Annual Report

ANNUAL REPORT 2016

TA B L E O F C O N T E N T S

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Who We Are

4

A Message From Our Founders

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Celebrating Christ

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Church

10

12

Heaven’s Gates & Hell’s Flames

Shift

14

Daughters Of Destiny

15

Men Of Valour

15

Youth & Children

16

Cell Groups

20

Seed Projects

22

Discipleship

24

Expansion

28

Caring For Community

30

104.1 PowerFM

32

Our Neighbourhood

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Watoto Village

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We Are Family

38

Message from our Executive Director

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Juba, South Sudan

42

Financials

46

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Auditor’s Report

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WHO WE ARE

In 1984, Uganda was a broken place in the midst of a civil war. Watoto Church was planted with the vision to bring healing to cities and to rebuild the nation.

More than 30 years later, we remain dedicated to transforming our neighbourhood. We do this through celebrating Christ as we gather in various activities; and by caring for community by loving vulnerable women, keeping girls in school and caring holistically for thousands of widows and orphans.

CHRIST. VISION. WORD. FAITH. WORSHIP EXCELLENCE. CHARACTER. GENEROSITY JUSTICE. LOVE. COMMUNITY. UNITY

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A MESSAGE FROM OUR FOUNDERS We’ve had an incredible year at Watoto Church. By the power of Jesus’ love, there has been significant transformation in the lives of individuals, families and communities throughout our nation.

In 2016, we saw almost 20,000 people give their lives to Christ through various activities including our regular celebration services, cell groups (small groups), and especially through the 9-day production, Heaven’s Gates & Hell’s Flames we held in April; as well as SHIFT, the youth production we took into High Schools.

Through our Watoto villages and Baby Watoto, we rescued 314 children. In addition, we reached 562 additional vulnerable 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.

That’s why we’re excited to present you with this year’s highlights and stories from across Watoto.

From our cell groups and celebration points, to the Watoto villages, and 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 & Marilyn Skinner

Founders, Watoto Church

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

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CELEBRATING CHRIST We celebrate Christ by gathering. We gather as 12 celebration points across Kampala & Gulu, Uganda; and Juba, South Sudan.

We gather as cell groups (small groups), men, women, youth, children and married couples. All for the glory of God.

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THE CELEBRATION 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 bringing transformation in the hardest of places.

6%

growth in celebration attendance

27,000 people every weekend 6% growth in celebration attendance

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HEAVEN’S GATES & HELL’S FLAMES Every four years, we create a captivating family production about life after death in partnership with Reality Outreach. Performed around the globe for over 50 years, Heaven’s Gates and Hell’s Flames is set to the backdrop of advanced multimedia. This highly poignant stage presentation is entertaining, emotive and life changing.

“Over the years, we have shown Heaven’s Gates and Hell’s Flames to show the reality of heaven and hell. We’ve seen incredible results as thousands of people give their lives to Christ every time,” says Gary Skinner, Watoto Founder.

Almost 9,387 flocked to the altar to choose Jesus during 33 shows with an attendance of more than 46,000 people.

Patrick (22) is one of these beautiful people.

“My life was going nowhere fast,” says Patrick. “I used to drink a lot and spent most nights out, partying with friends. As I watched the club scene in the production, I was deeply moved. I identified with everything the actors were saying and expressing. And then I felt a deep stirring within my heart that there was hope. I now know that was the hand of God reaching out to me.”

Since Patrick gave his life to Christ, he has been baptised in water, has become an active member of a cell (small) and youth groups, and is living a life of purpose.

“I have seen God’s love and favour. I’ve experienced many miraculous moments after that night.

Now, I never miss the opportunity to learn more about Christ. I want to walk a deeper walk with Him,” says Patrick.

2 weeks 33 Shows 46,000 People 9,387 12

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SHIFT This year, we created Shift, a captivating youth outreach production that takes the Gospel into high schools. Through energetic music, dance and drama, Shift speaks the message of Jesus in a way that engages young people. More than 3,000 youth gave their lives to Christ as the production toured 9 schools during the school term.

3,000 salvations 9 schools

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MEN OF VALOUR When men take up their rightful role in society, nations are changed. We believe in our men. Men of Valour helps men find their identity in Christ so they’re activitated to excel individually, as husbands, as fathers, and as productive citizens of their community.

Through discipleship in Godliness, greatness and generosity, men are empowered to live up to their full potential.

DAUGTHERS OF DESTINY Women have influence. Daughters of Destiny mobilises and empowers women to unite for positive influence in our community. Numerous discipleship and mentorship activities are run to equip women for their God-given purpose.

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YOUTH Through captivating activities including camps, productions and school tours, we energise, excite and empower our Youth to engage their world for Christ.

