Page 1

watoto child care ministries Australia Group

annual report 2010 / 2011 1 watoto child care ministries Australia Annual report 2010/11


contents

1. Ten/Eleven Highlights.................................................3 2. Chairman’s Message..................................................4 3. CEO’s Message..........................................................5 4. Who is Watoto............................................................6 5. Sponsorship.............................................................13 6. Watoto Children’s Choir............................................19 7. Projects.....................................................................23 8. In Country Programs Uganda...................................27 9.

Financial Report - Watoto Australia Group...............31

10.

Financial Report - Watoto Australia Trust Account...42

2

Front Page Image: Fiona, a vocational student in Suubi watoto child care ministries Australia Annual report 2010/11


ten / eleven highlights $1.5 million raised for sponsorship Over $1.5m raised for sponsorship of

new office

babies, children, mothers, teachers and vulnerable women in the Living

In October Watoto Child

Hope program

Care Ministries Australia moved to our new premises in Springwood – 1 Murrajong St.

restore tour Australia hosted the Restore Tour in January with many lives being touched by the confronting and powerful stories of Child Soldiers.

beautiful africa In 2012 Watoto Children’s Choir will be touring Australia & New Zealand with the all new Beautiful Africa: A New Generation concert. We look forward to seeing you there.

our 10th choir in australia This year we have our 10th choir touring throughout Australia & New Zealand. With 22 children and 10 Adults, we have seen people challenged, lives changed and had a bit of fun along the way.

3 watoto child care ministries Australia Annual report 2010/11


chairman’s message Welcome Luke Willey... It is with a great deal of pleasure that, on behalf of the Board, I welcome and introduce Luke Willey, our new Watoto Child Care Ministries Australia CEO and Country Director. Luke was born and raised in Brisbane’s bayside and he and his wife Rachael have 2 daughters, Makayla and Lauren. Both Luke and Rachael have a heart for the children of Africa and a long association with Watoto, having worked in Uganda in 2003 and 2005 and led the Watoto Childrens’ Choir tour to Canada and the USA in 2004. Luke has a background as a professional photographer and is well known and respected in Brisbane’s photographic industry. He is very relational and brings a fresh, vibrant and exciting new drive to Watoto Australia which we trust will help grow this great work. The Board is impressed by his vision and we wish him and his staff all the very best for the year ahead.

Peter Harris Chairman of the Board

4 watoto child care ministries Australia Annual report 2010/11


ceo’s message “We are all called, but it is our call to respond” – unknown If ever there is a time to be involved in making a difference in the world - it is now. It is a great privilege and pleasure to be a part of a team of people here in Australia who are passionate about raising awareness and rallying support for the vulnerable woman & children of Uganda. It has been an exciting few months since starting in late May. We have seen our 10th Choir to visit Australia continue to develop as a team & raise awareness while they travel throughout our country. We have sponsored in excess of 600 new children, women and teachers as a direct result of this years “Concert of Hope” tour and have raised over $.5m to invest back into the work of Watoto. Team 49 will be heading back to Uganda late October. Our office is also excited and preparing for the Beautiful Africa: A New Generation tour, which will start in April 2012. There is a sense of anticipation with our staff about this all new concert with bookings already starting to be confirmed. In the last year there has been some significant changes not only in staff and structure here in Australia but also moving into our new premises in Springwood. Since Watoto was started here in Australia we had the support of Gateway Baptist Church, but as they have also expanded, we realised a new location for Watoto is what was needed for both of us to move forward. I want to thank Gateway for their continued support over the years; we could not have done it without you. I would also like to thank the individuals, families, companies, & organisations that have supported us over the 2010/11 financial year. I know first hand the difference your donations, pledges and sponsorships make in the lives of those who we have been called to help – So thank you for responding to this call. It brings me great pleasure to present to you Watoto Child Care Ministries Australia’s Annual report for 2010/11. As we continue to seek transparency throughout Watoto Australia we trust you will enjoy reading what was accomplished this past year.

Luke Willey CEO Watoto Australia & New Zealand 5 watoto child care ministries Australia Annual report 2010/11


who is watoto

6

Laminadera Village, Gulu watoto child care ministries Australia Annual report 2010/11


“it takes a village to raise a child” - african proverb

Our purpose Watoto is an holistic

care programme that

was initiated as a response to the overwhelming number of orphaned children and vulnerable

woman in Uganda. It is positioned to rescue an individual, raise each one as a

We exist to raise the next generation of African

leaders, by pursuing excellence in academic and practical skills, integrity in conduct and

moral

values, so that each one becomes

a responsible Christian and a productive

leader in their chosen sphere of life so that they will rebuild their nation.

citizen. We aim to care for 10,000 children in Uganda by 2023 and to replicate the model in other

The Watoto model involves physical care,

medical intervention including HIV/AIDS treatment, education – formal and technical, trauma counselling and spiritual

countries across the continent so as to fast-track the rescue of orphaned children and vulnerable women in Africa.

discipleship.

