WEAL Annual Report 2012 Draft - Final Lg

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Annual Report 2012

World Education Australiabuilding skills, changing lives


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Our Vision is a world without poverty wherepeople have access to resources and opportunities toimprove their own lives.

Our MissionThrough micronance and skillsdevelopment we enable the poor to improve theirincomes and change their lives forever.

Micronance is the provision of nancialservices to the poor. Micronance services are notjust loans (microcredit), but include savings, microinsurance and money transfer products. The desireand capacity to save represent a critical step towardseconomic self-sufciency.

Skills BuildingLiteracy and numeracyare essential if human beings are to extend theirnatural capability. Those who want to run any typeof enterprise also need basic nancial literacy, tounderstand book keeping, budgeting, borrowing andsaving options. Livelihood skills are the vocationaland technical know-how that enhances a personsproductivity.

We believe no one deservesa lie o poverty.

Contents

Our Mission 2From the Chair & CEO 4

Where We Work 6

Good Return 8

Our MFI Partners 9

Sustainable Livelihoods 10

Sustainable Energy 12

Social Performance Management 14

Update on Vanmai SCU, Laos 16

Our First Field Ambassador 17Australian Programs 18

Board of Directors 19

Governance 20

Concise Financial Report 21

Thank You to Our Supporters 26

The objective of the Australian Government aid program,

delivered by the Australian Agency of International Development

(AusAID) is to assist developing countries to reduce poverty and

achieve sustainable development, in line with Australias national

interest. World Education Australia is one of 42 non-government

organizations accredited with AusAID.

World Education Australia is a member of the Australian Council

for International Development (ACFID). We are a signatory to

the ACFID Code of Conduct and committed to upholding it. Our

summary nancial reports comply with the standards set out by

the ACFID Code of Conduct. The Code requires non-government

development organizations to meet high standards of corporate

governance, publicaccountability, and nancial

management.

More information about the

Code can be obtained from

ACFID. Visit

www.acd.asn.au.


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Haydee Molenos StoryHaydee runs a sari sari (variety) shop in thePhilippines, and her husband is a rickshaw driver

in the local village. Theyre a typical family inthe Philippines that only needed a small loan togreatly improve their lives.

Haydee took out a $75 loan through Good Returnto plant a rice paddy and buy fertiliser. She usedsome of her prots to help pay for her eldest sonscollege tuition.

While repaying her loan, Haydee participated in anancial literacy class provided by Good Return.

She learned how to track her expenditures andincome and manage her debt. Her loan is nowrepaid, and she is sharing her knowledge with herdaughter and daughter-in-law.

Haydee also heard about Good Returnssustainable energy program, and has startedselling solar lamps to her customers as anadditional source of income.

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Letter rom the Chair & CEOConsolidation and growthAs we look back on 2012, it was pleasing to see our

organisation come of age. Now nine years since

incorporation, this report shows World Education Australia

(WEAL) has consolidated both its nancial position and

operational capabilities. And in a year of solid growth, our

agship program Good Return further extended its delivery

of sustainable training and micronance solutions to the

poorest in our region. The milestone in March of having

supported 2,000 vulnerable women across the region was

one we are proud to have achieved.

This maturity was rewarded at the end of the year when

the Commonwealth agency AusAID accorded WEAL

full accreditation status. In addition to endorsement of

high standards of operation and governance, this means

WEAL is eligible for signicantly more government grant

support than before. With this extra leverage, we are betterresourced than ever to lend a hand to those striving to

escape a life of poverty.

Good Return deliversWhile WEAL remains our corporate name, Good Return

is now rmly our public face. Its website provides a highly

effective means of engaging with the Australian public. This

ability to rally so many to the war on poverty in turn attracts

corporate partners, who are making the Good Return brand

and its message a core part of their social responsibility

effort.

WEAL is committed to education, in basic and nancial

literacy and vocational skills, as the key to empowering

people. Donations and donated loans supported our

Sustainable Livelihoods program to deliver training to

6,215 women in East Timor, Nepal, Tonga, Laos and the

Philippines.

An all too common feature of economic hardship is energy

poverty. Our Sustainable Energy initiative operates in six

countries, where it has encouraged supply chains that

allow the rural poor to access solar power and re-designed

cooking stoves. While still in its build phase, our green

loans have already helped nearly 1,000 households

acquire these renewable and energy efcient appliances.

During the year, we continued to work with MFI partnersto extend their focus from simply nancial outcomes to

include social performance and environmental benchmarks.

To that end, WEAL has become a signatory to The Smart

Campaign, a global agenda to improve transparency

and accountability in the micronance sector. This report

provides further information on our achievements this past

year.

Thanks to the teamAusAIDs positive feedback during the accreditation

process was a well-earned boost to the team. It reectsthe progress of recent years, and the effort of staff, paid

and volunteer, in helping build a professional management

framework. So to all our volunteers and supporters, as

well as our corporate partners, we offer grateful thanks.

We appreciate and look forward to their continuing support

as together we pursue a shared vision of a world without

poverty.

Neild McIntoshChairman

Guy WinshipChief Executive Ofcer

I am so pleased that the Foundationhas been able to support a project that hashad as much impact as Skills or Lie, aninitiative which is truly transorming thelives o thousands o people across AsiaPacic, helping them to ght poverty and

environmental degradation by teachingthem skills, sustainable arming practicesand providing access to micronance.

Derek Young, Accenture Australia Foundation

Thank you to our corporate partnersWorld Education Australias corporate partners have

provided us with invaluable support. And not just in funding,

but with pro-bono personnel, promotional opportunities,

new partnership opportunities, and employee engagement.

We would like to extend a particular thank you to:

Accenture Australia Foundation

Origin Energy Foundation

Westpac Group

Clayton Utz

Deloitte Foundation


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Mary Ann and her husband were in debt and had difcultysupporting their family. He didnt have a regular income andshe was caring full time, for her kids and for her bedriddenmother-in-law who lives with them.

