World Education Australia Annual Report, 2012-2013

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World Education Australiabuilding skills, changing lives

Annual Report 2013

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Contents

We believe no one deserves a life of poverty.Our Vision is a world without poverty where people have access to resources and opportunities to improve their own lives.

Our Mission Through microfinance and skills development we enable the poor to improve their incomes and change their lives forever.

Microfinance is the provision of financial services to the poor. Microfinance services are not just loans (microcredit), but include savings, micro insurance and money transfer products. The desire and capacity to save represent a critical step towards economic self-sufficiency.

Skills Building Literacy and numeracy are essential if human beings are to extend their natural capability. Those who want to run any type of enterprise also need basic financial literacy, to understand book keeping, budgeting, borrowing and saving options. Livelihood skills are the vocational and technical know-how that enhance a person’s productivity.

Our AccreditationThe objective of Australian Aid (formerly AusAID) is to assist developing countries to reduce poverty and achieve sustainable development. World Education Australia has full accreditation from Australian Aid.

We are a member of the Australian Council for International Development (ACFID), the peak body for organisations involved in overseas aid, and are committed to upholding its Code of Conduct. We also ensure our financial reporting complies with the standards set out by the Code.

The Australian Charities and Not-for-profits Commission (ACNC) is the regulator for the sector. We are registered with ACNC and comply with all requirements.

Because World Education Australia remits funds overseas, it is required to meet the reporting and compliance requirements of the Anti-Money Laundering/Counter Terrorism Funding Act 2006. To do this, we report regularly to AUSTRAC, the Commonwealth agency responsible for administration of the Act.

ContentsLetter from Chair and CEO ............................ 3

Where We Work & Key Activities ................... 4

Our Partners ............................................... 5

Update on Good Return ............................... 6

Sustainable Livelihoods .............................. 7

Sustainable Energy ..................................... 8

Vanmai Savings & Credit Union Update ........ 8

Social Performance Management ................ 9

Our Environmental Footprint ....................... 10

Australian Programs ................................... 11

Governance ................................................ 12

Board of Directors ....................................... 13

Concise Financial Report .............................. 14

Supporters, Management, and Staff ............. 18

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Letter from the Chair & CEO

World Education Australia Turns TenAs this letter is written, World Education Australia Ltd (WEAL) celebrates its tenth anniversary – and what a remarkable decade of growth it has been. From a start-up development agency to today’s leading provider of financial and livelihood training to the poorest in our region, we are proud of the contribution we have made in achieving our vision of a world without poverty.

Even looking back on just the past year, there is much to celebrate.

Good Return MilestonesA milestone was reached in June, when Good Return funded its 5,000th borrower, having disbursed over $1m in loans. In its three year life, this online platform has become our public face, engaging and raising money from generous Australians. A portion of their funds is initially advanced as microloans to clients of our microfinance institution partners, and repaid funds are used for training and other development activities. Then the funds work even harder, earning matching grant support from AusAID to pay for our core development programs.

Good Return offers the public a way to combine financial education and microfinance into powerful anti-poverty tools. By engaging employees, it also gives companies a great way to get involved in fighting poverty.

Looking ahead, we plan to enhance the Good Return experience. By varying fundraising options, the team hopes to raise more from corporate and individual sponsors, and so to fund more financial literacy and livelihood training.

Building CapacityThe success of our work is measured by results in the field. In six countries across Asia Pacific, the team continued delivery of our unique curriculum of education for the poor. In the year 5,637 participants completed various courses in financial literacy and small business management. These skills enable disadvantaged, often illiterate women to earn a sustainable income, and break their families out of the cycle of poverty

The team extended its capacity-building remit to include monitoring of microfinance institution social performance. This new aspect of microfinance requires institutions to look beyond just financial results. It calls for robust client protection processes, more transparency in how credit is priced, and improved service to those excluded from fair and affordable financial products. We see this as an increasingly important part of our work with partners.

We are fortunate in being able to tap the enthusiasm and skills of our dedicated team of staff, volunteers, directors, and partners. To all of them, we offer grateful thanks. We look forward to their continuing support as together we pursue our shared vision of a world without poverty.