48% growth to 1, 170

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CHILDREN As a family, we want to see our children grow up knowing Christ and living their full potential in Him. Through fun and engaging, Bible-based activities, we partner with parents and guardians for active participation of our kids in their discovery of their God-given purpose.

9% growth to 7, 186

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Check out the highlights video of Heaven’s Gates and Hell’s Flames at vimeo.com/watoto/hghf

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19,990 Salvations 19

CELL & SEED PROJECTS As a church family, we gather in small (cell) groups to walk out God’s word practically in life. Once a week, we get together in our neighbourhoods to encourage and inspire each other.

We also look at the needs in our communities. Partnering with our neighbours, we identify various projects that will help better our quality of life and nation. We call these seed projects.

These include the refurbishment of schools, medical centres, police posts, water wells and others.

In 2016, we focused particularly on providing medical support to many who were unable to access any.

From the 187 projects we did through the year, about 5,815 people received free medical care.

What stood out was the willingness of many like-minded partners that came alongside our Watoto small groups to reach out to vulnerable people in our community,� says Hannington Opondo, Pastor: Cell & Community.

We also saw an overwhelming number of volunteers in the form of medical personnel, counsellors and many others give their time, skill and money to provide much-needed free medical services to people.

We are thrilled that, collectively through cell and seed projects, more than 882 people gave their lives to Christ.

882 salvations

187 seed projects 882 salvations in cell

2% growth in cell to 15,484

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Our cells are making an impact. See Patrick’s story at vimeo.com/watoto/Patrick

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WATOTO360° Through Watoto360°, we disciple young adults with emphasis on spiritual growth, character development and preparation for service.

We create an environment for young adults to discover purpose, prepare them to serve in the local church, and impact their communities for Christ.

Interactive learning and classroom teaching is complemented by practical involvement in ministry activities, including participation in weekend church services, outreach to local hospitals, slum projects, prisons and schools.

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SCHOOL OF COMMUNITY LEADERSHIP We believe in raising effective leaders who will be change agents in their families, neighbourhoods and cities, so we’re able to see transformation in our nation.

Our School of Community Leadership develops professionals in various fields for this purpose.

EQUIP NIGHTS We desire to see every church family member thrive in their relationship with God so they’re able to enjoy a victorious Christian life.

For this reason, we have a range of education, leadership and discipleship programs and activities to empower every believer at any stage of their journey.

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THE WEEKEND Celebration 25,271+ Average weekly 12 Celebration Points highest attendance 28,061

people gave their lives to Jesus (During all activities in 2016) First time visitors (Throughout the year)

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10,049

19,990

DEMOGRAPHIC

AVERAGE 2015

AVERAGE 2016

% GROWTH

Adults

16,364

16,915

3%

Children

6,596

7,186

9%

Morph

789

1,170

48%

Homes

2,541

2,550

0%

21,208

22,721

7%

CELEBRATION POINT

AVERAGE WEEKLY ATTENDANCE

HIGHEST ATTENDANCE

% GROWTH

Downtown

6,375

5,980

-6%

Kansanga

1,836

2,101

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Bugolobi

0

1,200

Ntinda

4,514

4,502

0%

Bweyogerere

3,707

3,977

7%

Kyengera

1,198

1,277

7%

Lubowa

1,887

2,097

11%

Gulu

1,428

1,672

17%

Juba

406

393

-3%

Suubi

1,187

1,153

-3%

Bbira

840

851

1%

Laminadera

513

546

6%

Districts

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CARING FOR COMMUNITY We care for community by creating family homes for orphaned and abandoned children, restoring dignity to vulnerable women, and working in our neighbourhoods for positive transformation.

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Watch this video about Sunday’s story at vimeo.com/watoto/PowerFM

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104.1 POWERFM “Sometimes you work hard to progress in life, while others only see what is negative,” says Sunday Kawempe. “With God, however, all things are possible if you only believe.”

We met Sunday during the Annual 104.1 PowerFM Easter in Prison outreach in 2012.

He was an inmate in Luzira Prison from 2011 to January 2017. After 6 years awaiting trial, his case was finally reviewed. He was found to be innocent.

He says, “I thank God for Watoto’s PowerFM for having a heart for prisoners. Not only was it a welcome solace every Sunday as we listened to programs that enriched our souls, but they also visited us. That means everything when even those closest to you have abandoned you.”

A budding professional soccer play, Sunday used to train everyday. He was on the verge of transitioning teams in the football league in northern Uganda. The community admired his passion for the game and was used to seeing him either training till very late at night or catching the latest games on TV at a local sports café.

