World Education Australia building skills, changing lives
Annual Report 2013
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Contents We believe no one deserves a life of poverty. Our Vision is a world without poverty where people have access to resources and opportunities to improve their own lives.
Our Mission Through microfinance and skills development we enable the poor to improve their incomes and change their lives forever.
Microfinance is 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 Building Literacy and numeracy are essential if human beings
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 saving options. Livelihood skills are the vocational and technical know-how that enhance a person’s productivity.
Our Accreditation The objective of Australian Aid (formerly AusAID) is to assist developing countries to reduce poverty and achieve sustainable development. World Education Australia has full accreditation from Australian Aid. 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 also 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 ............................ Where We Work & Key Activities ................... Our Partners ............................................... Update on Good Return ............................... Sustainable Livelihoods .............................. Sustainable Energy ..................................... Vanmai Savings & Credit Union Update ........ 2
3 4 5 6 7 8 8
Social Performance Management ................ Our Environmental Footprint ....................... Australian Programs ................................... Governance ................................................ Board of Directors ....................................... Concise Financial Report .............................. Supporters, Management, and Staff .............
9 10 11 12 13 14 18
Letter from the Chair & CEO World Education Australia Turns Ten As this letter is written, World Education Australia Ltd (WEAL) celebrates its tenth anniversary – and what a remarkable decade of growth it has been. From a start-up development agency to today’s leading provider of financial and livelihood training to the poorest in our region, we are proud of the contribution we have made in achieving our vision of a world without poverty. Even looking back on just the past year, there is much to celebrate.
Good Return Milestones A milestone was reached in June, when Good Return funded its 5,000th borrower, having disbursed over $1m in loans. In its three year life, this online platform has become our public face, engaging and raising money from generous Australians. A portion of their funds is initially advanced as microloans to clients of our microfinance institution partners, and repaid funds are used for training and other development activities. Then the funds work even harder, earning matching grant support from AusAID to pay for our core development programs. Good Return offers the public a way to combine financial education and microfinance into powerful anti-poverty tools. By engaging employees, it also gives companies a great way to get involved in fighting poverty. Looking ahead, we plan to enhance the Good Return experience. By varying fundraising options, the team hopes to raise more from corporate and individual sponsors, and so to fund more financial literacy and livelihood training.
Building Capacity The success of our work is measured by results in the field. In six countries across Asia Pacific, the team continued delivery of our unique curriculum of education for the poor. In the year 5,637 participants completed various courses in financial literacy and small business management. These skills enable disadvantaged, often illiterate women to earn a sustainable income, and break their families out of the cycle of poverty The team extended its capacity-building remit to include monitoring of microfinance institution social performance. This new aspect of microfinance requires institutions to look beyond just financial results. It calls for robust client protection processes, more transparency in how credit is priced, and improved service to those excluded from fair and affordable financial products. We see this as an increasingly important part of our work with partners. We are fortunate in being able to tap the enthusiasm and skills of our dedicated team of staff, volunteers, directors, and partners. To all of them, we offer grateful thanks. We look forward to their continuing support as together we pursue our shared vision of a world without poverty.
Neild McIntosh, Chair
Guy Winship, CEO 3
Nepal
Laos
Philippines
Cambodia
Kalimantan, Indonesia
Fiji
Tonga
Australia
Where We Work + Key Activities Australia PROGRAMS Good Return Skills For Life Sustainable Livelihoods Sustainable Energy ConnectEd KEY ACTIVITIES Basic literacy & numeracy Financial literacy Livelihoods skill building Training team capacity building Microfinance Renewable energy technologies Social Performance Management Sustainable agriculture MFI Capacity building Youth employment training
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Cambodia
Fiji
Indonesia
Laos
Nepal
Philippines
Tonga
Our Partners Microfinance Partners World Education Australia works with local microfinance institution (MFI) partners to ensure funds raised through Good Return assist the poorest people in the Asia Pacific region. We conduct a thorough selection and due diligence process with all partners. We assess the integrity of the microfinance institution and look for it to share our commitment to transparency and helping the poor.