RESCUE

RAISE

REBUILD

Rescuing Children Raising Leaders Rebuilding the throughout Africa

within Africa

7 watoto child care ministries Australia Annual report 2010/11

Nations of Africa


the watoto story

I

n 1988, in a town called Rakai, I was confronted by a naked reality that I could not ignore. Eight years earlier, my family and I had moved to Uganda – a country famous for violence and poverty. In

Kampala, Uganda’s battered capital, we planted a church that we believed God would use to restore hope to the city and the nation. Uganda’s people had endured so much. Corrupt and oppressive rulers had waged ruthless wars against the people, and when they were done with their slaughter, nearly one million were left dead. I was taken to visit a 79-year-old widow. She had mothered seven children. As we walked through banana groves behind her small hut, she began to point out the graves of her husband and six of her children. AIDS had killed all. Her last surviving child – a daughter – was dying of the same disease. I was reminded of the verse in James 1:27 that says, “Religion that GOD the Father accepts as pure and faultless is this: to look after the orphan and the widow in their distress and to keep oneself from being polluted by the world.” My visit with this woman in a simple Ugandan village stirred me to the core of my being and became one of the defining moments of my life. Watoto Child Care Ministries Uganda was birthed out of our local church, Watoto Church, in 1994 as

a result. Gary Skinner - Founder: Watoto

Watoto Child Care Ministries Australia was established in 2003 to support the work of Watoto Uganda

8 watoto child care ministries Australia Annual report 2010/11


the pearl of africa

9 watoto child care ministries Australia Annual report 2010/11


accountability

W

atoto Child Care Ministries Australia continually strives for transparency in all areas of the organisation. As part of our accountability we report to two organisations. We report to and are reviewed by

the Australian Council for International Development (ACFID) and Global Development Group (GDG) over-

see all of Watoto Child Care Ministries international funds. We would like to take this opportunity to thank both ACFID & GDG in their support of Watoto here in Australia.

Global development group (GDC) Global Development Group is a Non Government

For

more

details

Organisation [NGO] carrying out humanitarian

ISOOnline.frontpage

visit

www.iso.org/iso/en/

projects with approved partners and providing aid

Is Global Development Approved?

to relieve poverty.

Global Development Group is a Non Government The

Australian

Treasurer

declared

Global

Organisation [NGO] carrying out humanitarian

Development Group an ‘approved organisation’

projects with approved partners and providing aid

under the OAGDS scheme on 10th March

to relieve poverty.

2004. From this date donations to the ‘Global Development Group Overseas Relief Fund’ were

The

declared tax deductible.

Development Group an ‘approved organisation’

Australian

Treasurer

declared

Global

under the OAGDS scheme on 10th March

International Organisation for Standardisation (ISO)

2004. From this date donations to the ‘Global

ISO is a network of the national standards institutes

declared tax deductible.

Development Group Overseas Relief Fund’ were

of 148 countries, on the basis of one member per country, with a Central Secretariat in Geneva,

Global Development Group funds projects through

Switzerland, that coordinates the system.

donations from the public and does not receive

Global Development Group has certification to AS/

funding from AusAID. It is not accredited.

NZS ISO 9001:2000 and is compliant.

10 watoto child care ministries Australia Annual report 2010/11


accountability Australian Council for International Development The

Australian

Council

for

International

Development is the peak Council for Australian not-for-profit aid and development organisations working to attain a world where gross inequality and extreme poverty are eradicated.

ACFID Code of Conduct—currently 122 signatories The ACFID Code of Conduct defines standards of best practice for international development organisations

and

represents

the

active

commitment of its signatories to conduct their activities with integrity and accountability. Watoto

Child

Care

Ministries

Australia

is

accountable to the ACFID code of conduct and adheres to the requirements of this code.

11 watoto child care ministries Australia Annual report 2010/11


our staff

Luke Willey

dennis Brown

adele turnbull

kerri-ann handy

melissa tully

isis claros

Charmaine brown

ruth mitchell

KARLI watkins

don martin

CEO

Finance Manager

Sponsorship Coordinator

Merchandise Coordinator

Receptionist 12

watoto child care ministries Australia Annual report 2010/11

Office Manager

Tour Coordinator

Receipting Officer

Public Relations/Media

Tour Bus Driver (Volunteer)


sponsorship

13

Suubi Child watoto child care ministries Australia Annual report 2010/11


sponsorship update

T

he

2010/2011

financial

year

boasted

a

challenging year for sponsorships in Australia,

which could largely be a result of the Global Financial Crisis. However, we are proud to report an additional 400 sponsorships since last year, despite many cancellations due to financial reasons.  Watoto Australia’s total sponsorship reported at the end of this period, was 3,787 which is a testimony to the lives we have helped to Rescue, Raise and Rebuild.

CHILD CARE INDIVIDUAL SPONSORS

14 watoto child care ministries Australia Annual report 2010/11

- Melissa Tully

CURRENT SPONSORSHIP AT A GLANCE • 1903 Child sponsorships • 103 Post Secondary sponsorships • 97 Teacher sponsorships • 306 Mother sponsorships • 20 Special Needs sponsorships • 404 Baby Watoto sponsorships • 954 Living Hope sponsorships


sponsorship update BABY SPONSORS

3 year goal Global

15 watoto child care ministries Australia Annual report 2010/11


2010-11 financials

W

- adele Turnbull

atoto Child Care Ministries Project funds of

received through the Australian Trust Account may not

$A1,751,013 were received through the Watoto

be forwarded to Uganda in the same financial year that

Australia Trust Account. A total of $A2,141,745 was sent

it has been received, as the funds are only sent when

to Global Development Group for transfer to Uganda.

required and can be utilized for the reason they have

These funds were spent across the Projects listed in

been received.

the following table. It should be noted that some funds

Sponsorship funds breakdown

Project Name Child Sponsorship

Brief Description Watoto is strongly committed to placing children

Amount Spent

Percent

$702,748

32.82%

$148,233

6.92%

in a safe family environment rather than a large institutional orphanage. They become part of a family unit for life in the Watoto community. A sponsored individual has multiple sponsors in order to provide the holistic care that is required to equip them for success in life. The sponsorship of a Watoto child, house mother, teacher, Baby Watoto or Living Hope helps to meet the recurring costs.

