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


TABLE OF CONTENTS A Message From Our Founders

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Who We Are

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Q&A With Our Executive Director

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Our Neighbourhood Church

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Living Hope

12

Keep A Girl In School

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Our Villages

The Village Model

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Baby Watoto

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Education

24

Medical

26

Sustainability

27

Our Friends Sponsorship

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Visit Watoto

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From The Heart Of A Sponsor

33

Our World

Watoto Children’s Choir

36

Where We Are

38

Financials

Head Office Financials From Audit

40


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


A MESSAGE FROM OUR FOUNDERS This year has been full of exciting achievements. By the power of Jesus’ love, there has been incredible transformation in individuals, families and communities throughout our nation. In 2016, we saw 314 children and babies rescued and placed in new families. We reached 562 women, and through them, improved the lives of their children. The Watoto Children’s Choir travelled across the world, sharing a message of hope and 40 students graduated university, ready to become leaders in their nation. As we reflect on these successes, we are reminded once again that we could never have done this alone. It has only been achieved with the meaningful partnership of friends from all over the world. That’s why we’re excited to be able to present you with this year’s highlights and stories from across Watoto. From the villages, to Baby Watoto, to the mothers we’re reaching, right in their neighbourhoods; these stories are just some of the thousands of lives that have been transformed, all for the glory of God. As you read, we pray that you will be inspired and encouraged as you see for yourselves the transformation taking place in Uganda. Together, we are rebuilding the nation.

Gary and Marilyn Skinner Founders, Watoto

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WHO WE ARE Watoto is a family of people from all over the world who are working together to ensure that the forgotten have a place to belong. In a time of civil war, we planted a local church in Kampala, Uganda to speak hope and life to the nation. Since then, we’ve placed thousands of orphans in families, empowered vulnerable women to reach their communities, rescued babies and former child soldiers, and sent children’s choirs across six continents. As we work alongside the most vulnerable in our society, our aim is to rescue individuals and raise each one as a leader in his or her sphere of life so that, in turn, they will rebuild the nation. In over 30 years, the challenges facing the nation have changed, but our vision remains the same. And in all of this, Watoto remains a local church, committed to celebrating Christ and caring for community.


Q & A WITH OUR EXECUTIVE DIRECTOR Arora Majugo is quite a character. Football fan, father-ofthree and a proud Ugandan, he’s responsible for ensuring that Watoto is fulfilling its vision to transform the nation. Tell us Arora, why did you want to work with Watoto? I originally joined Watoto because I wanted to work with children. When I was growing up, I was the youngest child in a large family and I was often pushed aside. As a result, I developed a strong sense that every child has something to offer and I wanted to work where I could encourage children. What’s the biggest challenge you face? The biggest challenge, especially as Watoto grows in size, is that we must never lose sight of the individual. Our focus isn’t just on a few children who are perhaps academic ‘high-fliers’, but on each child, no matter their ability. We want to ensure that every child leaves Watoto as a changed person with a practical skill in their hands, ready to be a leader in their nation. What does family mean to you? To me, family means belonging. But family also has a location and that is the home. I lived and worked on a Watoto village for four years, and it taught me the true value of home. I saw how important it was that each Watoto child had his own house, his own mum, his own bed. Because of this, every child knows that they always have a safe place where they belong. What one word would you use to describe 2016? My word for the year is 'success'. There was a time when a large number of children were orphaned, often through war or HIV/AIDS, but that is changing. I believe that we have contributed to this change. Now, we have hope and as we expand our work with vulnerable women, who are the nation’s mothers, it feels like we have won a victory. Finally, what would you say to our partners, both in Uganda and overseas? I would say thank you for your support. But I would also say, come with us. A new need is unfolding, so join us in this next phase of our work. We won one victory, help us to fight for the next.

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

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


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CHURCH In 1984, Uganda was a broken place. In the midst of a civil war, Watoto Church was planted to bring healing to the community and to rebuild the nation. More than 30 years later, we are still a church dedicated to transforming our neighbourhoods  through loving vulnerable women, keeping girls in school and caring holistically for thousands of widows and orphans. Today, we see over 27,000 people meet every weekend for church across the city of Kampala, in Gulu, northern Uganda and in Juba, South Sudan. Together, we’re celebrating Christ and caring for community as we continue our commitment to bring transformation in the hardest of places.

