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STR ØMME FOUNDATION ANNUAL REPOR T 2014


Contents

Word from the Secretary General 3 International department 4-5 2014 Programme information 6-7 Support to projects 2014 by country and thematic goal 8-9 Communication and Fundraising 10-11 A World Free From Poverty 12-13 Activities in Norway 14-15 I learn (Education) 16 I work (Microfinance) 17 Anti-corruption 18 We must never give up the fight against corruption 19 Rights Based Approach 20-22 Other programmes 23 Report from The Strømme Foundation Board of Directors for 2014 24-26 Activity account and Balance sheet 27 Purpose capital and liability 28 Cashflow 29 Accounting principles 29-30 Notes 30-37 Auditor´s report 38 Board and council members 39 Facts behind the figures 39

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Word from the Secretary General

Acknowledging what is done and to move forward! This report is a result of a joint effort by an entire Strømme team, partners and donors. Strømme Foundation is relatively small compared to both national and international nongovernmentalorganisations (NGOs). We aim at having a catalytic role in development. We aim at fighting poverty together with the unprivileged rightholders, who are denied the basics in life. We raise funds, and operate through local partners. We capacitate our partners locally, and strive for sustainability in the communities where people are struggling due to poverty.

we still have to commit ourselves to “move for more”. Are our education schemes relevant for preparing people to have an income-generating job? Are the financial services we render an incentive for the most poor to be able to “build a ladder” and climb out of poverty? Are we advocating for the basic rights of the rightholdersin the “quarters” of the duty bearers?

In light of our basic value that underlines the unnegotiable dignity of each woman and man, we are very pleased with having reached out to more than 600 000 individuals in 2014. People have been enrolled in schools; have been served by our financial services or been empowered through different means of our capacity building efforts. However, the big question is whether we have had an impact on their lives and their communities. Have we met poor people’s aspirations and contributed to sustainable hope for the future? Have local resources been mobilized to create means and ways to overcome poverty through interaction and value creation? Impact implies creating hope for the future and confidence in establishing a sustainable livelihood.

“Job creation” (Jobbskaper) has become a very good description of our Road map. Strømme Foundation will intensify the integration of developing relevant skills and design our financial services to create jobs and job opportunities.

In 2015 we are concluding the Millennium Development Goal (MDG) initiative, and the process of defining the post 2015 Sustainable Development Goals (SDG) are underway. With all respect, and acknowledging successes in meeting certain targets of the MDGs, there is still a long way to go. We are daily faced with an unjust world, “the haves” and “the have nots” both within nations and between nations and regions. In Strømme Foundation, we want to underline the sustainable aspects of development, reflected in our right based approach. Together with our partners and donors we work for more than outcome, we strive for impact. In presenting this report that reflects satisfactory achievements,

In 2014 we have worked through the first year of the 5 year Road map (Strategic plan). In this report we are sharing our results and accomplishments with you.

This is in line with The Norwegian Governmental Development policies on education (Meld. St. 25 (2013-2014) «Education for Development» , and on business creation in the white paper report to the Storting, (Meld. 35 (2014-2015) “Working together: Private sector development in Norwegian development cooperation” Norway’s contribution to the definition of the SDG’s will definitely reflect these concepts. As a civil society organisation we will continue to play a catalytic role. And together with our partners in the communities, we will mobilize the local resources to obtain sustainable/ impacting results!

Øyvind Aadland Secretary General

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International department - Strengthening Civil Society and Quality Education

Starting a new strategic period, our focus has been on making “ladders” for poor people to climb out of poverty by prioritising a rights-based approach, results-based management, maximising impact and innovation. Strømme Foundation (SF) is ensuring quality education for disadvantaged groups in Bangladesh by establishing almost 180 new Shonglap and Prottoy Centres with more than 4,200 participants. Almost 12,500 Shonglap participants received vocational training in different trades. In 2014 Shonglap participants stopped 260 early marriages and 141 cases of dowry. Almost 500 Samvad centres were in operation in Nepal. 75% of the centres were for girls, the remainder for boys. 10,500 adolescents graduated from the programme and almost 1100 acquired basic literacy skills, while more than 800 returned to school. To maximise impact, all regions now apply a holistic approach to programming within their own specific context. West Africa has, for example, reduced the number of partners from 23 to seven. In the school year 2013-14, the Speed School Secretariat coordinated the implementation of 460 centres across Mali, Burkina Faso and Niger. The programme reached 12,694 children and 83 % of the learners completed the end-of-year exam, enabling transfer to formal primary schools. The Community-Based Organisations (CBO) programme in Sri Lanka is strengthening civil society. 9000 people were organised into 951 Small Groups, of which half are organised in 38 newly formed CBOs. 471 families have developed Family Development Plans (FDPs).

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In South America economic interventions have gained importance as a decent family income is key in achieving a stable home environment for children, thus promoting their education, creating good role models and preventing violence. The synergy between the economic, educational and antiviolence interventions, together with an increased geographical focus, is expected to improve the impact and sustainability of the interventions. Strømme Microfinance East Africa (SMFEA Ltd) partner institutions provided 1,535,254 people with the opportunity to access financial and non-financial services, 61% of the clients were female and almost two-thirds of the clients are based in rural areas. In addition to standard microfinance in Asia, SF has had to tailor-make programmes for 671 war returnees and extremely poor families in Sri Lanka, and engaged in Talent Financing in Bangladesh with 3,250 participants who employed more than 10 000 people. The Land Redemption Loan product in Bangladesh has enabled poor families to purchase land. During 2014, 206 acres of land were acquired and used for the cultivation of various crops. Community-Managed Micro Finance (CMMF): In East Africa CMMF is the fastest growing programme with the largest outreach (mainly women and girls) adding 900 new CMMF groups and 102 new clusters. The West Africa programme started with reduced activity but became fully operational during the year, with 1282 groups and 29,128 members reaching outreach numbers and total savings above target.

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2014 Programme information

What we focus on?

In West Africa, Strømme Foundation focused on four objectives: 1. Ensure quality education for disadvantaged groups 2. Enhance access to sustainable income sources 3. Strengthen public sector and civil society 4. Strengthen social protection for children in Primary School who are exposed to violent environment in school

In East Africa we focused on four objectives: 1) improving primary school enrolment, attendance, performance and completion rates 2) increasing the literacy level and life and technical skills of adolescents, youth and adults with little or no formal education 3) reducing the vulnerability of children at risk; and 4) increasing families’ standards of living and financial security.

How do we work?

• • • • •

Speed Schools Speed Schools 2 Vocational training Active literacy Savings for Change

• Basic education • Alternative education, South Sudan • Bonga: skills for life • Community- managed microfinance • Institutional Micro Finance

• • • •

Number of local partners reduced from 23 to 7. 12,694 pupils, 83% of the Speed School learners administrated by the Speed School Secretariat completed the end-of-year exam. 23 Active Literacy Centres ran adult literacy courses for 536 women. Total savings of CFA 148,288,705 (1.8 mill NOK) which is lower than last year due to the delayed start-up of activities.

• SF’s partners work with 33 government- aided schools improving the quality of education for more than 28,000 pupils. • 23 Early Childhood Development Centres with 2,278 children enrolled. • 148 Bonga Centres were established across the region, with 3,888 participants. • CMMF has recruited 25,376 new members, of which 72.5% are women in 102 clusters. • 50,975 microfinance clients have been trained in financial literacy.

Examples of what was achieved

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EAST AFRICA

WEST AFRICA

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ASIA

NORWAY

SOUTH AMERICA

In Asia, our programmes aimed to target the same households with multiple programmes in order to maximise impact. The four main objectives were: 1. Empowerment of adolescent girls and boys 2. Supporting basic education 3. Strengthening civil society and civil society 4. Livelihood support

In South America, Strømme Foundation focused on three objectives: 1. Ensure quality education for disadvantaged groups 2. Enhance access to sustainable income sources 3. Social protection for children and adolescents living in violent environment

In Norway, Strømme Foundation’s main objectives are to raise money, to increase knowledge about poverty and poverty eradication, and to contribute to people’s education about poverty. We also work to advocate for the poor among politicians and decision makers, and contribute to the national debate about issues related and connected to development aid.

• Shonglap, Samvad and Prottoy Em powerment Education for Adolescents • Quality basic education • Strengthening community-based organisations • Institutional microfinance

• Improving the quality of primary education • Early Childhood Development • Community-Managed Microfinance • Institutional micro finance

We work to raise funds through working with schools, organisations, groups, institutions and individual donors. We also work with several corporate and institutional donors, and through different campaigns and fundraising events. We work with media to raise awareness about poverty and poverty eradication. Through editorials and opinion articles, interviews and articles, and our own media, we work to make awareness, knowledge and interest for development work.

• During 2014, SF Asia reached more than 260,000 beneficiaries. • Almost 12,500 Shonglap participants received vocational training in different trades. • More than 10,500 adolescents graduated from Samvad in 2014. • The Quality Education Programme is operated in 72 Primary Schools and 16,000 pupils were supported. • One of our microfinance partners in Sri Lanka reported that 63% of the families in the programme that were living in extreme poverty had moved beyond living on less than 1 USD/day.

• Intercultural Bilingual Education (IBE) Program: SF’s partners are in dialogue with the local and national education authorities to transfer the method ologies and didactic material to local schools. • IBE Students: 46% reached a satis factory level in language and 50% in math, which is 160% above the provin- cial average in language and 7 above provincial average in language scores. • The hydroponic green forage project, which is an innovation within the whole value chain development, has been adopted by 200 families.

• Successful “Job Creator” campaign recruiting new donors and attracting media attention • Increasing the number of fixed term donors • Cooperation with 49 companies and corporates • Several opinion articles published in national media • Help for Self-help award to focus on education in Mali. • Cooperation with several primary and secondary schools, and folk high schools.

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Support to projects 2014 by country and thematic goal Including distributed regional office capacity building Figures in NOK 1000

GLOBAL Microfinance

Education Act Now MIMETA Anti Corruption Global programmes

-

-

Capasity Building Advocacy 1 890 500 548 2 938

Social protection

Total

-

1 890 500 548 2 938

No. of No. of Partners projects 1 1 - 2

1 1 2

Figures in 1000 NOK*

WEST AFRICA Education Micro- Capasity Social Total finance Building protection Advocacy Mali 11 972 Burkina Faso 4 814 Niger 3 379 West Africa 20 165

1 894 1 144 1 365 4 403

1 451 436 827 2 714

-

No. of Partners

No. of projects

11 3 2 16

12 3 2 17

15 317 6 394 5 571 27 282

Figures in 1000 NOK*

NIGER

MALI

BURKINA FASO

PERU BOLIVIA

SOUTH AMERICA Education Micro- Capasity Social Total finance Building protection Advocacy Peru Bolivia South America

3 153 - 3 153

1 598 931 2 529

506 733 1 239

1 052 2 668 3 720

No. of Partners

6 309 4 332 10 641

5 5 10

No. of projects 9 6 15

Figures in 1000 NOK* *) ex. numbers of partners and projects

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Total

Education

Microfinance

Capacity Building Advocacy

Social Protection

No.of partners

No.of projects

56 631

19 281

21 743

6655

86

111

Grand total - support to projects in 2014

NOK

104.310 112 069 604 971

Number of right-holders under 18 years Total number of right-holders

ASIA Bangladesh Sri Lanka Nepal Myanmar Asia

Social Education Micro- Capasity Total No. of No. of finance Building protection Partners projects Advocacy 7 464 3 004 2 436 - 12 904 10 13 865 2 513 1 509 1 162 6 049 8 9 6 083 382 2 310 117 8 892 10 10 - - 103 - 103 - 14 412 5 899 6 358 1 279 27 948 28 32 Figures in 1000 NOK*

NEPAL

MYANMAR

BANGLADESH

SOUTH SUDAN UGANDA

SRI LANKA

KENYA

TANZANIA

EAST AFRICA Education Micro- Capasity Social Total finance Building protection Advocacy Uganda Tanzania South Sudan Kenya East Africa

5 636 2 275 9 711 1 279 18 901

2 945 1 194 1 041 1 270 6 450

2 655 61 5 395 383 8 494

911 12 147 130 3 660 - 16 147 615 3 547 1 656 35 501

No. of Partners

No. of projects

13 5 8 4 30

16 5 10 4 35

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Communication and Fundraising

The year 2014 ended with a total result of 75.7 million NOK. We are pleased, and would like to thank all our donors, partners and staff for making this possible. Strømme Foundation is honoured by the extraordinary generosity of our donors and partners who provide financial resources for our programmes around the world. 2014 turned out to be a good fundraising year for Strømme Foundation, with a result of 75.7 million NOK. The biggest achievement of 2014, however, was continuing to recruit more fixed term donors than we lost. This was our main focus and goal last year, and it is very gratifying to reach that goal. We raised 2.6 million NOK above the original budget. The areas in which we achieved better than expected were with single donations and legacies.