She decided to take out a loan to help earn money for thefamily. Mary Ann started with a Php 2,500 loan ($60 AUD),which she ploughed into creating a business, a small shopout of her house selling herbal medicines. She also protedby selling food in her village, repackaging crackers bought inbulk into smaller quantities.

Life was hard for us since my husband did not have a regularjob and we had a hard time making ends meet, she saysabout life before the loan.

But even while they were struggling, Mary Ann believed theycould live a better life. I really wanted to do something to

help improve our situation, she says.

Once she had the loan, things became more hopeful. I feltthat life got better. Having a loan helped me to work harder,especially as I need to pay for it every week, she says.

That start in business from a loan, and the need to pay it off,changed Mary Anns life. She was able to make a nancialcontribution to her family. Life is different I became morecreative in looking for new ways to earn money, she says.

Alongside the micronance loan, Mary Ann participated innancial literacy education offered by Good Return, given

through a number of lively sessions which include practicalknowledge and experiential learning. For Mary Ann, the mostuseful lesson was debt management training, which helpedher to understand what it meant to be in debt and how tobe more astute about money. I was struck by the story ofSara and I kind of reected to myself that I dont want to be

like Sara, who was drowning in debt. I felt that way becauseduring that time, I realized I had lots of debts. I told myselfafter that day, that I will pay off my loans, she says. TodayI am happy that I paid some of it and I can sleep soundly atnight. Though I still have debt and borrowed money, I only

borrow when really needed and I only take out a loan to usefor business so I can earn more income.

Mary Ann also learned to pay attention to cash ow, how tokeep records, and to identify expenses that can be reduced.What she learned, she passed on to her husband and twochildren. Every time I got home from the training, I would tellmy husband and my kids what happened, what I learned andrealized from the training. Then I was surprised one day whenmy husband gave me some money out of his savings, shesays.

Now that shes repaid several loans and has a successful

business, Mary Ann has become a nancial literacy trainer inher own village, coaching women on budgeting. She has alsobecome a village agent and sells solar lamps and fuel efcientstoves. It greatly helped me to pay for the school fees of mydaughter in college. I also look at it as a business opportunity.So whenever I do the budgeting sessions, I bring with mesample products so I can present it to potential buyers, shesays.

For someone who only nished high school, the ability tobecome a trainer has enriched Mary Anns life, boosting hercondence and affording her the social status that comes

with teaching. I never had thought about being able to teachothers Its great to see and hear other clients tell you howthey appreciated the training sessions you conduct and thatthey have learned something from the training. And some ofthem call me Maam!

Mary Ann Arevalos Story

Mary Anns cashow diary.

Mary Ann in red, leading a warm-up

activity at a nancial literacy class. 5


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Nepal Laos

Cambodia

Philippines

East Timor

Kalimantan,Indonesia

Australia

NepalPrograms Good Return, Skills for Life,

Sustainable Energy

Partners Nirdhan Utthan Bank Limited,

World Education Nepal

Key Activities Micronance, skills building, nancial

literacy, renewable energy technologies,

social performance management, basic

literacy and numeracy

Where We Work

West Kalimantan, IndonesiaPrograms Good Return, Skills for Life,

Sustainable Energy

Partners Credit Union Keling Kumang, Solidaridad,

World Education Indonesia, Stichting

Doen Foundation



social performance management


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Tonga

Fiji

LaosPrograms Vanmai Savings & Credit Union

Partners World Education Laos

Key Activities Financial literacy, skills building,MFI capacity building

AustraliaPrograms ConnectEd

Partners Traditional Credit Union, World

Education International, YWCA New

South Wales

Key Activities Financial literacy, skills building,

MFI capacity building

Tonga & FijiPrograms Good Return, Sustainable Energy

Partners South Pacic Business Development

Micronance Ltd.

Key Activities Micronance, nancial literacy,renewable energy technologies

East TimorPrograms Good Return, Skills for Life,

Sustainable Energy

Partners Moris Rasik, Hivos, INFUSE / UNCDF,

Irish Aid



MFI capacity building

PhilippinesPrograms Good Return, Skills for Life,

Sustainable Energy

Partners Saint Elizabeth Community

Development Program (SECDEP)



social performance management

CambodiaPrograms Good Return, Skills for Life,

Sustainable Energy

Partners Thaneakea Phum Cambodia,

World Education Cambodia

Key Activities Micronance, skills building,

nancial literacy

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Good Return: Our Major InitiativeThe Good Return website is designed to engage

Australians to learn more about poverty in our backyard

the Asia Pacic, where two thirds of the worlds poor live.

We connect Australians to individuals who need loans to lift

themselves out of poverty.

This year has seen signicant growth of the Good Return

community. We reached the milestone of fully funding

2,000 loans to women by the end of March. We ran

four major campaigns, which were: Anti-Poverty Week,

Christmas gifts, International Womens Day, and Mothers

Day gifts. Good Return was featured in media such as ABC

Radio, mX, and the Big Issue.

We strive to educate and engage Australians on topics

such as micronance, poverty, sustainable energy, nancial

literacy, and other topics around poverty alleviation. We

do this through our blog, Facebook, Twitter, LinkedIn, and

other social media channels. We also maintain a YouTubechannel which features videos about what, where, and with

whom we work.

Good Return has become a meaningful and personal way

for Australians to make a difference in ghting poverty.

Visit the Good Return Website:

www.goodreturn.org

Good Return Highlights 2,591 ully unded loans to women

12,955 amily and community membersbenetted through low-on eects

6,215 individuals participated in skills trainingand nancial literacy classes (98% women)

654 micronance institution sta participatedin capacity building training (55% women)

99.9% repayment o all loan unds


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Our Micronance Institution PartnersWorld Education Australia and Good Return work with

micronance institution (MFI) partners to ensure funds

raised through Good Return assist the working poor.

