Annual Stories 2017 - Australia

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

09

Watoto Neighbourhood

Message From Our Founders Who We Are Watoto Church

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

15

Watoto Villages Village Life and Families 17 Partner Story, Coleman’s House 17-18 Meet Tabitha & Mama Daphine 19 Henry’s Story 20 Education 21-22 Watoto Sports Academy 23 Watoto Worship Academy 24 Medical 25 Sustainability 26

27 31

Baby Watoto Watoto’s Future Gulu Stories 33

37

Watoto Australia Watoto Children’s Choir 39 Sponsor Story, Garcia Family 40 Visit Watoto Story, Rebecca Blackburn 41 Partner Story, John Ten Hoopen 42 Partner Story, Solar Buddy 43 Global Development Group 44

45 64

Financials Where We Are

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.

3

Watoto

MESSAGE FROM OUR FOUNDERS 2017 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. In 2018 we’re going to continue to reach into our neighbourhoods and come along side 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

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MESSAGE FROM OUR CHAIRPERSON When I tell people I am on the Board of Watoto, I often receive the response, “Oh I have seen the Watoto Children’s Choir.” While our choir is awesome, Watoto is so much more than a children’s choir. As a part of the wider Watoto family, we had the honour in Australia and New Zealand of raising $3,378,572 in the past 12 months to assist Watoto on the ground in Uganda to care for thousands of women and children.

I have had the privilege of traveling to Uganda on a number of occasions. I have visited the Watoto Villages, Neighbourhood Mothers, sustainability projects and chatted to Neighbourhood Children. I have seen firsthand the difference that the help of supporters and friends like you are making to this nation. When I first entered a Watoto village, I felt the sense of hope that is, unfortunately, lacking in some other parts of this amazing continent. We are excited about the future, as Watoto Neighbourhood continues to develop and more women and children’s lives are rescued, restored and rebuilt.

Thank you to our team and Board, and their families and friends, for all of your work and for making Watoto in Australia what it is. On behalf of our Board, we thank you, our partners for your prayers, for coming to visit Uganda, for coming to see the choir, for your financial support and for your encouragement. We have an exciting year ahead for Watoto in Australia with lots of opportunities for people to join the Watoto family. I encourage you to think about the possibility of a trip to Uganda. I can assure you that it may just change your life; it certainly has changed mine!

Natalie Fielding Chairperson - Watoto Australia

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WATOTO AUSTRALIA BOARD Gary Skinner (Founder) Natalie Fielding (Chairperson) Darren Thomas Michael J. Byron Paul Manning

MESSAGE FROM OUR EXECUTIVE DIRECTOR 2017 has certainly been an adventure for Watoto as we navigated a season of change in our team.

We also supported the transition of Living Hope to Watoto Neighbourhoods, a name that captures more comprehensively our focus on empowering women and community development.

In March 2017, I had the opportunity of visiting some of our Neighbourhood Mothers in their homes in Kampala and Gulu. I remember sitting with Rose in her small one room shack in one of the largest slums in Kampala. She shared the space with her 10-year-old son and 18-month-old daughter. Rose shared that she had basic tailoring skills and joined the Watoto Neighbourhood because she was seeking healing from a failed relationship with the father of her youngest. She also needed a hand up in skills and economically to keep her family from the cycles of poverty.

She had a small sewing machine that she shared with a neighbour; she patched the clothes of other slum dwellers as they could not afford to purchase new garments when they had rips and tears. For her work, she earned around 3,000 Ugandan Shillings a day, which equates to approximately AU$1.05.

From that, she put a third toward her son’s school fees, a third toward food for the family and did her best to save the last third. Rose’s story was one that inspired our Australian team to launch Graduate to Greatness in September. Individuals, businesses and foundations rallied to raise $54,288 to empower 450 mothers with the physical tools required to generate an income for their families.

In the pages ahead, you will discover more on who we are as a global family, including the stories of Australians that have committed to seeing others like Rose empowered and engaged. John, Rebecca, Simon and Nicki’s stories are just a few of the thousands of supporters that we have the privilege of partnering with to see brighter days ahead in Uganda.