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

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LIVING HOPE Africa’s greatest resource is her women. And the harsh reality is that many of these women have been left to bear the brunt of war, poverty and disease. But we know that when a woman is enabled to reach her full potential she has the power to raise her family and become a leader in her community. We’re empowering Uganda’s most vulnerable women, and we’re doing it through women like Allen. Allen is a Watoto community worker, who identifies and supports women in need. But Allen’s story is also typical of the women she reaches in her community. In 1998, Allen’s husband died, leaving her a widow, HIV positive, with three young children. Her husband’s family took everything from her, including her home. Over the many difficult years that followed, Allen’s greatest priority was always education for her children. She worked hard to provide school fees, but for herself she had little hope. Allen was brought into Watoto later in life, and she received skills training, literacy classes and discipleship that helped her believe in her future. Today, all three of her children have attended university. Allen feels that she is truly living again and is passionate about reaching young mothers. ‘I cry when I think of the abandoned mother, living in a one room house with a leaking roof. I think of her suffering, and her children’s suffering, and I remember what it was like. But I find these women and encourage them, because I am proof that they can hope again.’ In 2016, we extended our work to reach more women, right in their neighbourhoods. We trained and discipled 562 women and, for the first time, we welcomed 112 of their children into our Watoto schools.

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KEEP A GIRL IN SCHOOL When a girl stays in school, everybody wins. Since 2012, we have been working alongside local schools to reduce the primary school dropout rate among adolescent girls. On average, girls in rural Uganda miss up to eight days of school per term due to menstruation. To help keep girls in school we distribute sanitary products and new undergarments, as well as provide hygiene education and discipleship. With your support, in 2016 together we were able to acheive the following:

2,228 9,429

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

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MEET RITAH ‘My name is Ritah. I was lost, but now I’m found. I can support my family and provide education for my children. I am able to take care of myself.’ In 2012, Ritah discovered that she was HIV positive. She was struggling financially and was unable to afford school fees for her eldest child. Pregnant with her second child, she had also recently been abandoned by the child’s father. Ashamed of her status, Ritah felt isolated. She was terrified that she would die and leave her children without support. Following the birth of her daughter, Watoto reached out to Ritah. It was a life-changing moment for her. She met other HIV positive women who shared their condition openly, and discovered love and hope in the Watoto family. Ritah received discipleship, skills training and medical care. For the first time, she was equipped to provide for herself. Today, she would describe herself as a woman of hope. Through what she has learnt, she is confident that she can be a better mother to her two children, and that she can provide for them. In 2016, Ritah’s son, Arthur, was offered an education at a Watoto school. This opportunity is providing Arthur with a quality of education far beyond anything Ritah could have expected, and she is overjoyed. She is now able to afford school fees for her daughter and, as she continues her training, she is working towards the day when she can fully meet the needs of both her children. Women like Ritah are raising Africa’s next generation. When a woman is equipped she can reach her full potential and her whole family is transformed.

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OUR VILLAGES Our villages provide homes and families for over 3,000 orphaned and vulnerable children. We currently operate three villages in Uganda: Bbira and Suubi in Kampala, and Laminadera in Gulu, northern Uganda.


THE VILLAGE MODEL The Watoto village model is designed not only to meet the physical needs of a child, but to provide everything they need to grow up healthy and whole, with purpose and meaning. We believe this is possible when each child is raised within a family. In each house you’ll find a woman who has come to Watoto to be a mother to eight vulnerable children. Together they are a family, and she is raising them with love and dignity. Each village contains a medical clinic, education from nursery to high school, a community centre for church and social events, and a water project. Most importantly, it’s a place that a family can call home. We'd like to introduce you to Mama Justine's family, just one of the many families that make up Watoto. Like all of our mothers, Mama Justine is a loving mother who cares for eight children. Elisha, the eldest child, wasn't available for photos as he is currently away studying at university.

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

ELLEN AGE 6

Ellen was rescued as a baby by Baby Watoto. Her favourite colour is yellow and she loves singing. Her brothers say she’s stubborn, but she would strongly disagree.

