CORDAID NAAM BU
CORDAID ANNUAL REPORT 2015 GLOBAL GOALS, LOCAL SOLUTIONS CORDAID 2015 ANNUAL REPORT
CONTENTS
message from the ceo...... 3 about cordaid...... 5 what we did in 2015...... 6
Humanitarian and emergency relief...... 6
Healthcare...... 8
Education...... 12
Security & Justice...... 13
Results Based Finance...... 15
Economic opportunities and work ...... 16
Building resilience: sustainable development...... 19
Lobby & advocacy...... 20
Cordaid in the Netherlands...... 21 how we work...... 23
What our clients want...... 23
Flourishing Community Index ...... 24
Working with partners...... 25
Communication, raising awareness & engagement ...... 26
How we manage setbacks...... 27
Learning from complaints...... 29 how we did in 2015...... 30
Organizational aims ...... 30
Fundraising & spending...... 30 strategy for continuity ...... 32 our people...... 36 supervisory board report...... 39 how we are governed...... 41 financial statements ...... 42 global reporting initiative ...... 84
2 MAY 2016 © CORDAID message from the ceo CORDAID 2015 ANNUAL REPORT
MESSAGE FROM THE CEO
It has been quite a year. Conflict has continued in countries like Syria and we have seen the eruption of violence in Burundi and the Central African Republic. In spite of a cease-fire, South Sudan remains volatile. And in northern Cameroon insurgents continue to terrorize local communities. The Netherlands-based Cordaid is working in all these and many other fragile and conflict-affected states, bringing humanitari- an relief and essential services like healthcare and education to millions of people.
At the end of 2015, the Millennium Development Goals gave way to the 17 Sustainable Development Goals (SDG) or Global Goals that aim at a more inclusive approach to ending poverty, promoting peace and security and tackling climate change. The United Nations has put its full support behind these Global Goals. Last summer, agreements were reached in Addis Ababa on financing mechanisms for development with explicit provisions for fragile and conflict-affected situations and states (FCAS). With a strong endorsement from Pope Francis in the Laudato si’ Encyclical, climate is now also recognized as a major challenge and, in addition to the most recent agree- ments in Paris, has now been included in the Global Goals. Cordaid will be partnering with the Dutch Ministry of Foreign Affairs on climate-related issues from 2016.
G4-1 It has been quite a year for Cordaid as well. A new development cooperation land- scape, including the Global Goals and the ending of guaranteed government funding, stimulated a strong response from us. We have created a strategy based even more on what we do best – working with local people in fragile and conflict-affected states and situations. We have right-sized the organization into a focused and flexible imple- menting partner for international and governmental donors, making the transition from grant-giver to grant-seeker, and retained the loyalty of close to 300,000 individ- ual donors in the Netherlands. We feel recognized as the professional implementing power that gets the job done. All our private, governmental and institutional donors understand the unique proposition we bring to the table – our ability to combine humanitarian and emergency relief with real, long-lasting development cooperation on security, healthcare, education and the economic growth essential to creating jobs. Organizations like Cordaid are often the only support present in fragile and conflict- affected areas. So we will continue to provide help and opportunities for people in the most vulnerable situations and communities. Our goals remain to continue and scale up our work by seeking and finding the funding necessary to help local people resolve local challenges and build their own flourishing communities.
As we strengthened our focus on fragile and conflict-affected states during 2015, we tied our programs and projects to the Global Goals. The organization has emerged from this process more motivated than ever as we make a difference to the lives of millions of people. Our goals are global, our solutions are local. However, this greater focus has also meant withdrawal from a significant number of programs and countries although we remain present in many of those countries through our investment funds. Sadly, we have had to say goodbye to a large number of colleagues who have worked tirelessly to eradicate poverty and put in place such basics as healthcare and education. Our wholehearted thanks go to all of them.
There was good news from Sierra Leone following the terrible Ebola epidemic during which Cordaid served as the action president on behalf of the Netherlands Cooperating Aid Organizations (SHO). Although the epidemic is officially over, Cordaid is still there, working on recovery projects to help with food security and getting healthcare and education back on track (see page 10). As noted, the news is less good from Burundi (see page 27) and the Central African Republic where new violence meant hundreds lost their lives and we were forced to evacuate our office in
MAY 2016 © CORDAID 3 CORDAID 2015 ANNUAL REPORT
the capital, Bangui. We are now back at work, building hopefully on the Pope’s visit and attempts at reconciliation. In December in Ethiopia, I saw for myself the effects of drought. Millions of people are trying to manage on the 20 liters of water per family per day that with our support, partner APDA is able to truck in. More must be done now – these people cannot wait.
The Syrian humanitarian disaster is driving millions of refugees to Europe and has also brought home very clearly that (the results of) conflict cannot always be kept far away from our own backyards. On the Greek-Macedonian border, our Caritas partners are distributing basic essentials, such as soap, tarpaulins and other emergency goods, and including diapers for the babies. Following my visit that was given extensive media coverage, we received numerous calls and emails from people asking how they could help. Their contributions also enabled us to increase and broaden the support we are giving to refugees (and host communities) in Northern Iraq, Lebanon, Turkey, Jordan and in Syria itself. Once again, all our close to 300,000 Dutch individual donors came through for people in need. We are very grateful to them.
With our Caritas partners, we also provided much-needed help in Nepal following two devastating earthquakes. Our focus is on education and sanitation in some of Nepal’s most remote rural areas. Besides our humanitarian programs that provided relief to over 1.2 million people, during 2015 Cordaid was involved in more than 1,200 projects in 46 countries. I would like to thank all of our partners for their profession- alism and commitment because together we have achieved some incredible results. Another 50,000 children in the Central African Republic will benefit from education through our Results Based Finance program, joining close to 200,000 children in other countries in Africa. We have made basic healthcare services accessible to over six million people in seven African countries. The next step is to add other life-saving components, such as the cervical cancer screening that will help eradicate this killer in Ethiopia. Throughout the annual report we offer a lot of information on what our programs can achieve. Our pioneering Open Data available to all via the website monitors each individual project. I hope all this information helps readers under- stand what we do. There are certainly challenges ahead. We are ready for them.
Simone Filippini Chief Executive Officer
The annual report and financial statements were drafted by the Board of Directors and adopted by the Supervisory Board on May 25, 2016.
G4-32 Over 2015, we are reporting according to the G4 ‘in accordance “core”’ standard. G4 Throughout the annual report, you will find the G4 label that shows where we have included G4 compliant information. At the end of this annual report (page 83), you will also find an overview of the G4 Index that lists all aspects covered and our compliance with them.
In line with G4 requirements, we state that: ‘This report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines.’
4 MAY 2016 © CORDAID About Cordaid CORDAID 2015 ANNUAL REPORT
ABOUT CORDAID
G4- Cordaid, the Netherlands-based Catholic Organization for 1/3 Relief and Development Aid, has been providing emergency ‘The urgent challenge to protect our common home includes a concern relief and fighting poverty and exclusion in the world’s most to bring the whole human family together to seek a sustainable and fragile and conflict-affected situations for more than a integral development, for we know that things can change… Young century. All our actions are rooted in and inspired by Catholic people demand change. They wonder how anyone can claim to be social teachings: human dignity, solidarity, subsidiarity and building a better future without thinking of the environmental crisis care of the common good. Based on these points of departure, and the sufferings of the excluded. I urgently appeal, then, for a new we have added social and economic justice and the promotion dialogue about how we are shaping the future of our planet…’ of peace to help us achieve in our mission: building flourish- Pope Francis, Laudato si’ Encyclical, May 2015. ing communities.
What we do Through our work we invest in the capacities and talents of societies so that we can create programs based on what is people who are marginalized, excluded and often discrimi- important for them. Then we design and implement programs nated against. We believe that peace, security, social and to have a significant and long-lasting effect on families, economic development go hand-in-hand and reinforce each communities and societies. Cordaid works closely with client other. We are usually active and present in regions that have beneficiaries, funding and implementing partners to increase been shattered by (geopolitical) conflict or natural disaster. the resilience and self-reliance of local communities. As a Humanitarian aid (shelter, food and clean water) is therefore founding member of the International Catholic organization one of Cordaid’s long-standing areas of expertise. There are for social justice (CIDSE) and Caritas Internationalis, we can three cornerstones for our involvement in systemic change also count on the support of local parishes in the poorest places and institution building in fragile and conflict-affected areas: on earth. In addition to providing emergency and humanitari- ▪▪ providing a stable and secure environment (security and an relief, in 2015 we focused on healthcare, education, security justice); and justice, women’s leadership, food security, investments, ▪▪ restoring basic public services (health, education, entrepreneurship, extractives and projects in the Netherlands. government services); and ▪▪ creating sustainable economic opportunities. Raising awareness and engagement We work with local civil society organizations to create and For more than 100 years, we have been able to rely on the implement programs based on equal rights and opportunities, continuing and long-lasting support of the Dutch people. both legal and in practice. Our programs are designed to give Communication, raising awareness and engagement among access to services and economic opportunities, especially for our support base is key here. We are very active in developing women and young people. Cordaid is active across the globe information tools, providing the latest news and communica and we do a lot of work on poverty and exclusion in the ting via social media. Accurate, up-to-date information for Netherlands, our home base. Through our focus on fragile our support base on programs and projects is increasingly and conflict-affected countries combined with our work in published online using the standard developed by the the Netherlands, we are a unique organization. International Aid Transparency Initiative (IATI). In 2015, close to 300,000 Dutch people supported our work. We raise funds How we work from government bodies, such as the Dutch Ministry of Foreign Today, one quarter of the world’s population, or 1.2 billion Affairs, the World Bank, the Global Fund, the United Nations people (World Bank), lives in societies affected by fragility, and the European Union. Other institutional donors also conflict and violence. We engage with local people in these finance our programs.
CORDAID IN NUMBERS - 2015
>1,200 €145 .4 MLN >1 2. MLN projects funded total amount spent directly on programs people received humanitarian relief
46 6 MLN countries people with access to basic healthcare and >1,000 >220,000 number of partners with access to education through our programs
MAY 2016 © CORDAID 5 CORDAID 2015 ANNUAL REPORT What we did in 2015
WHAT WE DID IN 2015
A flourishing community offers its members access to opportu- In practical terms, this means we are there when disaster, nities so that they can realize their potential to participate in either man-made or natural, strikes, providing humanitarian social, economic, cultural and spiritual life. There is peace and relief, for example in countries that are managing the inflows a social contract between citizens and the state. In fragile and of refugees from Syria and other conflict areas. This requires G4-8 conflict-affected situations (FACS), some or even all of these specific and immediate responses. However, we are also there factors are absent. In other words, the social contract between for the longer haul once the initial emergency is over. Cordaid’s citizens and the state is broken. Cordaid’s mission is to contrib- programs are providing long-term support in recovery efforts, ute to the structural social change and transformation needed known as ‘build back better’ and ‘resilient recovery’, in countries to build and/or fix that social contract. That is why we have like The Philippines, which is still recovering from typhoon built decades of experience in sectors that are indispensable Haiyan, and Nepal following two devastating earthquakes. We G4-4 for flourishing communities: Healthcare, Security & Justice, lay foundations for recovery by supporting healthcare, education Child & Education, Food Security, Urban Matters, Women’s and security. Economies need stimulation so we are there to Leadership, Extractives, Investment in entrepreneurship and, help entrepreneurs with finance so that they can help provide importantly, Disaster Risk Reduction. jobs. Strong governance is essential to re-establish trust between citizens and the state. And we work on building resilience so that the underlying infrastructure is strong enough to prepare for, manage and overcome future setbacks.
HUMANITARIAN AND EMERGENCY RELIEF IN 2015
>1 .2 MLN 45,000 19,000 people benefitted from Cordaid hot meals per week in besieged Aleppo, families provided with drinking water humanitarian aid/disaster risk reduction Syria delivered every day in drought-striken through: Afar State, Ethiopia 14,000 >700 food and emergency packages per week 300 projects in to refugees on Greek/Macedonia border typhoon-proof homes and community buildings completed in Coron, 22 15,000 the Philippines countries victims of the Nepal earthquake provided with temporary homes, schools and 700 health centers, including clean water and partners sanitation
WHERE WE WORK
GREECE AFGHANISTAN SYRIA INDIA NEPAL LEBANON BANGLADESH
HONDURAS CENTRAL SOUTH HAITI AFRICAN REP. SUDAN GUATEMALA PHILIPPINES EL SALVADOR ETHIOPIA KENYA UGANDA DEM. REP. OF THE CONGO MALAWI INDONESIA ZAMBIA Total spent in 2015:
>€42 MLN (2014: >€26.3 mln)
6 MAY 2016 © CORDAID What we did in 2015 CORDAID 2015 ANNUAL REPORT
Syria: We are supporting refugees from the Syrian conflict in men and companies have been trained in management and Greece, Macedonia, Serbia and Austria by providing food, bookkeeping and have set up their own enterprises, determin- sleeping bags, rain protection and personal hygiene basics, ing their own prices and creating new market opportunities. In such as soap and diapers. Just as important is the psychological this traditionally fishing-based region, fishermen and women support we are offering to victims of trauma. As experts in have successfully taken up vegetable farming, improving their conflict-affected regions, unsurprisingly, Cordaid is also diets as well as their income. For more details on this project, working with Caritas on the reception of refugees from the please visit Open Data, www.cordaid.org/en/projects/resilient- conflict in host communities in Northern Iraq, Lebanon, Jordan communities-in-coron/update/13774/ and Turkey. We are also just as engaged in Syria itself which is
‘We turned the humanitarian system upside down: locals were in ‘As large gatherings could easily become a target for armed groups, charge, we only facilitated. And they bounced back just like bamboo, meals are delivered through a network of local partners…’ after utter devastation…’ a field-kitchen worker in Aleppo, Syria. James Morgan of Cordaid’s Haiyan Resilient Recovery Program, The Philippines. now entering its sixth year of civil war and having suffered through a hunger winter, especially in besieged cities. To Disaster dilemmas alleviate suffering in the governorate of Aleppo, one the most Climate change, intensified by El Nino, has caused the worst conflict-ridden zones of Syria, Cordaid-supported kitchen drought in Ethiopia in 30 years. The last real rain fell two years teams provide 6,300 hot meals a day. The focus is on the most back. Since then, drought has destroyed harvests and forced vulnerable: people who are displaced, families headed by many of the local people to migrate. Those that remain are widows, the disabled and households with many children. completely dependent on water aid. CEO Simone Filippini visited Cordaid partner APDA that organizes the water supply in the Kori district of Afar State. Every four days, a water truck visits a ‘Before, 5% of students brought water from home; the rest of them did number of communities, bringing 150,000 liters of water that not drink at all during the day. Now, 2,461 students and 185 teachers are then desposited in a reservoir. A woman guard watches over have access to clean drinking water. Fantastic!’ the distribution: every family receives 20 liters in a jerry can Shiva Rama Chalise, Nikkanta Higer secondary school, Nepal. each day. The Ethiopian government is doing what it can to prevent the oncoming catastrophe. But to turn the tide of widespread famine, similar to that of the 1980s, the interna- Nepal: Within days of the earthquake, Cordaid had made tional community will rapidly need to lend a hand. It requires emergency humanitarian funds available to partners Caritas a major international shift on climate change and extensive Nepal and Caritas India. Our focus was on education and support on the ground in Ethiopia. Half measures are not enough. providing clean water. The earthquake damaged 1,500 schools. To continue classes, temporary buildings had been erected without toilets or water supply. Cordaid Mensen in Nood has ‘Drought is a slow onset disaster and usually attracts attention too ensured more than 20 schools have been equipped with clean late. Humanitarian response often also follows late. That’s why it is drinking water and lavatory facilities. The Caritas Nepal team necessary to continue to try and link relief with development and headed into rural areas, bringing emergency shelter to families recovery and to prepare for contingency activities. And that’s why ten in some of the more remote villages. years ago Cordaid and partner organizations developed the Drought Cycle Management approach, now expanded into the Community Managed Disaster Risk Reduction approach. This allows communities ‘When the earthquake struck the roof of our house collapsed. I was to take ownership of project activities that will reduce their vulnerabili- with my four-year old son. We were trapped in the rubble and waited ty to threats like a drought and that will strengthen their resilience…’ until the shocks subsided when the neighbors came to rescue us. For the Ton Haverkort, Country Director, Cordaid Ethiopia. first few days after the quake my son remained terrified – he could not eat or sleep… We were sleeping under a small piece of plastic. I think the tarpaulins are God Sent – I hope there are enough for everyone…’ Risk Reduction Surmala Cholagai of Panchkal, Nepal. The Luvungi area of the Democratic Republic of Congo (DRC) has the opposite problem to Ethiopia: flooding. With local partners, including Caritas Uvira, Cordaid is developing a Resilient recovery Community Managed Disaster Risk Reduction program in Philippines: Following typhoon Haiyan in November 2013, a eastern Congo to tackle recurrent flooding. Working together, Cordaid team went to Coron, in the eastern province of local people – many of them long-term internally displaced Palawan. Working with local communities we started what we – have dug 1,700 meters of rainwater runoff canals. Small trees call a ‘resilient recovery’ program. The village now has 201 have been planted close to houses and on the surrounding hills typhoon-proof houses that were co-designed with villagers and to prevent further soil erosion, the main cause of flooding in built by them. Using the same approach, community halls, rain the area. Local partners will provide local people with informa- retention systems and dozens of other community structures tion and support on preventing erosion in the long-term to have been erected. People who used to be controlled by middle- ensure sustainability of the new flood defenses.
MAY 2016 © CORDAID 7 CORDAID 2015 ANNUAL REPORT What we did in 2015
Sharing track-record Community Managed Disaster Risk Reduction (CMDRR) is a Upper Nile, Unity, Western Bahr el Ghazal, Western Equatoria, process of bringing people together within the same communi- Central Equatoria and Eastern Equatoria States and in the ty, or between neighboring communities. This enables them to Abyei Area. In 2015, we put all this expertise and experience collectively address a common disaster risk and to develop risk together in: Our Peace, Our Future: experiences from Community reduction measures together. The Cordaid disaster risk reduc- Managed Disaster Risk Reduction approaches in South Sudan. The book tion program in South Sudan is aimed at building disaster can be freely downloaded from our website: www.cordaid.org/ resilient communities, especially on issues such as inter/ media/publications/Cordaid_CMDRR_in_SSudan.pdf intra-community conflict, drought and flood risk reduction, These are only some of our more than 700 humanitarian/ depending on context. In South Sudan, where we have been disaster risk reduction programs and projects. A full overview working for two decades, we currently have projects in the can be found on Open Data.
G4-8 HEALTHCARE IN 2015
6 MLN 165 30,000 people* have access to basic healthcare partners women now receiving SRH services in through Cordaid’s RBF programs Zimbabwe and a 600% 2 MLN increase in safe deliveries in Burundi 15% people in Africa’s Great Lakes Region following the introduction of RBF increase or receive Sexual and Reproductive Health Services from 30 to 50% 18,000 increase in the number of people with more women giving birth either in 450 access to healthcare in Central African hospital or with a trained birth attendant health centers Republic 226 projects
*calculation based on populations in countries where Cordaid has introduced RBF
WHERE WE WORK
AFGHANISTAN
BANGLADESH
SUDAN SOUTH HAITI CENTRAL AFRICAN REP. SUDAN
SIERRA LEONE ETHIOPIA UGANDA GHANA RWANDA CAMEROON BURUNDI CONGO TANZANIA DEM. REP. OF MALAWI THE CONGO ZIMBABWE ZAMBIA
Total spent in 2015:
>€57 MLN (2014: €68.6 mln)
8 MAY 2016 © CORDAID What we did in 2015 CORDAID 2015 ANNUAL REPORT
Universal healthcare (UHC) is a primary goal for Cordaid. Next generation The challenge is how it can be achieved in fragile and conflict- In addition to RBF aimed as furthering UHC, we focus specifi- affected regions. In late 2014 and based on our experience in cally on women’s and young people’s health often through seven countries where Results Based Finance (RBF) has been Sexual and Reproductive Health Services (SRHS) programs. For adopted as national health policy, we published an extensive example, our ‘Next Generation’ program on rights and services report that identifies ways and means. It can be downloaded provides an integrated approach for (young) women and men in via: www.cordaid.org/media/publications/Cordaid_Universal_ Burundi, Rwanda and DR Congo. One of the main goals is to health_coverage_in_fragile_states__Research_report_2014.pdf. reduce the staggering number of unwanted teenage pregnan- One thing is clear: there is no ‘one size fits all’. Each country cies, unsafe abortions and maternal deaths, which is a massive has to start with its existing health systems and make assess- problem for women and girls in all three countries. To date, the ments of what works and what does not, identify improve- program has reached two million people who are now receiving ments and upscale progress. RBF is an ideal tool to support this improved quality care from 450 health institutes. As part of the development (see sidebar), as we have demonstrated in a Next Generation program, we continue to work with Healthy number of countries. Entrepreneurs, a young, creative and innovative company fully
RESULTS BASED FINANCING RBF in summary ▪▪ Innovative financing method Results Based Financing (RBF) is designed to improve access ▪▪ Performance related financing and quality of healthcare and other services, such as educa- ▪▪ Stimulates social entrepreneurship tion and security, for the poorest and most vulnerable people, ▪▪ Controls performance the majority of whom are to be found in fragile and con- ▪▪ Cost efficient flict-affected areas. Cordaid pioneered this approach whose ▪▪ Helps more people point of departure is a direct link between funding and results. Contrary to more traditional approaches, where Results from RBF funding goes into a general financing system, RBF service Cordaid first launched RBF in sub-Saharan Africa 15 years providers receive payments only after their output and ago and we now work on RBF for healthcare in more than 10 outcomes have been verified. But RBF is more than just a countries, introducing the concept most recently in Malawi. change in the way healthcare and other service providers are Over that time, we have been able to achieve significant paid - it is a reform strategy that is built on many years of positive impacts. These are only some of the highlights – experience in strengthening initially healthcare and now please see www.cordaid.org/en/topics/healthcare. other systems. It introduces checks and balances, accounta bility, motivates staff, promotes entrepreneurship and ▪▪ In the two years since its introduction in the Central involves private not-for-profit, private for profit and public African Republic, the number of people with access to sector parties, as well as the communities themselves. healthcare has increased 30 to 50%, depending on location, In fact, in most of our RBF programs, ‘customer satisfaction’ while the cost has fallen 25-50%. is a key quality indicator. ▪▪ In Rwanda, a World Bank impact study showed that the number of safe deliveries in healthcare facilities was 23% higher in RBF districts than in districts without RBF, while child preventive care visits increased a staggering G4-8 footprint of cordaid rbf in africa 132%. In addition, out of pocket expenditures decreased by 62%, indicating that RBF makes healthcare more accessible for the poor. AFGHANISTAN ▪▪ In the Democratic Republic of Congo, safe deliveries rose
CENTRAL 97% in RBF facilities compared to non-RBF facilities while AFRICAN in Burundi this number increased between 100 and 600% REPUBLIC SOUTH in just 10 months of RBF implementation in three SIERRA LEONE (CAR) SUDAN provinces. ETHIOPIA ▪▪ A recent review of the Zimbabwean RBF program shows CAMEROON UGANDA clear upward trends in RBF districts for antenatal care and REPUBLIC OF CONGO (RC) RWANDA BURUNDI institutional deliveries. The full program focuses on better DEMOCRATIC REPUBLIC TANZANIA OF CONGO (DRC) access to good quality medical care for mothers and MALAWI children at 1,500 hospitals and health clinics. The total ZIMBABWE target group is 3.2 million people. Results so far show 30,000 women receiving Sexual and Reproductive Health n Cordaid services and a 15% increase or 18,000 more women giving n Health RBF birth either in hospital or with a trained birth attendant. n Education RBF n Health and Education RBF n Health, Education and Security RBF 2015
MAY 2016 © CORDAID 9 CORDAID 2015 ANNUAL REPORT What we did in 2015 focused on business development with social impact. In 6 MONTHS, 6 FACTS & FIGURES Rwanda, DC Congo and Burundi, Healthy Entrepreneurs and Cordaid support young people to provide peer education on SRH “Results Based Financing in Sierra Leone” in market places and youth centers. The idea is to help young people protect themselves against HIV/Aids and unwanted During and now in the aftermath of the Ebola crisis, pregnancy – Burundi has one of the highest teenage pregnancy Cordaid is working to reinforce health systems through rates in the world. our RBF PLUS program, and with considerable success.
THE IMPACT OF INTRODUCING SHR SERVICES
Before After first Results implementation 18 months of implementation 441,180 260 (2013-2014) Number of patients treated, tested, Number of health professionals vaccinated and referred. trained to improve and strengthen Young people that 76,000 526,000 5x increase the health system. received sexuality education
Girls/young 309,000 436,000 40% women that have increase used any SRH x 8 x2 service Investment increase in health facilities Quality of ‘hygiene, infection control (€268,000 total Results Based Finance and waste management’ doubled, payments). reaching an 84% satisfaction rate.
‘Deaths related to Sexual and Reproductive Health & Rights out Confidence Transparency number deaths from other causes in fragile settings. Over half of all In the Ebola context, the population The RBF program improved data maternal, newborn and child deaths occur in around 50 countries did not trust the formal health system. quality and therefore transparency. categorized as fragile states.’ That led to low levels of utilization For example, the gap between ‘reported’ of services. The RBF program reestab- and ‘actual’ consultations fell from Yvonne Stassen, Deputy Director for the Social Development at the lished confidence as the number of 30.5% in May to only 0.3% in September. Dutch Ministry of Foreign Affairs speaking at first symposium on general consultations increased 135%. ‘Sexual and Reproductive Health and Rights in fragile environments: turning challenges into opportunities’, co-sponsored by Cordaid in ‘The RBF PLUS here in Bombali has helped us immensely to get December 2015. patients back to the clinics after the drop in services during Ebola,’ Christiana Daphne Decker, midwife and clinic supervisor, Bombali, Sierre Leone.