Babies Sponsorship

Baby Watoto is a home for abandoned and vulnerable babies. Tiny preemies to toddlers, found on rubbish heaps, in trash cans or abandoned in hospitals and police stations, are brought to their new home where they find acceptance and unconditional love. When these babies are old enough to enter a Watoto children’s village, they continue their journey to become Africa’s next generation of leaders. There are currently two babies’ homes in Kampala and one in Gulu.

16 watoto child care ministries Australia Annual report 2010/11


Sponsorship funds breakdown (cont.) Mother’s Sponsorship

Watoto children’s villages are a haven of security,

$111,426

5.20%

$34,451

1.61%

$430,577

20.11%

$342,788

16.00%

$52,866

2.47%

$139,150

6.50%

peace, education, purpose and spiritual vitality. Children between the ages of 2 and 12 are accepted into the villages, where they are cared for by a house mother, and live with 7 other siblings. They attend school and receive a quality education. A community centre for school assemblies, community functions and church services is also a part of the village. A clinic is established to provide adequate health care. These funds are to sponsor the House Mothers.

Teacher’s Sponsorship

These funds are to assist with the costs of school teacher’s in the villages by way of sponsorship.

Living Hope Sponsorship/ Donations

The most marginalised and wounded people in Africa are women. Left abandoned or widowed, many of them HIV+ themselves, they are destitute and desperate, fearing that their children will soon become more of Africa’s orphans. Living Hope is restoring dignity to vulnerable women through spiritual discipleship, improved quality of life, medical intervention including HIV/AIDS care, empowerment and income generating projects through microfinance loans. These funds are to support the Living Hope program.

Building Funds

You can visit Africa and experience the work of Watoto firsthand. Visitors to Uganda are welcome and appreciated. You can get involved by helping to build a village, serve as part of a medical team or participate in a ministry team. Each person, church, group or organisation raises the funds for the project they choose to participate in. Short and long term volunteer opportunities are also available.

Undesignated

Watoto’s partners contribute to infrastructure, future development, or investing in the lives of the individuals who are accepted into the Watoto family. Donate in kind from the needs list on our website or make a one-off donation in cash. There’s also an opportunity to support fundraising events, fundraise on behalf of Watoto or give a non-cash gift through the Watoto Leadership Foundation.

Goat Farm

At Watoto, it is critical to generate selfsustainability for continuing development. The Goat Farm is one project where Goats are farmed for milk to be used in the Watoto Babies Homes. It is planned for this project to become fully selfsustainable and also to be able to sell the milk and surplus goats to the community.

17 watoto child care ministries Australia Annual report 2010/11


Sponsorship funds breakdown (cont.)

Baby Special Needs

$25,160

1.17%

$112,786

5.26%

$41,560

1.94%

Specialised needs for the Baby Watoto program including Incubators, warming Beds, cots, cribs and other equipment.

Medical

Special medical needs including facial reconstructions, trauma rehabilitation, surgery costs.

Infrastructure

General infrastructure works to support all projects, including self-sustainability.

Aid and Development Distribution (%) Child Sponsorship

33%

Living Hope Sponsorship/Donations

20%

Building Funds

16%

Babies Sponsorship

7%

Goat Farm

7%

Undesignated

2%

Medical

5%

Mother’s Sponsorship

5%

Infrastructure

2%

Teachers Sponsorship

2%

Baby Special Needs

1%

TOTAL

100%

Baby Special Needs 1% Teachers Sponsorship Infrastructure 2% 2% Mother Sponsorship 5%

Undesignated 2%

Medical 5%

Child Sponsorship 33%

Goat Farm 7% Babies Sponsorship 7%

Building Funds 16%

Living Hope Sponsorship/Donations 20%

Graph data calculated by above supplied information

18 watoto child care ministries Australia Annual report 2010/11


watoto children’s choir 19

Watoto Choir 49 watoto child care ministries Australia Annual report 2010/11


THE CHOIR ON THE ROAD - kerri-ann handy

2

010-11 saw three choirs travel throughout

Child Care Ministries while touching the hearts of

Australia and New Zealand. The end of Choir 42

people all over our nation. Please see below for

in October 2010, Restore Tour throughout January

some information on each tour.

& February and since May 2011 we have had Choir

Next year we will be introducing our brand new

49 on the road – finishing up in October. I want to

concert – Beautiful Africa, A New Generation. This

thank all our concert co-ordinators, hosts, pastors,

inspiring new tour will start in April, travelling

volunteers and of course the Watoto adults and

throughout Queensland, New South Wales, Victoria,

children who gave their all to share the love and hope

South Australia and the North Island of our wonderful

of Christ out to our nation. The Watoto Children’s

New Zealand neighbours. We hope to see you!

choir helps to raise awareness and funds for Watoto

The Restore Tour: Child Soldier No More concept had been on the hearts of many for years but it wasn’t until early 2011 that we saw the purpose God had for this performance. Many lives were drastically changed and inspired by the stories told by these beautiful children who were forced to commit unimaginable atrocities on their own people. The message of unfailing hope through adversity could not have come at a better time for Australia as the nation battled floods and bushfires that devastated whole communities. The team took their message to large churches and small towns all over Australia and New Zealand, not leaving a dry eye in sight! We were overwhelmed by the response both financially and by the feedback we received. There is still much to be done in Northern Uganda but this tour has shown the world what can happen when we stand by each other offering forgiveness, love and a helping hand just as God shows us daily.

