, International Development
Background: Program Management, Training
“I enjoy working for an organisation that sees the value in supporting the disadvantaged. I love knowing that our work is valued and appreciated, through the genuine smiles that always greet me, and the overwhelming generosity of the women we work with.”
“I really enjoy being an FSO. It’s challenging, rewarding, and I’m learning a lot. One day I will be helping TPC with some aspect of its client protection agenda, the next I will be on the back of a motorbike visiting a client, and the next I will be presenting to a room of branch managers. There is never a dull moment!”
ConnectEd Update World Education Australia in partnership with YWCA NSW, World Education Inc, and the Alcatel Lucent Foundation implemented the ConnectEd program in regional NSW over the past three years. The program utilised a range of interventions to equip students with life skills to enter the world of work. The training covered topics including financial literacy, basic IT and internet safety, health and nutrition, rights and responsibilities at work, safe consumerism, vocational skills training, and personal development. In conjunction with the training courses, youth have participated in mentorship and career workshops with Alcatel-Lucent staff. Alcatel-Lucent staff have also provided support by acting as mentors in financial literacy workshops, to equip young people with knowledge on day-to-day financial considerations from financial scams to mobile phone plans, as well as a range of other volunteer activities. The program has also provided work experience and work placement opportunities for out of school youth. The program’s target of 600 was later stretched to 800, and reached over 1,200 youth. The three year program ended in March 2014.
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Program highlights • • •
1,211 youth participated in the program 836 in-school-youth completed training courses and life skills programs 375 out-of-school youth completed vocational training and work experience
1. ConnectEd graduate with her certificate 2. Lina with Jessie, our Program Officer 3. Lina conducting a training session
Lina Atamai Lina is a trainer with Good Return’s partner in Tonga, SPBD. When we met, she was telling the class a story about Frank Lowy. How he came to Australia with nothing and went on to build the Westfield shopping empire. Her message – if you work hard, no matter how little you start with, you can achieve your dream.
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This prompted discussion about the challenges in running any enterprise. As the participants shared their experiences, Lina offers advice and encouragement. She notes the women often lack confidence. “In Tongan culture, once you’re an adult, you should make your own money and not rely on others.” This lack of support discourages many women, and so a key part of her job is to encourage them to believe in themselves. Why did she become a credit centre manager? “I’d separated from my husband and needed to support my kids.” But she soon began to relish the job. “It really hits me when we do the vision lesson. I ask the class to exchange their drawings, and many start to cry when they share their dreams.”
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Lina practices what she preaches. “I keep my vision on the wall so I see it every morning when I wake up.” And she concludes with this thought. “My passion is working with people, and these women inspire me. I learn from them and they motivate me to follow my dreams too.” 13
Environmental Impact We are committed to promoting sustainable, environment friendly practices with all of our global partners, and improving our own environmental performance. World Education Australia has made a commitment to be carbon neutral by 2017 and we have been making progress towards this goal. Due to the nature of our work and in particular, the requirements of air travel for our international staff, carbon neutrality will be achieved through investing in ethical carbon offsets. This year we have chosen to balance 50% of our total carbon emissions from air travel (111 tonnes CO2 in the financial year) with offsets that support energy efficiency projects in two of Good Return’s partner countries. These include the Cambodian Cookstove Project, which is developing and distributing improved, energy-efficient cookstoves, and the Indonesian Musi Hydro Project, to generate energy and employment in the upper reaches of the Musi river in Sumatra. We believe these contribute to a more efficient and cleaner energy future.
100% recycled paper used in office
By facilitating access to energy efficient technology among poor households, our Sustainable Energy Program achieved an average reduction of 617 tonnes of CO2 per year. Although the Program is now finished, the technologies that we facilitated are still in use, so reduction in emissions continues. 2011-12
2012-13
2013-14
Electricity
10.4
13.8
19.0
Air Travel
53.4
55.9
111.2*
11,790
15,730
21,615**
CO2 Emissions (tonnes)
720 litres of paper diverted from landfill
Scope II Energy Consumption Electricity (kWh)
* This year’s CO2 emissions include flights from staff who are based outside of Australia. This data was not included in 2012-13 and earlier. ** The World Education Australia offices relocated in February 2013 to premises nearly double in size to accommodate our growing team, thus the increase in electricity usage.
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50% electricity is renewable GreenPower from Origin Energy
Board of Directors Neild McIntosh, Chair B.A. (Actuarial Studies), M.A. (International Development) Neild contributes as a nonexecutive director of equigroup (a subsidiary of CBA), and also for Can Assist, a charity helping cancer patients in NSW.