We conduct a thorough selection and due diligence

process with all in-country partners. We assess the integrityof the micronance institution and look for partners who

share our commitment to transparency.

This year saw the start of two new partnerships with MFIs

in Cambodia and Indonesia. All our partners undertake to:

Push the frontiers of micronance by reaching out to

poorer, marginalised clients

Consider client satisfaction and adjust services to

meet client needs

Strive to improve their efciency and effectiveness

and to pass on cost savings to clients

Share knowledge and be transparent in theirdealings with clients, staff, and community

SECDEP, PhilippinesIn the Philippines, our partner is St. Elizabeth Community

Development Program (SECDEP) who currently serves its

primarily women members from 6 branches on the island

of Panay. From its start as a food program, SECDEP has

evolved to provide micronance, education and health-

related programs to its members. Good Return helps

SECDEP deliver sustainable farming and small business

training, and nance for sustainable energy products.

SPBD, Tonga and FijiSouth Pacic Business Development (SPBD) is part of a

network of micronance institutions working in Fiji, Samoa,

and Tonga. It is committed to eradicating poverty by

giving women in villages the opportunity to start and grow

sustainable enterprises. SPBD also provide its clients with

a range of services to support home improvements and

education. Of all loans distributed, 99% go to women, 80%

to clients in rural areas, and some 40% to single mothers.

This year marked our Sustainable Energy Programs

expansion into Fiji.

Nirdhan Utthan Bank, NepalNirdhan Utthan, the bank for uplifting the poor, was

established in 1998 and is now a regulated micronance

bank. It aspires to be a bank with a social conscience, that

enables the poor to contribute equally to a prosperous,

self-reliant rural society. Nirdhan is now Nepals largest

micronance development bank, with some 125,000

clients, primarily from rural villages.

Moris Rasik, East TimorMoris Rasik means independent and dignied life in

Tetun, and it works exclusively with women savers and

borrowers. Moris Rasik was established in 2000 as a

specialised micronance institution, and has grown by

offering saving services and loans to micro-entrepreneurs

in the district capitals as well as rural areas without banks.

It is now the largest MFI in East Timor.

CUKK, West Kalimantan, IndonesiaWe began a relationship with Credit Union Keling Kumang

(CUKK) this year. Keling Kumang refers to a folk story

about a strong husband and strong wife who work

together to build a resilient community. From humble

beginnings, the members of Keling Kumang have made

their own folk story growing to a community of over

110,000 strong. It is based in West Kalimantan, Indonesia.

TPC, CambodiaAnother new partner, Thaneakea Phum Cambodia (TPC)

is a credit union that has a social vision and a business

orientation that provides poor women with the economic

opportunities to transform the quality of their lives and

communities. Established in 1994, TPC now has 40

branches and 95% of its clients live in rural areas. More

than 40% of its clients are under the national poverty line,

and 85% of loans go to women.

All the best to Moris RasikWe are pleased to announce that Moris Rasik has begun

its transformation to a regulated nancial institution. It

has received funding from the World Banks International

Finance Corporation (IFC) to do so. Funding from NZAid

means the nancial literacy program, piloted by Good

Return, will continue as well.

It has been our pleasure to have worked with Moris Rasik

over the past three years. Together we funded 530 loans to

women who wanted to start or grow a small business, and

provided 1423 participants with nancial literacy training.

As it takes the next step in its development, we wish Moris

Rasik well in its mission to serve families in East Timor.

I would like to thank GoodReturn or all the great supportprovided to Moris Rasik inpreparing our institution ortransormation to a regulatednancial institution. I learned

a lot personally rom ourpartnership, especially thanksto the huge contribution o Guy[Winship].

Lola dos Reis, ManagingDirector o Moris Rasik

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Sustainable LivelihoodsGood Return strives to ensure that access to nance leads

to positive outcomes for the poor. Money used well can

help a family escape poverty, whereas money used badly

can lead to further indebtedness and despair. To succeed

in a market economy, one needs the basic skills and

competencies to manage money effectively. Good Returnsupports the clients of our micronance partners to develop

these skills.

We help to establish a client training unit within the partner

micronance agency, build the training and management

skills of the staff, conduct assessments of training needs,

and develop training programs based on identied needs.

By building local capacity in this way, the micronance

partner can continue to deliver training to its members long

after Good Return support has ended.

We develop practical courses that focus on crucial skills

such as:

Basic literacy and numeracy

Household nance: budgets and cash ows

Introduction to savings and credit

Understanding interest rates

Debt management

Converting loans to income requires many skills. Good

Return works with local partners to help the poor to

develop the vocational and business skills, knowledge and

experience needed to improve their livelihoods. We provide

training in:

Small business management including how to assess

the market, create a business plan, manage nances

and market products and services;

Sustainable agriculture using proven methods to

improve yeilds and returns in an environmentally

sustainable manner.

A client who participates in a nancial literacy orsmall business management course will develop an

understanding of how to calculate prots from their

business. They also learn how to make a savings plan

for the future, including setting aside a portion of money

for emergencies. In practical terms, borrowers are better

able to manage their money from both a household and a

business perspective meaning they are more informed

and can utilise MFI services effectively to lift themselves

out of poverty.

Program Highlights Active in 5 countries: East Timor, Nepal,

Philippines, Tonga, and Laos

627 MFI sta trained, 58% women

6215 borrowers completed training, 99%women

A group of women after a nancial literacy

class in the Philippines.

Following the basic numeracyclass I know how to count andhow to write numbers and howto save money. Now, before I buysomething new I make a list and aplan. I have a plan to save moneyfor emergencies and school fees. Ican list expenses and income frommy kiosk business.