20 watoto child care ministries Australia Annual report 2010/11

Restore tour tells the story of the child soldiers of Northern Uganda


watoto children’s choir TOUR 42 The 2010/2011 financial year saw the end of the tour for Choir 42. This wonderful team had worked hard for six months to share the love, hope and forgiveness of our amazing God to Australia and New Zealand.

We are so thankful to those who

supported us by attending this performance, hosting the team and for those who partnered with us to see the work of Watoto continue to grow and reach more destitute individuals throughout Uganda. The team have long since gone and settled back into life in Uganda. The children have returned back to school and are growing and learning to become the next leaders of Uganda! Andrew dancing his heart out

TOUR 49 The 2011 Concert of Hope started their six month tour with much excitement in Perth WA. They then have taken their message across Australia and the North Island of NZ sharing the newfound hope they have in Jesus. These 22 beautiful children are advocates of the millions of orphaned children in Africa and they take their job seriously whilst having a tonne of fun doing it! They seek to share their restoration story so that others may partner with us to help change the story of someone else’s life. We have been blessed at the performances by hundreds of people coming alongside us through our sponsorship program and donating towards the work of Watoto. The children in turn have blessed thousands with their inspiring story and we have once again been overwhelmed by Uncle Brian with James, Emmy & Oscar

the feedback we’ve received. As the choir are still on the road we are excited to see and hear the work God is continuing to do through them!

21 watoto child care ministries Australia Annual report 2010/11


3 year choir strategy

O

ver the next 3 years, Watoto Australia will be implementing some significant changes to the way the Children’s choir travels through out Australia and New Zealand.

The goals we are looking to achieve as a direct result to the changes are as follows. • To communicate and raise awareness among Australian communities that are yet to hear of the work of Watoto. • To increase the numbers of people that experience the Watoto choir by 20% each year. • To reduce the cost of tour • To better understand the needs of churches as they reach their local communities • To Increase our community awareness by promoting and having a publicity plan for the Australian tour • To have a skeleton of each tour outlined before we approach churches. • Be in key cities at specific event times (eg. Hillsong, Easterfest) • Approach churches to nominate a key “ambassador” for the up coming tour in their church • To Employ a PR staff member 1 day per week in our Australian office to be dedicated in promo/ media/publicity • To convert awareness into action by raising 20 ambassadors & 20 Fundraisers per year • To have three Major media coverage events for 2012 tour • To have one major media coverage per choir month by the 2013 tour

These goals will help to continually improve the professionalism of Watoto Australia and of the choirs that tour here.

22

The Watoto Children’s Choir brings awareness and raises funds for the work of Watoto in Uganda watoto child care ministries Australia Annual report 2010/11


projects 23

Outer Kampala from above watoto child care ministries Australia Annual report 2010/11


global development group Development project reporting

D

evelopment working using tax-deductible donations included three Global Development Group approved projects:

• Watoto Childrens’ Village Project (Project J210 - Kampala) • Baby Watoto (Project J329 - Gulu) • Living Hope Development Program (Project J416 - Gulu)

Work is monitored by Global Development Group staff and reporting is done by Janet Ayo in the Watoto Kampala office.

24 watoto child care ministries Australia Annual report 2010/11


in country programs uganda 25

Suubi Babies Home watoto child care ministries Australia Annual report 2010/11


visit watoto

- dennis brown

Build Teams from Australia The Australian office assisted in arranging 15 Build Teams to visit Watoto and complete building projects in the year ending 30th June 2011. Houses, classrooms, medical facilities, administration & housing blocks were all projects that Australian Teams funded and worked on. These teams came from churches, schools, corporate and community groups and Watoto are very blessed to receive this much needed support. Team members are supervised by and work alongside the Ugandan Watoto Construction team We are well on target to increase the number of teams from Australia to 20 in the 2011/2012 period.

Individual Volunteers There were 10 individual volunteers from Australia, who spent a minimum one month volunteering in Watoto Uganda working and serving alongside the Watoto team and making contributions to transforming lives. These volunteers served in programmes such as Baby Watoto / Living Hope / Children’s villages / medical clinics / office and administrative areas. We currently have 13 individual volunteers registered to work in Uganda in the 2011/2012 period.

26 watoto child care ministries Australia Annual report 2010/11


visit watoto Watoto 360˚ Six students from Australia completed the Watoto 360˚ program, and is a Christian training program designed to encourage students in personal character development, cultivating a living relationship with God, and identifying their unique individual gifts and callings in God. WATOTO 360˚ is unique and comes out of our love for God and our desire to bring healing to our city, our nation, our continent and our world. WATOTO 360˚ is dynamic and filled with activity, as a result. WATOTO 360˚ does not use project funds from Australia

WATOTO 360˚ WATOTO 360˚ is a Christian discipleship course, not to be confused with a Bible college program. In-class instruction is combined with hands-on experience, giving students a balanced understanding of ministry. Our desire is for students to learn and grow as individuals, to acquire knowledge and to gain wisdom that comes from applying that knowledge, so that when ministry opportunities are presented, the experiences they have had will enable them to serve with excellence. Discipleship courses begin with basic fundamentals of Christianity moving towards a deeper understanding of discipleship toward the end of the program. There are currently 4 students from Australia registered for the next Watoto 360 progam which commences in January 2012.