Guy Winship, CEO
Gordon Cairns M.A. (Hons) Gordon’s career spanned leadership roles with several global companies, including as CEO of Lion Nathan Ltd. He chairs Origin Energy and its Foundation, is a non-executive director of Quick Service Restaurants, and a senior advisor to McKinsey.
Pam Jonas B.A. (Hons), M.A. (Public Policy & Management) Pam worked for more than two decades in education, training, and employment policy. She applied this expertise as an education and community consultant, and now splits her time between Australia and France.
Kate Jordan B.Com, LL.B, LL.M Kate is a Corporate and Mergers & Acquisitions lawyer. She is the Deputy Chief Executive Partner of Clayton Utz.
David Kahler B.Sc, M.A., M.Ed, Ed.D. David is an organisational development and education specialist with over 40 years of international practice. From his base in Normandy he maintains oversight of World Education Inc’s European programs.
D. James MacNeil, Alternate B.A., M.Ed., Ed. D. James has worked for World Education Inc. (WEI) on education and livelihoods development programs in Indonesia, Cambodia, Nepal and India. He is based in Boston where he is Vice President of WEI’s Asia Division.
William Pigott B.S., M.B., formerly FRACP Bill is a former education and public health practitioner, working with WHO for 21 years, latterly in Nepal and Cambodia. He is now involved in community support with Landcare in NSW.
Damien Woods B.Sc., MBA Damien has worked for more than 25 years as a management consultant, mostly with Accenture, specialising in the healthcare field. He is a director of Accenture Australia Foundation, Smile Dental, and Australian Agricultural Technologies.
Margaret Wright, Treasurer B.Com., FCA Margaret is a strategic advisor who brings her executive background in accounting, audit and IT roles at KPMG and Macquarie Bank to consult on a variety of technology and business process issues.
B.Soc.Sc., B.Com (Hons), M.Sc. (Town & Regional Planning) Guy is a development expert who has worked in Africa and the Asia Pacific. He consults on behalf of the organisation, advising on microfinance, institutional governance and livelihoods training. He is the only executive director.
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1. Farmer Field School participants at a training session in West Kalimantan, Indonesia 2. Financial education under a mango tree in Cambodia 3. SECDEP staff assess damage caused by Typhoon Haiyan on Panay Island, Philippines 4. Shova, the General Manager of Manushi MFI in Nepal, helps survey a client as part of testing the new Progress out of Poverty Index
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Governance Legal Status
ACFID Code of Conduct
World Education Australia Ltd (WEAL) is a public, voluntary, notfor-profit company limited by guarantee. WEAL has charitable status as a registered Public Benevolent Institution (PBI) and has the authority to fundraise in all states of Australia.
WEAL strives to maintain the highest possible standards of governance. WEAL supports and is committed to adherence to the ACFID Code of Conduct as a minimum standard for integrity, governance and reporting. All directors, paid staff and volunteers are expected to adhere to and uphold the Code of Conduct.
World Education Australia Overseas Relief Fund WEAL is the Trustee of controlled entity World Education Australia Overseas Relief Fund (WEAORF), which holds Deductible Gift Recipient status from the Australian Taxation Office. The objective of WEAORF is to support economic and social development programs to improve the lives of the poor in the Asia Pacific.
World Education Inc. WEAL shares its name and philosophy with its Founding Member, World Education Inc (WEI), a not for profit organisation based in Boston, USA. WEI was founded in 1951 and provides training and technical assistance through non-formal education across the globe. WEI and World Education Australia operate independently of each other, and all dealings are conducted on arms length terms.
Board of Directors The Board currently has ten members (which includes the Chief Executive Officer and an Alternate Director).
Board Meetings The Board met four times in the financial year: in September and November 2013, and February and May 2014.
Board Committees The Board has three sub-committees: the Audit Committee, the Nominations Committee, and the Remuneration Committee. These Committees meet on an as-required basis.