Training participant from

Liquica, East Timor

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Financial diary mentoring in Tonga.Nepalese women at a class.

Llanie in the Philippines

teaches her rst module of

nancial literacy. Her class

is pictured left.A nancial literacy class in

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Sustainable Energy ProgramOne fth of the population of the Asia Pacic region do

not have access to electricity, and many more have only

intermittent access. Additionally, 3 billion people worldwide

still rely on traditional, biomass solid fuels (wood, charcoal)

for their basic cooking and heating needs.

Energy poverty is closely related to economic poverty. Not

only does it impinge on normal human wants such as the

ability to cook, light or heat a home, it represents a real

barrier to social and economic development. The pressure

to nd fuel absorbs hours of time, usually that of women,

and can be highly damaging to the natural environment.

Sustainable energy refers mainly to renewable sources

(solar, biogas, wind, micro-hydro), but also energy efcient

products, such as stoves that reduce the amount of fuel

needed for cooking.

Good Returns Sustainable Energy Program aims to helppoor families gain access to affordable, sustainable energy

products. Our approach is connecting the dots. We

assess the needs of our MFI partners clients; we identify

potential distributors and suppliers of appropriate products;

and nally we connect our partner with the distributor and

work with them to develop nancial and technical tools to

develop a sustainable distribution network over the

long term.

By combining sustainable energy with micro-loans, Good

Return is able to target poorer segments of the population,

who are usually more vulnerable to energy poverty or

energy hardship. Many of these clients would not be able

afford these technologies without a loan.

On top of that, micronance clients most of them women

are able to generate an additional income by selling

renewable energy products in their communities. Through

training and continuous support, we help them to build theirskills and develop a new green business.

The Sustainable Energy Program is now active in

six countries in different stages. We have seen good

momentum in the Philippines and progress in Nepal over

this nancial year. More sales are expected during the next

nancial year as the program is fully implemented with our

newer partners and additional products are included in the

supply chain.

Program Highlights Active in 6 countries: Nepal, Philippines, East

Timor, Indonesia, Tonga, and Fiji

350 products sold

Products include solar lamps, in-builtimproved cook stoves, biogas systems, andsolar home systems, and movable uel-ecient stoves

85 women trained as village agents (includesknowledge on use, maintenance, afer-salesservice, and marketing)

A solar lamp provides a home in Indonesia

with affordable and effective lighting without

any air pollution.

I was using a kerosene lampbefore switching to the solar lamp.It has allowed me to save moneyby reducing how much keroseneI use. Before, I was using 1 litreof kerosene a week, and now it isonly 1 litre per month. Also thereis no smoke or soot with the solarlamp, so it is better for my asthma

and my kids health!

Village agent in the Philippines

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Launching a new fuel efcient

stove in the Philippines.

A newly installed biogas system in Nepal.

Elias is mixing animal dung with water to

provide his home with clean energy.

Conducting an Energy Needs Assessment inIndonesia and visiting a micronance-funded,

community-managed micro-hydro plant.

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Social Perormance ManagementWe strive to be an effective non-prot that creates real

benets in the lives of the MFI borrowers with whom we

work. It is sometimes difcult to measure exactly what

the outcomes are of our programs, and to empirically

demonstrate positive results.

Social Performance Management (or SPM) provides Good

Return and our partners with a framework in which to

set social goals and targets which can be monitored and

managed just as more traditional accounting data are

used to measure nancial performance.

Good Return partners with MFIs with whom we share a

common social mission: to enable the poor to improve their

incomes and change their lives forever. Our SPM program

will help ensure that our support is creating positive change

in the lives of the poor.

As the micronance sector develops, an increasing numberof institutions are reaching protability, thereby ensuring the

provision of services can be sustained well into the future.

We are also working with partners to introduce the concept

of environmental performance management as part of a

triple bottom line approach to management.

Good Return is aligning its work with industry-wide

initiatives such as The Smart Campaign, the Universal

Standards for Social Performance Management and

the use of the Progress out of Poverty Index for poverty

measurement, tracking and reporting.

Where were piloting SPMThis year marks the launch of our SPM program. We have

recruited a Social Performance Specialist who works with

us on implementing projects in-country. We have also

developed partnerships with the Smart Campaign, national

micronance networks and associations, the Social

Performance Task Force Asia working group, and other

industry stakeholders.

We are focusing on several specic initiatives with our MFI

partners:

Conducting in-depth Client Protection Assessmentsand social audits (using the Cerise Social

Performance Indicators tool) to inform targeted

capacity building initiatives.

Assisting to dene social and environmental goals

and targets, and embedding these in the planning

processes of the institution.

Supporting the implementation of poverty scorecards

such as the Progress out of Poverty Index to

measure the poverty level of clients and make

business and strategic decisions to reduce client

poverty and target new clients under a certain

poverty level. Promoting the adoption of the Client Protection

Principles and Universal Standards for Social

Performance Management through staff trainings,

industry briengs and targeted initiatives.

About the SMART CampaignGood Return has signed a partnership agreement with the

Smart Campaign (ACCION International, USA) to:

Promote the endorsement and implementation of the

Client Protection Principles amongst our partnersand their peers in the countries in which they work

Undertake in-depth Client Protection Assessments of

partners

Build awareness and strengthen capacity of our

partners in client protection

The 7 Client Protection Principles are:1. Appropriate product design and delivery

2. Prevention of over-indebtedness

3. Transparency

4. Responsible pricing

5. Fair and respectful treatment of clients

6. Privacy of client data

7. Mechanisms for complaint resolution

Universal Standards or SPMThe micronance sector, with the participation of

stakeholders representing MFIs, donors and NGOs,

has agreed on the following standards. Good Return is

working with its partners to work towards achieving these

standards:

1. Dene and monitor social goals

2. Ensure board, management, and employee

commitment to social goals

3. Treat clients responsibly

4. Design products, services, delivery models and

channels that meet clients needs and preferences

5. Treat employees responsibly

6. Balance nancial and social performance

For more information, see the Good Return website.