There was some sick leave among the staff in the department, which resulted in an extra push from our existing staff. It is therefore particularly pleasing and encouraging to see that the final result of the year is so positive. Recruitment of private donors A major event for Strømme Foundation was the ‘Job Creator’ campaign in September. This year we launched it in Stavanger, Sandnes and Jæren. The campaign aims to secure fixed-term donors, as well as promoting our work in the local community. In total the campaign generated 640 new donors. The campaign managed to finally turn around the negative trend of the amount of donors decreasing. A number of companies also donated to the campaign. The competition in the market for child sponsorship programmes is still tough, but we are pleased to see that we maintain our position in the market. We are number two among the organisations in Norway in terms of the average amount of money given per donor. Last summer, we achieved good results from our summer recruitment campaign and 370 new donors were recruited. This work has been led by former Act Now students, and they have also been great ambassadors for our organisation throughout the summer. Major Donor Our work towards the corporate sector and trusts continues with vigour. The loyalty and enthusiasm we experience from our partners is very encouraging. An important part of our work aimed at adolescents is the close collaboration with schools and Folk High Schools. We have worked closely with many of these schools for years, and we see a high level of commitment among pupils, students and teachers. A new activity this year has been a lottery, initiated because we received a gift of six electric cars from Sparebankstiftelsen Sparebanken Sør to be used to increase our income. Half way through we have recruited 700 new fixed term donors, and also held an ordinary lottery which resulted in almost 600 000 NOK.

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Strømme Foundation Income 2014 Category 2014 2013 Public Sector Grants 70 945 55 837 Grants from other Organisations 17 385 20 016 Individual Donations 8 665 8 610 Fixed Term Donations 38 362 38 299 Corporate Sector 11 438 11 085 Schools, events etc. 3 320 3 816 Legacies 5 164 1 165 Financial Income 3 696 1 178 Other Income 7 343 506 TOTAL 166 319 140 512

Grants from other Organisations 17.385

Individual Donors 8665

NOK 1000

Fixed Term Donations 38.362

Public Sector Grants 70.945

Corporate Sector 11.438 Schools. events etc 3320

Other Income 7343 Financial Income 3696

NOK 1000

Legacies 5164

In 2014, several major partners that we have cooperated with for many years signed new and increased contracts with Strømme Foundation. Contracts of this size are of enormous importance to us, and it is encouraging that partners decide to continue their cooperation with Strømme Foundation.

In order to gain the media’s interest on development and issues related to poverty eradication, we work strategically to place such issues on the agenda. Press releases, debates, opinion articles, interviews and social media are among some of our chosen approaches to gain access the public.

Media & Public Relations One of Strømme Foundation’s main objectives in Norway is to contribute to increased awareness of development issues. In media, and in general, international development work does not reach the headlines. We aim at being a voice for the poor and oppressed, and to raise our voices on their behalf when needed.

Our media coverage in 2014 includes 15 opinion articles and debates in different local and national newspapers. Thematically these are articles targeting issues like land grabbing, the difficult way forward for peace in South Sudan, and unemployment among adolescents in Africa. During the ‘Job Creator’ campaign, we were very satisfied with the media coverage, with as many as 43 features, some of which made the national news.

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Great things can happen when many share one common vision! In Strømme Foundation our Vision is:

A World Free From Strømme Foundation is inspired by the Christian view of God´s creation and the absolute dignity of man. We strive to approach people with openness and respect, regardless of religion, ethnicity, caste, gender, disability or other minority status. Strømme Foundation is committed to empowering people so that they overcome the root causes of poverty.

In Strømme Foundation our Mission is:

To Eradicate Poverty With a deep respect for human dignity and conviction about the value of equitable partnership, Strømme Foundation works to empower the poor so that they take charge of their own lives and communities. We strive to facilitate change, not only by providing material needs, but also by creating opportunities for people to utilise their talents in a value-based development process. Strømme Foundation works through local partners and through two intervention approaches – microfinance and education. A major focus for our work is to facilitate for people so they can create their own jobs.

Human Dignity

We believe in the inherent, inalienable rights of every individual. At Strømme Foundation, this is considered to be the most important human right from which all other fundamental human rights are derived.

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Poverty

Microfinance and Community Managed Microfinance (CMMF) Microfinance creates access to sustainable income sources and provides a means by which the poor can act upon their decisions. The focus here is to provide access to financial services such as loans, places to save, insurance etc. Capacity building of the participants and clients is also an important component of the programmes in question. The microfinance intervention will use the methods of both institutional MF as well as CommunityManaged Microfinance.

Education

Education helps people develop the attitudes, skills and knowledge needed to make informed decisions concerning the development of themselves and their communities. Our main focus is on facilitating poor children at risk by strengthening the fostering environment within the local community. Interventions are carried out within primary education, adult literacy, vocational skills/life skills and awareness building, and with a special and paramount focus on education for girls.

Our Values Justice

We have a drive to fulfil not only legal, but also social rights of communities and individuals in creating a more just distribution of society’s resources and power.

Solidarity

We identify empathically with the plight of marginalised and discriminated groups.

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Activities in Norway Major Donor Group My name is Rune Mørland and I work as Head of Major Donor Group in Stromme Foundation. My team of three and myself are responsible for motivating the corporate sector, schools, and other networks to engage themselves in our work in eradicating poverty. Philanthropy, Corporate Social Responsibility (CSR) and Social Entrepreneurship are keywords when we invite companies, corporations and groups to take part in our vision: A world free from poverty.

In 2014 we saw increased funding, mostly through the re-signing of a number of partnerships, but also with new companies and philanthropic foundations. Our work with schools and networks has managed to maintain their partners but also focused on building relations that will increase funds in 2015. One of the things that is important to Strømme Foundation and in relation to our work with companies, schools and other networks is to communicate the reality of life and the situation and challenges in the areas we work in. We focus on the human value and the possibilities there are by investing in people’s lives. By focusing on dignity and opportunities, we also bring an added value to our partners. A value that sets positive footprints both in our projects as well as with our Norwegian partners.

Network group Strømme Foundation’s Network Group’s target market is mainly young people. The group’s long-term goal is to create involvement for adolescents that will persist beyond adolescence and into adulthood. The network also does fundraising through schools, and has a strong focus on public education to the Norwegian public, groups, schools, institutions and so on. The network’s main objective is to inspire schools, kindergartens, associations / clubs and churches in North / South issues. We do this through lectures and seminars, helping with fundraising campaigns and visiting schools together with our Act Now exchange students from both South and North. We also arrange study abroad trips to our projects in the South, which has proven to create increased involvement among participants. The Network Group is also the bridge between Strømme Foundation and our youth organisation, RE:ACT. The Group helps with guidance, seminars, tutorials and inspiration for the youth organisation’s international work. RE:ACT itself is also very engaged in public education in Norway.

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Foto: Øystein Johanson

In 2014, there were 49 small and large companies and corporations supporting our work through short or long-term partnerships with Strømme Foundation. In several companies, the employees also Sissel Leire and Kurt Mosvold, two Major Partners contribute with their own personal involvement, in Strømme Foundation on a visit in Nepal. giving an amount of their salary to the project their company supports. We have also seen an increased number of single donations from different businesses, corporations and small industries over the years


Media and Public Relations Media attention and coverage about development issues, and development education is a prioritised part of our work in Strømme Foundation. We work strategically with media to inform the public about poverty, the root causes of poverty, what can be done to fight poverty, and what is actually done to eradicate poverty. One of our aims is to change people’s perceptions of people living in developing countries. Our information work is also about bringing forward the hope, prosperity, development, economic growth and the changes taking place in these countries. However, at the same time it is also about the fact that the majority of poor people are now living in middle-income countries, are exposed to climate change, and have to relate to all the new and difficult challenges this brings forward. We write opinion pieces, participate in debates, write press releases, advocate and raise our voice for people living in poverty. We want to advocate for people when and where we see that injustice is being done, and we will raise our voice in solidarity with the poor people. It is still necessary to challenge people, the decision makers and our politicians on decisions taken, and on global and international politics. To raise attention about development issues, Strømme Foundation awards the annual Help for Self-help award. The award is an international prize given to a person or an organisation that has done outstanding work in the battle against poverty and that promotes the Help for Self-help ideology.

Individual donors My name is Gro Justnæs Kiledal and I am the Head of Individual Donors in Strømme Foundation. We are nine persons in the team, which is equivalent to 7.3 man-labor years. The individual donor section aims to motivate, inform and take care of the interests of the individual donors. Newsletters, website, magazine, direct mail, Facebook and other social media are some of the channels we use to communicate with our donors. In 2014 we had almost 20 000 individual donors supporting our work. Most of them give their support through fixed term donations sponsoring one of our donor programs: Friend at Heart, Bridge Builder, Poverty Buster or Job Creator. Others give single donations through direct mail, our website or our magazine. Still others arrange charity events or ask that their anniversary gifts go to Strømme Foundation. We see a variety of creative ways to donate to our work. Over the past two years, we have worked hard recruiting new donors, especially after we launched the Job Creator concept in 2013. The negative trend of losing more regular donors than we managed to recruit has now been reversed. 2014 was the second consecutive year that we increased the number of regular donors. That is truly motivating. In 2014, we ran a Job Creator recruiting campaign in Stavanger, and signed several hundred new Job Creator donors. In 2014, we also received a large number of single donations from the corporate sector. 2014 was also the year that we almost doubled our income from “ethical” Christmas gifts sold through our website. We are so thankful to our donors. All of them make a difference.

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I learn…

Education in South America

For Strømme Foundation, education is a key intervention in our fight against poverty. Our target groups are especially young girls, school dropouts, and women. Adriana Delgado Herrera (40) is Strømme Foundation’s Regional Program Officer in South America. She is an anthropologist from Vrije Universiteit Ámsterdam and has worked in Strømme Foundation since January 2014. She is married and has a four year old daughter who is in kindergarten. - As a mom, I like to spend time with my family especially in the countryside. I work in Strømme Foundation because I share the dream of eradicating poverty, says Adriana. Stories of change Adriana’s work brings her out in the field to meet the people with whom we are working. - It is very encouraging to meet the children. We see changes in their lives; we see motivated children and children who grow with their new opportunities and challenges. Because of our education approach, we see that these children have become positive leaders in class, at school and at home, promoting an attitude of nonviolence. Before, it was often the case that some of these kids were evicted from school because the teachers did not believe they could change their violent behavior. Today they are role models for the rest of the children. I have also meet teachers who, because of this program, have found new joy and motivation in teaching. I have also met with mothers and fathers who have changed their attitude and who do not use violence as a tool to educate their children anymore, says Adriana.

cation for children. She also underlines our work to reach out to those children who have missed education, through technical, vocational and productive training. This will allow them to develop a labour skill, and start some income generating activities. Reach to more people — We also promote bilingual education to vulnerable groups living in the mountains, and we have an early childhood education model that proposes modification and promotion of positive parenting, says Adriana. She also underlines the education programme for women, to strengthen their knowledge on health, nutrition and good treatment, affecting children’s learning, care and socialisation processes. In addition, she underscores our work with regional, local authorities to strengthen them to manage efficient actions, care, and protection programmes for children between 0 to 5 years old. — We have developed and implemented different education models. Our hope is that local governments can replicate these models, and incorporate them into their own education plans so they can expand and reach out to more people, says Adriana Delgado Herrera, Strømme Foundations Regional Program Officer in South America.

Comprehensive education — In Strømme Foundation in South America, our approach to education goes far beyond traditional cognitive and formal education. We focus on comprehensive education because it will give a wider approach to real development and autonomy, says Adriana. She emphasises that Strømme Foundation’s main objective is to provide a high quality formal edu-

Adriana Delgado Herrera.