Major Corporate Supporters World Education Australia receives significant support from these organisations. We are very grateful for their assistance.
Nirdhan Utthan Bank, Nepal Nirdhan Utthan, the bank “for uplifting the poor,” was established in 1998. It is a regulated institution and is now Nepal’s largest microfinance development bank, serving exclusively women clients in rural areas.
SECDEP, Philippines St. Elizabeth Community Development Program (SECDEP) serves its members on the island of Panay. SECDEP provides microfinance, education, insurance, and health-related programs to its women clients.
SPBD, Fiji and Tonga South Pacific Business Development (SPBD) runs a network of microfinance institutions in Fiji, Samoa, and Tonga. They are committed to eradicating poverty by giving women in villages the opportunity to start and grow sustainable enterprises. Of the total loans distributed, 99% go to women, 80% to clients in rural areas, and 40% to single mothers.
CUKK, West Kalimantan, Indonesia We began a relationship with Credit Union Keling Kumang (CUKK) during the year. Keling Kumang refers to a folk story about a ‘strong husband and strong wife’ who work together to build a prosperous community. From humble beginnings, CUKK now has over 138,000 members.
TPC, Cambodia Thaneakea Phum Cambodia (TPC) is a microfinance institution with a social vision and a business orientation. TPC seeks to provide the poor with economic opportunities that transform the quality of their lives and communities. Established in 1994, 95% of clients live in rural areas, 85% of them women. More than 40% of these borrowers live below Cambodia’s national poverty line.
Other Partners Australia Traditional Credit Union (Northern Territory), YWCA NSW
Indonesia Solidaridad, Stichting DOEN Foundation
Across the Region 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 The Good Return website is designed to engage Australians to learn more about poverty in our backyard – the Asia Pacific, where two thirds of the world’s poor live. We connect Australians to individuals who need loans to lift themselves out of poverty.
Good Return’s Achievements
This year has seen continued growth of the Good Return community. By its end, we reached the milestone of funding 5,000 women with microfinance loans. We ran three main campaigns: Anti-Poverty Week, Christmas, and International Women’s Day. This year also saw our first major fundraising event at the White Rabbit Gallery in Sydney, and the launch of our Career With Purpose project.
5,068 fully funded loans (98% to women) Up to 95,000 family and community members benefit through flow-on effects
Cumulative to 30 June 2013
We strive to educate and engage Australians on issues such as microfinance, financial education and inclusion, sustainable energy, and other areas related to poverty alleviation. We do this through our blog, Facebook, Twitter, LinkedIn, and other social media channels. We also maintain a YouTube channel which features videos about what, where, and with whom we work. Additionally, we give presentations and conduct workshops with our partners and at universities.
19,106 participants in skills training and financial literacy classes (93% women)
Good Return has become a meaningful and personal way for Australians to make a difference in fighting poverty.
99.9% of all loaned funds repaid
1,188 microfinance institution staff participated in capacity building training
Ema Tlkoimelaya
Good Return’s 5,000th Borrower Ema Tikoimaleya lives in Loa, a village at the end of the Hibiscus Highway in a very remote part of Fiji’s second largest island, Vanua Levu. Seeing her neighbours drive more than 40 km on dusty dirt roads to the next (equally small) town to buy petrol gave her the idea of starting a local distribution service. Ema used her loan to buy a supply of petrol and containers, and with these set up her own roadside outlet. The local fishing industry benefits from having petrol nearby, and even the local carrier (bus) drivers buy it! At 25, Ema is a mother of two youngsters. She is keen for her business to succeed, so that she can help support her family as they grow up and start school. 6
Sustainable Livelihoods World Education Australia works to ensure that access to finance creates positive outcomes for the poor. Credit, when used well, can help a family escape poverty. But to succeed in any enterprise, people need the basic business knowledge and skills to manage money effectively.