The benets o SPMSocial Performance Management is a powerful tool which

ensures that our partners clients are truly benetting from

MFI services. Consumer protection is central, and includes

mandates such as do no harm, and creates feedback

channels for clients to have a voice.

With effective Social Performance Management, MFIs can

prove that they are meeting their social mission, and invest

in reaching more clients who live below the poverty line.

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James Le Compte delivering a training session

in Nepal on social performance management.

Carmelita Bacasand her husband didnt earn enough to supportthree children and save or emergencies. Now,they can.

Its difcult to meet a familys needs on just $5 a day.Thats what Carmelita and her husband earn. She receives$2 a day working as the secretary to her local council,paid monthly. Her husband makes deliveries and carriespassengers on his motorcycle, and makes about $3 on agood day.

But what happens when the motorcycle breaks and schoolfees come due? Without any savings to meet these needs,Carmelita turned instead to Good Return, and took out a$125 loan. This boost means that her husband can makerepairs and keep working, and her son can stay in college.

Carmelita has fully repaid her loan, and a second one tostart a piggery. She just received a third loan to buy anotherpig, a good sign that her business is thriving!

In Nepal with Nirdhan Bank

management working on their social

performance management strategy.

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Update on Vanmai Savings & Credit Union, LaosIn late 2010, after several years of ground work by WEAL

and our afliate World Education Inc. Vanmai Savings &

Credit Union (SCU) was ofcially launched in the southern

province of Salavan, Laos. The meaning of Vanmai is new

day, and it represents the dawn of an effort to help the rural

poor of Laos access the nancial tools essential if they areto escape poverty.

Vanmai SCU was conceived in 2006 in response to the lack

of savings and credit services available to rural households.

Recognising the importance of access to nance for

economic development and poverty reduction, the goal was

to create a robust, locally owned and managed institution

that offered those in rural villages a safe place to save and

access funds to invest in their livelihoods.

The Lao central bank approved the concept, and WEAL

and World Education Inc. raised initial funding from various

sources, including AusAID, the Morawetz Social JusticeFund and the Australian public.

Vanmai SCU achieved nancial self-sufciency in 2011,

and we expect that it will soon qualify as a Good Return

partner. This will allow Australians to support Vanmai

directly with loans to its rural clients and with donations to

cover the cost of nancial education for its rural members.

Mrs Ka, Vanmai SCU memberMrs Ka (pictured below) recently took a loan for preparing

her land to plant sweet potato and peanuts, which she will

sell at the Lao Ngam market. This is the third loan she has

taken from Vanmai SCU, and having turned a prot each

time, she has expanded her plantation to cover her growing

familys living costs.

She is also saving to build a new house on her land. The

new house will be roomier and built from better materials.

Mrs Ka and her husband have 8 children.

Before Vanmai was in Mrs Kas village the only option was

money lenders who charged 10-15% interest per month.

Beyond her nancial services needs she has asked Vanmai

if they could provide agricultural training, particularly how to

reduce the pests that attack some of their crops.

Program Highlights 657 members across 42 villages in Lao Ngam

District

211 loans disbursed to the value o 341.1million kip ($41,000 AUD)

Fully covering its own operational expenses

Seventeen training courses completedby multiple members o the Vanmai SCU

sta, Board o Directors, and committeeson leadership, eective management,credit management, customer relations,gender awareness and social perormancemanagement

194 members participated in gender awarenesstraining

172 members participated in animal husbandrytraining

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Anthony Back was World Education Australia / Good

Returns rst Field Ambassador. He travelled Nepal for

several weeks during December 2011.

While in Nepal, Anthony met and interviewed Good Return

clients, hearing rst-hand how micronance and educationhad given women in small, remote communities the

opportunity to improve their own lives.

We hope to grow the Field Ambassador program over the

next few years, and this rst trip marks a positive start.

On the road in Nepal: December 21, 2011The past 2 weeks have been lled with travel. I have

crossed a large part of the Nepal visiting a number of

districts where our Good Return clients are situated from

the Terai plains which are made up of at farmlands to the

mountainous Ilam district. It required two days alone totravel up to the west of Nepal on a bus, an experience that

I will not forget any time soon!

The two main methods of transportation so far have been

motorbike and local bus. At times conditions have been

tough, but Ive been spurred on by the client feedback that

Im receiving.

Shirbati Rajbansi lives in a small village in the eastern part

of Nepal. At the end of our meeting I asked her if she had

any comments or suggestions. She said, The loan has

improved my familys life, if I did not have access to this

loan I would have to go to money lenders who only givesmall loans at extremely high interest.

Sag Rajbansi offered similar comments, saying, Without

this loan I would have to go to money lenders who have

a 36% to 45% interest fee. These and other similar

sentiments are widespread in Nepal.

Rina Majhi said that she is very happy with Nirdhan [Good

Returns MFI partner in Nepal] as they are the only bank

around. She also said that the loan was helping to make

her life a little easier and more hopeful for the future.

Wherever I have been so far with no exception I have beenwelcomed with warmth. I have now met with 43 clients. The

aim of these meetings is to monitor a section of our clients

to assess how our programs are progressing.

I think it is important for us in Australia and the developed

world to imagine what our lives would be like without

access to a bank or similar institution. How would you

buy your house or apartment? Where would you put your

savings? How would you start that business you have been

dreaming of? Life would be a lot harder.

These Good Return clients are now able to get much

needed funding so that they have the opportunity to beginto save their money safely, construct their family home

and start a business which will support their family. It is an

important step towards lifting themselves out of poverty.