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I work…

Microfinance East Africa Limited

37 year old Cressy Musasiizi is one of the investment officers at The Strømme Microfinance East Africa Limited (SMF EA Ltd). He joined our team about a year and half ago after having worked with Pride Uganda and Oiko credit over the previous 11 years. Cressy developed an interest in microfinance during his last year of high school back in 1998. He interacted a lot with people who kept sharing about their lives, being transformed through easy access to financial services. Many people who had been struggling in poverty became able to build better lives for themselves and their families. At university, he pursued an associate Bachelor’s degree, and later a diploma in Business Microfinance. Inspired In 2013, Cressy came across a newspaper advert for a job vacancy at SMF EA Ltd. – I had heard so much about SMF. I was working at OIKO credit and the approach was almost similar. I applied for the job and I am happy to be part of the team now, recalls Cressy and says that he got so inspired by SMF’s approach of building capacity of partner institutes and staff through exposure and training. A platform for the poor Through microfinance, outreach to underprivileged people is broadened and widened. Broaden; we look at the number of people, in Width; the geographical distribution of microfinance institutions and in depth; we look at how far microfinance goes in transforming people’s lives from poverty to independence. It gives a platform for the poor to have access to financial services. The enterprising poor are able to grow their businesses, feed their children, build better homes and take their children to school. – Unlike banks that charge a lot of interest and place many expectations on the borrowers before issuing loans, microfinance targets the rural poor. In addition to credit SMF EA partner institutions offer non-financial services like training, insurance and saving services, says Cressy. More people SMF EA Ltd works through microfinance institutions that work among people with low income. Two of the key minimum criteria are that the institution must have at least 500 borrowers and must have been operational for two years. SMF EA Ltd first of all enhances the institutions’ reasonable source of funding in order to reach out to more people. Secondly, we build capacity of the institutions through putting up operational

Cressy Musasiizi.

systems and training them in corporate governance. Thirdly, we give technical assistance in different areas of microfinance. – Since I came to SMF EA, I have seen an increased sustainability of the institutions that we support. Technical support and capacity building given to the partner institutions have enabled them to efficiently manage their operations. Football Cressy Musasiizi is married to a young lady who lives and works in his hometown of Kabale in Western Uganda. – Whenever I have some free time, I enjoy watching and playing football. My English team is Liverpool (Never walk alone…). He laughs. I also watch movies and anything interesting especially during the weekdays when I am far from my family, says Cressy.

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Anti-corruption

Strømme Foundation is in the process of developing an anticorruption strategy in dialogue with NORAD. The strategy will be closely linked to SF’s strategy for strengthening the public sector and civil society, and is underpinned by SF’s financial principles and zero tolerance for corruption. In line with SF’s rights-based approach, the focus is on mobilising and empowering rights-holders, and challenging duty bearers in a constructive and results-oriented manner. The strategy will encompass internal measures that SF is taking to prevent corruption, as well as the wider efforts of SF, together with local partners, to raise awareness about and fight corruption in the countries where we operate. As part of this work, a three-day workshop was organised with key staff from the Head Office and regional offices in Kristiansand in August 2014. The focus was on sharing ideas and best practices with the purpose of developing a framework for the strategy with outcomes and indicators. Based on the conclusions drawn from the workshop, the development of the regional strategies is now continuing and we are planning to finalise SF’s new anti-corruption strategy in 2015. Strømme Foundation’s anti-corruption regulations can be found on the internet site www.strommestiftelsen.no/en/ whistleblower, and show how our policy emphasises our zero-tolerance of corruption and the misuse of funds. The countries where SF is working are all experiencing significant and widespread corruption. And here there is a strong coherence between the level of corruption and the level of development; corruption and mismanagement of funds are hinders for development. Thus, we believe that by curbing corruption we will strengthen the fight against poverty.

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Fostering transparency and accountability among its partners and own staff through support, training and workshops. Partner assessment tools aimed at capacitating partners and minimising risk, Regular and close follow-up of partners’ financial and programmatic management Whistle-blowing mechanisms where suspected cases of corruption, discrimination or any other unwanted events can be reported.

In 2014 we encountered various different cases. In South America, an anonymous whistleblowing message resulted in a forensic audit of a partner; however, fraud or corruption was not disclosed, and the case was closed. In Asia, a partner had misused funds, and after a forensic investigation, SF refunded the amount of NOK 16.900 to the Ministry of Foreign Affairs. In East Africa, repeated weaknesses in a partner’s financial management and reporting resulted in an extended audit, which revealed weak financial management, but no mismanagement or fraud. As we had worked over a long time to improve the financial management, with no positive results, we decided to end the partnership. Strømme Foundation will continue focusing on building effective financial controls and anti-corruption measures amongst both our partners and staff.

Strømme Foundation is applying a wide range of tools in its anti-corruption work among its partners and internally:

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We must never give up the fight against corruption!

Corruption is a universal mechanism and phenomenon, which has always been there. Even the Roman Emperor, Julius Caesar, used to pay his oracles to give him the answer he most wanted. The world’s most well-known corruption hunter, Eva Joly, a Norwegian – French magistrate who specialises in financial affairs and is now a member of the EU parliament. She has worked with corruption issues over the last two decades – and unfortunately she is not optimistic about the future. — Corruption is the misuse of power. The nature of corruption is to serve the interests of the person who is using his power in his own interest – not in the interest of the whole community or society. It is very easy to be seduced by this mechanism. Actually, we see more corruption now than any time before. It is not a good sign. However, even though it may seem as if the battle against corruption is a lost cause, we cannot give up this fight, says the Eva Joly. Her most famous case is possibly the fight against the oil company Elf Aquitaine, which led to the conviction of dozens of people in the oil industry. At the European Parliament she pursues her fight against corruption and in particular in her role as Vice Chair of the special Committee on Tax Rulings — It is hard to understand that it is impossible to account for between 10 – 15 percent of the total EU budget. This money just disappears. This gives us an indication of how difficult it is to fight corruption, says Joly. She emphasises that in the globalised world in which we live, it is easy to whitewash money and to channel this money back into the official clean economy. — In the global economy, we can see how money is floating from tax-haven to tax-haven. The police and customs are not able to discover corruption and economic crime. And, perhaps even worse – whistle-blowers who try to raise an alarm about corruption often face a difficult and challenging future. Some of these whistle-blowers even have to live in fear for their own life. I have raised this as an issue in the EU-parliament, and we have to develop a system that better protects the whistleblowers and that gets the criminals convicted, says Joly. She was member of MEC (Independent Joint Anti-Corruption Monitoring and Evaluation Committee) in Afghanistan since 2012, as an anti-corruption expert, and chaired the committee in 2014.

Control is a key word in all development aid. You have to make sure that the money is used in the right way and that they produce the results you want says Eva Joly.

Today, millions of US dollars disappear from Afghanistan and some of this money is traced back to Europe, Middle Eastern countries, USA and to different tax havens. Eva Joly says that the first priority of development aid should be to promote and build a solid and trustworthy taxation system. — Secondly, control is a key word – on paper and concretely in the field. You have to be there, look and see what is done. You need to see how it is done and be sure that the money is used in the right places and that you get the results you wanted. And, finally, you need to be transparent with the local community, and the donors. Invite them to be a part of the project, let them see, understand and know the expenses and the process, says Eva Joly.

You need to see how it is done and be sure that the money is used in the right places and that you get the results you wanted. And, finally, you need to be transparent with the local community, and the donors. Eva Joly w w w . s t r o m m e . o r g \ S T R Ø M M E F O U N D AT I O N A N N UA L R E P O R T 2 0 1 4

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In SF Asia, we focus on every family in our target areas. We mobilise them through various participatory methods and encourage them to develop their Family Development Plans Rajaratnam Ravi Shankar

Rights Based Approach Interview with Rajaratnam Ravi Shankar, Quality Assurance Manager Strømme Foundation - Asia What concrete results have you seen from the RBA work we engage in? SF Asia promotes structures like CBOs as a platform for collectively addressing the issues of the community. In some places, our partners have facilitated the linkages with duty bearers. Because of this we have seen that many rights issues have been addressed because of the communities’ own initiatives. Some of the examples are related to education and children’s right to education. Other examples are how to obtain basic documents such as identity cards and birth/marriage certificates. We have also worked on getting services such as drinking water, electricity, market facilities and other government services to the villages to improve their livelihoods. Why is RBA important? It is important because it promotes empowerment, non-discrimination, non-violent resolutions of conflicts, accountability and responsibility. Further, as we in Strømme Foundation position ourselves as a results focused development organisation, we have to measure and prove the results that we anticipate. RBM also helps us in the monitoring and evaluation of processes as well as outcomes. What caught your attention with this methodology? Initially I was working for a plantation community where the people were dependent on external service providers like Non-Governmental Organisations (NGO), and the plantation management for almost everything. People became more dependent as a direct result of the work of the NGO. Since I was responsible for Monitoring and Evaluation, we wanted sustainable results for the community. I really felt the need of shifting from service delivery towards the rights-based approach to ensure sustainability. How does RBA empower the rights holders we are working with? In SF Asia, we focus on every family in our target areas. We mobilise them through various participatory methods and encourage them to develop their Family Development Plans. This is a lengthy process which includes a meaningful participatory analysis of their own capacities, weaknesses, resources and other key aspects of their lives. Later these families form into small groups where they start discussing their own issues and supporting each other. These small groups are again confederated to form into larger groups as Community Based Organisations (CBOs) in order to address wider community issues. In this manner, we enable poor and marginalised people to participate in governance and decisions affecting their lives through an empowerment process.

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How sustainable is it to use this methodology? This approach is adopted mainly for ensuring the sustainability of development work!

RBA

Rights-based approach (RBA) is a conceptual framework for the process of human development based on international human rights standards and operationally directed to promoting and protecting human rights. It seeks to analyse inequalities which lie at the heart of development problems and redress discriminatory practices and unjust distributions of power that impede development progress. Source - UNICEF

RBM

“Results-Based Management (RBM) is a management strategy aimed at achieving important changes in the way organisations operate, with improving performance in terms of results as the central orientation. RBM provides the management framework and tools for strategic planning, risk management, performance monitoring and evaluation. It’s primary purpose is to improve efficiency and effectiveness through organisational learning, and secondly to fulfil accountability obligations through performance reporting. Key to its success is the involvement of stakeholders throughout the management lifecycle in defining realistic expected results, assessing risk, monitoring progress, reporting on performance and integrating lessons learned into management decisions.” Werner Meier, 2003

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Since we moved the school to the new location we see an improvement in the children’s behaviour. As a direct outcome of the changed environment the Grade five scholarship results have improved. Twelve students managed to score above 100. Anandan, the Principal, Mahakudugalla Tamil Vidyalaya A new school Advocacy secured new hope for the future of the school children of Mahakudagalla The small school building was old and very badly run in Mahakudagalla Estate in Walapane, Nuwara Eliya district in Sri Lanka. For the eighty school children and their teachers, there was no ventilation, and no electricity. There was no playground for children, and noise from the neighbouring houses and heavy traffic on the main road disturbed the classes. Mr. Anandan, the principal of Mahakudugalla Tamil Vidyalaya, contacted the Education Department of the Central Province and convinced them that it was necessary to build a new school. But there was no plot on which to build the school. Then Udayam, a local CBO, got involved and because of their skills and knowledge of advocacy, a plot of land was allocated. “Even though the government had allocated funds for the construction of a new building we had not received the legal rights for this land. It was the CBO that helped us by taking the initiative to talk with the tea-Estate management” said the Principal. Udayam CBO was set up under a development project initiated by Strømme Foundation in 2009 and with the assistance of the PALM Foundation. The CBO has been capacitated to address issues and grievances of the community. Udayam CBO already knew of the problems of the school children. “We spoke to the estate management and they agreed to give us a piece of their land. However they didn’t give us permission to remove the tea bushes”, recalls one member of the CBO. Today Mahakudugalla Tamil Vidyalaya is a model school for 111 children and seven teachers. The school has five classrooms and a playground and a children’s play area with equipment. “Since we moved the school to the new location we see an improvement in the children’s behaviour. As a direct outcome

Mahakudugalla Tamil Vidyalaya is a model school for 111 children and seven teachers. The school has five classrooms and a playground and a children’s play area with equipment. of the changed environment the Grade five scholarship results have improved. Twelve students managed to score above 100”, says the Mr. Anandan, the Principal of, Mahakudugalla Tamil Vidyalaya School. When asked about their future plans for the school, the President of Udayam CBO said they are in discussion with the school development committee about upgrading the school to a secondary school. In the future, they hope to help the school build a library and support sports activities.

Positive changes that have impacted the wellbeing of the children • Increased student enrolment • Improved Year 5 Scholarship results • Reduced school dropout rate • Increased satisfaction of staff members • Provision of a nourishing mid-day meal for students

• Provision of a safe and spacious play area, resulting in the increase in sporting activities of students • Teaching staff have volunteered to conduct additional classes to improve the level of education • Increased support received from parents and well-wishers for school development

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The employees on the tea plantations have made Sri Lanka prosper, but at a high cost for the labourers as their working conditions are often inhuman and gruelling. The power of the CBO! Interview with Gamini Kapuruge, Programme Manager for SEEDS Project, PALM Foundation mon tap in the open. The health and educational facilities made available to this unfortunate community are terrible. What were the challenges you faced when dealing with Udayam CBO’s struggle to obtain a good school for the community? At the committee level, CBO leaders understood the power of advocacy in meeting the rights of the estate workers in Mahakudugalla Estate. However, it took time to convince the CBO members. We had about 60 members at that time. The Project facilitator faced many difficulties, but continued to address the issue at the CBO discussions. Well established tea plantation companies provide good social protection for their workers. But not all do, and we faced many challenges in dealing with the estate management. Udayam CBO has contributed a lot in changing the conditions of living in their community in the hill area in Sri Lanka, says Gamini Kapuruge.

