ANNUAL REPORT 2015
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Contents 4
Our mission
5
Letter from the Chair and CEO
6
Our core business
7
Our impact
8
Responsible inclusive finance
9
Financial capability and consumer empowerment
10
Smallholder agribusiness solutions
11
Good Return Loans
12
Where we work
13
Our partners
14
Our FSO program
15
Donor initiatives
16
CAFE Initiative
18
Case studies
20
Our values
21
Governance
22
Directors report
23
Concise financial report
27
Our supporters
3
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Our Credentials World Education Australia (WEAL), is a development agency that works across the Asia Pacific region to deliver economic and social development programs for the financially and socially excluded. As microfinance and livelihoods specialists, we have provided technical assistance on projects for the UN, ADB, USAID, and other international agencies. Good Return is our public face and principal operating division. We are an affiliate of World Education Inc., a Boston-based
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charity that for more than fifty years has worked around the globe to improve the quality of life through education. WEAL holds full accreditation from Australian Aid, part of the Department of Foreign Affairs & Trade (DFAT). The purpose of the government’s aid program is to promote Australia’s national interests by contributing to sustainable economic growth and poverty reduction in developing countries in our region.
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 Notfor-profits Commission (ACNC) is the regulator for the sector. We are registered with ACNC and comply with all requirements.
2015 Letter from the Chair and CEO
This report recaps yet another eventful and successful year for World Education Australia Ltd (WEAL) and our core Good Return program. During the period, we’ve taken time to reflect on where we are and where we want to be, and develop a fresh strategy to help us get there over the next three years. Eradicating extreme poverty
The last two decades have seen real progress towards eliminating extreme poverty. The first Millennium Development Goal set in I990 was to halve the level of global poverty by 2015. This was achieved in 2010. In 1990, nearly half those in developing countries survived on less than $1.25 a day. By 2015, this was 14%. But although their number fell from 1 billion to 836 million, it is still too many. And progress has been uneven. Women are disproportionately more likely to suffer hardship than men, due to unequal access to paid work, education and property. Gender equality is a key goal for us, and for the development agencies who support us.
Refocusing our program agenda
In a changing world, Good Return must adapt if we are to add value for our partners and beneficiaries. This means we must continue to refine and refresh our program agenda. Over the coming years our focus will be on four core areas: responsible inclusive finance, personal financial capability and empowerment, smallholder agribusiness solutions, and microfinance loans. The rest of this report expands and explains how these programs touch the lives of so many in our region. To execute our agenda, we must innovate - and invest. We’re boosting client-level research and data to help better understand core economic issues facing the poor. We’re investing in IT systems - to engage directly with
them in their communities, and to monitor our programs in real time. For people to change their financial behaviours, we recognise they need more than just information. So we’ve revised our training approach to reinforce personal financial capabilities. With 70% of the world’s poor living in rural areas, we have developed field schools to train smallholder farmers. And we have maintained our online loan program that allows the public to lend a hand to thousands of microfinance clients across the Asia Pacific. This remains our key engagement platform with supporters in Australia.
Our partners and supporters
Central to all our work is partnership, in its deepest sense. We align ourselves with local institutions and development agencies who share our vision. We work with them to raise awareness of social performance goals, and to strengthen their pro-poor policies, products and services. Our programs are designed to yield long term, sustainable benefits even after we leave. Our financial supporters are also key partners. In a challenging economic climate, our viability relies more than ever on their sponsorship, helping us build and renew a diverse funding base. On the ground, in our offices in Australia and across the region, our team of skilled, dedicated staff and volunteers have made it possible to achieve the impacts described in this report. For their support and contribution, we thank them all.
Neild McIntosh, Chair
Guy Winship, CEO
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Our core business
Our focus is on empowering those living in poverty to engage with service providers and others to enable active and equal economic participation. We engage strategically with partners to help them innovate financial services and economic opportunities that benefit those living in poverty. Responsible Inclusive Finance WEAL works with our partners to put clients at the centre of their operations.The process begins by agreeing a clear plan for the institution’s social and financial performance. In this, their management team commits to strengthen consumer protection practices, create a positive customer experience, and objectively track their impact on reducing client poverty levels.