Program Highlights
We identify training needs and build the capacity of local trainers to deliver financial education programs that focus on good money management. Attendees learn to: • Assess their own financial circumstances and priorities • Seek out and analyse product and service information • Choose products and services appropriate to personal circumstances • Protect their rights and interests and know their responsibilities • Set financial goals and follow a savings plan • Build their assets
5,637 participants in skills training and financial literacy classes during the year, for a cumulative total of 19,106 since 2010 (93% women)
Active in 6 countries: Cambodia, Fiji, Indonesia, Nepal, Philippines, and Tonga
Completion rate of training courses is 79%
Generating sustainable income requires a range of skills. We work with local partners to develop their clients’ vocational and business skills. We provide training in: • Small business management: including how to assess the market, create a business plan, manage finances, and market products and services; • Sustainable agriculture: using proven methods to improve yields and returns in an environmentally sustainable manner. In practical terms, trainees are better able to manage their money from both a household and a business perspective – meaning they are more informed and can use services effectively to improve their lives.
Kalati Wolgram
Financial diary advocate in Tonga Kalati’s income comes from a small shop in a roadside tent, and remittances from her daughter in America, as Kalati takes care of her children. She participated in a class about keeping financial diaries of income and expenses. Before keeping this diary, Kalati didn’t realise how much money she received from her daughter, or where she spent it. Now, Kalati’s financial diary helps her keep track of these funds, and has inspired her to improve her business with a permanent shop near her home. “Even my grandchildren know that I am making a record of their expenses,” she says, “because I usually write at night while the kids are doing their school work.” 7
Sustainable Energy Program Since April 2010, the Sustainable Energy program has facilitated access to energy efficient technologies among poor households. The program was funded by the Accenture Australia Foundation in the Philippines, Nepal, Cambodia, and Indonesia, and by the Origin Foundation in Tonga and Fiji.
Program Highlights
Some of the benefits of the renewable energy technologies are: • Less spent on fuel such as charcoal and kerosene, and on lighting from candles and batteries. This ranges from a savings of $2 to $4 a month from a fuel efficient stove, and $3 to $5 from solar lantern powered electricity. Biogas from animal waste also cuts cooking fuel costs.
75% of surveyed clients reported being satisfied or highly satisfied with the products
•
Improved household air quality, a result of less fumes from charcoal stoves and kerosene lamps, to reduce eyesight and respiratory problems.
•
Elimination of fire risk.
•
Reliable lighting for use in emergencies, and for needs such as mobile phone charging.
Furthermore, the program has prevented the purchase and disposal of approximately 100,000 batteries to date. Looking ahead, every year of solar power means a further 75,000 batteries will not be needed. The program concluded in June 2013, having been rolled out to all interested partners. The distribution systems established will continue to operate in the Philippines, Nepal, and Indonesia.
Update on Vanmai Savings & Credit Union, Laos In late 2010, Vanmai Savings & Credit Union (SCU) was founded in Laongam District, Saravane Province, Laos. ‘Vanmai’ means ‘new day,’ and the savings and credit union represents the dawn of a sustained effort to provide the rural poor with access to local financial services. Vanmai SCU was conceived of in response to the lack of savings and credit services available to rural households in Laos. Recognising the importance of access to finance for economic development and poverty reduction, the goal was to create a locally owned and managed institution that offered rural villagers a safe place to save and to borrow to invest in their livelihoods.
Program Highlights • •
• • 8
Increase in membership from 657 to 805 members during the year. 16 Board and staff members received training on topics including Leadership and Delinquency Management, Internal Control and Audit and Customer Service. Agricultural loan risk assessment and external audit conducted. Program Manager Colette McInerney relocated to Laos in January 2013 to oversee this partnership and other activities in the region.