This year, we celebrate our collective achievements. None of what we accomplished in 2017 was possible without our family of team, volunteers and supporters. We are ever grateful for each individual and family that play a part in shaping the Watoto story, and want you to know that you matter.

Adrienne Green Executive Director - Watoto Australia

Annual Stories 2017

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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 in Uganda, committed to celebrating Christ and caring for community.

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Watoto

WATOTO CHURCH Watoto Church meets every weekend with almost 29,000 people at 12 different locations across Uganda and South Sudan, but this means nothing if our neighbours are hungry and alone. That is why Watoto Church has small gatherings throughout the week in homes, offices, parks, and coffee shops.

This is where church members walk beside one another and truly grow as a family.

Collectively, 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 lives transformed and the beautiful continent of Africa rebuilt.

Annual Stories 2017

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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 9

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”.

Annual Stories 2017

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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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Watoto

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

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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 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 was 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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Watoto

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 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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WATOTO VILLAGES 15

Watoto

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, church, playgrounds, and most of all homes for our children and their mothers.

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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.”

17

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 Mitchell’s were doing, it began to grow. Soon their church family and community participated in a 5K run to raise needed funds 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,”– shares Tabitha.

“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 to 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,” adds Mama Daphine.

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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

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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.

21

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 whatever 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.

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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 11,856 minutes 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

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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.

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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.

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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.

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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 nappies and prepared over 760,000 bottles. That’s a lot of food being processed. And believe us, each one of those nappies 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.

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“We’re going to continue to come along side 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 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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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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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 class. 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.”

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WATOTO AUSTRALIA 37

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Our Watoto Australia office is located in Brisbane, QLD and connects with supporters across the country and in New Zealand. Our team of dedicated staff and volunteers are committed to seeing the church at work through raising awareness of the needs of the vulnerable amongst our local communities.

In Australia, we partner with thousands of individuals, families, small businesses, churches, schools and other NGOs to see our vision outworked in Africa. No matter who you are or what you do, you matter, and have a place in the Watoto family.

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WATOTO CHILDREN’S CHOIR Last year the Watoto Children’s Choir toured Australia, visiting six different states and performing over 160 concerts. More than 40,000 Australian’s got to meet 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 our lives.”

The Choir serves many purposes. It raises awareness about the work of Watoto around the world.

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.

St. Faith’s Anglican Church Narrabeen, a faithful Watoto partner, hosted the choir for the third time in 2017. Minister Ben Molyneux shares, “Each time we are amazed at the way in which these children bring honour and glory to God by the stories of transformation and hope they’ve experienced through Watoto. It provides an amazing outreach opportunity in our wider community.”

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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SPONSOR STORY, GARCIA FAMILY Each of our 5,431 sponsors in Australia and New Zealand matters to us and to God. They represent thousands of stories, of lives in Uganda, Australia and New Zealand connected through love, letters and a heart for the vulnerable. The Garcia Family is one of those thousands. Nikki, Jesse and their daughter Abigail are passionate about Watoto and believe “...that you cannot out give God, and if you sow generosity you will reap generosity.”

Their sponsorship journey started when they first saw the Watoto Children’s Choir in Camden, NSW. “We heard the stories of women living with HIV and how we could help by giving money for their medication. We realised that by doing this we could stop many children from becoming orphans,” says Nikki. “At first we were supporting the Neighbourhood Mothers. When we saw the choir again we felt called to also support a child through Watoto.”

In 2014, the Garcia’s visited Watoto’s projects in Uganda on the inaugural Sponsorship Trip. “In Uganda, we were fortunate to meet our sponsor child Agnes and her mum, Imelda. We felt led to sponsor Imelda as well. Seeing all the amazing work that Watoto was doing in Uganda, we wanted to give more.”

Years later, after hearing Pastor Gary and Marilyn share their vision for Watoto’s future, the Garcia’s made a decision to double their giving, with faith that God would take care of their needs. Their daughter Abbey plays an active role in helping to direct which projects they support.

