Annual Report 2017

UGANDA. AFRICA. THE WORLD.

NO MATTER WHERE YOU ARE YOU MATTER Annual Stories 2017

TABLE OF CONTENTS 03 04 05 06

The Impact You’re Making

07

Watoto Neighbourhood

Message From Our Founders Who We Are Watoto Church

Neighbourhood Mothers 9 Kevin’s Story 11 Keep A Girl In School 12

13

Watoto Villages Village Life and Families 15 Partner Story, Coleman’s House 15-16 Meet Tabitha & Mama Daphine 17 Henry’s Story 18 Education 19 Watoto Sports Academy 21 Watoto Worship Academy 22 Medical 23 Sustainability 24

25 29 30 31

Baby Watoto Visit Watoto Watoto Children’s Choir Watoto’s Future Gulu Stories 33

37 38 39

Partner Story, Solarbuddy Where We Are Financials

PROVIDED 629

WOMEN WITH DISCIPLESHIP, BUSINESS SKILLS TRAINING AND AN

OPPORTUNITY FOR EMPLOYMENT

P R OV I D E D A

LOVING

FAMILY,

AHOME, AN

EDUCATION,

FOOD A N D MEDICAL CARE

TO OVER

3,000

CHILDREN ACROSS OUR

THREE VILLAGES

RESCUED

109 BABIES CHEERED AS 73 STUDENTS GRADUATED HIGH SCHOOL,

68 STUDENTS GRADUATED

VOCATIONAL TRAINING AND 42 STUDENTS

THE IMPACT YOU’RE MAKING

GRADUATED UNIVERSITY

Thank you for partnering with us as we continue to care for vulnerable women and children in Africa. Above are just a few highlights of what we accomplished together last year.

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MESSAGE FROM OUR FOUNDERS Last year was incredible. We saw phenomenal growth as we continued to bring hope and healing to those who need it most, and we praise God for what he is doing in our nation.

We’re so thankful to know we have people all over the world praying, supporting and partnering with us. People from over 39 different countries.

Each of you are critical to everything we’re doing here in Africa, and from the bottom of our hearts we thank you. We want you to know, you matter and your partnership is making a lasting difference.

In fact, every single person matters. To the child that’s been abandoned we want to say, “you matter.” To the woman who’s been rejected and feels alone, hurt and broken, “you matter.”

That’s why we do what we do. This year we’re going to continue to reach into our neighbourhoods and come alongside vulnerable women, helping ensure their kids have a chance to go to school, and empowering them to be leaders in their families and in their communities.

We’re also looking to expand our reach in South Sudan by multiplying everything we’ve been doing in Uganda for the past 35 years. We’ve been present in Juba for over 5 years, and things are desperate there, but the people living there matter.

God has opened the door for us to launch our “Keep a Girl in School” program in Juba, South Sudan.

We recently learned that girls there have a higher chance of dying in childbirth than they do of finishing school. But you know what? Every one of those girls matter. And this year, with your help, we’re going to make sure that we keep thousands of those girls in school, so they can have the future they deserve.

Again, we want to thank you. No matter where you are and what you’re going through, you matter.

And your involvement with what God is doing through Watoto matters. We couldn’t do what we do without your love and support.

In Christ,

Gary and Marilyn Skinner

Annual Stories 2017

5

WHO WE ARE Watoto is a family made up 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.

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WATOTO CHURCH At Watoto Church we’ve come to expect the love of Jesus Christ to completely transform everything we do. It’s this love that compels us to embrace and engage those hurting around us.

While we meet collectively every weekend with almost 29,000 people at 12 different locations across Uganda and South Sudan, it means nothing if our neighbour is hungry and alone. This is why we have small gatherings throughout the week in our homes, offices, parks, and coffee shops. This is where we walk beside each other and truly grow as a family.

It’s in our neighbourhoods where we discover and develop close connections. It’s here where we laugh, grow closer to one another, help our communities, and build up our neighbours with joy as we see our lives transformed and this beautiful continent rebuilt.