2,042 products sold over 3 years (96% to women)
305 network actors trained (84% women) 106 village agents selling renewable energy products (100% women); some agents report an increase in status in the community as respected businesswomen Total carbon emission reduction estimated at 700 tonnes, future savings estimated at 617 tonnes CO2 per year
Social Performance Management Social Performance Management (SPM) is defined by the Social Performance Task Force (SPTF) as “the effective translation of an institution’s mission into practice in line with accepted social values.” Our SPM program strengthens the capacity of our partners to deliver and measure positive benefits to their clients. The goal is for partner institutions to become recognised as leading providers of sustainable and responsible financial services that contribute to poverty reduction. Good Return’s SPM program has three components: 1. Poverty measurement and reporting 2. Financial consumer protection 3. Adoption of Universal Standards for Social Performance Management (USSPM) Social Performance Management provides microfinance institutions with a management and monitoring framework to achieve goals of poverty alleviation, income enhancement, and improvement of household living standards. It offers benchmarks just as accounting data is used to measure financial performance. We work with a variety of stakeholders including national microfinance associations, financial service providers, and government agencies. Our focus remains client-centric, as the purpose of SPM is to create positive change in the lives of the poor. For more information, visit: • Progress out of Poverty: www.progressoutofpoverty.org • Social Performance Task Force: www.sptf.info • Smart Campaign: www.smartcampaign.org
Program Highlights Poverty measurement and reporting • Revised Nepal’s Progress out of Poverty Index (PPI) – an objective poverty scorecard – and launched it at the 2013 Nepal Microfinance Summit • Piloted the revised PPI with 19 financial service providers in Nepal Consumer protection • In-depth client protection assessments of partners in Indonesia, Cambodia, and the Philippines • Established a partnership with the Smart Campaign to promote and implement the Client Protection Principles Adoption of USSPM • Agreement with the Microfinance Centre of Poland to raise awareness of the USSPM • Joined the Social Performance Working Group Asia • Pilot tested HIVOS’ new Green Performance Agenda Toolkit, developed by TriodosFacet • Capacity building of partners’ board members and senior management on poverty measurement and reporting; financial consumer protection; social performance management; and USSPM
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Our Environmental Footprint Good Return is committed to promoting sustainable practices with all our global partners, and strives to constantly improve our own environmental performance. This year we have measured our organisational footprint so that we can target areas for improvement. To estimate Good Return’s footprint all Scope I & II Greenhouse Gas emissions were accounted for, alongside other key indicators. The below figures are for our national office only. 2011-12
2012-13
% Change
Electricity
10.4
13.8
34%
Air Travel
53.4
55.9
4%
11,790
15,730
34%
80% of staff use public transport to get to work
CO2 Emissions (tonnes)
Scope II Energy Consumption Electricity (kWh)
Sustainable contractors are always chosen first for events
As Good Return continues to expand, we expect to see an increase in our total footprint. A strong focus on minimising our environmental impacts across our activities will help to ensure the intensity of our emissions – our footprint compared against the size of our organisation – stays as low as possible. Low emissions intensity combined with the purchase of ethical carbon offsets will ultimately help us achieve our goal of becoming carbon neutral by 2017. Additionally, by facilitating access to energy efficient technology among poor households, the Sustainable Energy Program has achieved an average reduction of 617 tonnes of CO2 per year. The graph below represents the average tonnes of CO2 saved per year per technology by the Sustainable Energy Program, after 3 years of operation.
Power saving culture by all team members in the office
Other technologies 10.9 tonnes CO2 2% Solar lanterns 14.2 tonnes CO2 2%
Biogas 80.9 tonnes CO2 13%
Improved cook stoves 128.6 tonnes CO2 21% Fuel efficient stoves 382.4 tonnes CO2 62%
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100% recycled paper used in office
Australian Programs ConnectEd with YWCA NSW World Education Australia in partnership with YWCA NSW, World Education Inc, and the Alcatel-Lucent Foundation are working to implement ConnectEd, a program that addresses the factors limiting the work and life options of disadvantaged youth in New South Wales. The program aims to reach 800 young people who are at risk of disengaging, or have already disengaged, from education. The program utilises a range of interventions to equip students with skills to enter the world of work. The training courses cover 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 can participate in mentorship opportunities with Alcatel-Lucent staff through career workshops. These on-site workshops focus on giving youth an understanding of a real work environment. Alcatel-Lucent staff provide support as mentors in financial literacy workshops, which aim to equip young people with knowledge on dayto-day money matters, from financial scams to mobile phone plans.