Conflict care Although there is a lot of positive progress to report in 2015, we have also had to deal with a number of major issues. In the extreme north of Cameroon, our healthcare services have been ‘We put a lot of effort into gaining the trust of the communities, seriously disrupted by the Boko Haram terror organization. keeping open lines of communication. Ideally we want it to be a logical It is estimated that one quarter of all healthcare centers and step for everyone to have their babies vaccinated. It should come hospitals in the far north no longer functions because of the naturally. And sometimes we even have to gain the trust of rebel ongoing violence. Using RBF, Cordaid and its local partner groups. We have to show them we do not pose a threat when we organization, APROSEN, supports dozens of small healthcare transport vaccines. Medical goods can be mistaken for other things, centers and a number of hospitals in this area. Until early 2015, like weapons. People in Afghanistan, for example, have been killed by the numbers of assisted births, child inoculations and pre- and rebels during such transport’ postnatal consultations in these healthcare centers had been Remco van der Veen, Director Programs, Cordaid. increasing. More recently, they have been decreasing. Pregnant women are afraid to come to the centers, preferring instead the old-fashioned way of giving birth at home, often in unsafe and unsanitary conditions. We have set aside additional funding Innovations update for APROSEN so that it can improve security of the healthcare During 2015, we began the pre-clinical trials of the ‘Baby centers, although one has already been forced to close. Schools Viewer’, a low-cost, portable ultrasound aimed at radically and markets have also closed. Around 32,000 people have fled reducing maternal mortality. Usually, ultrasound technology to a refugee camp and thousands of others have sought refuge can cost anywhere between US$ 10,000 and US$ 100,000. Delft elsewhere. Cordaid, APROSEN and local Caritas organizations Imaging Systems, that developed the Baby Viewer, has already are looking for ways to contribute to providing shelter for the created a prototype and estimates that in the longer term it victims of the violence, refugees and malnourished children. could be manufactured for around US$ 500 by using recycled People with HIV need extra care. The violence is making it plastic waste. difficult to keep track of these people whose medication is of life-or-death importance.
10 MAY 2016 © CORDAID What we did in 2015 CORDAID 2015 ANNUAL REPORT
Worldwide, one woman dies of cervical cancer ever two minutes. MALARIA AND CHOLERA EPIDEMICS Around 85% of women affected live in developing countries. CONTROLLED IN SOUTH SUDAN And in Ethiopia, breast and cervical cancer are the biggest and usually silent killers. Unlike many cancers, cervical cancer can be prevented quite easily. A woman can be screened and treated at minimal cost and maximum impact on a single visit on a single day. So that is what we are doing in six regions in Ethiopia. The introduction of cancer screening represents a Primaire kleur next step up from basic healthcare. With the support of the Bristol Myers Squibb Foundation, the Global Leaders’ Council Secundaire kleur and Pink Ribbon Red Ribbon, Cordaid launched a program at the start of 2015. The goal is to reduce mortality from breast Skintones
and cervical cancer by 25%. Extra
In spite of a peace agreement, the fighting in the vulnera- This is how we are working: ble South Sudanese state of Upper Nile continues and whole areas are cut off from access to food aid and medical IMPACT care. A cholera outbreak in mid-2015 put further pressure on the limited healthcare services but is now under control only to be followed by a malaria epidemic. At the height of the crisis, November, over 700 people made their way to our first-aid post, three times more than usual. We were able to treat all comers and only one life was lost. Patients SEE TREAT were able to return home with durable mosquito nets; the primary recipients were pregnant women and children
v r under five. A malaria testing program has now been put inega N2O in place.
TELL Innovation: Bliss4Midwives ? The risk of losing both mother and baby is higher in rural ? northern Ghana than in the rest of the country. Health clinics are few and far between; only 12% of mothers-to-be are able to access pre and post-natal care. That is where Bliss4Midwives comes in. With TNO Delft and Simavi in the Netherlands, Cordaid has developed this easy-to-use device that includes multiple test options in a single, portable machine. Using the ? device, midwives in rural and remote areas will be able to run ? ? tests and make diagnoses, enabling them to reach women who cannot travel the great distances to regular clinics. We are working with local partners. A total of 20 midwives and nurses are scheduled for training in February 2016. A pilot group of 500 mothers-to-be will test Bliss4Midwives. The midwives will keep the prototype devices after the pilot and it is estimated that 500 to 1,000 mothers-to-be will benefit every year. A Results so far business case has already been developed based on up-scaling ▪▪ raised awareness in all six implementing sites; that will keep the device affordable and available elsewhere. ▪▪ 28 nurses and midwives trained in screening and treatment; ▪▪ 240 women screened during the training program; Innovation: Screening for cancer in Ethiopia ▪▪ 10 cryo devises procured.
Follow progress through Open Data: https://www.cordaid.org/ ‘Cervical cancer is one of the most important causes of death for women en/projects/ethiopia-female-cancer-initiative/112243/ after maternal mortality in my country. If I can diagnose and treat all women in time with simple and low cost methods, then I prevent so many families with young children losing their mother, their wife, their sister.’ Dr . Manenti, Gyneacologist in Wolisso hospital, Ethiopia.
MAY 2016 © CORDAID 11 CORDAID 2015 ANNUAL REPORT What we did in 2015
G4-8 EDUCATION IN 2015 >192,000 166 >90,000 children in RBF schools in CAR with children
>400 60,000 >16,000 RBF schools children in CAR achieving 15% increase kids participating in our purpose- in pupil retention, a 12% increase in designed Respect Education program 79 girls’ attendance rate and more than 68% for conflict regions projects in improvement in successful exam results 7,000 4 196 disabled kids now have access to countries now using RBF in education primary and secondary schools in education in Bangladesh DR Congo educating 34 partners
WHERE WE WORK
INDIA BANGLADESH
CENTRAL AFRICAN REP. PHILIPPINES
ETHIOPIA
CAMEROON UGANDA BURUNDI DEM. REP. OF THE CONGO MALAWI
Total spent in 2015:
>€5 .4 MLN (2014: €7.3 mln)
One in ten of the world’s children of primary school age into government policy. Cordaid has already reached 166 (roughly 57 million children) are not in school (UN). It is schools through RBF across CAR, providing education to estimated that 781 million adults and 126 million young people around 60,000 children at an annual cost of USD 8.34 per child. aged 15 to 24 worldwide lack basic reading and writing On average, primary schools with RBF contracts have increased skills. More than 60% of them are women. Education is believed access and pupil retention by 15% (between 2012 and 2014 to be one of the best ways to help people escape poverty. The – most recent figures available); the attendance rate among more educated people are, the more likely they are to get a job, girls is up 12%. Over 68% of children are successfully taking to start their own business, to save, and to improve their examinations in spite of only 35% of classrooms being fully quality of life and that of their families. Educating girls is one equipped (see more on the independent edu.pbfsudkivu.org/ of the best ways to improve a society’s socioeconomic develop- data). In DR Congo, we have expanded the RBF education ment. In many developing countries, education gives girls a program to include additional modules, including radio-based voice. Girls who receive an education are more likely to marry support to teachers. In the future, DR Congo, Burundi, CAR and later, to have their children at a later age, and enjoy better Malawi will be the focus countries for our education programs. health. Educated mothers are more likely to have their children vaccinated and know how to prevent and treat potentially Respect Education life-threatening diseases, such as diarrhea and pneumonia. The quality of education is to a significant extent dependent on Their children are also less likely to be malnourished. Above all: the quality of teaching. Training teachers is, therefore, a key children with educated mothers are more likely to be in school. component of our RBF education programs. Part of the pro- gram enables teachers to follow remote learning courses via Positive outcomes radio to improve their skills and expand educational theory Cordaid has invested heavily in education programs in nine and techniques. In 2015, we introduced this component of the countries, introducing RBF in four of them. The most recent program in DR Congo in cooperation with Respect Education. addition is the Central African Republic (CAR). In mid-2015, the The Respect Education program (REP) was co-developed by Minister for Education announced RBF would be incorporated Cordaid specifically for use in conflict-affected areas. According
12 MAY 2016 © CORDAID What we did in 2015 CORDAID 2015 ANNUAL REPORT
to researchers from the Universities of Groningen in the The arrival of refugees in Europe has brought specific challenges Netherlands and Mindaneo State in the Philippines, at least close to home. Currently, there are more then 10,000 refugee 3,000 children on the conflict-prone island of Mindanao have children in asylum centers in the Netherlands. They are already been reached and the program is set to reach almost relocated frequently and have no consistent access to educa- 7,000 children nationwide before the end of next year, also tion. On the International Day for the Rights of the Child through the 194 teachers who have been trained. And it works. (20 November), Cordaid joined with 158 Dutch NGOs to call for Researchers found that schools that participate in the REP a more child-oriented reception of refugee children in the report significantly fewer cases of peer victimization. Netherlands.
The results Children taking part in Respect Education in 2015-2016: ‘These (refugee children) have often already been through a lot and are Burundi: 1,000 DRC: 1,000 Philippines: 14,000 sometimes traumatized by war, conflict and the dangerous journey to 73 schools participated in 2015, 63 in the Philippines, get here. They deserve to find peace here, stability and to be a child 10 in Burundi and DRC again…’ 234 Teachers were trained in 2015, 194 in the Philippines and Karin Kloosterboer, chair of the Werkgroep Kind in AZC 40 in Burundi and DRC (Dutch Workgroup Child in Asylum Centers).
Access for all Many of the children missing out on the benefits of education These are only some of the education programs and projects are from vulnerable indigenous or minority groups. They are we worked on in 2015. All can be found through Open Data. disabled, are orphans or homeless, and run the risk of being Throughout 2015, we worked closely with our partner abused or exploited. Cordaid has a long track record on support BlueSquare on integrating verification and community for inclusive education and our policies, programs and practices feedback systems into our RBF education projects, aligning are aligned to UNESCO. Part of our approach is to build the our inputs with those of Healthcare and Security & Justice. capacity of small, local inclusive educational organizations For more on RBF and education, see the independent site: through projects and advocacy. In Bangladesh, over 7,000 http://edu.pbfsudkivu.org/data children with disabilities now have access to education.
G4-8 SECURITY & JUSTICE IN 2015 56 120 1,500 projects Community Security Architects trained locally-led security and justice initiatives in DRC in DRC while community satisfaction with 10 policing services increased from 20.6% in countries 200 2013 to women trained in peace building in 54 South Sudan >58% partners in 2014, also due to increased Cordaid presented the co-developed surveillance 300 Global Acceleration Instrument to female judges trained in Afghanistan the UN review on Resolution 1325
WHERE WE WORK
AFGHANISTAN
ISRAEL SUDAN SOUTH HAITI CENTRAL AFRICAN REP. SUDAN
SOMALIA
BURUNDI DEM. REP. OF THE CONGO Total spent in 2015:
>€5 .6 MLN (2014: €12.1 mln)
MAY 2016 © CORDAID 13 CORDAID 2015 ANNUAL REPORT What we did in 2015
G community security architects 2 14 -2 15
1. Community Security Architects are people from within
communities 2 14 -2 15 2. Community Security Architecture is customised by the architect and the community, who know the context best
G 2 1 4 - 2 1 3. Designing security & justice action plans is a group 5 process preferably including police and judiciary actors 4. All stakeholders are engaged in implementing Security & Justice Action Plans G 5. We provide powerful insights to improve the 2 14 -2 15 effectiveness of (inter-)national policies and programs, based on best practices in communities worldwide.
An estimated 1.5 billion people live without security (World Bank). Most of them live in fragile and conflict-affected areas. 'There is no peace without forgiveness, without tolerance. Regardless Their communities endure constant security threats, ranging of ethnicity, social status, we are all brothers... arm yourselves with from armed conflict, theft of harvest to sexual violence. justice, love, mercy and authentic peace.' Security forces and judicial systems offer them little or no Pope Francis during his historic visit to the Central African Republic, protection. Fragile and conflict-affected regions, such as Syria, December 2015. Afghanistan, South Sudan and the Democratic Republic of Congo, and most recently the eruption of violence in countries like Burundi and CAR, lack even basic security. Civilians, Getting results particularly women and children, are the most vulnerable. We have now trained 120 Community Security Architects Yet at the same time, women have a vital role to play in peace (CSAs), operationalized eight community platforms and six building. Often, peacekeeping missions and formal judiciary security & justice action plans were agreed upon and partly structures are top-down and they often do not take local implemented. This program has also been launched in knowledge and requirements sufficiently into account. So we Afghanistan and South Sudan. In Afghanistan we undertook a work with local communities from the bottom-up and always successful pilot that identified and trained four CSAs and did include stimulating women’s participation in everything two participatory research studies on the conflict dynamics relating to security and justice. In 2015, we were gratified to see and security and justice in two provinces. In South Sudan we the conclusion of a project in Afghanistan designed to increase operationalized six community platforms and organized the the number of women in the judiciary. If female judges are discussion of a monitoring report on the disarmament process better qualified and skilled, women are more likely to access among 60 community and government representatives. the justice system and face a fair trial. Now, 300 female judges Looking ahead to 2016, next steps are the ramping-up of have been trained and the project reinforced the Afghan Community Security Architecture to include two additional Women Judges Association (for more on this project, see provinces in DR Congo, and expand activities in South Sudan, www.cordaid.org/en/projects/strengthening-afghan-female- Afghanistan, Mali and Somalia. In DRC, 150 communities will magistrates/111322/. each have developed a security & justice action plan and 1,500 locally-led security and justice initiatives will be in place. In Community security both Afghanistan and South Sudan, 12 community platforms One of our most successful multi-country security & justice will be operationalized and 12 security & justice action plans programs is 4x4justice. It formed part of the Justice for Sale will be implemented. In Mali and Somalia two pilots have been campaign in Eastern Congo aimed at improving access to justice, scheduled. medical and psychosocial assistance for women. The campaign is still ongoing and uses a mix of communication media, such Women, violence and justice as radio spots, a TV-series and comic books to reach people During the more than two decades of armed conflict in South in remote areas. All these activities are aimed at creating a Sudan women have experienced high levels of violence. At the shift in mindset in a society that traditionally holds women end of 2013, violence spiraled to many parts of the country responsible for the sexual violence perpetrated against them. leading to the displacement of thousands of people to Magwi Our Community Security Architects (CSA) program is proving County. The majority were women who are specifically vulner- increasingly effective. able to gender-based violence (GBV) and have no access to the CSA has now been rolled out in two regions of the DRC – most basic safely nets. Local justice institutions, such as the Batembo and Bahutu – where armed groups are active. police, judiciary, chiefs, hesitate to address violence against Long-running conflicts on land issues is a major problem here. women. Some women also perceive certain forms of violence by We believe collective action can make significant contributions male family members as ‘something normal’. Cordaid is now to resolving the issues. working to combat violence by strengthening communities
14 MAY 2016 © CORDAID What we did in 2015 CORDAID 2015 ANNUAL REPORT
and local justice structures. In 2015 and working closely with ▪▪ Communities’ satisfaction with policing services increased partner Women for Women International (WfWI), we have from 20.6 % in 2013 to 58.1% in 2014, also due to increased organized peace-building training for 200 women. Today, surveillance. many of them are already playing critical roles as proponents ▪▪ In Walungu, the peace tribunal’s mobile courts increased of peace in their community. Bi-monthly family courts are from 27 in 2013 to 79 in 2014. now organized in collaboration with local court officials to scale-up the legal services to GBV victims. ‘All security actors of our society, including the judiciary, administra- tion, civil society and the police, must be motivated and work together ‘There are numerous drivers of conflict in South Sudan. But there’s one to resolve our identified problems.’ overlooked factor that perhaps could have prevented a resurgence of Local administrator and chairman of the security committee in Idjwi, violence: a peace table that included women.’ South Kivu. Jennifer L . Windsor, CEO of Women for Women International (WfWI).
In Burundi the government, with Cordaid assistance, estab- Experience shows that RBF is an ideal tool to improve all lished six local ‘mixed security committees’ in which the aspects of security and justice in fragile and conflict-affected judiciary, the police, the municipal administration and societal areas (see also page 9). This is how we apply RBF: organizations discuss security problems and solve them at municipal level. Cordaid had been supporting and improving their effectiveness through RBF. However, in light of the current instability in Burundi (see page 27), this activity is on hold. In May 2015, Cordaid published a position paper on RBF in security & justice. It can be downloaded at www.cordaid.org/ media/publications/Cordaid-10076-04-4pager-SJ_RBF-EN- new1.pdf.
TRACK RECORD AND TRAINING IN RBF
‘The World Bank has made RBF a major priority. For them and other donors it is a promising solution with visible though not always spectacular results. Many countries failed to reach the Millennium Development Goals. They need stronger health systems but are dealing with constraints on resources. And RBF is seen as a solution to overcome those constraints.’ Professor Donald S . Shepard who has evaluated RBF programs in Haiti and several African countries including Zimbabwe and participated in the 10-day RBF training course.
Cordaid has extensive track record in both RBF healthcare and education and increasingly in security in Africa and Asia. But as more funds are becoming available for RBF- Results on security & justice related initiatives, notably from the World Bank, the need To date, Cordaid has RBF Security & Justice programs in the for formal training in the relatively new financing Democratic Republic of Congo (DRC) and Burundi. In the DRC approach is growing among policy-makers in developing province of South Kivu, the application of RBF has significantly countries. Only a handful of organizations offer this kind improved the performance of the local administration and the of training. Cordaid is one of them. Our most recent RBF police and judicial systems. It has also led to the revival of local training course took place in Zimbabwe, where Cordaid security councils, which were set up to encourage dialogue. and the University of Zimbabwe gave a 10-day course for The impact on security and justice indicators in South Kivu senior policy-makers and implementers from several (DRC) has been positive (most recent confirmed impacts to African countries. We are also committed members of the year-end 2014): Open RBF platform. A fundamental aspect of Open RBF ▪▪ The number of female participants in meetings of local (http://openrbf.org) is that, once validated, all data entered security committees tripled from 96 to 290. into this independent system are displayed on the internet ▪▪ The number of patrols in Shabunda district increased from for everyone to see and accessible through easy-to-read 1,441 in 2013 to 5,937 in 2014. dashboards. This encourages everyone to engage with vital ▪▪ The number of cases dealt with by the office of the development issues and shows how resources are allocated. prosecutor increased from 379 in 2013 to 648 in 2014. This commitment is fully in line with our pioneering and ▪▪ Communities reported that police behavior improved and state-of-the-art Open Data transparency. communities experienced 15% less harassment in 2014.
MAY 2016 © CORDAID 15 CORDAID 2015 ANNUAL REPORT What we did in 2015
ECONOMIC OPPORTUNITIES AND WORK IN 2015
116 >2 MLN 17,664 projects in total direct clients reached through our clients, including RURAF fund since 1998 and 27 7,987 countries 440,000 women, benefited from Stability Impact Fund loans made to entrepreneurs (65% women) finance 65 partners
Impact investment 1998 - 2015
Since inception, Cordaid has financed over 230 partners and made 430 investments with a mix of equity and debt instruments.
€ mln 200 179 172 160 156 143 134 128 120 117 105 80 91 78 63 40 51 29 39 20 0 11 6 0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Inclusive economic growth is a vital condition for reducing supported via dedicated local funds. RURAF provides equity, fragility, fighting poverty and transitioning following conflict. guarantees, and subordinated and senior debt. Grants are Cordaid advances private sector development in fragile areas by provided for capacity building and the development of innova- supporting local entrepreneurship and small and medi- tive financial products, services, and methods. In 2015, RURAF’s um-sized enterprises (SMEs). This support helps to create jobs activities looked like this: and fight poverty but also to build trust, reduce inequalities and increase social cohesion within and between communities. KEY RURAF FIGURES Private sector development is also an important strategy for Total committed €48.1 mln peace. Widespread youth unemployment is one of the most pressing social challenges facing fragile areas. Jobs and Total outstanding €45.1 mln opportunities for entrepreneurship are extremely important Portfolio at Risk 2.7% and can help to draw young people away from conflict. Specific constraints faced by female entrepreneurs must be addressed. Write-offs 1.4% Women play a key role in agriculture, trade and microbusiness- Female clients 65% es. Empowering women economically is an effective strategy Rural clients 440,000 for reducing fragility and rebuilding livelihoods. Return in 2014 4.5% Access to finance Access to finance 45 investees Cordaid has been investing in scalable, sustainable financial models in rural Asia, Africa and Latin America since 1997. To date, more than two million direct clients have been reached Impact investment for the future through our biggest fund under management: the Rural and Cordaid Investments, the asset management branch of Agricultural Fund (RURAF). RURAF’s investees are mainly Cordaid, believes that impact investing is the next stage in microfinance institutions (MFIs) that offer loans, guarantees development cooperation. If fragile communities are to and equity to people and businesses that have few options. They flourish, the need for economic development is just as urgent serve farmers and rural microenterprises. SMEs are indirectly as the need for security and justice and good public services.
16 MAY 2016 © CORDAID What we did in 2015 CORDAID 2015 ANNUAL REPORT
G4-8 STABILITY IMPACT FUND FOOTPRINT
GUATEMALA MYANMAR
HAÏTI
SOUTH SUDAN
SIERRA LEONE ETHIOPIA
COLOMBIA LIBERIA NIGERIA BURUNDI DEM. REP OF THE CONGO
SIF focus countries: Sierra Leone, Ethiopia, DRC, Guatemala Other target countries: South Sudan, Burundi, Nigeria, Myanmar, Haïti, Colombia, Liberia
Fragile and post-conflict countries are prone to relapsing into Health finance cycles of violence. The younger generation is eager for change, In 2015, Cordaid’s Health Fund began piloting improvements to but many of them are uneducated and have few job opportuni- the quality and quantity of health services in sub-Saharan ties. The Stability Impact Fund aims to stimulate entrepre- Africa by providing health institutions with much-needed neurship and create jobs in fragile contexts as a means to access to finance. The Health Fund specifically targets health achieve economic development and stability. Since its incep- institutions participating in Cordaid’s Results Based Finance tion in 2014, SIF has been an impact-first fund serving all (RBF) system. Healthcare providers receive their grant-based segments of micro, small and medium- sized enterprises payments only after their output has been verified. However, (MSMEs). Particular focus is placed on small companies at the the financial capacity of these health centers remains limited. lower end of the segment; the underserved ‘missing middle’ Loans provided by the Health Fund enable recipients to access that has the potential of becoming a powerful contributor to larger amounts of funding to further improve their services. economic growth. SIF provides its investees with access to Loans are typically used to purchase medical equipment or loans and patient capital. It is directly linked to Cordaid’s supplies, renovate or build facilities, and improve medical grant-funded Business Development Services (BDS) to make the services. Health clinics in Rwanda and Burundi participated in MSMEs investment ready and better equipped to achieve their the pilots. Roll-out will take place in Rwanda in 2016. Although social and business goals. early days, this is what the Fund looked like in 2015:
KEY SIF FIGURES KEY HEALTH FUND FIGURES
Total committed 2015 €5.7 mln Targeted fund size €20 mln
Total outstanding 2015 €5.0 mln Loans issued 17
Portfolio at Risk 0% Focus countries Rwanda, DR Congo, Zimbabwe, Cameroon, Kenya, Ethiopia, Burundi Write-offs 0%
Number of investees 6
Micro-entrepreneurs 17,664 (of whom 7,987 women)
Targeted fund size €40 mln (€30 mln first closing)
Targeted impact, jobs created 1,500 (of which 50% women and 35% youth)
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CREATING OPPORTUNITIES THROUGH INVESTMENT
Sierra Leone’s missing middle Sierra Leone’s financial sector has only enjoyed limited development since the violent civil war ended in 2002. Small enterprises have a hard time getting access to capital. Only a few commercial banks are willing to invest in SMEs due to the considerable costs and risks involved. Following the Ebola epidemic, the situation is even more challenging. In mid- 2015, we published an impact report on the post-Ebola landscape in Sierra Leone. It can be downloaded at www.cordaid.org/media/publications/Cordaid-4pager-Ebola_ juni_2015.pdf. Despite the negative impact of the Ebola crisis on businesses, clients managed to survive the crisis period by demonstrating a remarkable display of risk management strategies and entrepreneurship. This confirms why micro RURAF support for small-scale farmers and small entrepreneurs deserve to be supported through In Bolivia’s predominantly rural economy, partner Sembrar various financial instruments, including loans, coaching and Sartawi is one of the few financial institutions to develop business development services during and after crisis periods. loan products and training tailored to small-scale agricultur- al production and trading. Sartawi is highly committed to Clean water enterprise organizing small-scale farmers to improve their position in Jobs and opportunities to build their own livelihoods are the production chain. In 2011 and 2014, RURAF extended two extremely important, especially for young people (75% of significant loans to strengthen Sartawi’s capital position and Sierra Leone’s population is younger that 35 years). One consolidate its portfolio. A grant of US$ 20,000 was provided example of how local entrepreneurs are building opportuni- to introduce four new agricultural financial products, ties is the James family's Foods and Drink Ltd. (pictured including village banking and micro-savings products. Dairy above). It distills, bottles and sells spring water from a local farmer Filomena Nieves is one of the clients to benefit from source in Sierra Leone under the brand name AquaClean. To Sartawi’s products and services. Her milk production has grow its business, which includes a water plant at the source, increased seven-fold as a result of several microcredit loans the family enrolled in Cordaid’s BDS program in 2015. They and Sartawi’s technical training. With Sartawi, she has since became eligible for Sustainable Impact Fund financing and been able to negotiate an output contract with a large dairy their loan was approved in early 2016. factory, generating a stable income for this farmer.
G4-8 FOOD SECURITY IN 2015 63 7,290 90,000 projects dairy and apiary farmers in Teso, Uganda farmers in Uganda and conflict-torn South trained in farm management; Sudan will benefit from the manufacture of high 64 numbers of Wakatis, a sterile solar-powered partners 35 microclimate cooler that stores up to 150 kilos farmers' cooperatives in Sierre Leone of produce supported to re-open local market
WHERE WE WORK
AFGHANISTAN
SOUTH HAITI SUDAN
SIERRA LEONE
GHANA UGANDA BURUNDI DEM. REP. OF Total spent in 2015: THE CONGO INDONESIA
>€3 .2 MLN (2014: €11.6 mln)
18 MAY 2016 © CORDAID What we did in 2015 CORDAID 2015 ANNUAL REPORT
Access to food is always a challenge in fragile and conflict- Significant funding affected areas. That is why we work with small-scale farmers. A successful combined Disaster Risk Reduction/Food Security The key aim is to help produce food for local communities and proposal to the EU will enable us to roll out Pro Act, an inte- to create market access to generate income. Organizing grated approach to building resilience, livelihood and food farmers around a common economic goal and integrating the security in troubled South Sudan. food value chain potentially reduces tensions. In post-Ebola The Dutch National Postcode Lottery (NPL) donated €2.28 Sierra Leone, people are dealing with low food production and million to further fund the exciting Wakati innovation we high post-harvest losses. We launched a project that would reported on last year. This amount is over and above the €2.7 offer young people jobs in farming in areas where the only million regularly given to Cordaid by the NPL. The Wakati is employment is very dangerous mining work. aimed at farmers without refrigerators in developing countries After a long period of instability, the Teso region in northeast- where a great deal of produce - and therefore profit - can ern Uganda is slowly recovering. As many of the poorest be lost through spoilage. It is an innovative device that inhabitants work in dairy and apiary production, partner increases the short-term storage time for fruit and vegetables. SOCADIDO (Soroti Catholic Diocese Integrated Development The solar-powered Wakati stores up to 150 kilos of produce in a Organization) set up a project to improve local farmers’ sterilized microclimate. It is estimated that around 90,000 productivity and incomes. The project targeted dairy and apiary people in Uganda and conflict-torn South Sudan will benefit farmers and it reached a total of 7,290. The latest evaluation from this donation that will enable the manufacture of high concluded that more than 90% of the target households had numbers of Wakatis. improved their living conditions. One of the many positive results has been the focus on ‘farming as a business’. Farmers In mid-2015, Cordaid published a position paper on food were both trained in technical issues (i.e. forage for bees, pest security. It can be downloaded at: www.cordaid.org/media/ and disease control, apiary management and catching swarm publications/Cordaid-Position_paper_FoodSecurity-LR.pdf. colonies) and in marketing their produce. Through collective negotiation, the apiary farmers have already been able to agree Building resilience: sustainable development favorable prices on the purchase of 943 new hives. Disasters hit the poorest the hardest. Those who are destitute often live in the most dangerous locations and are most susceptible to recurring hazards, such as floods or droughts. CORDAID SERVICES FOOD SECURITY They are also the people destined – time and again - to lose their homes, jobs and farmland when fleeing from acts of war. context analysis & planning Disasters can destroy years of investment and hinder further development. This means that the most effective disaster response is resilience. This requires a combination of humani- tarian aid, rehabilitation and sustainable development. Although for reporting purposes, we separate out the various productivity post-harvest market access components essential to tackling all three, our long track record means we are strongly placed to help communities Training & Training & Training & Education Education Education achieve resilience through an integrated approach.
