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2010 – Chairman and - Secretary Generals report

We will work with the grassroots, but advocate for change and justice for the poor in order to create lasting impact. Chairman and - Secretary General’s report International Division Outreach Table 2010 West Africa - 2010 East Africa - 2010 Asia – 2010 South America – 2010 Support to projects / where we work Communication and Fundraising Mimeta Report from the Strømme Foundation Board Activity account Balance sheet Cash flow Accounting principles Notes for 2010 Auditors report Board and council members


3 4 5 6-7 8-9 10-11 12-13 14-15 16-17 17 18-20 21 22-23 24 25-26 27-31 33 35

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The signing of the agreement between Strømme Foundation (SF) and the Ministers of Education of Mali, Niger and Burkina Faso in Kristiansand in June 2010 stands out as an historic moment for our foundation. In itself, the agreement is very important for efforts to attain the Millennium Development Goal of Universal Primary Education. It is also an important symbol of SF’s approach to development. From a small secretariat financing mission and development projects, SF has grown into a modern, decentralised development organisation with a holistic approach to poverty eradication. Speed Schools, and the establishment of the Speed School Secretariat as a joint venture involving the three West-African governments, is one example of how SF works through both grassroot-based structures and national governments to create local ownership and sustainability. On the same note, we initiate and build capacity with Community Based Organisations in Asia, we improve the opportunities for children at risk in South America, and we work to meet the needs of the education system in East Africa through Community Based Education. By empowering both local and national structures, we facilitate a lasting change that will continue far beyond SF’s intervention in an area, because it is created and owned by the local community itself. 2010 also marked the start of the revision of SF’s Master Plan, in line with updated budget projections and a revised development policy. The Master Plan now has an even clearer direction on how to proceed to eradicate poverty. We will work with the grassroots, but advocate for change and justice for the poor in order to create lasting impact. With the Master Plan’s new structure, we now have a sharper strategy that enables us to maintain our focus while simultaneously managing regional operations strategically, to cater for external influences and better adapt intervention logic to context. On the market side in Norway, SF proved an attractive partner for important institutions and corporations. New partnerships started in 2010 include the cooperation between Dyreparken (Kristiansand Zoo), Basecamp Explorer and SF. This three-

partite intervention aims to contribute to the sustainable development of nature, man and economy in Masai Mara, Kenya. Through SF’s Regional Office in East Africa, our contribution will be to strengthen the human development aspect of the project. As we see future opportunities improving for marginalised people in Kenya, this cooperation also gives SF visibility in Kristiansand Zoo, one of Norway’s top tourist attractions, which may ultimately mobilise more people for collective action against poverty. Development is about long term planning, partnerships and commitment. However, it is also about compassion and acting quickly when the unexpected happens. When Haiti was struck by a devastating earthquake, both Communications and Program staff showed flexibility that reflects a deep-felt motivation to come to the assistance of people in need. After the earthquake, the Communications Department mobilised SF’s network of businesses, schools and individuals to raise more than seven million NOK in the course of a few hectic days. The Program Department then took up the challenging task of securing the best possible use of these funds. Similarly, when the beneficiaries of our programmes in Niger were affected by extreme drought, the result of team efforts between Head Office, our regions and strategic partners facilitated the provision of emergency relief to thousands of beneficiaries. Upon reflection one year later, we are convinced that our efforts have been important and we are proud of the quality of the work done throughout the chain from fundraising to quality assurance. In light of a very eventful year, we would like to convey our deep appreciation to all stakeholders who have contributed to taking us one step closer to our vision of a world free from poverty.

Sven Ove Faksvåg Chairman of the Board

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Øyvind Aadland Secretary General


Outreach Table 20101

International Division 2010

This year, successful regional ventures include the Memorandum of Understanding for the establishment of a sub-regional Secretariat for Speed Schools in West Africa.

The Program Department (PD) and Strømme Microfinance (SMF) AS constitute the International Division of Strømme Foundation. PD oversees all education-related interventions and SMF AS is responsible for all microfinance (MF) activities. PD provides professional and technical support to Regional Offices with regard to securing quality in SF’s education interventions. PD is overall in charge of SF’s development policies, applications, plans and reports. MF activities are within Institutional MF, whereby SMF AS provides financial and non-financial services to partners, and Community-Managed Microfinance (CMMF), an approach based on participant ownership, whereby the loan fund comprises the savings of the participants. In 2010, the Master Plan results-planning framework was further improved for all four regions. The Program and MF Annual Meeting in Bamako facilitated cross-regional fertilisation, particularly with regard to promoting synergy between education and microfinance for maximum impact. Measuring results is one of the headlines for the International Division in 2010. SF started implementing our new tools for cross cutting issues – gender equality, environmental sustainability and cultural freedom. The development of a comprehensive Monitoring and Evaluation system in the regions was also initiated, in order to better assess the added value of SF and measure change in the lives of our beneficiaries. Through this process, SF’s planning and reporting formats have increasingly been aligned with international standards for Results-Based Management, such as the Log Frame Approach, for better results reporting. This year, successful regional ventures include the Memorandum of Understanding (MoU) for the establishment of a subregional Secretariat for Speed Schools in West Africa, signed in Kristiansand in June. The agreement signed between SF and

the Ministries of Education from Mali, Burkina Faso and Niger holds the governments increasingly responsible for the further development of the Speed School concept, and thus secures greater ownership and sustainability of Speed Schools. SMF AS further developed its relationship with Freedom From Hunger and Oxfam America, formalised by signing a Global MoU for the Saving for Change program. Saving for Change is a highly replicable CMMF program developed by Oxfam America, Freedom from Hunger and SF, and enables the very poor to form self-managed savings groups and participate in simple, relevant, high-impact training on health, business and financial management. PD gained additional staff and a clearer mandate, enabling us to provide stronger program support to the regions. Through the establishment of the Desk Officer function, each region has their own ‘spokesperson’ and coordinator at Head Office. Furthermore, an ‘Institutional Fundraising’ section was completed. These functions have facilitated a stronger value-added relationship between Head Office and regions. 2010 also stands out as a year of several natural disasters. Though Haiti is not one of SF’s intervention countries, we were challenged by network partners in the Integral alliance to raise funds for earthquake victims. After successful fundraising, PD did a thorough job of securing the best possible utilisation of these funds for emergency aid and rehabilitation; particularly in education – a neglected sector of emergency operations, and one of SF’s two development pillars. The support to network partners in Haiti has also strengthened ties to organisations within our alliances. Similarly, when a heavy drought struck the Sahel region mid-year and threatened our long-term development interventions in Niger, SF partnered with EU-Cord members to mobilize funds for food aid for our beneficiaries.

Region Country

Microfinance F




7 500 1 800 14 100 34 600 58 000

15 000 5 000 22 400 70 100 112 500

17 900 4 500 4 200 9 000 35 600

30 000 5 700 8 100 10 800 54 600

47 900 10 200 12 300 19 800 90 200

25 400 37 500 62 900 7 700 7 500 15 200 12 500 22 200 34 700 44 430 45 330 89 760 90 030 112 530 202 560

6 800 41 000 200 6 900 54 700 200

6 800 41 200 6 900 54 900

1 400 5 500 800 7 700

1 500 5 100 1 000 7 600

2 900 10 600 1 800 15 300

8 200 46 100 7 700 62 000

1 500 5 300 1 000 7 800

161 000 34 000 13 800 47 800 16 200 47 400 15 300 4 100 19 400 224 600 49 300 17 900 67 200

188 600 8 300 45 600 242 500

20 200 7 900 19 200 47 300

East Africa Uganda Kenya3 Tanzania Sudan SUB-TOTAL

7 500 3 200 8 300 35 500 54 500

West Africa4 Burkina Faso Mali Niger SUB-TOTAL Asia Bangladesh Burma Sri Lanka SUB-TOTAL

154 600 8 300 31 600 194 500

6 400 7 900 15 800 30 100

South America5 Bolivia Peru 400 51 451 SUB-TOTAL 400 51 451

304 100 88 351






9 700 51 400 8 700 69 800

208 800 16 200 64 800 289 800

8800 11000 19 800

7200 6400 13 600

16 000 17 400 33 400

8 800 11 400 20 200

7 200 6 451 13 651

16 000 17 851 33 851







392 451 112 417

93 707

206 124

Global ACT NOW Total

Total beneficiaries2


414 747 181 288 596 035

1) Note that these figures are approximations of Strømme Foundation’s impact, with figures above one-hundred rounded to the nearest hundredth. 2) Persons benefitting from both Microfinance and Education (e.g. both CMMF and Active Literacy or both DREAM and a MF loan) are included in both the Microfinance and Education outreach figures but only recorded once in the ‘total’ columns so as to avoid duplication. 3) The MYSA figures included within overall Kenya figures are approximations of Strømme Foundation’s impact, taking into account that a) MYSA outreach figures oscillated slightly throughout the year and b) MYSA is in part funded by other donors. 4) In addition to the outreach figures listed for West Africa, information about our programmes and the importance of Education and Microfinance to combat poverty were broadcasted to a population of 1.4 million inhabitants. 5) Of the beneficiaries reported, 12 000 were reached through the Bolivian Viva Network.