Program Highlights 446 youth participated in ConnectEd activities throughout the year. 109 out-of-school youth participated in programs designed to prepare them for the world of work. 204 youth received technology training ranging from internet research to résumé writing and Microsoft Word proficiency.
The program also seeks to provide work experience and work placement opportunities for out-of-school youth already disengaged from education.
Financial Literacy with the Traditional Credit Union Australia’s Aboriginal population experiences conditions of economic and social disadvantage. Living with unemployment, inadequate housing, and low levels of education, a majority of Aboriginal Australians are faced with great poverty. World Education Australia is committed to addressing the issues of poverty and access to financial services here in Australia. We have partnered with the Traditional Credit Union (TCU) in the Northern Territory to deliver financial literacy training to its members. TCU has over 12,000 members and is headquartered in Darwin. It currently operates 12 full service centre offices in very remote communities, and two service centres in Alice Springs and Katherine in the Northern Territory.
Program Highlights Development of Money$tories to enhance delivery of the Financial Literacy Project by using storytelling to convey key financial literacy messages. Training of Traditional Credit Union staff trainers to deliver the Financial Literacy Project.
The training will equip members with the knowledge and skills to understand and use banking services, save towards a goal, use credit wisely, and manage their income and expenses. The training is delivered by Traditional Credit Union Money Mentors, who were trained by World Education Australia using materials developed with WEAL support.
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Governance Legal status
ACFID Code of Conduct
Board of Directors
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.
The Board has ten members, which includes the Chief Executive Officer and an Alternate Director.
World Education Australia Overseas Relief Fund
The Board has three subcommittees: Audit Committee, Nominations Committee, and Remuneration Committee. These Committees meet on an as-required basis.
World Education Inc. WEAL shares its name and philosophy with its Founding Member, World Education Inc (WEI), a not for profit, secular, voluntary organisation based out of Boston, USA. WEI was founded in 1951 and provides training and technical assistance through non-formal education around the world. WEI and WEAL operate independently of each other, and all dealings are conducted on arms length terms.
WEAL is the Trustee of controlled entity World Education Australia Overseas Relief Fund (WEAORF), which holds Overseas Aid Deductible Gift Recipient status from the Australian Tax Office. The objective of WEAORF is to support economic and social development programs to improve the lives of the poor in the Asia Pacific region.
Ritadevi Niraula
is happy she can grow her business. Ritadevi and her husband Jitbhadur run a small shoe shop in their village. It makes them a modest income, but only if they have enough money to restock on the popular items that they sell. They wanted to expand their range of products, and so took out a loan of 40,000 rupees ($430 AUD) to restock and for working capital. They are now able to earn 10,000 rupees ($110 AUD) a month, enough to cover all of their family’s living expenses and also put a little aside in savings. This was something that Ritadevi was not able to do before receiving a loan from Nirdhan Utthan Bank (our partner in Nepal). When asked about their plans for the future, Ritadevi and her husband knew exactly what they wanted to do. “We plan to offer a wider range of products, by introducing handbags and belts to meet the demands of the market,” she said. “It is so important for us to be able to access loans when we need it, so that we can grow our business.”
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Board Meetings The Board met four times in the financial year: In September and December 2012, and February and May 2013.
Board Committees
Board of Directors William (Bill) Pigott B.S., M.B., formerly FRACP
Bill is a retired international civil servant. He worked for 21 years with WHO as an education and public health practitioner, latterly as Country Representative in Nepal and Cambodia. He is now involved in community work, such as with Landcare in NSW.
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. As a Vice President of World Education Inc, he maintains oversight of their European programs from his base in Normandy.
Damien Woods B.Sc., MBA
Damien has had a 25 year career 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. Damien was appointed in June 2013.