Mereani Uluimoala Mereani, 60, lives on the Coral Coast in Fiji and has recently been elected Centre Chief in her village. She joined SPBD, our partner in Fiji, two years ago. About life before the loans, she said, “My husband is just a fisherman and I had to work on the farm so we had enough to live on. There are not many jobs for the villagers.” She has now received and repaid several loans. Mereani started baking, screen-printing and tailoring businesses through purchases of an electric oven, frames and paints for screen printing, and cloth for sewing. Instead of selling her goods in her village where there is little disposable income, Mereani takes her wares to high-end resorts where people can afford to buy her products. Each centre in Fiji now has a voluntary Financial Education Facilitator, a program that Good Return helped to initiate. This teacher mentors other women in her community in using their financial diaries. “My facilitator teaches me about cashflow, money, expenses and profit.” She told us. “The cashflow diary is very helpful to learn about the financial side of the business.” She says, “The village looks up at the ladies because of their businesses, because they are respected they are able to make more positive contributions to the community.” Mereani has personally led a centre project to donate two bus stops to her village, funded in part by their centre funds and the remainder through member fundraising. We are excited to see what is next for Mereani! 17
Concise financial report for year ended 30 June 2014
Independent Audit Report
Auditor’s Independence Declaration
World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au 18
Concise financial report for year ended 30 June 2014 Consolidated Statement of Financial Position Consolidated Group 2014 $
Consolidated Group 2013 $
ASSETS CURRENT ASSETS Cash and cash equivalents
1,320,361
Trade and other receivables Other financial assets (loans) Other current assets
1,294,561
11,710
3,172
229,154
273,708
63,384
66,637
1,624,609
1,638,078
Property, plant and equipment
29,912
40,593
Intangibles
60,711
23,556
TOTAL NON-CURRENT ASSETS
90,623
64,149
1,715,232
1,702,227
TOTAL CURRENT ASSETS NON-CURRENT ASSETS
TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables
124,580
158,596
Special purpose funding
409,895
470,904
Other financial liabilities (loans)
476,511
465,237
Provisions TOTAL CURRENT LIABILITIES
66,697
35,747
1,077,683
1,130,484
NON-CURRENT LIABILITIES Provisions
11,107
56,410
TOTAL NON-CURRENT LIABILITIES
11,107
56,410
1,088,790
1,186,894
626,442
515,333
TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Reserve for designated purpose Retained earnings TOTAL EQUITY
-
-
624,881
514,355
1,561
978
626,442
515,333
2013-14 Revenue Grants for Domestic Programs, Investment & Other Income Overseas Grants
Donations & Gifts Monetary
18%
Domestic Programs
Accountability & Administration
27%
Fundraising DFAT Australian Aid Grants
International Programs
12%
22%
5%
28% Australian Grants
2013-14 Expenditure
Community Education
11%
69%
8% 1%
World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au 19
Concise financial report for year ended 30 June 2014 Consolidated Statement of Comprehensive Income Consolidated Group 2014 $ REVENUE Donations & gifts: Monetary Non-monetary Grants: Department of Foreign Affairs and Trade Other Australian Other overseas Investment income Other income TOTAL REVENUE EXPENDITURE International Aid and Development Programs Expenditure International Programs Funds to international programs Program support costs Community education Fundraising costs Public Government, multilateral and private Accountability and administration Non-monetary expenditure Total International Aid and Development Programs Expenditure Domestic Programs Expenditure TOTAL EXPENDITURE Excess of revenue over expenditure Income tax expense Surplus for the year Other Comprehensive Income TOTAL COMPREHENSIVE INCOME
Consolidated Group 2013 $
443,746 247,763
400,853 170,828
554,689 581,023 101,650 26,805 353,053 2,308,729
377,726 612,238 135,659 31,832 485,618 2,214,754
750,904 588,862 28,040
716,636 487,713 30,996
119,745 29,453 207,825 247,763 1,972,592 225,028 2,197,620 111,109 111,109
133,396 26,985 164,129 170,828 1,730,683 276,334 2,007,017 207,737 207,737
111,109
207,737
During the financial year, World Education Australia had no transactions in Bequests and Legacies, or in Political or Religious Adherence Promotion Programs categories.
Consolidated Statement of Changes in Equity Retained earnings $
Reserve for designated purpose $
Total $
Consolidated Group Balance at 1 July 2012 Items of other comprehensive income Excess of revenue over expenses Amounts transferred (to) / from reserve Balance at 30 June 2013 Items of other comprehensive income Excess of revenue over expenses Amounts transferred (to) / from reserve Balance at 30 June 2014
701
306,895
307,596
-
-
-
207,737
-
207,737
(207,460)
207,460
-
978
514,355
515,333
-
-
-
111,109
-
111,109
(110,526)
110,526
-
1,561
624,881
626,442
The excess of revenue over expenses from operations of the controlled entity, World Education Australia Overseas Relief Fund, is transferred to a Reserve for Designated Purposes. This recognises that the net assets represented by this reserve cannot be used for any purpose other than providing relief to persons in a developing country certified as such by the Department of Foreign Affairs and Trade; or, on winding up, must be transferred to some other fund qualifying under the Overseas Gift Fund Provisions of the Income Tax Assessment Act 1997.