Track record Smart solutions Preparation Building resilient communities is an ongoing process. In of land; Access for storage and Market disaster-prone regions, resilience programs can be part of to inputs; Seed processing: information/ governance Wakati & linkage: ICT humanitarian aid. However, programs can also help local Warrantage communities develop capacity to mitigate the impact and reduce the risk of hazard. Resilience building can also be supported by lobbying and advocacy in specific focus areas. In the period 2011 through 2015, Cordaid was part of the Dutch organization of farmers Partners for Resilience consortium funded by the Netherlands’ Ministry of Trade and Development Cooperation. During that period, 45 projects in nine countries were implemented. Based on this experience, we were gratified to be selected to form a Strategic Partnership with the Dutch Ministry of Foreign Affairs for the period 2015-2020. For more on resilience, see www.cordaid.org/en/news/?&topic=resilience
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URBAN MATTERS IN 2015 EXTRACTIVES IN 2015 7 13 35 34 projects partners projects partners
Total spent in 2015: Total spent in 2015:
>€2 .3 MLN >€3 6. MLN (2014: > €2 mln) (2014: €6.2 mln)
As part of our new strategy, our Urban Matters business unit Women promote peace has been integrated into other activities, including our In addition to establishing projects that promote women’s economic opportunities and resilience focus. However, some of participation in civil society, our Women’s Leadership business our Urban Matters programs are still ongoing, aimed at: unit is tireless in its lobbying and advocacy activities across the ▪▪ Improving the living conditions of the people living in the world. In 2015, the focus was very much on the 15th anniversary of slums of seven metropolises in South America and Africa; UNSCR 1325 and its disappointing results to date. Resolution 1325 ▪▪ Initiating collaboration and managing all relevant was the first formal and legal document from the United Nations stakeholders: inhabitants, governments, companies and Security Council (UNSC) that required parties in a conflict to investors; prevent violations of women’s rights, to support women’s ▪▪ Giving priority to the inhabitants’ point of view in all plans; participation in peace negotiations and in post-conflict ▪▪ Using our international contacts and networks such as reconstruction, and to protect women and girls from sexual investors, knowledge centers, companies and NGOs; and gender-based violence in armed conflict. It was also the ▪▪ Stimulating co-financing by all parties involved; first United Nations resolution to specifically mention women. ▪▪ Providing sustainable solutions based on sound business The resolution has since become an organizing framework for cases; the women, peace and security agenda. The issue is that 1325 has ▪▪ Ensuring that as many inhabitants as possible benefit from failed consistently to find the funding needed to pursue its goals. our efforts by broadening the scope of its initiatives (scaling up) or by copying for use at other locations. WOMEN’S LEADERSHIP IN 2015 Public transport Cape Town on track For the past three years Cordaid has supported the Cape Town, 46 49 South Africa, administration in developing the Integrated projects partners Public Transportation project. The €55 million project is now ready to take off. Through improved transportation, people Total spent in 2015: from the townships will have better access to employment, >€5 5. MLN healthcare systems and higher education. (2014: €9.3 mln) Lobby & Advocacy in fragile contexts Cordaid has a proven track record in lobby and advocacy in fragile and conflict-affected situations. Our success lies in an GAI speeds up peace funding inclusive approach. Efforts start at community level, centered At the UN High-Level Review in the fall of 2015, this situation was on the perspectives and priorities of local women and men. acknowledged, also through the presentation of the Global Through local partnerships based on expertise and trust, Acceleration Instrument (GAI). This instrument was co-devel- Cordaid works towards restoring confidence and social cohe- oped by Cordaid’s Security & Justice and Women’s Leadership sion, also building strategic relationships to ensure that the teams and aims to increase funding to women’s organizations agendas of fragile communities are connected to national and promoting peace around the world. GAI is already having an international policy levels where decisions are taken. impact. Both the UK and Spain have pledged $ 1 million, the Australian government increased its initial pledge from $ 1 to Throughout 2015, we worked hard on various lobby and advocacy $ 4 million, and Ireland has committed at least $ 200,000. activities. In education, our lobby supported the decision in the Central African Republic to adopt Results Based Finance as the funding mechanism for their national education policy. Our ‘UNSCR 1325 gives us the political framework to get women on board Extractives team is closely involved in lobbying activities in and to change the perception of women from victims to agents of Kenya, South Sudan and Nigeria to redress the negative social change in conflict resolution processes. Yet 15 years later, donor and environmental impact of and corruption in the oil sector. countries invest billions in their own (military) security, but fail to Cordaid is a member of the board of EITI, the Extractives allocate the resources to implement UNSCR 1325 and hence to Industry’s Transparency Initiative, aimed at lobbying for and implement measures to improve the security situation of women. advocating the ‘Publish What You Pay’ approach to preventing This lack of political will to generate adequate funding deprives the corruption and increasing transparency in the industry. world of a most effective response to radicalization.’ CEO Simone Filippini, writing in the UK’s The Guardian newspaper.
20 MAY 2016 © CORDAID What we did in 2015 CORDAID 2015 ANNUAL REPORT
G4-8 CORDAID’S FOOTPRINT IN PROJECTS RELATED TO WOMEN
LEBANON AFGHANISTAN ISRAEL PAKISTAN PALESTINE STATE VIETNAM
HAITI SUDAN GUATEMALA CENTRAL AFRICAN REPUBLIC SOUTH SUDAN HONDURAS NIGERIA BANGLADESH ETHIOPIA PHILIPPINES SIERRA LEONE EL SALVADOR KENYA GHANA UGANDA INDIA COLOMBIA CAMEROON RWANDA CONGO-BRAZZAVILLE BURUNDI TANZANIA BOLIVIA DR OF CONGO INDONESIA ZAMBIA MALAWI ZIMBABWE
SOURCE Cordaid IATI activity file - http://iatiregistry.org/dataset/cordaid-activities
‘Peace and development cannot happen without us, women. We need is where Cordaid Bond zonder Naam (literally: Nameless the international community to support us with policies but also with Association) that was set up during the 1930s Depression, sustainable funding. Policies and funding that are put in place comes in. We invest in community empowerment by bringing in consultation with us. Because what is the purpose of political together parties that can help initiatives, such as local authori- declarations if it doesn’t match the realities on the ground.’ ties, companies and social organizations. By creating a support Hasina Safi, Afghan Women’s Network (AWN). ‘community’, we can help get these initiatives off the ground. And by joining forces, we can help disadvantaged people, often the long-term unemployed, take an active part in their local communities so they can ultimately help themselves. And that Cordaid in the Netherlands is exactly what they are doing. In 2014, Cordaid supported a Poverty and exclusion are realities in the Netherlands. group of nine women in setting up the ‘Our cooperative’ in According to the poverty report (Armoedesignalement) published Breda in the south of the Netherlands. The original cooperative annually by the Dutch government, more than 544,000 or >10% now has a total of 59 members, interns and volunteers. Many of of households in the Netherlands are living in relative poverty. the members were long-term unemployed. They were allowed This figure is down on the previous year (10.3%), also as economic to retain their social-security benefits for a specific period of recovery stabilizes. However, this still means that more than a time. In the meanwhile, eight members have found paid work million of the Netherlands’ total 16.8 million people find or have gone on to further education, saving the local authority making ends meet a struggle, especially in the larger cities. a massive €100,000 on benefits. Moreover, the cooperative is What is most alarming is that the number of households that profitable and has been able to pay out part of its profits have been under the poverty line for more than four years is - €2,000 - to the local authority. increasing: 217,000 in 2015. Of the people who live in long-term poverty, 131,000 are children (Armoede en sociale uitsluiting 2015/ Winning ideas Poverty and social exclusion 2015, The Netherlands’ Central Bureau for Cordaid in the Netherlands also works on stimulating Dutch Statistics, December 2015). At year-end 2015, the number of food ingenuity that can be applied at home and exported to fragile banks had increased to 163 (2014: 157). and conflict-affected areas. For the second successive year, we organized the Social AdVenture Challenge. We are looking for Giving back to the community bright, smart and viable ideas. The 2015 participants did not People clearly need help. Cordaid is convinced that care for the disappoint. The first prize in the national category (€7,500) vulnerable in society is essentially a government responsibility. went to Ubuntu, a social cooperative in Amsterdam, made up But we are also aware that there are countless community almost exclusively of single mothers. By pooling their skills, initiatives from people who want to change their situation experience and energy into Ubuntu, they have created work for themselves. What they need is help to help themselves. This themselves and others. Both the international and popular
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prizes (€7,500 and €750, respectively) went to LegBank, an ingenious prototype machine that produces leg prostheses economically and quickly. The LegBank has already won a significant award from our (donor) partner ASN Bank. The Social AdVenture Challenge win will enable further develop- ment. For more on the challenge: www.cordaid.org/nl/nieuws/ nederland-onderneemt-sociaal/ (in Dutch only) or on Twitter: #SocialAdventure.
Open Data - commitment to transparency
At any given time, Cordaid is developing, implementing and executing hundreds of programs and projects in over 40 countries. All our projects are aimed at specific out- comes but often impact over time is harder to quantify, not least because we work in the world’s toughest and most volatile regions. What we can do is provide a clear and transparent accounting of what we are doing, how funds are deployed and what progress has been made. In practi- cal terms, this means everyone – clients, partners, donors – can follow each and every Cordaid program and project (www.cordaid.org/en/vision-open-data/). Cordaid publishes and updates its projects on a quarterly basis using the internationally recognized IATI open data standard (www.iatistandard.org). We work on the basis that all project information should be published; internal report- ing and updating processes are streamlined under the ‘single entry, single source and multi-use’ principle. Progress can be reviewed during rather than at the end of activities. And because data in itself is not knowledge, our open-data project files further provide narrative informa- tion and background about the vast majority of projects. At present, the data and information generated must be considered as outcomes rather than verified sustainable impacts. We are still working on this next step. However, Cordaid’s approach is considered pioneering and state-of- the-art and we are frequently invited to provide workshops and training on Open Data to a wide variety of organiza- tions, including regulators and government auditors. In early 2015, we rolled out interactive visual tools that help users to produce insightful graphs, maps and charts based on open data information. Partners in Uganda were offered training for trainers on project reporting using open data during 2015.
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HOW WE WORK
Cordaid works in the most high-risk fragile and conflict-affect- high-quality basic healthcare if women are still unsafe and ed areas in the world. Our mission is to help transform those exploited, children malnourished and unschooled, and commu- areas into flourishing communities. We cannot do that alone. nities divided and insecure. So we work with our clients (local Nor do we work in a vacuum. Cordaid is not a single-issue NGO. communities and people), our partners and our donors to ensure We take the view that there is little point in securing the support offered is what local communities really need.
CORDAID - BUILDING FLOURISHING COMMUNITIES IN FRAGILE STATES
In flourishing communities, people are able to satisfy their fundamental human needs when social structures and institutions function inclusively and sustainably. In fragile contexts, this is a fundamental challenge.
Cordaid’s intiatives contribute to peace and nation building in fragile contexts, leading to strengthened social contracts, IMPACT resolved power imbalances and structural social change.
security and justice opportunity governance and services CORNERSTONES
Security structures and institutions respond The private and public sectors Governing institutions are responsive to the needs to vulnerable communities need for protection, function in a manner whereby once of all people living in fragile contexts, including OUTCOME justice, and improved resilience against natural or excluded entrepreneurs can actively access to social services man-made disasters participate in the economy
Empowerment: All people are able to speak out and influence in the decision-making processes that shape their society
PROBLEM ACTIVITY OUTPUT
Rebuild social contracts through performance based Justice expanded through a widened magistrate; Fragility: Weak governance structures; delegitimized finance (PBF) to support effective justice and rule of law, access to timely, quality and efficient health care; social contracts, damaged social cohesion health care and education girls and children stay in school
Apply risk reduction techniques and action plans to Globalization: global common goods unfairly distributed, Loss of life and property is reduced; community empower citizens mitigate and manage challenges to neglected, overused and abused. continuity is improved productive land, clean water and safe shelter
Power imbalances: power is employed not for the Citizen engagement and social accountability is Convene and build the capacity of civil society to good of an entire society, but in favor of elites and enhanced; unusual suspects are drawn together to constructively participate in peace building platforms special interest groups support social processes and goals
Women gain access and participate in peace processes; Gender inequality: a cross-cutting fundamental power Use PBF and convening power to ensure that women and access to appropriate sexual and reproductive health; imbalance and root cause of fragility girls needs in fragile contexts, are articulated and met women are free to exercise economic rights
Global socio-economic changes: widening wealth A thriving Small and Medium-Size Enterprise (SME) Invest in funds that deliver much needed capital and in gap lack of political will to combat poverty or find sector gives rise to inclusive jobs, skills and conflict sensitive business development training innovative solutions to structural problems spring-up industry
What clients want At Cordaid, we are convinced that power imbalances and the impacts in three areas: overall security and access to justice, exclusion of people, whether economic, through lack of access to work and public life, and mobility and access to security, through gender or religion, are among the root causes services. The Transition Monitor continues to be used to of fragility. That is why we involve communities at every stage understand community concerns and priorities. The Women’s of our programming and projects. The people concerned know Peace and Security Barometer is another Cordaid innovation. the situation best; they know what is going right or wrong. We It has now been further expanded from three to four countries. have worked hard on developing tools that give communities a Women in DR Congo, Columbia, India and South Sudan define voice. The withdrawal of NATO troops from Afghanistan at the what security means for them. They then provide data on the end of 2014 gave rise to real concerns among women there. daily reality of peace and security issues for local women. This Working with local partners the Afghan Women’s Network information is valuable for policy makers, governments and (ANW) and the Afghanistan Public Policy Research donors. The added value is that the analyses are reported back Organization (APPRO), we launched the Transition Monitor, a to the local women, empowering them at negotiating tables periodic survey among local women that tracks and documents at all levels of policy development and implementation.
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‘Cordaid is well-placed to provide critical views and recommendations to internal actors involved in Afghanistan, such as NATO. The necessity to continue to liaise with civil society and be informed by independent research initiatives on women’s security and their perceptions of the ANSF (Afghan National Security Forces) in guaranteeing their security, will be as important and relevant as ever.’ Mari Skare, Former NATO Secretary General’s Special Representative for Women, Peace and Security.
G4-8 BAROMETER FOOTPRINT 2015 Afghanistan Northeast India Four cycles of Monitoring Women in Transition The first cycle of monitoring has been were completed. Lobby and advocacy on the completed in two states, Manipur and Palestine basis of the transition monitor informed the Assam. The barometer has generated A barometer initiative is policies of NATO and other bodies. A new awareness and actions at community- empowering Palestinian women barometer initiative has been developed to level, and the consolidated evidence base from both stories of the Green continue to monitor Afghan women’s security, has been used in policy advocacy and Line to tell their Stories, analyze and also support implementation of the new multi-stakeholder engagement. them collectively and provide National Action Plan for UNSC 1325. specific recommendations for action and policy change to audiences internationally and in the region.
South Sudan Community consultations helped to open up dialogue on a previously silent subject of women’s security. Israel Women’s stories of insecurity Bedouin women in the Negev in Western Bahr al Ghazal Desert have completed a first state have been documented Burundi round of gathering women’s and analyzed, and will be Exploratory discussions are perceptions regarding used not only for policy underway to gauge personal safety and security, advocacy but also a series of possibilities for Barometer economic prosperity, community radio programs. development. equality and ability to influence decision-making processes. Results have been Colombia Democratic Republic of Congo presented to the Bedouin Collaboration among Colombian women’s networks and The Femme au Fone initiative is using mobile community and to local, organizations successfully produced tools and indicators to capture phones and radio to promote the protection, national and international the experiences of over 2,000 women regarding violence and empowerment and participation of women. stakeholders and duty- discrimination affecting political participation and economic Women use SMS to report security issues. This bearers. Indicators for autonomy. The outcomes of the first cycle of data collection were information is being used in regular radio ongoing monitoring of the analysed in a series of participatory workshops to produce policy reports and also for advocacy. 1,000 stories situation are being analysis and follow-up actions. were collected in the pilot phase and published. developed.
EXPANDING THE FLOURISHING COMMUNITY INDEX
Cordaid’s innovative new methodology for assessing the it had to be put on hold. As part of our expansion plans, we priorities of local communities – the Flourishing Community are currently developing a number of FCI apps for specific Index or FCI – has been further extended. purposes. Colleagues working on Lobby & Advocacy are The technology-based FCI helps us reach client beneficiaries already using a tailored app. A ‘Resilient Community Index’ in an objective and inclusive way – through story-telling. app for Cordaid’s Disaster Reduction and Resilience team will This is a simple, easily applicable and replicable approach that be available in 2016. In Uganda, we also trained local partners can be used on a large scale in local communities in different in collecting data on how people perceive their own and countries. In 2015, a number of ‘train the trainers’ workshops the community’s capacities to address a hazard. Again, were given to local partners in South Kivu, DRC. We had story-telling combined with quantitative data is used to started an FCI pilot in Burundi at the end of 2014, however due gain a fuller understanding of community needs. to rapid deterioration of the political situation (see page 27)
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Working with partners However, partners believe we could further improve on the In 2015, we listed over 1,000 partners on www.cordaid.org. advice and guidance we provide. So partner comments are There are implementing partners that are firmly rooted locally, generally positive about Cordaid but also critical. We are now and funding partners that finance the projects. Finally, we also looking at ways to improve our partner dialogue as, in summary, list the networks and alliances we are part of. Our implement- the message is: Cordaid needs to become a better listener. ing partners are by far the largest group because we are not a single-issue organization. The prospect of the post-2015 funding situation and our commitment to the Global Goals MFS II – EVALUATED mean we will be focusing almost exclusively on fragile and conflict-affected areas. Of the current 46 countries where we Over a five-year period, more than 70 countries received worked in 2015, 22 (including the Netherlands) will become €1.9 billion in Dutch government MFS II funding through priority regions from 2016; Cordaid has offices in 12 of these 22 67 Dutch development organizations, including Cordaid. countries. One of the preconditions for this funding was that all However, this does not mean we will sever ties with existing projects funded through MFS II would be carefully and partners in, for example, countries that are no longer a priority independently evaluated. That evaluation was completed focus for us. We will continue to maintain relationships as in September 2015 and is the largest endeavor of its kind fragile and conflict-affected situations can arise at any time ever undertaken. The results included in an 8,000-page and in any place, as the experience in Burundi demonstrates. report, also collected by not-for-profits such as Cordaid, G4-16 From 2016, we will also be revisiting strategic partnerships and show that Dutch development cooperation organizations have opted to cut back the current 83 to 53 of the most relevant deliver excellent work. And that tax-payers’ money to our fragility and conflict-affected regional focus. Our most has been well spent on pursuing the Millennium strategic partners, Caritas Internationalis and CIDSE, obvious- Development Goals. The full report and summary versions, ly remain crucial to our future. We are intensely grateful to all also per country, can be reviewed and downloaded at our partners for the cooperation and good work they (continue) https://www.partos.nl/joint-MFSII-evaluations. to do around the world.
What our partners say ‘There has been a lot of criticism of the sector in recent years. The Throughout the MFS II period from 2011 to 2015, we monitored government has also made serious cutbacks on subsidies to NGOs. Cordaid partner perceptions on our working relationship. And now it seems that the sector is simply good. It’s effective and Through a bi-annual survey (2011, 2013 and 2015), one of our efficient, although we cannot always find hard evidence for the aims was to get feedback from partners on the support provid- latter…’ ed by Cordaid. In general, we scored relatively well on quality of Professor Wiebe Bijker of Maastricht University who oversaw support. Cordaid is highly respected because we are seen as the MFS II evaluation. showing respect to partners, their knowhow and expertise.
G4-6 WHERE WE WORK FROM 2016
THE NETHERLANDS
SYRIA AFGHANISTAN IRAQ LEBANON INDIA BANGLADESH
CENTRAL AFRICAN REP. HAITI SOUTH NIGERIA SUDAN PHILIPPINES
SIERRA LEONE ETHIOPIA MYANMAR KENYA UGANDA CAMEROON BURUNDI
DEM. REP. OF MALAWI THE CONGO ZIMBABWE
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G4-26 COMMUNICATION, RAISING AWARENESS AND Communication in 2015 ENGAGEMENT IN 2015 We began focusing on issue-campaigning in 2015. An issue campaign is a series of coordinated activities around a specific >42 MLN topic. One example is the refugee crisis in the Mediterranean. views as Cordaid ad campaign goes viral CEO Simone Filippini visited camps in Greece and on the border with Macedonia to learn at first hand about the plight >500,000 of the people fleeing conflict and economic problems. Caritas visitors to our website Greece and Cordaid staff were distributing food packages to around 2,000 refugees daily. Through media coverage, visits of this kind help raise awareness on the issue but also on Our communication team’s task is raise awareness of the Cordaid’s role in alleviating the humanitarian crisis. We challenges facing people in fragile and conflict-affected backed up the visit with an all media information and G4-24 situations. People, our stakeholders – client beneficiaries, fund-raising campaign, specifically through social media. partners, (institutional and individual) donors, personnel Thanks to close cooperation between the fundraising and - need information. We aim to provide it by making challenges communications teams there was an immediate surge in visible. And by explaining Cordaid’s approach to tackling them. donations of close to €1 million from individual donors. Overall, through our visible presence on the ground in conflict Sense of urgency and disaster hot spots, we are increasingly invited to provide Relevant communication can help people understand what is background and comments on crises, thereby reinforcing our needed and how Cordaid’s propositions translate into programs ability to inform and raise awareness among the general and projects to meet those needs. We have put in place a public. communication strategy designed to maximize engagement with all stakeholder groups, our colleagues around the world, Providing information and civil society movements, especially Catholic organizations Cordaid uses all types of media, both conventional and new, to like Caritas Internationalis and CIDSE. Our communication is inform, raise awareness and engage support bases. We contin- committed to keeping alive the sense of urgency around fragile uously publish and update daily topical news on our website and conflict-affected regions. We do this by issue campaigning, and through mass media. Involvement with our individual systematic engagement, online excellence, flexibility and donor base and interested parties is achieved through connect- unifying our visibility through a centralized multi-label and ing with them on social media and at live events. We gain trust multi-stakeholder approach.
