2016 Annual Report - CA

A N N UA L R E P O RT 2 0 1 6

TABLE OF CONTENTS A Message From Our Founders

1

Who We Are

2

Q&A With Our Executive Director

4

Our Neighbourhood Church

9

Living Hope

12

Keep A Girl In School

13

Our Villages

The Village Model

18

Baby Watoto

22

Education

24

Medical

26

Sustainability

27

Our Friends Sponsorship

31

Visit Watoto

32

From The Heart Of A Sponsor

33

Our World

Watoto Children’s Choir

36

Where We Are

38

A Message From Watoto Canada

40

Connecting With Our Partners

41

Financials

Watoto Canada Financials

42

Watch a video from our founders at: vimeo.com/watoto/OurFounders

A MESSAGE FROM OUR FOUNDERS This year has been full of exciting achievements. By the power of Jesus’ love, there has been incredible transformation in individuals, families and communities throughout our nation.

In 2016, we saw 314 children and babies rescued and placed in new families. We reached 562 women, and through them, improved the lives of their children. The Watoto Children’s Choir travelled across the world, sharing a message of hope and 40 students graduated university, ready to become leaders in their nation.

As we reflect on these successes, we are reminded once again that we could never have done this alone.

It has only been achieved with the meaningful partnership of friends from all over the world.

That’s why we’re excited to be able to present you with this year’s highlights and stories from across Watoto. From the villages, to Baby Watoto, to the mothers we’re reaching, right in their neighbourhoods; these stories are just some of the thousands of lives that have been transformed, all for the glory of God. As you read, we pray that you will be inspired and encouraged as you see for yourselves the transformation taking place in Uganda.

Together, we are rebuilding the nation.

Gary and Marilyn Skinner Founders, Watoto

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WHO WE ARE Watoto is a family of people from all over the world who are working together to ensure that the forgotten have a place to belong.

In a time of civil war, we planted a local church in Kampala, Uganda to speak hope and life to the nation.

Since then, we’ve placed thousands of orphans in families, empowered vulnerable women to reach their communities, rescued babies and former child soldiers, and sent children’s choirs across six continents.

As we work alongside the most vulnerable in our society, our aim is to rescue individuals and raise each one as a leader in his or her sphere of life so that, in turn, they will rebuild the nation.

In over 30 years, the challenges facing the nation have changed, but our vision remains the same.

And in all of this, Watoto remains a local church, committed to celebrating Christ and caring for community.

Q & A WITH OUR EXECUTIVE DIRECTOR Arora Majugo is quite a character. Football fan, father-ofthree and a proud Ugandan, he’s responsible for ensuring that Watoto is fulfilling its vision to transform the nation.

Tell us Arora, why did you want to work with Watoto?

I originally joined Watoto because I wanted to work with children. When I was growing up, I was the youngest child in a large family and I was often pushed aside. As a result, I developed a strong sense that every child has something to offer and I wanted to work where I could encourage children.

What’s the biggest challenge you face?

The biggest challenge, especially as Watoto grows in size, is that we must never lose sight of the individual. Our focus isn’t just on a few children who are perhaps academic ‘high-fliers’, but on each child, no matter their ability. We want to ensure that every child leaves Watoto as a changed person with a practical skill in their hands, ready to be a leader in their nation.

What does family mean to you?

To me, family means belonging. But family also has a location and that is the home. I lived and worked on a Watoto village for four years, and it taught me the true value of home. I saw how important it was that each Watoto child had his own house, his own mum, his own bed. Because of this, every child knows that they always have a safe place where they belong.

What one word would you use to describe 2016?

My word for the year is 'success'. There was a time when a large number of children were orphaned, often through war or HIV/AIDS, but that is changing. I believe that we have contributed to this change. Now, we have hope and as we expand our work with vulnerable women, who are the nation’s mothers, it feels like we have won a victory.

Finally, what would you say to our partners, both in Uganda and overseas?