27

Watoto 360˚ Class watoto child care ministries Australia Annual report 2010/11


our board Gary Skinner

Watoto Child Care Ministries founder. Gary founded Watoto after moving to Uganda in 1982 with his wife Marilyn & young family to start a cell based church in Kampala. Now living in Cape Town, Gary speaks internationally about the Watoto model and how it can be implemented through out the world.

Peter Harris

Chairman of the Board Peter is a financial consultant and mortgage manager, with over 40 years in finance, investment & merchant banking in senior management roles.

Stuart Robert

Federal Member of Parliament (FAIM, MBA, M IT, BA Hons, Grad Dip IM) Stuart is the current Shadow Minister for Defence Science, Technology and Personnel.

Bill Thorburn Bill has over 45 years experience as Senior Pastor and Teacher through out Australia and internationally. He has served on numerous boards & committees connected to community and church organisations.

Rod Carey Rod Carey is the Director/Secretary of Watoto Child Care Ministries Australia.

28 watoto child care ministries Australia Annual report 2010/11


REPORT

The Watoto Australia Group incorporating the activities of:

Watoto Child Care Ministries ABN 99 106 623 723

Watoto Australia Trust Account ABN 83 176 101 461

FINANCIAL REPORT FOR THE YEAR ENDED 30 June 2011

page 1 of 11


REPORT

The Watoto Australia Group INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2011 (Statement of Financial Performance)

REVENUE Donations and gifts - monetary & non-monetary

TOTAL

2011 company

2010 TOTAL

trust

1,770,243

19,231

1,751,013

2,086,608

Legacies and bequests

0

0

0

0

Grants • AusAID • other Australian • other overseas

0 0 0

0 0 0

0 0 0

0 0 0

44,354

1,518

42,836

26,416

Other income

2,462,177

919,396

1,542,782

2,370,737

Total revenue

4,276,775

940,145

3,336,630

4,813,071

2,141,745 9,799

0 9,799

2,141,745 0

3,322,966 290

0

0

0

0

62,469

62,469

0

73,820

Fundraising costs • public • government, multilateral and private

874,378 0

874,378 0

0 0

721,355 0

Administration

574,331

186,462

387,869

982,663

3,662,723

1,133,108

2,529,614

5,101,094

Investment income

EXPENSES Overseas projects • funds to overseas projects • other project costs Domestic projects Community education

Total expenses

Excess of revenue over expenses (shortfall) from continuing operations $ 614,052

page 4 of 11

$ (192,963)

$

807,015

$ (288,023)


REPORT

The Watoto Australia Group BALANCE SHEET AS AT 30 JUNE 2011 (Statement of Financial Position)

ASSETS Current assets • Cash and cash equivalents • Financial assets

TOTAL

2011 company

2010 $

trust

2,206,798 66,954

32,227 66,954

2,174,571 0

1,484,868 78,539

72,314 0

72,314 0

0 0

98,459 0

2,346,066

171,495

2,174,571

1,661,866

Current liabilities • Trade and other payables • Provisions

160,966 0

160,966 0

0 0

90,961 0

Non current liabilities • Payables • Other

103,211 0

103,211 0

0 0

103,211 0

Total liabilities

264,178

264,178

0

194,172

Non current assets • Property, plant and equipment • Other Total assets LIABILITIES

Net assets

$ 2,081,888

$ (92,682)

$ 2,174,571

$ 1,467,694

$ 2,081,888

$ (92,682)

$ 2,174,571

$ 1,467,694

EQUITY Reserves

page 5 of 11


REPORT

The Watoto Australia Group STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2011 Balance at 1 July 2010 (commencing balance)

Retained Earnings

1,467,837

Total 1,467,837

0

614,052

Excess of revenue over expenses

614,052

0

Amount transferred (to) from reserves Balance at 30 June 2011 (year end balance)

Reserves

$ 2,081,888

0

0 $

-

$

2,081,888

No single appeal or other form of fund raising for a designated purpose generated 10% or more of total income for the period under review.

page 6 of 11


REPORT

The Watoto Australia Group Notes to and forming Part of the Accounts as at 30 June 2011 NOTE 1:

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

This financial report is a special purpose financial report prepared in order to satisfy the accounts preparation requirements of the . The Directors/Trustees have determined that the group is not a reporting entity as referred to in Statements of Accounting Concept 1: Definition of a Reporting Entity, and there is no requirement to apply accounting standards in the preparation and presentation of these statements. The statements have been prepared in accordance with the following accounting standards: AASB AASB AASB AASB AASB AASB

101 102 107 108 110 1048

Presentation of Financial Statements Inventories Cash Flow Statements Accounting Policies, Changes in Accounting Estimates and Errors Events occurring after Reporting Date Interpretation and Application of Standards

No other Accounting Standards, Urgent Issues Group Consensus Views or other authoritative pronouncements of the Australian Accounting Standards Board have been applied. The report is also prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, except where specifically stated, current valuations of noncurrent assets. The following material policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this report: (a)

INCOME TAX As not for profit entities, the The Watoto Australia Group is entitled to an exemption from the Australian Taxation Office from the payment of Income Tax on income derived by it and from the lodgement of income tax returns.

(b)

CASH For the purposes of the statement of cash flows, cash includes cash on hand and in at call deposits with banks or financial institutions, investments in money market instruments maturing within less than two months, net of bank overdrafts.

(c)

INVENTORIES Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first in first out basis.

(d)

REVENUE Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable. All revenue is stated net of the amount of GST.