AD CAMPAIGN GOES VIRAL
In February 2015, a few people in France and Canada shared quarter of a million in the second quarter of 2015. Created by our 2007 ‘Small Change, Big Difference’ offline ad campaign Cordaid and Saatchi & Saatchi for Cordaid Mensen in Nood on Twitter. Although we have not used the campaign in (People in Need), the campaign won the Cannes Silver Lion recent years, the images are still out there, online. And they award. Saatchi & Saatchi auctioned off the award and are now being found by people and organizations all over the donated the proceeds to Cordaid. The campaign is still used world. Within weeks, the images had gone viral and more by art and advertising colleges for educational purposes. This than 42 million people had viewed them, also through is a classic example of how Cordaid leads in thinking about publication by the Huffington Post and other authoritative sites. raising awareness – and it is still making people think today. There are indications that the campaign is partially responsi- Check out #PeopleinNeed on Twitter. ble for a doubling of our website visitors to more than a
26 MAY 2016 © CORDAID how we work CORDAID 2015 ANNUAL REPORT
THE WALK
More than 3,000 people have taken a real-time walk with through dry lands, in rain storms, under the burning sun. A Chanceline, a 26-year old mother-to-be in the DRC, on our lot can happen on her walks. Both people and wild animals website (www.cordaid.org/en/healthforall/youtube) and now can be dangerous. Why did Chanceline agree to make this file on YouTube. Chanceline has to walk 27 kilometers to the and why did Cordaid show it in real-time? Because she knows nearest health clinic. It is some walk for a simple check-up that healthcare should be a right not a privilege. - over five hours and another five to get home again. And Chanceline has done the return trip five times during each of In January 2016, Chanceline gave birth to a healthy daughter, her three pregnancies. Walking is the only option; taxis are Anne Emmanuelle. Both mother and baby are doing very well too expensive for small-scale farmers. So she walks alone
by providing full disclosure on our projects through Open Data ad campaign that went viral in 2015 attracting viewers. (see page 22). As noted, (issue) campaigns are used to raise Cordaid’s programs on youth gangs in El Salvador drew close specific awareness, also through the websites of our labels in to 50,000 views. the Netherlands. For example, in 2015 following a Cordaid Memisa campaign, we were able to fund training for 12,000 How we manage setbacks health workers. A key component of the campaign was our Many of the places we work are high-risk and volatile. How do estimate that a safe clinic birth costs around € 7. Information we deal with rapid changes? Burundi is a good example of the like this gives donors a clear idea of what their money can do. dilemmas we often face. In our 2014 annual report, we wrote Mother’s Day in May 2015 was an opportunity to revisit the optimistically about how our work in Burundi was progressing. series of television documentaries made in the Netherlands We have been present in this country for close to 20 years, and Uganda on becoming a mother. It highlights the high through civil war and unrest. Burundi is one of the poorest number of deaths around pregnancy and birth in the poorest countries in the world. It is densely populated, especially in countries. We have also set up a number of partnerships with rural areas where the average farm size is no more than one retailers who offer to donate a percentage of sales to Cordaid acre per family. This is subsistence farming at its most basic. Memisa at no additional cost to the shopper. All sales support At the same time, Burundi’s 10.5 million population has one of Cordaid Memisa and therefore our health programs. In the highest birth rates in the world. Over time, Cordaid has set October, the popular television program RTL Boulevard helped up a multi-focus range of community-based programs and us raise funds, raise our profile and vastly improve our ranking projects throughout the country. With the government, we in brand preference. were looking at developing Results Based Finance (RBF) health programs into a national healthcare system. And - based on Reaching people positive experience - we had started RBF pilots in education During 2015, visitor numbers to our Dutch-language site was and security & justice. That was at the start of 2015 when the stable, while the number of visitors to our English-language political situation appeared relatively stable. site increased to 334,000, up from 172,674 in 2014. Our visitors came from all over the world. Of our labels, Cordaid Memisa Breach of trust was visited by the most people (>100,000). Our projects had That all changed in April 2015 when the incumbent president over 137,000 (2014: 110,000) visitors in both languages. And opted to run for and ultimately won a third term in office. This more than 7,380 (2014: 11,300) unique downloads were made of was followed by a failed coup and around 100,000 people information posted on our site. All the social media we use fleeing to neighboring countries. The situation now can best be (Facebook, Twitter, YouTube, LinkedIn) achieved an average described as a humanitarian crisis. One further result of the real increase in followers, with Twitter now nearing 10,000 (political) instability is the withdrawal of international donors followers. YouTube has become an important medium for from public-sector funding. The elections had been broadly Cordaid, with not only The Walk (see sidebar) and the 2007 criticized by the international community and suspicions of
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jobs CORDAID’S FOOTPRINT IN BURUNDI Building a business
jobs Healthcare Building a business KIRUNDO Education jobs jobs RWANDA jobs Building a business Building a businessBuilding a business Healthcare Rule of Law MUYINGA TANZANIA CIBITOKEHealthcare Healthcare jobs Education NGOZI jobs Vocationaljobs & Building a business HealthcareBuilding a business EducationprofessionalBuilding training a business Education Rule of Law jobs KAYANZA Healthcare Rule of Law Building a business Rule of Law EducationHealthcare Healthcare
jobs jobs BUBANZA Education jobs Vocational & DEM. REP. Vocational & VocationalBuildingKARUZIBuilding & a business a Educationbusiness BuildingCANKUZO a business professional trainingEducation professional training professional training OF THE CONGO Rule of Lawjobs Healthcare Building a business RuleMURAMVYA of Law Rule of Law jobs Rule of Law Healthcare Building a business Healthcare Healthcare BUJUMBURAEducation Vocational &jobs BUJUMBURA VocationalVocational & & Healthcare jobs professional trainingBuilding a businessEducation professional training MAIRIE Vocationaljobs & professional training HealthcareprofessionalBuilding trainingBuilding a business a business Education Education MWARORule of Law RUYIGI Education GITEGARule of Law Healthcare Education Rule of Law RuleRule of ofLaw Law BUJUMBURA Healthcare Vocational & Vocational & RURAL Healthcare Education Rule of Law professional training professional training jobs Vocational & VocationalVocational & & Education Building a business professional training Rule of Law professional training professional training Vocationaljobs &Education professional trainingBuildingRule a business of Law BURURI Vocational & RUTANAHealthcare professional training Rule of Law HealthcareVocational & Education professionaljobs training Building a business Education Rule of Law Vocational & Rule of Law Healthcare TANZANIA professional training Vocational & MAKAMBA professional training Education Vocational & professional training Rule of Law
Vocational & professional training
In Burundi, the peace following the civil war that ended in 2008 is still fragile. Apart from political instability, the country also suffers from poverty and land shortage. This is one of the poorest countries in the world, ranking 180 out of 187 (UNDP’s Human Development Index, 2014). As the spread of Cordaid offices and activities shows, we are working on (multi-focus) community-based programs and projects in the majority of Burundi’s provinces.
growing corruption have led to a breach between major donors ‘Many countries get past civil war and other conflicts through reconcili- and the central government. The international donor commu- ation. Just look at South Africa and there are other examples even closer nity is now withholding funding for existing programs unless to here. But not in Burundi itself. I believe we should also be thinking NGOs and not-for-profits can guarantee there is no government about how to stimulate reconciliation here…’ access or involvement in management or disbursement. Charles Gerhardt, Country Director, Cordaid Burundi.
Emergency mode? What is the alternative when the existing (healthcare and education) infrastructure is owned by the State? As Cordaid, Learning from complaints G4-27 we have to come up with solutions so that we can continue to Cordaid has in place a comprehensive framework for respond- provide the support people and communities desperately need. ing to any complaints that may arise from our programs and A possible solution is to manage the extensive RBF healthcare other activities, such as fund raising. Fast and transparent network through civil society partners and local NGOs. This is a responses to complaints are crucial both for retaining good huge undertaking. However, unless we can find a workable relationships and for our reputation. There is a clear process solution, RBF as a concept is no longer viable. The original aim for managing complaints. We set time limits on responses: had been to evolve RBF into a national policy. Now, it may have confirmation of receipt within two days, a maximum of four to become a form of national insurance system but the (finan- weeks for assessment of the complaint, followed by response cial) infrastructure required to support a system of that kind is to the complainant. If no satisfactory solution can be found, far ahead in Burundi’s future. A more immediate band-aid the issue can be forwarded to the Complaints Committee solution is to switch to emergency mode whereby projects are comprising the CEO, the Q&C Compliance Officer and the funded directly by Cordaid. We have, meanwhile, reduced Manager of the Donor Contact Center. operations in our RBF education and justice pilots until there is more clarity; there is definitely no chance of upscaling pilots as Lessons learned funding is frozen until we can come up with a solution. We received a total of four complaints from partners in 2015. However, emergency mode may be the only solution in the Often complaints relate to lengthy time lapses between medium-term, or until the current international efforts to submission of proposals and decisions by Cordaid. One such defuse the situation have achieved results. complaint was received in the reporting year. In our view, the
28 MAY 2016 © CORDAID how we work CORDAID 2015 ANNUAL REPORT
complaint was valid and we took action to rectify. Another complaint was designated what we call an ‘objection’. These usually concern objections to funding decisions. The main complaint was that we had not communicated the ending of support in a timely manner, especially as this stipulation had been included in contracts. Again, we considered the objection valid. Processes will be put in place to ensure such oversights in communication do not recur.
Individual donor complaints Our individual donors are crucial to Cordaid. That is why we aim for transparent and long-term relationships. We have put in place an easy to use system for the relatively rare times things go wrong. Donors can access a user-friendly, online form on our website. In 2015, we received a total of 366 complaints and queries from a donor base of close to 300,000, down from 484 in 2014.
‘I am so grateful to all the kind people who took care of me all the way, from Chukudum to today.’ Lucia Nadai, a mother of seven who was admitted to Torit hospital, South Sudan after a miscarriage in May 2015. She was referred to Chukudum hospital with placenta carcinoma and taken there by one of the ambulances donated by Cordaid to facilitate referrals of complicated cases. The correct referral and the ambulance literally saved her life.
MAY 2016 © CORDAID 29 CORDAID 2015 ANNUAL REPORT How we did in 2015
HOW WE DID IN 2015
Organizational aims in 2015 Aim: Continued strengthening of country offices to enhance At the beginning of 2015, Cordaid set a number of aims. This is our local impact in fragile and conflict-affected areas. We will how we pursued them. be improving administration, finance, programming, reputa- tion and local funding. At the same time, we will also rational- Aim: at the end of 2015 Cordaid will be ready for a future ize our presence in certain countries and diversify the type of without the Dutch co-funding framework (MFS II). In prepara- presence. tion we are finalizing plans for and implementing a stream- lined and focused One Cordaid to meet the challenges of the In 2015, the number of personnel in country offices increased future. This includes a fully integrated and more effective from 254 in 2014 to 421 in 2015. There has been a rationalization brand and communication strategy and a reinforced corporate of our presence in some countries and we have diversified our culture and behavior. Furthermore, it concerns how we presence as we further focus on specific countries based on our manage relationships – between head office and our country new strategy. Significant progress has been made in providing offices and with our partners. country offices with the same access to administrative services available at Head Office so that all have essential tools for Throughout 2015, Cordaid worked on achieving and implement- reporting on program and project progress. ing all the goals set in this aim. Strategy has been framed, a right-sized organization and structure have been put in place, Aim: Employee satisfaction >7. communication and brand strategies, specifically in issue-cam- paigning, have been implemented. We are gradually reducing Standard practice at Cordaid is to measure Employee the number of partners to bring these relationships into line Satisfaction through twice-yearly surveys (ESS). During 2015, with our future focus, program, product and geographic areas. dialogues on the restructuring process were so intense that no separate surveys were undertaken. We will recommence Aim: Cordaid continues to optimize funding, especially by ESS in 2016. broadening its donor base to institutions, private foundations and individual philanthropists. Fundingraising and spending in 2015 G4-9
Income from government and other funders, such as the >€151 .9 MLN World Bank and the Global Fund, various UN organizations, total funds raised the EU and philanthropic foundations, etc, rose €25.3 million compared to 2014 due primarily to improved tendering. €145 .4 MLN total funds spent Aim: At least €28 million raised from individual donors in the Netherlands. €17 .1 MLN total donations from Dutch individual donors, excluding legacies In 2015, Cordaid was able to raise over €26.75 million from individual donors, including legacies and other donations. €6 .1 MLN This is 3% under our target but almost €1 million higher than spent on fundraising in 2014. However, we see opportunities in greater acquisition efforts among businesses and foundations. This effort has been €5 MLN incorporated in our new team structure. management and administration expenses
Aim: Cordaid further increases its tender success rate to 45% (2014: 40%). As part of our transparency and governance, Cordaid publishes a full accounting of finances in the Financial Statements Of the 70 tenders submitted during the reporting year to (see page 42). Here follows a summary of that comprehensive potential donors ranging from (the Dutch) government, information. international bodies and philanthropic foundations, we were awarded 40 or a 57% success rate compared to 40% in 2014. This What we spent in 2015 increase is an indication of our growing skill in the often Cordaid spent a total of over €145.4 million (2014: €172.5 million) extremely complex and time-consuming tendering process and on programs, projects and public information and awareness in the greater focus in our programming. 2015.
30 MAY 2016 © CORDAID How we did in 2015 CORDAID 2015 ANNUAL REPORT
Our individual donors X €1,000 2015 2014 The Dutch people are generous and we are very grateful that Healthcare 56,854 68,584 they donate in huge numbers and remember Cordaid in their Child & education 5,394 7,313 wills through our labels: Cordaid Mensen in Nood (literally: G4-4
Disaster response 41,929 26,346 people in need) for disaster relief and resilience building; Cordaid Memisa for healthcare programs; Cordaid Kinderstem Women’s leadership 5,554 9,345 (literally: child’s voice) for Child & Education programs and Extractives 3,612 6,226 projects; Cordaid Microkrediet for microfinance; and Cordaid Security & justice 5,557 12,122 Bond zonder Naam (literally: Nameless Association) to fight poverty and exclusion in the Netherlands. The individual labels Entrepreneurship 1,711 3,967 have their own websites with topical information on actions Urban matters 2,273 2,074 and events. Cordaid Netherlands 12,184 12,195
Investments 2,650 7,769 ‘As a life-long supporter, I have decided to leave my estate to Cordaid Food Security 3,198 11,613 Memisa. I know much has changed over the years and that missionar- - Public information / awareness campaigns 4,561 5,743 ies no longer travel distant regions on bicycles, but Cordaid Memisa still Total spending 145,473 172,563 has a personal involvement and commitment to local communities that appeals to me. I feel that is important especially when otherwise my estate would be fragmented over large numbers of relatives. Now, it will Where our funding comes from have a clear and meaningful destination…’ Cordaid’s funding comes from a combination of (Dutch) Leo van Zelm, who has included Cordaid in his will. government, institutional (the World Bank, the Global Fund, the United Nations and the European Union), and close to 300,000 individual donors in the Netherlands. Other spending X €1,000 2015 2014 Cordaid could not implement and execute programs and projects without the support of administrative, fundraising, campaign- Own fundraising 26,750 25,844 ing and other essential activities in both our head office in Third party campaigns 12,414 11,055 The Hague and in our country offices around the world. Government grants 109,573 138,917 Our non-program costs for fundraising in the Netherlands are 17% of total income and within the maximum allowed (25%) Gains on financial assets 2,133 8,655 by the independent Central Bureau for Fundraising (CBF) that Investment income 211 3,517 oversees charitable organizations in the Netherlands. Other income 773 467
Total income 151,855 188,455
In our search to build relationships and extend our reach into the US, we have been fortunate in attracting a US Leaders’ Council composed of prominent individuals with an interest in furthering the international relief and development efforts of a leading global organization. This volunteer body plays a critical role in raising awareness of Cordaid and its work within the US. Behind their commitment is the powerful combination of our focus on fragile and conflict-affected areas, our century of experience, the global reach of our activity and our emphasis on transparency.
MAY 2016 © CORDAID 31 CORDAID 2015 ANNUAL REPORT Our Strategy for the Future
G4-1 STRATEGY FOR CONTINUITY
The context Theory of change In 2015, Cordaid had >1,200 programs and projects in 46 coun- This is the working environment that Cordaid has made its own. tries. Many of those projects were co-financed by the Dutch We know first-hand that fragility represents complex realities Government’s MFS II program aimed at the Millennium and requires custom-built solutions. Fragility and poverty are Development Goals (MDG) with funding until the end of 2015. not just about material possessions. All authoritative bodies, such Cordaid had been organized and equipped to prioritize program- as the World Bank, the African Development Bank and OECD, ming rather than funding needs. Human and financial resources confirm the importance of a combined focus on the income and have been aimed more at program development than toward non-income dimensions of poverty. The MDG target to halve generating income and diversification of donors. This is unsur- extreme income poverty (less than USD 1.25 per day) overlooked prising as MFS and Cordaid’s success in attracting funds from many other deprivations; those living in poverty certainly value our own individual donors meant to some extent that value income, education and healthcare, but equally they want propositions were supply driven. From 2016, Cordaid will be a freedom from fear and violence, social inclusion and honest grant-seeker rather than a grant-giver. The challenge is formida- governance. The recently adopted Sustainable Development Goals ble. We need to diversify our donor base drastically and acquire (SDGs) (UN, September 2015) reflect this recognition in concrete new funding partners across the different donor segments: terms. Cordaid’s FCAS focus dovetails closely with many of the SDG through our income and non-income approach.
Institutional Institutional Grant-making Philanthropic Private Private Multilateral Bilateral foundation organizations sector Fundraising The fragility challenge Cordaid works in different stages of fragile contexts, all of them Why fragility? requiring specific approaches. When natural disaster strikes or Cordaid’s mission remains the same: building flourishing conflict erupts, there is an immediate need to provide those communities in the most difficult area of development affected with basic survival tools. Once those are met, humani- cooperation - fragile and conflict-affected situations (FCAS). tarian aid becomes the first step towards restoring broken Why this difficult and high-risk focus? Today, around 1.2 billion communities. It is the most logical starting point for an people, or 17 out of every 100 people in the world, live in integrated approach to much needed interventions in other countries affected by fragility. In FCAS, fundamental human areas. An integrated approach for Cordaid means working to needs go unsatisfied, women are unsafe and exploited, children put in place our three cornerstones: are malnourished and not in school, young people lack opportu- ▪▪ security and justice nities to build their own future, and communities are divided Security systems that respond to vulnerable communities’ and insecure. Poverty is increasingly concentrated in FCAS need for protection and justice – without these people and – according to the World Bank, the UN and OECD, by 2030, communities lack the capacity to move beyond survival. two-thirds of all poor people could be living in fragile situations. ▪▪ governance and services If action is not taken now, global poverty will remain and Public institutions have to be responsive to the needs of people refugee and migration streams will continue to increase. living in fragile contexts. This response ranges from granting access to quality social services, such as healthcare and
a education. By designing and providing services in a stable and otal billion billion sustainable way, the social contract between people and government is strengthened and government is legitimized. ▪▪ economic opportunities Inclusive economic growth is a vital condition for reducing fragility. It allows private and public sectors to function CA in a way that means all can participate actively in healthy economic activity. This requires capital to finance 2015 2025 entrepreneurs who will provide food, employment, health About o t e o all oor eo le and other services. People also need banking services, such o ulation li e in A li e in A as savings accounts and insurance to cover setbacks.
Tough choices Absolute o ert is increasin in A During the reporting year, the shift in focus to the SDGs and
CA C A changes in the funding environment have meant that Cordaid
1 had to develop and implement a viable strategy that would O CD 201 201 ensure continuity into the future. Tough choices had to be made. Cordaid had to be right-sized in terms of organization
32 MAY 2016 © CORDAID Our Strategy for the Future CORDAID 2015 ANNUAL REPORT
and personnel (see Our People) and we had to focus on those long-term expertise in a more integrated and efficient way: activities where we could best deploy our expertise and Humanitarian aid, Healthcare, Economic Opportunities, resources, both human and funding. This has meant we were Education, Security & Justice, Resilience and Investments. obliged to discontinue funding of certain programs and In this report we have covered the BUs as this approach best projects and wind-down a number of partner relationships. reflects the (administrative and financial) year under review. In terms of internal organization, we have moved from our original 10 business units (BUs: Healthcare, Education, SWOT analysis Security & Justice, Food Security, Entrepreneurship, We started the strategic review with an incisive SWOT analysis Investments, Urban Matters, Women’s Leadership, Extractives that maps our strengths, weaknesses, opportunities and and Disaster Risk Reduction) to themes that bring together our threats. This is what our SWOT looks like:
CORDAID’S STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
Strengths Opportunities ▪▪ strong focus on fragile and conflict-affected contexts using a ▪▪ Sustainable Development Goals set clear global agenda to 2030; multi-disciplinary approach based on long-standing, goals on financing of least-developed countries (LDCs) set in the professional experience in countries and a broad global and Financing for Development (FFD3) Action Agenda; local network (Caritas and partners); ▪▪ Growing sense of urgency worldwide on tackling root causes ▪▪ community-based and managed approaches and and consequences of conflict and fragility; implementing power; ▪▪ Global for-profit sector more aware for environmental, social ▪▪ capacity to innovate and generate solutions and impact and governance issues (ESG) – potential for partnerships and through major, long-term systematic change across several innovative funding and instruments; disciplines; ▪▪ Increasing importance of open-data driven transparency, ▪▪ availability of investment funds, enabling us to add value to continuous learning and engagement with clients with a our products and programs and link up to innovative view to co-creation; financing for development; ▪▪ Growing demand for accountability on results and impact; ▪▪ transparency (IATI, EITI) and open data to enable continuous ▪▪ New donors emerging, both institutional and private; learning and co-creation; ▪▪ Slowing of decline in support for large development ▪▪ strong reputation as an innovative thought-leader with high organizations by Dutch society with growing numbers of integrity, coherent principles and vast convening power; individuals looking for engagement; ▪▪ a firm base in Dutch society with close to 300,000 private ▪▪ New strategic partnerships with the Dutch government; donors; ▪▪ Ability to reinforce multidiscipline programming and ▪▪ membership of important Boards (Concord, CIDSE). linking relief to development for high value programming.
Weaknesses Threats ▪▪ Perceived as grant-giving institution with related culture ▪▪ Less political support for social and economic development in rather than implementing partner; Dutch parliament; and decreased budgets for overseas ▪▪ Non optimized links between programs; development aid (ODA); ▪▪ Still building strategic and practical alliances/partnerships ▪▪ Dutch budgets for overseas development aid (ODA) decreasing to enhance programming power and fundraising capacity; while rising cost of the refugee crisis taken from ODA; ▪▪ Scattered and diffuse visibility of Cordaid Brand – both ▪▪ Dutch development funds and decision-making transferred proposition and awareness – represented by multiple to EU and European Commission redistributing aid budgets sub-labels. to counter more ad hoc challenges; ▪▪ Grants and/or investments in fragile and conflict-affected areas are high risk; ▪▪ Philanthropists and other private donors want to define (at least the direction) how funding is used, making it more difficult to attract unrestricted funding internationally, hampering growth and innovation; ▪▪ Own contribution and restricted overhead recovery on large institutional donor contracts; ▪▪ Inflated expectation among donors as to the role of the private sector in solving financing for development, especially in fragile and conflict-affected areas; ▪▪ International security-based thinking undermines development budgets and security-related incidents/events impact programs; ▪▪ Shrinking security and space for INGOs to operate in some countries.
MAY 2016 © CORDAID 33 CORDAID 2015 ANNUAL REPORT Our Strategy for the Future
Based on our SWOT analysis, we have structured a strategy that We maximize the social impact of our work by: meshes with our deep expertise and knowhow but is also based ▪▪ moving our programs/propositions/products to a maturity on the realities of future challenges in terms of programming, level that enables us to realize innovations, large-scale fundraising, financial health and reputation. We have formulat- interventions and meaningful impact; ed a strategic framework for the coming years that will guide our ▪▪ broadening, growing and engaging our international and work and define all KPIs. Moreover, it is fully in line with nine of local donors and investor base; the 17 Sustainable Development Goals (SDG) to 2030 that were ▪▪ increasing our expertise, experience, skills, competencies agreed by world leaders in September 2015. and the diversity of our staff; ▪▪ building effective partnerships, positioning, funding potential and by adding value to program quality and implementation capacity; ▪▪ growing and strengthening our investment funds.
We reinforce our reputation by: ▪▪ excellent and demonstrable impacts; ▪▪ building a stronger Cordaid brand, endorsed by all our consumer labels; ▪▪ a far-reaching use of open data and further linking up to the open development movement; We have selected nine as these are focused on areas where we can ▪▪ becoming a thought leader on building flourishing increase specialization and impact. This is what that framework communities in fragile contexts, both at international and looks like: national level; ▪▪ reinforcing our evidence-based lobby and advocacy; We strengthen our focus by: ▪▪ continuing to enhance our relations, increase our ▪▪ ensuring everything we do fits unequivocally with our engagement with and grow our relevance to our donor base mission; and stakeholders in the Netherlands; ▪▪ prioritizing the top 21 fragile regions rather than the ▪▪ combining fundraising and communications expertise into current 46 countries; issue-campaigning expertise; ▪▪ working on nine selected programs and products rather ▪▪ combining all online engagement expertise and reinforcing than the 24 value propositions we had in 2015. This selection our online outreach. is based on proven track record and reputation both in fund-raising and execution. It looks like this:
ALIGNING OUR PROGRAMS AND PRODUCTS TO THE SDGs
SUSTAINABLE DEVELOPMENT GOALS 2030
RURAL & AGRICULTURAL CORDAID HEALTH FUND FUND INVESTMENTS STABILITY IMPACT FUND
WOMEN ECONOMIC LOCAL FOOD LEADERSHIP WATERSHOPS OPPORTUNITIES VALUE CHAIN INSTITUTE (WLI)
SEXUAL BUILDING STRATEGIC REPRODUCTION & DISASTER PARTNERSHIPS HEALTH (SRH) HEALTHY WOMEN RBF EDUCATION RESILIENT AND HEALTH SYSTEMS AND GIRLS (HWG) GOVERNANCE UNLOCKING COMMUNITIES NETWORK STRENGTHENING WOMEN WASH AND SERVICES YOUTH URBAN PARTNERS (HSS) LEADERSHIP POTENTIAL RESILIENCE RBF HEALTH INSTITUTE (WLI) URBAN LINK SOLAR FOR SHELTER2HABITAT HEALTH
WOMEN 4X4 JUSTICE LEADERSHIP RBF SECURITY INSTITUTE (WLI) UNDERSTANDING COMMUNITY AND JUSTICE BAROMETER FOR COMMUNITIES SECURITY WOMEN ARCHITECTS SECURITY TRUST BUILDING
FOOD SECURITY HUMANITARIAN AID HEALTH EDUCATION BAROMETER WASH N.A. SHELTER PROTECTION GIRO 555 NUTRITION
GLOBAL INDEX CLUSTERS
34 MAY 2016 © CORDAID Our Strategy for the Future CORDAID 2015 ANNUAL REPORT
We enhance our funding activities by: A risk profile by country can be found on our website: ▪▪ managing our finances to enable building of reserves for www.cordaid.org/en/countries. Furthermore, we have identi- continuity and innovation; fied other risks over which we have some influence. These are ▪▪ establishing and maintaining a result-oriented culture financial (see also Financial Statements, page 42), operational based on openness, compassion, pride and determination. and competence/cultural. More detail on risks and their mitigation can be found on our website, www.cordaid.org. G4-14 How we manage risk Like all organizations, Cordaid is exposed to risk. Our interna- The revised strategy for the coming years takes the expanded tional organization is big and complex. We operate in difficult SWOT into account. An extensive analysis of related risks, our areas, which implies huge financial and reputational risks. risk appetite and how we identify, manage and mitigate those A solid risk management approach and structure are needed risk is in the final phase of completion. It will be posted on our to protect our work from these risks. Cordaid has chosen to use website in late spring of 2016. of the three lines of defense model. Organizational aims for 2016 These three lines are: ▪▪ Continue to enhance our local impact in fragile and conflict- 1. Operational management, on a day-to-day basis, with affected areas, also by further improving administration, controls that are integrated into systems and processes. The finance, programming and reputation. Complete the Control and Compliance unit has an important role in the rationalization of our presence in certain countries and the development of these systems and processes. diversification of the type of presence. Attracting local 2. The second line is risk management and compliance funding will be a priority. functions. As a single line of defense is often inadequate, ▪▪ Further implementation of a streamlined and focused One some specialized functions have been put in place, such as Cordaid to meet the challenges of the future. This includes a a risk manager or a risk committee, compliance officers to fully integrated and more effective brand and communica monitor specific risks such as noncompliance with tion strategy, reinforced corporate culture and behavior. applicable laws and regulations, or for specific types of ▪▪ Further optimization of funding by broadening the donor compliance monitoring such as the health & safety, supply base to institutions, private foundations and individual chain (procurement), corporate social responsibility, philanthropists. quality and controllers that monitor financial risks and ▪▪ At least €26.25 million raised from individual donors in the financial reporting issues. Netherlands. 3. The last line of defense is the internal auditors, who ▪▪ Maintain targeted tender success rate at 40%. provide assurance on the effectiveness of governance, risk ▪▪ Employee satisfaction >7, an aim that is especially important management and internal controls. given the great changes that have taken place in the organization. Program-related risk In light of our focus on the most dangerous regions of the world – fragile states and conflict-affected areas – our pro- gram-related risks can be significant. We take all risks into account when committing to a program or product. However, the threat or presence of risk does not deter us from pursuing our commitment to building flourishing communities because we are convinced our work is vital. In practical terms, we have in place comprehensive safety protocols for our personnel working in high-risk countries. Safety training is always given ahead of international deployment, a program that again proved essential in 2015. We were again obliged to pull out our team from the Central African Republic. In South Sudan our offices were looted and two of our colleagues were shot. They have since recovered and all teams were back in place by year-end but on an ‘essential personnel’ basis only.