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West Africa 2010

The report emphasized the importance of Speed Schools in giving children a second chance in school.

In 2010 SF West Africa (SFWA) reached out to 69 800 direct target beneficiaries, with Speed Schools, Community Managed Microfinance (CMMF) and Active Literacy constituting the main programs. SFWA’s good relationship with governments was strengthened in 2010. In June, a Memorandum og Understanding (MoU) to start up a Speed School Secretariat was signed in Kristiansand between Strømme Foundation and the Governments of Mali, Burkina Faso and Niger through their Ministers of education. Following the establishment of the Speed School Secretariat, the Burkina Faso and Niger authorities committed to funding Speed School centers from 2011. Malian authorities agreed to fund 30 Speed School centers in 2010. In October the authorities of Burkina Faso awarded a national distinction in the Education sector, “Chevalier de l’Ordre des Palmes Académiques” to Strømme Foundation for the Speed School initiative. 2010 was also a successful year in terms of securing funding for Speed Schools from other strategic partners; the Swiss Cooperation funded 20 centers, Erikshjälpen funded 20 centers, CARE Mali funded 10 centers and UNICEF committed to funding 40 centers over two years. In 2007 Geneva Global, an American fundraising agency for development, partnered with SFWA to fund Speed Schools and CMMF for two years. In November two external consultants evaluated the two programs, aiming to determine the impact of their combined efforts, presenting key success factors, lessons learnt and areas for improvement. The report emphasized the importance of Speed Schools in giving children a second

chance in school. The report is also emphasizing the impact of the CMMF program on women’s lives, the development of a sense of solidarity. It also underlines the women’s empowerment in matters of health, decision-making and income generating activities, and their support to their children’s enrolment and retention at school. The evaluation recommended further developing the capacity of CMMF women in their saving groups through the introduction of literacy. In 2010 SFWA recruited two new staff, a Monitoring and Evaluation Officer and a Deputy Coordinator for Education. SFWA staff and field staff received training in malaria prevention and treatment, capacity building for CMMF groups, and four steps towards a better business. In August SFWA met with all its implementing partners in Mali, discussing SFWA’s five year plan, the strategy of concentration and synergy, the Speed School Secretariat and the main recommendations of 2009 audits. In November SF’s Program Annual Meeting, Microfinance Annual Meeting and Leadership Meeting took place consecutively, for the first time, in West Africa. The opening ceremony was led by the Malian Minister of Education to emphasize the synergy between SFWA and Malian authorities. The food crisis in Niger threatened the achievement of SFWA’s objectives in 2010. The famine project funded with NOK 549 500 improved the living conditions of 749 Speed School learners and enabled 1 190 women of CMMF groups to correctly implement their activities.

Speed School – a second chance When Simon, a ten year old Burkinabé boy, reached seven, his parents were too poor to send him to school. His parents learned about Speed School and decided to send him there. After nine months at Speed School, Simon was transferred to the 4th grade of primary school, where he now is among the four top pupils of his class. - I am now able to read, write and calculate, but my dream goes beyond those skills. I want to become a nurse and take care of my family, especially my mother who is disabled, says Simon. Speed Schools have increased the number of children enrolled in school in Mali, Burkina Faso and Niger, giving a second opportunity and a new future for out-of-school children.


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East Africa 2010

Microfinance interventions brought about tangible positive changes in lives of poor people in communities where SF intervenes.

In Uganda, Kenya, Tanzania and Sudan, SF East Africa (SFEA) reached out to 202 600 beneficiaries in 2010. The year saw the withdrawal of SFEA from Rwanda and the Northern Upper Nile in Sudan. For improved educational opportunities for vulnerable children/youth, SFEA interventions were done through 26 partners and 144 formal and informal schools. 26 500 pupils were reached through formal schools through various interventions that aimed at increasing access, enrollment, retention and quality completion of formal primary school. As a result, access to primary education increased by 11%. For good governance and schools management in poor/hard to reach communities, 1 500 Parent-Teacher Association/School Management Committee members were trained in various disciplines. 51 classrooms were built or renovated, enabling child friendly learning environments. 1 034 teachers were trained for quality education. In addition, in Southern Sudan where education has been badly affected by prolonged war, 2 500 youth were reached through Alternative Education Systems. Through Christian Sports Contact (CHRISC) activities, 25 000 youth were reached through sports, leadership training, HIV/AIDS awareness and environmental management skills. CHRISC activities have led to talent grooming; five CHRISC youth were recruited in the U17 national football team in Uganda and some paid referees were recruited. Positive behavioral change was observed among the youth, also through MYSA activities in Kenya, which reached out to approximately 15 900 youth.

For economic empowerment and entrepreneurship among poor/vulnerable people, SF through Strømme Microfinance East Africa Ltd (SMF EA Ltd) reached 30 100 very poor people through 14 Community Managed Micro Finance partners. 72% of these are women. People thought to be unbankable, were able to raise cumulative savings of USD 1,028,071. 82 400 enterprising poor were reached through traditional microfinance services through 26 partners. In 2010, SMF EA Ltd recorded a slight decline of 15% in its portfolio. It attained operational self-sufficiency of 111%, Operating Cost Ratio of 5% and portfolio at risk of 4.1% (30 days), indicating that the company still maintained healthy performance indicators. Microfinance interventions brought about tangible positive changes in lives of poor people in communities where SF intervenes. Notable changes were increase in household incomes, ability to support children in school, improved shelter, clothing and feeding. In 2010, due to access to education being constrained by high levels of poverty in communities, SFEA moved more pragmatically by supporting education programmes integrated with CMMF. 6 such projects were supported with very good education outcomes resulting from improved livelihoods. More focus will be given to develop this in 2011, to ensure sustainability of interventions and increased livelihood improvements in lives of poor people.

Away from the streets Lydia Muteesi (14) first came to Child Restoration Outreach (CRO) when she was 5years old. She was picked up from the street when she was trying to sell the chaff she had collected from the rice mill to buy some food. At the time, Lydia lived in a child headed household with her 15-year old sister as they had lost their mother to a long illness and been abandoned by their father. Nine years later, Lydia has a world of opportunity before her. Many of the girls who joined CRO together with her dropped out of school and returned to the streets. Lydia says she will stay in school because there is no other way out of poverty. Leaving school will only lead her back to Namatala slum, where she has vowed never to return.


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Asia 2010

SF Asia’s greatest success has been to prevent children dropping out of school; the programme achieved a 4% drop-out rate against the 35% national rate.