(e)

GST Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST is not recoverable from the Australian Taxation Office. In these cases, GST is recognised as part of the cost of acquisition of the asset or the expense. Cash flows are presented in the cash flow statement on a gross basis.

page 7 of 11


NOTE 2:

NOTE 3:

NOTE 4:

Profit from Ordinary Activities Profit from ordinary activities has been determined after

(a) Expenses – Remuneration of Auditor (b) Expenses - Depreciation & Amortisation (c) Expenses - Bad & Doubtful Debts Group Details

REPORT

The Watoto Australia Group

$

$ $ $

2,206,383 415 2,206,798

TOTAL

9,279 31,414 4,000

TOTAL

Notes to and forming Part of the Accounts as at 30 June 2011

The company is limited by guarantee. If the company is wound up, the Constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstanding delegations of the company. The trust is a charitable trust. The principal place of business is 3352 Pacific Highway SPRINGWOOD Qld 4127

CASH FLOW INFORMATION (a) Reconciliation of Cash Cash at end of the financial period as shown in the Statements of Cash Flows is reconciled to the related items in the balance sheet as follows: Cash at bank Bank Overdraft Cash on hand Term Deposits

page 8 of 11

$ $ $

$

2011 COMPANY 9,279 31,414 4,000

2011 COMPANY 31,822 405 32,227

$ $ $

$

TRUST

TRUST

-

2,174,561 10 2,174,571

$ $ $

$

2010

11,063 34,677 -

2010

1,483,802 1,066 1,484,868


NOTE 4:

NOTE 5:

NOTE 6:

REPORT

The Watoto Australia Group

( (

(

TOTAL 614,052 31,414 248) 2,699) 28,036 77,221 20,577) 727,198

(

2011

COMPANY 192,963)

2011 COMPANY 10,758 8,232) 8,396 22,033 32,954

34,000

$

$

66,954

(

TOTAL 10,758 8,232) ( 8,396 22,033 32,954

34,000

$

2011 COMPANY 34,000 $

66,954

TOTAL 34,000

$

$

$

Notes to and forming Part of the Accounts as at 30 June 2011

CASH FLOW INFORMATION (continued) (b) Reconciliation of Cash Flow from Operations with Operating Profit after Income Tax Operating Profit after Income Tax Non-cash flows in operating surplus Amortisation Depreciation & expensed equipment Investments written off (Profit) Loss on sale of property, plant and equipment Changes in assets and liabilities Decrease /(Increase) in trade and term debtors Decrease / (increase) in prepayments Decrease / (increase) in other assets Decrease / (increase) in inventories Decrease / (increase) in intangibles (Decrease) / increase in trade creditors and accruals (Decrease) / increase in employee provisions (Decrease) / increase in income in advance (Decrease) / increase in GST Payable Cash flows from operations RECEIVABLES & PREPAYMENTS Trade Debtors Other Debtors Accrued GST Receivable Accrued Income Receivable Prepayments Total Receivables & Prepayments INVENTORIES Stock on hand Total Inventories

page 9 of 11

$

$

$

(

(

(

(

(

($

2010

288,023)

-

35,760 9,109) 32,874) 3,719) 54,119) 13,296

338,788)

2010

21,612

2,278 -

$

-

-

$

$

83,648

62,036

62,036

2010

19,334

-

-

-

TRUST 807,015

TRUST

TRUST

-


NOTE 7:

NOTE 8:

FIXED ASSETS

REPORT

The Watoto Australia Group

TOTAL

265,873 (193,558) 72,314

TOTAL

Notes to and forming Part of the Accounts as at 30 June 2011

Plant & Equipment Plant Equipment Vehicles & Chattels at cost / valuation Accumulated Depreciation CREDITORS, ACCRUALS & TAX LIABILITIES

2011 COMPANY 265,873 (193,558) 72,314 2011 COMPANY

264,178

8,396) 8,396 264,178

264,178

50,205 110,762 103,211 -

8,396) ( 8,396 $ 264,178 $

160,966 103,211

50,205 110,762 103,211 $

$ $

Trade Creditors & Accruals Trade Creditors Accrued Expenses Bank Overdraft Loans Payable - within 12 months Loans Payable - over 12 months Monies received in advance Secured Loans Payable

$ $

160,966 103,211

$

Total Creditors & Accruals GST & Tax Liabilities GST Collected less GST Paid less Amounts Receivable Total GST & Tax Liabilities Total Creditors, Accruals & Tax Liabilities

$ $

(

Current Component Non-Current Component

page 10 of 11

$

$

$ $ $

TRUST

TRUST

-

-

-

-

-

2010

260,702 (162,243) 98,459

2010

-

$ $

$ $

$

95,927 103,211

12,182 12,182 199,138

186,957

30,624 53,121 103,211 -

-


REPORT

INDEPENDENT AUDIT REPORT

To the members of Watoto Australia Group SCOPE

We have audited the summarised financial report of the Watoto Australia Group for the year ended 30 June 2011 in accordance with Australian Accounting Standards. Watoto Australia Group The Watoto Australia Group comprises the following members: • •

Watoto Child Care Ministries ABN 99 106 623 723 [company], a company limited by guarantee; and Watoto Trust ABN 83 176 101 461 [trust], a trust established under a Deed of Trust.