I would say thank you for your support. But I would also say, come with us. A new need is unfolding, so join us in this next phase of our work. We won one victory, help us to fight for the next.

Watch Arora answer some tough questions at vimeo.com/watoto/AroraQandA

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OUR NEIGHBOURHOOD For over 30 years we’ve been meeting the greatest need, wherever we find it.

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CHURCH In 1984, Uganda was a broken place. In the midst of a civil war, Watoto Church was planted to bring healing to the community and to rebuild the nation.

More than 30 years later, we are still a church dedicated to transforming our neighbourhoods through loving vulnerable women, keeping girls in school and caring holistically for thousands of widows and orphans.

Today, we see over 27,000 people meet every weekend for church across the city of Kampala, in Gulu, northern Uganda and in Juba, South Sudan. Together, we’re celebrating Christ and caring for community as we continue our commitment to bring transformation in the hardest of places.

Check out this video from our church in Juba, South Sudan at vimeo.com/watoto/Juba

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LIVING HOPE Africa’s greatest resource is her women. And the harsh reality is that many of these women have been left to bear the brunt of war, poverty and disease. But we know that when a woman is enabled to reach her full potential she has the power to raise her family and become a leader in her community.

We’re empowering Uganda’s most vulnerable women, and we’re doing it through women like Allen. Allen is a Watoto community worker, who identifies and supports women in need. But Allen’s story is also typical of the women she reaches in her community.

In 1998, Allen’s husband died, leaving her a widow, HIV positive, with three young children. Her husband’s family took everything from her, including her home.

Over the many difficult years that followed, Allen’s greatest priority was always education for her children. She worked hard to provide school fees, but for herself she had little hope.

Allen was brought into Watoto later in life, and she received skills training, literacy classes and discipleship that helped her believe in her future.

Today, all three of her children have attended university. Allen feels that she is truly living again and is passionate about reaching young mothers.

‘I cry when I think of the abandoned mother, living in a one room house with a leaking roof. I think of her suffering, and her children’s suffering, and I remember what it was like. But I find these women and encourage them, because I am proof that they can hope again.’

In 2016, we extended our work to reach more women, right in their neighbourhoods. We trained and discipled 562 women and, for the first time, we welcomed 112 of their children into our Watoto schools.

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KEEP A GIRL IN SCHOOL When a girl stays in school, everybody wins.

Since 2012, we have been working alongside local schools to reduce the primary school dropout rate among adolescent girls.

On average, girls in rural Uganda miss up to eight days of school per term due to menstruation.

To help keep girls in school we distribute sanitary products and new undergarments, as well as provide hygiene education and discipleship.

With your support, in 2016 together we were able to acheive the following:

2,228 9,429

GIRLS WERE SUPPORTED WITH SANITARY PRODUCTS & UNDERGARMENTS GIRLS & BOYS REACHED THROUGH HYGIENE EDUCATION & DISCIPLESHIP

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MEET RITAH ‘My name is Ritah. I was lost, but now I’m found. I can support my family and provide education for my children. I am able to take care of myself.’

In 2012, Ritah discovered that she was HIV positive.

She was struggling financially and was unable to afford school fees for her eldest child. Pregnant with her second child, she had also recently been abandoned by the child’s father.

Ashamed of her status, Ritah felt isolated. She was terrified that she would die and leave her children without support.

Following the birth of her daughter, Watoto reached out to Ritah. It was a life-changing moment for her.

She met other HIV positive women who shared their condition openly, and discovered love and hope in the Watoto family.

Ritah received discipleship, skills training and medical care. For the first time, she was equipped to provide for herself.

Today, she would describe herself as a woman of hope. Through what she has learnt, she is confident that she can be a better mother to her two children, and that she can provide for them.

In 2016, Ritah’s son, Arthur, was offered an education at a Watoto school. This opportunity is providing Arthur with a quality of education far beyond anything Ritah could have expected, and she is overjoyed. She is now able to afford school fees for her daughter and, as she continues her training, she is working towards the day when she can fully meet the needs of both her children.