“I felt like we needed to tell everyone we know about the amazing work that is [happening] in Uganda. I encourage others to give as much time and resources as they can to rebuild the country.”

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VISIT WATOTO STORY, REBECCA BLACKBURN Watoto is a family made up of people from all over the world, and we love it when our family comes and visits us in Uganda. In 2017, we had 118 visitors from Australia and New Zealand come to see Watoto firsthand.

One of our Australian teams spent time in Uganda visiting with our Neighbourhood Mothers. Rebecca Blackburn was a member of this team and shared, “The Neighbourhood Mother Centres are places of hope and safety. Having the opportunity to invest in the lives of the women was so very special. I felt incredibly humbled to be invited into their homes and entrusted with their stories. It was inspiring to see and hear of how these women are becoming leaders in their communities.”

From empowering mothers to working with our sustainability projects, we sincerely thank each individual and family who sacrificed their time and resources to make an impact in Uganda. You matter and you are changing Africa forever. We can’t wait to see more supporters in Uganda next year.

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PARTNER STORY, JOHN TEN HOOPEN John Ten Hoopen has been involved in the solar industry for over 10 years. Today he is combining his skill-set and his passion to make an impact in Uganda.

“I first heard about Watoto on the radio and I wanted to go to a choir concert but I couldn’t make it. However, I looked into what Watoto did and I decided then and there to commit funds to Watoto each month,” says John. In addition to becoming a regular donor to Watoto’s sustainability projects, John also reached out to Watoto, to see how he could use his skillset.

In 2017 John began planning a trip to Uganda and in January 2018, he spent three weeks in Uganda partnering with our Facilities & Maintenance team to design solutions for our power challenges across our three villages. Now that he is back in Australia, John is creating time to help design and implement the project plans with our team of engineers, architects, electricians and others in Uganda. He is also helping establish partnerships with suppliers in his network for optimal pricing.

“Whilst in Uganda, I was able to identify solutions that Watoto is rolling out now, that was far more valuable in dollars and flow on effects than I could have contributed from my finances alone. The trip and the project have given me a new passion for serving God in new and exciting ways. It also gave me the great reassurance that every dollar I send to Uganda and every hour I put in are not being wasted,” says John. “What you do every days, the skills you have can change lives massively. I encourage you to share what you do and what Watoto is doing with others.”

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PARTNER STORY, SOLAR BUDDY We are constantly looking for new ways to meet the changing needs of our Watoto Neighbourhood Mothers and children in Keep a Girl in School (KAGIS). One of those needs is power as many women and children in rural parts of Uganda don’t have access to electricity in their homes. The lack of power has a profound impact on food and water security, health and safety in the dark.

Last year we partnered with Solarbuddy to help meet immediate needs in the Watoto Villages and Neighbourhoods. Solarbuddy are on a mission to end the devastating cycle of energy poverty for marginalised communities around the world. In addition to partnering with corporates to secure funding for solar lamps, Solarbuddy runs a program called Buddy to Buddy that partners schools in Australia with schools in developing countries to help solve their energy needs. In November, teachers from Mittagong State School travelled to Uganda and delivered 300 lights to women and children in Northern Uganda.

“Seeing the ladies this happy for something like this, gave us great joy. I am grateful for this opportunity,” Amanda shares.

Corporate partnerships are integral to Watoto. 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’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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GLOBAL DEVELOPMENT GROUP Since April 2007, Watoto Australia has partnered with Global Development Group (GDG) on various humanitarian aid and development projects in Uganda. GDG is an Australian NGO approved by the Minister for Foreign Affairs to carry out quality humanitarian and development projects with approved partners and to provide aid to relieve poverty and deliver long-term solutions. GDG takes responsibility for approved projects according to OAGDS guidelines, providing a governance role and assisting in the areas of planning, monitoring, reviewing and evaluation to help ensure that approved projects are carried out to Australian requirements.