Annual Stories 2017

7

PROVIDED

629 WOMEN WITH

DISCIPLESHIP, BUSINESS SKILLS

TRAINING AND AN

OPPORTUNITY

FOR EMPLOYMENT

EXTENDED OUR

OVER

REACH TO

2,800

WOMEN RIGHT IN THEIR

NEIGHBOURHOODS

WITH THE LOVE

OF CHRIST

OVER 25,000 SMILES

WERE GIVEN IN

A DAY BY OUR NEIGHBOURHOOD

MOTHERS* *Each smile matters.

WATOTO NEIGHBOURHOOD 8

Watoto

Africa’s greatest resource is her women, empowered.

A part of celebrating Christ and caring for community means coming alongside vulnerable women in our neighbourhoods to engage them so they can be the mothers and leaders God has called them to be.

Many of these ladies have been left to bear the brunt of war, poverty and disease. Millions of our sisters have been abandoned and robbed of all dignity. Uneducated and unemployable, they are left to suffer alone. But, together we’re changing this by providing discipleship, business skills training and job opportunities. We call this “Watoto Neighbourhood”.

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9

SANTA ABER EMPOWERED MOTHER OF FOUR “Watoto took me in when I had nothing. Because of the war, I didn’t know where to go. But they helped me overcome my suffering and empowered me to be a mother and a leader. Now I can support my children.”

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KEVIN ABACO EMPOWERED BUSINESS LEADER “Thank you for your sponsorship. You are empowering women like me to support our children and give them a good education. This makes me feel loved and cared for.”

Annual Stories 2017

11

KEVIN’S STORY Kevin Abaco is the picture of an empowered Neighbourhood Mother. When women like Kevin are engaged with discipleship, trauma rehabilitation, and skills training, they begin to understand their value, giving them the strength to become leaders in their neighbourhoods and the dignity to raise their children with purpose.

At age ten, Kevin was abducted by the Lord’s Resistance Army.

During her time in the bush she witnessed atrocities no one should ever see, especially a child. After escaping the war she discovered she was still held captive by trauma and unforgiveness.

“I was not mentally stable. I was traumatised just like any other returnee and scarred because of the horrific experience,” Kevin shared.

After becoming pregnant with her third child, the child’s father abandoned her. Kevin was completely alone and hopeless.

“It is at this point I learnt about Watoto. I was taken through discipleship and trauma rehabilitation and I learnt how to forgive. I also went through business skills classes where I learnt about finances and was taught how to become a tailor.”

Kevin now works as a tailor in her shop at Gulu’s main market. She earns enough money to support her family and to send all three of her children to school. The weight of anger and not being able to forgive is gone, and replaced with a dignity filled with hope and the realisation of a bright future.

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KEEP A GIRL IN SCHOOL For many girls in Africa, education isn’t just important for a brighter future, it is critical to their survival.

In South Sudan, 90% of females are illiterate and only 36% of girls are enrolled in school. A lack of education leads to vulnerability. Vulnerability translates to unwanted pregnancy, sexual abuse, domestic violence, HIV, early marriage and no choices.

But, together we can change this. Last year, Watoto reached nearly 5,500 girls in 30 schools in northern Uganda by providing sanitary products, igniting their passion for education and inspiring them to become women of purpose and influence.

In 2017 alone, we provided 10,811 boys and girls with hygiene education and Godly sexual education. We taught young boys to protect and respect their female classmates. We reminded the girls that they matter and their bodies are their own. They don’t need to be exploited any longer.

This year, we aim to reach more girls in both northern Uganda and extend the program into Juba, South Sudan. Every girl matters, and every girl has the right to stay in school.

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13

WATOTO VILLAGES 14

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We’re committed to raising Africa’s future leaders. Our goal is 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.

A Watoto Village is a safe place where a child can learn their value in Christ, receive an education, and truly experience the love of a family. Each village has classrooms, a medical clinic, a church, playgrounds, and most of all homes for our children and our mothers.

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15

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

We could never do this alone. And we know healing isn’t just taking place in Uganda. It’s felt throughout our global family, in the lives of people like Roland and Angela Mitchell.