One fateful evening, as he returned to the local soccer pitch to train, he was arrested in a case of mistaken identity. “One minute I was staring the future I had worked so hard for in the face.

The next, I watched all my hopes vanish.”

interacted and he inspired me. Even as I testify now, he is the reason I am sharing this story.

He came in 2012 and continued to follow up on me. In fact, the first thing I did when I was released was call Ronnie and see him at the PowerFM offices. I wanted to thank the people who had impacted my life while I was in jail.”

Later, Sunday also visited the family that accused him. He said that he had learnt forgiveness and wanted to share this freedom he found with them.

“Others forget about prisoners. Some are innocent and need hope. Some are guilty and later regret it. They need hope. PowerFM did not forget about us,” he declares.

In prison, Sunday quickly learnt to comply with the system. He made peace with the situation he found himself in, learnt to obey the rules, and focused on how he could benefit from the experience.

Sunday Kawempe is pursuing his dream of playing football professionally today. He is grateful for a family of believers, who cared enough to show him love.

He says, “Not only did PowerFM provide us with some essentials we needed including food, toiletries and other things, but they also brought us the Gospel through music, comedy, and sports including soccer. They spent time with us.”

104.1 PowerFM exists to positively transform the lives of young people.

We do so by driving cultural change through relevant content so as to bring communities to the knowledge and love of Christ.

“104.1 PowerFM recognised my good character.

I greeted one of the staff members, Ronnie. We

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

When we first started out there was an overwhelming need to intervene in the orphan crisis as a result of HIV/AIDS. With the introduction of ARVs (antiretroviral drugs), things are changing... the need has changed. Now, we are expanding our work with vulnerable women because we believe Africa’s greatest resource is her women.

The harsh reality is that many of these women have been left to bear the brunt of war, poverty and disease. But we know 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.

As a result, not only do these women benefit, but their children also benefit – they are nurtured, educated and empowered to reach their full potential. Watoto Neighbourhood is an initiative to meet the women right where they live. Their key needs include Housing, Healthcare support, Employment, and Education for their children.

We have already empowered over 4,000 women to live an empowered life. In 2016, we trained and discipled additional 562 women and, for the first time, welcomed 112 of their children into our Watoto schools and homes.

Watch this video and see how we can impact our neighbourhood at vimeo.com/watoto/neighbourhood

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RITAH’S STORY ‘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.

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OUR VILLAGES Our three Watoto villages meet the needs of children who were orphaned and vulnerable, and 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 Watoto home you’ll find a woman who has come to Watoto to be a mother to 8 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. More importantly it’s a place that a family can call home.

Together in 2016, we provided a home for 3,000 children. And we educated 2,891 of these in our schools across our villages.

In addition, we rescued 74 babies who found a home in one of our two Baby Watoto facilities. To date, we’ve cared for 1,212 babies. We thank God that, together, we are changing their stories.œ

Meet one of the Watoto students at our villages at vimeo.com/watoto/Miriam

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WE ARE FAMILY

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EXECUTIVE DIRECTOR’S REPORT Every year we take time to celebrate the good work that God is doing at Watoto Church. This gives us the opportunity to encourage one another, give thanks to God and pray while submitting ourselves to the direction of the Holy Spirit.

In this report, we’ve tried our best to highlight how we collectively reached out and served those who attend our celebration services, and the communities in which we live. We hope you’ve been inspired to follow Christ passionately, and equipped to love those around you practically.

Our theme for the year was Next Level and indeed we saw God take us to the next level. More than 19,990 people committed their lives to Jesus. Glory to God. As a cell (small group) based community church, our dream is to see everyone find a place to belong, get involved and establish strong lasting relationships for the glory of God. We witnessed healthy growth with over 15,400 people attending weekly cell gatherings.

We opened our twelfth celebration point at Bugolobi in May, and we’re steadily growing towards 36 celebration points in the next 10-15 years.

As we look to expand our reach in our neighbourhood, I was so encouraged by the commitment I saw from so many of you who are already being relevant. We completed 187 community projects, including 10 medical camps reaching out to almost 6,000 people. Thank you.

What’s ahead?

We’re getting ready to open one new celebration point in the greater Kampala area in 2017. This is central to the strategy to create opportunities for the gospel to be shared where people are.

We also intend to commence the construction of 2 new children and youth facilities at Ntinda and Lubowa.

Our success in all these areas is vastly dependent on our ability to raise leaders. We will focus on the intentional development of 2,500 volunteer leaders serving in various capacities in 2017.

All of this is exciting, but we could not do it without you. On behalf of Gary and Marilyn, Watoto is grateful for all the leaders in the ministry, and the greater team of volunteers in our congregation.