Women like Ritah are raising Africa’s next generation. When a woman is equipped she can reach her full potential and her whole family is transformed.

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OUR VILLAGES Our villages provide homes and families for over 3,000 orphaned and vulnerable children.

We currently operate three villages in Uganda: Bbira and Suubi in Kampala, and Laminadera in Gulu, northern Uganda.

THE VILLAGE MODEL The Watoto village model is designed not only to meet the physical needs of a child, but to provide everything they need to grow up healthy and whole, with purpose and meaning. We believe this is possible when each child is raised within a family.

In each house you’ll find a woman who has come to Watoto to be a mother to eight vulnerable children. Together they are a family, and she is raising them with love and dignity.

Each village contains a medical clinic, education from nursery to high school, a community centre for church and social events, and a water project. Most importantly, it’s a place that a family can call home.

We'd like to introduce you to Mama Justine's family, just one of the many families that make up Watoto. Like all of our mothers, Mama Justine is a loving mother who cares for eight children.

Elisha, the eldest child, wasn't available for photos as he is currently away studying at university.

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M E E T M A M A J U S T I N E ’ S FA M I LY MAMA JUSTINE After her husband passed away, Justine lost her home and she struggled to provide for her family. But today, Justine would say that she’s the happiest mother around.

ELLEN AGE 6

Ellen was rescued as a baby by Baby Watoto.

Her favourite colour is yellow and she loves singing. Her brothers say she’s stubborn, but she would strongly disagree.

S OW E D I

PRISCILLA

Sowedi loves mending things. If he’s not busy playing football, then you can probably find him devouring his favourite food, chicken and rice.

Priscilla travelled on the Watoto Children’s Choir to Australia, and her favourite memory is seeing her very first kangaroo. She loves reading, especially classics, like Sweet Valley High.

TIMOTHY

B E N JA M I N

While on tour with our choir, Timothy saw his first live basketball game and he’s been playing basketball ever since. Of course, when he grows up he wants to be an engineer, but he’s not ruling out the NBA quite yet.

Benjamin has a gift for singing and loves serving in church. He really likes having so many brothers because he can do anything with them, and he never feels alone.

BRADLEY

A G AT H A

Bradley is all about using his talents. He’s a gifted artist who loves drawing portraits and one day, he wants to use his artistic skills to be an architect.

Agatha came to Watoto three years ago, and her life has never been the same. She now has a best friend named Annette and the two can often be found talking and laughing together.

AGE 10

AGE 14

AGE 16

AGE 13

AGE 15

AGE 17

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BABY WATOTO Baby Watoto cares for abandoned babies aged 0-2 years old. Found in pit latrines, left at bus stops and churches, and even found by the side of the road, these babies have been abandoned in dire situations. We thank God that together, we can change their stories.

At Baby Watoto we welcome them into their new family. They are loved and nurtured by a nanny who quickly becomes a mother to them. Each of our nannies cares for a family of four babies.

These are her babies from the moment they arrive, until they are ready to move into a Watoto village.

We believe that every baby needs the love of a mother-figure, and these family units help to facilitate the attachment which is necessary for their healthy development. When a baby is ready to transition to a village, the new mother and the nanny work closely together for an extended period to ensure that the child feels comfortable and secure moving into their new home.

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# OF BABIES RESCUED IN 2016

1,212

# OF BABIES RESCUED TO DATE

MEET NANNY CARO Tell us a little bit about yourself…

My name is Caroline, ‘Caro’ for short, and I’ve been a Watoto nanny for five years.

And tell us about your babies…

My little family of four includes Baby Jeremy, Baby Benjamin, Baby Isaac and little Agnes. They’re very cute, they get lots of cuddles and they love smiling and playing with each other.

What’s your favourite memory from your time as a nanny?

My favourite memory involves little Agnes. She has an amputated leg and we didn’t expect that she would walk for a little while. So I’ll never forget the day I saw her walk for the first time. I was so proud of her and praised God for how far she’s come.