Their middle son, Coleman, connected instantly with Watoto. It all began when he was a junior in high school and the Watoto Children’s Choir visited their church. His family hosted some of the young boys on tour and he knew his destiny would be forever linked with these high energy, future leaders from Uganda.

He looked into Watoto’s internship program “Watoto360°” in Uganda, but tragically, Coleman passed away before he completed high school.

In the wake of their painful loss the Mitchell family was faced with a choice that would not only forever change their future, but the destiny of a family on the other side of the world in Africa. They had to decide if they would live life with anger and loss, or move forward with an eternal perspective and purpose.

Angela Mitchell soon came to realise, “The hardest thing about a child going to heaven is the silence of their name.”

16

Watoto

So the Mitchell family made the choice to embrace Coleman’s dream for the future. They decided to build a house in his name. “It’s more than building a house, it’s establishing legacy for our son,” shared Angela.

As friends and family heard what the Mitchells were doing, it began to grow. Soon their church family and community participated in a 5K run to raise funds needed to build the house. Today, the Mitchell family and their community sponsor everyone living in “Coleman’s House”.

The connection is even deeper than sponsorship. Every morning Angela and Roland spend time praying for the girls living in the house. They exchange letters and photos, and the girls in “Coleman’s House” have become daughters to them.

“We can see the growth and redemption in each photo of them.” Angela continues, “God has chosen them and us to be involved with each other’s lives. These girls matter. They need us, and we need them so desperately as healing to our hearts.”

Upon learning the home was completed, Angela was surprised to learn only girls would live there.

“Keep in mind Coleman connected with the boys, I just assumed... but then I remembered when I was pregnant with his brother how Coleman wanted a sister. Well, now he has eight.”

We are grateful for this beautiful family God has uniquely created across the globe.

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MEET TABITHA & MAMA DAPHINE We’d like to introduce you to Tabitha and Mama Daphine from Watoto’s Bbira village, just one of the many children and mothers that are part of Watoto’s family.

“Hi, I’m Tabitha. I live at Watoto and I’m in primary one. I love my sponsors. One sponsor named Emily sent me stickers. I felt so happy and wrote her back thanking her. I stick the stickers in my Bible after reading a verse I enjoy.

I love reading the bible and I know when I pray God hears my prayers. I love God because He provides food and the chance to go to school. At school I love finishing the work as instructed by the teacher.

My best subjects are nature studies, drawing and writing.”– Tabitha, Watoto Child “And I’m Mama Daphine. I love the children in my house and I feel it’s a blessing for me to be taking care of them. I joined Watoto a few years ago with my daughter, Tabitha. I’m now a mother to both her, and seven boys.

At Watoto, I feel at home. I have everything I need here. I feel so much joy because I don’t lack anything. I am grateful to my sponsors because they provide for our care, giving us food, clothes and most importantly, love.”– Mama Daphine, Watoto Mother

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Watoto

HENRY’S STORY Born with cerebral palsy, Henry knows what it means to face challenges. His Watoto mother, Betty, ingrained in him a determination and a belief that he can do anything he sets his mind on. If God’s called him to do something, he’s going to do it.

Today he is not only an overcomer, but he is a leader.

Loving computers and IT, Henry saw that many children facing similar physical challenges were being left behind. Against all odds Henry graduated university and began teaching computer skills at the GEM Foundation, a home Watoto partners with for children with special needs.

Not only is Henry giving children hope, he’s reminding them that their dreams matter and so do they.

Annual Stories 2017

19

EDUCATION Education is key to raising future leaders. From pre-school through university, our goal is to see each child leave Watoto with a skill in hand.

In 2017, we provided education to 2,843 students at our Watoto schools. Plus, 162 Watoto students are continuing their education at university.

20

Watoto

Our children also continued to receive hands on experience and vocational training that is preparing them for the real world after graduation. In fact, last year we had 68 students graduate from our Hope Technical Institute and are now beginning their careers.