The loan that Good Return gives also provides livelihood

training so that their improvements are sustainable.

Anthony Back, Good Return Field Ambassador

Our First Field Ambassador

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World Education Australias Board sets policy and strategic goals that guide our operations. The Boardis made up of not less than ve persons who are elected by the members for a renewable two-year term.Elections for the Board take place at the AGM.

Neild McIntosh, ChairmanB.A. (Actuarial Studies), M.A. (International

Social Development)

Neild has extensive executive

experience in business, and now lls

non-Executive Director roles in both

the corporate and charitable sectors.

He is on the board of equigroup

(a subsidiary of CBA), and a Vice

President of Can Assist, a charity

helping cancer patients in NSW.

David KahlerB.Sc., M.A., M.Ed, Ed.D.David is an organisational

development and training specialist

with over 42 years relevant

experience. He is a Vice President

of World Education Inc. (WEI),

overseeing new program development

and management in Europe.

Guy Winship, CEOB.Soc.Sc., B.Com (Hons), M.Sc. (Town &

Regional Planning)

Guy is a seasoned development

practitioner. He has worked with and

advised NGOs, governments and

others in the areas of micronance,

livelihoods, institutional development,

public policy and vocational training

across Africa, Asia and the Pacic.

Margaret Wright, TreasurerB.Com., FCA

Margaret is a strategic advisor with

focus on IT and business. She has run

consulting for KPMG and was a CIO

within Macquarie Bank. She currently

works for Helmsman, an IT consulting

company, and is on the board of the

National Breast Cancer Foundation.

Pamela Jonas

B.A. (Hons), M.A. (Public Policy &Management)

Pam has over twenty years of

experience in education, training, and

employment policy. Her expertise

is from industry, education and

community sectors and applied in a

variety of leadership, management,

research, and public policy positions.

Pam has spent the last year in France.

Gordon CairnsM.A. (Hons)Gordon has extensive experience

as a senior executive, most recently

as CEO of Lion Nathan Ltd. He now

serves as a non-executive director of

Westpac, Origin Energy, and Quick

Service Restaurants, is Chairman

of Origin Foundation, and acts as

a senior advisor to McKinsey &

Company and Greenhill Caliburn.

William PigottB.S., M.B.Bill is a retired international civil

servant, having worked for over 20

years with WHO as an educationalist

and international health practitioner

in Nepal and Cambodia. He is now

involved in community work, especially

Landcare, at many different levels.

James MacNeil, AlternateEd. D.

James is Vice President of WEIs

Asia Division. He has 20 years

experience in education and

livelihoods development. With WEI

since 1999, he has had oversight of

school governance and sustainable

agricultural programs in Indonesia and

India. James lives in Boston.

Board o Directors

Kate JordanB.Com, LL.B, LL.M

Kate is a corporate lawyer withextensive corporate advisory,

commercial and M&A experience.

She is Sydney Managing Partner of

Clayton Utz, a leading law rm.

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Legal statusWorld Education Australia (WEAL) is a private, voluntary,

not-for-prot company limited by guarantee. WEAL has

charitable status as a registered Public Benevolent

Institution (PBI) and has the authority to fundraise in all

States of Australia.

World Education Australia OverseasRelie FundWEAL is the Trustee of controlled entity World Education

Australia Overseas Relief Fund (WEAORF), which holds

Deductible Gift Recipient status from the Australian Tax

Ofce. The objective of WEAORF is to support economic

and social development programs to improve the lives of

the poor in the Asia Pacic region.

World Education Inc.WEAL shares its name and philosophy with its Founding

Member, World Education Inc (WEI), a not for prot,

secular, voluntary organisation based in Boston, USA.

WEI was founded in 1951 and provides training and

technical assistance through non-formal education in

over 60 countries. WEI and World Education Australia

operate independently of each other, and all dealings are

conducted on arms length terms.

ACFID Code o ConductWEAL strives to maintain the highest possible standards

of governance. WEAL supports and is committed to

adherence to the ACFID Code of Conduct as a minimum

standard for integrity, governance and reporting. All

directors, paid staff and volunteers are expected to adhere

to and uphold the Code of Conduct.

Board o DirectorsThe Board has seven members. Meetings attended during

this period: Neild McIntosh, Guy Winship, Margaret Wright,

Gordon Cairns, and James MacNeil attended four; Bill

Pigott and Pam Jonas attended two; and David Kahler

attended one.

Board meetingsThe Board met four times in the nancial year: inSeptember and December 2011, and March and

June 2012.

Board committeesThe Board has three sub-committees: the Audit Committee,

the Nominating Committee, and the Remuneration

Committee. These Committees meet as needed.

Governance

A proud shop owner in Cambodia.

Llanie, a village agent in the Philippines.

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IndependentAudit Report

Auditors IndependenceDeclaration

Concise Financial ReportFor year ended 30 June 2012

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Consolidated Statement o Financial PositionConsolidated Group

2012

$

Consolidated Group

2011

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 1,319,030 1,465,872

Trade and other receivables 34,455 21,830

Other current assets 72,827 24,347

Other nancial assets (loans) 138,114 116,135

TOTAL CURRENT ASSETS 1,564,426 1,628,184

NON-CURRENT ASSETS

Property, plant and equipment 11,816 11,641

Intangibles 41,758 80,412

TOTAL NON-CURRENT ASSETS 53,574 92,053

TOTAL ASSETS 1,618,000 1,720,237

LIABILITIESCURRENT LIABILITIES

Trade and other payables 101,112 157,170

Special purpose funding 817,639 1,210,639

Other nancial liabilities (loans) 304,305 139,416

Provisions 40,275 31,603

TOTAL CURRENT LIABILITIES 1,263,331 1,538,828

NON-CURRENT LIABILITIES

Provisions 47,073 16,465

TOTAL NON-CURRENT LIABILITIES 47,073 16,465

TOTAL LIABILITIES 1,310,404 1,555,293

NET ASSETS 307,596 164,944

EQUITYContributed equity - -

Reserve for designated purpose 306,895 227,569

Retained earnings 701 (62,625)

TOTAL EQUITY 307,596 164,944

Revenue Expenditure

Donations &Gifts 16%

AusAID

Grants 16%

Australian

Grants 32%

Overseas

Grants 20%

Investment andother income

17%

International

Programs

69%

Accountabi lity and

Administration 8%

Fundraising 6%

Community

Education 2%

Domestic Programs 15%

World Education Australia LimitedABN 39 106 279 225. The full audited nancial statements are obtainable atwww.worlded.org.au

Ratios based on the Consolidated

Statement of Comprehensive Income.