What would you say to everyone who supports the babies?

From all of us here at Baby Watoto, thank you. We have babies here who wouldn’t have survived but are alive today because of you.

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EDUCATION Our goal is to ensure that each of our children, no matter their ability, leaves Watoto with a skill in their hands. In 2016, we educated 2,891 children in our schools across all three villages. We also had 40 students graduate university, and we celebrate their achievements.

We’re thrilled that six of our high school students received scholarships for university. Four of these students earned the incredible opportunity to study abroad, while the remaining two received full scholarships to Ugandan universities as a result of their outstanding grades.

In addition, we have seen significant development in our vocational training schools. This year, 205 students attended vocational training in areas such as mechanics, beauty, agriculture, catering and hairdressing. We have also been able to secure workplace apprenticeships so that our children are well prepared for a competitive marketplace.

Check out a video of our students going to study abroad on scholarships at vimeo.com/watoto/Scholarships

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MEET JONAL Jonal is a budding photographer with a servant's heart, and kids throughout the Watoto family look up to him as a big brother.

Abandoned by the roadside as a 7-month old baby, he spent some time in a local baby’s home before being brought to Watoto in 1998. Here, he was given a new family, a new home and a good education.

Growing up in Watoto's Bbira village, Jonal became fascinated with photography. He would often see our staff photographers on the village and began asking them questions. He met Baker, one of our photographers, who became his mentor, father figure and friend.

Jonal began volunteering with our staff to gain more experience in photography and graphic design. In September 2016, we were invited to send Watoto staff to a Leadership Forum for Creatives hosted by Google. We chose to send Jonal as one of our most promising photographers. He was the only student in the room.

However, Jonal didn’t want to keep the training he’d received to himself. He created and leads a photography group which meets every week in the Watoto villages.

He says, ‘I’m teaching my brothers and sisters because all of these skills and opportunities were given to me freely.

I really thank God for Watoto because they’re supporting my dream. I couldn’t have imagined that this would be my life, and that I’d have so much hope for the future.’

Your support is creating future leaders, like Jonal, who have both the technical skill and the moral character to enter the workplace and transform the nation.

Watch a video message from Jonal at vimeo.com/watoto/Jonal

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MEDICAL Each of our three Watoto villages includes a medical clinic to provide care to our babies, children and mums, as well as extending healthcare to our neighbours.

In 2016, over 32,000 visits were made to our clinics. We treated a range of diseases, vaccinated over 12,000 individuals, dealt with long-term health conditions and ensured the health and wellbeing of those in our care.

Our staff, mothers and medical professionals are all responsible for raising our children. Last year we held 60 training sessions for Watoto mums on health education and nutrition.

Medical fees incurred by hospital visits or referrals outside of Watoto clinics are costly. As such, our goal is to raise our clinics' standards to provide more specialised treatment in the villages.

We currently provide dental care and have recently acquired equipment for both a physiotherapy unit and a laboratory for disease diagnostics. We are also working towards the development of a surgical unit and further mental health services. These improvements will allow us to expand our care within the Watoto villages, as well as into the surrounding neighbourhoods.

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SUSTAINABILITY Watoto operates three farms: a goat farm, a poultry unit and an agriculture farm. These farms help provide food for our villages, as well as create learning opportunities for our agriculture students and local producers.

In 2016, we produced enough goats’ milk to meet almost all of the needs of Baby Watoto, while our chickens produced over 800,000 eggs for Watoto homes. And for the first time we welcomed Watoto students to the farms for hands-on experience that will have a great impact on their future careers.

Wherever we operate, we seek to facilitate community transformation and empower individuals.

As such, we provide employment and training opportunities for the communities around the farm and beyond. Our friend Immaculate is a perfect example.

Working on a Watoto farm she received training in planting methods for crops and, with the money she earned, she’s been able to purchase cows, pigs, chickens and a sewing machine to supplement her income.