S OW E D I

PRISCILLA

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

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

TIMOTHY

B E N JA M I N

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

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

BRADLEY

A G AT H A

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

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

AGE 10

AGE 14

AGE 16

AGE 13

AGE 15

AGE 17

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BABY WATOTO Baby Watoto cares for abandoned babies aged 0-2 years old. Found in pit latrines, left at bus stops and churches, and even found by the side of the road, these babies have been abandoned in dire situations. We thank God that together, we can change their stories. At Baby Watoto we welcome them into their new family. They are loved and nurtured by a nanny who quickly becomes a mother to them. Each of our nannies cares for a family of four babies. These are her babies from the moment they arrive, until they are ready to move into a Watoto village. We believe that every baby needs the love of a mother-figure, and these family units help to facilitate the attachment which is necessary for their healthy development. When a baby is ready to transition to a village, the new mother and the nanny work closely together for an extended period to ensure that the child feels comfortable and secure moving into their new home.

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# OF BABIES RESCUED IN 2016

1,212

# OF BABIES RESCUED TO DATE

MEET NANNY CARO Tell us a little bit about yourself… My name is Caroline, ‘Caro’ for short, and I’ve been a Watoto nanny for five years. And tell us about your babies… My little family of four includes Baby Jeremy, Baby Benjamin, Baby Isaac and little Agnes. They’re very cute, they get lots of cuddles and they love smiling and playing with each other. What’s your favourite memory from your time as a nanny? My favourite memory involves little Agnes. She has an amputated leg and we didn’t expect that she would walk for a little while. So I’ll never forget the day I saw her walk for the first time. I was so proud of her and praised God for how far she’s come. What would you say to everyone who supports the babies? From all of us here at Baby Watoto, thank you. We have babies here who wouldn’t have survived but are alive today because of you.

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EDUCATION Our goal is to ensure that each of our children, no matter their ability, leaves Watoto with a skill in their hands. In 2016, we educated 2,891 children in our schools across all three villages. We also had 40 students graduate university, and we celebrate their achievements. We’re thrilled that six of our high school students received scholarships for university. Four of these students earned the incredible opportunity to study abroad, while the remaining two received full scholarships to Ugandan universities as a result of their outstanding grades. In addition, we have seen significant development in our vocational training schools. This year, 205 students attended vocational training in areas such as mechanics, beauty, agriculture, catering and hairdressing. We have also been able to secure workplace apprenticeships so that our children are well prepared for a competitive marketplace.

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

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MEET JONAL Jonal is a budding photographer with a servant's heart, and kids throughout the Watoto family look up to him as a big brother. Abandoned by the roadside as a 7-month old baby, he spent some time in a local baby’s home before being brought to Watoto in 1998. Here, he was given a new family, a new home and a good education. Growing up in Watoto's Bbira  village, Jonal became fascinated with photography. He would often see our staff photographers on the village and began asking them questions. He met Baker, one of our photographers, who became his mentor, father figure and friend. Jonal  began volunteering with our  staff  to gain more experience in photography and graphic design. In September 2016, we were invited to send Watoto staff to a Leadership Forum for Creatives hosted by Google. We chose to send Jonal as one of our most promising photographers. He was the only student in the room. However, Jonal didn’t want to keep the training he’d received to himself. He created and leads a photography group which meets every week in the Watoto villages. He says, ‘I’m teaching my brothers and sisters because all of these skills and opportunities were given to me freely. I really thank God for Watoto because they’re supporting my dream. I couldn’t have imagined that this would be my life, and that I’d have so much hope for the future.’ Your support is creating future leaders, like Jonal, who have both the technical skill and the moral character to enter the workplace and transform the nation.

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

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MEDICAL Each of our three Watoto villages includes a medical clinic to provide care to our babies, children and mums, as well as extending healthcare to our neighbours. In 2016, over 32,000 visits were made to our clinics. We treated a range of diseases, vaccinated over 12,000 individuals, dealt with long-term health conditions and ensured the health and wellbeing of those in our care. Our staff, mothers and medical professionals are all responsible for raising our children. Last year we held 60 training sessions for Watoto mums on health education and nutrition. Medical fees incurred by hospital visits or referrals outside of Watoto clinics are costly. As such, our goal is to raise our clinics' standards to provide more specialised treatment in the villages. We currently provide dental care and have recently acquired equipment for both a physiotherapy unit and a laboratory for disease diagnostics. We are also working towards the development of a surgical unit and further mental health services. These improvements will allow us to expand our care within the Watoto villages, as well as into the surrounding neighbourhoods.