Neild McIntosh, Chair Guy Winship, CEO

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Nepal

Cambodia

Philippines

Fiji

TongaAustralia

Kalimantan, Indonesia

Laos

Australia Cambodia Fiji Indonesia Laos Nepal Philippines Tonga

PROGRAMS

Good Return

Skills For Life

Sustainable Livelihoods

Sustainable Energy

ConnectEd

KEY ACTIVITIES

Basic literacy & numeracy

Financial literacy

Livelihoods skill building

Training team capacity building

Microfinance

Renewable energy technologies

Social Performance Management

Sustainable agriculture

MFI Capacity building

Youth employment training

Where We Work + Key Activities

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Our Partners

Microfinance PartnersWorld Education Australia works with local microfinance institution (MFI) partners to ensure funds raised through Good Return assist the poorest people in the Asia Pacific region.

We conduct a thorough selection and due diligence process with all partners. We assess the integrity of the microfinance institution and look for it to share our commitment to transparency and helping the poor.

Nirdhan Utthan Bank, NepalNirdhan Utthan, the bank “for uplifting the poor,” was established in 1998. It is a regulated institution and is now Nepal’s largest microfinance development bank, serving exclusively women clients in rural areas.

SECDEP, PhilippinesSt. Elizabeth Community Development Program (SECDEP) serves its members on the island of Panay. SECDEP provides microfinance, education, insurance, and health-related programs to its women clients.

SPBD, Fiji and TongaSouth Pacific Business Development (SPBD) runs a network of microfinance institutions in Fiji, Samoa, and Tonga. They are committed to eradicating poverty by giving women in villages the opportunity to start and grow sustainable enterprises. Of the total loans distributed, 99% go to women, 80% to clients in rural areas, and 40% to single mothers.

CUKK, West Kalimantan, IndonesiaWe began a relationship with Credit Union Keling Kumang (CUKK) during the year. Keling Kumang refers to a folk story about a ‘strong husband and strong wife’ who work together to build a prosperous community. From humble beginnings, CUKK now has over 138,000 members.

TPC, CambodiaThaneakea Phum Cambodia (TPC) is a microfinance institution with a social vision and a business orientation. TPC seeks to provide the poor with economic opportunities that transform the quality of their lives and communities. Established in 1994, 95% of clients live in rural areas, 85% of them women. More than 40% of these borrowers live below Cambodia’s national poverty line.

Other PartnersAustraliaTraditional Credit Union (Northern Territory), YWCA NSW

IndonesiaSolidaridad, Stichting DOEN Foundation

Across the RegionWe are pleased to work in Cambodia, Indonesia, Laos, and Nepal with affiliated units of our founding member World Education Inc.

Major Corporate SupportersWorld Education Australia receives significant support from these organisations. We are very grateful for their assistance.

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Update on Good Return

The Good Return website is designed to engage Australians to learn more about poverty in our backyard – the Asia Pacific, where two thirds of the world’s poor live. We connect Australians to individuals who need loans to lift themselves out of poverty.

This year has seen continued growth of the Good Return community. By its end, we reached the milestone of funding 5,000 women with microfinance loans. We ran three main campaigns: Anti-Poverty Week, Christmas, and International Women’s Day. This year also saw our first major fundraising event at the White Rabbit Gallery in Sydney, and the launch of our Career With Purpose project.

We strive to educate and engage Australians on issues such as microfinance, financial education and inclusion, sustainable energy, and other areas related to poverty alleviation. We do this through our blog, Facebook, Twitter, LinkedIn, and other social media channels. We also maintain a YouTube channel which features videos about what, where, and with whom we work. Additionally, we give presentations and conduct workshops with our partners and at universities.

Good Return has become a meaningful and personal way for Australians to make a difference in fighting poverty.

Ema TlkoimelayaGood Return’s 5,000th Borrower

Ema Tikoimaleya lives in Loa, a village at the end of the Hibiscus Highway in a very remote part of Fiji’s second largest island, Vanua Levu. Seeing her neighbours drive more than 40 km on dusty dirt roads to the next (equally small) town to buy petrol gave her the idea of starting a local distribution service.

Ema used her loan to buy a supply of petrol and containers, and with these set up her own roadside outlet. The local fishing industry benefits from having petrol nearby, and even the local carrier (bus) drivers buy it!

At 25, Ema is a mother of two youngsters. She is keen for her business to succeed, so that she can help support her family as they grow up and start school.

Good Return’s AchievementsCumulative to 30 June 2013

5,068 fully funded loans (98% to women)

Up to 95,000 family and community members benefit through flow-on effects

19,106 participants in skills training and financial literacy classes (93% women)

1,188 microfinance institution staff participated in capacity building training

99.9% of all loaned funds repaid

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Sustainable Livelihoods

World Education Australia works to ensure that access to finance creates positive outcomes for the poor. Credit, when used well, can help a family escape poverty. But to succeed in any enterprise, people need the basic business knowledge and skills to manage money effectively.