World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au 20
Concise financial report for year ended 30 June 2014 Consolidated Statement of Cash Flows
CASH FLOWS FROM OPERATING ACTIVITIES Donations and grants Customers Suppliers and employees Interest Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Property, plant and equipment Capital WIP, Good Return software and web-site Security deposit Net cash (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Good Return - net loans movement with public Good Return - net loans movement with microfinance institutions Repayment of WEI loan Net cash provided by financing activities Net increase/(decrease) in cash held Cash at beginning of financial year Cash at end of financial year
Consolidated Group 2014 $
Consolidated Group 2013 $
1,620,099 352,219 (1,970,562) 26,805 28,561
1,179,743 549,441 (1,737,935) 31,832 23,081
(57,751) (57,751)
(35,120) (21,170) (18,176) (74,466)
11,274 44,554 (838) 54,990
160,932 (135,594) 1,578 26,916
25,800 1,294,561 1,320,361
(24,469) 1,319,030 1,294,561
Table of Cash Movements for Designated Purposes Cash available at beginning of financial year $
Cash raised during financial year $
Cash disbursed during financial year $
Cash available at end of financial year $
DESIGNATED PURPOSES DFAT ANCP annual allocation Skills For Life ConnectEd Education & Microfinance Expansion Small farmers livelihoods Other
-
554,689
(554,689)
-
190,298
380,154
(329,374)
241,078
11,316
233,264
(244,580)
-
212,188
200,000
(307,647)
104,541
57,102
45,239
(102,341)
-
-
185,212
(120,936)
64,276
470,904
1,598,558
(1,659,567)
409,895
Good Return
391,591
682,900
(638,699)
435,792
Total for designated purposes
862,495
2,281,458
(2,298,266)
845,687
Total for other non-designated purposes TOTAL
432,066
83,790
(41,182)
474,674
1,294,561
2,365,248
(2,339,448)
1,320,361
Good Return: amounts indicated under cash raised include loans and donations from public lenders and cash disbursed include donations to Good Return and loans to partner microfinance institutions.
World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au 21
Supporters, Management & Staff World Education Australia thanks our partners and supporters for their contributions. These organisations and people have been essential to the impact and sustainability of our work and we thank everyone for their time, funding, and talent.
Australia Adobe, Australian Aid, Australian Council for International Development (ACFID), Brown Box, Custom House, Fern Software Australia, Harvest the Net, Macquarie University, ME Bank, Miss Chu, Optimiste Wines, Salesforce.com, SmartGroup, Supporter360, Thinktank, Travel and Associates – Press & James, and XE.com.
Corporate Partners Accenture Australia Foundation, Accenture, Clayton Utz, Deloitte Foundation, Deloitte, Origin Foundation, Origin Energy, and the Westpac Group.
Regional Asian Development Bank, International Fund for Agricultural Development, Microfinance Pasifika Network, World Education Inc.
Volunteers, Friends, and Donors Andrea Chang, Ann McDonald, Anne Bissaker, Alex Gonda, Anika Fletcher, Beck Rolls, Book of Giving / Gabby Cox, Caroline Armitage, Daryl Pilkington, David Weston, Eric Hamilton, Esther Bates, Fionnuala Maye, Glenn MacKrell, Jasminder Hayer, Jason Weise, Kate Fabian, Lauren Black, Leonard Kary, Lesley Hume, Loma Saker, Margaret Campbell, Natalie Sikand, Oliver Hoffmann, Paul Griffin, Peter Van Roekel, Rhett Brokenshire, Ron Wills, Sandrine Vullierme, Sharlene Dadd, Sheena Coupe, Stella Bray, Stephanie Moroney, Tasha Pain, Thomas Winship, Velvet-Belle Templeman, Vincent Cleary, Ware Kuo, Zac Colborne, Zena van Bemmel, the Australian Communities Foundation, the Cairns Family, the Elizabeth Ann Powney Charitable Trust, the English Family, the Family Frank Foundation, the Greatorex Foundation, John Cook, the McIntosh Family, the Morawetz Social Justice Fund, the Yom-Tov family, our online editors, and all our generous donors.