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SUSTAINABILITY Watoto operates three farms: a goat farm, a poultry unit and an agriculture farm. These farms help provide food for our villages, as well as create learning opportunities for our agriculture students and local producers. In 2016, we produced enough goats’ milk to meet almost all of the needs of Baby Watoto, while our chickens produced over 800,000 eggs for Watoto homes. And for the first time we welcomed Watoto students to the farms for hands-on experience that will have a great impact on their future careers. Wherever we operate, we seek to facilitate community transformation and empower individuals. As such, we provide employment and training opportunities for the communities around the farm and beyond. Our friend Immaculate is a perfect example. Working on a Watoto farm she received training in planting methods for crops and, with the money she earned, she’s been able to purchase cows, pigs, chickens and a sewing machine to supplement her income. Immaculate is particularly proud to have built a new house and paid school fees for her four children. She’s happy that she can give them the schooling they need to succeed in life. Above all, she’s proud to give them the opportunities she never had. And we’re proud to come alongside her and empower her to be the business leader and mother God has called her to be. Watch Immaculate's story at vimeo.com/watoto/Farms

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


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SPONSORSHIP With over 38,000 sponsors from 39 countries, our children are truly being raised by a global family. In 2016, we celebrated as 7,181 new sponsors joined us to support our babies, children and mothers in Uganda. 2016 LETTER WRITING Our children love to write and receive letters from their sponsors

12,966 81,227

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

MEET POLLY A little girl who’s full of life, 8-year-old Polly is going to have a big future. Abandoned as a newborn, Polly was brought to Watoto. Sponsors and partners ensured that we were able to provide her with the best start in life and today she has a family, education and friends from all over the world. Polly has sponsors from Australia, Canada, Hong Kong and Scandinavia. She likes writing to them because she can tell them about all the things that God has done, and she gets to say thank you. Thanks to the continued support of her sponsors Polly’s had big opportunities, such as travelling to Australia with the Watoto Children’s Choir, but she also has the everyday opportunities of a normal childhood. She can play games with her sisters, use the swings in the park and know that she is loved. Thank you for transforming the lives of children like Polly, so that they, in turn, can change their nation.

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VISIT WATOTO We hope you've been encouraged by these stories of what we're achieving together, but the best way for you to see the impact you're having is to come out for a visit and see it for yourself. From Hong Kong to Norway, this year we’ve had over 1,100 individuals visit us from across the globe. Teams came to be involved in various projects including: building and repairs, community outreaches, medical projects, children’s camps, sports development, Baby Watoto and even leading a worship camp. 100 international volunteers, who stayed for a month or longer, gave their time, skills and expertise to different departments across Watoto. We were also joined by students from around the world who participated in our international discipleship program, Watoto360°. Additionally, we had teams and individuals who came as guests to experience Watoto. They were able to see the result of their financial support and were impacted through meeting their sponsored mother or child. Thank you to everyone who visited Watoto in 2016. We couldn’t do what we do without you.

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FROM THE HEART OF A SPONS O R There’s something truly special about seeing the impact of your partnership in person. Sponsors like Charlee, from the UK, come to visit Watoto and are changed by the experience. Charlee has sponsored Living Hope since 2015 because she wanted to invest in Uganda’s women. ‘I wanted to be a part of something that made a long-term impact and I loved Watoto’s vision for women to become leaders in their community. On my first day, when I entered the Living Hope workshop, the ladies rose and greeted me with clapping, yells and hugs. It was a beautiful welcome, full of love. I sat and talked with them, learnt about their work, and heard about their lives and families. One woman told me how she used to feel receiving handouts. She said it felt like the other person had seen that she was useless, that she couldn’t provide for her family. But here, people saw her and recognised that she could do something, for herself and for her family. It was hard to hear how difficult life had been for many of these women through no fault of their own. But it was also amazing to see the transformation, the joy and pride they had because of where they are today. I think it also means a lot for the women to see that somebody from the other side of the world, who’s from a different life stage and culture believes that they are valuable and worthwhile. I would encourage everyone else who is a sponsor that God is really at work here in Uganda.'