Smallholder Agribusiness Solutions The poorest overwhelmingly depend on agriculture for their livelihoods. We have brought to rural communities in Indonesian Borneo our innovative Farmer Field School program. Here smallholder farmers learn new techniques for soil and pest management, use of organic fertiliser, and how to optimise yields from seed time to harvest. This work is underpinned by a strong awareness of environmental sustainability.
Financial Capability & Consumer Empowerment Our Capability Development approach recognises the importance of consumer behaviour in creating new approaches to the delivery of financial services. We empower low income users to examine their daily habits and practice, so they buy the financial products most appropriate for them. We deliver this program primarily through our CAFE (Consumer Awareness & Financial Empowerment) initiative, engaging with national level microfinance associations to extend our reach and impact.
Good Return Loans Our online loan platform enables financial service partners to access low cost capital and support expansion of pro-poor financial services. We continue to update and streamline our IT platform to improve its functionality and user experience. This is our key engagement link with supporters in Australia. Of the total funds raised and repaid, about a third are donated to WEAL to finance our other core programs
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Our impact Responsible Microfinance
1,653
Microloans
8,500
Capability Development
1,726
2,000
34,000
37,481
500,000 People living in poverty benefit. We are different from most charities. WEAL does not directly disburse money, or goods and services, to the needy. Rather, our mission is to empower and enable the poor to help themselves. We aim to create human and financial infrastructure, by building skills and access to capital, so that people can leverage their own ability and effort into a sustainable income. 7
Responsible inclusive finance Recent research studies have failed to show a strong causal link between microcredit and poverty reduction. This prompts questions about how well financial service providers (FSPs) execute and deliver against their stated mission. Their products should be designed to help the poor improve their lives, and their delivery must be responsible, transparent, fair and safe. Lender behaviours in an increasingly competitive market has moved consumer protection to the top of the financial inclusion agenda. The Smart Campaign is a global initiative dedicated to raising the standard of client service and protection, and is the sector’s leading voice for consumer protection. Smart Campaign has established a set of best practice standards to benchmark lending and client management processes. They cover: Appropriate product design & delivery Transparency Responsible pricing Privacy of client data Fair and respectful treatment of clients Prevention of over-indebtedness Mechanisms for complaint resolution
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During the year, we were delighted when LOLC, our partner in Cambodia, became the first FSP (Financial Service Provider) in that country to win Smart Campaign accreditation. Good Return has positioned itself at the cutting edge of this initiative. Our specialists coach our partners’ management on building their social performance agenda, and on best practice in areas like client protection, transparent loan pricing and debt collection. We believe these measures are essential if microfinance is to become a more respected and in the long run a more effective tool in helping people escape a life of poverty. At a broader sector level, consensus has emerged around a set of universal standards for social performance management (USSPM) and measures to track these. For USSPM to be effective, greater awareness, understanding, and capability to apply them are needed at national level and by individual lenders.
Financial capability & consumer empowerment Our approach
We believe that the best way to make a lasting difference to the lives of the poor is to build deep empathy with them. Spending time on the ground, in their communities, allows us to invest in relationships, build trust, gather actionable insights first hand, and empower the voice of those living in poverty. With expansion of financial services in developing countries, the risk of over-indebtedness has become an issue facing many low-income clients. While many microfinance lenders have embedded Client Protection Principles within their operations, few understand the other half of the equation – how to empower the consumer.
Financial education traditionally assumes that being more informed means better financial decisions. But while conventional training can improve decision making capacity, many studies indicate it does not always build the confidence to exercise choice or adjust personal behaviours. A more behaviourally oriented approach is called for. This approach we call Human Centred Design. The outcomes and impact of onetime training is often short lived. Positive financial habit formation is a long-term process. To create sustainable behaviour change requires reinforcement through a supportive home and institutional environment.
Human Centred Design means We learn through observing We listen to people’s voices We experience real life challenges We create tailor-made solutions that match a person’s true needs, priorities and preferences. We work with our partners to innovate and strengthen financial services, enabling clients to improve their financial wellbeing. Our work is designed to continue to yield benefits after we leave.