World Education Australia had no

transactions and therefore zerobalances in the following categories:

Current Assets inventories, assets

held for sale; Non Current Assets trade

and other receivables, other nancial

assets, investment property, other

non current assets; Current Liabilities

borrowings, current tax liabilities, other;

Non Current Liabilities borrowings,

other nancial liabilities, other.


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Consolidated Statement o Comprehensive IncomeConsolidated

Group

2012

$

Consolidated

Group

2011

$

REVENUE

Donations & gifts:

Monetary 286,749 220,528

Non-monetary 244,424 99,096

Grants:

AusAID 289,858 272,201

Other Australian 584,277 287,988

Other overseas 366,507 304,906

Investment income 57,670 14,676

Other income 264,363 126,723

TOTAL REVENUE 2,093,848 1,326,118

EXPENDITURE

International Aid and Development Programs Expenditure

International Programs

Funds to international programs 752,620 583,443

Program support costs 429,630 312,736

Community education 38,405 41,949

Fundraising costs

Public 87,928 103,910

Government, multilateral and private 11,047 23,339

Accountabi lity and administration 129,600 117,631

Non-monetary expenditure 244,424 99,096

Total International Aid and Development Programs Expenditure 1,693,654 1,282,104

Domestic Programs Expenditure 257,542 19,642

TOTAL EXPENDITURE 1,951,196 1,301,746

Excess of revenue over expenses 142,652 24,372

Income tax expense - -

Surplus for the year 142,652 24,372

OTHER COMPREHENSIVE INCOME - -

Total Comprehensive Income 142,652 24,372

Consolidated Statement o Cash FlowsConsolidated

Group

2012

$

Consolidated

Group

2011

$CASH FLOWS FROM OPERATING ACTIVITIES

Donations and grants 1,134,391 2,107,020Customers 206,951 259,439

Suppliers and employees (1,665,867) (1,069,763)

Interest 57,670 14,676

Net cash (used in) / provided by operating activities (266,855) 1,311,372

CASH FLOWS FROM INVESTING ACTIVITIESFurniture and equipment (4,959) (2,587)

Good Return software and website (22,395) (38,615)

Security deposit (597) (549)

Net cash (used in) / provided by investing activities (27,951) (41,751)

CASH FLOWS FROM FINANCING ACTIVITIESGood Return - net loans received from the public 164,889 107,632

Good Return - net loans paid to micronance institutions (21,979) (93,882)

Repayment of WEI loan 5,595 (69,936)

Repayment of equipment lease (541) (1,081)Net cash provided by / (used in) nancing activities 147,964 (57,267)

Net (decrease) / increase in cash held (146,842) 1,212,354Cash at beginning of nancial year 1,465,872 253,518

Cash at end of nancial year 1,319,030 1,465,872

World Education Australia had

no transactions and therefore

zero balances in the followingcategories: Bequests and legacies,

revenue from international political

or religious adherence promotion

programs, expenditure for

international political or religious

adherence promotion programs.



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Cash Movements or Designated PurposesCash available at

beginning of year

$

Cash raised

during the year

$

Interest

$

Cash disbursed

during the year

$

Cash available at

the end of year

$

DESIGNATED PURPOSESGood Return development:

AusAID Innovations Fund 150,000 - (150,000) -

AusAID annual allocation 9,456 150,000 (139,858) 19,598

Skills For Life 99,597 335,000 (342,039) 92,558

Infuse 195,523 170,985 (366,508) -

ConnectED 6,063 293,537 (246,205) 53,395

Education & Micronance Expansion 750,000 19,500 (213,784) 555,716

Small farmers livelihoods - 83,826 - 83,826

Other - 41,000 (28,454) 12,546

1,210,639 1,093,848 (1,486,848) 817,639

Good Return - Net loans transactions 95,867 285,500 (4,716) 376,651

Total for designated purposes 1,306,506 1,379,348 (1,491,564) 1,194,290

Total for other non-designated purposes 159,366 126,883 57,670 (219,179) 124,740

1,465,872 1,506,231 57,670 (1,710,743) 1,319,030

Amounts indicated as cash raised and cash disbursed during the year for Good Return - Net loans transactions represents net cash

balance movements with the programs public lenders.

Consolidated Statement o Changes in Equity

Retained

earnings

$

Reserve for

designated

purpose

$

Total

$

Consolidated Group

Balance at 1 July 2010 107,577 32,995 140,572

Items of other comprehensive income - - -

Excess of revenue over expenses 24,372 - 24,372

Amounts transferred (to) / from reserve (194,574) 194,574 -

Balance at 30 June 2011 (62,625) 227,569 164,944

Items of other comprehensive income - - -

Excess of revenue over expenses 142,652 - 142,652

Amounts transferred (to) / from reserve (79,326) 79,326 -

Balance at 30 June 2012 701 306,895 307,596

The excess of revenue over expenses from operations of the controlled entity, World Education Australia Overseas Relief Fund, istransferred to a Reserve for Designated Purposes. This recognises that the net assets represented by this reserve cannot be used

for any purpose other than providing relief to persons in a developing country certied as such by the Department of Foreign Affairs

and Trade; or, on winding up, must be transferred to some other fund qualifying under the Overseas Gift Fund Provisions of the

Income Tax Assessment Act 1997.