Gordon Cairns M.A. (Hons)
Gordon has had an executive career with several global companies, culminating as CEO of Lion Nathan Ltd. He serves as a non-executive director of Westpac, Origin Energy, and Quick Service Restaurants. He chairs Origin Foundation, and acts as a senior advisor to Greenhill and McKinsey.
Guy Winship, CEO
James MacNeil, Alternate
Guy is a development expert who has worked in Africa, Asia and the Pacific. He consults and advises governments and NGOs on microfinance, institutional development, public policy and vocational training.
James has worked for World Education Inc since 1999 where he has been involved in education and livelihoods development programs, particularly in Indonesia and India. He is based in Boston where he is Vice President of World Education Inc’s Asia Division.
Kate Jordan
Margaret Wright, Treasurer
Kate is a corporate lawyer with 20 years of mergers and acquisitions experience across a range of sectors including media, telecommunications and financial services. She is the managing partner of the Sydney office of Clayton Utz.
Margaret is a strategic advisor who, with a background in accounting, audit and IT roles at KPMG and Macquarie Bank, now focuses on technology and business process issues. Until recently, she was a board member of the National Breast Cancer Foundation.
Neild McIntosh, Chair
Pamela Jonas
Neild contributes as a nonexecutive member to corporate and not for profit boards, as a director of equigroup (a subsidiary of CBA), and of Can Assist, a charity helping cancer patients in NSW.
Pam has more than 20 years experience in education, training, and employment policy. She has applied her public policy expertise to roles in industry, education and community sectors. Pam works as a consultant and splits her time between Australia and France.
B.Soc.Sc., B.Com (Hons), M.Sc. (Town & Regional Planning)
B.Com, LL.B, LL.M.
B.A. (Actuarial Studies), M.A. (International Development)
Ed. D.
B.Com. FCA
B.A. (Hons), M.A. (Public Policy & Management)
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Concise Financial Report For year ended 30 June 2013
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
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Concise Financial Report For year ended 30 June 2013
Consolidated Statement of Financial Position Consolidated Group 2013 $
ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other current assets Other financial assets (loans) TOTAL CURRENT ASSETS
Consolidated Group 2012 $
1,294,561 3,172 66,637 273,708 1,638,078
1,319,030 34,455 72,827 138,114 1,564,426
40,593 23,556 64,149 1,702,227
11,816 41,758 53,574 1,618,000
158,596 470,904 465,237 35,747 1,130,484
101,112 817,639 304,305 40,275 1,263,331
56,410 56,410 1,186,894 515,333
47,073 47,073 1,310,404 307,596
514,355 978 515,333
306,895 701 307,596
NON-CURRENT ASSETS Property, plant and equipment Intangibles TOTAL NON-CURRENT ASSETS TOTAL ASSETS
LIABILITIES CURRENT LIABILITIES Trade and other payables Special purpose funding Other financial liabilities (loans) Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS
EQUITY Contributed equity Reserve for designated purpose Retained earnings TOTAL EQUITY
Revenue
Investment & other income 25%
Expenditure Donations & gifts Monetary 20%
International Programs 65%
Community Education 2% Fundraising 9%
Accountability & Administration 9% Overseas Grants 7%
Australian Grants 30%
AusAID Grants 18% Domestic Programs 15% Ratios based on the Consolidated Statement of Comprehensive Income (excluding non-monetary items).
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 2013
Consolidated Statement of Comprehensive Income
REVENUE Donations & gifts: Monetary Non-monetary Grants: AusAID Other Australian Other overseas Investment income Other income TOTAL REVENUE
Consolidated Group 2013 $
Consolidated Group 2012 $
400,853 170,828
286,749 244,424
377,726 612,238 135,659 31,832 485,618 2,214,754
289,858 584,277 366,507 57,670 264,363 2,093,848
716,636 487,713 30,996
752,620 429,630 38,405
133,396 26,985 164,129 170,828 1,730,683 276,334 2,007,017 207,737 207,737
87,928 11,047 129,600 244,424 1,693,654 257,542 1,951,196 142,652 142,652
207,737
142,652
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
World Education Australia had no transactions and therefore zero balances in the following categories: Bequests and legacies, revenue for international political or religious adherence promotion programs, expenditure for international political or religious adherence promotion programs.