Through innovative use of technology, field research, data-based and qualitative assessments, we want human centred design to be at the heart of our effort to extend financial and economic inclusion to the poorest communities.
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Smallholder agribusiness solutions 70% of those grappling with poverty live in rural areas. Smallholder farm households are the largest segment of those living on less than $2 a day. 2.5 billion people are involved in smallholder agriculture. They work 500 million farm enterprises that produce 80% of the food consumed in emerging countries.
Key success factors
Working with agricultural communities requires a broad approach. It seeks to improve practices; access to markets and price information. It also must assure appropriate inputs (fertiliser, pesticides, seedlings), and relevant
support organisations, and logistics (transport, storage). Technology can play a critical role in supporting farmers by overcoming challenges traditionally associated with remote, rural locations. Farmers need financial services tailored to their seasonal cash flow and capital needs. These are very different from the standardised products offered to traders or service enterprises. Any work with agricultural players involves many stakeholders. They will often have very different interests, which can be especially sensitive where environmental and conservation issues arise.
Participants in a Farmer Field School learn how to identify good seeds
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Our strategy
Our goal is to improve the financial well-being of smallholder farmers by strengthening agricultural practice, access to markets and to appropriate finance. To achieve this we will: Support farmers to access markets and information, and negotiate for fair prices and trading terms. Enable them to improve agricultural practices to increase yields, and minimise costs and harmful environmental impacts. Ensure they can access finance that is appropriate to their needs.
Using pH testing kits teaches farmers how to maintain their soil’s ideal balance of acidity and alkalinity.
Good Return loans
No one deserves a life of poverty. By accident of birth, people are born into poverty, just as their parents before them. Unchallenged, the cycle will continue - for their own children, their children, and so on for future generations. The curse of poverty is not just scarcity. It is uncertainty – from a failed crop, diseased livestock, drought, flood, or illness.
Pathways out of poverty
Financial services play a pivotal role in poverty alleviation and decreasing the vulnerability of the disadvantaged. However, lending money to people without knowledge of how to manage the debt may cause harm. Similarly, gaining new skills but without access to capital can rob aspiring entrepreneurs of the chance to achieve their dreams.
The Good Return loans program gives people access to resources and opportunities to improve their lives, to tide them over hard times and flourish in the good. Coupled with financial capability training these loans help cover household emergencies, start new businesses and build assets for the future.
Good Return loan program to June 2015 Since the program began in mid 2010, some 6,700 Australians have contributed more than $2 million in interest free loans.Good Return advanced this capital to our microfinance partners, helping them finance loans to 8,500 individual borrowers, almost all of them women. In the year under review, 1,400 borrowers were helped with funding of nearly $500,000.
Leila
Starting with a loan of Pesos 2,500 from SECDEP, Leila established a frozen food business in the Philippines, managing the supply chain from production to delivery. Participation in a series of savings trainings workshops gave her the skills to manage cash flow and save for the future. Saving diligently, Leila was able to expand her existing business and
For partner financial service providers it enables them to access capital to support innovation, and the expansion of pro-poor financial services.
Our mission
Our mission is to enable those living in poverty to achieve economic empowerment through responsible financial inclusion and capability development.
enter new markets. Leila now supplies chickens to merchants throughout Panay Island and even grows the ingredients for her popular chicken marinade. Leila’s business practices enable her to reduce costs and produce high quality products. “It’s important to save more because you don’t know what will happen in the future. That’s the principle our family lives by.”
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Nepal Lao PDR Cambodia Philippines
Indonesia
Solomon Islands
Fiji Tonga
Where we work We work in the Asia Pacific region where two thirds of the world’s poor live.
We use a combination of factors to select the countries where we operate. These include their level and distribution of poverty, accessibility, the safety and health of our staff, and the local and financial environment.
For our Good Return loan program to operate smoothly, it is necessary that foreign exchange controls do not hamper free transfer of payments. In mid 2015, the Good Return program is active in six countries: Cambodia, Indonesia, Nepal, the Philippines, Fiji and Tonga.