MAY 2016 © CORDAID 35 CORDAID 2015 ANNUAL REPORT OUR PEOPLE
G4-9 OUR PEOPLE
The reporting year, 2015, was a transitional period for Cordaid’s conflict-affected areas. This focus is well in line with the organization. During the period 2011 to 2015, Cordaid had Sustainable Development Goals determined by the United managed significant funding made available by the Dutch Nations in the fall of 2015. Throughout 2015, Cordaid and the government (MFS II) and aimed at the Millennium Human Resources team, has been engaged in creating and Development Goals (MDG). The end of this kind of structural embedding an organizational structure that meets future co-funding through MFS II required Cordaid to make tough needs and reflects future realities (see also the section on choices. In terms of programs and projects and personnel, the Strategy that outlines Cordaid’s new focus). The process of organization had grown to meet the needs of achieving the analyzing and ultimately building the right organizational MDG, with Cordaid often acting more as a grant-giver than a structure started at the beginning of 2015. The HR team grant-seeker. With future funding less certain, Cordaid began prepared a structured process. It was based on the premise that transforming to a grant-seeker as early as 2013. without a clear process people would feel more anxious, morale At the same time, Cordaid also began structuring the organi- would not be at the high levels usual at Cordaid, and a process zation to meet the challenges of the post-MDG working would be more useful for the Works’ Council. This was always environment. The final phase of that right-sizing was carried going to be a challenging year. The process structure was out during the reporting year. This was crucial so that Cordaid communicated in the early part of the year, informing person- could ensure the continuity of its programs and projects as an nel about what needed to happen and why. Obviously, the most integrated, flexible organization that is open to the develop- difficult issue for most colleagues was the essential reduction ment of new skills and behaviors. in head count. At the same time, Cordaid people are well-edu- cated professionals and the need for change and refocus of Organizing for the future resources was well understood. The majority of peer NGOs are The goal has always been to ensure continuity and effective- going or have gone through similar exercises. ness with specific focus on the most fragile and
THE NEW ORGANIZATIONAL STRUCTURE
ana ement eam
oar C O C O
R
C C I I C
M A I I
D I M C IC A
A M D O O R D
O O
36 MAY 2016 © CORDAID OUR PEOPLE CORDAID 2015 ANNUAL REPORT
HEAD OFFICE COUNTRY OFFICES
Number of FTEs 1-1-2016 186 (2015: 256; 2014: 247) 254 (2015: 254; 2014: 238)
Number of employees 197 including MFS II closing team, thereafter 175 254 (2015: 254; 2014: 49) 1-1-2016 (2015: 266; 2014: 282)
Composition staff: 2015: 62% F (165 employees) / 38% M (101 employees) 2015: 28% F (14 employees) / 72% M (36 employees)* 2014: 65% F (183 employees) / 35% M (99 employees) 2014: 26% F (13 employees) / 74% M (36 employees)*
Senior positions 2015: 38% (100 employees out of 266 in total) / F 28% 2015: 88% (44 employees) of which 12 employees F (27%)* (salary scale 11+) (62 employees out of 165) / M 38% (38 employees out of 101) 2014: 100% (49 employees)* 2014: in total 46% (131 employees out of 281 in total) / F 40% (74 employees out of 183) / M 57% (57 employees out of 99) * excludes local hires
AGE RANGE* NATIONALITIES*
60 250
50 200 2% 10% 40 32 150 33 20 249 30 26 12 100
20 33% 15 15 55% 50 12 25 10 23 23 21 15 29 4 12 14 2 8 13 1 8 11 11 0 0 1 0 1 <21 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 >66 Asia Dutch countries countries Male Female USA/Canada Other European Latin American European Union African countries
*excludes local hires *excludes local hires
EDUCATIONAL LEVEL (ALL EMPLOYEES)* Defining, analyzing and preparation 60 The first step was to analyze the current structure, the finan- cial situation and current strategy. Starting points, guiding
50 principles, goals and results were formulated ahead of the 2% preparation phase that launched in the spring of 2015. By 10% working systematically through the structural options, 40 32 working groups created a proposed design that included how 33 20 Cordaid would be organized, what specific jobs would involve, 30 26 job descriptions and relevant training. Ultimately and follow- 12 ing extensive dialogues with management and staff (the latter 20 33% specifically through interaction with the Works’ Council) 15 15 55% Cordaid opted for a functional organization. 12 25 10 23 23 21 Implementing the new structure 4 15 1 8 11 11 0 1 From mid-2015, the implementation phase began to right-size 0 1 <21 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 >66 Cordaid through a tightly orchestrated process. Upon comple- tion at the end of 2015, Cordaid continues its focus on fragile Academic education Male Female and conflict-affected regions. However, we reduced the number Higher professional education of focus activities to those that have proved to have the most Lower Vocational education impact and the number of countries where we work from Secondary education 46 to 22. This changed business model requires a new way of working: more flexibility, new skills and behavior. *excludes local hires
MAY 2016 © CORDAID 37 CORDAID 2015 ANNUAL REPORT OUR PEOPLE
Future-proofing Training and career development As part of the right-sizing process, during 2015, Cordaid also Training remains high priority at Cordaid. In line with put in place an integrated and integral Human Resources organizational shifts and focus, essential skills will be defined policy. As part of this shift and to increase flexibility in and educational programs developed for all personnel. During (international) deployment, Cordaid people will have the same 2015, around 165 or about 80% of all staff members participated labor and employment conditions wherever they are based. in various educational programs, including language courses However, there are extra facilities (such as housing, hardship and Cordaid’s theory of change. Experts in Open Data gave allowance, cost of living allowance) for expats in order make it ‘train the trainers’ courses and workshops to colleagues and possible to work abroad. partner organizations in Burundi and Uganda.
Three main focus points have been identified, all related to and Health & Safety contributing to the successful execution of Cordaid’s strategy. For personnel in the Netherlands, Cordaid meets all regulatory These are: requirements on health and safety relating to the workplace. Our expats at international offices and colleagues who travel One integrated Cordaid, one staff regularly have frequent medical checks specifically designed ▪▪ One HR system for all personnel; for their work place. On safety, we have comprehensive safety ▪▪ One set of labor conditions. This structure has already been protocols in place and dedicated plans for each individual put in place and will be further elaborated into the future; country where we work. We have a Safety, Security and Crisis ▪▪ One team, more diversity; Committee and a Safety Advisor that develop related policies, ▪▪ One labor policy. oversee their implementation and manage crises. These can include evacuations. Safety training is always provided ahead Flexibility of international deployment and travel and for visiting staff, ▪▪ Flexible labor (shorter-term, diversity, geographic with refresher courses every two years. flexibility); ▪▪ Flexible working (roles rather than ‘positions’, not confined Monitoring health to a single ‘department’); The Human Resources (HR) team is responsible for developing ▪▪ Flexible working methods (projects). and monitoring policy on working conditions. The results and plans for the current year are reported annually to the Board of New skills and behavior Directors. Every two weeks, the ‘Cordaid company physician’ ▪▪ Development of necessary skills; visits us to give advice to both employees who are absent due to ▪▪ Development of organizational culture of cooperation, cost illness and to managers on how to monitor this process. Such awareness, innovation, and motivational attitudes such as dialogues are part of the established process of helping staff company pride and sharing; return to work, usually involving a so-called reintegration ▪▪ Development of efficient processes. process. Our goal is to keep absenteeism due to illness to below 3.5%. We are gratified to report that the average for 2015 was These components have been incorporated into a number of stable and well below our target at 3% (2014: 3.02%). deliverables in the Business Plan for 2016. A report on progress will be included in the 2016 Annual Report. What our people say Communication is a key factor in all our activities and is even Flexible working more important during this transitional period. Cordaid has its Work on a number of practical components had already started own intranet, ‘Coconut’, that is accessible for all personnel, before the organizational restructuring was launched. In 2014, both in the Netherlands and around the world. ‘Policy weeks’ Cordaid began a ‘New Workplace’ pilot for about 80 participants are organized regularly for colleagues from Country Offices and or 25% of our colleagues in The Hague and including the Board management so that they can meet and discuss developments of Directors. The aim was for our people to have a so-called and issues with personnel in the Netherlands. ‘Cordaid activity-related workplace rather than fixed offices. The idea is Mornings’ are regular meetings for all staff and are well to provide a more inspirational working environment and to attended. They are used to provide feedback on topical issues reduce the amount of office space needed, also as part of and to inform staff on important issues. Normally, Cordaid reducing environmental footprint. The lessons learned here is carries out regular randomly-sampled staff surveys. In 2015 the that less work places/square meters than originally anticipated dialogue on the organizational transition was so intense and are needed. However, our people expressed a need for more frequent that no formal surveys were carried out. However, ‘quiet spaces’ and these have been added so that people can standard practice is to tackle minor issues emerging from concentrate without distractions. Working more from home is surveys immediately. Larger points can take more time to also an option although people seem to prefer to work in the resolve. Action to be taken is also posted by the Board of office. At year-end 2015, 54% of Cordaid people in The Hague had Directors on the intranet. All personnel in The Hague are also moved to ‘new workplace’ environments. represented by an active and committed Works’ Council. It meets at least twice a year with the Chairman and a member of the Supervisory Board and has regular meetings with the CEO. Cordaid’s Works’ Council provides major input on a variety of topics and has been closely involved in the planning and implementation phases of our ongoing transition.
38 MAY 2016 © CORDAID SUPERVISORY BOARD REPORT CORDAID 2015 ANNUAL REPORT
SUPERVISORY BOARD REPORT
For Cordaid, 2015 was a period of profound change. At the end and women who are able to deal with the needs of the time. of the reporting year, in some respects Cordaid was a different Although guaranteed funding is less than in previous years, organization than it had been at the start of 2015. there are clear indications that cooperation with partner As Cordaid's Supervisory Board (SB), we can look back on a organizations, such as Caritas Internationalis, CIDSE and well-managed and successful transition. others, will ensure Cordaid is just as effective in its focus on programs in fragile and conflict-affected countries. The year under review At the start of the reporting year, Cordaid set a strategic aim: Quality of supervision ‘at the end of 2015 the organization will be ready for a future Proper supervision of the changes in the financial, organiza- without the Dutch co-funding framework (MFS II)’. The tional and social working environment is a priority for the SB. Supervisory Board (SB) is gratified to report that the essentials In 2014, this perception had already led to a review by the SB of required to achieve this aim had been put in place within the its approach to supervision. The SB takes the view that its timeline. At the end of 2015, the SB had reviewed and ultimate- involvement should not be limited to monitoring financials ly approved a clear plan for a future in profoundly changed and organizational issues at given times of the year. Its role is circumstances. The SB has overseen every aspect of this new to monitor activities and the longer-term horizon. So super strategic approach. It has proved a demanding task especially vision should take the form of ongoing and comprehensive for the organization itself, its activities, financials and person- monitoring of Cordaid’s continuity. During 2015 and based on nel. The challenge going forward relates to the main character- the supervisory backdrop and context that financial, organiza- istic of the new strategy presented by the Board of Directors tional and social change has created, the SB has been proactive (BoD) to the SB for approval: Cordaid must focus. This can mean in pursuing a relevant and appropriate supervisory model that focus on specific countries. But also on the kind of activities is more a continuous process than a periodic snapshot at key the organization undertakes based on the presence of qualify- times of the year. ing expertise within Cordaid before competing for funding. Hard decisions had to be taken. That is why it has reduced the Composition of the Supervisory Board number of countries where it operates to 22 from 46. Activities The SB comprised nine members until mid-2015 when Karien have been streamlined and, in some cases, integrated into the van Gennip stepped down. We are very grateful for her sev- One Cordaid approach that aims to stimulate an even more en-year commitment and contribution to Cordaid. We are just focused approach to work on specific issues. Some activities as grateful to Susana Menendez who left the board at year-end have been discontinued. There have been consequences for 2015 after four years of service. Theresa Fogelberg had stepped those whose jobs could not be continued but also for those who down at the start of 2015 according to rota. Our thanks to her remained and have taken on new tasks and responsibilities. as well. Brigit van Dijk-van der Reijt joined the SB on January 1, 2015. The SB’s full profile is published on the Cordaid website. Focus and flexibility In line with this profile, all members have specific experience In spite of all the measures taken to prepare the organization relevant to our activities. The SB’s composition is diverse for what can only be described as a very different future in terms of gender. Four of the nine members are women operating environment, ‘focus’ is still no absolute guarantee of (for full biographies of all SB members, please visit our website: continuity. So it was essential to incorporate another element www.cordaid.org/organization). From 2013, SB members are into the new strategy and organization: flexibility. This is appointed for a maximum of two four-year terms. imperative for the future of development cooperation itself and most obviously for disaster relief. In this respect, it is extremely Practical supervision helpful that some funders are still willing to provide donations The SB comes together at least six times a year at prescheduled without preconditions. This contributes to the organization’s meetings and additional formal meetings can be convened if ability to cover overhead costs and most importantly to deemed necessary. Between meetings, there is significant Cordaid’s ability to work flexibly. Priorities can change for informal communication between SB members and the BoD; many reasons. The goals of a funding organization on which the SB Chair and the CEO have regular monthly contact. This Cordaid is dependent can shift. Situations in countries can enables SB members to remain up to speed on developments as deteriorate making their need more urgent or obliging Cordaid they occur and gives them the thorough information they need to discontinue activities. The uncertainty of what lies ahead to give approvals for action where needed. In 2015, the SB met demands flexibility. With the new strategic plan, Cordaid is seven times and attendance at prescheduled meetings was 80% much better placed and more equipped to address the chal- (2014: 90%). The BoD is tasked with providing full information lenges of the new development cooperation reality. For the SB, to the SB so that it can carry out its supervisory responsibili- the quality of the people, both in The Hague and in the country ties. Information and reporting flows to the SB are managed offices, also gives hope for the future. Although fewer in number, by the BoD based on the CEO’s organizational responsible for Cordaid is made up of committed and very professional men Cordaid’s staff departments and the COO (until September) and
MAY 2016 © CORDAID 39 CORDAID 2015 ANNUAL REPORT SUPERVISORY BOARD REPORT
CORDAID’S SUPERVISORY BOARD
BOARD MEMBER APPOINTED RETIRING ELIGIBLE FOR AUDIT REMUNERATION (INTERNATIONAL) DEVELOPMENT JUSTICE/ WOMEN’S SUSTAINABILITY REAPPOINTMENT COMMITTEE COMMITTEE FINANCE/ COOPERATION HEALTHCARE ISSUES (CLIMATE ECONOMICS CHANGE)
Ernst Hirsch Ballin 2013 2021 2017 ✔ ✔ (chairman)
Karien van Gennip 2008 2016 - ✔ ✔ ✔ (vice-chair until 15/7/2015)
Susana Menendez 2011 2019 2015 ✔ ✔ ✔
Kees Zevenbergen 2011 2019 2015 ✔ ✔ ✔ (vice-chair from 15/7/2015)
Michel van de 2011 2019 2015 ✔ ✔ Coevering
Jolanda van Bussel 2013 2021 2017 ✔ ✔
Maarten van Beek 2014 2022 2018 ✔ ✔ ✔
Sjaak de Boer 2014 2022 2018 ✔
Brigit van Dijk 2015 2023 2019 ✔ ✔ ✔ ✔ ✔
CFO’s (from September) same responsibility for the Business As CEO of Shell Solar he started a rural electrification project for Units (BUs) and Marketing & Funding. Where relevant, heads 50,000 homes in South Africa using autonomous solar systems. of departments or BUs present information directly to the SB. He is also a board member of Bio Energy Resources Ltd., a As in 2014, during 2015 the SB requested regular updates on company in Malawi that produces sustainable biofuel from particular topics at each prescheduled meeting. Specific focus Jatropha with a network of small-scale subsistence farmers. topics throughout the reporting year included developments Cordaid’s Chief Operating Officer, Henri van Eeghen left the on the Ebola pandemic; the situation in Burundi and South organization in September 2015 to take up a new challenge. We Sudan; and developments on the structure of Cordaid’s are grateful for his contribution to Cordaid over the almost six Investment activities. However, the main recurring topic was years of his tenure and wish him every success in his new role. the development of Cordaid’s new strategy, including the Plan to 2018 and the implications for both the organization itself Remuneration at Cordaid and the work it undertakes in fragile and conflict-affected Cordaid has a remuneration policy for executives that is areas around the world (see above). evaluated and reviewed periodically by the SB, most recently in 2013. Current policy adheres to and is in line with the recom- Supervisory Committees mendations of the Association of NGOs and Charitable The SB has established two permanent committees: the audit Organizations (VFI) and well within the Wijffels Code and and remuneration committees. If deemed appropriate and Normalization of Top Incomes Act (WNT) parameters. useful, the SB also appoints temporary ad hoc committees for Remuneration of executive directors (BoD) is fully compatible specific purposes. The Audit Committee consists of three SB with VFI and Wijffels Code recommendations and is based on a members, two of whom have specific financial expertise – for point-based weighting system that sets a maximum for each membership, see the table. The Audit Committee’s task is to director. According to policy, remuneration consists of a gross review annual and quarterly financial and audit statements salary, holiday allowance, social security contributions and and performance against annual budgets. Subsequently these pension-cost expenses. In 2015, salaries paid to executive are discussed and evaluated by the full SB. Recurring topics for directors amounted to €250,615 (2014: €243,075). Full details this committee include: can be found on page 42 the Annual Financial Statements. Staff ▪▪ audit plans and budgets; remuneration is governed by the Cordaid Conditions of Employ- ▪▪ internal audit reports; ment that also stipulates labor conditions. This Regulation ▪▪ continuity reserve policies and plans; includes salary scales for specific roles and responsibilities within ▪▪ guarantees and participations; and the organization. The Eprom format is used for job descriptions; ▪▪ quarterly and full-year financial performance against these are weighed by external experts and allocated to a salary budgets. scale. Cordaid is competitive in terms of working conditions and compensation compared to the overall NGO sector; we apply VFI The Audit Committee met three times in 2015 according to a guidelines to remuneration policy for the entire staff. prearranged schedule, including one meeting with the external auditors. The Remuneration Committee reviews policy Remuneration of the Supervisory Board and advises the full SB on executive compensation and related All SB members donate their time and expertise. They receive issues, including appointments. This committee met once in no remuneration for their work for Cordaid. Out-of-pocket 2015. A temporary committee of three SB members and the CEO reimbursement of expenses is made to cover the cost of was set up to develop the CFO profile, select and interview attendance at meetings and travel although a number of SB candidates. Following full SB review, this resulted in the members also donate these to Cordaid. During 2015 and to appointment of Willem Jan van Wijk in September 2015. further improve transparency, the SB decided these costs He is a senior Dutch finance professional with an extensive should be specified and published. In 2015, total SB-related background as controller and financial director of both corporate costs and travel expenses incurred were €11,029, of which organizations, such as Shell and TNT, and development projects. €2,437 can be considered reimbursements to SB members.
40 MAY 2016 © CORDAID HOW WE ARE GOVERNED CORDAID 2015 ANNUAL REPORT
HOW WE ARE GOVERNED
Cordaid’s funding comes from government grants, institution- Whistleblower Code al funding and donations from private individuals. As the Cordaid adheres to the Whistleblowers’ Code. We encourage recipient of public funds and the trust of hundreds of thousands and value any reports of suspected irregularities and there is a of individual donors, we have a clear duty of care. Moreover, clear and confidential reporting line. Employees who make as governance is one of the cornerstones of everything we do, reports in good faith are guaranteed confidentiality and their Cordaid itself must be accountable. We must ‘practice what we position shall not be disadvantaged as a result. We have a preach’. That is why governance is so important for Cordaid. counselor structure in place and both the Chief Executive Officer and Chair of the Supervisory Board can be approached About Good Governance directly with reports. Employees receive written feedback on G4-15 Good Governance covers how we are managed, how we are any report within eight weeks. Furthermore, Cordaid has a supervised, how we work with constituents and how the well-established Code of Behavior. Three colleagues have been interests of those constituents are taken care of. Cordaid’s designated as counselors who can be approached if employees governance is based on a two-tier system, with a Supervisory feel they have treated unfairly. The counselors act as confiden- Board (SB) overseeing the Board of Directors (BoD). Moreover, we tial intermediaries. have in place an International Advisory Panel that supports Cordaid’s strategic development and how we pursue our vision Accountability and mission. Our governance is described in full in the Articles In line with our adherence to Central Bureau for Fundraising of Association and in the Good Governance Code (both can be (CBF) best practice and requirements, we report annually on found in Dutch and English on our website: www.cordaid.org/ ‘accountability’. In fact, this whole annual report is about our governance). Cordaid has also received the Dutch Central accountability: what are we doing, where, why, with whom, Bureau of Fundraising seal of approval that monitors fund and how are we trying to get the best results and continuously raising organizations and incorporates the so-called Wijffels improve our outcomes and impacts. That is why we think that Code of Governance for NGOs and charitable organizations the following quick-reference guide to the three guiding – our certification was valid through 2015. principles of the CBF accountability report will be most useful to readers: Codes of Conduct & Quality Standards ▪▪ Governance: see page 41. G4-56 Our staff adheres to a number of Codes of Conduct (please see ▪▪ Effectiveness of our programs: see pages 6 to 22. www.cordaid.org/codesofconduct) that set clear guidelines for ▪▪ Stakeholders and our communication with them: how we behave and interact with other constituents and our throughout the report, but especially see pages 22, 23 to 29, working environment. The Code of Conduct was evaluated and and 38, including our pioneering ‘open data’. revised most recently in July 2013 and is applicable to everyone who works at Cordaid. We also have in place policies and codes on anti-corruption and sexual abuse. In terms of our social responsibility, Cordaid has a CSR policy, updated most recently in August 2014, and carries out an ISO 26000 self-assessment every year In 2015, the Partos 9001 requirements were tested at the same time. Partos is the Dutch association of NGOs working in development cooperation. Cordaid has now received the Partos 9001 seal of approval. From 2014, we have been gradually moving to CSR accountability according to the Global Reporting Initiative’s version 4.
MAY 2016 © CORDAID 41 CORDAID 2015 ANNUAL REPORT FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
CONTENTS annual accounts 2015...... 43 Introduction ...... 43 Balance sheet as of December 31, 2015 (after proposed appropriation of funds)...... 44 Statement of income and expenditure for the year ended December 31, 2015...... 45 Appropriation of funds...... 46 Performance indicators...... 47 Cash flow statement for the year ended December 31, 2015 ...... 48 notes to the balance sheet and statement of income and expenditure...... 49 other information...... 80 Provision in the constitution governing the appropriation of balances...... 80 Appropriation of result ...... 80 Country offices...... 80 Subsequent events ...... 80 Independent auditor’s opinion...... 81
42 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
ANNUAL ACCOUNT 2015
I Cordaid, the Catholic Organization for Relief and Development Overall spending on objectives amounts to €145.6m. is is Aid, has been providing emergency relief and fi ghting poverty €27.1m lower than in 2014. e larger share of this decrease is and exclusion in the world’s most fragile and confl ict-a ected due to lower spending on MFS II activities in 2015. Higher situations for more than a century. All our actions are rooted spending on emergency programs in the Dutch Relief Alliance in and inspired by Catholic social teachings: human dignity, (established in April 2015) partially compensated for the lower solidarity, subsidiarity and care of the common good. Based on spending on MFS II activities. these points of departure, we have added social and economic Costs of generating funds amount to €6.1m, which is €1.0m justice and the promotion of peace to help us achieve in our lower than in 2014 and budget. During the year and given the mission: building fl ourishing communities. fact that project income would be below budget, placing the budgeted fundraising percentage at risk, it was decided to ese fi nancial statements refl ect a detailed accounting of reduce spending on own fundraising. Cordaid’s activities in 2015 that are described in the previous Management and Administration costs grew from €4.2m in sections of this annual report. e annual accounts are an 2014 to €5.0 in 2015 (budget: €4.4m). e increase is due to the integrated part of Cordaid’s annual report. addition of a €2.4m redundancy provision that has been partly allocated to costs for management and administration. e reporting year was a transistional period for Cordaid. e ending of the Millennium Development Goals and related e Statement of Income and Expenditure shows a negative net co-fi nancing system (MFS II) of funding from the Dutch balance of €4.7m. e negative balance is caused by a one-o government to achieve them has led Cordaid to review its addition of the €2.4m redundancy provision, a net negative activities and organizational structure. e new development result on the Loans and Guarantees fund of €0.6m, and €1.7m landscape without MFS II prompted Cordaid to drastically in organizational costs not covered by organizational costs restructure its activities and reduce its workforce by approxi- allowances on donor contracts and income from fundraising. mately 30%. At the same time, as it transitions from grant-giver An amount of €1.4m of uncovered organizational costs was to grant-seeker, Cordaid is now challenged to fi nd new sources budgeted as negative balance for 2015. of funding while ensuring MFS II activities are properly fi nalized and projects still in progress are funded by other Looking ahead and in terms of income and recovery of organi- donors. e related transitional phases determined for 2015 zational costs, the fi nal phasing out of MFS II at year-end 2015 were implemented according to plan - all with the continuous can currently only be partially o set by alternative funding. ambition of building fl ourishing communities in the most is will put pressure on future fi nancial stability.Maintaining fragile areas of the world. expenditure on and quality of objectives (programs and projects) means Cordaid still faces a very challenging task in Total income in 2015 stands at €151.9m, a decrease of €36.6m increasing income and recovering costs in the near future. compared to the previous year, due primarily to the decline in MFS II income. Unfavorable macroeconomic factors for our e Hague, May 25, 2016 investment portfolio and a one-time write-o on outstanding loans are the main reasons for lower income from fi nancial assets.