Thank you for joining with us to ensure success in whatever sphere of life our children are destined to lead in. From science, literature, sports, music, education, and more, we believe God created us in His image and we love seeing each of our children grow into their full purpose.

Annual Stories 2017

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SPORTS ACADEMY Through Watoto’s Sports Academy and Worship Academy, our children are learning to find creative solutions together through sports, art and music. Be it passing the ball so a teammate can score, or writing a piece of music, they’re discovering no matter their role in life, everyone matters.

We come alongside our children to nurture their natural talents so they can grow as leaders. Coach Calvin, head of our Sports Academy, said, “Not only do we work with students on talent development, but also on character development. Part of this is teaching the importance of working together and accomplishing a shared goal.”

We are proud of Michael Sematimba, who was named the Most Valuable Player in the Kwese TV (ESPN Africa) tournament. His coach, Eric Matovu, fosters his passion for basketball and shares the skills he learned from his time playing with Uganda’s National Team. Coach Eric also reinforces that working hard and helping your teammates makes all the difference in life.

We are grateful for our coaches and partners who help children like Michael, discover their full potential.

22

Watoto

WORSHIP ACADEMY Our Worship Academy was birthed out of the need to explore the artistic and creative potential of our children as they came back from touring internationally with the Watoto Children’s Choir. It was launched a few years ago with the purpose of giving our children a greater understanding of how their God given talents matter and how they can be used to edify and build up the local church through creative arts.

Ben Kalinimi is a Watoto graduate from Suubi village. His time with the Watoto Children’s Choir and managing a dance troupe began preparing him to lead our Worship Academy. He’s now the mentor God has called him to be to his younger Watoto brothers and sisters.

Through international partnerships we have been able to build a creative arts studio for our children, along with acquiring equipment and instruments. We also have begun to develop a formalised online music education course instructed by top professors in the field.

Last year, we hosted our fourth annual Worship Camp that drew creatives, musicians, dancers and media producers from around the world to empower, equip and encourage the gifting that God has placed in our students.

Our guitar students spent nearly 200 hours tuning their guitars in 2017, and our dancers did a total of over 7,200 flips. That’s a lot of hard work and dedication. Now you know why they are so good.

All of this is only possible with the help of our passionate, generous partners.

Annual Stories 2017

23

MEDICAL Each of our three Watoto villages includes a medical clinic to provide care to our babies, children and mothers. Since we want to make a lasting impact in our neighbourhoods, we also extend healthcare to our neighbours.

In 2017, over 31,800 visits were made to our clinics. We reduced disease prevalence in our Watoto villages by 17.8%. We treated a range of diseases, vaccinated over 1,500 individuals, dealt with longterm health conditions, and ensured the health and well-being of those in our care.

In 2018, we will continue to raise our clinics' standards and provide more specialised treatment in the villages so our children won’t have to make costly visits to outside hospitals. We will also continue expanding our reach in our neighbourhoods. We are starting with a baseline survey so we can assess the actual health challenges, and will then implement the appropriate measures. We intend to provide screenings, health education, vaccinations and treatment, along with rehabilitative services.

24

Watoto

SUSTAINABILITY Last year, our sustainability projects provided fresh vegetables for our villages, goats milk for Baby Watoto and learning opportunities for our students along with local farmers.

Wherever we operate, our goal is to see full transformation in our neighbourhoods, and we believe together we have a bright sustainable future.

Annual Stories 2017

25

BWATOTO A BY Baby Watoto rescues abandoned babies aged 0-2 years old and provides them with a family where they are loved and nurtured by a nanny who quickly becomes a mother to them. Each nanny cares for a family of four babies. These are her babies from the moment they arrive, until they’re ready to move into a Watoto village.

26

Watoto

109 BABIES RESCUED

IN 2017

WE CARED FOR

273

BABIES IN

2017

TO DATE WE’VE

RESCUED

1,320 BABIES

When a baby is ready to transition, the new mother in the village and the nanny work closely together for an extended period to ensure that the child feels comfortable and secure moving into their new family.