Immaculate is particularly proud to have built a new house and paid school fees for her four children. She’s happy that she can give them the schooling they need to succeed in life. Above all, she’s proud to give them the opportunities she never had. And we’re proud to come alongside her and empower her to be the business leader and mother God has called her to be.

Watch Immaculate's story at vimeo.com/watoto/Farms

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OUR FRIENDS We have a big family that goes beyond the borders of Uganda. It consists of people like you, from all over the world, who are working with us to rebuild the nation.

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SPONSORSHIP With over 38,000 sponsors from 39 countries, our children are truly being raised by a global family.

In 2016, we celebrated as 7,181 new sponsors joined us to support our babies, children and mothers in Uganda.

2016 LETTER WRITING Our children love to write and receive letters from their sponsors

12,966 81,227

LETTERS WERE RECEIVED BY CHILDREN FROM THEIR SPONSORS LETTERS WERE SENT TO THANK & UPDATE SPONSORS

MEET POLLY A little girl who’s full of life, 8-year-old Polly is going to have a big future.

Abandoned as a newborn, Polly was brought to Watoto. Sponsors and partners ensured that we were able to provide her with the best start in life and today she has a family, education and friends from all over the world.

Polly has sponsors from Australia, Canada, Hong Kong and Scandinavia. She likes writing to them because she can tell them about all the things that God has done, and she gets to say thank you.

Thanks to the continued support of her sponsors Polly’s had big opportunities, such as travelling to Australia with the Watoto Children’s Choir, but she also has the everyday opportunities of a normal childhood. She can play games with her sisters, use the swings in the park and know that she is loved.

Thank you for transforming the lives of children like Polly, so that they, in turn, can change their nation.

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VISIT WATOTO We hope you've been encouraged by these stories of what we're achieving together, but the best way for you to see the impact you're having is to come out for a visit and see it for yourself.

From Hong Kong to Norway, this year we’ve had over 1,100 individuals visit us from across the globe.

Teams came to be involved in various projects including: building and repairs, community outreaches, medical projects, children’s camps, sports development, Baby Watoto and even leading a worship camp.

100 international volunteers, who stayed for a month or longer, gave their time, skills and expertise to different departments across Watoto. We were also joined by students from around the world who participated in our international discipleship program, Watoto360°.

Additionally, we had teams and individuals who came as guests to experience Watoto. They were able to see the result of their financial support and were impacted through meeting their sponsored mother or child.

Thank you to everyone who visited Watoto in 2016. We couldn’t do what we do without you.

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FROM THE HEART OF A SPONS O R There's something truly special about seeing the impact of your sponsorship in person. Jennifer, one of our Canadian sponsors, had the opportunity to visit Watoto recently and shared with us about her lifechanging experience.

'I remember being nervous to meet my sponsor child. It wasn’t because after years of sponsoring her and exchanging letters, I would finally get to meet her. It was because after just three months of sponsoring her, before even exchanging a letter, I would be meeting her!

When I decided to sponsor through Watoto, I chose a young lady named Christine and imagined years of letters and pictures being shared.

Little did I know that three months later, I would be on a plane heading to Uganda for work with the opportunity to meet her in person.

When Christine saw me, she hugged me tightly. She couldn’t believe that her sponsor was there in person to see her; she was so grateful for my support. She shared with me about her life, family and her aspirations of one day having a job in her field of Business Statistics.

Christine is one of the loveliest young ladies I have ever met. Her determination and eagerness to study hard and dream big inspires me. Her love for God and unwavering faith despite the hardships she’s faced encourages me. I thank God for Christine and that He has provided me the avenue and resources to help her achieve her dreams.

Christine told me she can’t wait for the day when she has the finances to sponsor an individual and be a blessing in their life. My trip to Uganda is one I will cherish always and will forever be etched in my memory. I hope that one day, you too will have the opportunity to travel to Uganda and see for yourself how God is working through Watoto in Africa to transform lives and bring hope and healing to His children.'