MAY 2016 © CORDAID 43 CORDAID 2015 ANNUAL REPORT CORDAID 201 I A CIA FINANCIAL ST A M ATEMENTS
ALANCE EET A O DECE ER 1 2015
1 000 NOTE DEC 1 2015 DEC 1 201
Assets Fixed assets Tangible fi xed assets 5 1,283 1,345
Financial fi xed assets - Issued in connection with the objectives 6 55,279 52,179 - Investments 7 19,825 35,024 75,104 87,203
Current assets Stocks for emergency aid 8 96 411
Receivables 9 - Subsidies governments / organizations 22,593 46,321 - Receivable from legacies 5,395 5,251 - Other receivables 1,772 1,308 - Interest receivables 753 1,354 30,513 54,234
Cash and Bank 10 73,128 67,680
Total assets 180,124 210,873
1 000 NOTE DEC 1 2015 DEC 1 201
Liabilities Reserves 11 - Continuity reserve 9,875 12,275 - Earmarked reserves 8,795 10,915 - Other reserves 1,283 1,345 19,953 24,535 Funds 11 - Restricted funds 1,470 3,979 - Semi-restricted funds 8,859 5,798 - Loans & guarantees fund 93,323 93,964 103,652 103,741
Provisions 12 2,456 1,269
Non-current liabilities 13 - Project commitments 1,176 474
Current liabilities 13 - Project commitments 35,155 54,853 - Other current liabilities 17,732 26,001 52,887 80,854
Total Liabilities 180,124 210,873
44 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
TATE ENT O INCO E AND E PENDITURE 2015
1 000 NOTE 2015 UD ET 2015 201
Income - Own fundraising 15 26,750 28,983 25,844 - Third party campaigns 16 12,414 14,908 11,055 - Government grants 17 109,573 104,924 138,917 - Gains on fi nancial assets 18 2,133 3,342 8,655 - Investment income 19 211 0 3,517 - Other income 20 773 1,350 467
Total incoming resources 151,855 153,507 188,455
Resources expended Spent on objectives - Program costs: 21 Healthcare 56,854 56,932 68,584 Child & education 5,394 7,003 7,313 Disaster response 41,929 24,608 26,346 Women’s leadership 5,554 7,688 9,345 Extractives 3,612 5,366 6,226 Security & justice 5,557 4,443 12,122 Entrepreneurship 1,711 4,891 3,967 Urban matters 2,273 2,811 2,074 Cordaid Netherlands 12,184 11,181 12,195 Investments 2,650 4,755 7,769 Food Security 3,198 8,221 11,613 - Public information / awareness campaigns 4,561 5,395 5,743 - Other expenditure -4 0 -734 145,473 143,294 172,563
Cost of generating funds - Cost of own fundraising activities 22 4,561 5,395 5,789 - Cost of securing government grants 22 538 745 552 - Cost of obtaining income from 3rd party 22 898 900 730 campaigns - Investment Costs 22 90 140 53 6,087 7,180 7,124
Management and administration Management and administration cost 22 4,966 4,447 4,197
Total resources expended 156,526 154,921 183,884
Balance of funds -4,671 -1,414 4,571
TBD: Reuse of resources from loans and guarantees fund 7,195 PM 13,144
MAY 2016 © CORDAID 45 CORDAID 2015 ANNUAL REPORT CORDAID 201 F I A CIA INANCIAL ST A M ATEMENTS
APPROPRIATION O T E UND
e funds were appropriated as follows:
1 000 OR T E EAR ENDED OR T E EAR ENDED DECE ER 1 2015 DECE ER 1 201
Reserves
- continuity reserve -2,400 0
- other reserves -62 446
- earmarked reserves -2,120 183
-4,582 629
Funds
- restricted funds -2,509 -2,796
- semi-restricted funds 3,061 -3,230
- loans & guarantees fund -641 9,968
-89 3,942
Income from operating activities -4,671 4,571
-4,671 4,571
466 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
PER OR ANCE INDICATOR
In 2015, the following performance indicators were derived from the statement of income and expenditure:
PER OR ANCE INDICATOR 2015 UD ET 2015 201
- Income-to-spending ratio (% charitable activities vs. total incoming resources) 95.8% 93.3% 91.6%
- Program-to-spending ratio (% charitable activities vs. total resources expended) 92.9% 92.5% 93.8%
- Program management cost ratio (% program management cost vs. total program costs) 10.0% 8.5% 7.6%
- Fundraising ratio (% cost of generating funds vs. total incoming resources) 4.0% 4.7% 3.8%
- Dependency on MFS II grant (% MFS II vs. total income) 18.0% 30.1% 43.6%
- Own fundraising ratio (% cost of own fundraising activities vs. own fundraising) 17.1% 18.6% 22.4%
- Management and administration ratio (% vs. total resources expended) 3.2% 2.9% 2.3%
▪ Income-to-spending ratio: 95.8%. is is higher than in ▪ Fundraising ratio: 4.0% (budget: 4.7%). e improvement in 2014 (91.6%) and budget (93.3%). e main factor is the this ratio compared to budget is the consequence of lower spending of remaining balances in various prior-year funds spending on own fundraising and higher income from and additional funding for emergency projects resulting in government grants than budgeted. e drop in total income signifi cantly higher expenditure in this area as well. compared to 2014 explains the higher ratio compared to ▪ Program-to-spending ratio: 92.9%. is ratio is marginally 2014. above budget, but slightly below 2014. Total organizational ▪ Own fundraising ratio: 17.1% (budget: 18.6%). e ratio is costs remained stable compared to 2014, while to below budget as a consequence of the savings made in costs expenditure on objectives (programs and projects) decreased of own fundraising, amply o setting the decline in income due to the slowdown in MFS II activities in 2015. from own fundraising. ▪ Program management costs ratio: 10.0% (budget: 8.5%). ▪ Dependency on MFS II grant: 18.0% (budget: 30.1%). e Cordaid insists on maintaining this ratio as an e ciency share of income in Cordaid’s total income sharply decreased indicator, while the format of the Accounting Guideline 650 as activities were being wound down towards the end of the for Charities does not show direct program costs and MFS II period. program management costs separately. Cordaid considers ▪ Management and administration ratio: 3.2% (budget 2.9%). this an important e ciency ratio. e program management e Management and administration cost was above budget costs in 2015 were above budget, mainly due to the costs of mainly as a consequence of the creation of the redundancy the reorganization announced in 2015, while direct program provision, while other expenditures were mainly in line costs were in line with budget. Compared to 2014, program with budget. management costs increased, while direct program costs decreased. e slowdown of activities for MFS II-funded projects resulting in lower direct program costs. As all MFS II activities still have to be fi nalized and reported properly, program management costs could not yet be reduced.
MAY 2016 © CORDAID 47 CORDAID 2015 ANNUAL REPORT CORDAID 201 F I A CIA INANCIAL ST A M ATEMENTS
CA LO TATE ENT OR T E EAR ENDED DECE ER 1 2015
1 000 NOTE 2015 201
Cash fl ows from operating activities
Incoming resources 15-20 151,855 188,455
Resources expended 21-22 156,526 183,884
-4,671 4,571
Adjustments for:
- depreciation fi xed assets 5 391 403
- changes in provisions 12 1,187 -507
1,578 -104
Changes in working capital:
- Stocks for emergency aid 8 315 -59
- Receivables 9 23,721 -16,604
- Financial fi xed assets (connected to the objectives) 6 -3,100 -11,274
- Project commitments 13 -18,996 9,000
- Investments 7 15,199 2,770
- Other current liabilities 13 -8,269 6,956
8,870 -9,211
Cash fl ows from operating activities 5,777 -4,744
Cash fl ows from investing activities
- Purchases of tangible assets 5 -329 -849
Cash fl ows from investing activities -329 -849
Cash fl ows from fi nancing activities
Receipts / repayments of long-term borrowings 0 0
Cash fl ows from fi nancing activities 0 0
Net increase/decrease in cash 5,448 -5,593
e movement of cash and cash equivalents is as follows:
1 000 2015 201
Balance at January 1 67,680 73,273
Changes 5,448 -5,593
Balance at December 31 73,128 67,680
48 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
NOTE TO T E ALANCE EET AND TATE ENT O INCO E AND E PENDITURE
1 ENERAL NOTE Stichting Cordaid Participaties’ objective is to invest through loans or participation in social enterprises worldwide. e 1 1 A foundation has the same Board of Directors as Stichting Cordaid. Rooted in the tradition of Catholic Social Teachings, Cordaid seeks to bring about a sustainable world and o er humanitarian Cordaid Investment Management BV has the objective to act as aid through professional and e cient international development manager for one or more investment institutions. Currently cooperation. Cordaid focuses on sustainable development Cordaid Investment Management BV manages the social impact relationships with partner organizations globally, regardless of investment portfolio of Stichting Cordaid. Stichting Cordaid faith, origin or political convictions. From this point of departure, holds 100% of the shares of Cordaid Investment Management BV. Cordaid works in the fi elds of healthcare, disaster risk reduction, security and justice, education, economic opportunities, the Corpav BV makes direct and indirect investments in social provision of public information, lobbying and fundraising. enterprises all over the world. Stichting Cordaid Participaties is Cordaid is open to cooperation with like-minded organizations. the only shareholder of Corpav BV.
G4-4 Cordaid is a foundation. Its objectives as described in its Articles e street address of all foundations and BVs is as follows: G4-5 of Association (translated from the Dutch) are as follows: Lutherse Burgwal 10 G4-3 ‘In accordance with the evangelical message and inspired by the Catholic 2512 CB e Hague community in the Netherlands, the purpose of the foundation is to carry out e Netherlands activities focussed on: a. providing emergency and refugee aid; e Board of Cordaid bears ultimate responsibility for the b. providing aid to specifi c groups, such as the elderly, the disabled and general course of a airs at Stichting Cordaid. With the children; Supervisory Board, the Board is responsible for Cordaid’s c. providing medical aid; and corporate governance structure and compliance with good d. all aspects related to structural poverty relief of subordinated groups, governance rules. e composition of the Supervisory Board is especially in developing countries, and in Central and Eastern Europe and such that its members are able to act critically and inde- the Netherlands.’ pendently of one another, the Board and any particular interests. e Supervisory Board is responsible for supervising G4-17 e consolidated annual accounts comprise the fi gures of the the Board and the general course of a airs at Cordaid. following foundations: ▪ Stichting Cordaid, e Hague e Board is tasked with managing the foundation, including ▪ Stichting Cordaid Expats, e Hague running its day-to-day business and implementing its pro- ▪ Stichting Social Business Incubator, e Hague grams and activities. e budget, the Annual Report and the ▪ Stichting Cordaid Participaties, e Hague (established annual accounts that are prepared by the Board are subject to February 12, 2015) adoption by the Supervisory Board following advice from the ▪ Cordaid Investment Management BV, e Hague (established Audit Committee. e Supervisory Board also adopts the June 10, 2015) strategic policy plan drafted by the Board, and approves the ▪ Corpav BV, e Hague (established June 17, 2015) Annual Plan.
Stichting Cordaid Expats’ objective is to employ expatriates T C D 1 2015 working for Stichting Cordaid and has the same Board as ▪ S.L.J.M. Filippini, CEO Stichting Cordaid. ▪ W.J. van Wijk, CFO
e Stichting Social Business Incubator’s objective is to fi nd, D 2015 stimulate and develop new ideas that provide sustainable C solutions for environment problems, aimed at improving the ▪ E.M.H. Hirsch Ballin, Chair quality of life of those people at the bottom of the income ▪ C.E.G. van Gennip (until 15-07-2015) pyramid. e Chief Financial O cer of Stichting Cordaid is the ▪ M.S. Menéndez chair of the Board of Stichting Social Business Incubator and ▪ J.J.A. de Boer has the fi nal say in strategic decisions, according to the articles ▪ M. van Beek of the foundation. At the end of 2015, the Board of Stichting ▪ B.L.J.M. van Dijk Social Business Incubator decided to terminate activities in ▪ J.H.M. van Bussel, member Audit Committee 2016. Running projects will be fi nalized according to plan in ▪ L.C. Zevenbergen, member Audit Committee 2016, but new activities will not be started. ▪ M.C.T. van de Coevering, member Audit Committee
MAY 2016 © CORDAID 49 CORDAID 2015 ANNUAL REPORT CORDAID 201 F I A CIA INANCIAL ST A M ATEMENTS
e Board members of Stichting Cordaid Participaties and 1 C Stichting Cordaid Expats are the same as for Stichting Cordaid Cordaid made no changes to its policies for accounting esti- per December 31, 2015. mates compared to the previous year.
Stichting Cordaid Participaties is the only shareholder and 1 E Board member of Corpav B.V per December 31, 2015. In applying accounting policies and standards for preparing annual accounts, the Board of Cordaid is required to make At December 31, 2015, L.J.E. Chibrac is the only Board member estimates and judgments that might signifi cantly infl uence of Cordaid Investment Management BV. Stichting Cordaid is the amounts disclosed in the annual accounts. If necessary for the only shareholder. the purposes of providing the view required under Section 362(1), Book 2 of the Netherlands Civil Code, the nature of these e Board members of Stichting Social Business Incubator at estimates and judgments, including the related assumptions, December 31, 2015 are: are disclosed in the notes to the relevant items. ▪ W.J. van Wijk, Chair ▪ B.P. Alberda, Treasurer 1 5 C ▪ B.P. Meijs, Secretary e consolidation includes the fi nancial information of Stichting ▪ F.V. van der Have Cordaid and the entities in which it exercises control or whose central management it conducts. All entities in which Cordaid 1.2 Notes to the cash fl ow statement exercises control or whose central management it conducts are e cash fl ow statement is prepared using the indirect method. consolidated in full. e individual accounts of Stichting Cordaid e funds in the cash fl ow statement comprise cash and cash are not presented separately in these annual accounts because equivalents. Cash fl ows in foreign currencies are translated at the di erences between the consolidated and individual accounts an average rate. Exchange di erences a ecting cash items, of Stichting Cordaid are not signifi cant. e total value of interest paid and interest received are included in cash from eliminated intercompany positions in the consolidated balance operating activities. sheet amounts to €240k. is mainly relates to an outstanding payment of part of the management fee from Stichting Cordaid Cash fl ows from operating activities to Cordaid Investment Management B.V. e balance of income e positive gross cash fl ow from operating activities was and expenditure in the individual accounts of Stichting Cordaid mainly driven by the decrease in receivables of €23.7m and the is the same as on consolidated level. Stichting Social Business sale of an important part of the non-development investments Incubator accounts for a negative result in 2015 of €307. All other (€15.2m). entities included in the consolidated annual accounts of Stichting Cordaid present a fi nancial result of 0 in 2015. Other factors were: Intercompany transactions, profi ts and balances among ▪ provisions for back donors and redundancy that increased consolidated entities are eliminated, unless these results are €1.2m. An actual cash outfl ow of €0.9m and a release of realized through transactions with third parties. Unrealized €0.3m was o set by an addition to the provisions of €2.4m for losses on intercompany transactions are eliminated as well, the redundancy provision; unless such a loss qualifi es as an impairment. e accounting ▪ project commitments decreased €19.0m as a consequence of policies of group companies and other consolidated entities high payments on liabilities related to MFS II projects, which have been changed where necessary in order to align them to were all fi nalized at December 31, 2015; the prevailing group accounting policies. ▪ a net increase of the value of the portfolio of social impact investments (fi xed fi nancial assets related to the objectives) e consolidated entities are listed below: of €3.1m driven by new investments throughout the year ▪ Stichting Cordaid Expats, e Hague from revolved funds in earlier years; ▪ Stichting Social Business Incubator, e Hague ▪ other current liabilities decreased €8.3m. is can be related ▪ Stichting Cordaid Participaties, e Hague (established to the decrease in participations payable after fulfi lling February 12, 2015) payment obligations for several participations. Additionally, ▪ Cordaid Investment Management BV, e Hague (established the amount of grants received but not yet spent decreased June 10, 2015) €2.0m after spending a grant received at the end of 2014 ▪ Corpav BV, e Hague (established June 17, 2015) during 2015. e Board of Stichting Cordaid and Stichting Cordaid Expats Cash fl ows from investing activities and Stichting Cordaid Participaties is the same as the Board of Purchases of tangible assets came to €0.3m in 2015. Stichting Cordaid. Investments for new IT systems formed the greater part of this e Chief Financial O cer of Stichting Cordaid is the chair of c a s h o u t fl o w . the Board of Stichting Social Business Incubator and has the fi nal say in strategic decisions, according to the articles of the Cash fl ows from fi nancing activities foundation. Cordaid has no non-current liabilities for fi nancing its opera- Stichting Cordaid is 100% shareholder of Cordaid Investment tions. e non-current liabilities on the balance sheet relate to Management BV. long-term project fi nancing, which are recognized as cash Stichting Cordaid Participaties shares its Board with Stichting fl ows from operating activities. Cordaid and is 100% shareholder of Corpav BV.
5010 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
2 ACCOUNTIN PRINCIPLE provisions considered necessary. ese receivables are subse- quently measured at amortized cost. 2 1 G4-28 e fi nancial statements have been prepared in accordance Participations are valued at cost taking into account possible with the statutory provisions of Part 9, Book 2 of the Dutch impairments at reporting date. ese participations do not Civil Code and the fi rm pronouncements in the Guidelines for involve a structural commitment for the purposes of Cordaid’s Annual Reporting in the Netherlands as issued by the Dutch own operations. Accounting Standards Board. More specifi cally, the fi nancial statements have been prepared in accordance with the Dutch Investments: Accounting Standard for Fundraising Institutions (RJ 650). e fi nancial statements are prepared in euros. Balances and results in 2015 are compared with the budget as approved by the Bonds and shares are stated at fair market value. Any changes Supervisory Board and 2014 results and balances. Assets and in value and transaction costs are recognized through income liabilities are generally valued at acquisition cost, production or expenditure. Transaction costs are charged directly to the cost or at current value. If no specifi c valuation method is statement of income and expenditure. indicated, the valuation is done at the acquisition price. References are included in the balance sheet and statement 2 N of income and expenses. Cordaid assesses at each reporting date whether there is any evidence of assets being subject to impairment. If any such 2 2 C evidence exists, the recoverable amount of the relevant asset is e accounting principles used for valuation and recognition of determined. An asset is subject to impairment if its carrying income and expenditure are unchanged from the previous year. amount is higher than its recoverable amount; the recoverable amount is the higher of net realizable value and value in use. If 2 it is established that a previously recognized impairment loss no longer applies or has declined, the increased carrying amount of the asset in question is not set higher than the e fi nancial statements are presented in euros, which is the carrying amount that would have been determined had no functional and presentation currency of Cordaid. impairment loss been recognized.
T e net realizable value is determined based on the active Transactions in foreign currencies during the period are market. An impairment loss is directly expensed in the income included in the fi nancial statements at the exchange rate on statement. the transaction date. Monetary assets and liabilities denomi- nated in foreign currencies are translated into the functional Cordaid assesses at each reporting date whether there is currency at the closing rate. e exchange di erences arising objective evidence that a fi nancial asset or a group of fi nancial from the settlement and translation are credited or charged to assets is impaired. If any such evidence exists, the impairment the statement of income and expenditure. loss is determined and recognized in the income statement.
Translation di erences on non-monetary assets held at cost are e amount of an impairment loss incurred on fi nancial assets recognized using the exchange rates prevailing at the dates of stated at amortized cost is measured as the di erence between the transactions. the asset’s carrying amount and the present value of estimated Translation di erences on non-monetary assets such as future cash fl ows, discounted at the fi nancial asset’s original equities held at fair value through income or expenditure are e ective interest rate (i.e. the e ective interest rate computed at recognized through income or expenditure as part of the fair initial recognition). value gain or loss. If, in a subsequent period, the amount of the impairment loss 2.4 Tangible fi xed assets decreases and the decrease can be related objectively to an Buildings, IT equipment, furniture and fi ttings, vehicles and event occurring after the impairment was recognized, the other assets are all valued at historical cost or manufacturing previously recognized impairment loss shall be reversed. e price including directly attributable expenditure, less straight- reversal shall not result in a carrying amount of the fi nancial line depreciation over their estimated useful lives, and impair- asset that exceeds what the amortized cost would have been ment losses. Grants are deducted from the acquisition or had the impairment not been recognized at the date the manufacturing cost of the assets to which they relate. impairment is reversed. e amount of the reversal shall be recognized through profi t or loss. 2.5 Financial fi xed assets If an impairment loss has been incurred on an investment in Issued in connection with the objectives: an equity instrument carried at cost, the amount of the impairment loss is measured as the di erence between the L carrying amount of the fi nancial asset and the present value of Loans and guarantees disclosed under fi nancial assets are estimated future cash fl ows discounted at the current market recognized initially at fair value of the amount owed net of any rate of return for a similar fi nancial asset. e impairment loss
MAY 2016 © CORDAID 1151 CORDAID 2015 ANNUAL REPORT CORDAID 201 F I A CIA INANCIAL ST A M ATEMENTS
shall be reversed only if the evidence of impairment is objec- 2 11 P tively shown to have been removed. Provisions are recognized for legally enforceable or constructive obligations existing at the balance sheet date, the settlement of 2 which will probably require an outfl ow of resources whose Stocks are valued at cost using the fi rst in, fi rst out method extent can be reliably estimated. (FIFO). As soon as stocks are assigned to a project the related costs are recognized in the statement of income and expendi- Provisions are measured on the basis of the best estimate of the ture as program costs. In case of obsolescence of stock costs are amounts required to settle the obligations at the balance sheet recognized as program management costs. date. Unless indicated otherwise, provisions are stated at the present value of the expenditure expected to be required to 2 R settle the obligations. Receivables are initially recognized at fair value and subse- quently carried at amortized cost. Allowances for doubtful A maintenance provision for the future cost of maintenance of debts are deducted from the carrying amount of receivables. the building is not included in the fi nancial statements. If and when costs for maintenance of the building occur, the costs 2 C will be directly charged to the statement of income and Cash and cash equivalents comprise cash and bank balances expenditure. and demand deposits falling due in less than 12 months. Cash and cash equivalents are stated at face value. 2 12 L
2 10 R e equity of Cordaid is divided into the following reserves and Liabilities are initially recognized at fair value. Transaction funds: costs directly attributable to the incurrence of the liabilities are ▪ e continuity reserve is created to ensure that Cordaid can included in the measurement on initial recognition. Liabilities meet its legal and moral obligations in case of a signifi cant are subsequently measured at amortized cost; this is the fall in income in the future. amount received plus or less any premium or discount and net ▪ e tangible fi xed assets reserve is created to set aside of transaction costs. capital to fi nance necessary tangible fi xed assets in the future. O ▪ Earmarked reserves are earmarked for future spending on Liabilities under operating leases (such as the lease of premises) the objectives of Cordaid. e Board of Directors decides on are accounted for in the statement of income and expenditure the actual purposes of the reserves, based on internally equally over the term of the contract, taking into account agreed criteria. reimbursements received from the lessor. ▪ e restricted funds are earmarked for a specifi c project as agreed with third-party donors. P ▪ Semi-restricted funds are earmarked for activities related to Project commitments are recognized as soon as a contract is a certain topic, but not limited to specifi c projects. issued or when a grant decision is communicated in writing or ▪ e loans and guarantees fund has been committed for otherwise; they are stated at the fair value stated in the loans, guarantees and equities connected to the objectives of contract, net of any payments. Cordaid. e result on these fi nancial assets and the costs of managing this portfolio refl ect the changes in the fund in a year.
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ACCOUNTIN PRINCIPLE OR valuation of loans and participations, dividend and fees for T E TATE ENT O INCO E restructuring loans. AND E PENDITURE Gifts in kind are stated at their fair market value in the 1 Netherlands. Where items involving gifts in kind are sent Income and expenses are recognized in the statement of directly to emergency areas, their value is recognized as a gift income and expenditure in the year to which they relate. and as an expended resource. Cordaid accounts for gifts in kind e allocation is made consistently with previous years. e if the discount/gift has a connection with the nature of balance of funds is defi ned as the di erence between income Cordaid’s activities and objectives and Cordaid would have and expenses. Income is accounted for in the year it was purchased the services or goods if the gift/discount had not realized and losses are accounted for as soon as they are been received. i d e n t i fi e d . 3.3 Exchange rate differences 2 I Transactions denominated in foreign currencies conducted during the reporting period are recognized in the annual I accounts at the rate of exchange on the transaction date. Income from own fundraising involves gifts and donations, Monetary assets and liabilities denominated in foreign mailings, collections, legacies and the sale of materials. Income currencies are translated into the functional currency at the from gifts and donations, mailings and sales of materials are rate of exchange at the reporting date. Any resulting exchange accounted for in the year in which they are received/in which di erences are recognized through income or expenditure. the materials are sold. Exceptions are written undertakings Non-monetary assets and liabilities stated at cost and denomi- that have been received before year-end as these can be nated in foreign currencies are translated at the rate of accounted for in the current year. exchange at the transaction date (or the approximate rate of exchange). Legacies are recognized based on a statement received from the executor in the year in which the amount can be determined 3.4 Depreciations on tangible fi xed assets reliably. e valuation of legacies with property is done based Tangible assets are carried at cost less straight-line deprecia- on the most recent correspondence and receipts are included up tion over their estimated useful lives. Tangible assets are to the preparation of fi nancial statements. e valuation is depreciated from the time they are taken into use over their done prudently. estimated useful lives. Future depreciation is adjusted if the estimate of future useful life changes. Gains and losses on the I sale of tangible fi xed assets are included in depreciation. Income from third parties is accounted as such when Cordaid carries no risk in the fundraising campaign. e income from 3.5 Employee benefi ts third parties is recognized in the year in which the income is received or pledged. Short-term employee benefi ts Salaries, wages and social security contributions are recog- I nized in the statement of income and expenditure based on the Grants and subsidies are recognized in the statement of income pay and benefi ts package to the extent that they are payable to and expenditure in the year in which the subsidized costs were employees. incurred. e grants are recognized where it is probable that they will be received and Cordaid will comply with all attached P conditions. Cordaid’s pension plan is administered by the Zorg en Welzijn Pension Fund, a pension fund for the health and welfare sector. I Employees’ retirement and partner pensions are based on their e line item interest income and income from investments pensionable salary for full-time employment, net of the contains the (gross) interest, dividends and realized and state-pension o set. e pension fund endeavors to index-link unrealized capital gains. Interest income and expense are any accrued pension entitlements and pensions in payment recognized time proportionally. based on general salary trends in the collective bargaining agreements that govern its a liated employers in a particular Interest income is recognized as investment income exclusive year. e pension fund decides every year whether index-link- of interest received on loans and guarantees issued in the ing would be appropriate and, if so, what index to use given the context of the Loans & Guarantees Program, which is recog- fi nancial situation and expected developments in that situa- nized entirely as gains on fi nancial assets issued in connection tion. In doing so, the pension fund uses nominal and realistic with the objectives. coverage ratios as benchmarks. Although the pension fund may decide to apply catch-up index linking, such a decision will not R have a retroactive e ect and will not trigger subsequent e result of loans, guarantees and participations is made up payments. Index linking is funded partially from contributions of interest received on loans and guarantees under the Loan & and partially from the return on plan assets. e coverage ratio Guarantee Program, realized and unrealized changes in the was 97% at 31 December 2015.