Partners
Population (millions) 14.1
% population living at <$2 per day (PPP) 56.5%
Over the year we have also delivered projects in Laos and the Solomon Islands that seek to improve rural livelihoods among the poorest and most marginalised through access to finance and income generation opportunities.
U.N. HDI rank (Human Development Index)
% with FSP accounts (age 15+) 22%
CAMBODIA
CMA, TPC, WEI, plus 7 FSP’s
FIJI
SPBD
0.9
No data
100
No data
INDONESIA
CUKK, WEI
240
50.6%
124
36%
LAO PDR
WEI, VFI
6.2
66%
138
No data
NEPAL
CMF + 2 FSP’S
29.0
56%
145
34%
PHILIPPINES
SECDEP
93.2
22.62%
112
31%
SOLOMON IS.
CBSI
0.6
No data
157
No data
TONGA
SPBD
0.1
no data
95
No data
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Our partners Microfinance partners
Sector partners
Good Return collaborates with microfinance institutions (MFIs) in the Asia Pacific to apply funds raised in Australia to improve the lives of the clients. We choose our partners after a thorough selection and due diligence process. We assess their financial viability as well as social performance, because both are important if they are to share our vision of reducing poverty.
Cambodia: Cambodia Microfinance Association (CMA) Cambodia is a key country for Good Returnâ&#x20AC;&#x2122;s program agenda. Building on the success of our association with LOLC, we have established a new partnership with the CMA to roll out the CAFE Initiative (Consumer Awareness & and Financial Education) program to its members.
LOLC, Cambodia
Indonesia: Solidaridad, Stichting DOEN Foundation, Hivos.
LOLC (known as TPC until a change of ownership in late 2014) was established in 1994. It has a vision of providing the poor with the opportunity to transform the lives of their families and communities. LOLC now serves 180,000 clients through 51 branches.
SECDEP, Philippines
St. Elizabeth Community Development Program (SECDEP) is based in Iloilo City. Good Return helps SECDEP deliver financial education and business training to its clients, and also finance for sustainable energy products, such as home solar power systems and fuel efficient cook stoves.
Nepal: Regional Microfinance Development Centre, Centre for Microfinance.
Responsible Microfinance: Smart Campaign, Social Performance Task Force, Grameen Foundation and its Progress out of Poverty Index (PPI). World Education Inc: We work in Cambodia, Indonesia, Laos, and Nepal with affiliated units of our founding member, World Education Inc.
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.
CUKK, West Kalimantan, Indonesia We began our relationship with Credit Union Keling Kumang (CUKK) in 2012. From humble beginnings, the members of CUKK have grown and now number over 110,000.
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.
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Feet on the ground Our Field Support Officer Program This year marked the second year of our Field Support Officer (FSO) program. We placed eight skilled volunteers with our partners in Fiji, Tonga, Cambodia, Indonesia and the Philippines for a period of 12 months. The program has continued to provide invaluable support for project management and coordination, relationship building with our partners, support for our Technical Leads and public outreach through blogs and social media.
”Our FSOs are a real asset to the Good Return team and provide wide-ranging support to our field work and engagement with partners. From monitoring training activities in remote villages, to supporting negotiations with national regulators, all while working with a diverse team across the Asia Pacific region, it has been a fantastic year!” – Shane Nichols, Program Director
Bridget Martin : Indonesia
Heather Beeston : Indonesia
Diana Tjoeng : Cambodia
Salla Mankinen : Cambodia
Debra Allan : Tonga
Catherine Sandow : Philippines
Esther Bates : Fiji
Victoria Norris : Roaming
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Wheels on the road Pedal to End Poverty March 2015 In March 2015, five intrepid Good Return supporters set off for Cambodia to participate in our ‘Pedal to End Poverty’ cycle challenge. They biked more than 400km, through stunning countryside, bustling towns and friendly villages, ending up in the magnificent Angkor Wat on International Women’s Day. A great insight for the team was to sit alongside women villagers in the financial education classes made possible by Good Return donors. They saw how this training can empower people to improve their lives, while experiencing day to day life and culture in this beautiful country. Funds raised by our wonderful Pedal to End Poverty cyclists will support future projects in Cambodia.