During 2010, Strømme Foundation Asia and Strømme Microfinance Asia Guarantee Limited (SMAGL) reached a total of 291 800 beneficiaries in Bangladesh, Sri Lanka and Burma. The Nepal programme started and partner selection was finalised. Quality assurance of programmes, capacity building of partners and Community Based Organisations (CBOs) continues to be the region’s priority. Through active community participation, partner organisations have strengthened civil society by empowering thousands of excluded communities in a sustainable manner. The Bangladesh programme focused on education and microfinance. 161 100 clients were supported through microfinance. 9% of the families engaged in economic development were hardcore poor. 26 000 children in rural Bangladesh received basic quality education. Attendance in project schools reached 92% against the national rate of 67%. SF Asia’s greatest success has been to prevent children dropping out of school; the programme achieved a 4% drop-out rate against the 35% national rate. 1 500 children, who would otherwise remain illiterate, were given a second chance through non-formal education programmes. 19 300 girls completed the Shonglap program and 16 800 more girls were enrolled. As an example and as a result of Shonglap, we can see clearly that early marriage in the working areas has been challenged. In Sri Lanka, regular programme interventions focused on reaching those excluded from conventional development work.

In addition, the “Development and Rehabilitation of the Economy of poor through Alternative Means” (DREAM) project aimed to empower those who have been socially and economically excluded and disadvantaged by poverty, war and disasters. In 2010, 121 new CBOs were established with 11 600 members from poverty stricken communities, and capacity building was provided to previously established CBOs. These organizations are becoming protective safety-nets that provide mutual support, resist external threats and claim their rights for durable changes in their communities. With regard to microfinance, our microfinance interventions reached 47 000 clients in Sri Lanka in 2010. In addition to the microfinance loans issued by SMAGL and partners, the increase in the number of CBOs with their own community funds providing loans to its members for emergency and micro-enterprises is significant. The approach is holistic, empowering people to build strong financial bases through their own savings and addressing common challenges, leading to community development. Women hold nearly 83% of the membership in CBOs. All of these organizations are actively engaged in environmental protection and peace building activities. 202 children and 100 youth clubs were formed and a total of 10 700 children and 4 300 youth have followed informal life skills development courses. Last but not least, Asia will continue to focus on quality and consolidated programmes to ensure constructive change and promote economic, social and cultural development.

The shining start As a farmer’s youngest daughter among seven in Bangladesh, the talented student Sisilia dropped out from school. Participating at a Shonglap Center, Sisilia received financial support to continue her education and was re-admitted to Mohespur Adibasi High School. With a loan she also received livestock rearing training. She can now maintain her study cost and support her parents financially. After taking the Secondary School Certificate examination in 2010, Sisilia gained the grade ‘A’ in science and was admitted to eleventh grade. Now her family and villagers call Sisilia the “Shining Star”. And she is now more encouraged to continue her studies and aims to be a doctor in the future.


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South America 2010

The objective is to help the women to gain the confidence and vocational skills needed to generate economic resources that can improve the quality of life of their families.

During 2010, Strømme Foundation South America reached out to 33 900 people through 13 local partner organisations in Peru and Bolivia. In our region efforts continue to be concentrated on education related interventions. In 2010, also 451 persons benefitted from our microfinance interventions. Our strategy, to contribute to the eradication of poverty and reduce the high levels of inequality in the region, is implemented through five intervention lines. These are intervention lines that help raise the quality of education and encourage socio-economic empowerment of the most vulnerable people in the region. According to outreach data for 2010, the intervention that reached most participants were: i) strengthening basic education, formal and non-formal - 40%, ii) community empowerment for democratisation - 40%, followed by iii) empowering adolescents on their rights - 11%, then iv) provision of pro-poor financial and non-financial services - 5%; and finally v) culture for leadership building and life skills - 4%. The region continues to primarily target children at risk, who comprise 68% of our beneficiaries. Children at risk is then followed by groups of vulnerable adults 14%, parents 12%, youths 2, 6%, teachers 1, 6% and community leaders with 1, 2% respectively. With a total budget of approximately US $1,750,000 for the year; 56% was used in Peru in the funding of 11 projects, while 44% was used in Bolivia for six projects. Both partners and the regional office (RO) did their best to complete their plans in spite of financial constrains. Gender wise, 60% of our total number

of participants were women and 40% were men. Out of the 17 projects implemented, 15 are educative whereas only two of them are microfinance. During the second half of the year, a new Bolivian partner named OASID was identified. OASID works in the Andean villages of Chuquisaca, where they are building the capacity of indigenous Quechua speaking women. The objective is to help the women gain the confidence and vocational skills needed to generate economic resources that can improve the quality of life of their families. The end of 2010 also marked the end of – after six years – the Resourceful Child project. The project has enabled rural mothers to continue training their peers in order to improve their child rearing practices. The project has also trained and learned community leaders to provide the support needed by the promoter mothers to launch their early childhood development programme in their Andean communities. Two books that document the results of this intervention have been produced. The RO organised capacity building workshops for partners, related to “Strengthening the RBM approach in the development projects”, “Finance, Administration and Accountancy”, and “Democracy and participation for development”. Four projects in Peru had their mid-term participatory evaluations. Although our Communication Officer quit her job with us in July, the office was able to finalise the year fulfilling the main commitments within the operative plans.

A chance to go to school Flor Ccanto (13) cannot walk because of a disease she got as a baby. Her mother Eugenia Roca knows that she just needed a chance to develop her skills. She tried to register her daughter in school, but no school wanted her. They thought she was a problem. In April 2010 Flor and her mother started participating in the Pirwalla Pirwa Project in Hunacayo. - The school has changed her. Now she is more happy, independent and confident in herself. She has learned to read and write. She loves reading and playing with puzzles. It is amazing - Flor has become another girl, says her mother. She herself has learned to make more nutritious food, and she also cares more about hygiene.


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Support to projects including regional office cost

EduMicro- Culture Disaster No.of No.of cation finance Develop. response partners projects 2010 2010 2010 2010 2010 2010 Total 55 710 24 479 2 291 3 341 106 145 85 821

Grand total - support to projects in 2010

EduMicroNo.of No.of cation finance partners projects Bangladesh 6 927 1 165 8 10 Sri Lanka 5 903 3 730 12 13 130 1 1 India6 Nepal5 369 0 0 Asia 13 329 4 895 21 24

Edu- Micro- Disaster No.of No.of cation finance response partners projects Mali Burkina Faso Niger West Africa

10 547 1 901 1 209 13 657

5 157 928 615 642 6 700 642

17 6 2 25

24 8 4 36








PERU Education

MicroNo.of No.of finance partners projects


Peru 5 894 210 8 10 Bolivia 4 276 0 4 7 South America 10 170 210 12 17 Edu- Micro- Disaster Culture& No.of No.of cation finance response Develop. partners projects Haiti7 2 699 2 5 Act Now 1 845 1 1 CHRISC 630 1 1 Microfinance film 1 500 1 1 Mimeta 2 291 1 6 Global 2 475 1 500 2 699 2 291 6 14



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No.of No.of partners projects

Uganda 4 727 2 959 21 25 Tanzania 1 650 2 768 9 11 Sudan 6 956 951 8 12 Kenya 2 682 4 471 4 6 Rwanda4 64 25 0 0 East Africa 16 079 11 174 42 54 Remarks 1) The Microfinance (MF) figures include only fresh funding from SF during the year, and not operations or loan disbursements in our MF companies/entities. 2) Regional Office cost has been distributed onto the countries in each region. 3) The numbers of partners and projects do not include those which are solely related to the MF companies/entities. 4) Rwanda - Although SF-supported projects came to an end in 2009, external audits were carried out in 2010. 5) Nepal: In 2010, SF began the process of identifying partners and developing

Figures in 1000 NOK

the programme for Nepal. Actual implementation will begin in 2011. 6) India: In India SF supports a school for the blind through an earmarked five-year gift (2006-2010). As India is not a current country of focus for SF, the children reached through this project are not included in the outreach table. 7) Haiti: In addition, SF reached thousands of earthquake survivors in Haiti wirh emergency relief and through building transitional houses and schools, supporting children at schools and in children’s’ clubs, and working with women to stop prostitution across the border with the Dominican Republic.

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Communication and Fundraising

5% 5%

Once again private income reached an all time high with a total of 69.8 million NOK. We are naturally very pleased with this result, and would like to thank all our donors, partners and staff for making this possible.