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In which other ways is the CBO engaged in Rights-based Approach activities? The CBO educated the community about the importance of birth registration, national identity cards and other important documents, and helped them to obtain them.

What can you tell us about the Mahakudugalla plantation community in Nuwara Eliya? Mahakudugalla The Estate is the home of 173 plantation workers and their families. The workers originate from the South of India; they were brought there by the British in the beginning of the 19th century.

The estate had a high incidence of alcoholism and domestic violence and Udayam CBO decided to ask for assistance from the police to close down all elicit mobile bars that were operating in the estate. With their closure the incidence of alcohol related violence drastically dropped, the community became safer for women and children.

The employees on the tea plantations have made Sri Lanka prosper, but at a high cost for the labourers as their working conditions are often inhuman and gruelling. Female workers do the tea plucking and are paid according to the weight of tea plucked. The men work as daily paid labourers pruning the shrubs and adding fertiliser and pesticides. The living conditions for the plantation workers are terrible. The housing they are given is cramped, they have to use common toilets and a common tap. Men and women have to bathe from the com-

How else have you supported the community in Mahakudugalla? In addition to educating the community and helping them meet their rights we have worked towards empowering them economically. We have initiated a consumer program to support the purchase of fertiliser and pesticides. Udayam CBO has obtained credit facility from the Bank of Ceylon to fund this operation. People pay back when their crops are sold. The CBO provides a financial buffer, helping them to be more productive to increase their incomes.

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Other programmes

Fredskorpset (FK-Norway) Strømme Foundation has in 2014 been engaged in all the three main programmes operated by FK-Norway: the South to South programme, the youth exchange programme and the North to South programme. The South to South programme has this year been headed by the Regional Office in East Africa. Partner staff has been exchanged between four countries: India, South Sudan, Uganda, Kenya. The youth exchange programme Act Now is run by Hald International Centre in Mandal, Norway. Strømme Foundation also participated in the FK-Norway programme for persons up to the age of 35 years. This programme emphasises the exchange of skilled and experienced persons who are able to work directly with our local partners and their staff. In 2014 we had two persons from South Sudan working in Kristiansand, and two from Norway working with one of our partners in South Sudan. Strømme Foundation has a close collaboration with FK-Norway, and we see these programmes as an instrument for dialogue for cross-cultural communication and understanding. Mimeta Mimeta was incorporated as a legal entity by its owners, Strømme Foundation and Vest-Agder Fylkeskommune, in 2008. Mimeta’s vision is to contribute to free access to the arts for everyone. This implies that art itself is free, the artist is free to make her choices and that the platforms have the freedom to represent cultural or artistic expressions from their own considerations. We see this as a universal human right, which is not there to protect a culture, but to protect the individual who wants to enhance, modify or destroy it through her aesthetic or intellectual capabilities.

society that work on behalf of the arts to improve the sector’s position on rights issues, and to secure a backbone of arts and culture in times of societal crisis and transition. Mimeta is a part of well working partnerships for development processes, support and re-granting both in the Arab-speaking world and in Sub-Saharan Africa. During times with special challenges, service providers have the utmost importance. They are there to organize civic responses to injustice, and have in recent years demonstrated their ability to address issues relating to freedom and democratic change. Mimeta is now in a situation where the ownership is being transformed, as both Strømme Foundation and Vest-Agder Fylkeskommune have decided to withdraw from their shareholding positions. Thus Mimeta is looking for new national or international parties to work for in the future. The existing owners have the end 2015 as a perspective for finalising this process. Youth Exchange Programme/ACT NOW Hald International Center is a school owned by the Strømme Foundation, the Norwegian Missionary Society and Laget. The school offers a one year study programme in CrossCultural Understanding and International Work. Our exchange programme Act Now is for youth between 19 and 25 years old. The curriculum is a mixture of theory and practice. All students have a 6-7 month placement with a partner organisation related to each organisation’s work. The programme is one of the Fredskorpset Youth partners. Students are offered an academic approach to topics such as global understanding, developementaid, combating poverty, culture, and the environment. However, the main focus for the study is the internship of six to seven months within one of Strømme Foundation’s partner organisations. Through Act Now, we want to bring forward a greater understanding of the concept of poverty. Our students learn about development and gain knowledge and understanding about another reality first hand, by living in the context where they work. Act Now aims to give young people a year of another world, offering them a chance to explore, learn and give back some of the knowledge attained from living in a new and different culture.

Mimeta supports the local and regional service providers of the arts. Thus, Mimeta gives priority to organisations from civil

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Report from The Strømme Foundation Board of Directors for 2014 The Strømme Foundation (SF) works to enable people to overcome the root causes of poverty. SF’s identity is based on Christian values, as they are expressed in the life and teachings of Jesus Christ. SF plays a catalytic role in enabling marginalised groups to themselves meet their basic needs and gain access to resources and decision-making organs. Thus, SF works to promote a more just society. SF intervenes through the sectors of education and microfinance. Whereas education helps people develop the attitudes, skills and knowledge needed to make informed decisions for the development of themselves and their communities, microfinance creates access to sustainable income sources and provides a means by which the poor can act upon these decisions. It is our firm conviction that, when combined, education and microfinance can enable our target group to hold duty bearers accountable for the realisation of their rights to a greater extent than is possible through isolated education or microfinance interventions alone. SF has its coordinating/facilitating office in Norway (Kristiansand) and four regional offices in West Africa (Mali); East Africa (Uganda); South America (Peru) and Asia (Sri Lanka), plus four country offices in South Sudan, Bangladesh, Nepal and Burkina Faso. The Board The Board has had four ordinary board meetings and one extra-ordinary meeting in 2014 and dealt with 56 issues. The Board members who served during 2014 were; Svein Ove Faksvåg (chairperson), Torill Selsvold Nyborg (deputy chairperson), Knut Vollebæk, Olaf Gundersen, Anna Minj, Hege Wallevik and Ansgar Gabrielsen. Substitute members were; Trond Backer, Ann Midttun and Cecilie Wathne. Strategic Planning 2014 was an important year for the organisation as this was the first year of implementing the new strategic plan for the period 2014 to 2018. Our main goal for this strategic plan period is to strengthen the organisation’s contribution to bringing people out of poverty in a lasting way. We believe we can make the most impact by: • Enhancing the quality of our programmes to address the root causes of poverty • Influencing public opinion and government policy by raising awareness on the issues of global poverty and injustice • Making available long-term funds and resources for our programme operations • Running an efficient and effective organisation SF’s mode of operation is unique in our combination of a decentralised structure and our partnership model, which ensures that the solutions to poverty are locally defined and always tailored to the local context. SF also seeks to strengthen the civil society by facilitating our partner networks to influence government policy through conducting more direct advocacy work towards the Government(s), and building the capacity

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of partner organisations to undertake such advocacy in our intervention countries. To this end SF seeks to maintain and reinforce our role in thematic and strategic networks that will strengthen our joint potential for advocacy. The focus of SF’s fundraising efforts is on making available new funds and resources for our programme operations. To the greatest extent possible, SF seeks to raise funds that will increasingly facilitate a move from implementing isolated projects to a more integrated and long-term programme approach. This necessarily demands a thorough integration of funding in programming work, and vice versa. Achievements in fundraising Our work within major donors and the corporate sector had a very good year in 2014. Two corporate agreements were renewed after more than ten years of co-operation. We also signed new major donor contracts this year, which are the largest agreements we have ever signed with private major donors. We launched a successful renewal of SFs ‘Job Creator’ private fundraising campaign, this time in Stavanger, Bryne and Sandnes. This campaign involved key ambassadors from business, education, sports and local politics, and created approximately 5000 job opportunities in SF’s countries of operation. Throughout the year we have had quite a number of fundraising activities focusing on ‘Job Creator’. This has resulted in increased income and visibility in Norway. The main institutional fundraising development was the signing of a new framework agreement with NORAD for the period 2014-2018, for a value that is about 40% higher than in the previous period (2009-2013). Another important result was the start of a DFID-funded (British national development agency) Shonglap programme in East Africa, as well as the extension of the agreements with private foundations in Sweden and the Netherlands (Läkarmissionen, Erikshjälpen and Turing Foundation). Programme Results 2014 was the first year of the new Strategic Plan (2014-18). The current five year planning period differs sharply from the previous one in its emphasis on the ‘Rights-based Approach’ which places a particular focus on strengthening capacity building and advocacy in SF’s work. Also, a reduced number of partners and increased geographical focus to enhance consolidation and strengthen impact of our work in all regions is another feature of the new plan period. Due to the late signing of the funding agreement there has been a delayed start-up of the programmes in all regions. By the year end most operations were running at almost normal level although the delayed start-up affected the annual programme results. In 2014 Asia reached 50 759 adolescents under the Empowerment of adolescent girls and boys programmes. This number includes primary direct beneficiaries from our Shonglap (Bangladesh) and Samvad (Nepal) programmes. The number of secondary direct beneficiaries is 3 753. Through our subsidiary microfinance companies in Asia and East Africa,

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we contributed to enabling poor communities to access relevant financial services in 2014. SF acknowledges that access to financial services alone is not enough, and there is a need to develop solid institutions that serves the poor communities. In 2014, we continued to offer business development training to clients as well as build the capacity of the institutions that serve them in various ways. In East Africa alone, 713 staff of our partner institutions received training on a variety of issues, including Risk Management, Corporate Governance, and Social and Financial Performance Monitoring. We have seen and expect to continue to see improved performance in our partner institutions as a result of these type of trainings. Culture SF also has a controlling Interest (65%) in Mimeta AS, the first Norwegian organisation specialising in the sector of culture and development. During the year Mimeta has had three focus areas; democratisation, building an independent platform for promotion of the arts, and building capacity for income generation from the arts. The Board has decided to withdraw from Mimeta AS during 2015 in order to have more focus on the core business.

Financial Headlines Strømme Foundation The total income in 2014 was 166.3m NOK compared to 140.5m NOK in 2013. This is the highest income that SF has ever raised in one year. Public sector income increased from 55.8m NOK in 2013 to 70.9m NOK in 2014, mainly due to increased support from Norad. Private donations have increased from 51.9m NOK in 2013 to 55.5m NOK in 2014, income from Business partnerships also showed an increase from 11.1 m NOK in 2013 to 11.4m NOK in 2014. Contributions from other organisations fell from 20.0m NOK in 2013 to 17.4m NOK in 2014. The surplus from the sale of the property in Lillesand to Luntevika AS was 6.8m NOK. Financial support to purpose activity increased from 106.4m NOK in 2013 to 124.4m NOK in 2014. The result for the year after change in earmarked capital was a surplus of 13.4m NOK, compared to a surplus of 10.8m NOK in 2013. The reserves in SF is now at all-time high level of 52.5m NOK. Consolidated Accounts There was a consolidated surplus of 36.2m NOK compared to 25.3m NOK in 2013. The main causes of the increase is the delayed startup of some programmes under the new Strategic Plan of SF and large currency gains in Microfinance. Total equity increased from 185.0m NOK in 2013 to 227.6m NOK in 2014. The cash flow from operational activities is satisfactory; total liquid funds at the year end incl. Mimeta was 67.4m NOK in the accounts, but this excludes SMF AS that has been consolidated using the Equity method. Liquid funds in SMF AS group totals 21.3m NOK.