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Contributions are recognized as employee benefi ts expense as INANCIAL IN TRU ENT soon as they are payable. Prepaid contributions are recognized AND RI ANA E ENT within prepayments and accrued income if they entail a refund or a reduction in future payments. Contributions payable are disclosed as liabilities in the balance sheet. 1
3.6 Financial income and expenses C Cordaid operates in the European Union, Africa, Asia, Latin- I America and the United States. e currency risk for Cordaid Interest paid and received is recognized on a time-weighted largely concerns positions and future transactions in US dollars basis, taking into account the e ective interest rate of the and currencies whose rate is closely related to the US dollar. assets and liabilities concerned. When recognizing interest Management has determined that the cost of hedging these paid, allowance is made for transaction costs on loans received currency risks does not outweigh the benefi ts. Natural hedges as part of the calculation of e ective interest. exist because receivables and liabilities are often related.
Changes in fi nancial instruments at fair value P Changes in the value of the following fi nancial instruments Cordaid invests its temporary cash balances according to a are recognized directly through profi t or loss: defensive to neutral strategy compared to a very conservative ▪ fi nancial assets and liabilities that are held for trading; policy in previous years. As a consequence Cordaid faces a ▪ purchased loans, bonds (unless held to maturity) and equity limited market risk related to its portfolio of bonds and shares instruments that are quoted in an active market; that is valued at market value. ▪ Decreases in value of fi nancial instruments at fair value are recognized through profi t or loss. Interest rate and cash fl ow risk Cordaid incurs interest rate risk on interest-bearing receivables (in particular those included in fi nancial assets and cash).
C Cordaid does not have any signifi cant concentrations of credit risk. Receivables mainly relate to grants from solid govern- ments or multilateral institutions.
L Cordaid uses several banks in order to avail itself of a range of overdraft facilities. Where necessary, further securities will be furnished to the bank for available overdraft facilities.
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5 TAN I LE I ED A ET
Movements of the tangible fi xed assets are as follows:
1 000 UILDIN IT E UIP ENT URNITURE E ICLE OT ER A ET TOTAL AND ITTIN
Balance at January 1, 2015
Cost 1,895 4,537 1,470 28 283 8,213
Accumulated depreciation -1,397 -3,838 -1,328 -22 -283 -6,868
Carrying value at January 1, 2015 498 699 142 6 0 1,345
Changes
Purchases 0 258 71 0 0 329
Disposals 0 0 0 0 0 0
Depreciation -63 -284 -39 -5 0 -391
Depreciation on disposals 0 0 0 0 0 0
Total changes -63 -26 32 -5 0 -62
Balance at December 31, 2015
Cost 1,895 4,795 1,541 28 283 8,542
Accumulated depreciation -1,460 -4,122 -1,367 -27 -283 -7,259
Carrying value at December 31, 2015 435 673 174 1 0 1,283
Depreciation percentages 10% 33% 20% 33% 33%
Total investments in 2015 amounted to €329k. e main investments were related to investments in IT systems replacing the current project administration, a new CRM system and the integration of the IT systems at all Cordaid country o ces. In addition, some small investments were made to complete the new Cordaid workspace, enabling sta to work more easily in project teams worldwide.
All assets are held for business operations.
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INANCIAL I ED A ET I UED IN CONNECTION IT T E O ECTI E
Outstanding loans, participations and guarantees are recognized as fi nancial assets issued in connection with the objectives. is relates to loans issued to and a number of participations in partner organizations for the purposes of funding usually small-scale economic activities (e.g. through microfi nance institutions), for which partner organizations fi nd it di cult or impossible to secure fi nance from commercial banks. Interest rates on these loans are determined by country and by customer.
Movements in fi nancial assets were as follows in 2015:
1 000 LOAN UARANTEE PARTICIPATION TOTAL
Value of portfolio at January 1, 2015 25,774 1,706 26,432 53,912
Provision at 1 January 2015 -1,733 0 0 -1,733
Carrying amount January 1, 2015 24,041 1,706 26,432 52,179
Changes in value of the portfolio
Loans and guarantees issued 12,126 2,000 0 14,126
Loans and guarantees repaid -7,686 -1,333 0 -9,019
Participations acquired/committed 0 0 -471 -471
Participations sold/commitments withdrawn 0 0 -1,491 -1,491
Impaired loans and guarantees (write-offs) -861 0 0 -700
Revaluation of participations 0 0 -1,426 -1,426
Currency gains and losses 1,383 108 1,218 2,709
Value of portfolio at December 31, 2015 30,736 2,481 24,262 57,479
Changes in the provision
Impaired loans and guarantees (write-offs) 861 0 0 861
Allocated to/withdrawn from provision for loans and guarantees -1,328 0 0 -1,328
Provision at December 31, 2015 -2,200 0 0 -2,200
Value of the portfolio at December 31, 2015 30,736 2,481 24,262 57,479
Provision at December 31, 2015 -2,200 0 0 -2,200
Carrying amount December 31, 2015 28,536 2,481 24,262 55,279
e provision on loans and guarantees increased by €1.3m in 2015 as a consequence of one loan that was prudently valued at zero after the discovery of a fraud case and resulting in an addition of €0.8m.
Loans and guarantees Loans and guarantees will fall due in the following periods:
1 000 LOAN UARANTEE TOTAL
< 1 year 2,813 0 2,813
1-5 years 26,548 2,481 29,029
> 5 year 1,375 0 1,375
30,736 2,481 33,217
5616 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
Participations Cordaid takes a prudent approach to the valuation of its participations. ey are carried at cost or at fair value if signifi cantly lower. Participations that have appreciated in value are measured at cost. Previously recognized impairments can be (partially) reversed, if the original reasons for impairment are no longer valid as long as the value does not become higher than original cost. Payments in foreign currencies are recorded at the current rate. Cordaid has the policy of selling all foreign currencies, besides US dollars, directly upon receipt. At the end of 2015 there was no currency hedging.
List of participations (in €1,000):
NA E O CIT COUNTR PARTICI OPENIN PURC A ED CURRENC RE A OLD CLO IN ACTI ITIE OR ANI ATION PATION ALANCE CO ITTED AIN AND LUATION ALANCE 2015 LO E 2015
Aavishkar Mumbai India 17.5% 1,292 1,292 Investment fund SME in India Afrinut Llongwe Malawi 10.4% - 0 Nut processor Bank Andarra Jakarta Indonesia 4.7% 569 -2 461 Loan related to via Hivos -106 investment in Triodos Fonds Indonesia Dia Vikas Gurgaon India 0.0% 2,500 2,500 Investment fund in (Uttar MFIs India Pradesh) Dia Vikas Gurgaon India 6.0% 1,447 95 -218 1,324 Investment fund in (Uttar MFIs India Pradesh) Finance South Juba South Sudan 74.0% - 0 MFI Sudan FPM SA Kinshasa DRC 17.2% 3,100 3,100 Investment fund for Financial Institutions DR Congo InReturn B.V. Rotterdam Netherlands 21.6% 349 -36 313 Investment fund SME Africa Kuyichi Den Haag Netherlands 0.0% - 0 SME International B.V. Liberation Londen UK 19.9% 170 170 Nut producer association Oikocredit Amersfoort Netherlands 0.0% 330 -330 0 Investment social investor PEAK II LP Moshi Tanzania 21.0% 722 -100 -30 592 Leasing fund SME Africa PEAK I Dar-es- Tanzania 0.0% 110 -110 0 Investment fund Salam SME Africa PEF Manila Philippines 0.0% 67 - -1,027 0 Investment fund 960 SMEs in the Philippines Progression Port Louis Mauritius 11.2% 3,371 -9 3,362 Investment fund in Capital Africa MFIs LTD PYME Capital Panama City Panama 62.4% 1,386 377 -382 1,381 Investment fund SMEs Latin America Rabo Rural Fund Utrecht Netherlands 20.0% 2,454 2,454 Small producers trade fi nance fund SICSA Panama City Panama 15.2% 454 454 Investment fund in MFIs Central America SIDI Parijs France 0.0% 89 -89 0 Investment social investor SME Impact Amsterdam Netherlands 21.0% -57 923 Investment fund Fund CV 980 SME Tanzania Stromme Kampala Uganda 19.4% 1,000 Investment fund in Microfi nance 1,000 MFIs Africa East Africa Limited WAVF Port Louis Mauritius 25.0% 3,500 681 -683 3,498 Investment fund SME Sierra Leone / Liberia WMF Accra Ghana 26.0% 1,650 -261 50 1,439 Investment fund in MFIs Ghana 26,432 -471 1,218 -1,426 -1,491 24,262
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Debt investments carrying the same risk as equity participa- e total revaluations of intrinsic values amounted to losses tions are included in the list of participations. For these of €1.4m: investments the percentage of the participation is stated as ▪ Cordaid sold its participation in the Indonesian Bank 0.0%. Andarra to the Hivos Triodos Fund and no longer has a direct connection with Bank Andarra. Instead, a loan has At December 31, 2015, the number of participations decreased been granted to the Hivos Triodos Fund. e valuation of to 18 and the total value of the portfolio of participations this loan is directly related to the performance of Bank decreased from €26.4m in 2014 to €24.3m. Cordaid did not Andarra. To refl ect this risk, the loan is included in the list invest in new participations in 2015. of participations and replaces the sold participation in Bank Andarra. e intrinsic value of the loan has further ree participations have been decommitted: decreased by €106 kresulting in a closing value of €461k. ▪ €101k in PEAK II was de-committed and a devaluation of ▪ e participation in PYME Capital was depreciated by €382k €30k was recorded because the investment period was to refl ect the increased risk concerning one of its biggest fi nished, disbursements were lower than the committed investments but benefi ted from a €377k currency gain, amounts and through exchange rate di erences. leading to fi nal a valuation of €1.4m. ▪ €110k was de-committed in PEAK I because of delays in the ▪ Dia Vikas, a microfi nance investment fund in India: the set up of the fund and a change in fund structure that made intrinsic value decreased by €218k and currency gains led to the Cordaid investment no longer necessary. an appreciation of €95k, resulting in a closing value of €1.3m. ▪ €261k was de-committed from WMF and a revaluation of At year-end 2015, the €2.5m convertible loan committed in €50k was recorded because of the close of the investment 2012 had been disbursed, but had not yet been received in period and currency gains resulting in a lower commitment Dia Vikas’ account Cordaid was not exposed to any fi nancial amount in euro. risk on this additional participation at the end of the closing period. InReturn paid back €35k from its exits. ▪ Rabo Rural Fund, a global small producer’s fund in the e last part of the non-strategic participation in SIDI was sold Netherlands: Cordaid founded this fund with the Rabobank at cost price for €89k. Foundation and has a 20% participation. In 2015, the e last of two PEF outstanding loans with equity component increased risk concerning one of its investments led to (interest rate payments are directly correlated to profi t and depreciation in US dollars. Because the e ect of the losses of the organization) were reimbursed for €1.0m, result- appreciated dollar would more than o set the depreciation, ing in a currency gain of €67k and leaving no outstanding the valuation in euros was unchanged. balance on PEF. ▪ e SME Impact Fund, o ering funding to BDS-trained Progression Capital Africa LTD paid €9k from its fi rst exits. SMEs in Tanzania, was depreciated by €57k to refl ect the slower-than-expected pace of realization of the investments, e Oikocredit participation was sold for €330k, including an leading to a valuation of €923k. amount of €37k as stock dividend. At Oikocredit’s request it was ▪ West African Venture Fund, a SME fund targeting Sierra decided to keep a participation of one share (€200) to retain Leone and Liberia, was heavily impacted by the Ebola voting rights as a like-minded investor. outbreak in West Africa, resulting in a revaluation of the A number of revaluations have taken place refl ecting the fund’s portfolio companies and a depreciation of the improvement or worsening of the situation of some of our intrinsic value by €683k in Cordaid’s books. As unrealized equity participations and the variations in currency rates. currency gains of €681k mostly o set the depreciation, the closing value of €3.5m equals the value recorded in 2014.
Cordaid reviewed and revalued all its participations at December 31, 2015. However, unrealized gains and losses are only included in the valuation of impaired participations. e revaluations resulted in a currency gain in 2015 of €1.2m.
581 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
IN E T ENT TOC OR E ER ENC AID
Until June 30, 2015, Schretlen & Co and ASN managed Cordaid’s In 2014 Cordaid kept stocks of emergency aid goods in Uganda investment portfolio according to a very defensive policy and and South Sudan. e stocks are kept so Cordaid can act quickly ensuring that the principal amount of a portfolio investment is in case of an emergency in the region. During 2015, the stock in highly guaranteed. Uganda was brought to 0. Cordaid now only maintains stocks in South Sudan. Per December 31, 2015, the stock can be At the beginning of 2015, Cordaid decided to make some specifi ed as follows: changes in its investment policy, aiming at a higher return on investments without exposing the invested funds to unaccept- 1 000 1 DEC 2015 1 DEC 201 able risks. Stocks for emergency aid
From July 1, 2015, Cordaid selected ING and Van Lanschot as - Tarps 49 111 their asset managers and reduced the invested portfolio from - Khanga cloth, blankets, bed nets 9 130 approximately €35m to €20m. All investments under manage- & bags ment with Schretlen and ASN were sold per the same date. - Sanitary Kits 38 88 e remaining amount was kept in cash. e reduction in the invested amount was made so that Cordaid would have more - Kitchen sets 0 82 cash directly available to pre-fi nance projects and to absorb 96 411 unforeseen cash outfl ows.
Both asset managers were instructed to invest following a During 2015, Cordaid only spent €77k on new items. e value defensive to neutral profi le. e investment strategy has a of distributed items in 2015 amounted to approximately €250k, 5-to-10 year horizon. Both asset managers receive a fee based another €239k was sold to peer organizations. Although the on the invested amount only and no performance based fee. turnover rate of the stocks is relatively low, a provision for obsolete stock was unnecessary as all items are non-perishable Portfolio investments must meet strict sustainability criteria. and can be kept for several years without losing their value for Cordaid invests in businesses that have sound sta policies in Cordaid’s operations. place, that protect the environment and that respect human rights. Cordaid applies the UN Global Compact and the Standard for Financial Management of Fundraising RECEI A LE Institutions of the Dutch Association of Fundraising Institutions (VFI), as well as a range of supplementary product All receivables have a remaining maturity of less than one year. and process criteria based on ASN Bank criteria. 1 000 1 DEC 2015 1 DEC 201 e current portfolio investments can be specifi ed as follows: Receivables
1 000 1 DEC 2015 1 DEC 201 - Dutch Government 6,548 31,083
Bonds - Other governments and 16,254 15,447 organizations Government bonds 3,596 17,779 - Provision uncollectable -209 -209 Corporate bonds 7,216 3,382 receivables from governments
Other bonds 2,484 13,863 - Receivable from inheritances 5,395 5,251
Shares 6,529 0 - Interest receivables 753 1,354
19,825 35,024 - Other receivables 1,772 1,308
30,513 54,234 e portfolio is carried at fair value. e fair value of the portfolio decreased €15.2m. An amount of €15m was turned into directly Contracts with back donors lead to a receivable if subsidized costs available cash after the sale of all investments managed by incurred are higher than advances received from the donor. Schretlen and ASN. e originally invested amount of the As a consequence of the slowdown of activities for the MFS II current portfolio is €20m. e fair value of the portfolio is program, the receivable on the Dutch government decreased by determined based on the known market prices for the specifi c €24.5m. e receivable for projects funded by other govern- bonds and shares in the portfolio. ments and organizations remained stable. For more details on government grants refer to section 17.
e receivable from inheritances in 2015 was €5.4m (2014: €5.3m). In 2015, a lower number of legacies was unsettled compared to 2014 (141 vs 185). is was compensated by a higher average amount receivable per legacy.
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INTERE T RECEI A LE 10 CA AND AN 1 000 1 DEC 2015 1 DEC 201 Cash and bank comprise cash and bank balances of the Cordaid Interest receivables o ce in e Hague, in the country o ces abroad and deposits - Banks & deposits 229 355 falling due in less than one year. Cash and cash equivalents increased from €67.7m at December 31, 2014 to €73.1m at the - Bonds 40 497 end of 2015. e reduction of the investment portfolio is the - Loans & guarantees 484 502 main reason for the increase of cash, in spite of the negative (relief efforts) balance in 2015. e other main factors in changes in Cash and 753 1,354 bank are explained in section 1.2, Notes to the cash fl ow statement.
Interest receivables relates to the bonds in the investment All cash is at Cordaid’s free disposal, except for the guarantee portfolio, outstanding deposits, savings deposits and outstand- for the rent agreement of €0.2m (one guarantee). ing loans and guarantees relating to Cordaid’s objectives. e receivable decreased €0.6m because the number of bonds was signifi cantly reduced after the change in investment strategy. e continuous decrease in interest rates is another important factor in the decrease of the receivable.
OT ER RECEI A LE 1 000 1 DEC 2015 1 DEC 201
Other receivables
- Security deposit 55 55
- Prepayments 630 310
- Other receivables 1,087 943
1,772 1,308
e other receivables increased €0.5m mainly as a consequence of various small prepaid amounts. An invoice of €0.7m for the Vastenaktie, prepaid rent of €0.3m and donations receivable of €0.2m are the main receivables.
6020 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
11 RE ER E AND UND
1 000 CONTINUIT EAR AR ED OT ER RE TRICTED E I RE TRICTED TOTAL RE ER E RE ER E RE ER E UND RE TRICTED UND LOAN RE ER E UND UARANTEE AND UND
Opening balance 12,275 10,915 1,345 3,979 5,798 93,964 128,276 January 1, 2015
Changes
Extraction -2,400 -2,120 -62 -2,509 0 -641 -7,732
Dotations 0 0 0 0 3,061 0 3,061
Closing balance 9,875 8,795 1,283 1,470 8,859 93,323 123,605 December 31, 2015
C e total amount of earmarked reserves per December 31, 2015 e continuity reserve is designed to create a su ciently large is €8.8m. Net income from non-development investments, bu er to enable Cordaid to complete ongoing programs unrestricted interest income and unrestricted donations appropriately, including sta ng them with our own people, if amounting to €2.0m was added to the earmarked reserves. one or more key sources of funding were to dry up unexpected- Program expenditure of €2.3m was deducted. Organizational ly, and with due observance of existing legal and moral costs of €1.8m could not be covered from organizational cost obligations. allowances from donors and semi-restricted funds. erefore, this amount was deducted from that part of the earmarked Due to the ending of the MFS II program after 2015, Cordaid reserves that came from non-program related income such as was obliged to cut its costs for 2016. As a consequence, sta was interest and other income. reduced with approximately 30%. An amount of €2.4m was withdrawn from the continuity reserve to create a redundancy O provision. is amount represents the total costs necessary to e only other reserve is a restricted reserve to enable replace- compensate redundant sta according to the Social Plan ment of current tangible fi xed assets when fully written o agreed between the Board of Directors and the labor unions. and always has the same value as the tangible fi xed assets in the balance sheet. A new addition to the continuity reserve was not made in 2015. e necessary continuity reserve will be calculated again in R 2016 based on a new analysis of the stability of income and Restricted funds are funds received for an earmarked purpose, the cost levels of Cordaid following the reorganization. such as incoming resources for specifi c SHO campaigns or e continuity reserve amounts to €9.9m at December 31, 2015. other funds specifi cally allocated to one or more projects. is amount is well below the Centraal Bureau Fondsenwerving (CBF) requirement of no more than 1.5 times total operating Restricted funds decreased €2.5m to €1.5m. e decrease is due expenses. mainly to spending of funds raised for the SHO campaigns Stop ebola! and e Philippines resulting in a decrease of funds E of €2.9m. Earmarked reserves are comprised of interest income, income from investments fi nanced with temporary surpluses of Incoming resources and expenditures through SAN! are also semi-restricted funds, other income and income which is not disclosed in the restricted project fund. e partner payment earmarked for specifi c topics, but granted to Cordaid as an for 2015 was a gross amount of €500k. Net of €50k in overheads, organization. e reserves are earmarked for spending on an amount of €450k was added to the SAN! fund. Program costs objectives. e allocation of these reserves to di erent themes, for SAN! projects in 2015 amounted to €379k (2014: €674k). programs and objectives is subject to a decision by the Board of Directors. Decision-making is based on internally agreed criteria.
MAY 2016 © CORDAID 2161 CORDAID 2015 ANNUAL REPORT CORDAID 201 I A CIA FINANCIAL ST A M ATEMENTS
1 000 OPENIN INCO IN O ER EAD PRO ECT CLO IN ALANCE RE OURCE EE RE OURCE ALANCE ANUAR 1 2015 E PENDED DECE ER 1 2015
Mensen in Nood
SHO campaign Stop de ebola-ramp 808 210 -14 -1,004 0
SHO campaign Philippines 2,141 12 -177 -1,976 0
SHO Nepal 0 2.301 -161 -2,012 128
Adoptions 623 241 -27 -331 506
3,572 2.764 -379 -5,323 634
Kinderstem
Adoptions 0 313 -36 -198 79
Personalized fund - van Kasteren 7 40 0 -43 4
7 353 -36 -242 83
Memisa
Adoptions 549 117 -13 -300 353
Personalized fund - Local Heroes 20 0 0 -20 0
Stop Aids Now! 206 500 -50 -379 277
Ineke Feitz Foundation -375 986 -81 -407 123
400 1,603 -145 -1,105 753
3,979 4,720 -560 -6,669 1,470
P e item ‘personalized funds’ relates to: ▪ Local Heroes fund of originally €50k. e agreement was to use these resources in fi ve annual installments. In 2015, the fi nal €20k was committed for program activities that were partly executed in 2015 and will be fi nalized in 2016. ▪ Van Kasteren fund of €40k per year for the years 2014-2018. During 2015, the second €40k amount was received. An amount of €43k was spent on objectives, resulting in a remaining balance of €4k.
6222 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
O P ILIPPINE
1 2015 UP TO AND INCLUDIN 2015
E ER ENC AID RECON TRUCTION TOTAL E ER ENC AID RECON TRUCTION TOTAL
Incoming resources from third party - 6,731,594 campaigns
Intrest 11,646 14,486
Total incoming resources 11,646 6,746,080
Preparation and coordination costs 177,435 422,526
Total available for charitable activities 1 6 5 ,7 8 9 - 6,323,554
Resources expended
Commitments undertaken by participant
- support offered through local relief (20,541) - (20,541) 1,019,459 - 1,019,459 providers
- support offered through international ------umbrella organisation
- support offered through participant - 1,995,528 1,995,528 - 5,304,095 5,304,095
(20,541) 1,995,528 1,974,987 1,019,459 5,304,095 6,323,554
Available commitment capacity 0
1 2015 UP TO AND INCLUDIN 2015
E ER ENC AID RECON TRUCTION TOTAL E ER ENC AID RECON TRUCTION TOTAL
Breakdown of participant’s cash fl ows
Transfer by participant for:
- support offered through local relief - - - 1,019,459 - 1,019,459 providers
- support offered through international ------umbrella organisation
- support offered through participant - 3,107,708 3,107,708 - 5,286,895 5,286,895
Total transferred - 3,107,708 3,107,708 1,019,459 5,286,895 6,306,354
Breakdown of resources expended locally
- support offered through local relief - - - 1,019,459 - 1,019,459 providers
- support offered through international ------umbrella organisation
- support offered through participant - 3,124,908 3,124,908 - 5,304,095 5,286,895
Total resources expended - 3,124,908 3,124,908 1,019,459 5,304,095 6,323,554
MAY 2016 © CORDAID 2 63 CORDAID 2015 ANNUAL REPORT CORDAID 201 I A CIA FINANCIAL ST A M ATEMENTS
O TOP E OLA
1 2015 UP TO AND INCLUDIN 2015
E ER ENC AID RECON TRUCTION TOTAL E ER ENC AID RECON TRUCTION TOTAL
Incoming resources from third party 206,384 1,564,358 campaigns
Intrest 3,304 3,304
Total incoming resources 209,688 1,567,662
Preparation and coordination costs 13,718 102,557
Total available for charitable activities 195,970 1,465,105
Resources expended
Commitments undertaken by participant
- support offered through local relief 323,479 275,861 599,340 383,436 275,861 659,297 providers
- support offered through international ------umbrella organisation
- support offered through participant 323,479 404,855 404,855 370,891 434,917 805,808
680,716 1,004,195 754,327 710,778 1,465,105
Available commitment capacity (808,225) 0
1 2015 UP TO AND INCLUDIN 2015
E ER ENC AID RECON TRUCTION TOTAL E ER ENC AID RECON TRUCTION TOTAL
Breakdown of participant’s cash fl ows
Transfer by participant for:
- support offered through local relief 383,436 275,861 659,297 383,436 275,861 659,297 providers
- support offered through international ------umbrella organisation
- support offered through participant 342,194 404,855 747,049 370,891 434,917 805,808
Total transferred 725,630 680,716 1,406,346 754,327 710,778 1,465,105
Breakdown of resources expended locally
- support offered through local relief 383,436 275,861 659,297 383,436 275,861 659,297 providers
- support offered through international ------umbrella organisation
- support offered through participant 361,762 404,855 766,617 370,891 434,917 805,808
Total resources expended 745,198 680,716 1,425,914 754,327 710,778 1,465,105
642 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
O NEPAL
1 2015 UP TO AND INCLUDIN 2015
E ER ENC AID RECON TRUCTION TOTAL E ER ENC AID RECON TRUCTION TOTAL
Incoming resources from third-party 2,300,000 2,300,000 campaigns Intrest 548 548 Total incoming resources 2,300,548 2,300,548
Preparation and coordination costs 161,000 161,000 Total available for charitable activities 2,139,548 2,139,548
Resources expended Commitments undertaken by participant - support offered through local relief 756,849 983,597 1,740,446 1,740,446 - 1,740,446 providers - support offered through international 50,000 50,000 50,000 - 50,000 umbrella organisation - support offered through participant 96,012 124,777 220,789 220,789 - 220,789 902,861 1,108,374 2,011,235 2,011,235 - 2,011,235 Available commitment capacity 128,313 128,313
1 2015 UP TO AND INCLUDIN 2015
E ER ENC AID RECON TRUCTION TOTAL E ER ENC AID RECON TRUCTION TOTAL
Breakdown of participant’s cash fl ows Transfer by participant for: - support offered through local relief 658,113 855,280 1,513,393 658,113 855,280 1,513,393 providers - support offered through international 50,000 - 50,000 50,000 - 50,000 umbrella organisation - support offered through participant 96,012 124,777 220,789 96,012 124,777 220,789 Total transferred 804,125 980,057 1,784,182 8 0 4 , 1 2 5 9 8 0 , 0 5 7 1,784,182 Breakdown of resources expended locally - support offered through local relief 820,504 - 820,504 820,504 - 820,504 providers - support offered through international 50,000 - 50,000 50,000 - 50,000 umbrella organisation - support offered through participant 96,012 - 96,012 96,012 - 96,012 Total resources expended 966,516 - 966,516 966,516 - 966,516
e funds for activities in e Philippines and for Stop ebola! were fully expended in line with action planning. e amount of resources expended for the action in Nepal is based on the report received from our partner organizations and the local Cordaid O ce.