Consolidated Statement of Cash Flows Consolidated Group 2013 $
Consolidated Group 2012 $
1,179,743 549,441 (1,737,935) 31,832 23,081
1,134,391 206,951 (1,665,867) 57,670 (266,855)
(35,120) (21,170) (18,176) (74,466)
(4,959) (22,395) (597) (27,951)
Good Return - net loans received from the public Good Return - net loans paid to microfinance institutions Repayment of WEI loan Repayment of equipment lease Net cash provided by financing activities
160,932 (135,594) 1,578 26,916
164,889 (21,979) 5,595 (541) 147,964
Net (decrease) in cash held Cash at beginning of financial year Cash at end of financial year
(24,469) 1,319,030 1,294,561
(146,842) 1,465,872 1,319,030
CASH FLOWS FROM OPERATING ACTIVITIES
Donations and grants Customers Suppliers and employees Interest Net cash provided by (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES Property, plant, and equipment Good Return software and website Security deposit Net cash (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
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 2013
Table of Cash Movements for Designated Purposes Cash available at beginning of financial year $
Cash raised during financial year $
Interest $
Cash disbursed during financial year $
Cash available at end of financial year $
DESIGNATED PURPOSES AusAID annual allocation Skills For Life Infuse ConnectEd Education & Microfinance Expansion Small farmers livelihoods Other Good Return - Net loans transactions Total for designated purposes Other cash movement TOTAL
19,598 92,558 53,395 555,716 83,826 12,546 817,639 376,651 1,194,290 124,740 1,319,030
358,128 424,904 56,232 263,873 113,935 17,000 1,234,072 142,329 1,376,401 513,715 1,890,116
31,832 31,832
(377,726) (327,164) (56,232) (305,952) (343,528) (140,659) (29,546) (1,580,807) (127,389) (1,708,196) (238,221) (1,946,417)
190,298 11,316 212,188 57,102 470,904 391,591 862,495 432,066 1,294,561
Amounts indicated as cash raised and cash disbursed during the year for Good Return - Net loans transactions represents net cash balance movements with the program’s public lenders.
Consolidated Statement of Changes in Equity Retained earnings $
Reserve for designated purpose $
Total $
Consolidated Group Balance at 1 July 2011 Items of other comprehensive income Excess of revenue over expenses Amounts transferred (to) / from reserve Balance at 30 June 2012 Items of other comprehensive income Excess of revenue over expenses Amounts transferred (to) / from reserve Balance at 30 June 2013
(62,625) 142,652 (79,326) 701 207,737 (207,460) 978
227,569 79,326 306,895 207,460 514,355
164,944 142,652 307,596 207,737 515,333
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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Supporters, Management, & Staff World Education Australia acknowledges and thanks our partners and supporters for their commitments and 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, AusAID, Australian Council for International Development (ACFID), Custom House, Fern Software Australia, Harvest the Net, Macquarie University, ME Bank, Miss Chu, Nuffnang, Optimiste Wines, PayPal, Salesforce.com, SmartGroup, Sydney Gay & Lesbian Business Association, Travel and Associates – Press & James, and XE.com.
Corporate Partners Accenture Australia Foundation, Accenture, Clayton Utz, Deloitte Foundation, Deloitte, Environmental Resources Management (ERM), Origin Foundation, Origin Energy, the Westpac Group, and WiTH Collective.
Regional Asian Development Bank, Microfinance Pasifika Network, World Education Inc.
Volunteers, Friends, and Donors Anne Bissaker, Australian Communities Foundation, Beck Rolls, Book of Giving / Gabby Cox, Bradley Abbott, Caroline Armitage, Claire Shelvey, David Chappell, Fionnuala Maye, Jackie Range, Jennifer Ross, Lesley Hume, Margaret Campbell, Mark Dawson, Monique Alfris, Natalie Sikand, Paul Griffin, Peter Van Roekel, Rina Budiawan, Rob Haggett, Ron Wills, Sandrine Vullierme, Sharlene Dadd, Ulla Matthiesen, Vincent Cleary, the Greatorex Foundation, the McIntosh Family, the Morawetz Social Justice Fund, the Cairns Family, our online editors, and all our generous donors.