The key figures for SF as a percentage of total costs in 2014 were: Administration 4.6 % (5.3 % in 2013); Fundraising 12.1% (12.1 % in 2013); and Purpose 83.4 % (82.6 % in 2013). In addition, the Norwegian Fundraising Control Board has introduced a measure of the amount of private funding that goes to purpose costs which is 73.6 % (78.8 % in 2013). Working environment and Staff The working environment in the SF is considered to be good. The cooperation with the employees’ unions has been constructive and has contributed positively to the development work. In 2014 there were 4 (4 in 2013) men and 3 (3 in 2013) women in the Board. Among the employees in the Kristiansand office at the end of the year, there were 15 women (15 in 2013) and 17 men (18 in 2013). In the regional offices there were 30 women (30 in 2013) and 76 men (76 in 2013). On the leadership team, comprising the senior managers in the Kristiansand office plus the regional directors, there were 5 men and 3 women. SF strives for a balance of gender at all levels and is conscious about this when employing new staff. Absence due to illness in the Kristiansand office was approximately 2.8 % (5.8 % in 2013) of the total working time. The organisation has a company health service agreement. There were no serious accidents at work resulting in material damages or personal injuries during the year. The organisations’ pollution of the external environment will mostly be of an indirect nature. The Board considers SF to have a minimal pollution effect on the external environment. The organisation 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. Risk Perspective The Board continues to monitor SF’s risk through quarterly reporting. Focus on this has continued during 2014 on deviation reporting to the Board and on preventing corruption in SF and its partners. The organisation has established good systems and had good dialogue with donors when suspected corruption cases are uncovered. The security situation has been challenging in Mali, Niger, South Sudan and Bangladesh in 2014. In the northern part of Mali it has not been possible for staff to travel due to the security situation. Moving from Mali to Niger by road has been done by passing Burkina Faso. Still it has been possible to work with partners in the different areas as planned. The regional office in West Africa is well updated on the security situation in all three countries and makes good and safe plans for both local- and Kristiansand office staff traveling in the region. For South Sudan the political situation is unresolved. One third of the country- the northern part- is insecure. We do not have

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any activities here. In the main area where Strømme Foundation is operating, things are functioning and activities with partners have been normal. The Juba office is well updated and has close contact with local partners, the Norwegian Embassy and UN organisations on security matters. Norwegian FK participants have been staying in a calm area in the eastern part of the country. Staff from the regional office and Kristiansand have been traveling without major problems during the year due to good planning and updating on the current situation. In Bangladesh, the political situation was tense part of the year. This effected our activities, as it was difficult to visit partners due to roadblocks and demonstrations. Still the country office managed to run the activities almost as planned. 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 SF’s agreements with these partners, our exposure is limited to the Norwegian kroner budget. During 2013 and 2014 SF entered into fixed exchange rate contracts in order to secure the budgets at a favourable exchange rate between the Norwegian kroner and the US dollar. Strømme Foundation has no external borrowing, so there will be no serious consequences for the organisation if the interest rates should increase considerably. The credit risk is restricted to the microfinance operations in SMF AS.

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 SF has clear plans to continue its work of empowering poor communities to climb the ladder out of poverty. The need is clear and urgent, and the organisation is in a good position to make a substantial impact. The Board has good reason to believe that Strømme Foundation is a growing concern. The results from 2014 show steady growth in regular income. SF is 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 Out of SF’s overall surplus of 19.6m NOK, 6.1m NOK is added to the restricted purpose capital, and 13,4m NOK is transferred to other purpose capital. The consolidated accounts show a net surplus of 36.2m NOK, of which 22.2m NOK is added to restricted purpose capital and 13,4m NOK to other purpose capital.

Kristiansand, 19th June 2015

Hege Wallevik Board Member

Ansgar Gabrielsen Board Member

Anna Minj Board Member Svein Ove Faksvåg Chairperson of the Board Torill Selsvold Nyborg Deputy Chairperson of the Board

Knut Vollebæk Board Member

Lars Saaghus Board Member Øyvind Aadland Secretary General

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Strømme Foundation Activity Accounts Strømme Foundation 2014

Strømme Foundation 2013

Consolidated 2014

Consolidated 2013

Funds acquired

Public sector grants 3 70 945 463 55 836 964 75 137 909 59 546 732 Grants from other organisations 4 17 385 064 20 015 697 17 615 738 22 025 871 Private donations 5 55 510 934 51 889 790 55 510 934 53 374 029 Corporate sector 6 11 437 809 11 085 141 11 437 809 9 697 971 Gain from sale of property 17 6 805 004 - 3 402 502 Financial income 7 3 696 252 1 178 376 3 663 345 914 373 Other income 538 255 505 714 567 104 658 665 Total funds acquired 166 318 781 140 511 682 167 335 341 146 217 641 Funds spent Cost of fund acquisition Direct fundraising cost 8 -14 192 765 -11 540 460 -14 192 765 -11 540 460 Other fundraising cost 8 -3 823 422 -4 094 834 -4 394 020 -4 881 029 Total cost of fund acquisition 1 -18 016 187 -15 635 294 -18 586 784 -16 421 489 Purpose cost Project support 9 -80 241 194 -67 597 831 -77 041 982 -66 347 146 Program follow up at regional offices 11 -24 068 600 -21 652 000 -24 068 600 -21 424 594 Program follow up from Kristiansand 12 -12 462 648 -10 076 055 -12 103 842 -11 648 443 Information and public education 13 -7 644 463 -7 117 795 -7 644 463 -7 117 795 Project support - Mimeta -2 958 226 -3 917 620 Total purpose cost 1 -124 416 904 -106 443 681 -123 817 113 -110 455 599 Administration cost 1 -6 789 764 -6 767 821 -7 360 361 -7 554 015 Total funds spent 1, 24 -149 222 854 -128 846 796 -149 764 258 -134 431 103 VAT compensation 14 2 462 545 2 072 954 2 462 545 2 072 954 Result Microfinance (MF) 15 613 644 11 403 030 Result from investment in other companies 571 075 The year’s activity result 19 558 471 13 737 840 36 218 347 25 262 522 Hereof minorities’ share (Mimeta) -112 544 -299 754 Additions/reductions in purpose capital Change in purpose capital with restrictions 15 B 6 125 611 2 911 709 2 972 631 2 055 271 Change in purpose capital with restrictions (MF) - 19 812 856 12 381 121 Transferred to / (from) other purpose capital 15 13 432 860 10 826 130 13 432 860 10 826 130 Total additions/reductions in purpose capital 19 558 471 13 737 840 36 218 347 25 262 522

Strømme Foundation Balance Sheet 31.12.2014 Note ASSETS

Strømme Foundation 2014

Strømme Foundation 2013

Consolidated 2014

Consolidated 2013

Note

Long term assets

Fixed assets Property 16 7 748 490 7 720 579 7 748 490 7 720 579 Property development 17 - 3 289 109 - 3 289 109 Office furniture and equipment 16 424 694 532 959 432 334 618 343 Total fixed assets 8 173 184 11 542 647 8 180 824 11 628 031 Financial assets Investment in subsidiaries 18A 37 459 847 37 459 847 - Investment in other companies 18B 705 000 705 000 1 289 692 748 583 Investment in microfinance - - 163 342 552 132 037 021 Loans to subsidiaries 19 76 816 208 72 210 100 - Total financial assets 114 981 055 110 374 947 164 632 244 132 785 604 - - Total long term assets 123 154 239 121 917 594 172 813 068 144 413 635 - - Receivables - - Trade Debtors 19 1 111 957 1 403 317 1 111 957 1 403 317 Inter company receivables 19 1 434 790 436 860 - Other short term receivables 19 6 630 145 1 270 363 6 666 145 1 439 441 Total receivables 9 176 892 3 110 540 7 778 102 2 842 758 Investment in current financial assets 20 9 788 687 9 396 928 9 788 687 9 396 928 Bank and cash 21 56 152 666 39 314 247 57 605 611 41 623 891 Total current assets 75 118 245 51 821 716 75 172 400 53 863 578 TOTAL ASSETS 198 272 484 173 739 310 247 985 468 198 277 213

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Strømme Foundation 31.12.2014 PURPOSE CAPITAL AND LIABILITY

Note

Strømme Foundation 2014

Strømme Foundation 2013

Consolidated 2014

Consolidated 2013

Note

Purpose capital (PC)

Founding capital 3 326 092 3 326 092 3 326 092 3 326 092 - Acquired purpose capital PC with restrictions (SF projects) 15B 17 980 561 11 854 950 17 980 561 11 854 950 PC with restrictions (Microfinance) 106 882 512 106 882 512 124 964 196 103 023 169 Restricted equity (Mimeta) - - 481 867 690 877 Minority interests with restrictions (Mimeta) - - 259 467 372 011 Other purpose capital 52 550 128 39 117 268 80 538 118 65 737 473 Total acquired purpose capital 177 413 201 157 854 730 224 224 209 181 678 481 Total purpose capital 15 180 739 293 161 180 822 227 550 301 185 004 573 Liability Long term debt Pension obligations 22 591 080 757 900 591 080 757 900 Staff gratuities in regional offices 23 3 368 434 2 251 122 3 368 434 2 251 122 Legacy obligations 150 000 150 000 150 000 150 000 Other long term debt - 505 000 - 505 000 Total long term debt 4 109 514 3 664 022 7 525 633 3 664 022 Short term debt Creditors 3 199 094 1 997 447 3 210 491 2 157 320 Public duties & taxes 2 227 644 1 994 082 2 283 019 2 098 404 Owed to employees 1 938 970 1 774 364 2 024 721 1 774 364 Inter company debt 19 1 217 846 778 478 - 0 Deferred project income 4 806 700 2 150 000 5 310 891 3 378 436 Other account payable 33 422 200 094 80 411 200 094 Total current liability 13 423 677 8 894 466 12 909 534 9 608 618 Total liability 17 533 191 12 558 488 20 435 167 13 272 640 - - TOTAL PURPOSE CAPITAL AND LIABILITY 198 272 484 173 739 310 247 985 468 198 277 213

Kristiansand 19th June 2015

Hege Wallevik Board Member

Svein Ove Faksvåg Chairperson of the Board

Ansgar Gabrielsen Board Member

Anna Minj Board Member

Torill Selsvold Nyborg Deputy Chairperson of the Board

Lars Saaghus Board Member

Knut Vollebæk Board Member

Øyvind Aadland Secretary General

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Strømme Foundation Cashflow 2014 (The indirect method) Note

Strømme Foundation 2014

Strømme Foundation 2013

Consolidated 2014

Consolidated 2013

The year’s activity result

19 558 471 13 737 840 36 218 347 25 262 522 Adjustment in Microfinans - - -24 978 148 -12 675 696 Share of result from investments in other companies - - 2 831 427 Unrealised loss on investments, i.e. current financial assets - - 43 583 304 012 Ordinary depreciation 16 467 447 516 699 545 191 672 408 Disposal of fixed assets 16 - 4 200 - 4 200 Difference between pension cost and payments 22 -166 820 525 529 -166 820 525 529 Posts in the activity account without liquidity effect 300 627 1 046 428 3 253 381 1 506 149 - - Acquisition of fixed assets 16 -387 093 -262 939 -387 093 -262 939 Acquisition of shares in other companies - -400 000 - -447 241 Property development Lillesand 17 3 289 109 -13 300 3 289 109 -13 300 Changes in loan to subsidiary -4 606 108 - - Changes in long term debt 612 312 368 915 612 312 368 915 Investments, disposals and financing -1 091 780 -307 324 3 514 328 -354 565 - - Change in receivables/other current assets -6 066 352 15 863 -4 935 344 139 905 Change in creditors/other short term debt 1 872 511 621 361 1 368 461 716 632 Change in deferred project income 2 656 700 1 700 000 1 932 455 1 402 324 Other changes -1 537 141 2 337 224 -1 634 428 2 258 861 - - Total changes in liquidity during the year 17 230 177 16 814 168 16 373 480 15 997 271 - - Opening balance of cash and current financial assets 1.1. 48 711 175 31 897 008 51 020 819 35 023 550 Closing balance of cash and current financial assets 31.12 65 941 353 48 711 176 67 394 298 51 020 819 - - Specification: - - Investment in current financial assets 20 9 788 687 9 396 928 9 788 687 9 396 928 Bank and cash 21 56 152 666 39 314 247 57 605 611 41 623 891 Closing balance of cash and current financial assets 31.12 65 941 353 48 711 175 67 394 298 51 020 819

Accounting Principles applied 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”, produced by The Norwegian Accounting Standards Board in 2006 (updated in 2008). This means that, in place of a traditional Profit and Loss Account, there is an Activity Account which is meant to give the reader a better understanding of how Strømme Foundation has used the resources at its disposal. SF is not liable for direct taxation.

Allocation of costs Purpose Strømme Foundations purpose is: To lift people out of poverty: • • •

To manage raised funds and public grants in a way that ensures that recipients gain real influence over their own situation through participation in the developmental process, to strengthen human dignity, and to stimulate the ability of recipients to help themselves. To engage in dissemination and awareness activities in a North-South perspective, with the aim to create increased interest in development through co-operation; and To provide aid and assistance through local partner organisations, and other regional organisations in co-operation with local authorities.

The Regional Offices Strømme Foundation has four regional offices; in West Africa (Mali); East Africa (Uganda); South America (Peru) and Asia (Sri Lanka), plus four country offices in Burkina Faso, South Sudan, Bangladesh and Nepal. The full cost of these offices is allocated as purpose cost.