Last year, our nannies and staff at Baby Watoto changed 597,870 diapers and prepared over 760,000 bottles. That’s a lot of food being processed. And believe us, each one of those diapers mattered.

Annual Stories 2017

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BABY CHLOE FRIEND TO EVERY BABY Baby Chloe was rescued when she was about three days old. Today she is a healthy and very happy little one, which is evident by her smile. Her nanny is afraid “she’s growing too fast and won’t stay a baby forever.” Every parent’s dilemma.

Baby Chloe has developed quite the reputation around Baby Watoto as a friend to all. Most of the other babies say they enjoy spending time with Chloe and talking baby talk with her. She seems to be someone they can all relate to.

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BABY DEZILANTA FUTURE UGANDAN LEADER Baby Dezilanta arrived at Baby Watoto severely malnourished with health issues. We were able to provide proper nutrition, medical care, and the love she desperately needed. Her response to the medical treatment couldn’t have been better. She is now a happy, chubby two year old with a bright future.

According to her nanny, Alice, Baby Dez only has a couple of dislikes: sitting on the potty and seeing her nanny unhappy. To be fair, we’re not sure if anyone really likes those things.

Annual Stories 2017

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VISIT WATOTO Watoto is a family of people all over the world, and we love it when our family comes and visits us in Uganda.

In 2017, we had 1,550 people from 16 different countries visit us in Uganda and 105 volunteers stay with us for a month or longer.

From caring for our babies to working with our sustainability projects, to each person who made the trip and offered their skills and resources - thank you.

We absolutely could not do what we do without your love and support. You are changing Africa forever. We can’t wait to see you here next year.

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WATOTO CHILDREN’S CHOIR Last year, 7 different choirs toured 13 different countries. That means thousands of people got to meet some of our future leaders. People saw their smiles and were embraced by their hugs. Our children had the distinct privilege of telling people, “It’s possible to have joy, to laugh and to have hope, no matter what you’re going through. Look at what He’s done in my life.”

The choir serves many purposes. It raises awareness about the work of Watoto globally. It’s also leadership training for our children, providing a strong sense of responsibility while experiencing different cultures.

More importantly, it’s a way we share our faith with people around the world. We see thousands of people connect with the love of Jesus and what He’s done in our children’s lives. Other than coming to Uganda yourself, what better way to learn about all the good work God is doing through Watoto than by meeting the children and hearing their stories.

So each smile that’s shared on the road is the result of someone like you caring. Thank you for supporting Watoto and making it possible for us to share our incredible story with the world.

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“We’re going to continue to come alongside vulnerable women, helping ensure their kids have a chance to go to school, and empowering them to be leaders in their families and in their communities.”

- Gary Skinner,

Watoto Founder

WATOTO ’ S FUTURE KAMPALA. GULU. JUBA. We aim at the pain because everyone matters.

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Watoto

Watoto began in Kampala 35 years ago. In 2006, we went into Gulu in response to the war. Five years ago, we opened our church in Juba. The future is us continuing to go into the hardest of places, sharing the love of Jesus, building schools, providing jobs and medical care, and raising future leaders. Juba now is similar to what Gulu was 20 years ago. It’s in a difficult place, but we know God has a great plan for that city, and nation.

Meet some of our leaders from Gulu. This is our future, caring for our communities, raising more leaders, and rebuilding this beautiful Africa.

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GERALD MWAKA PRESIDENT OF THE MUSIC, DANCE & DRAMA CLUB AND ASPIRING STORYTELLER “Early in life I went through a lot of suffering and at times didn’t feel I had a reason to live; yet somehow God saved me and kept me alive because He knows that I still matter to someone. I have a purpose to fulfill and lives to touch.

I want to thank everyone who sponsors a child. I don’t understand how someone can love a person that they have never met, to the point of providing for them every month so that they can have a better life. It takes tremendous love to care for someone like this. Thank you.”

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LINDAH AKULLU CHILDREN’S CHURCH FACILITATOR, BASKETBALL PLAYER AND BORN LEADER Lindah was orphaned after her father was killed by rebels in the war and her mother died of AIDS. After being welcomed into Watoto, she now has a home, an education and a family that loves her.