We identify training needs and build the capacity of local trainers to deliver financial education programs that focus on good money management.

Attendees learn to:

• Assess their own financial circumstances and priorities

• Seek out and analyse product and service information

• Choose products and services appropriate to personal circumstances

• Protect their rights and interests and know their responsibilities

• Set financial goals and follow a savings plan

• Build their assets

Generating sustainable income requires a range of skills. We work with local partners to develop their clients’ vocational and business skills.

We provide training in:

• Small business management: including how to assess the market, create a business plan, manage finances, and market products and services;

• Sustainable agriculture: using proven methods to improve yields and returns in an environmentally sustainable manner.

In practical terms, trainees are better able to manage their money from both a household and a business perspective – meaning they are more informed and can use services effectively to improve their lives.

Program HighlightsActive in 6 countries: Cambodia, Fiji, Indonesia, Nepal, Philippines, and Tonga

5,637 participants in skills training and financial literacy classes during the year, for a cumulative total of 19,106 since 2010 (93% women)

Completion rate of training courses is 79%

Kalati WolgramFinancial diary advocate in Tonga

Kalati’s income comes from a small shop in a roadside tent, and remittances from her daughter in America, as Kalati takes care of her children.

She participated in a class about keeping financial diaries of income and expenses. Before keeping this diary, Kalati didn’t realise how much money she received from her daughter, or where she spent it.

Now, Kalati’s financial diary helps her keep track of these funds, and has inspired her to improve her business with a permanent shop near her home. “Even my grandchildren know that I am making a record of their expenses,” she says, “because I usually write at night while the kids are doing their school work.”

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Sustainable Energy Program

Since April 2010, the Sustainable Energy program has facilitated access to energy efficient technologies among poor households. The program was funded by the Accenture Australia Foundation in the Philippines, Nepal, Cambodia, and Indonesia, and by the Origin Foundation in Tonga and Fiji.

Some of the benefits of the renewable energy technologies are:

• Less spent on fuel such as charcoal and kerosene, and on lighting from candles and batteries. This ranges from a savings of $2 to $4 a month from a fuel efficient stove, and $3 to $5 from solar lantern powered electricity. Biogas from animal waste also cuts cooking fuel costs.

• Improved household air quality, a result of less fumes from charcoal stoves and kerosene lamps, to reduce eyesight and respiratory problems.

• Elimination of fire risk.

• Reliable lighting for use in emergencies, and for needs such as mobile phone charging.

Furthermore, the program has prevented the purchase and disposal of approximately 100,000 batteries to date. Looking ahead, every year of solar power means a further 75,000 batteries will not be needed.

The program concluded in June 2013, having been rolled out to all interested partners. The distribution systems established will continue to operate in the Philippines, Nepal, and Indonesia.

Program Highlights2,042 products sold over 3 years (96% to women)

75% of surveyed clients reported being satisfied or highly satisfied with the products

305 network actors trained (84% women)

106 village agents selling renewable energy products (100% women); some agents report an increase in status in the community as respected businesswomen

Total carbon emission reduction estimated at 700 tonnes, future savings estimated at 617 tonnes CO2 per year

Update on Vanmai Savings & Credit Union, LaosIn late 2010, Vanmai Savings & Credit Union (SCU) was founded in Laongam District, Saravane Province, Laos. ‘Vanmai’ means ‘new day,’ and the savings and credit union represents the dawn of a sustained effort to provide the rural poor with access to local financial services.

Vanmai SCU was conceived of in response to the lack of savings and credit services available to rural households in Laos. Recognising the importance of access to finance for economic development and poverty reduction, the goal was to create a locally owned and managed institution that offered rural villagers a safe place to save and to borrow to invest in their livelihoods.

Program Highlights• Increase in membership from 657 to 805 members during the year.

• 16 Board and staff members received training on topics including Leadership and Delinquency Management, Internal Control and Audit and Customer Service.

• Agricultural loan risk assessment and external audit conducted.

• Program Manager Colette McInerney relocated to Laos in January 2013 to oversee this partnership and other activities in the region.

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Social Performance Management

Social Performance Management (SPM) is defined by the Social Performance Task Force (SPTF) as “the effective translation of an institution’s mission into practice in line with accepted social values.” Our SPM program strengthens the capacity of our partners to deliver and measure positive benefits to their clients. The goal is for partner institutions to become recognised as leading providers of sustainable and responsible financial services that contribute to poverty reduction.