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OUR WORLD We’re committed to reaching individuals throughout the world with a message of hope.

WATOTO CHILDREN’S CHOIR On almost every day of the year, the Watoto Children’s Choir is performing somewhere in the world.

In 2016, our choir performed ‘Oh, What Love’ across the globe. 126 children and over 65 adults travelled to share the love of Jesus with all people.

A huge thank you to all the churches who welcomed us, the families who hosted us and the individuals who made our tours worthwhile.

At the same time, behind the scenes we’ve been creating a new production we’re calling ‘Signs & Wonders’. This tour highlights the creativity of Uganda’s emerging songwriters, musicians and choreographers.

‘Signs & Wonders’ began touring in January 2017, telling the story of a loving God who cares for each of us personally. The children share how they came out of darkness into a transformed life, full of purpose to change their world.

Go behind the scenes with our choirs at vimeo.com/watoto/BTSChoir

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WHERE WE ARE Watoto Global Support Offices, Child Care and Church Locations The vision of Watoto is made possible through the support of international partners who care for the hurting. These partnerships are facilitated through nine representative global support offices: Asia, Australia, Brasil, Canada, Nederland, Scandinavia, Uganda (head office), UK and USA. Each global support office is regulated by a specific Board of Directors, who are the overall policy and regulatory organs of Watoto in each country and ensures good practice at all levels.

WATOTO UGANDA (HEAD OFFICE) PO BOX 26366 KAMPALA, UGANDA

WATOTO GLOBAL SUPPORT OFFICES WATOTO ASIA UNIT J, 3/F, PHASE 1, KWUN TONG INDUSTRIAL CENTRE, 472-484 KWUN TONG ROAD, KOWLOON, HONG KONG WATOTO AUSTRALIA PO BOX 782 SPRINGWOOD QLD 4127 WATOTO BRASIL RUA PROF. JOÃO SOARES BARCELOS 3185 – SALA 2 CEP: 81.670-080 CURITIBA, PR - BRASIL WATOTO CANADA 3310 SOUTH SERVICE ROAD vSUITE 103 BURLINGTON, ON L7N 3M6 CANADA

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WATOTO NEDERLAND SOESTDIJKSEKADE 343 2574 AL DEN HAAG WATOTO SCANDINAVIA POSTBOKS 200 4303 SANDNES WATOTO UK PO BOX 64946 LONDON, E4 0EF WATOTO USA 13617 N. FLORIDA AVE. TAMPA, FL 33613

SOUTH SUDAN

JUBA

GULU

LAMINADERA

UGANDA

BBIRA

KAMPALA

SUUBI

UGANDA & SOUTH SUDAN

WATOTO CHURCH

WATOTO VILLAGE

BABY WATOTO

WATOTO FARM

KEEP A GIRL IN SCHOOL

LIVING HOPE CENTRE

11 LOCATIONS throughout Uganda 1 LOCATION Juba, South Sudan

3 VILLAGES Bbira Suubi Laminadera

2 LOCATIONS Suubi Gulu

3 LOCATIONS Suubi Lubbe Buloba

LOCATIONS throughout Gulu

2 LOCATIONS Downtown Gulu

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A MESSAGE FROM WATOTO CANADA 2016 was another great year for Watoto Canada, but also a year of great change. In early September 2016, our national office relocated to Burlington, Ontario.

We would like to say a big 'Thank you!' to the great people of Victoria, British Columbia which was the home of our office for the past decade. Thank you to the employees who worked so hard to bring Watoto Canada to the place where we are today and the many who volunteered. We appreciate each one of you! We have now settled into our new office and we encourage you to stop by for a visit if you are in the area.

From January to July of 2016, Watoto Children’s Choir 78 travelled across Canada from Ontario to British Columbia. Thank you to those who gave selflessly to change the lives of vulnerable women and children. Today, those we have rescued have their physical needs met, a safe home in which to live, and the opportunity to pursue their education because Canadians cared enough to give and make a difference!