4% 3% 43%

Public sector grants

53 351 637

Individual donations

11 294 876

Fixed-term donations

37 463 069

Events – schools and artists

3 416 027

Contributions from other organizations 5 152 816


Corporate sector

6 766 629

Testamentary donations

5 759 994 Figures in NOK

Strømme Foundation is honored by the extraordinary generosity of our donors and partners, who provide financial resources for our programs around the world. Once again private income reached an all time high with a total of 69.8 million NOK. We are naturally very pleased with this result, and would like to thank all our donors, partners and staff for making this possible. When the earthquake hit Haiti in January, we were challenged by our international partners to use our network and expertise to raise funds for this crisis. During the first few weeks of the year we managed to raise 7, 5 million NOK, as one of the main contributors from Norwegian organizations. The communication department has in 2010 worked closely with the rest of the organization revising the Master Plan, and been even more focused on raising funds according to our main intervention lines. Individual Donors In 2010 we increased the number of private donors from 21.922 to 26.077. The effect of the Haiti campaign is clearly the main reason for this substantial increase. We also got new donors in the Niger-drought campaign during the summer, where Strømme Foundation helped our partners affected by the famine. It is quite clear that world disasters more easily attract new donors than our main focus in long term development. Despite the increase of new donors, we still see a decrease in fixedterm donors (Hjertevenn and Fattigdomsbekjemper/ Friend at heart and Povertybuster). However, we are experiencing a positive trend, and believe that our continuous focus on this will give results. The market situation for child sponsorship programs is still tough, yet we managed to increase the average amount per donor during 2010. For the first time in many years we launched a limited telemarketing campaign, experiencing good results. The recruiting - road trip to festivals during the summer was also a positive activity. We experience that our web page is visited much more frequently, and also our focus on Social Media has in 2010 resulted to an increased interest in our work. There have also been weekly activities on Facebook, Twitter and blogs. Major Donors, schools and corporations 2010 was a good year of consolidation for Major Donor group, where we attracted new interesting partners, like the Kavli fund and Kristiansand Zoo and Amusement Park.


One of the biggest achievements in 2010 was to receive his Royal Highness Kronprins Haakon and Her Royal Highness Mette-Marits Humanitarian Fund for 2010 in cooperation with the Norwegian Mission Alliance for young entrepreneurs in Bangladesh and Ecuador. This is important not least for the positive branding and focus that is given to Strømme Foundation’s Microfinance, and our development work. An important event was also the Operation Day’s work’s midterm trip that was accomplished in September. The administration of OD is very pleased with how the money and work is administrated through Stromme Foundation. Our work with fundraising among high network individuals in the US did not meet our expectations, and this work will be phasing out during the first half of 2011. However, we will continue to focus on international institutional fundraising. Media & Public Relation Strømme Foundation has managed to establish a good position in the media. In 2010, we registered a total of 568 hits in different newspapers, magazines, radio and TV, and digital media where Strømme Foundation is mentioned. We work with the media to get national attention and awareness on development issues, and to educate the public on North/South issues. This is an important part of our mission. Our media coverage in 2010 included chronicles in national newspapers, and we took part in several debates in different media. Some major events in 2010 drew media’s attention to us. In august we received his Royal Highness Crown Prince Haakon and Her Royal Highness Crown Princess Mette-Marits Humanitarian Fund for 2010. The event gave media coverage nationwide. We also managed to get some media attention due to disasters. In January our Haiti disaster campaign attracted media. And during the summer the difficult food situation in Niger where drought threatened thousands of lives also made some headlines. The December Christmas concert “Stille natt – Hellige natt” gave good coverage in media. We also experience that our exchange students offer important media coverage through blogging, interviews and articles.

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9% Figures & facts Private donors (total) 26 077 Fixed-term donors 15 537 -Hjertevenn 11 654 -Brobygger 3 223 -Fattigdomsbekjemper 660 Single donations 10 540 Outreach Norwegian children & youth 10 146 Number of business partners 59 Outreach business partner employees 16 500 Micro Shares (mikroaksjonærer) 26 Number of partner schools 61 Youth engaged in SKRIK campaigns 800 Visitors: web-page 52 288 Visitors: web-shop 14 955 Facebook members, English page 10 387 Facebook members, Norwegian page 1 736 HTS magazine subscribers 28 500 Number of news articles in media (newspapers, magazines, web) 568

Mimeta - Centre for Culture and Development Mimeta Centre for Culture and Development- owned by Strømme Foundation and Vest Agder County works within the cultural sector as an asset in the efforts of securing human freedom and a sustainable society. Mimeta’s main partner organizations are on the African continent, but we are also involved in different activities in South America and in the Middle East. One of our main objectives is to improve the cultural sector’s local, national or regional position, and the artist’s living conditions. Our main focus in 2010 has been developing the organizational structure and profile. In addition relation building to authorities to secure funding and defining a business plan, has been undertaken.

Mimeta has also established a communication platform, and developed “information tools” and a “specialist-profile” related to expertise within the civil sector. This effort of specialization has been recognized by both Norwegian and Swedish authorities during 2010. This has lead to a framework agreement with Norwegian authorities over three years. As a result of co-operation with the “Swedish Institute”, and other funding institutions in Sweden, it was decided to establish a Swedish sister organization in August 2010. Strømme Foundation has noted the successful establishment of Mimeta, and wants to move from the establishing face to a more consolidating state.

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Report from the Strømme Foundation Board for 2010

Strømme Foundation (SF) is committed to empowering people to overcome the root causes of poverty. SF’s identity is based on Christian values, emanating from the life and teachings of Jesus Christ. SF plays a catalytic role in empowering the marginalised sections of society to have access to basic needs, resources, and decision-making bodies and thus aim at promoting a just society.

countries increasingly responsible for the further development of the concept.

Strømme Foundation has its head office in Norway (Kristiansand) and four regional offices in West Africa (Mali); East Africa (Uganda); South America (Peru) and Asia (Sri Lanka) plus two satellite offices in Sudan and Bangladesh.

Relief Work in 2010 SF does not normally get involved with relief work. However, where the situation arises that we can help through our partners in providing a sustainable response to a natural disaster we have undertaken to get involved. Two such instances happened in 2010, the widely publicised earthquake in Haiti and the less well known famine in Niger.

The Board The Board has had 4 ordinary board meetings and 1 extraordinary board meeting in 2010 and dealt with 44 issues. The Board had the same Board members as in 2009 with the following members: Geir Magnus Nyborg, Liv Næss, Svein Ove Faksvåg, Inge Lønning, Anna Minj, Olaf Gundersen and Trond Randøy. Substitute members were Karianne Toppe Angelskår, Asle Jøssang and Anja Elise Ø. Husebø. At the end of 2010 Geir Magnus left the Board after seven years of service and his position as Chairman has been taken by Svein Ove Faksvåg. Main results obtained The most important results for Strømme Foundation are those that measure our success in achieving our main goal of eradicating poverty. During 2010 through both Strømme Foundation itself and the Microfinance subsidiary we had an outreach of just under 600 000 people, this splits roughly 66% microfinance and 33% education, and overall roughly 70% of the people we reached were women.


The second, also in West Africa, was signed by SF’s microfinance subsidiary SMF AS. This is an MoU with two international NGO partners; Oxfam America and Freedom from hunger for the “Savings for Change” program.

Microfinance and Culture subsidiaries In 2010 the Microfinance operations reached 392 451 people (also included in the consolidated results), female clients make up 75% of this total. We report only clients reached with “our money” as opposed to the total reached by the partners we work with which would be over 6 million people. Average loan sizes vary from region to region. East Africa is the highest with 2 290 NOK, Sri Lanka 1 166 and Bangladesh 498. We are working at developing outcome measures which will describe the effect of these loans in the lives of the poor, this is a challenging task for the whole of the microfinance “industry” but our plans are to become a centre for competence in measuring outcome. SF also has a controlling Interest (65%) in Mimeta AS, the first Norwegian organization specializing in the sector of culture and development, and this is also shown in the consolidated accounts. Financial Headlines

Partnerships During 2010 SF strengthened strategic partnerships through the networks of which we are a part, Integral and EU Chord and in many ways in the regions in which we operate. One particular example stands out in West Africa where two significant Memoranda of Understanding (MoU) were signed.