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“The enthusiasm we witnessed at the financial literacy classes was very evident ... We visited some of the businesses that had been established or furthered with micro loans, eg. a field sown with eggplants to go to market”.
It was a unique experience I would never have wanted to miss. To have contributed to a charity that looks to better the circumstances of our neighbours through skills and education will, I think, provide the greatest value to ensure sustainable future prosperity and happiness. Elizabeth Cameron, Pedal to End Poverty trip participant.
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CAFE Initiative CAFE (Consumer Awareness & Financial Empowerment) builds on the sector’s growing interest in extending consumer protection and inclusive microfinance to more people. It also harnesses global efforts such as the Smart Campaign and the Universal Standards of Social Performance to encourage institutions to build clients’ financial awareness and capability, and ultimately improve household wellbeing.
Shared Responsibility
The CAFE initiative is unique because it intentionally joins financial service providers (FSPs) with consumers, encouraging them to work together, and through an interactive process to ensure responsible financial inclusion, consumer protection and capability development.
Two delivery models: CAFE Accelerator
This embeds key messages into existing client communication and product delivery channels, targeting all clients.
CAFE F2F (Face-2-Face)
This targets training interventions for the most vulnerable people, supporting them to develop mindful money management behaviours.
CAFE is being implemented through partnerships with national microfinance associations in Cambodia and Nepal. The model is being piloted with a selection of FSPs in each country, prior to any decision to scale it up across the region.
PILOT PHASE 3 PILOT PHASE 3 PILOT PHASE 3
+ Core Components:
Partnerships Local capacity building Data driven decisions Use of Industry standards (PPI and Smart Campaign) Behaviour change objective Unique merging of consumer protection and financial education Exploration of unique feedback loops between consumer and provider
PILOT PHASE 2 PILOT PHASE 2 PILOT PHASE 2 PILOT PHASE 1 PILOT PHASE 1 PILOT PHASE 1
Multi country multi phased pilot (Cambodia and Nepal). Country relevance and contextualisation. Iterative learning and design evolution. Build ‘Proof of Concept’.
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The Banker Fua Kulitapa Centre Manager for SPBD Tonga Fua is a great inspiration to the borrowers of SPBD Tonga. As Centre Manager at SPBD Tonga (Good Return’s finance partner) she spends each day at borrower centres collecting loan payments, processing new loans and training clients in money management. Watching Fua deliver training sessions, borrowers are inspired by her vision and look to her for advice and support. Fua uses a cash flow diary herself to record her income and expenses at home, a practice she encourages her clients to adopt. “The women that I meet and talk with every week are what keeps me going. I know that my job is to help them, and hearing about their successes is what really makes this job worthwhile.”
The Borrower Virisilia- Naiyaru - Market Vendor After falling sick, losing her job and with a family of four to care for, Virisilia was struggling to make ends meet. “I heard about SPBD so I asked myself if I have what it takes to run a business” After getting her first loan, she started her business from home - making jam and bread to sell in the village. With her second loan, she expanded her business and began selling traditional drinks. From these small successes and with financial coaching from SPBD and Good Return, she gained confidence and with subsequent loans started her current business selling fresh fruit, vegetables and crops. “It’s been a life-changing exprience” she says. Access to financial resources and training, along with her resilient attitude have made her an inspiration for her community.
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The Trainer Robby- Farmer Field School Trainer Robby is a trainer in the Farmer Field School program in Indonesian Borneo. Robby delivers training programs to smallholder farmers, helping them to develop more sustainable farming practices and improve crop yield. The Farmer Field School program focuses on experiential learning and this is one of the reasons why Robby thinks it’s a great program. Most days Robby works between 12 and 14 hours. He travels for hours by motorbike through muddy jungle roads to deliver training to farmers in their own plantations. “I first became a trainer because I wanted the opportunity to meet lots of people. I really like having discussions with different people because I always learn something new. Talking to farmers is definitely my favourite part of my job. It’s really important that farmers in the program are learning by doing.”