AUDIT OPINION In our opinion, the information reported in the group financial report is consistent with the annual statutory reports of company and trust from which it is derived and upon which we expressed an unqualified opinion (taking into account any limitations or issues noted above) to the members dated 30 November 2011. For a better understanding of the scope of our audit, this report should be read in conjunction with our audit reports of those annual statutory financial reports. Dated:

30 November 2011

Signed:

____________________________________ Robert White Registered Company Auditor Romar Associates Pty Ltd ABN 80 010 323 083 Accountants Advisers Auditors

Romar Associates Pty Ltd ABN 80 010 323 083 Accountants Advisers Auditors PO BOX 3080 SUNNYBANK SOUTH Qld 4109 Ph: (07) 3323 1704; mobile: (04) 1260 3133 Fax: (07) 3323 3339 e-mail: romarcpa@ozemail.com.au

page 11 of 11


REPORT

Watoto Australia Trust Account ABN 83 176 101 461

FINANCIAL REPORT FOR THE YEAR ENDED 30 June 2011

page 1 of 12


REPORT

Watoto Australia Trust Account INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2011 (Statement of Financial Performance)

2011 $

REVENUE

2010 $

Trading Income

0

0

less Direct Costs

0

0

Gross Profit

0

0

1,751,013

2,070,844

Legacies and bequests

0

0

Grants • AusAID • other Australian • other overseas

0 0 0

0 0 0

42,836

24,427

Other income

1,542,782

1,783,903

Total revenue

3,336,630

3,879,174

2,141,745 0

3,322,966 0

Domestic projects

0

0

Community education

0

0

Fundraising costs • public • government, multilateral and private

0 0

0 0

387,869

847,724

2,529,614

4,170,691

Donations and gifts - monetary & non-monetary

Investment income

EXPENSES Overseas projects • funds to overseas projects • other project costs

Administration Total expenses Excess of revenue over expenses (shortfall) from continuing operations

page 3 of 12

$

807,015

$ (291,516)


REPORT

Watoto Australia Trust Account BALANCE SHEET AS AT 30 JUNE 2011 (Statement of Financial Position)

ASSETS Current assets • Cash and cash equivalents • Financial assets

2011 $

2010 $

2,174,571 0

1,367,556 0

0 0

0 0

2,174,571

1,367,556

Current liabilities • Trade and other payables • Provisions

0 0

0 0

Non current liabilities • Payables • Other

0 0

0 0

Total liabilities

0

0

$ 2,174,571

$ 1,367,556

$ 2,174,571

$ 1,367,556

Non current assets • Property, plant and equipment • Other Total assets LIABILITIES

Net assets EQUITY Reserves

page 4 of 12


REPORT

Watoto Australia Trust Account STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDING 30 JUNE 2011 Retained Earnings Balance at 1 Jul 2010 (commencing balance)

1,367,556

Excess of revenue over expenses

Reserves

Total 0

807,015

Amount transferred (to) from reserves Balance at 30 June 2011 (year end balance)

1,367,556 807,015

0

0

0

2,174,571

0

2,174,571

No single appeal or other form of fund raising for a designated purpose generated 10% or more of total income for the period under review.

page 5 of 12


REPORT

Watoto Australia Trust Account ABN 83 176 101 461

-

$ 1,367,556

1,367,556

$

Cash available at beginning of year

$

-

1,751,013

1,751,013

$

Cash raised during year

(

-

$ (943,997)

943,997)

$

Cash disbursed during year

$

-

Refer note 10

Refer note 10

COMMENTS

-

Refer note 10 2,174,571

2,174,571

$

Cash available at beginning of year

STATEMENT OF CASH MOVEMENTS FOR DESIGNATED PURPOSES FOR THE YEAR ENDED 30 June 2011

Designated Purpose or Appeal A Designated Purpose or Appeal B Total for other purposes TOTAL

page 6 of 12


REPORT

Watoto Australia Trust Account ABN 83 176 101 461

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 June 2011

Balance at 1 July 2009 add Surplus (Deficit) attributable to members Transfers from Reserves

Retained Earnings $ 1,659,062.00

Note (

Sub-total less Transfers to Reserves

Reserves $

TOTAL $ 1,659,072.00

-

291,516.35) -

-

1,367,545.65

0.00

-

(

-

291,516.35) 1,367,555.65 -

Balance at 30 June 2010 add Surplus (Deficit) attributable to members Transfers from Reserves

1,367,545.65

-

1,367,555.65

807,015.31 -

-

807,015.31 -

Sub-total less Transfers to Reserves

2,174,560.96

-

2,174,570.96

Balance at 30 June 2011

$ 2,174,560.96

-

page 7 of 12

$

-

$ 2,174,570.96


REPORT

Watoto Australia Trust Account ABN 83 176 101 461

Notes to and forming Part of the Accounts as at 30 June 2011 NOTE 1:

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

This financial report is a special purpose financial report prepared in order to satisfy the accounts preparation requirements of the . The Trustees have determined that the trust is not a reporting entity as referred to in Statements of Accounting Concept 1: Definition of a Reporting Entity, and there is no requirement to apply accounting standards in the preparation and presentation of these statements. The statements have been prepared in accordance with the the following accounting standards: AASB 101 AASB 107 AASB 108 AASB 110 AASB 1048

Presentation of Financial Statements Cash Flow Statements Accounting Policies, Changes in Accounting Estimates and Errors Events occurring after Reporting Date Interpretation and Application of Standards

No other Accounting Standards, Urgent Issues Group Consensus Views or other authoritative pronouncements of the Australian Accounting Standards Board have been applied. The report is also prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, except where specifically stated, current valuations of noncurrent assets. Accounting policy changes under AIFRS have not affected existing balances reported. Thus figures have not been restated. The following material policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this report: (a)

INCOME TAX As a not for profit entity, the Watoto Australia Trust Account is entitled to an exemption from the Australian Taxation Office from the payment of Income Tax on income derived by it and from the lodgement of income tax returns.