Good Return’s SPM program has three components:

1. Poverty measurement and reporting

2. Financial consumer protection

3. Adoption of Universal Standards for Social Performance Management (USSPM)

Social Performance Management provides microfinance institutions with a management and monitoring framework to achieve goals of poverty alleviation, income enhancement, and improvement of household living standards. It offers benchmarks just as accounting data is used to measure financial performance.

We work with a variety of stakeholders including national microfinance associations, financial service providers, and government agencies. Our focus remains client-centric, as the purpose of SPM is to create positive change in the lives of the poor.

For more information, visit:

• Progress out of Poverty: www.progressoutofpoverty.org

• Social Performance Task Force: www.sptf.info

• Smart Campaign: www.smartcampaign.org

Program HighlightsPoverty measurement and reporting• Revised Nepal’s Progress

out of Poverty Index (PPI) – an objective poverty scorecard – and launched it at the 2013 Nepal Microfinance Summit

• Piloted the revised PPI with 19 financial service providers in Nepal

Consumer protection• In-depth client protection

assessments of partners in Indonesia, Cambodia, and the Philippines

• Established a partnership with the Smart Campaign to promote and implement the Client Protection Principles

Adoption of USSPM• Agreement with the

Microfinance Centre of Poland to raise awareness of the USSPM

• Joined the Social Performance Working Group Asia

• Pilot tested HIVOS’ new Green Performance Agenda Toolkit, developed by Triodos-Facet

• Capacity building of partners’ board members and senior management on poverty measurement and reporting; financial consumer protection; social performance management; and USSPM

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Our Environmental Footprint

Good Return is committed to promoting sustainable practices with all our global partners, and strives to constantly improve our own environmental performance.

This year we have measured our organisational footprint so that we can target areas for improvement. To estimate Good Return’s footprint all Scope I & II Greenhouse Gas emissions were accounted for, alongside other key indicators. The below figures are for our national office only.

2011-12 2012-13 % Change

CO2 Emissions (tonnes)

Electricity 10.4 13.8 34%

Air Travel 53.4 55.9 4%

Scope II Energy Consumption

Electricity (kWh) 11,790 15,730 34%

As Good Return continues to expand, we expect to see an increase in our total footprint. A strong focus on minimising our environmental impacts across our activities will help to ensure the intensity of our emissions – our footprint compared against the size of our organisation – stays as low as possible. Low emissions intensity combined with the purchase of ethical carbon offsets will ultimately help us achieve our goal of becoming carbon neutral by 2017.

Additionally, by facilitating access to energy efficient technology among poor households, the Sustainable Energy Program has achieved an average reduction of 617 tonnes of CO2 per year. The graph below represents the average tonnes of CO2 saved per year per technology by the Sustainable Energy Program, after 3 years of operation.

Fuel efficient stoves382.4 tonnes CO2

62%

Improved cook stoves128.6 tonnes CO2

21%

Biogas80.9 tonnes CO2

13%

Solar lanterns14.2 tonnes CO2

2%

Other technologies10.9 tonnes CO2

2%

80% of staff use public transport

to get to work

Sustainable contractors are always chosen first for events

Power saving culture by all team members

in the office

100% recycled paper used in office

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Australian Programs

ConnectEd with YWCA NSWWorld Education Australia in partnership with YWCA NSW, World Education Inc, and the Alcatel-Lucent Foundation are working to implement ConnectEd, a program that addresses the factors limiting the work and life options of disadvantaged youth in New South Wales. The program aims to reach 800 young people who are at risk of disengaging, or have already disengaged, from education.

The program utilises a range of interventions to equip students with skills to enter the world of work. The training courses cover topics including financial literacy, basic IT and internet safety, health and nutrition, rights and responsibilities at work, safe consumerism, vocational skills training, and personal development.

In conjunction with the training courses, youth can participate in mentorship opportunities with Alcatel-Lucent staff through career workshops. These on-site workshops focus on giving youth an understanding of a real work environment. Alcatel-Lucent staff provide support as mentors in financial literacy workshops, which aim to equip young people with knowledge on day-to-day money matters, from financial scams to mobile phone plans.

The program also seeks to provide work experience and work placement opportunities for out-of-school youth already disengaged from education.

Financial Literacy with the Traditional Credit UnionAustralia’s Aboriginal population experiences conditions of economic and social disadvantage. Living with unemployment, inadequate housing, and low levels of education, a majority of Aboriginal Australians are faced with great poverty.