The Trainee Moun Sarom - Cambodia Moun Sarom is a participant in the Learning for a Better Life program in Takeo province, Cambodia. The financial education program is delivered by dedicated village trainers and is available to everyone in the community. Each week women learn about formal financial services and are coached in houeshold budgeting. Moun Sarom has been attending classes in Takeo province and says this: “I am interested and very happy to join this training because I gain knowledge about how to manage money, savings, cash flow tracking and planning for the future. This training helps my financial management to be better.”
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Our values • Partnership • Sustainability • Equal opportunity • Integrity • Learning • Relevance These values guide the way we engage with other organisations, assess new opportunities, evaluate outcomes, and make an impact. Partnership: we work in partnership with organisations overseas and in Australia. Our partnerships are flexible and able to evolve over time, based on mutual interest and trust. We form partnership agreements based on common objectives and mutual respect, and jointly resource and implement these.
Sustainability: Our programs are intended to effect positive social, economic and/or environmental change that continues into the future. We build the capacity of our partners and individuals to increasingly manage their own development and resources.
Integrity: We demonstrate the highest level of ethics in our work and behaviour in accordance with the ACFID Code of Conduct. We promote a culture of transparency, fairness, equality, professionalism and accountability, guided by our organisational values.
Equal opportunity: We address disadvantage by promoting equal economic opportunity for all, with a focus on those living in poverty (<$2/ day PPP) and those identified as being disadvantaged or excluded in the local economic context, including women and people with disability. We identify economic disadvantage through research, protect economic rights through consumer protection, and promote equal economic participation through targeted programs.
Learning: We strive to be a learning organisation that embraces experimentation, open reflection and continuous improvement. We innovate and learn through projects, partnerships and people, and use these learnings to inform future activities. Relevance: Our work addresses identified needs and is designed to maximise results and lasting benefits for our partners and those they serve. We work with partners and their clients to identify needs and desired outcomes, and assess progress towards these.
Cross-cutting issues Gender Equality
Disability Inclusion
Environment
We promote gender equality as an essential first step to improving the lives of all. History demonstrates how better education and economic opportunity for girls and women are critical to any country’s development. We recognise gender roles in different cultures, but aim to reduce disparities as a means of empowering women, and to achieving responsible financial inclusion.
Disability is a global development issue. Some 80% of those with disabilities live in developing countries, where they represent the 20% poorest of the poor. Disability and poverty reinforce one another. To address this challenge, we will engage with local Disabled People’s Organisations who are best placed to help those in the communities where we work.
We ensure that our programs are compatible with a sustainable natural environment. We encourage partners to adopt a social performance agenda that includes awareness of and protection of natural resources. We seek to minimise our own environmental footprint and to limit our impact on climate change.
Child protection We adopt a zero tolerance approach to child abuse, including trafficking, pornography or other types of exploitation. We monitor all the activities we support, to ensure that at minimum they do no harm to children. We educate our partners about risks to children, and pilot initiatives to address them.
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Governance Legal Status
ACFID Code of Conduct
World Education Australia Ltd (WEAL) is a public, voluntary, not-for-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). The Board has three sub-committees: the Audit Committee, the Nominations Committee, and the Remuneration Committee.
Board Meetings The Board met four times in the financial year: in September and November 2014, and February and May 2015.
VALE David Kahler
Sadly, David Kahler passed away in September 2015. He joined World Education Inc in 1985, and in 2003 became a founding director of WEAL. David was an unwavering champion of education who found creative ways to encourage literacy in all its forms. We will miss David dearly. But his passion, spirit and devotion to the cause of creating a just and equitable world remains firmly entrenched in our organisationâ&#x20AC;&#x2122;s DNA.
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Directors’ Report Your directors present this report on the company, and its controlled entity World Education Australia Overseas Relief Fund (WEAORF), for the financial year ended 30 June 2015. Below are listed the names of the company’s directors in office throughout the financial year until the date of this report (unless otherwise stated), their specific roles, qualifications and experience: Neild McIntosh, Chair
B.A. (Actuarial Studies), M.A. (International Development)
Neild is a non-executive director of Equigroup (a subsidiary of CBA).