Support for programme work from Kristiansand Costs of the “International Department” are allocated to activity and thereby purpose costs. The department’s function is to co-ordinate, support, evaluate and monitor all programme work, as well as liason with public and institutional funding bodies such as NORAD, The Norwegian Peace Corps, Operation Dayswork and Eriks Foundation. Other support functions in Kristiansand These consists of “Secretariat of the Secretary General”, Administration-, Finance- and ICT department. The basis of allocation starts with salaries, which are allocated according to an estimate of the amount of time spent on different activities. Costs that cannot be reasonably and consistently allocated to activity, are classified as administration costs. Thus, support costs relating to the Board of SF, audit costs, general memberships, consultancy, finance costs and about 50% of staff costs in the secretariat, administration and finance departments are classified as administration costs. Note 1 below shows in summary how the allocation has been made. Fundraising and Information All expenditure directly connected to personnel employed as fundraisers, and to solely fundraising activity, is classified 100 % as fundraising cost. This includes all direct marketing costs and other costs associated with our main fundraising products “Friend at Heart”,“Bridge Builder” and “Job Creator”. All expenditure on personnel and activity whose prime purpose is connected to information and public education is allocated to purpose activity. Transactions in Foreign currency Costs outside Norway are recorded at the exchange rates relating to the corresponding transfers from Kristiansand. SF is in the process of incorporating the regional offices into the accounting software package that is used in Kristiansand. The conversion of the regional accounts from local currency to Norwegian kroner will then follow the prevailing exchange rates that are regulary updated in the system. Accounting summaries from the offices still on separate financial

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system is recorded monthly at rates corresponding to the fund transfer rates. SF enters into forward exchange contracts in foreign currency to reduce the currency exposure connected to money transfers abroad. The currency hedging is classified as securing of cash flow according to the NRS 18 “Financial assets and obligations”. The cash flow securing is reflected through not applying realised or unrealised profit and loss on the security instrument in the result before the underlying security product affects the activity account.

All leasing contracts are classified as operational and accounted for as costs. Shares in Subsidiaries and other Companies Shares in subsidiaries and other companies are recorded at historic cost. Short-term Investments Short-term investments (share- and bonds 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.

Foreign currency income is in general 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 special guidelines concerning earmarked funds, which ensures that these funds cannot be used for activities other than those for which they were donated without specific approval. The Board has set regulations for the handling of earmarked funds when a project is closed. Unused earmarked funds are shown as purpose capital with restrictions in the balance sheet.

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.

Classification and Valuation of Balance Sheet Items

Cashflow The cash flow is calculated using the indirect method. Cash and cash equivalents consist of cash, bank deposits and other short term liquid investments which can immediately be converted to cash without material exchange risk.

Current assets and short-term liabilities contain items due for payment within one year after acquisition. Other items are classified as fixed / financial assets or long-term liabilities.

Consolidation principles The consolidated accounts includes those companies where Strømme Foundation directly or indirectly has deciding influence. The consolidated accounts are prepared as if the group was one economic unit. Transactions and outstanding balances between the companies in the group are eliminated. The consolidated accounts are prepared according to uniform principles. Purchased subsidiaries are accounted for in the consolidated accounts based on SF’s procurement costs. The costs of acquisition are linked to identifiable assets and debt in the subsidiary, which is stated at actual value in the consolidated accounts at the time of purchase. Investments in microfinance are valued according to the equity method in the consolidated accounts. The equity method requires that proportion of the relevant companies result, reduced by depreciation on possible excess values, is charged to the activity account in the consolidated accounts. Both the purpose capital and the mother company’s lending to the microfinance activity are incorporated in the account line “Investments in microfinance”. Minority interests are shown as a separate post under the purpose capital. This means that assets and debt are stated inclusive of the minorities share. In the activity account, the minorities share of the result is calculated.

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. 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. Fixed assets The 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. At the regional offices all fixed assets are charged to result at the time of procurement.

Notes for 2014 Note 1 – PRINCIPLES FOR ALLOCATING COSTS (Figures in NOK 1000) Department Total Admin Fundraising Purpose General Secreteriat, Administration, Finance & ICT 17 105 6 158 3 423 7 524 Communication/Marketing 20 588 632 14 193 5 763

Comments/Allocations basis

International department 7 220 0 400 6 820 Transfers to development projects, regional offices and partners 104 310 0 0 104 310 Total 149 223 6 790 18 016 124 417

Generally all purpose activities, apart from some major donor fundraising

Some direct allocation to admin, rest allocated on KRS office salary basis Allocation on the basis of activity

All activity outside Norway and with external partners is defined as purpose.

Note 2 – KEY INDICATORS Percentage spent on purpose Percentage spent on administration Fundraising percentage

2014 83,4 % 4,6 % 73,6 %

2013 82,6 % 5,3 % 78,8 %

2012 84,6 % 4,5 % 79,2 %

2011 84,1 % 4,3 % 75,1 %

2010 81,5 % 5,1 % 76,4 %

The percentage spent on purpose shows how much of the total expenditure that has gone to fulfil Strømme Foundations various purposes. The percentage spent on administration shows the share of the total expenditure that was covering unallocated administrative costs (general admin, accounts, ICT, audit, board/council expenses). This percentage is bqck on the same level as in 2011/12 due to bigger volume of project support. The fundraising percentage shows how much of the money SF raises from private donors that goes to purpose costs, after the cost of raising the funds is deducted. Public Sector grants, grants from foreign organisations, financial income and other income are excluded from the calculation. From 2012 contributions from Norwegian organisations are partly included in the basis. The criteria for continued membership in the Norwegian fundraisers register is that a minimum of 65 % of the funds raised is used on the organisation’s purpose.

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Note 3 – PUBLIC SECTOR GRANTS Strømme Foundation has got a new five year co-operation agreement with the Norwegian Agency for Development Co-operation (NORAD) for an expected annual support of NOK 57 mill. In 2014 an additional grant was received from Norad for education in Mali. The Swiss agency for development co-operation also renewed its support for speed schools in Mali. On top of the five year agreement with UK Aid to provide funds for education for girls in South Sudan, they signed a new agreement to support a similar programme which covers both Uganda and South Sudan. Donor Norwegian Agency for Dvlpm. Coop. (NORAD) Norwegian Agency for Dvlpm. Coop. (NORAD) Norwegian Ministry of Foreign Affairs (MFA) Swiss Agency for Development & Coop. (SDC) EU/Danish Church Aid (DCA) The Norwegian Peace Corps – Young The Norwegian Peace Corps (FK) The Norwegian Peace Corps (FK) UK Aid UK Aid US Aid UNHCR UNICEF Total

Purpose 2014 2013 Development Programmes 58 700 000 45 000 000 Information Activities 1 000 000 1 000 000 Rehabilitation and Development for conflict affected people – North Sri Lanka - 2 000 000 Speed School Programme – Mali 2 170 668 2 208 070 Food Security and Livelihood - South Sudan -174 333 199 946 Act Now Programme - Hald International Centre 1 886 030 1 850 000 South/South Exchange Programme - East Africa 1 277 319 2 316 556 Exchange programme, HTPV – South Sudan 1 405 311 670 994 Education for girls/Uganda/South Sudan 3 545 280 379 065 Education for girls, South Sudan 880 173 Hydroponic Green Forage, Peru 246 326 60 515 Pilot study, out of school children (East Africa) - 91 091 Pilot study, out of school children (East Africa) 8 689 60 727 70 945 463 55 836 964

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 co-operation agreement with NORAD (2014/2018) requires a minimum contribution of 10 % from Strømme Foundation, and allows up to 7 % administration support. For programmes financed by public sector donors like MFA, FK and UK Aid, amounts spent on programme follow up are agreed in the budget. Note 4 – CONTRIBUTIONS FROM OTHER ORGANISATIONS Donor Purpose 2014 2013 Operation Dayswork, Norway Empower girls to become masters of their own life – Bangladesh 1 190 000 6 600 433 Operation Dayswork, Norway Empower girls to become masters of their own life – Nepal 6 510 613 4 042 566 Läkarmissionen, Sweden Saving-/credit groups and youth empowerment – Uganda 2 397 152 1 927 749 Läkarmissionen, Sweden Saving-/credit groups and literacy programme – South Sudan 838 365 Läkarmissionen, Sweden Literacy programme for women – Niger 1 215 410 Eriks Foundation, Sweden Speed Schools, Mali - 1 166 492 Eriks Foundation, Sweden Education and community development, Bangladesh 2 102 079 2 302 514 Eriks Foundation, Sweden Local community Development, South Sudan 1 820 351 1 905 000 Geneva Global, USA Girls empowerment programme, Nepal - 851 406 Turing Foundation, The Netherlands Speed Schools, Niger 318 351 Waterloo Foundation, England Active literacy for women, Mali - 307 936 Futuro Bolivia, Norway Occupational training for women, Bolivia 133 713 68 875 Tear Fund, Switzerland Programme follow up of Peruvian partners 181 524 171 014 Bernhard van Leer Foundation, The Netherlands Safe families & protected childhood, Peru 667 009 220 000 Copeinca, Peru Healthy families and local community, Peru - 358 467 Save the Children, international Pilot Study; out of School Children, East Africa 10 548 56 900 Eriks Foundation, Sweden Pilot Study; out of School Children, East Africa - 36 345 Total 17 385 064 20 015 697 2014 is the last year of regular Operation Dayswork financing for the Shonglap programme in Bangladesh, while the Samvad programme in Nepal is growing. Läkarmissionen has extended their support for savings and credit groups consentrated in Uganda, and the programmes in Bangladesh and South Sudan with Eriks Foundation continued as per contract, while their speed school support was given directly to local partners in 2014. Note 5 - PRIVATE DONATIONS Donor Category Individual donations Fixed-term donations (Friend at Heart, Bridge Builder, Job Creator etc.) Events, schools and artists Testamentary donations Total

2014 8 664 783 38 362 175 3 319 931 5 164 063 55 510 934

2013 8 609 971 38 299 202 3 816 076 1 164 541 51 889 790

As a result of the increase in testamentary donations, the private donations rose by NOK 3.6 mill in total compared to the prior year. Note 6 – CORPORATE SECTOR This income comes from our co-operation with the corporate sector and sports clubs. We define the co-operation in three categories. A ”Main partner” contributes NOK 500 000 or more, a ”Plus partner” between 100 000 and 499 000 and a ”Partner” from 15 000 to 99 000. In 2014 we had six Main partners, Agder Energi, Skagerak Energi, Kristiansand Dyrepark, The Kavli Trust, Henriette Foundation and AKO. Their accumulated donations comprise more than NOK 8 mill. Our largest sports co-operation partner is IK Start through their organisation Start Life Support. Note 7 – FINANCIAL INCOME/EXPENDITURE Other interest income Other financial income Other interest cost Totalt

2014 2013 673 840 846 467 3 164 360 331 908 -45 987 3 696 252 1 178 376

On foreign current accounts in the balance sheet the following exchange rates are applied: USD/NOK 7.43 and EUR/NOK 9.02. As opposed to earlier years, exchange differences occur continously during the year after resuming common financial system with Kristiansand office at the East Africa and Asia offices. Custodies in foreign currency at balance sheet date is converted at the average bid rate stated by the currency exchange provider Oanda. Net exchange gain in the regions is from 2014 included under ‘Other financial income’, whereas it was earlier adjusted against project support.