World Education Australia is committed to addressing the issues of poverty and access to financial services here in Australia. We have partnered with the Traditional Credit Union (TCU) in the Northern Territory to deliver financial literacy training to its members. TCU has over 12,000 members and is head-quartered in Darwin. It currently operates 12 full service centre offices in very remote communities, and two service centres in Alice Springs and Katherine in the Northern Territory.

The training will equip members with the knowledge and skills to understand and use banking services, save towards a goal, use credit wisely, and manage their income and expenses. The training is delivered by Traditional Credit Union Money Mentors, who were trained by World Education Australia using materials developed with WEAL support.

Program Highlights446 youth participated in ConnectEd activities throughout the year.

109 out-of-school youth participated in programs designed to prepare them for the world of work.

204 youth received technology training ranging from internet research to résumé writing and Microsoft Word proficiency.

Program HighlightsDevelopment of Money$tories to enhance delivery of the Financial Literacy Project by using storytelling to convey key financial literacy messages.

Training of Traditional Credit Union staff trainers to deliver the Financial Literacy Project.

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Governance

Legal statusWorld Education Australia Ltd (WEAL) is a public, voluntary, not-for-profit 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 Inc.WEAL shares its name and philosophy with its Founding Member, World Education Inc (WEI), a not for profit, secular, voluntary organisation based out of Boston, USA. WEI was founded in 1951 and provides training and technical assistance through non-formal education around the world. WEI and WEAL operate independently of each other, and all dealings are conducted on arms length terms.

ACFID Code of Conduct WEAL 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.

World Education Australia Overseas Relief FundWEAL is the Trustee of controlled entity World Education Australia Overseas Relief Fund (WEAORF), which holds Overseas Aid Deductible Gift Recipient status from the Australian Tax Office. The objective of WEAORF is to support economic and social development programs to improve the lives of the poor in the Asia Pacific region.

Board of DirectorsThe Board has ten members, which includes the Chief Executive Officer and an Alternate Director.

Board Meetings The Board met four times in the financial year: In September and December 2012, and February and May 2013.

Board Committees The Board has three sub-committees: Audit Committee, Nominations Committee, and Remuneration Committee. These Committees meet on an as-required basis.

Ritadevi Niraulais happy she can grow her business.

Ritadevi and her husband Jitbhadur run a small shoe shop in their village. It makes them a modest income, but only if they have enough money to restock on the popular items that they sell. They wanted to expand their range of products, and so took out a loan of 40,000 rupees ($430 AUD) to restock and for working capital.

They are now able to earn 10,000 rupees ($110 AUD) a month, enough to cover all of their family’s living expenses and also put a little aside in savings. This was something that Ritadevi was not able to do before receiving a loan from Nirdhan Utthan Bank (our partner in Nepal).

When asked about their plans for the future, Ritadevi and her husband knew exactly what they wanted to do. “We plan to offer a wider range of products, by introducing handbags and belts to meet the demands of the market,” she said. “It is so important for us to be able to access loans when we need it, so that we can grow our business.”

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Board of Directors

Neild McIntosh, ChairB.A. (Actuarial Studies), M.A. (International Development)Neild contributes as a non-executive member to corporate and not for profit boards, as a director of equigroup (a subsidiary of CBA), and of Can Assist, a charity helping cancer patients in NSW.

William (Bill) PigottB.S., M.B., formerly FRACPBill is a retired international civil servant. He worked for 21 years with WHO as an education and public health practitioner, latterly as Country Representative in Nepal and Cambodia. He is now involved in community work, such as with Landcare in NSW.

David KahlerB.Sc., M.A., M.Ed, Ed.D.David is an organisational development and education specialist with over 40 years of international practice. As a Vice President of World Education Inc, he maintains oversight of their European programs from his base in Normandy.

Guy Winship, CEOB.Soc.Sc., B.Com (Hons), M.Sc. (Town & Regional Planning)Guy is a development expert who has worked in Africa, Asia and the Pacific. He consults and advises governments and NGOs on microfinance, institutional development, public policy and vocational training.

Kate JordanB.Com, LL.B, LL.M.Kate is a corporate lawyer with 20 years of mergers and acquisitions experience across a range of sectors including media, telecommunications and financial services. She is the managing partner of the Sydney office of Clayton Utz.

Pamela JonasB.A. (Hons), M.A. (Public Policy & Management)Pam has more than 20 years experience in education, training, and employment policy. She has applied her public policy expertise to roles in industry, education and community sectors. Pam works as a consultant and splits her time between Australia and France.