Watoto’s projects* with GDG include Watoto villages (Project J210) that provide holistic community development, including education and healthcare, and Neighbourhood (Project J416) that is a genderequality-based holistic project for disadvantaged women that includes housing, medical support, employment and education for children - combined with vocational training and income generation.

The support offered to Watoto Australia and the training, advice and monitoring visits by the GDG team in Uganda each year have helped to build and strengthen the operational and managerial capacity of Watoto’s Australian and International staff and the focus on sustainable development activities. Furthermore, though our partnership with GDG, we also partner with organisations that donate to Watoto projects with them. More information on GDG’s projects with Watoto can be found here: www.gdg.org.au/Watoto *Tax deductible receipts for gifts over $2 with a preference for any of these GDG-approved projects will be issued by the Watoto Australia Trust Account (ABN 83 176 101 461). Please note that no evangelistic, welfare or political activities are funded by these aid and development projects with GDG. Any excess funds received will support other approved project activities.

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WATOTO AUSTRALIA’S FINANCIALS Since Watoto Australia began in 2003, our impact has been tremendous. Through generous supporters from all over Australia and New Zealand, we have sent approximately $30,902,245 to Uganda from Watoto Australia to empower her most vulnerable people. The impact is greater than dollars and cents. It’s the countless lives that we have been reaching since we began.

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WATOTO CHILD CARE MINISTRIES Financial Statements for the Year Ended 31 December 2017 The following financial statements have been prepared in accordance with the presentation and disclosure requirements set out in the ACFID Code of conduct. and Controlled Entities For further information on the code, please refer to the ACFID website www.acfid.asn.au.

47

•

Content

•

Directors’ Report

•

Income Statement

•

Balance Sheet

•

Statement of Changes in Equity

•

Statement of Cash Flows

•

Notes to the Financial Statements

•

Directors’ Declaration

•

Independent Auditor’s Report

Watoto

WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Directors’ Report Your directors present this report on Watoto Child Care Ministries and Controlled Entities (the group) for the twelve month period ended 31 December 2017.

Directors The names of each person who has been a director during the financial period and to the date of this report are: • • • • • •

Gary Skinner Natalie Fielding Michael Byron Paul Manning Darren Thomas Rod Carey Resigned 24 November 2017

Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Principal Activities The principal activity of the group during the financial period was: • • • •

To support the ministry and work of Watoto Child Care Ministries (group) To raise funds for the ministry and work of Watoto Child Care Ministries in Uganda (company) To sponsor and manage the activities and care for the Watoto Children’s Choir whilst in Australia (company) As a Deductible Gift Recipient, to be the legal entity for the receipt of donations and their allocations toward Watoto Uganda.

No significant changes in the nature of the group’s activity occurred during the financial period.

Operating Results The net profit of the group for the financial period amounted to $84,669.

Dividends Paid or Recommended The company is limited by guarantee and is therefore precluded from distributing profits by way of dividends.

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WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Directors’ Report After Balance Date Events No matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the group, the results of those operations or the state of affairs of the group in future financial years.

Information on Directors Name: Gary Skinner Qualifications: Founder and CEO, Watoto Child Care Ministries (Uganda) Name: Natalie Fielding Qualifications: Lawyer Name: Michael Byron Qualifications: Accountant Name: Paul Manning Qualifications: Pastor Name: Darren Thomas Qualifications: Finance Broker Members’ Guarantee The entity is incorporated under the Corporations Act 2001 and is a company 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 obligations of the company.

Signed in accordance with a resolution of the Board of Directors.