Ambassadors Ann Devine, Diana Ryall, Heath Francis, Shrav Malkani, Paul Mitchell, and Tharani Jegatheeswaran.
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Management In 2012-13 World Education Australia had a team of full time, part-time, and volunteer personnel in Australia and overseas. The management team at June 2013 comprised: Guy Winship Shane Nichols Nicole Stanmore Diane Bowles Mehul Patel Norm Sturrock Ian Jackson
CEO Program Director Operations Director Director, Marketing & Fundraising Financial Controller Risk Advisor Company Secretary
Annual Report Credits Joni Freeman, Norm Sturrock, Jessie Fisher, Sandra Carvajal, Colette McInerney, Natalie Sikand, Mehul Patel, Sarah Webster, Sujinda Hwang-Leslie
Photos in Annual Report Joni Freeman, Shane Nichols, Colette McInerney, Melodie Buendida, SPBD, Celine Bachelet, YWCA NSW, Monique Alfris, and Nirdhan Utthan Bank Ltd.
Complaints Process Please note that all complaints, questions or comments will in the first instance be actioned by a Good Return 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.
Case Study: Apsara Timalsina Apsara Timalsina of Nepal is the mother of two. Her husband, Ramesh, is a teacher at the local high school. They are financially secure, and have a comfortable home which easily accommodates them and their two children, Nishma (14) and Nishchal (10). Apsara is the ‘centre chief’ for her borrowing group, and has earned the respect of other women for her success in business. But her life wasn’t always like this. A few years ago, Apsara was too shy to get to know her neighbours well, and was embarrassed because her family had very little. Even though her husband had a steady job, his meagre salary couldn’t cover all of the household expenses. With two growing children and day-to-day costs that weren’t being met, she was looking for another way to provide for her family. They were so anxious about money that taking the children out of school seemed the only option. Apsara and Ramesh looked into borrowing from a moneylender, but were worried and discouraged by high interest rates. Then two things happened that turned everything around for the family, and especially Apsara. Apsara received a micro-loan from Good Return to purchase a sewing machine. The sturdy, black machine in Apsara’s deft hands meant that business was soon thriving. From her tailoring business, Apsara saved enough money to repay her loan and apply for an even bigger one – this time to start a small grocery shop. Her village’s need of small commodities – and her knowledge of which ones to trade – have made Apsara’s grocery quite successful. She recently took out another loan through Good Return to purchase more supplies for her tailoring shop, so both businesses are thriving. She proudly told us that she can now meet her family’s each and every necessity. Apsara participated in educational classes provided by Good Return. She said that the most useful classes were about business planning, book keeping, marketing, and keeping a clean environment for customers. She enjoyed the opportunity to speak frankly with other women in her village about business and money management. She became very serious when we asked what life would have been like without her first microfinance loan. “We were in a very low position financially. It was such a problem to just pay the school fees. We may not have even had a proper home.” Now, that home is not only secure, but receiving upgrades, too. Apsara recently installed a solar home system, giving her family affordable light yearround. Families in Nepal usually use kerosene to light their houses, as grid electricity is unreliable and very expensive. With solar, there will be no more indoor pollution, and the light is much brighter, making reading and studying much easier for her children. Apsara’s relaxed smile in these photos is a testament to how things have turned around for her family, and all because of an affordable microfinance loan and some financial education. There have been so many benefits, she said: “It provides both name and fame in the community. It provides not only the prestige but also the income to promote my family economically. Now there is no problem to uplift my family. I can even help other families when they have problems.” 19
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
www.worlded.org.au www.goodreturn.org.au
This Annual Report is printed on recycled paper. Copies of this and other World Education Australia Annual Reports can be optained from our website.
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