Consolidated Accounts There was a consolidated profit of 7.2mNoK in 2010 compared to a loss of -6.7 mNoK in 2009. The big difference between the year is the large currency variations in the value of the microfinance portfolio which is held in local currency but stated in Norwegian kroner.

The first was with the ministries of education in Mali, Burkina Faso and Niger. This MoU established a sub-regional secretariat for Speed Schools and holds the governments of these three

Total equity increased from 161.5 mNoK in 2009 to 169.1mNOK in 2010. The cash flow from operational activities is satisfactory; total liquid funds at the yearend were 34.7 mNOK in the

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accounts but this excludes SMF AS that has been consolidated using the Equity method. Liquid funds in SMF AS total 36.8m NoK. Strømme Foundation The total income in 2010 was 131.8 million kroner compared to 128.6 million kroner in 2009. Public Sector income decreased from 58.0 million kroner in 2009 to 53.3 million kroner in 2010 - the difference being mainly a reduction in locally sourced grants from the Norwegian Embassy in Sri Lanka and from UNDP and USAid for Sudan. Private Donations have increased from 53.7m in 2009 to 65.8mNoK in 2010, mainly due to the Haiti campaign and some large legacy gifts, otherwise private regular income is stable. Contribution from other organizations decreased from 10.6m in 2009 to 5.2m in 20109. This is mostly due to Geneva Global income received in 2009. Financial support to projects remained stable in 2010 at 103.8 million, the same as the figure for 2009. The result for the year after change in earmarked capital was a surplus of 2.7 million kroner compared to a 8.6 million kroner surplus in 2009 before microfinance operations were included. The key figures for SF as a percentage of total costs in 2010 are: Administration 5.1% (5.0 % in 2009); Fundraising 13.4% (10.6% in 2009); and Purpose 81.5% (84.4% in 2009). Working environment and Staff The working environment in the SF is considered to be good. The cooperation with the employee’s unions has been constructive and has contributed positively to the development work. Absence due to illness at the head office was approximately 6.7 % (6.3 % in 2009) of the total working time. The organization has a company doctor agreement. There were no serious accidents at work resulting in material damages or personal injuries during the year. In 2010 there were 5 (4 in 2009) men and 2 (3 in 2009) women in the Board. Among the employees at the head office at the end of the year there were 15 (11 in 2009) women and 20 (21 in 2009) men, and 17 (20 in 2009) women and 50 (51 in 2009) men worked in the regions (including all microfinance and projects). On the leadership team, comprising the senior managers at head office plus the regional directors, there were 8 men and

2 women. SF strives for a balance of gender at all levels and is conscious about this when employing new staff. The organizations contamination of the external environment will mostly be of an indirect nature. The Board considers this to have minimal contamination effect on the external environment. The organization has no order from the public authorities that has not been complied with. Strømme Foundation has an international staff and recruitment processes and working environment in all offices are intended to ensure that there is no discrimination on the grounds of race or disability. Financial Risk The Board continue to monitor SFs financial risk through quarterly reporting, more focus has been given during 2010 on preventing corruption in SF and its partners and the organisation has established good systems and had good dialogue with donors when suspected corruption cases are uncovered. SF´s expenditure is largely in currencies linked to the US dollar or the Euro and with most income in Norwegian kroner exchange rates play a large part in what SF is able to deliver to partners in the South. However, given the nature of SFs agreements with these partners, it is not SF that takes the financial risk but the partners themselves. During 2010 SF entered into fixed exchange rate contracts in order to secure the budgets at the favourable exchange rate between the Norwegian kroner and the US dollar. Strømme Foundation has no external borrowing, so there will be no serious consequence for the organization if the interest rates should increase considerably. The credit risk is restricted to the microfinance operations in SMF AS.

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Strømme Foundation Activity Account Microfinance operations are exposed to credit risk and country risk. Due to the monitoring system and diversification of the portfolio, the Board believes that the credit risk is reduced to an acceptable and manageable level. The specific country risk cannot be influenced directly by the company but the sum of country risks has been reduced through the company’s strategic decision of spreading its activities over several countries. Future Perspective The Board has good reason to believe that Strømme Foundation is a going concern. The results from 2010 show that the

effect of the finance crisis on SFs finances on regular income have been minimal and we are seeking new sources of funding from international foundations. The Board believes SF are in a good position to respond to changes in the market for funds, whether they come from competitors or from general economic circumstances. Allocation of the result SF´s surplus of 2.7 mNoK is allocated to unrestricted retained earnings. The consolidated gain of 7.2mNoK is allocated 13.3m NoK to unrestricted reserve and -6.2mNoK to restricted Microfinance reserve.

Kristiansand, 26 May 2011

Asle Jøssang

Svein Ove Faksvåg Chairman of the Board

Inge Lønning

Anna Minj

Trond Randøy

Olaf Gundersen Karianne Toppe Angelskår

Strømme Strømme Foundation Foundation Consolidated Consolidated 2010 2009 2010 2009 Note Note Acquisition of funds 2 53 351 637 58 005 896 Public sector grants 56 148 706 58 005 896 3 65 838 361 53 743 041 Private donations 65 838 361 53 743 041 6 766 629 5 348 604 Corporate sector 6 766 629 5 348 604 4 5 152 817 10 650 037 Contributions from other organisations 5 956 137 10 650 037 194 424 177 657 Other income 320 226 177 657 7 506 754 694 488 Financial income 522 581 694 488 131 810 622 128 619 723 Total aquisition of funds 135 552 640 128 619 723 -17 158 991 -13 082 881 Cost of funds aquisitions -18 301 706 -13 082 881 114 651 631 115 536 842 Gross available funds 117 250 934 115 536 842 -6 518 464 -6 135 840 Administration costs -7 661 179 -6 135 840 108 133 167 109 401 002 Available for purpose activities 109 589 755 109 401 002 18 Purpose activities Project Support - Mimeta Project Support - MF 1 -104 589 640 -103 891 927 Total purpose activities -92 779 305 -97 807 181 3 543 527 5 509 075 Result before change in restricted equity 16 810 450 11 593 821 9 -802 903 3 020 605 Change in restricted equity -3 416 611 3 020 605 2 740 624 8 529 680 Result after change in restricted equity 13 393 839 14 614 426 16 -14 567 950 Result Microfinance -6 183 217 -20 219 161 Mimeta - -1 157 970 2 740 624 -6 038 270 Result 7 210 622 -6 762 705 Allocations 2 740 624 Transferred to unrestricted reserve 13 393 839 13 456 456 Transferred to restricted MF reserve -6 183 217 -20 219 161 2 740 624 -6 038 270 Total allocations 7 210 622 -6 762 705

Øyvind Aadland Secretary General


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Strømme Foundation Balance Sheet 31.12 Strømme Strømme Note Note Foundation Foundation Consolidated Consolidated 2010 2009 2010 2009 Long term assets Fixed assets 8 732 600 8 911 431 Property 8 732 600 8 911 431 457 188 339 329 Office furniture and equipment 457 188 339 329 6 9 189 788 9 250 761 Total fixed assets 9 189 788 9 250 761 Financial asset 37 659 847 37 659 847 Investment in subsidiaries 242 940 200 000 10b - Investment in microfinance 126 829 634 125 118 180 15 73 435 270 73 052 665 Loan to subsidiaries - - 11 274 048 567 397 Pension scheme (overfinanced) 274 048 567 397 111 369 165 111 279 909 Total financial assets 127 346 622 125 885 577 120 558 953 120 530 670 Long term assets 136 536 410 135 136 337 12 3 264 221 3 219 701 Property development 3 264 221 3 219 701 - - Receivables 1 633 869 1 169 907 Trade Debtors 1 633 869 1 169 907 234 500 234 500 Prepaid expenditure 234 500 234 500 40 849 857 Public duties 40 849 857 60 424 312 573 Intercompany receivables - - 1 169 341 853 497 Other receivables 1 228 598 853 497 3 098 174 3 420 334 Total receivables 3 097 007 3 107 761 - 30 000 30 000 Investment in shares and bonds 30 000 30 000 - 13 32 227 472 29 907 977 Bank and cash 34 687 040 29 907 977 - 38 619 867 36 578 012 Total current assets 41 078 268 36 265 439 159 178 822 157 108 681 TOTAL ASSETS 177 614 677 171 401 777