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Watoto

WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES income statement for the year ended 31 December 2017 revenue

Total $

12 months 2017 Company $

Trust $

18 months 2016 TOTAL $

4,266,667

537,926

3,661,989

6,426,507

2,030

2,030

-

7,600

Commercial Activities Income

223,696

223,696

-

-

Other Income

187,587

745,426

-

348,675

Revenue Donations and Gifts Monetary Investment Income

Adherence Promotion Programs Total Revenue

-

-

4 ,679,980

1,509,078

3,661,989

6,782,782

Funds to International programs

3,207,931

185,042

3,022,889

4,730,260

Program support costs

348,455

317,872

595,697

1,169,122

Public

670,146

670,146

-

891,242

Expenditure International Aid and Development Programs Expenditure International programs

Accountability and Administration

368,780

294,752

-

461,670

Total International Aid and Development Programs Expenditure

4,595,312

1,467,813

3,618,586

7,252,294

Total Expenditure

4 ,595,312

1,467,813

3,618,586

7,252,294

84,668

41,265

43,403

(469,512)

Excess/(Shortfall) of Revenue over Expenditure

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WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Balance sheet as at 31 December 2017

Total $

12 months 2017 Company $

Trust $

18 months 2016 TOTAL $

ASSETS Current Assets Cash and Cash Equivalents

3

762,229

222,399

539,830

610,042

Trade and other receivables

4

30,182

30,182

-

31,266

Inventories

5

7,900

7,900

-

33,244

800,311

260,481

539,830

674,552

42,423

42,423

-

96,164

Total Non-Current Assets

42,423

42,423

-

96,164

TOTAL ASSETS

842,734

302,904

539,830

770,716

40,336

40,336

-

27,197

Total Current Assets Non Current Assets Property, plant and equipment

6

LIABILITIES Current Liabilities Trade and other payables

7

Borrowings

8

6,241

6,241

-

24,716

Other financial liabilities

8

5,427

5,427

-

-

Provisions

9

33,717

33,717

-

27,290

85,721

85,721

-

79,203

-

-

-

19,168

-

-

-

19,168

TOTAL LIABILITIES

85,721

85,721

-

98,371

NET ASSETS

757,013

217,183

539,830

672,345

757,003

217,183

539,820

672,335

Settlement Sum

10

-

10

10

TOTAL EQUITY

757,013

217,183

539,830

672,345

Total Current Liabilities Non-Current Liabilities Borrowings Total Non-Current Liabilities

8

EQUITY Accumulated Funds

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WATOTO CHILD CARE AUSTRALIA AND CONTROLLED ENTITIES Statement of changes in equity for the year ended 31 December 2017

Total $

12 months 2017 Company $

Trust $

18 months 2016 TOTAL $

672,335

175,918

496,417

1,141,847

10

-

10

10

Add: Surplus / (Deficit) for the year

84,668

41,265

43,403

(469,512)

Balance 31 December

757,013

217,183

539,830

672,345

EQUITY Accumulated Funds Balance 1 January Settlement Sum

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WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Statement of cash flows for the year ended 31 December 2017

Total $

12 months 2017 Company $

Trust $

18 months 2016 TOTAL $

5,171,385

1,509,395

3,661,989

7,614,056

Cash payments to suppliers and employees

(5,004,379)

(1,385,793)

(3,618,586)

(8,051,441)

Cash generated from operations

167,006

123,602

43,403

(437,385)

-

-

-

36,165

167,006

123,602

43,403

(401,220)

-

-

-

(77,096)

22,689

22,689

-

2,045

Cash flows from operating activities Cash receipts from trading, fundraising and donations

Interest and other income Net cash from operating activities

11

Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of equipment Property, plant and equipment gifted

-

-

-

10,545

Net cash used in investing activities

22,689

22,689

-

(64,506)

Prepayments of borrowings

(37,508)

(37,507)

-

9,528

Net cash used in financing activities

(37,508)

(37,507)

-

9,528

Net increase/(decrease) in cash and cash equivalents

152,187

108,784

43,403

(456,198)

Cash and cash equivalents at beginning of period

610,042

113,615

496,427

1,066,240

762,229

222,399

539,830

610,042

Cash flows from financing activities

Cash and cash equivalents at end of period

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10

WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Notes to the Financial Statements Note 1: Statement of Significant Accounting Policies The directors have prepared the financial statements on the basis that the company is a nonreporting entity because there are no users dependent on general purpose financial statements.

These financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the Australian Charities and Not-for-profits Commission Act 2012. The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

The financial report covers Watoto Child Care Ministries and Controlled Entities. Watoto Child Care Ministries is a company limited by guarantee. The financial statements, except for the cash flow information, have been prepared on an accrual basis and are based on historical costs unless otherwise stated in the notes. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. The amounts presented in the financial statements have been rounded to the nearest dollar.

Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation. a) Plant and equipment - The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have not been discounted to present values in determining the recoverable amounts.

The cost of fixed assets constructed within the entity includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads. b) Depreciation - The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a straight line basis over their useful lives commencing from the time the asset is held ready for use. Properties held for investment purposes are not subject to a depreciation charge. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable asset are: Class of Asset Plant and equipment Motor vehicles Office Equipment

Depreciation Rate 15-33% 5-30% 10-100%

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WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Notes to the Financial Statements Leases Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but not legal ownership, are transferred to the association are classified as finance leases.

Finance leases are capitalised recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual value.

Leased assets are depreciated on a straight line basis over their estimated useful lives where it is likely that ownership of the asset will be obtained or over the term of the lease. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments under operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

Lease incentives under operating leases are recognised as a liability. Lease payments received reduce the liability.

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

Comparative Figures Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.

Revenue Revenue from donations and bequests is recognised when received.

Interest revenue is recognised on a proportional basis taking in to account the interest rates applicable to the financial assets.

All revenue is stated net of the amount of goods and services tax (GST).

Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.

Receivables and payables in the balance sheet are shown inclusive of GST.

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Watoto

WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Notes to the Financial Statements Cash Flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

Total $

12 months 2017 Company $

18 months 2016 TOTAL $

Trust $

Depreciation expense

18,527

18,527

-

14,899

Auditor Remuneration

11,500

11,500

-

12,500

762,050

222,220

539,830

609,499

179

179

-

543

762,229

222,399

539,830

610,042

Note 2: Surplus/(Deficit) from Ordinary Activities Surplus/(Deficit) from ordinary activities has been determined after: Charging as Expense:

Note 3: Cash Assets Bank accounts: Cash at bank Petty cash Total cash at bank Note 4: Receivables Trade debtors

2,355

2,355

-

12,578

Prepayments

18,522

18,522

-

18,688

ATO Receivable – GST

9,305

9,305

-

9,909

Total Receivables

30,182

30,182

-

41,175

Inventory

7,900

7,900

-

33,244

Total Inventory

7,900

7,900

-

33,244

Note 5: Inventories

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WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Notes to the Financial Statements

Total $

12 months 2017 Company $

Trust $

18 months 2016 TOTAL $

Note 6: Property, Plant and Equipment Property, plant and equipment: - At cost - Less: accumulated depreciation

199,423

199,423

-

234,636

(157,000)

(157,000)

-

(138,472)

42,423

42,423

-

96,164

Note 7: Payables Unsecured: - Trade creditors and accruals

40,336

40,336

-

27,197

40,336

40,336

-

27,197

Credit Card

5,427

5,427

-

-

Bank Loans

6,241

6,241

-

24,716

-

-

-

19,168

11,668

11,668

-

43,884

ATO Payable

3,630

3,630

-

-

Superannuation

2,396

2,396

-

-

Employee Provisions

27,691

27,691

-

27,290

Total Current Provisions

33,717

33,717

-

27,290

Note 8: Financial Liabilities Current

Non-Current Bank Loans Total Current and Non-Current Secured Liabilities Note 9: Provisions Current

Note 10: Cash Flow Reconciliation of Cash For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the year as shown in the statement of cash flows is reconciled to the related items in the balance sheet as follows: Cash at bank Petty Cash 57

Watoto

762,050

222,220

539,830

113,082

179

179

-

533

762,229

222,399

539,830

113,615

WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Notes to the Financial Statements

Total $

12 months 2017 Company $

Trust $

18 months 2016 TOTAL $

Operating surplus/(deficit)

84,668

41,265

43,403

(469,512)

Depreciation

18,527

18,527

-

14,899

Loss on disposal

10,596

10,596

-

-

Borrowing costs

1,792

1,792

-

-

(Increase)/decrease in other debtors

(317)