Although she is only in primary seven, she is already a leader in her school and among her friends.

Lindah wants to thank everyone that sponsors. “Sponsors help provide for our needs and offer support and encouragement. My sponsors were chosen by God to help me become someone with a great future.”

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35

GRACE ALOYO CLASS MONITOR AND ASPIRING OSCAR WINNER Grace has a personality that fills the room. She is smart and confident, and proudly shares that she recently won an award for her acting in the school’s Music, Dance & Drama program. However, this wasn’t always the case for Grace.

Before coming to Watoto, Grace thought she didn’t matter. But now, because of her walk with God and the love she’s experienced from her Watoto family and sponsors, she understands her worth and is excited for her future.

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Watoto

RAPHAEL OKORI HEAD PREFECT AND ASPIRING DOCTOR Raphael lost both his parents at a young age. Despite his difficult start in life, you’d never know it because of his great attitude and smile. Raphael always strives to do his best, and in fact he is the Head Prefect in his school. He likes to study hard and hopes to one day become a doctor so he can help those who are suffering in Uganda.

“I am grateful for my sponsors. They encourage me to study and achieve my dreams.”

Annual Stories 2017

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PARTNER STORY, SOLARBUDDY We are constantly looking for new ways to meet the changing needs of our Neighbourhood Mothers.

Many women in rural parts of Uganda don’t have access to electricity in their homes. This means, when the sun goes down homework, and anything requiring lights, stop.

In fact, the lack of power has a profound impact on food and water security. It also eliminates a lot of precious time a child can study, while exposing them to the obvious physical dangers.

Last year, we began to partner with Solarbuddy from Australia. They’re on a mission to end the devastating cycle of energy poverty for marginalised communities around the world.

They presented a great solution for our mothers and their families by providing them with lights that run off solar power. Now our families can connect with each other safely into the night, allowing more time for homework, reading the bible together, and simply visiting.

Solarbuddy’s CEO, Simon Doable, shared, “What we love about working with Watoto is that they have a team in Australia. This is great for validation and due diligence. The history of Watoto and their footprint here meant a lot for us when deciding to partner with them.”

We all have a unique part to play in transforming Africa. We’re so grateful for everyone who finds ways to help, be it individuals, other charities, churches or even companies. Every partner matters.

We have offices all around the world and we’d love to find ways to partner with you and find practical solutions to meet the needs of Africa’s most vulnerable women and children.

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WHERE WE ARE Watoto began in 1983 in Kampala, Uganda. As the ministry grew, so did the need to facilitate support offices where our partners and sponsors live.

Today, we have nine support offices throughout the world. Each office is regulated by a local Board of Directors, ensuring good practice at all levels. We’d love for you to connect further with these offices and see new ways we can help reach the lost and hurting in Africa together.

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

WATOTO BRASIL RUA PROF. JOÃO SOARES BARCELOS 3185 – SALA 2 CEP: 81.670-080 CURITIBA, PR - BRASIL

WATOTO ASIA UNIT J, 3/F, PHASE 1, KWUN TONG INDUSTRIAL CENTRE, 472-484 KWUN TONG ROAD, KOWLOON, HONG KONG

WATOTO CANADA 3310 SOUTH SERVICE ROAD SUITE 103 BURLINGTON, ON L7N 3M6 CANADA

WATOTO AUSTRALIA PO BOX 782 SPRINGWOOD QLD 4127

WATOTO NEDERLAND PLATINAWEG 25 2544 EZ 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

UGANDA

Juba Juba Juba

SOUTH SUDAN SOUTH SUDAN SOUTH SUDAN

Gulu Gulu Gulu

UGANDA UGANDA WATOTO CHURCH 11 LOCATIONS throughout Uganda 1 LOCATION in Juba, South Sudan Kampala Kampala Kampala