Strømme Foundation Balance Sheet 31.12 Strømme Strømme Note EQUITY AND LIABILITY Foundation Foundation Consolidated Consolidated Note 2010 2009 2010 2009 Equity 3 326 092 3 326 092 Founding capital 3 326 092 3 326 092 3 326 092 3 326 092 3 326 092 3 326 092 Acquired equity 12 020 169 11 217 267 Restricted equity (SF projects) 12 020 169 11 217 267 106 882 512 106 882 512 Microfinance equity 116 778 139 120 828 430 Restricted equity (Mimeta) 3 171 173 362 353 24 821 552 16 291 869 Unrestricted retained earnings 24 821 552 16 291 869 2 740 623 8 529 680 Result for the year- SF unrestricted 13 393 838 14 614 426 Minority interests -1 109 911 -1 157 970 - Currency difference and donated equity -3 265 716 -3 951 821 146 464 856 142 921 328 Total acquired equity 165 809 244 158 204 554 9 149 790 948 146 247 420 TOTAL EQUITY 169 135 336 161 530 646 19 LIABILITY Long term debt 11 799 140 1 795 979 Pension obligations 799 140 1 795 979 150 000 150 000 Legacy obligations 150 000 150 000 1 963 224 1 500 747 Staff gratuities in regional offices 1 963 224 1 500 747 131 222 206 863 Other long term debt 131 222 206 863 3 043 586 3 653 589 Total long term debt 3 043 586 3 653 589 Short term debt 1 824 972 1 986 063 Creditors 1 824 972 1 986 063 1 619 488 2 133 200 Public grants/advance 1 619 488 2 133 200 923 827 990 129 Intercompany debt - - 1 976 001 2 098 280 Other account payable 1 991 295 2 098 280 6 344 288 7 207 672 Total current liability 5 435 755 6 217 543 9 387 874 10 861 261 TOTAL LIABILITY 8 479 341 9 871 132 159 178 822 157 108 681 TOTAL EQUITY AND LIABILITY 177 614 677 171 401 778

Asle Jøssang

Svein Ove Faksvåg

Karianne Toppe Angelskår

Inge Lønning

Olaf Gundersen


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Anna Minj

Øyvind Aadland Secretary General

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Trond Randøy


Strømme Foundation Cashflow (The indirect method)

Accounting Principles The financial statements of the Strømme Foundation (SF) are prepared in accordance with the Norwegian Accounting Act and the “Accounting Standard for Not-for-Profit organisations” from 2006, produced by The Norwegian Accounting Standards Board. This means that, in place of a traditional Profit and Loss Account, there is an Activity Account which should give the reader a better understanding of how Strømme Foundation has used the resources at its disposal in 2010. Allocation of costs Fundraising and Information As in previous years, all expenditure directly connected to personnel employed as fundraisers, and to solely fundraising activity, is classified 100% as a fundraising cost. This includes all direct marketing costs and all costs associated with our main fundraising products “Friend at Heart” and “Bridge Builder”. All expenditure on personnel and activity whose prime purpose is connected to information provision is allocated to purpose activity.

2010 2009 Result 2 740 623 8 529 680 Profit/loss from sale of securities -94 457 Ordinary depreciations 602 046 551 166 Adjustments in the value of securities The Regional Offices Changes in long term debt 386 836 -275 147 Strømme Foundation has four regional offices in West Africa (Mali); East Africa (Uganda); South America (Peru) and Asia Change in account payable -863 384 -4 395 852 (Sri Lanka) plus two satellite offices in Sudan and Bangladesh. Difference between pension cost and payments -703 490 276 835 The full cost of these offices will be allocated to activity as a purpose cost. Non cash income -306 123 Changes in restricted equity 802 903 -3 020 605 Support for program work from Head Office Changes in other current assets and liabilities 322 160 2 968 835 All the costs of the “International Section” are allocated to activity and are purpose costs. The section is to co-ordinate, support, Net cash flow from operational activity 3 287 694 4 234 332 evaluate and monitor all program work as well as liason with public funding bodies such and NORAD and UD. Acquisition of fixed assets -541 074 Other support functions at Head Office Property development Lillesand -44 520 -224 849 The basis of allocation starts with salaries, which are allocated according to an estimate of the amount of time spent on different Profit from sale of property activities. All admin costs that can be reasonably and consistently allocated to activity are allocated, while leaving those that can’t Proceeds from the sale of securities 2 000 000 as admin costs. Thus admin costs are now all costs relating to the Board of SF, all audit costs, membership of networks, consulAcquisition of shares in subsidiary -382 605 70 000 tancy, finance costs and 50% of staff costs in the admin and finance departments. The table below shows how the allocation has Net cash flow from investment activities -968 199 1 845 151 been made. Cash flow from financing activities - Note 1 Allocations basis Comments/ Operning balance of cash and cash equivalents 29 907 977 23 828 495 Department Total Admin Fundraising Allocations basis Net change in cash and cash equivalents 2 319 496 6 079 483 Closing balance of cash and cash equivalents 32 227 473 29 907 978 Some direct allocation Total Shared Services 13 894 189 6 518 464 2,635,803 4,739,922 to admin, rest allocated The balance consists of bank deposit and cash holdings on HO salary basis Unused overdraft facility 1 000 000 1 000 000 Communications Dept Costs 22,111,547 0 14,523,188 7,588,359 Allocation on the basis of activity Cash per balance sheet 32 227 473 29 907 977 International Section 8,679,369 0 0 6,400,369 All purpose Disbursement to Regional Office, Culture and Implementing Partners 85,860,990 0 0 85,860,990 All purpose TOTAL 128,267,095 6, 518, 464 17,158,991 104,589,640

Transactions in Foreign currency Costs outside Norway are recorded at the exchange rate relating to the most recent transfer from Head Office. All regional office accounts are recorded at Head Office using these rates. During 2010 SF entered into forward exchange rate contracts for US Dollar. Foreign currency income is recorded at the spot rate on the day of receipt. Income Income is entered in the accounts according to the gross method. Costs are entered as they accrue, and income when it is realised. Bequests or donations are recorded as income when there is indisputable confirmation of receipt. SF follows strict guidelines concerning earmarked funds, which ensures that these funds cannot be used for activities other than those for which they were donated without specific authority. The Board has set regulations for the handling of earmarked funds when a project is closed. Unused earmarked funds are shown as restricted capital in the balance sheet.


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Notes for Strømme Foundation 2010 Classification and Valuation of Balance Sheet Items Current assets and short-term liabilities contain items due for payment within one year after purchase. Other items are classified as fixed/financial assets or long-term liabilities. Current assets are valued at the lowest of procurement cost and actual value. Other accounts receivable are included in the balance sheet at face value after deduction of provision for expected loss. Items in foreign currency are valued at year end exchange rates. Short-term liabilities are recorded at the nominal amount at the time of accrual. Fixed/financial assets are valued at procurement cost, but are depreciated to actual value if the fall in value is not expected to be temporary. Long-term debt is entered at the nominal amount at the time of establishment. Furniture and Equipment These fixed assets are entered in the balance sheet and depreciated over their life span if the life span is more than 3 years and the cost is higher than NOK 50 000. Maintenance of fixed assets is charged to operating costs, while renovation or upgrading is added to the cost value and is depreciated along with the asset. Shares in Subsidiary Companies and Affiliated Companies Shares in subsidiary companies and affiliated companies are recorded at historic cost. Short-term Investments Short-term investments (shares and share units considered to be current assets) are valued at the lowest of average procurement cost and actual value in the balance-sheet. Received interest and dividend from the companies are entered as other financial income. Pensions Pension costs and the pension obligations are calculated according to the principle of linear earning based on estimated factors for the discount rate; future regulation of salary, pensions and contributions from Social Security, future earnings on the pension fund as well as the actuarial conditions concerning death rate, voluntary resignations, etc. The pension fund is valued according to actual value and is deducted from the net pension obligations in the Balance Sheet. Changes in the obligation due to changes in the pension plans are allocated over the expected remaining contribution period. The same applies to estimate deviations to the extent they exceed 10% of the greater of the gross pension obligations and the pension funds. Arrangements with net obligation are shown as liability and arrangement with net over-financing is shown as financial asset.