Damien WoodsB.Sc., MBADamien has had a 25 year career as a management consultant, mostly with Accenture, specialising in the healthcare field. He is a director of Accenture Australia Foundation, Smile Dental, and Australian Agricultural Technologies. Damien was appointed in June 2013.

Gordon Cairns M.A. (Hons)Gordon has had an executive career with several global companies, culminating as CEO of Lion Nathan Ltd. He serves as a non-executive director of Westpac, Origin Energy, and Quick Service Restaurants. He chairs Origin Foundation, and acts as a senior advisor to Greenhill and McKinsey.

James MacNeil, AlternateEd. D.James has worked for World Education Inc since 1999 where he has been involved in education and livelihoods development programs, particularly in Indonesia and India. He is based in Boston where he is Vice President of World Education Inc’s Asia Division.

Margaret Wright, TreasurerB.Com. FCAMargaret is a strategic advisor who, with a background in accounting, audit and IT roles at KPMG and Macquarie Bank, now focuses on technology and business process issues. Until recently, she was a board member of the National Breast Cancer Foundation.

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Independent Audit Report

Auditor’s Independence Declaration

Concise Financial ReportFor year ended 30 June 2013

World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au

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Consolidated Statement of Financial PositionConsolidated Group

2013$

Consolidated Group2012

$ASSETSCURRENT ASSETSCash and cash equivalents 1,294,561 1,319,030Trade and other receivables 3,172 34,455Other current assets 66,637 72,827Other financial assets (loans) 273,708 138,114TOTAL CURRENT ASSETS 1,638,078 1,564,426NON-CURRENT ASSETSProperty, plant and equipment 40,593 11,816Intangibles 23,556 41,758TOTAL NON-CURRENT ASSETS 64,149 53,574TOTAL ASSETS 1,702,227 1,618,000

LIABILITIESCURRENT LIABILITIESTrade and other payables 158,596 101,112Special purpose funding 470,904 817,639Other financial liabilities (loans) 465,237 304,305Provisions 35,747 40,275TOTAL CURRENT LIABILITIES 1,130,484 1,263,331NON-CURRENT LIABILITIESProvisions 56,410 47,073TOTAL NON-CURRENT LIABILITIES 56,410 47,073TOTAL LIABILITIES 1,186,894 1,310,404NET ASSETS 515,333 307,596

EQUITYContributed equity - -Reserve for designated purpose 514,355 306,895Retained earnings 978 701TOTAL EQUITY 515,333 307,596

Revenue Expenditure


Ratios based on the Consolidated Statement of Comprehensive Income (excluding non-monetary items).


Australian Grants 30%

Overseas Grants

7%

Investment & other income

25%

Donations & gifts - Monetary

20%

AusAID Grants 18%

International Programs

65%

Community Education

2%

Fundraising 9%

Accountability & Administration

9%

Domestic Programs

15%

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Consolidated Statement of Comprehensive IncomeConsolidated

Group 2013

$

ConsolidatedGroup 2012

$REVENUEDonations & gifts: Monetary 400,853 286,749 Non-monetary 170,828 244,424Grants: AusAID 377,726 289,858 Other Australian 612,238 584,277 Other overseas 135,659 366,507Investment income 31,832 57,670Other income 485,618 264,363TOTAL REVENUE 2,214,754 2,093,848

EXPENDITUREInternational Aid and Development Programs ExpenditureInternational Programs Funds to international programs 716,636 752,620 Program support costs 487,713 429,630Community education 30,996 38,405Fundraising costs Public 133,396 87,928 Government, multilateral and private 26,985 11,047Accountability and administration 164,129 129,600Non-monetary expenditure 170,828 244,424Total International Aid and Development Programs Expenditure 1,730,683 1,693,654Domestic Programs Expenditure 276,334 257,542TOTAL EXPENDITURE 2,007,017 1,951,196Excess of revenue over expenditure 207,737 142,652Income tax expense - -Surplus for the year 207,737 142,652

Other Comprehensive Income - -TOTAL COMPREHENSIVE INCOME 207,737 142,652

Consolidated Statement of Cash FlowsConsolidated

Group2013

$

ConsolidatedGroup2012

$CASH FLOWS FROM OPERATING ACTIVITIESDonations and grants 1,179,743 1,134,391Customers 549,441 206,951Suppliers and employees (1,737,935) (1,665,867)Interest 31,832 57,670Net cash provided by (used in) operating activities 23,081 (266,855)