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Kaushila Adhikaris StoryI visited the home of Kaushila in Durgapur, Jhapa, not toofar from the Nepalese-Indian border in the south east of thecountry. Let me preface this story by saying that Kaushila isone of the funniest old ladies I have ever met! She had us institches as she told us the story of her life.

Kaushila is 63 years old. She is illiterate and comes from alarge family of 8 sisters and 2 brothers. Growing up it wasonly her 2 brothers that were provided education. She openlyshares that she was married at the age of 7 and jokes that she

was so young she cant even remember her wedding day! Butthe issue of gender is very real in Nepal. She has 1 son and2 daughters of her own. Kaushila made an effort to give herown daughters a better start in life, and is proud that both ofthem were able to attend school thanks to her business (onereached 7th grade and the other 9th grade).

Before she had access to micronance, Kaushila used toborrow money from money lenders in her village theinterest rate she paid ranged from 60% to 120% per annum.She says that one of the biggest benets of being a client ofNirdhan Bank, our partner in Nepal, is that she can borrowat a reasonable interest rate (20%). She also gets access

to training opportunities, like the Good Return-sponsoredlivelihoods training program.

She smiles as she tells me that for the rst time in her life shelearnt how to write her own name during our training program.She also learnt how to grow her business and strengthen herown business management skills.

I told Kaushila that her story would be shared with people inAustralia so they can better understand the challenges anddreams of Nepalese women. She grins and says, I have heardsomething of Australia and when I make enough money frommy business I will be going there to visit!

Kaushila makes a meagre living from the milk of her 3 cows(which were bought with a micronance loan) and selling themilk within the community. Only one of her cows is producingmilk at the moment so she can sell 2 litres of milk a day for a

total of 64 Nepalese Rupees (about AUD$0.70). Most of us pay4 times that amount for a cup of coffee each day.

Her family manage their living requirements from day to dayby relying on her sons salary (he is a truck driver) and fromthe food they grow on a small plot of land they lease.

At the age of 63 Kaushila feels she should be afforded thesmall luxury of being able to visit some of Nepals religioustemples. Her income and the needs of her family keep herfrom doing so.

I nish my interview by asking her and her husband for aphoto. She smiles while I get the shot in focus and says to me,

even if I cannot visit Australia, my photo will go there!

Kaushila reminded me today of something very important asense of privilege for life and a good sense of humour makesyou a wealthy person. And clearly age is no barrier!

James Le Compte, Micronance Program Manager

Kaushila with three of her grandchildren, who

are also in school thanks to her business!

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SupportersWorld Education Australia would like to acknowledge and

thank our partners and supporters for their commitment

and contribution. These organisations and people have

been essential to the impact and sustainability of our work

and we thank everyone for their time, funding, and talent.

Australian SupportersAusAID, Australian Council for International Development

(ACFID), Cosway Australia, Customer Community, Custom

House, Downstream Marketing, Fern Software Australia,

Harvest the Net, Macquarie University, Nuffnang, PayPal,

Porter Novelli, Travel and Associates Press & James,

WiTH Collective, XE.com.

Corporate PartnersAccenture Australia Foundation, Accenture, Clayton Utz,

Deloitte Foundation, Deloitte, Origin Foundation, OriginEnergy, and Westpac Group.

RegionalINFUSE / UNCDF, Irish Aid, Micronance Pasika

Network, Solidaridad, Stichting DOEN Foundation, World

Education Inc.

Volunteers, Friends, and DonorsAnthony Back, Anne Bissaker, Australian Communities

Fund / David Morawetz Social Justice Fund, Bradley

Abbott, Claire Lagunzad, Damian Fuller, Fionnuala Maye,

Jose Hiquiana, Lesley Hume, Mark Dawson, Monique

Alfris, Peter Van Roekel, Rachel Mulholland, Rina

Budiawan, Stephanie Sheehan, Tahnee Card Company,

Ted Harnett, the Greatorex Foundation, the McIntosh

Family, the Cairns Family, Valentina Cerutti, our online

editors, and all our generous donors.

AmbassadorsAnn Devine, Heath Francis, Shrav Malkani, Andre

Karemacher, and Paul Mitchell.

ManagementIn 2012 World Education Australia had a team of full time

and volunteer personnel in Australia and overseas. The

management team at June 2012 comprised:

Guy Winship CEO

Diane Bowles Director - Marketing and

Fundraising

Shane Nichols Program Director

Mehul Patel Financial Controller

Nicole Stanmore Operations Director

Bob Cook Director - ITNorm Sturrock Risk Advisor

Credits

Annual Report

Joni Freeman, Norm Sturrock, Di Bowles, Guy Winship,

Shane Nichols, Celine Bachelet, Colette McInerney, James

Le Compte, Sandra Carvajal.

Photos in Annual Report

Celine Bachelet, Rose Ramilo, Colette McInerney, James

Le Compte, Shane Nichols, Melodie Buendida, Bradley

Abbott, Monique Alfris, Anthony Back, YWCA NSW.

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Financial literacy students return home after a

class in the Philippines.

Clients of SPBD in Tonga march intheir annual parade celebrating the

Woman of the Year Award.

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www.worlded.org.auwww.goodreturn.org

PO Box 479St Leonards NSW 1590

Address:Suite 1, Level 7

1 Chandos StreetSt Leonards NSW 2065

E [email protected] +61 2 9114 8111F +61 2 9419 6933

World Education Australiabuilding skills, changing lives

Documents

WEAL Annual Report 2012 Draft - Final Lg