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Note 8 – PRIVATE FUNDRAISING COSTS The costs of fundraising in the Norwegian private market are shown here, both the direct costs and the indirect support costs allocated to fundraising. Indirect costs are shown under ‘Other fundraising costs’ in the accounts. In 2014 a large “Job Creator” recruiting campaign was held in the Stavanger/ Sandnes region, and this is the main reason for the increased costs compared to 2013. Note 9 – PROGRAMME SUPPORT Country / Region 2014 Bangladesh 9 758 663 Sri Lanka 3 761 834 Nepal 6 520 461 Myanmar 103 147 Asia 20 144 105 Uganda 10 436 564 Tanzania 2 377 758 South Sudan 13 844 616 Kenya 3 554 878 East Africa 30 213 816 Mali 11 982 037 Burkina Faso 4 049 990 Niger 4 111 393 West Africa 20 143 421 Peru 4 312 857 Bolivia 3 036 418 South America 7 349 274 Act Now 1 890 578 Myrada - FK - Culture – MIMETA 500 000 Global 2 390 578 Net currency gain/loss - Total 80 241 194

2013 9 762 041 4 417 555 4 124 641 18 304 237 8 346 055 2 762 718 7 046 757 1 973 652 20 129 181 13 601 466 3 314 974 1 512 969 18 429 408 4 616 184 3 564 249 8 180 433 1 847 467 488 007 500 638 2 836 112 -281 540 67 597 831

The biggest increase in the project support came in South Sudan, which still has enormous challenges. The total increase in project support was lower than budgeted though, as the start-up of the new Strategic Plan for various reasons was delayed, particularly in Asia and West Africa. In Asia preparations are ongoing for re-entry into Myanmar. 10 – AUDIT FEES Statutory Audit Fees Other certification Other advising and assistance Total

2014 2013 692 871 442 978 74 841 48 400 282 306 44 300 1 050 018 535 678

The fees are stated exclusive of VAT. Total fees in 2014 to the group auditor in Kristiansand were NOK 674 506, while total fees to auditors of regional offices were NOK 375 512.  Note 11 – PROGRAMME FOLLOW UP AT REGIONAL OFFICES Region Asia (Bangladesh, Sri Lanka, Nepal) East Africa (Uganda, Tanzania, South Sudan, Kenya) West Africa (Mali, Burkina Faso, Niger) South America (Peru, Bolivia) Total

2014 2013 8 075 265 5 553 063 6 199 972 7 063 928 6 456 375 6 675 362 3 336 988 2 359 646 24 068 600 21 652 000

The staffing at our Bangladesh, Nepal and Peru offices was strengthened in order to manage larger programme activity, while in South Sudan the personnel resources was partly covered by external programmes with its own financing. Note 12 – PROGRAMME FOLLOW UP IN KRISTIANSAND Department International department Microfinance department (SMF AS) Shared support services Total

2014 2013 5 319 638 4 714 712 1 500 000 6 505 510 5 361 343 12 462 648 10 076 055

The support to the microfinance company in Kristiansand covers their operative follow-up of the microfinance activities in the regions. Note 13 – INFORMATION AND PUBLIC EDUCATION WORK The communication department has two purposes: fundraising, and information and public education work. In addition to reports from the projects in the South to donors through our magazine Help for Selfhelp, this part of our work includes activities particularly targeted towards schools, the corporate sector, the press and social media. The primary focus is development issues rather than fundraising. The Norad grant of NOK 1 mill for information work covers part of the costs of such activities.

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note 14 – VAT COMPENSATION The current legislation relating to VAT provides a facility for voluntary organisations to apply in arrear for compensation of VAT paid. Received VAT compensation in 2014 is based on the total funds spent in 2013, and is recorded as income in the accounts, but stated on a separate line as extraordinary supply of funds in the activity account. No claim of outstanding VAT is recorded in the balance sheet for 2014. The accounts are charged inclusive of VAT, and compensation for VAT will be recorded as income in 2015. Note 15 CHANGES IN PURPOSE CAPITAL (PC) Strømme Foundation Founding Capital PC with restrictions (SF projects) PC with restrictions (Microfinance) Other purpose capital TOTAL PURPOSE CAPITAL

31/12/2013 3 326 092 11 854 949 106 882 512 39 117 268 161 180 822

Change During 2014 - 6 125 611 See specification in note 15B 13 432 860 Result for SF 2014 19 558 471

31/12/2014 3 326 092 17 980 561 106 882 512 52 550 128 180 739 293

A substantial part of fundraised capital is linked directly to projects. Many of these are also financed through public sector grants and grants from other organisations. After the allocation of public sector and institutional grants according to the terms of the cooperation agreements, the fundraised capital is used to cover SF’s own share. From year to year the usage of fundraised capital for specific purposes will vary, leaving remaining balances on running projects. Balances of closed projects will be reallocated to other projects according to agreed guidelines. After covering the project costs for 2014, the purpose capital with restrictions increased by NOK 6.1 mill. Purpose Capital with restrictions (Microfinance) represents capital earned in the microfinance operations from the second half of 1990 until the first quarter of 2009. In 2009 the capital was formally transferred to Strømme Microfinance AS and its daughter companies.   Note 15 B – CHANGES IN PC WITH RESTRICTIONS Specification of earmarked contributions / gifts that have either opening or closing balances. Opening Funds Funds Closing Type of Balance 2014 spent 2014 received 2014 balance 2014 restriction Rehabilitation and development/ Unspent funds to be Northern Sri Lanka/MFA 1 041 069 -1 041 069 returned after final audit Shonglap, Bangladesh/Operation Dayswork Unspent funds belong to the programme 910 650 1 148 442 -1 972 469 86 624 Shonglap, Bangladesh/Corporate Unspent funds belong to the programme Sector and private donations 1 148 765 1 497 788 -1 290 142 1 356 249 Education and community development/ Unspent funds belong to the programme Bangladesh/Eriks Foundation 152 067 2 129 069 -2 281 136 - Samvad, Nepal/Operation Dayswork. Unspent funds belong to the programme 460 594 6 261 561 -5 546 597 1 460 303 Development programme for girls Belongs to agreed partners/projects /Nepal/Geneva Global 76 753 - -76 753 - Sum Asia 3 789 738 11 036 860 -12 208 166 2 903 166 Region Asia Belongs to agreed Savings and credit groups/ partners/projects Uganda/Läkarmissionen 332 460 3 235 517 -2 582 402 985 575 South/south exchange Unspent funds to be returned after the audit programme/Peace corps 974 462 1 277 319 -715 094 1 536 687 Holy Trinity Peace Village/ Belongs to agreed partners/projects South Sudan/School 144 016 200 735 -344 752 - Unspent funds to be Education/Savings and credit groups/ returned after the audit South Sudan / Eriks Foundation 24 982 1 820 351 -1 845 333 - Food security South Sudan Unspent funds to be returned after the audit /EU – DCA 133 618 -174 333 40 715 - Inclusion of handicapped in Unspent funds to be returned after the audit South Sudan/Norad 853 780 - -853 780 - Unspent funds to be North/south/north exchange/ returned after the audit Sudan/Peace corps 261 330 1 341 132 -1 144 440 458 023 Belongs to agreed Jamii Bora Kaputiei construction/ partners/projects Kenya/Corporate partners 3 871 342 1 892 315 -1 395 094 4 368 564 Belongs to agreed Naboisho conservation area dvlp./ partners/projects Kenya/Corporate partners - 1 910 174 -1 474 540 435 634 Education/Savings and credit groups/ Belongs to agreed partners/projects Tanzania / School network - 818 775 -635 940 182 835 Child Restoration Outreach Uganda/ Belongs to agreed partners/projects Schools & events Start Life Support 164 917 516 848 -478 349 203 417 Miles 2 Smiles Nursery School/ Belongs to agreed partners/projects Uganda/Corporates and schools 448 717 421 324 -870 040 - Vocational training for women/ Belongs to agreed partners/projects Uganda/Corporates and Schools 78 933 341 725 -320 632 100 027 Belongs to agreed Savings and credit groups and literacy/ partners/projects South Sudan/Läkarmissionen - 838 365 -765 221 73 144 Sum East Africa 7 288 559 13 601 882 -12 619 681 8 343 904 Region East Africa Belongs to agreed Adult literacy/Mali/Waterloo Foundation 230 941 - -230 654 - Country/project/donor

Speed Schools/Mali/Eriks Foundation

131 367

-

12 135

143 502

Speed Schools/Niger/Turing Foundation

-

274 368

-224 711

49 657

Literacy for women/Niger/Läkarmissionen

-

1 110 359

-654 359

456 000

Speed Schools/Burkina Faso/AKO Foundation

-

1 259 681

-737 683

521 999

Speed Schools/Burkina Faso/Kavli Trust

1 020 000

-791 702

228 298

3 664 408

-2 626 973

1 399 456

Sum West Africa

362 021

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partners/projects Unspent funds to be returned after the audit Belongs to agreed partners/projects Unspent funds to be returned after the audit Belongs to agreed partners/projects Belongs to agreed partners/projects

Region West Africa >>> continue

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>>> continue

Opening Balance 2014

Country/project/donor Youth culture house/Peru/Corporate partners Healthy local community and families/Peru/Copenica Sum South America General Secretary’s disposition/Individual gift Co-operation agreement/Norad Sum Global Grand Total

Funds received 2014

Funds spent 2014

Closing balance 2014

100 000

-

-100 000

-

29 480

-

-29 480

-

Belongs to agreed partners/projects

129 480

-

-129 480

-

Region South America

285 153

-

-109 426

175 726

-

54 591 000

-49 432 701

5 158 299

285 153 11 854 950

54 591 000 82 894 150

-49 542 127 -77 096 948

5 334 025

Note 16 – FIXED ASSETS Property Cost price 01/01/14 290 000 Acquisitions 2014 - Disposals 2014 Cost price 31/12/14 290 000 Accumulated depreciation 31/12/14 - Book value 31/12/14 290 000 The year’s ordinary depreciation - Depreciation rates 0 %

17 980 561

Business Premises

Furniture and equipment

Total

14 449 700 327 093 - 14 776 793 7 318 305 7 458 487 299 182 2 -10%

2 114 465 60 000 - 2 174 465 1 749 772 424 693 168 265 20-30 %

16 854 165 387 093 17 241 258 9 068 077 8 173 181 467 447

Type of restriction Belongs to agreed partners/projects

Reserved for special needs Unspent funds applied carried forward to next year, balance after final audit of agreement period to be refunded

Global

Strømme Micro Finance AS (SMF AS) is titleholder for the building site and business premises, with exception of one unit for which SF is the titleholder. SF has an agreed overdraft limit of NOK 2.0 mill on behalf of SMF AS. As guarantee for this there is a security connected to book value NOK 7.0 mill deriving from a major part of the business premesis shown above. At the year end NOK 1.6 mill was drawn on the credit facility. SF also has a credit line of NOK 24 mill for foreign exchange hedging. This is secured on the total property value NOK 7.5 mill plus SMF AS property with a book value of NOK 2.8 mill. Since SF 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, most fully depreciated assets do not appear here. All equipment in the Regional Offices is recorded as programme follow up cost. Note 17 – 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 NOK 2.5 mill. in 2004. SF 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. SF entered into an agreement in 2010 with Kaspar Stømme Eiendom to create a jointly owned company, Luntevika Eiendom AS, with the purpose of developing the property for sale. During the Autumn 2014 the property was sold to Luntevika Eiendom and the settlement cancelled our property development asset. 2014 2013 3 289 109 3 275 809 12 488 13 300 -3 301 597 - 3 289 109 0 % 0%

Cost Price 01/01/14 Additions 2014 Disposals 2014 Cost Price 31/12/14 Depreciation

Note 18 – INVESTMENTS IN SUBSIDIARIES Name Number Strømme Micro Finance AS Mimeta AS Total investment in subsidiaries

10 500 26

Nominal value 1 000 5 000

Owner share 100 65

Book value in SF 37 329 847 130 000 37 459 847

Result in subsidiary 2014 16 715 023 -321 554 16 393 469

Equity in subsidiary 31/12/14 69 214 349 741 334 69 955 683

Strømme Micro Finance AS (SMF AS), with its main office in Kristiansand, is a wholly-owned subsidiary of SF. The company conducts the microfinance activities on behalf of SF and submits its own annual report. In 2014, the SMF AS group has received a total of NOK 4.2 mill from SF for operation and capacity building in microfinance. Mimeta AS, Centre for international culture development, has also got their office in Kristiansand, and is owned together with Vest-Agder County. The company manages SF’s efforts in international culture development. Mimeta got grants of altogether NOK 0.5 mill from SF in 2014. Note 18 b – INVESTMENTS IN OTHER COMPANIES Name Number Nominal value Hald International Centre SA Luntevika Eiendom AS Total

34

200 500

1 000 1 000

Owner share

Book Value in SF

Result in the company 2014

Equity in subsidiary 31/12/14

33 50

200 000 505 000 705 000

153 860 -265 083 -111 223

3 908 157 -27 234 3 880 923

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The joint venture Hald International Center (Hald) has its office in Mandal, and is owned with equal share by The Norwegian Mission Society, The Norwegiona Christian Student- and Schools movement and Strømme Foundation. The objective of Hald is giving courses and training for work within mission organisations, evangelisation and development work, as well as for exchange programmes in different parts of the world. Hald is a Not-for-Profit organisation and cannot give dividends to the owners. Hald is responsible for the Peace Corps 2014 grant of NOK 1.9 mill for SF’s exchange programme Act Now. Luntevika Eiendom AS, with office in Kristiansand, is owned in fellowship with Kaspar Strømme Eiendom AS. The company is established for facilitating a commercial sale of the residential housing property in Luntevika, Lillesand. In 2014 it took over the ownership of the property from SF. Note 19 – OUTSTANDINGS WITH SUBSIDIARIES AND OTHER COMPANIES The “Loans to subsidiaries” of NOK 76.8 mill consists of interest free subordinated loans of NOK 72.2 mill with no repayment schedule and an interest bearing loan of NOK 4.6 mill with agreed repayment schedule. The last one is given in connection with buyout of loans to clients in the Kaputiei project in Nairobi. All the loans are provided to Strømme Micro Finance AS. “Trade debtors” includes costs incurred on behalf of Hald International Center of NOK 0.3 mill. “Inter company receivables” consists of claims on the SMF AS group of NOK 1.4 mill and Mimeta of NOK 0.05 mill. “Other short term receivables” includes a sellers credit to Luntevika Eiendom AS of NOK 5.1 mill which matures as per specific agreement. “Intercompany debt” pr. 31/12/14 is related to the SMF AS group. Note 20 – INVESTMENTS IN CURRENT FINANCIAL ASSETS Category