CASH FLOWS FROM INVESTING ACTIVITIESProperty, plant, and equipment (35,120) (4,959)Good Return software and website (21,170) (22,395)Security deposit (18,176) (597)Net cash (used in) investing activities (74,466) (27,951)

CASH FLOWS FROM FINANCING ACTIVITIESGood Return - net loans received from the public 160,932 164,889Good Return - net loans paid to microfinance institutions (135,594) (21,979)Repayment of WEI loan 1,578 5,595Repayment of equipment lease - (541)Net cash provided by financing activities 26,916 147,964Net (decrease) in cash held (24,469) (146,842)Cash at beginning of financial year 1,319,030 1,465,872Cash at end of financial year 1,294,561 1,319,030

World Education Australia had no transactions and

therefore zero balances in the following categories:

Bequests and legacies, revenue for international

political or religious adherence promotion

programs, expenditure for international political

or religious adherence promotion programs.



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Table of Cash Movements for Designated PurposesCash available at beginning of financial year

$

Cash raised during

financial year$

Interest$

Cash disbursed during

financial year$

Cash available at end of

financial year$

DESIGNATED PURPOSESAusAID annual allocation 19,598 358,128 (377,726) -Skills For Life 92,558 424,904 (327,164) 190,298Infuse - 56,232 (56,232) -ConnectEd 53,395 263,873 (305,952) 11,316Education & Microfinance Expansion 555,716 - (343,528) 212,188Small farmers livelihoods 83,826 113,935 (140,659) 57,102Other 12,546 17,000 (29,546) -

817,639 1,234,072 (1,580,807) 470,904Good Return - Net loans transactions 376,651 142,329 (127,389) 391,591Total for designated purposes 1,194,290 1,376,401 (1,708,196) 862,495Other cash movement 124,740 513,715 31,832 (238,221) 432,066TOTAL 1,319,030 1,890,116 31,832 (1,946,417) 1,294,561

Amounts indicated as cash raised and cash disbursed during the year for Good Return - Net loans transactions represents net cash balance movements with the program’s public lenders.

Consolidated Statement of Changes in Equity

Retained earnings$

Reserve for designated

purpose$

Total$

Consolidated Group Balance at 1 July 2011 (62,625) 227,569 164,944Items of other comprehensive income - - -Excess of revenue over expenses 142,652 - 142,652Amounts transferred (to) / from reserve (79,326) 79,326 -Balance at 30 June 2012 701 306,895 307,596Items of other comprehensive income - - -Excess of revenue over expenses 207,737 - 207,737Amounts transferred (to) / from reserve (207,460) 207,460 -Balance at 30 June 2013 978 514,355 515,333

The excess of revenue over expenses from operations of the controlled entity, World Education Australia Overseas Relief Fund, is transferred 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 certified 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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Supporters, Management, & Staff

World Education Australia acknowledges and thanks our partners and supporters for their commitments and contributions. 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.

Australia Adobe, AusAID, Australian Council for International Development (ACFID), Custom House, Fern Software Australia, Harvest the Net, Macquarie University, ME Bank, Miss Chu, Nuffnang, Optimiste Wines, PayPal, Salesforce.com, SmartGroup, Sydney Gay & Lesbian Business Association, Travel and Associates – Press & James, and XE.com.

Corporate PartnersAccenture Australia Foundation, Accenture, Clayton Utz, Deloitte Foundation, Deloitte, Environmental Resources Management (ERM), Origin Foundation, Origin Energy, the Westpac Group, and WiTH Collective.

Regional Asian Development Bank, Microfinance Pasifika Network, World Education Inc.

Volunteers, Friends, and Donors Anne Bissaker, Australian Communities Foundation, Beck Rolls, Book of Giving / Gabby Cox, Bradley Abbott, Caroline Armitage, Claire Shelvey, David Chappell, Fionnuala Maye, Jackie Range, Jennifer Ross, Lesley Hume, Margaret Campbell, Mark Dawson, Monique Alfris, Natalie Sikand, Paul Griffin, Peter Van Roekel, Rina Budiawan, Rob Haggett, Ron Wills, Sandrine Vullierme, Sharlene Dadd, Ulla Matthiesen, Vincent Cleary, the Greatorex Foundation, the McIntosh Family, the Morawetz Social Justice Fund, the Cairns Family, our online editors, and all our generous donors.

AmbassadorsAnn Devine, Diana Ryall, Heath Francis, Shrav Malkani, Paul Mitchell, and Tharani Jegatheeswaran.