Note 2 – Public Sector Grants Donor Purpose 2010 NOK Norwegian Agency for Dvlpm. Coop. (NORAD) Development Programs 40 700 000 Norwegian Agency for Dvlpm. Coop. (NORAD) Information Activities 925 000 Norwegian Ministry of Foreign Affairs (MFA) Education Programs - Sudan Norwegian Ministry of Foreign Affairs (MFA) Restoration and Recovery - Sri Lanka 3 378 332 United Nations Children’s Fuind (UNICEF) Speed School Program - Mali 170 503 United Nations Development Program (UNDP) Education Intervention - Sudan 2 763 931 United States Agency for Intl Dvlpm (USAID) Northern Upper Nile - Education World Food Program (WFP) Northern Upper Nile - Education 98 860 Swiss Agency for Development & Co-operation Speed School Program - Mali 503 551 EU/Danish Church Aid (DCA) Food Security and Livelihood – South Sudan 236 363 Fredskorpset - Young Act Now Program - Hald International Centre 1 820 000 Fredskorpset - Norway South/South Exchange Program - East Africa 1 493 724 Fredskorpset – Norway South/South Exchange Program - Asia 238 757 Fredskorpset – Norway Feasibility Study – Holy Trininty Peace Village 55 950 Cultiva, Kristiansand Cultural Initiative Strømme Foundation 300 000 The Research Council of Norway Production of Microfinance presentation 666 666 MIC Foundation Bolivian youth musicians’ festival participation Total 53 351 637

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3 741 760 837 532 346 042 1 910 000 1 516 367 712 974 200 000 1 000 000 43 000 58 005 896

These grants are earmarked to specific projects and are shown gross including the administrative support element. Settlement with the donor is made in arrears once a year. Unused capital must be returned. The current framework agreement with NORAD (2009/2013) requires a minimum contribution of 10 % from Strømme Foundation, and allows up to 8% administration support on the project cost. For MFA funded programmes, the self-contribution requirement varies from 0 to 30% and the administration support varies from 0 to 8%.

Note 3 - Private Donations Donor Individual donations Fixed-term donations Events, schools and artists Testamentary donations Disaster Relief & Rehabilitation Total

2010 NOK 11 294 876 37 463 069 3 416 027 5 759 994 7 904 395 65 838 361

2009 NOK 9 209 033 37 654 398 4 014 007 2 865 603 53 743 041

Note 4 – Contributions from Other Organisations Institution Purpose 2010 NOK Lakarmissionen, Sweden Business Development Services, East Africa 457 141 Operasjon Dagsverk Shonglap - Bangladesh 3 835 220 Geneva Global, USA Speed Schools and Women’s Savings Groups, West Africa Geneva Global, USA Primary Education and Vocational skills, Bangladesh Geneva Global, USA Education and Empowering adolescents, Peru HALD international Centre ACT NOW partner admin support Erikshjälpen, Sweden Speed Schools, Mali 649 436 Capital for Good, England Speed Schools, Burkina Faso 39 830 Lakarmissionen, Sweden Food Aid, Niger 171 189 Total 5 152 816


2009 NOK 40 700 000 939 411 219 800 5 839 000

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2009 NOK 1 693 960 3 201 403 3 417 216 1 739 674 310 656 35 500 214 627 37 000 10 650 036


Note 5 – Salaries and Personnel Expenses /other allowances 2010 NOK 2009 NOK Salaries Norway 14 521 925 14 432 691 Social Insurance Payment 2 314 576 2 412 357 Pension Costs 902 052 1 839 649 Other Costs Norway 732 693 473 969 Salaries and allowances Regional Offices 8 941 731 8 272 143 Total 27 412 977 27 430 809

Note 9 Changes in Equity

The average number of employees at Head Office was 35 (34). This amounts to 32 man-labour years in 2010, compared to 32 in 2009. In the Regional Offices the average number was 67 (66), equivalent to 66 man-labour years, compared to 65 in 2009. The total salary cost for the General Secretary in 2010 was NOK 674 084 plus life insurance of NOK 2 803 and pension contributions of NOK 91 048. The Board members have received no remuneration other than travelling costs.

A substantial part of fund-raised capital is linked directly to projects. Many of these are also financed through public sector grants. After the allocation of public sector grants according to the terms of the cooperation agreements, the fund-raised capital is used to cover Strømme Foundation’s own share. From year to year the usage of fundraised capital for this purpose will vary. Balance of closed projects will be reallocated to other projects according to agreed guidelines. After covering the project costs for 2010, the capital earmarked for projects increased by 0.8 mNoK.

Audit Fees Strømme Foundation

Change in capital earmarked for projects Region 2010 2009 Asia 2 033 624 4,622,540 East Africa 2 203 060 3,124,197 West Africa 530 120 530,930 South America 2 041 033 1,939,599 Global 5 212 332 1,000,000 Total 12 020 169 11,217,266

Strømme Foundation 2010 NOK

Strømme Foundation 2009 NOK

194 000 123 500 317 500

230 000 86 000 316 000

Statutory Audit Fees Other certification (partner audit for public funders) Total Note 6 – Fixed Assets All figures in NOK


Cost price 01//01/10 Acquisitions/Disposals 2010 Cost price 31/12/10 Accumulated depreciation 31/12/10 Book value 31/12/10 The year’s ordinary depreciation Depreciation rate

Strømme Foundation Founding Capital Unrestricted equity Restricted Equity (SF projects) Restricted Equity (Microfinance) TOTAL EQUITY

413 810 0 413 810 -35 220 378 590 0 0 %

Business Premises Furniture and equipment 14 394 293 929 409 113 720 427 354 14 508 013 1 356 763 -6 154 003 -899 575 8 354 010 457 188 292 551 309 495 2 -10% 20-30 %

Total 15 737 512 541 074 16 278 586 -7 088 798 9 189 788 602 046

Strømme Microfinance AS is titleholder for the building site and part of the business premises. Since Strømme Foundation operates with an accounting principle to expense all equipment under NOK 50 000, the majority of the inventory is not included under fixed assets in the balance sheet. For the same reason fully depreciated assets do not appear here. All equipment in the Regional Offices is shown as project cost.

31/12/2009 Change During 2010 3,326,092 24 821 549 2 740 623 SF Result for 2010 11 217 267 802 903 See note below 106 882 512 SMF AS result 2010 146 247 420 3 543 526

31/12/2010 3,326,092 27 562 172 12 020 170 106 882 512 149 790 946

Change 2010/2009 -2 588 916 -921 137 -810 101 434 4 212 332 802 903

Note 10 a – Investments in Subsidiary Companies All figures in NOK Name Strømme Microfinance AS Mimeta AS

Number 10 500 26

Nominal value 1 000 5 000

Book value 10 500 000 130 000

Result 2010 4 607 674 516 639

Equity 31/12/10 37 329 847 1 074 104

Strømme Microfinance AS (SMF AS) with its main office in Kristiansand is a wholly-owned subsidiary company of SF. There is a subsidiary loan from SF to SMF As of 73 052 665. Mimeta AS was established in 2008 (18 month accounts shown in this report) with its main office in Kristiansand, and SF owns 65% of the share capital. Connected Parties With the exception of salaries and travel claims, there are no financial transactions with employees or connected persons in Strømme Foundation Norway.