WATOTO VILLAGE 3 VILLAGES Bbira, Suubi, Laminadera BABY WATOTO 2 LOCATIONS Suubi, Gulu MEDICAL 3 LOCATIONS Suubi, Bbira, Gulu KEEP A GIRL IN SCHOOL LOCATIONS throughout Gulu NEIGHBOURHOOD CENTRE 2 LOCATIONS Kampala, Gulu

Annual Stories 2017

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FINANCIALS REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF WATOTO CHILD CARE MINISTRIES Opinion We have audited the accompanying consolidated financial statements of Watoto Child Care Ministries and its subsidiary, which comprise the consolidated statement of financial position as at 31 December 2017, and the consolidated statement of comprehensive income, changes in equity and cash flows for the year then ended, together with the statement of financial position of the Organisation standing alone as at 31 December 2017 and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information as set out on pages 8 to 42.

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group and the Organisation as at 31 December 2017, and of the surplus and cash flows of the Group and the Organisation for the year then ended in accordance with International Financial Reporting Standards.

Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the organisation in accordance with the International Federation of Accountants’ Code of Ethics for Professional Accountants (IFAC code) and other independence requirements applicable to performing audits of Watoto Child Care Ministries. We have fulfilled our other ethical responsibilities in accordance with the IFAC Code, and in accordance with other ethical requirements applicable to performing the audit of Watoto Child Care Ministries.

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

Other Information The directors are responsible for the other information. The other information comprises the Executive Directors’ Report and the appendices. The other information does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Statements The directors are responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Organisation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the organisation or to cease operations, or have no realistic alternative but to do so.

40

Watoto

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 organisation’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the organisation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.

• Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the organisation to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The engagement partner on the audit resulting in this independent auditor’s report is CPA Michael Kimoni – P0248 Ernst & Young CPA Michael Kimoni Certified Public Accountants Partner Kampala

12 June 2018

Annual Stories 2017

41

FINANCIALS Consolidated Statement of Comprehensive Income for the year ended 31 December 2017

Notes

2017 Shs'000

2016 Shs'000

6

58,314,965

55,715,179

Operating expenses

10

(49,343,382)

(43,809,963)

Administrative expenses

11 (b)

(6,733,059) (55,483,541)

(7,993,729) (51,803,692)

2,238,524

3,911,487

694,022 2,932,546

1,401,830 5,313,317

_________-

_________-

2,932,546

5,313,317

_________2,932,546

_________5,313,317

2,930,977 1,569 2,932,546

5,334,242 (20,925) 5,313,317

Income Expenditure:

Operating surplus Net finance income Surplus before income tax

7

Income tax expense Surplus for the year

8

Other comprehensive income net of tax Total comprehensive income for the year Attributable to: Owners of the parent Non-controlling interest

42

Watoto

15

FINANCIALS Consolidated Statement of Financial Position as at 31 December 2017

Assets

Notes

2017 Shs'000

2016 Shs'000

12 13 14

43,511,378 445,556 133,950 44,090,884

43,449,299 461,555 232,223 44,143,077

17 25 18 19 20 22

240,372 147,713 2,476,791 2,494,091 15,061,721 5,645,444

477,789 147,713 1,302,405 3,554,512 10,379,107 7,820,185

26,066,132

23,681,711

70,157,016

67,824,788

65,512,434 (30,100) 65,482,334

62,581,457 (31.669) 62,549,788

1,197,653 3,477,028 4,674,682

818,728 4,456,272 5,275,000

70,157,016

67,824,788

Non-current assets Property and equipment Operating lease prepayments Intangible assets Current assets Inventory Current income tax recoverable Amounts due from related parties Receivables and prepayments Held to maturity investments Bank and cash balances

Total assets Equity and liabilities Capital and reserves Accumulated surplus Non-controlling interest

16

Current liabilities Amounts due to related parties Payables and accrued expenses

Total equity and liabilities

18 21

The financial statements on pages 8 to 42 of the full report of the audited annual accounts were approved by the Board of Directors on 27 April 2018 and signed on its behalf by:

Edward Mwesigye, Director

Kenneth Kanzairwe, Director

Annual Stories 2017

43

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