Cost Price 01/01/14

Market based shares 30 000 Primary Capital certificates 953 436 Market based bonds 8 425 026 Total 9 408 462

Book value 01/01/14 30 000 941 903 8 425 026 9 396 928

Additions 2014

Disposals 2014

Change in value

- - 410 225 410 225

-30 000 - - -30 000

- 11 534 - 11 534

Devaluation pr 31/12/14 - - - -

Book value 31/12/14

Market value 31/12/14

- 953 436 8 835 251 9 788 687

1 162 961 8 910 260 10 073 221

Note 21 – LIQUIDITY AND RESTRICTED ASSETS Free funds in Kristiansand office Free funds at the Regional Offices Sum free funds Employees tax deducted account Project/Grant accounts with restrictions Memorial Fund Restricted funds at the Regional Offices Sum restricted funds Total

2014 2013 24 883 280 26 724 252 8 756 584 6 451 956 33 639 864 33 176 207 481 706 496 069 15 884 652 1 047 061 150 289 156 142 5 996 155 4 438 768 22 512 801 6 138 040 56 152 666 39 314 247

Note 22 – PENSION OBLIGATIONS The Strømme Foundation has a pension scheme that is comparable to the State pension fund. For 2014, the scheme covers 33 (33) people. In addition comes the remaining obligation in the phased out regular AFP scheme. SF has signed an agreement for a new AFP-plan through the Common National scheme of AFP’s. This agreement applies for 35 (33) people, and in 2014 payments were made both to the old (transition period) and new AFP scheme. 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: 2014 2.30 % 3.20 % 2.75 % 2.50 % 1.75%

Discount rate Expected dividend Salary adjustments / year Yearly G-regulation / inflation Expected pension escalation

Gross pension obligations at 31/12 calculated at - Value of pension funds at 31/12 calculated at + Deferred obligation in case of (loss) / profit = Calculated net pension obligations at 31/12 + Social Insurance contributions = Pension obligation as at 31/12 Net over-financing Net obligations - Sum 31/12/14: 590 080 The year’s pension accrual + interest cost + administration cost - Return on capital = Net pension cost + Social Insurance + Actuarial loss (gain) = Total pension cost

2013 4.00 % 4.04 % 3.75 % 3.50 % 2.00 %

Secured system 2014

Unsecured system 2013

Secured system 2014

24 500 063 -18 574 479 -5 428 254 497 330 70 124 567 454 0 567 454 1 739 397 876 115 210 403 -786 086 2 039 829 287 616 171 348 2 498 793

22 170 060 -17 108 341 -4 495 091 566 628 79 894 646 522 0 646 522 1 716 999 864 579 130 438 -642 258 2 069 758 291 836 232 413 2 594 007

16 763 0 3 944 20 707 2 919 23 626 0 23 626 0 1 006 0 0 1 006 142 -69 773 -68 625

Unsecured system 2013 33 525 0 64 289 97 614 13 764 111 378 0 111 378 0 4 370 0 0 4 370 616 0 4 986

The amount is included in “Salaries and personnel expenses” in the accounts. (Note 25). Actual yield on the pension funds was 5.25 % in 2014 (4.5 % in 2013).

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Note 23 – GRATUITY PAYMENTS AT THE REGIONAL OFFICES At all the regional offices SF as well as the employees make regular deposits into public gratuity funds. These funds are not on the SF balance sheet. In addition to that, in Asia and East Africa contributions are set aside for a final payment to employees when they leave, but employees are entitled to draw on it before leaving. The sum on the balance sheet refers to these two regions. In most cases both SF and the individual employee make contributions according to the local legislation. In West Africa there is a legal obligation to make a payment on termination, depending on the years of service, that is not included as a liability in the accounts. In South America there are no liabilities above the social security costs already accounted for. Note 24 – OPERATIONAL COSTS Even though SF does not present a traditional profit and loss account, the guidelines for charitable organisations require the disclosure of additional information that would be shown if the expenditure were categories by type and not activity. Notes 24, 25 and 26 contain such a breakdown. Cost type Project support Salary and personnel costs (Note 25) Other operational costs (Note 26) Depreciation Total operational costs

2014 75 565 001 36 449 228 36 741 178 467 447 149 222 854

2013 64 863 319 32 955 831 30 885 401 516 699 129 221 250

Note 25 – SALARIES AND PERSONNEL EXPENSES / OTHER ALLOWANCES Cost type 2014 Salaries in Kristiansand 15 688 240 Social Security 2 604 953 Pension Costs 1 701 634 Other Personnel Costs 793 552 Sum salaries and personnel expenses in Kristiansand 20 788 379 Salaries and allowances at Regional Offices 12 713 756 Salary and personnel expenses external programmes 2 947 093 Totalt 36 449 228

2013 14 830 874 2 391 278 2 272 137 965 312 20 459 601 10 904 754 1 591 476 32 955 831

From 2012 onwards we have shown projects where SF is implementing operator under “Salary and personnel exp. external programmes”. The average number of employees in Kristiansand was 31.5 (31.5). This amounts to 29.5 man-labour years in 2014, compared to 28.5 in 2013. In the Regional Offices the average number was 91 (86), equivalent to 89.6 man-labour years, compared to 85.3 in 2013. The total salary cost in 2014 for the Secretary General was NOK 730 259, other allowances NOK 87 974 and pension contributions NOK 121 527. The Secretary General has no bonus scheme or agreement of benefits in case of dismissal. In Norway SF is obliged to have a pension scheme according to the Compulsory service pension Law. The existing pension schemes fulfils this requirement (Note 22). The Executive Board and Advisory Board members have received no remuneration other than actual travelling costs. With the exception of salaries and travel claims, there are no financial transactions with employees or connected persons in Strømme Foundation in Norway. Outstanding loans to employees in the Regional Offices totalled NOK 96 604 at the year end compared to NOK 165 923 at the end of 2013. These are included in “Other short term receivables” in the balance sheet. The interest charge for the loans is 5 %. Note 26 – OTHER OPERATIONAL COSTS Office- and meeting costs ICT costs Consultancy / Audit fees, memberships Media, communication, postage Travel costs Fundraising campaigns Total other operational costs in Kristiansand Total office costs – Regional Offices ICT costs – Regional Offices Travel costs incl. vehicles – Regional Offices Total other operational costs – Regional Offices Office costs – external programmes Travel costs - external programmes Total other operational costs – external programmes Grand Total other operational costs

2014 1 628 380 4 940 860 1 476 343 2 795 961 3 757 965 7 545 283 22 144 792 3 559 635 1 536 074 4 660 140 9 755 849 2 754 163 2 086 374 4 840 537 36 741 178

2013 1 269 921 5 137 165 1 173 641 2 645 025 2 880 792 5 533 587 18 640 131 4 266 631 1 157 500 3 512 641 8 936 771 1 953 414 1 355 085 3 308 499 30 885 401

Note 27 - CURRENCY HEDGING The net gain on currency contracts materialized in 2014 was NOK 3.3 mill; this is not shown in the accounts. From 2008 to 2014 the total net gain is NOK 14.1 mill. At the end of the financial year, SF had forward currency contracts with a face value of USD 7.0 mill and EUR 2.4 mill which all terminate in 2015. The handling of the security of these contracts is shown in the accounting principles note. The real value of the contracts was NOK 8.6 mill at the end of year. In accordance with the chosen accounting principles, the change in value of the contracts is not shown in the accounts.  

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Consolidated accounts (STRØMME FOUNDATION, SMF AS GROUP, MIMETA) Note 28 – CONSOLIDATED SALARIES AND PERSONNEL EXPENSES/OTHER ALLOWANCES 2014 2013 Salaries in Kristiansand 17 256 923 16 771 541 Social Security 2 849 678 2 679 559 Pension costs 4 094 182 2 343 182 Other Personnel costs 870 133 1 022 171 Sum salaries and personnel costs in Kristiansand 22 770 916 22 816 453 Salaries and allowances in Regions / outside Norway 15 957 962 13 815 481 Salaries and allowances in external programmes 2 947 093 1 591 476 Total 41 675 971 38 223 410 Audit Fees (exclusive of VAT): Statutory Audit Fees 1 069 396 657 940 Other certification Fees 114 691 53 400 Other non-audit services 550 164 119 590 Total 1 734 252 830 930 In addition to the employees stated in Note 25, there are an additional 18 employees in the group, 3 of which are in Norway. The salary of the Secretary General is disclosed in Note 25. Fees paid to the group auditors in Norway in 2014 is NOK 1 155 322 exclusive of VAT. The audit fees in the regions totalled NOK 578 930. Note 29 – CONSOLIDATED PURPOSE ACTIVITIES The total purpose cost in the consolidated accounts are reduced by the total grants of NOK 4.2 mill that was provided by SF to the microfinance activity. These costs are in the consolidated accounts presented as part of “Result Microfinance”. Note 30 – INVESTMENTS IN MICROFINANCE SF has organized the microfinance activities through the subsidiary group SMF AS. In the consolidated accounts SMF AS is included according to the equity method. The year’s changes in the Microfinance investments:

Book value 01/01 Share of result Currency exchange differences Change in loan Book value 31/12

2014 132 037 021 19 812 856 6 327 383 5 165 292 163 343 552

2013 114 767 824 12 381 121 4 593 501 294 575 132 037 021

Note 31 - PURPOSE CAPITAL (PC) - GROUP Purpose Capital 31/12/2013 Founding capital PC with restrictions (SF projects) PC with restrictions (Microfinance) PC with restrictions (Mimeta) Minority interest with restrictions (Mimeta) Other purpose capital TOTAL PURPOSE CAPITAL

The years result

Currency exchange differences

3 326 092 11 854 950 6 125 611 103 023 169 15 613 644 6 327 383 690 877 -209 010 372 011 -112 544 65 737 473 14 800 645 185 004 572 36 218 347 6 327 383

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Purpose Capital 31/12/2014 3 326 092 17 980 561 124 964 196 481 867 259 467 80 538 118 227 550 301

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Strømme Foundation Board and Council Members 2014 The board; 31 December 2014 Svein Ove Faksvåg (chairperson) Torhill Selsvold Nyborg (vice chairperson) Ansgar Gabrielsen Hege Wallevik Olaf Gundersen Anna Minj Knut Vollebæk Deputy Representatives Trond M. Backer Cecilie Watne Ann Midttun

Council members; 31 December 201 Rannveig Rivedal Nilsen Kurt Mosvold (Chairperson) Dag Nordbø Kristin Andresen Henrik Syse Rune Bratseth Torger Reve Ingunn Breistein Elbjørg Dahl Njål Sævik Erik Solheim Rishi Sethia Endre Glastad Jan Oddvar Skisland Eli Beate Winsnes Hillesund Hilde Strømme Aase Lill Kimestad Rajeev Srivastava Snorre Kjesbu Svein Gunnar Gundersen. Tor Knutsen Election committee; 1 January 2015 Gunnleik Seierstad Hilde M. Sæbø Fjeldstad Stein Hannevik

The facts behind the figures Administration, Fundraising and Purpose cost HOW WE USE THE MONEY/ 2014 Purpose (83,4%) Administration (4,5%) Fundraising (12,1%)

THE FACTS BEHIND THE PURPOSE COST IN 2014 International project work (83,9%) Project support/follow-up in Norway (10%) Information, development work/education - public (6,1%)

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 Contributors: Trond Henrik Sand, Nadeeja Abeyasekera, Jeanett James Villegas, Doreen Muhereza, Tørres Gilje, Tore Martin Herland, Anne Breivik, Kristine S. Sødal, Vidar Moseidjord, Gro J. Kiledal, Rune Mørland, Øystein Venås Sørensen. Lay-out and graphic design: Oddvar Paulsen, Strømme Foundation. All photo: © Strømme Foundation

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Skippergaten 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: postkrs@stromme.org • www.stromme.org www.strommestiftelsen.no

SF annual report 2014  

Strømme Foundation Annual Report 2014

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