(b)

CASH For the purposes of the statement of cash flows, cash includes cash on hand and in at call deposits with banks or financial institutions, investments in money market instruments maturing within less than two months, net of bank overdrafts.

(c)

REVENUE Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable. All revenue is stated net of the amount of GST.

(d)

GST Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST is not recoverable from the Australian Taxation Office. In these cases, GST is recognised as part of the cost of acquisition of the asset or the expense. Receivables and Payables in the Balance Sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis.

NOTE 2:

Profit from Ordinary Activities

2011

Profit from ordinary activities has been determined after

(a) Expenses – Remuneration of Auditor (b) Expenses - Depreciation & Amortisation (c) Expenses - Bad & Doubtful Debts

$ $ $

page 8 of 12

2010 -

$ $ $

-


REPORT

Watoto Australia Trust Account ABN 83 176 101 461

Notes to and forming Part of the Accounts as at 30 June 2011 NOTE 3:

CASH FLOW INFORMATION (a) Reconciliation of Cash Cash at end of the financial period as shown in the Statements of Cash Flows is reconciled to the related items in the balance sheet as follows: Cash at bank Bank Overdraft Cash on hand Term Deposits

2011 2,174,561 10 2,174,571

$

Operating Profit after Income Tax Non-cash flows in operating surplus Amortisation Depreciation & expensed equipment Investments written off (Profit) Loss on sale of property, plant and equipment Changes in assets and liabilities Decrease /(Increase) in trade and term debtors Decrease / (increase) in prepayments Decrease / (increase) in other assets Decrease / (increase) in inventories Decrease / (increase) in intangibles (Decrease) / increase in trade creditors and accruals (Decrease) / increase in employee provisions (Decrease) / increase in income in advance (Decrease) / increase in GST Payable

NOTE 4:

(

291,516)

-

-

-

10,500 -

807,015

RECEIVABLES & PREPAYMENTS

2011

Trade Debtors Other Debtors Accrued GST Receivable Prepayments $

page 9 of 12

$

2010

807,015

$

Total Receivables & Prepayments

1,367,546 10 1,367,556

2011

(b) Reconciliation of Cash Flow from Operations with Operating Profit after Income Tax

Cash flows from operations

2010

($

281,016) 2010

-

$

-


REPORT

Watoto Australia Trust Account ABN 83 176 101 461

NOTE 5:

Notes to and forming Part of the Accounts as at 30 June 2011

CREDITORS, ACCRUALS & TAX LIABILITIES

2011

Trade Creditors & Accruals Trade Creditors Accrued Expenses Bank Overdraft Loans Payable - within 12 months Loans Payable - over 12 months Monies received in advance Secured Loans Payable

$

Total Creditors & Accruals GST & Tax Liabilities GST Collected less GST Paid less Amounts Receivable Total GST & Tax Liabilities Total Creditors, Accruals & Tax Liabilities

$

Current Component Non-Current Component NOTE 6:

2010 -

-

$ $ $

-

$ -

$

-

-

$ $ $

-

-

MOVEMENTS IN EQUITY TRUST CAPITAL Balance at start of period Settlement Sum Surplus (Deficit) for Period

1,367,556 10 807,015 $

Balance at end of period

page 10 of 12

2,174,581

1,659,072 10 291,516)

( $

1,367,566


REPORT

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF

WATOTO AUSTRALIA TRUST ACCOUNT ABN 83 176 101 461

SCOPE REPORT

on the Financial Report

We have audited the attached financial report of Watoto Australia Trust Account, being a Special Purpose Financial Report which comprises the Balance Sheet, Income Statement, Statement of Cash Flows and Notes to the Financial Statements for the financial year ended 30 June 2011 as set out on the accompanying pages. DIRECTORS’

Responsibility for the Financial Report

The trust’s directors are responsible for the financial report and have determined that the accounting policies used and described in Note 1 to the financial report and the accounting disclosures contained therein are appropriate to meet the needs of the members. The directors’ responsibility also includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. AUDITOR’S

Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. The financial report has been prepared for distribution to members of the entity for the purpose of fulfilling the directors’ financial reporting. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members or for any purpose other than that for which it was prepared.

Robert White Registered Company Auditor Romar Associates Pty Ltd Accountants Advisers Auditors ABN 80 010 323 083 PO BOX 3080 SUNNYBANK SOUTH Qld 4109 Ph (07) 3323 1704 Fax: (07) 3323 3339 e-mail: admin@romar.net.au | romarcpa@ozemail.com.au

page 11 of 12

Page 1 of 2


REPORT

Limitation to Scope As is common for organisations of this type, it is not practicable to cost effectively audit the system of internal control over cash receipts of donations, subscriptions or other fund raising activities. Accordingly, our audit tests over receipts were limited to amounts already recorded in the books and records of the entity. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements. AUDITOR’S OPINION In our opinion, the financial report of Watoto Australia Trust Account for the year ended 30 June 2011 is in accordance with the constitution, including i.

giving a true and fair view of the trust's financial position as at 30 June 2011 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1; and

ii.

present a view which is consistent with our understanding of the entity’s financial position and the results of its operations; and

iii.

complying with Australian Accounting Standards to the extent described in Note 1.

Robert White Registered Company Auditor Reg No.:

Registered Company Auditor (# 5902)

Dated:

30 November 2011

Page 2 of 2

page 12 of 12


www.watoto.com

52 watoto child care ministries Australia Annual report 2010/11

Watoto Australia - Annual Report 2011  

Annual Report for the 2010/2011 Financial Year

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