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.
Margaret Wright, Treasurer
Damien Woods
Margaret is Head of Strategic Partnerships NNNCo. She is a former practice lead partner at KPMG, Executive Director Macquarie Bank, Director National Breast Cancer Foundation and Member Auditing Standards Board in Australia.
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.
Pamela Jonas
Guy Winship, CEO
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.
Guy is a development expert who has worked in Africa and the Asia and the Pacific. He consults and advises governments and NGOs on microfinance, institutional development, public policy and vocational training.
Gordon Cairns
D. James MacNeil,
Gordon has had an executive career with several global companies, latterly as CEO of Lion Nathan. He now acts as chair of Woolworths and Origin Energy, and as a non-executive director of Macquarie Group and Quick Service Restaurants.
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.
Kathryn Jordan
David Kahler (deceased) B.Sc, M.A., M.Ed, Ed.D.
Kate is a Corporate and Mergers & Acquisitions lawyer. She is the Deputy Chief Executive Partner of Clayton Utz.
David Kahler acted as alternate director for James MacNeil. David brought to this role his 40 years of exerience as an organisational development and education specialist, principally with World Education Inc.
B.Com., FCA
B.A. (Hons), M.A. (Public Policy & Management)
M.A. (Hons)
B.Com, LLB, LL.M
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William Pigott
B.Sc., MBA
B.Soc.Sc., B.Com (Hons), M.Sc. (Town & Regional Planning)
B.A., M.Ed., Ed. D.
Concise financial report for year ended 30 June 2015
Independent Audit Report
Auditorâ&#x20AC;&#x2122;s Independence Declaration
World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au
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Concise financial report for year ended 30 June 2015
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 Consolidated Group 2015 $
Consolidated Group 2014 $
ASSETS Current Assets Cash and cash equivalents
2,204,638
1,320,361
Trade and other receivables
102,292
11,710
Other financial assets (loans)
209,316
229,154
Other current assets
105,698
63,384
Total Current Assets
2,621,944
1,624,609
Non-Current Assets Property, plant and equipment
24,530
29,912
Intangibles and capital work in progress
88,310
60,711
Total Non-Current Assets TOTAL ASSETS
112,840
90,623
2,734,784
1,715,232
LIABILITIES Current Liabilities Trade and other payables Special purpose funding Other financial liabilities (loans) Provisions Total Current Liabilities
383,356
124,580
1,136,342
409,895
511,435
476,511
78,824
66,697
2,109,957
1,077,683
Non-Current Liabilities Provisions
15,247
11,107
Total Non-Current Liabilities
15,247
11,107
2,125,204
1,088,790
609,580
626,442
TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity
-
-
Reserve for designated purpose
625,696
624,881
(Deficit) Retained earnings
(16,116)
1,561
TOTAL EQUITY
609,580
626,442
2014-15 Revenue Investments and other income Overseas Grants
10% Australian Grants
7%
2014-15 Expenditure Donations and Gifts - Monetary
18%
Accountability and Administration Fundraising
9% 9%
Community Education
15%
1%
81%
49% DFAT Grants
World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au
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International Programs
Concise financial report for year ended 30 June 2015 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015 Consolidated Group 2015 $ 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 (Shortfall) / excess of revenue over expenditure Income tax expense (Shortfall) / excess for the year Other Comprehensive Income TOTAL COMPREHENSIVE (LOSS) / INCOME
Consolidated Group 2014 $
492,061 420,577
443,746 247,763
1,341,615 403,330 275,792 17,232 186,311 3,136,918
554,689 581,023 101,650 26,805 353,053 2,308,729
1,505,503 708,856 25,679
750,904 588,862 28,040
182,098 77,457 233,610 420,577 3,153,780 3,153,780 (16,862) (16,862)
119,745 29,453 207,825 247,763 1,972,592 225,028 2,197,620 111,109 111,109
(16,862)
111,109