As we look ahead to the future, we are excited to see what God has in store as we continue to raise the profile of Watoto in Canada and proclaim the love of Jesus. Psalm 82:3 says, 'Give justice to the poor and the orphan; uphold the rights of the oppressed and the destitute' (NLT).

Partnering with Canadians to make this a reality is at the heart of what we want to accomplish through Watoto Canada. May God bless you as you continue to support us in this ministry.

For the children,

Lorne Hamlyn Country Director Watoto Canada

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CONNECTING WITH OUR PARTNERS ESW has been a longstanding partner with Watoto Canada and has sponsored over 100 babies…and counting! President of the IT company, Graham Plett, joined ESW at its inception with two other partners, in hopes of creating an organization with mutual trust and respect at its core.

In 2012, ESW was looking for ways to ‘give back’ to their community and the world.

As a result of a personal trip Graham had taken to Uganda in 2009, he realized that although there were needs everywhere in the world, he found that the needs in Uganda were great, but the sense of hope was greater. ‘We chose to give to Watoto to help others see the value and impact of giving back, in the hopes of changing people’s perspective on how combined, we can collectively make a difference to those that need help,’ said Graham. He hopes that they will be able to raise awareness so that many can see firsthand the positive impact of giving back.

In a recent trip that ESW employees and clients took to Uganda, Graham shared that ‘there were so many highlights, it is hard to capture only a few.’ Not only did their team help complete a painting project and assist at Baby Watoto, the high points for them also included interacting within the local community, being treated to a traditional meal in the Watoto village, and witnessing the great hope that is evident amongst the women, children and staff of Watoto.

We are so grateful to ESW for their ongoing support and for helping Watoto Canada continue to transform and empower lives in Uganda.

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WAT O T O C A N A DA F I N A N C I A L S INDEPENDENT AUDITOR'S REPORT To the Directors of Watoto Canada We have audited the accompanying financial statements of W atoto Canada, which comprise the statement of financial position as at December 31, 2016, the statement of designated funds, and the statements of operations, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility.for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Ministry's preparation and fair presentation of the financial statements 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 Ministry's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

Basis for Qualified Opinion Watoto Canada, in common with many charitable organizations, derives its revenue from donations, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, our audit verification for donations revenue was limited to the amounts recorded in the records of the Ministry and we were not able to determine whether any adjustments might be necessary to donations revenue, excess of revenue over expenditures, and net assets.

Opinion Except as noted in the above paragraph, in our opinion, the financial statements present fairly, in all material respects, the financial position of Watoto Canada as at December 31, 2016, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Langley, British Columbia July 7, 2017 42

Chartered Professional Accountants

SUMMARY FROM WATOTO CANADA 2016 AUDITED FINANCIAL STATEMENTS STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS/INCOME STATEMENT Reported in CAD $ Revenues

Expenditures

$ 3,996,657 Sponsorship 397,625 Houses/Schools and Sustainability 212,336 Visit Watoto Funds

Sponsorship $ 3,986,135 Houses/Schools and Sustainability 407,266 Visit Watoto Funds 208,913 Product Costs 85,453 General Expenditures 1,122,510

1,275,389

General contributions Total Contributions

$ 5,882,007

Total Program Services

$ 5,810,277

$

Support Services Management and Administration

$

296,798

Total Support Services

$

296,798

Total Expenses

$ 6,107,075

Net Income

$

Net Assest at Year End

$ 1,033,854

Other revenues Interest Income Product Sales Total other revenues

$

Total Revenues

$ 6,109,433

4.9%

2,419 225,007 227,426

2,358

WATOTO CANADA EXPENSES PROGRAM SERVICES

MANAGEMENT & GENERAL

95.1%

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WATOTO UGANDA (HEAD OFFICE) PHONE: +256 (0) 414 313 561 EMAIL: UGANDA@WATOTO.COM

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