A special thank you to the Deacons and Elders team. To the congregation and partners, thank you for your continued prayers, commitment and faithful giving. We would not be able to do what we do without the contribution of the whole Watoto Church Family.

Wishing you Jesus’ very best and may he continue to make you a blessing!

Steven Kisingiri

Executive Director Watoto Church

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JUBA

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JUBA, SOUTH SUDAN In July 2016, conflict once again erupted in South Sudan.

Thousands died or were forced to flee their homes. Our team was forced to evacuate for a time.

But despite the war, affliction, famine and disease, God has given us the grace to stay in Juba. Just as it was when we started in Uganda over 30 years ago, we continue to meet as a church and we are working towards answering the needs of our community.

Says Watoto Juba Pastor Joe Ogwal, “So much has happened and is happening. In the face of it, we are the church of the Lord, Jesus Christ, and the hope of the world is the church. Thank you for standing with your family right here.�

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

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WATOTO CHURCH LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2016 2016

2015

000

000

23,935,862

23,853,496

(14,733,844)

(13,136,274)

(6,435,202)

(6,298,257)

Operating Surplus

2,766,816

4,418,965

Finance Costs

(170,846)

(195,833)

Surplus before Income tax

2,595,970

4,223,132

-

-

2,595,970

4,223,132

Income

Ministry Expenses

Operating Expenses

Income tax expense

Total comprehensive Income

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REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF WATOTO CHURCH LIMITED (CONTINUED) Report on other legal requirements As required by the Ugandan Companies Act, 2012 we report to you, based on our audit, that: we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of the audit; in our opinion proper books of account have been kept by the company, so far as appears from our examination of those books; and the company’s statement of financial position and statement of comprehensive income are in agreement with the books of account.

Certified Public Accountants KAMPALA

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CONSOLIDATED STATEMENTOF FINANCIAL POSITION AS AT 31 DECEMBER 2016 2016

2015

000

000

26,141,660

25,830,381

1,721,431

1,773,275

-

10,488

27,863,091

27,614,144

ASSETS Non-current Assets Property and Equipment Operating Lease prepayments Intangible assets

CURRENT ASSETS Receivables and Prepayments

1,320,063

648,726

Held to Maturity Investments

3,651,700

2,307,671

230,539

-

1,825,055

1,164,597

7,027,357

4,120,994

34,890,448

31,735,138

28,884,869

26,281,374

8,032

15,558

28,892,901

26,296,932

2,504,488

2,602,625

507,178

356,644

Amounts due from related parties Cash and cash equivalents

TOTAL ASSETS EQUITY AND LIABILITIES Capital Employed Accumulated surplus Non-controlling interest Non-current liabilities Borrowings CURRENT LIABILITIES Borrowings Amounts due to related parties

886,295

496,610

Payables and accrued expenses

2,099,586

1,982,327

3,493,059

2,835,581

34,890,448

31,735,138

TOTAL EQUITY AND LIABILITIES

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STATEMENT OF DIRECTOR’S RESPONSIBILITIES FOR TH EYEAR ENDED 31ST DECEMBER 2016 The Uganda Companies Act, 2012 requires the directors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Company as at the end of the financial year and of its profit or loss. It also requires the directors to ensure that the Company keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Company. They are also responsible for safeguarding the assets of the Company.

The directors accept responsibility for preparation of the financial statements, using appropriate accounting policies supported by reasonable estimates, in conformity with International Financial Reporting Standards and the requirements of the Uganda Companies Act, 2012.

The directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Company and of its profit in accordance with International Financial Reporting Standards and the Uganda Companies Act. The directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements 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. Nothing has come to the attention of the directors to indicate that the Company will not remain a going concern for at least twelve months from the date of this statement.

____________________________ Director

____________________________ Director

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DOWNTOWN Plot 87 Kampala Rd, PO Box 2311 Kampala Uganda TEL: +256 312 266461/2/3/4/5 email: info@watotochurch.com KANSANGA Wonder World Theatre (former Didi’s World) NTINDA Kigoowa - Kisaasi +256 393 266 468 BWEYOGERERE Kazinga +256 393 266 466 KYENGERA Kyengera +256 393 266 469 LUBOWA Lubowa Estates +256 393 266 467 BBIRA Watoto Village, Bbira +256 312 266 471 SUUBI Watoto Village, Nakirebe +256 392 175 256 GULU Plot 2-24, Sir Samuel Baker Rd Olayilong +256 393 260 469 LAMINADERA Watoto Village, Labora +256 782 140 131 JUBA Nyakuron Cultural Centre +211 925 289 992 BUGOLOBI Silver Springs Hotel +256 312 266461/2