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


WATOTO CHILDREN’S CHOIR On almost every day of the year, the Watoto Children’s Choir is performing somewhere in the world. In 2016, our choir performed ‘Oh, What Love’ across the globe. 126 children and over 65 adults travelled to share the love of Jesus with all people. A huge thank you to all the churches who welcomed us, the families who hosted us and the individuals who made our tours worthwhile. At the same time, behind the scenes we’ve been creating a new production we’re calling ‘Signs & Wonders’. This tour highlights the creativity of Uganda’s emerging songwriters, musicians and choreographers. ‘Signs & Wonders’ began touring in January 2017, telling the story of a loving God who cares for each of us personally. The children share how they came out of darkness into a transformed life, full of purpose to change their world.

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

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

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

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

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


SOUTH SUDAN

JUBA

GULU

LAMINADERA

UGANDA

BBIRA

KAMPALA

SUUBI

UGANDA & SOUTH SUDAN

WATOTO CHURCH

WATOTO VILLAGE

BABY WATOTO

WATOTO FARM

KEEP A GIRL IN SCHOOL

LIVING HOPE CENTRE

11 LOCATIONS throughout Uganda 1 LOCATION Juba, South Sudan

3 VILLAGES Bbira Suubi Laminadera

2 LOCATIONS Suubi Gulu

3 LOCATIONS Suubi Lubbe Buloba

LOCATIONS throughout Gulu

2 LOCATIONS Downtown Gulu

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2 0 1 6 F I NA N C I A L S 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 2016, 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 2016 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 6 to 38. 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 2016, 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. 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. 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.

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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

Partner Ernst & Young Certified Public Accountants of Uganda 27 April 2017

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E X T R AC T S F RO M O U R 2 0 1 6 A U D I T E D A N N UA L A C C O U N T S Consolidated statement of comprehensive income for the year ended 31 December 2016

Notes

2016 Shs'000

2015 Shs'000

5

55,715,179

52,257,264

Operating expenses

9

(43,809,963)

(36,087,115)

Administrative expenses

10 (b)

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

(5,512,739) (41,599,854)

3,991,487

10,657,410

1,401,830 5,313,317

85,868 10,743,278

_________-

_________-

5,313,317

10,743,278

Other comprehensive income net of tax

_________-

_________-

Total comprehensive income for the year

5,313,317

10,743,278

5,334,242 (20,925)

10,740,787 2,491

5,313,317

10,743,278

Income Expenditure:

Operating surplus Net finance income Surplus/(deficit) before income tax

6

Income tax expense Surplus for the year

7

Attributable to: Owners of the parent Non-controlling interest

42

15


Consolidated statement of financial position as at 31 December 2016

Assets

Notes

2016 Shs'000

2015 Shs'000

Non-current assets Property and equipment

11

43,449,299

43,747,388

Operating lease prepayments

12

461,555

463,065

Operating lease prepayments

13

232,223

332,948

44,143,077

44,543,401

Current assets Inventory

16

477,789

175,662

Current income tax recoverable

24

147,713

120,355

Amounts due from related parties

17

1,302,405

1,071,283

Receivables and prepayments

18

3,554,512

2,494,012

Held to maturity investments

19

10,379,107

2,339,466

Bank and cash balances

21

7,820,185

8,591,838

23,681,711

14,792,616

67,824,788

59,336,017

62,581,457

57,247,215

(31,669)

(10,744)

62,549,788

57,236,471

Total assets Equity and liabilities Non-current assets Accumulated surplus Non-controlling interest

15

Current liabilities Amounts due to related parties

17

818,728

89,651

Payables and accrued expenses

20

4,456,272

2,009,895

5,275,000

2,009,546

67,824,788

59,336,017

Total equity and liabilities

The financial statements on pages 6 to 38 were approved by the Board of Directors on April 27, 2017 and signed on its behalf by:

___________________________

___________________________

Director

Director

43


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Annual Report 2016  
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