Management World Education Australia has a team of full time, part-time, and volunteer personnel in Australia and overseas. The team at time of publication comprised: Guy Winship Shane Nichols Sujinda Hwang Nicole Stanmore Norm Sturrock Mehul Patel Ian Jackson
CEO Program Director Social Enterprise Director Development Director Operations Director Group Financial Controller Company Secretary
Ambassadors Ann Devine, Diana Ryall, Francesca Rush, Heath Francis, Lisa Roberton, Paul Mitchell, Richard Grimmond, Shravran Malkani, and Tharani Jegatheeswaran.
Staff Anjana Retnasaba, Asim Jaweed, Bunthoeun Sao, James Le Compte, Jessie Fisher, Joanne Qian, Joni Freeman, Melodie Buendia, Muhammad Awais Butt, Nicole Stanmore, Rob Haggett, Robyn Robertson, Rose Ramilo, Sandra Carvajal, Sarah Webster, and Sesep Zainuddin.
Annual Report Credits Norm Sturrock, Joni Freeman, Sarah Webster, Shane Nichols, and Ariana Neuman. Design: Tracy Smith & Joni Freeman
Photos in Annual Report Jason Weise, Zac Colborne, Stephanie Moroney, Esther Bates, Kristen Briggs / Inspired Adventures, YWCA NSW, Jessie Fisher, Rob Haggett, Zena van Bemmel, and Budi Christiana.
Complaints Process Please note that all complaints, questions or comments will in the first instance be actioned by a World Education Australia team member within 48 hours. If this is not appropriate, or you are unsatisfied with their answer, please call us on +61 2 9114 8111 during business hours (9 am to 5 pm) Monday to Friday. Upon request, you can ask to speak to one of our senior executives. That manager will make sure your concern is addressed in an appropriate , discreet and confidential manner. You can be assured that every effort will be made to find a satisfactory resolution to your complaint.
ACFID Code of Conduct We are a signatory to the Australian Council for International Development (ACFID) Code of Conduct. Details of the provisions of the Code can be viewed in the ACFID website at www.acfid.asn.au. In the event that your issue entails a potential breach of the Code, you have the option of escalating it to the ACFID Code of Conduct Committee. Their contact details are in their website under the Complaints tab. 22
1
Case Study: Melania
Liana 2
“Financial education has changed my family’s life” Not knowing how to manage your own finances means that when you have money, you spend it immediately. You don’t have savings to buy medicine for your son when he is desperately sick. You don’t always have enough food, and sometimes have to keep the children home from school so you can use that money for meals instead. Not understanding interest rates means that you are at the mercy of moneylenders when these emergencies happen. They promise the world but instead create a burden of debt for life. Eighteen months ago, this was the reality for Melania and her husband Unno, her son Romi (11) and daughter Oktavia (7). Their only income was from her small grocery store at home, and Unno’s daily wages as a farm hand on a rubber plantation.
3
She told us, “I did not know how to manage my family’s finances. If I got money, what happened in my mind was only how I could spend this money to buy something – whether it was important or not. Sometimes we earned enough for one month, and sometimes not. Our finances were terrible.” That was why, in January 2013, when she heard about Good Return’s financial education program, she and her husband saw it for the opportunity it was, and signed up immediately and attended the training together. There, they learned how to keep a financial diary, plan their family’s finances, and save for their children’s education. They took out a loan from Good Return’s partner, Credit Union Keling Kumang, and used their new knowledge to improve Melania’s grocery store and purchase their own small rubber plantation so Unno could earn more than just a daily wage. But this change was only the beginning. When we visited them in March this year, they were even starting to build a new house.
4
“We had not planned to have a new house, but after our training we now know how to manage our family’s money, and we are able to build a new, better house for our family. We buy materials step by step, only when we have money. I build it myself because if we hire people it is expensive, and we can use the labour money for materials instead,” Unno explained to us. Melania said that it was the financial training which helped her family start to build a better life for themselves. “The training is useful for the community and can change the community, but many people have not realised this. Their life looks like our life in the past. Many people are very surprised what has happened to our family in just one year,” she said with a smile. We are not surprised – this is what happens when people living in poverty get access to skills development opportunities. They begin to develop the confidence, knowledge, and capability to break the cycle of poverty for good.
1. The family in front of their old house and grocery shop 2. Inside the grocery shop 3. Melania and Unno proudly show their family’s financial diary 4. In front of the foundations of their new house 23
PO Box 479 St Leonards NSW 1590 Level 1, 174 Willoughby Rd Crows Nest NSW 2065 E info@worlded.org.au T +61 2 9114 8111
World Education Australia building skills, changing lives
worlded.org.au goodreturn.org.au
This Annual Report is printed on recycled and carbon neutral paper. Copies of this and other World Education Australia Annual Reports can be obtained from our website.