ManagementIn 2012-13 World Education Australia had a team of full time, part-time, and volunteer personnel in Australia and overseas. The management team at June 2013 comprised:

Guy Winship CEOShane Nichols Program DirectorNicole Stanmore Operations DirectorDiane Bowles Director, Marketing & FundraisingMehul Patel Financial ControllerNorm Sturrock Risk Advisor Ian Jackson Company Secretary

Annual Report CreditsJoni Freeman, Norm Sturrock, Jessie Fisher, Sandra Carvajal, Colette McInerney, Natalie Sikand, Mehul Patel, Sarah Webster, Sujinda Hwang-Leslie

Photos in Annual Report Joni Freeman, Shane Nichols, Colette McInerney, Melodie Buendida, SPBD, Celine Bachelet, YWCA NSW, Monique Alfris, and Nirdhan Utthan Bank Ltd.

Complaints ProcessPlease note that all complaints, questions or comments will in the first instance be actioned by a Good Return team member within 48 hours.

If this is not appropriate, or you are unsatisfied with their answer, please call us on +61 2 9114 8111 during business hours (9 am to 5 pm) Monday to Friday. Upon request, you can ask to speak to one of our senior executives. That manager will make sure your concern is addressed in an appropriate , discreet and confidential manner. You can be assured that every effort will be made to find a satisfactory resolution to your complaint.

ACFID Code of ConductWe are a signatory to the Australian Council for International Development (ACFID) Code of Conduct. Details of the provisions of the Code can be viewed in the ACFID website at www.acfid.asn.au. In the event that your issue entails a potential breach of the Code, you have the option of escalating it to the ACFID Code of Conduct Committee. Their contact details are in their website under the Complaints tab.

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Apsara Timalsina of Nepal is the mother of two. Her husband, Ramesh, is a teacher at the local high school. They are financially secure, and have a comfortable home which easily accommodates them and their two children, Nishma (14) and Nishchal (10). Apsara is the ‘centre chief’ for her borrowing group, and has earned the respect of other women for her success in business.

But her life wasn’t always like this. A few years ago, Apsara was too shy to get to know her neighbours well, and was embarrassed because her family had very little. Even though her husband had a steady job, his meagre salary couldn’t cover all of the household expenses. With two growing children and day-to-day costs that weren’t being met, she was looking for another way to provide for her family. They were so anxious about money that taking the children out of school seemed the only option. Apsara and Ramesh looked into borrowing from a moneylender, but were worried and discouraged by high interest rates.

Then two things happened that turned everything around for the family, and especially Apsara. Apsara received a micro-loan from Good Return to purchase a sewing machine. The sturdy, black machine in Apsara’s deft hands meant that business was soon thriving. From her tailoring business, Apsara saved enough money to repay her loan and apply for an even bigger one – this time to start a small grocery shop.

Her village’s need of small commodities – and her knowledge of which ones to trade – have made Apsara’s grocery quite successful. She recently took out another loan through Good Return to purchase more supplies for her tailoring shop, so both businesses are thriving. She proudly told us that she can now meet her family’s each and every necessity.

Apsara participated in educational classes provided by Good Return. She said that the most useful classes were about business planning, book keeping, marketing, and keeping a clean environment for customers. She enjoyed the opportunity to speak frankly with other women in her village about business and money management.

She became very serious when we asked what life would have been like without her first microfinance loan. “We were in a very low position financially. It was such a problem to just pay the school fees. We may not have even had a proper home.”

Now, that home is not only secure, but receiving upgrades, too. Apsara recently installed a solar home system, giving her family affordable light year-round. Families in Nepal usually use kerosene to light their houses, as grid electricity is unreliable and very expensive. With solar, there will be no more indoor pollution, and the light is much brighter, making reading and studying much easier for her children.

Apsara’s relaxed smile in these photos is a testament to how things have turned around for her family, and all because of an affordable microfinance loan and some financial education. There have been so many benefits, she said: “It provides both name and fame in the community. It provides not only the prestige but also the income to promote my family economically. Now there is no problem to uplift my family. I can even help other families when they have problems.”

Case Study: Apsara Timalsina

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World Education Australiabuilding skills, changing lives

PO Box 479St Leonards NSW 1590

Level 1, 174 Willoughby RdCrows Nest NSW 2065

E [email protected] +61 2 9114 8111

www.worlded.org.auwww.goodreturn.org.au

This Annual Report is printed on recycled paper. Copies of this and other World Education Australia Annual Reports can be optained from our website.

Documents

World Education Australia Annual Report, 2012-2013