(317)

-

(6,301)

25,344

25,344

-

54,456

166

166

-

13,061

Note 11: Cash Flow Reconciliation of Net Cash provided by/used in Operating Activities to Net Surplus

(Increase)/decrease in inventory (Increase)/decrease in prepayments Increase/(decrease) in creditors Increase/(decrease) in current liabilities Increase/(decrease) in employee entitlements Increase/(decrease) in accruals Net cash from operating activities

7,823

7,823

-

(10,592)

(10,467)

(10,467)

-

(2,626)

401

401

-

5,395

27,836

27,836

-

-

167,006

123,602

43,403

(401,220)

Note 12: Segment Reporting The association operates predominantly in one business. The entity operates predominantly in Australiaand New Zealand.

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WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Directors’ Declaration The directors of Watoto Child Care Ministries and Controlled Entities (the group) have determined that the group is not a reporting entity and that these special purpose financial statements should be prepared in accordance with the accounting policies described in Note 1 to the financial statements.

The directors of the group declare that, in the directors’ opinion: 1.

The financial statements and notes are in accordance with the Australian Charities and Not-forprofits Commission Act 2012 and:

(a) Comply with Accounting Standards, mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board; and (b) Give a true and fair view of the group’s financial position as at 31 December 2017 and of its performance for the year ended on that date; 2. In the Board’s opinion, there are reasonable grounds to believe that the group will be able to pay its debts as and when they become due and payable.

This statement is made in accordance with a resolution of the Board and is signed for and on behalf of the Board by:

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF: WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES Report on the Audit of the Financial Report We have audited the financial report Watoto Child Care Ministries and Controlled Entities (the group), which comprises the Statement of Financial Position as at 31 December 2017, the Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and Notes to the financial statements, including a Summary of Significant Accounting Policies, and the Directors’ Declaration.

In our opinion, the accompanying financial report of Watoto Child Care Ministries and Controlled Entities has been prepared in accordance with Div 60 of the Australian Charities and Not-for-profits Commission Act 2012, including: (i)

Giving a true and fair view of the registered entity’s financial position as at 31 December 2017 and of its financial performance for the year then ended; and

(ii)

Complying with Australian Accounting Standards to the extent described in Note 1, and Div 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

(iii)

The financial report and associated records have been properly kept in accordance with the Charitable Fundraising Act and its regulations, and

(iv)

Monies received as a result of fundraising appeals conducted during the year ended 31 December 2017 have been properly accounted for and applied in accordance with the NSW Charitable Fundraising Act and its regulations

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the group in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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

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Independence In conducting our audit, we have complied with the independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 and the applicable code of professional conduct in relation to the audit.

Emphasis of Matter – Basis of Accounting We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the company’s financial reporting responsibilities under the Australian Charities and Not-for-profits Commission Act 2012. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Responsibilities of the Directors for the Financial Report The directors of the group are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Australian Charities and Not-for-profits Commission Act 2012 and is appropriate to meet the needs of the members. The directors’ responsibility also includes such internal control as the directors determine is necessary to enable the preparation of a financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is 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 the Australian Auditing Standards 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 this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: – Identify and assess the risks of material misstatement of the financial report, 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 registered entity’s internal control.

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– 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 company’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 report 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 registered entity to cease to continue as a going concern.

– Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents 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.

SCA PARTNERS JOSEPH CHOUEIFATY REGISTERED COMPANY AUDITOR

BAULKHAM HILLS 20 APRIL 2018 309613

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AUDITOR’S INDEPENDENCE DECLARATION UNDER S 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF WATOTO CHILD CARE MINISTRIES AND CONTROLLED ENTITIES I declare that, to the best of my knowledge and belief, during the year ended 31 December 2017 there have been no contraventions of: i.

The auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

ii.

Any applicable code of professional conduct in relation to the audit.

SCA PARTNERS JOSEPH CHOUEIFATY REGISTERED COMPANY AUDITOR

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BAULKHAM HILLS 20 APRIL 2018 309613

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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

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