Note 7 – Other Financial income/expenditure Financial Income 2010 2009 Outstanding loans to employees in the Regional Offices totalled NOK 183 920 at the year end compared to Other Interest income 427 317 236 782 NOK 305 135 at the end of 2009. These are included in other assets in the balance. Net Financial Income in the South 33 970 306 573 Other financial income 45 467 151 132 506 754 694 488 Note 10 b – Investments in Associated Companies All figures in NOK Net curr gains/loss in purpose Name Number Nominal value Book Value Result 2010 Equity 31/12/2010 Currency Exchange Gains 737 720 970 216 Hald International Centre BA 200 1 000 200 000 97 371 2 637 204 Currency exchange losses -715 501 -277 793 Net gains shown in purpose costs 22 219 692 423 Hald International Centre (HIS) was in 2004 officially registered as a company with limited liability with its Head Office in Mandal. Strømme Foundation’s share in ownership and votes is 1/3. The objective of HIS is giving courses and training for work within misNote 8 – VAT sionary organisations, for evangelism and development work, as well as for exchange-programs in different parts of the world. There is no debtor for refundable VAT. In 2009 the legislation relating to VAT HIS is a Not-for-Profit organisation and cannot give dividends to the owners. liability for voluntary organisations changed, and SF will be able to reclaim VAT but the full cost of purachases has been accounted for and reaclaimed VAT will be recorded as income. This means that there is an increase in recorded costs of close to 1m NoK compared to 2009.


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Note 11 – Pension Obligations The Strømme Foundation has a pension scheme that is comparable to the State pension fund. For 2010, the scheme covers 34 (35) people. The Foundation has also signed an agreement for an AFPplan. This agreement applies for 33 (34) people and is included in the list below. Actuarial calculations have been applied for calculating the obligations and costs in connection with the payment plans. The following assumptions have been used for the calculations: All figures in NOK

2010 2009 Discount rate 4.60 % 5.40 % Expected dividend 0.00 % 0.00 % Salary adjustments / year 4.00 % 4.50 % Yearly G-regulation / inflation 3.75 % 4.25 % Expected pension escalation 3.00 % 4.25 % Withdrawal probability AFP 25.0 %

Note 14 – Collateral Security Part of the business premises and the building site are collateral for the overdraft facilities (limit MNOK 1.0). Book value as of 31/12/10 is MNOK 4.9. Note 15 Long Term Debt and Receivables All debt and all receivables within Strømme Foundation are under 5 years duration with the exception of 73 435 270 NOK within “loan to subsidiaries” which is a sub-ordinated loan to Strømme Microfinance AS. In 2009 the figure was 70 052 665 NOK. Note 16 MICROFINANCE RESULT in Strømme foundation The figure here is the first quarters result in 2009 before the microfinance portfolio was transferred to SMF AS.

Secured system 2010

Secured system 2009

Un-secured system 2010

Un-secured system 2009

Gross pension obligations at 31.12 calculated at 17 231 691 15 343 987 667 104 1 217 083 - Value of pension funds at 31.12 calculated at -13 438 611 -13 114 610 0 0 + Deferred obligation in case of (loss) / profit -4 033 262 -2 726 657 33 282 356 956 = Calculated net pension obligations at 31.12 -240 182 -497 280 700 386 1 574 039 + Social Insurance contributions -33 866 -70 117 98 754 221 939 = Pension obligation as at 31.12 274 048 -567 397 799 140 1 795 978 Net over-financing 274 048 567 397 Net contractual obligation 799 140 1 795 978 The year’s pension accrual 1 421 859 1 561 868 9 584 56 953 + interest cost 817 295 910 688 43 928 68 550 + administration cost 101 019 101 016 0 0 - Return on capital -772 512 -728 122 0 0 = Net pension cost 1 567 661 1 845 450 53 512 125 503 + Social Insurance 221 040 260 208 7 545 17 696 + Actuarial loss (gain) 96 625 274 901 (20 065) (41 268) = Total pension cost 1 885 326 (655 050) 101 931 The amount is included in Salaries and personnel expenses in the accounts Note 12 – Property under development In 2002 the Strømme Foundation took over a property in Lillesand which had been left to us as a legacy gift. The property was valued and entered into our accounts at MNOK 2.5 in 2004. Strømme Foundation has chosen to retain the property and seek to regulate it for residential use, and costs have been incurred in connection with creating these plans. Strømme Foundation entered into an agreement in April 2010 with Kaspar Stømme Eiendom to create a jointly owned company (Luntevika Eiendom AS) with the purpose of maximising the value of the legacy by developing the property.

Consolidated Accounts Note 17 – CONSOLIDATED Salaries and Personnel Expenses /other allowances Salaries Norway Social Insurance Payment Pension Costs Other Costs Norway Salaries and allowances Regional Offices. Total Audit Fees Statutory Audit Fees Other certification (partner audit for public funders) Other non-audit services Total

2010 2009 568 073 613 902 176 647 123 657 153 359 153 443 2 195 421 1 271 423 3 093 500 2 162 425 25 459 325 20 991 757 3 674 648 6 753 795 29 133 973 27 745 552 32 227 473 29 907 977

2009NOK 15 817 360 2 493 850 1 858 162 473 969 9 337 291 29 980 632

2010 NOK 425 264 123 500 118 899 667 663

2009 NOK 334 733 111 505 15 925 462 163

In addition to the employees stated in note 5 there are an additional 17 employees in the group, 2.5 of which are in Norway. Note 18 Consolidated purpose activities The total purpose activities in the consolidated accounts are reduced by the grants that have been given from SF to SMF AS and included in the loan portfolio. Note 19 Total Equity Strømme Foundation


Founding Capital Note 13 – Liquidity and Restricted Assets Employees tax deducted account Restricted projects and public grant accounts Memorial Fund Restricted funds at the Regional Offices Total Restricted bank balance Free funds available in Norway Free funds available at Regional Offices Free available funds Total liquidity

2010 NOK 16 337 214 2 549 581 976 883 732 693 10 810 125 31 406 496

Change During 2010


Unrestricted equity

30 906 295

13 393 838

Restricted Equity (SF projects)

11 217 267

802 903

Restricted Equity (Mimeta and Microfinance) 121 190 783 Mimeta taken as equity in 2009 -1 157 970 Mimeta Minority Interests in 2009 Currency Adjustments (SMF AS) -3 951 821 Change in Loan loss provision (SMF AS) TOTAL EQUITY 161 530 646


Consolidated Result for 2010 See note 9

-4 484 307 Adjusted SMF AS result 2010 1 157 970 18 248 -2 087 857 -1 196 105 7 604 690

3,326,092 44 300 133 12 020 170 116 706 476 0 18 248 -6 039 678 -1 196 105 169 135 336

In addition there is 2.4m NOK in Mimeta and 36.8m NoK in SMF AS.


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Smiles from the 2010 SF magazines

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(Strom me F o undati on)

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Pricew sand, May 2 made ial 6, in acc aterho ordanc useCo 2011 e opers AS 16 .06.11


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os e s o nly.



Strømme Foundation Board and Council Members 2010 The board; 31 December 2010 Geir Magnus Nyborg – Chairman Svein Ove Faksvåg Liv Næss Inge Lønning Olaf Gundersen Trond Randøy Anna Minj Deputy Representatives Karianne Toppe Angelskår Asle Jøssang Anja Elise Ø. Husebø

Council members; 31 December 2010 Kurt Mosvold - Chairman Hanne Grete Brommeland Larsen Ansgar Gabrielsen Arne Olav Øyhus Dagrun Eriksen Ove Gusevik Eli Beate W. Hillesund Rannveig Rivedal Nilsen Dag Nordbø Hege Wallevik Vidar Blakseth Gunnar Thelin Hilde Strømme Gunnleik Seierstad Jan Oddvar Skisland Knut Vollebæk Gunvor K. Andresen Election committee; 1 January 2010 Gunvor K. Andresen Ansgar Gabrielsen Kurt Mosvold

Strømme Foundation is member of the Norwegian Control Committee for Fundraising. Strømme Foundation is a signatory to the Code of Conduct for the International Red Cross and Red Crescent Movement and NGO’s in Disaster Relief. Editor: Egil Mongstad, Strømme Foundation Lay-out and graphic design: Oddvar Paulsen, Strømme Foundation. All photo: © Strømme Foundation


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Skippergaten 3/5 • Box 414 • N-4664 Kristiansand Norway Tel +47 38 12 75 00 • Fax +47 38 02 57 10 • Org. no 952 002 139 E-mail: •

Strømme Foundation Annual Report 2010  

Strømme Foundation Annual Report 2010

Strømme Foundation Annual Report 2010  

Strømme Foundation Annual Report 2010