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 FOR THE YEAR ENDED 30 JUNE 2015 Retained earnings $
Reserve for designated purpose $
Total $
Consolidated Group Balance at 1 July 2013 Items of other comprehensive income Excess of revenue over expenses Amounts transferred (to) / from reserve Balance at 30 June 2014 Items of other comprehensive income (Shortfall) / excess of revenue over expenses Amounts transferred (to) / from reserve Balance at 30 June 2015
978
514,355
515,333
-
-
-
111,109
-
111,109
(110,526)
110,526
-
1,561
624,881
626,442
-
-
-
(16,862)
-
(16,862)
(815)
815
-
(16,116)
625,696
609,580
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
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Concise financial report for year ended 30 June 2015 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015
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 Deposits 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 in cash held Cash at beginning of financial year Cash at end of financial year
Consolidated Group 2015 $
Consolidated Group 2014 $
3,307,440 103,367 (2,520,635) 17,232 907,404
1,620,099 352,219 (1,970,562) 26,805 28,561
(5,654) (63,138) (9,097) (77,889)
(57,751) (57,751)
34,924 19,838 54,762
11,274 44,554 (838) 54,990
884,277 1,320,361 2,204,638
25,800 1,294,561 1,320,361
TABLE OF CASH MOVEMENTS FOR DESIGNATED PURPOSES FOR THE YEAR ENDED JUNE 2015 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 DFAT SPSL Laos project
-
653,891
(653,891)
-
-
1,654,010
(618,508)
1,035,502
Skills For Life
241,078
182,856
(365,602)
58,332
Education & Microfinance Expansion
104,541
-
(104,541)
-
-
234,052
(206,813)
27,239
Small farmers livelihoods Nepal Gorkha earthquake appeal
-
12,197
(12,197)
-
64,276
38,967
(87,974)
15,269
409,895
2,775,973
(2,049,526)
1,136,342
Good Return
435,792
549,790
(439,288)
546,294
Total for designated purposes
845,687
3,325,763
(2,488,814)
1,682,636
Other
Total for other non-designated purposes TOTAL
474,674
342,426
(295,098)
522,002
1,320,361
3,668,189
(2,783,912)
2,204,638
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
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Our supporters
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
Regional
Australian Aid, Australian Communities Foundation, Australian Council for International Development (ACFID), Bill and Jane Gross, Brown Box, Clare Murphy Fund, David and Collen McIntosh, Family Frank Foundation, The Greatorex Foundation, Harvest the Net, John and Dora English, Judith Grant, Macquarie University, ME Bank, Olbia Funds Management Pty Ltd., Optimiste Wines, Salesforce.com, SmartGroup, Supporter360, The TAG Family Foundation, Thinktank, Travel and Associates â&#x20AC;&#x201C; Press & James, XE.com., Xplore for Success, Zvi & Carmela Yom-Tov.
Agence Francaise de Developpement (AFD), AMK (Cambodia), AMRET (Cambodia), Asian Development Bank, Central Bank of the Solomon Islands, Chamroeun (Cambodia), Kredit (Cambodia), Grameen Foundation, LOLC Cambodia, Met Life Foundation, Microfinance Pasifika Network, Sahara Nepal, SAMIC (Cambodia), SLBBL (Swarojgar Laghubitta Bikas Bank Limited), Sathapana (Cambodia), Social Performance Taskforce, Smart Campaign, Vision Fund Cambodia, World Education Inc.
Corporate Partners Accenture Australia Foundation, Accenture, Clayton Utz, Deloitte Foundation, Deloitte, Origin Foundation, Origin Energy, and the Westpac Group.
Ambassadors Ann Devine, Diana Ryall, Francesca Rush, Heath Francis, Lisa Roberton, Paul Mitchell, Richard Grimmond, Shrav Malkani, and Tharani Jegatheeswaran.
Thank you
> To our friends and individual donors
whose generosity and support is vital to the success of our mission.
> To our exceptionally skilled volunteers. Their passion and commitment is celebrated every time an individual is empowered to break the cycle of poverty - for good. 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.
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Our vision A world without poverty
where people have access to resources and opportunities to improve their lives.
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
I
worlded.org.au goodreturn.org.au