For activities in Nepal a commitment capacity of €128k is available for reconstruction. e Reconstruction phase started in November 2015, but per December 31 actual expenditure was not yet reported. erefore, the expended amount is stated at zero. A full report of expenditure and activities in the reconstruction phase can be found on the website of Samenwerkende Hulporganisaties (www.samenwerkendehulporganisaties.nl).
MAY 2016 © CORDAID 2 65 CORDAID 2015 ANNUAL REPORT CORDAID 201 F I A CIA INANCIAL ST A M ATEMENTS
12 PRO I ION Semi-restricted funds are accruals on own fundraising that are not earmarked for a specifi c purpose or are earmarked for a e composition of, and movements in, the provisions were as broadly defi ned purpose (usually linked to program purposes). follows: e increase in semi-restricted funds is mainly a result of unspent balances for Cordaid Mensen in Nood related to 1 000 REDUNDANC AC DONOR U ILEE TOTAL income from unsettled legacies. e income is recognized, but PRO I ION PRO ECT AND because the actual cash is not yet received, expenditure is ARE ELL PRO I ION recorded later as well. Opening 344 910 15 1,269 L balance January 1, 2015 e Loans & Guarantees Fund comprises the resources that have been accrued within the scope of the Loans & Guarantees Changes
Program. e resources for the Loans & Guarantees Fund stem - Allocated 2,400 0 0 2,400 from the co-fi nancing program and from own resources. Because no new social impact investments were started with - Withdrawn -344 -572 -15 -931 MFS II funds in 2015, a net deduction was made from the fund - Released 0 -282 0 -282 instead of an addition as in previous years. e addition to the Closing balance 2,400 56 0 2,456 provision for bad loans is another reason for the negative result December 31, on the Loans & Guarantees fund in 2015. 2015
1 000 TOTAL e fi nancial settlement of the reorganization that started in Opening balance January 1, 2015 93,964 2012 was fi nalized at the beginning of 2015. Based on the Income from fi nancial assets issued for objectives 2,133 fi nancial prospects for Cordaid without MFS II funding, Cordaid decided on a new reorganization by the end of 2015. Investment income -295 e total estimated costs for transition, transition fees and Income from cash and cash equivalents 92 redundancy fees for the redundant sta is estimated at €2.4m. Recharged overhead fee 60 In 2014, Cordaid identifi ed four fi nished projects funded by Direct costs -1,645 institutional donors where re-audits revealed omissions in Recharged indirect costs -934 Cordaid’s compliance with the donor’s grant requirements. For
Grant approvals -52 two projects these re-audits led to an actual repayment of funds to the donor. e total amount repaid in 2015 amounts to Closing balance December 31, 2015 93,323 €572k and represents for the greater part costs incurred in line with project objectives, but whose supporting documentation was not in line with donor requirements. e other part related to a possible fraud case where, due to circumstances, an audit could not be carried out. On the other two projects, the re-audits showed that all supporting documents were in order, leading to a release of €282k. A discussion on the validity of the supporting docu- ments on a smaller amount of €56k is still ongoing. e related project results are not under discussion. Cordaid believes that the resources of the back donor were spent in line with the original objectives of the projects concerned. Compliance with formal rules, however, is under discussion.
e jubilee and farewell provision was formed to cover jubilee and farewell benefi ts. Given the fact that the allowance for jubilees is not part of the new collective labor agreement, a provision for these costs is no longer necessary.
At present, no legal proceedings are pending for which a provision should be formed.
All provisions are expected to be settled within one year.
6626 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
1 CURRENT AND NON CURRENT 1 O ALANCE EET LIA ILITIE CO IT ENT AND CONTIN ENCIE e composition of, and movements in, the current and non-current liabilities are as follows: O
1 000 1 DEC 2015 1 DEC 201 Cordaid signed several large fi nancing contracts or received Non-current liabilities guarantees for carrying out specifi c projects in 2012-2015. Project commitments 1,176 474 Cordaid recognizes the incoming resources from these fi nanc- ing contracts and grant decisions in accordance with Dutch 1,176 474 Accounting Standard 274. is means that incoming resources Current liabilities are recognized at the time resources are actually expended. e Project commitments 35,155 54,853 di erence between the income recognized and the actual amount received in the form of contributions from donors is Deferred grants from Dutch 1,519 5,864 government recorded in the balance sheet. is results in a receivable if more resources have been expended than received or in a Deferred grants from other 6,114 3,767 deferred grant if incoming resources are greater than those governments expended. erefore the full amount of the contract is not Accounts Payables 2,113 2,044 disclosed in the annual accounts. Note: the Dutch accounting
Taxes and social security 1,459 1,333 standards and therefore the accounted cost can di er from contributions what was reported to the related donors as a consequence of these di erences in accounting standards. Reservation for leave days and 1,664 1,712 holiday allowance
Participations payable 4,454 10,607
Other accruals and deferred 408 674 income
52,887 80,854
Outstanding project commitments decreased €19.0m compared to 2014 as a consequence of fi nalizing many projects within the MFS II program. Only small fi nal payments related to MFS II projects were included for 2015.
Deferred grants declined to €7.6m (2014: €9.6m). e main reason was the receipt of an amount of €5.4m just before year-end in 2014 and spent in 2015. is e ect was partially o set by the receipt of funding for the new phase of a project in DR Congo from the Global Fund of which an amount of €2.6m had not yet been spent at the end of 2015.
All current liabilities are payable within one year. All non- current liabilities fall due in less than fi ve years.
MAY 2016 © CORDAID 2 67 CORDAID 2015 ANNUAL REPORT CORDAID 201 I A CIA FINANCIAL ST A M ATEMENTS
What follows is a list of fi nancing contracts and grant decisions where the amount to be spent is above €0.5m at December 31, 2015:
1 000
UNDIN DE CRIPTION O DURATION CONTRACT INCO E INCO E INCO E INCO E CU ULATI E ALANCE TO OR ANI ATION T E PRO ECT ALUE 2012 201 201 2015 INCO E E PENT
Global Fund Scale up HIV-AIDS Jul 2015 - Dec 2017 72,501 - - - 9,250 9,250 63,251 prevention, care and treatment in 354 health zones in DR Congo
European Union Enhancing the Food Security Dec 2015 - Nov 2018 2,389 - - - 119 119 2,270 and Disaster Resilience of vulnerable communities in Upper Nile State, South Sudan
World Bank/Ministry of Results based fi nancing of Jul 2012 - Jun 2016 8,188 224 1,687 3,116 998 6,025 2,163 Health Cameroon public healthcare in Cameroon
European Union Support of reconstruction of Feb 2015 - Jul 2016 3,619 - - - 1,852 1,852 1,767 basic health systems in Bangassou and Bossangoa
VNG International (1) Interlinking peacebuilding, Jul 2014 - Jun 2017 1,859 - - 354 391 745 1,114 decentralization and development
Dutch Ministry of Provision of effective sexual Jan 2013 - Jun 2016 29,644 - 10,310 9,427 8,883 28,620 1,024 Foreign Affairs (2) and reproductive health services for next genera- tions in Burundi, Rwanda and DR Congo
Royal Tropical Institute Reducing maternal Jan 2013 - Dec 2015 1,953 - 15 23 903 941 1,012 (KIT) (3) mortality and improving accessibility of reproductive health care in South Sudan
European Union Supporting resilience in Apr 2015 - Jun 2016 2,200 - - - 1,212 1,212 988 drought prone areas in Borana Zone
Adam Smith Enhancing community May 2015 - March 1,122 - - - 225 225 897 International resilience through improved 2016 access to education in Samburu County
European Union Building resilience in Apr 2015 - Jun 2016 1,600 - - - 792 792 808 drought prone areas of Liben zone
Dutch Ministry of F Monitoring Women's Peace July 2015 - Dec 2017 3,878 - - - 3,128 3,128 750 oreign Affairs and Security in Afghanistan
World Vision (4) Dutch Relief Alliance: Joint Nov 2015 - May 2016 787 - - - 55 55 732 response Ethiopia
Health Pooled Fund Torit Hospital Jan 2015 - Mar 2016 1,751 - - - 1,067 1,067 684
World Bank Support for DRM framework Sept 2015 - Dec 2016 602 - - - - - 602 in Ethiopia
World Bank Reinforcing social Nov 2014 - Oct 2018 642 - - - 70 70 572 accountability of health services in DR Congo
Dutch Ministry of Dutch Relief Alliance: Joint May 2015 - March 5,939 - - - 5,378 5,378 561 Foreign Affairs (5) response Centralafrican 2016 Republic
Dutch Ministry of Results based fi nancing of Oct 2012 - Dec 2015 4,353 1,146 827 864 1,065 3,902 451 Foreign Affairs (6) government services in Burundi and the DR Congo
Grand total 143,027 1,370 12,839 13,784 35,388 63,381 79,646
1 C A D M A 2 A C I D R D M A R I A D 201 201 I 201 D R A 1 D O CAR D O ICCO A O AM AR C C OA D M A D R A D R A D M A C C A R 6 C I C CI C I 0 6 CI C
682 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
O At year-end, o -balance sheet liabilities for overheads were as Cordaid has 17 legacies estimated at €0.5m which are still follows: subject to usufruct at the reporting date and therefore are not reported as income in the statement of income and 1 000 O ICE LEA E O ICE LEA E TOTAL expenditure. T E A UE IN A A
Payable: 1 000 U U RUCT - in less than 1 year 996 110 1,106 Receivable: - between 1 and 5 years 2,822 0 2,822 - in less than 1 year 0 - in more than 5 years 0 0 0 - between 1 and 5 years 527 Total 3,818 110 3,928 - in more than 5 years 0
Total 527 During the reporting period, lease payments amounting to €987k are included in the statement of income and O expenditure.
At December 31, all project commitments were recognized on Cordaid has sublet a section of its o ce space to Mensen met the balance sheet. e last payments for the MFS II Alliance to een Missie and Melania. e rent charged by Cordaid is in line Alliance members are already recognized as a liability in the with current market prices for o ce rent. Transactions are balance sheet. No conditional project commitments exist. For done at arm’s length. organizational costs, Cordaid’s policy wherever possible is to avoid long-term contracts with suppliers that include fi xed commitments. Almost all contracts can be terminated within 1 year or amounts payable are based on actual usage. Contracts for o ce rent are the only exceptions.
15 O N UNDRAI IN
1 000 CORDAID EN EN IN INDER E I A ICRO N TOTAL TOTAL ENERAL NOOD TE CREDIT 2015 201
Donations and gifts 302 5,511 4,389 6,252 308 372 17,134 18,447
Mailing campaigns 0 124 2 84 10 0 220 260
Legacies 1,518 3,251 90 4,518 0 9 9,386 7,058
Materials sold 0 0 0 4 0 6 10 79
Total 2015 1,820 8,886 4,481 10,858 318 387 26,750 25,844
Total 2014 1,321 7,625 4,897 11,171 387 443 25,844
Income from own fundraising amounted to €26.8m, €2.2m under budget, but €0.9m higher than in 2014.
e main cause for the increase compared to 2014 is the higher income from legacies and inheritances, o setting to a signifi cant extent the decrease in donations and gifts. e number of legacies did not grow, but some high amounts made the average amount per inheritance increase sharply.
Compared to budget, the results were below target especially on legacies and major donors. Income from individual gifts was in line with budget, although the number of individual donors is still declining.
Net revenue from materials sold amounted to €10k; costs of materials sold were €34k, resulting in a net loss on sales of materials of €24k.
MAY 2016 © CORDAID 2 69 CORDAID 2015 ANNUAL REPORT CORDAID 201 I A CIA FINANCIAL ST A M ATEMENTS
1 T IRD PART CA PAI N 1 O ERN ENT RANT
1 000 2015 201 1 000 2015 201
SHO – Nepal 2,300 - Dutch Government - MFS II 27,335 82,162
SHO - Stop de ebola-ramp 206 1,358 Dutch Government – Alliances 2,561 4,595
SHO – Philippines 0 883 Dutch Government – Other 39,997 10,933
SHO – Haiti 0 17 World bank 528 9,382
Nationale Postcode Loterij 2,700 2,700 Global Fund 16,483 10,633
Stichting Bisschoppelijke Vastenaktie 2,509 2,258 European Union 4,794 706
Stop Aids Now! 500 500 Other 17,875 20,506
Other organizations 4,199 3,339 Total government grants 109,573 138,918
Total income third-party campaigns 12,414 11,055 Government grants comprise programs income under the Incoming resources from third-party campaigns increased Dutch government’s co-fi nancing program and project funding €1.4m to €12.4m. Higher income from SHO campaigns, from provided by such bodies as the European Union, the Dutch the Vastenaktie fund and more project adoptions are the government, the Global Fund and various United Nations reasons for the rise. Compared to budget, the income for third organizations. Incoming resources from government grants parties was under budget, due mainly to disappointing results totaled €109.6m in 2015, down €29.3m on 2014. Compared to of fundraising in the US. budget the income from government grants was up by €4.7m.
Incoming resources via Stop Aids Now! (SAN!) amounted to e lower income recognized from the Dutch government’s €0.5m (2014: €0.5m) and the contribution from the Dutch co-fi nancing program is the main cause for the lower income. National Postcode Lottery (NPL) was €2.7m in 2015 (2014: €2.7m); e lower income is a consequence of lower expenditure Cordaid did not receive any additional contributions in 2015. towards the end of the MFS II program. Part of the income in the amount of €2.5m (2014: €2.6m) Excluding this e ect, income from government grants rose recorded in third-party campaigns came from the BU €25.3m compared to the previous year, refl ecting the relatively Netherlands matching fund. Various Dutch public interest high success rate Cordaid achieves in tenders. e increase is organizations raise funds for this matching fund and Cordaid due mainly to higher income from the thematic funding by the matches their donations. Cordaid and the public interest Dutch Government (especially related to the Dutch Relief organizations then work together to donate these funds to Alliance), higher income from the Global Fund project in DR common charitable causes. Congo and more project funding from the European Union.
Cordaid has signed a number of very large contracts with other institutional donors over the past three years. Income from these grants is only recognized if subsidized costs are incurred or if a legal payment obligation towards partner organizations exists. An overview of income per contract or the contract with a total value above €1.0m can be found in note 14.
70 0 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
1 AIN ON INANCIAL A ET Compared to 2014, the income from investments decreased to €0.1m. is disappointing result can be explained as follows: Gains and losses on fi nancial assets issued in connection with e historically low interest rate throughout the year lowered objectives comprise interest and commission received on loans the income from bonds and liquid assets throughout the year. and participations, as well as project income and currency In addition, Cordaid’s portfolio of bonds managed by Schretlen gains and losses. decreased in value between January and the moment the portfolio with Schretlen was sold in July 2015 by approximately 1 000 2015 201 201 €0.7m. Given the low interest rates and disappointing market for bonds (also in the longer term) Cordaid decided to adjust its Approved MFS II grants -439 4,439 6,645 investment strategy towards a slightly higher risk profi le, Interest received on loans and 2,520 1,983 1,507 although still within the category defensive to neutral. ING guarantees and Van Lanschot were appointed as asset manager to imple- Income from dividends/provision 101 -136 189 ment this new investment strategy. Unfortunately, the stock guarantees market performed badly in the second half of the year, just
Revaluation of participations -1,426 228 -1,032 after the switch to a more stock-based portfolio, resulting in €0.1m unrealized capital losses at the end of 2015. Currency gains and losses 2,705 2,861 -2,450
Allocated to/withdrawn from -1,328 -720 -715 provision for loans and guarantees 20 OT ER INCO E
2,133 8,655 4,144 1 000 2015 201
- VAT refund 193 0 is item comprises operating gains and losses on the Loans & Guarantees program. e gains on fi nancial assets went down - Consultancies 553 173 from €8.7m in 2014 to €2.1m in 2015. As no new investments - Other 27 294 were made with MFS II funding, the contribution from these funds was €0.4m negative (2014: €4.4m positive). A negative 773 467 result on revaluation of participations and a net addition of €1.3m to the provision for bad loans and guarantees are the other reasons for the decrease in gains on fi nancial assets. In 2015, Cordaid received a one-o VAT refund for the years 2011 and 2012. In its search for new sources of funding, Cordaid performs more consultancy services in areas closely related to 1 IN E T ENT INCO E development aid. e income from these consultancy services grew to €553k in 2015. Cordaid aims to further increase income Investment income includes interest and other income from from this source in the near future. bond loans, interest earned on the bank account and currency gains and losses. What follows is a fi ve-year summary of this item:
1 000 2015 201 201 2012 2011
Interest received on 551 954 1,385 1,104 1,077 bonds
Interest received on cash 457 508 810 969 973 and cash equivalents
Realized capital gains -680 860 -157 -189 -129 and losses
Unrealized capital gains -117 1,233 -1,189 869 77 and losses
Gross investment income 211 3,555 849 2,753 1,998
Investment costs -90 -53 -51 -43 -38
121 3,502 798 2,710 1,960
MAY 2016 © CORDAID 71 1 CORDAID 2015 ANNUAL REPORT CORDAID 201 I A CIA FINANCIAL ST A M ATEMENTS
21 PENT ON O ECTI E
Comparison of 2015 program costs and program management costs with the budget
ACTUAL 2015 UD ET 2015
1 000 PRO RA PRO RA TOTAL 2015 PRO RA PRO RA TOTAL UD ET CO T ANA E ENT CO T ANA E ENT 2015 CO T CO T
Healthcare 54,335 2,519 56,854 54,801 2,131 56,932
Child & education 4,735 659 5,394 6,137 866 7,003
Disaster response 39,743 2,186 41,929 22,652 1,956 24,608
Women's leadership 4,579 975 5,554 7,068 619 7,687
Extractives 3,232 380 3,612 5,160 206 5,366
Security & justice 4,789 768 5,557 4,038 406 4,444
Entrepreneurship 1,101 610 1,711 4,405 486 4,891
Urban matters 1,286 987 2,273 2,185 625 2,810
Cordaid Netherlands 10,809 1,375 12,184 10,099 1,082 11,181
Investments -72 2,722 2,650 2,222 2,532 4,754
Food Security 2,258 940 3,198 7,445 777 8,222
Other expenditure -4 0 -4 0 0 0
Total cost of programs 126,791 14,121 140,912 126,212 11,686 137,898
Program costs in 2015 amounted to €126.8m, €0.6m above Expenditure on Investments is negative due to the exclusive budget. e main di erence is due to greater expenditure on use of reused funds for new investments as MFS II funds are no disaster response. e high number of crises-a ected areas in longer available and MFS II program-related activities had to be 2015 made it necessary to increase e orts in this fi eld. e ended before December 31, 2015. Few contracts were cancelled, various programs implemented with the Dutch Relief Alliance resulting in a net negative expenditure. Expenditure with consortium, funded by the Ministry of Foreign A airs, boosted reused funds amounted to €7.2m, but is not included in the expenditure further. Expenditure in other fi elds was behind on statement of income and expenditure. budget. Lower spending on MFS II programs and limited new other funds for themes like Entrepreneurship, Food Security, Total program management costs in 2015 stood at €14.1m, Extractives and Urban Matters constrained expenditure €2.4m above budget. Lower allocation of costs to direct program compared to budget. costs and additional costs for the reorganization are the causes for this overrun.
72 2 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
22 CO T ALLOCATION TO T E DI ERENT ACTI ITIE
Cordaid uses di erent allocation keys to allocate costs, making For instance: direct dialogue (street/door/verifi cation calls), allowance where possible for the recommendations of VFI, the online donor campaigns, emergency relief mailing, Dutch Association of Fundraising Institutions. Costs are partnerships (attracting business donors). allocated in two stages. ▪ Category 50% FR / 50% PI: Activities involving a request for 1. First, costs relating directly to programs, fundraising and donations, where equal weight is attributed to the management & administration are recognized directly within these items. is involves the costs of the business fundraising and the public information components. For units (programs), marketing & communication (public instance: events, TV donor recruitment, Margriet magazine. information and fundraising), the Board of Directors ▪ Category 25% FR / 75% PI: Activities focusing primarily on (management & administration) and Finance & Control public information/awareness, but also involving a request (management & administration). Costs incurred by the for donations. For instance: donor magazine, written ads/TV Tender Desk are fully allocated to costs to secure government and radio ads. grants. ▪ Category 0% FR / 100% PI: Activities with no fundraising 2. Other costs allocated to programs, fundraising and manage- aims and no request for donations. For instance: thank-you ment & administration include the costs of the departments campaigns, online information campaigns, Annual Reports, defi ned as head-o ce departments, such as the Corporate TV information campaigns, education, public information Strategy Unit, Corporate Communication and Services events. (Human resource management, IT and Facility manage- ▪ Activity-based category: Any costs incurred for an activity- ment). FTEs are used as allocation key here. based category are allocated to this category as soon as they are incurred. For instance: house-style materials (e.g. design For the 2015 budget, public information and fundraising costs in DM house style, donor magazine or Annual Report), were categorized and a list was prepared for each category memberships (e.g. of VFI, DDMA), market research (e.g. donor outlining the specifi cs of the percentage of costs that should be satisfaction survey, result analysis). allocated to fundraising (FR) and to public information (PI). What follows is a list of key activities/costs. e above list of key activities/costs was used to decide on the ▪ Category 100% FR / 0% PI: Fundraising activities focusing 2015 budget for both fundraising costs and public information. fully on generating donations. For instance: door-to-door e relative division between the two activities was: collections, notarial deeds for legacies. 1. Fundraising Cost: 50.0% (2014: 50.2%); ▪ Category 75% FR / 25% PI: Activities focusing on both 2. Public Information: 50.0% (2014: 49.8%) existing and new donors. ese activities involve a clear request for donations, with a limited public information ese percentages were used to allocate the total 2015 marketing campaign about the programs/themes in question. & funding budgets over the two activities.
Costs incurred by the Cordaid departments by the cost categories disclosed in the statement of income and expenditure:
RE OURCE PU LIC PRO RA CO T O O N CO T O CO T O IN E T ENT ANA E ENT ACTUAL UD ET ACTUAL E PENDED IN OR ATION CO T UNDRAI IN O TAININ ECURIN CO T AND AD INI 2015 2015 201 1 000 A ARENE ACTI ITIE INCO E O ERN TRATION CO T CA PAI N RO T IRD ENT PART RANT CA PAI N
Grants and 0 114,266 0 0 0 0 0 114,266 119,242 142,062 contributions
Publicity and 2,532 336 2,532 898 10 0 67 6,375 9,087 8,867 communication
Staff 1,703 19,972 1,703 0 451 0 3,177 27,006 20,943 24,742
Travel and 11 2,018 11 0 8 0 118 2,166 798 2,236 accommodation
Housing 88 799 88 0 24 0 158 1,157 1,411 1,365
Offi ce & General 227 3,522 227 0 45 0 1,445 5,466 3,300 4,559
Investment costs 0 0 0 0 0 90 0 90 140 53
Total 4,561 140,913 4,561 898 538 90 4,966 156,526 154,921 183,884
Budget 2015 5,395 137,899 5,395 900 747 140 4,447 154,921
Actual 2014 5,743 166,820 5,789 730 552 53 4,197 183,884
MAY 2016 © CORDAID 73 CORDAID 2015 ANNUAL REPORT CORDAID 201 F I A CIA INANCIAL ST A M ATEMENTS
e overall costs in 2015 come in at €1.6m over budget and €27.4 2 CO T O TA below the previous year. e largest deviations from budget were: ▪ Grants and contributions were €5.0m below budget due to TOTAL TA 2015 201 lower spending on programs and a shift from non- Head count in The Hague 250.0 288.0 operational costs to operational costs. Head count expats at fi eld offi ces 41.0 47.0 ▪ Costs for publicity and communication were €2.7m below (working abroad)
budget. During the year the decision was taken to reduce Total head count 291.0 335.0 spending on fundraising and communication to keep costs
in line with the income from own fundraising. Program staff 142.7 144.0 ▪ Sta costs were €6.1m over budget. e main additional costs came from costs for the redundancy provision and Fundraising and awareness staff 28.5 31.9 costs for redundant sta paid throughout the year. e Other departments 74.6 70.7 slight decrease in average FTEs was o set by the increase in Total average number of FTEs in 245.8 246.6 salary costs in line with the new collective labor agreement. The Netherlands Furthermore, a shift between non-operational program costs and operational program costs caused a higher cost for At year-end 2015, Cordaid had a headcount of 291 (2014: 335), of sta in 2015 compared to budget. whom were 168 women and 123 men. ▪ Travel and accommodation costs are €1.4m higher than budget. e number of monitoring and technical assistance 1 000 2015 201 visits was increased and more journeys were made to - Salaries and wages 19,565 18,633 enhance cooperation between Country O ces and Head - Social security contributions 2,293 2,095 O ce as a consequence of the more important role of - Pension costs 1,616 1,580 Country O ces in Cordaid’s operations. Additionally, more - Temporary staff 396 438 partners were visited in relation to the termination of the - Cost of training and education 520 561 relationship as a consequence of the end of MFS II. - Other personnel expenses 2,617 1,435
O ce, general and administrative expenses include costs 27,007 24,742 incurred for telecommunications, IT, advisory services and fi eld o ces. In addition to these costs, o ce, general and Salary costs was relatively stable in 2015 compared to 2014, administrative expenses also include fees charged by except for the e ect of additonal costs incurred through the PricewaterhouseCoopers Accountants N.V., our independent reorganization. e avarage number of FTE was only 0.8 FTE auditor. Total audit and advisory fees charged by below last year. e avarage salary costs rose somewhat PricewaterhouseCoopers Accountants N.V. stood at €398k in because of the general salary rise that was agreed upon in the 2015 (2014: €403k). ese fees can be broken down as follows: collective labor agreement. roughout the year additional ▪ audit fees for the Annual Report and annual accounts for costs for the reorganization were made in preparation of this 2015: €195k; reorganization and a few redundancy payments had already ▪ audit fees for the execution of project audits: €98k; been made. Furthermore, the creation of a redundancy ▪ tax advisory fees involving VAT (refer to section other provsion of €2.4m increased other personnel costs considerably. income) and income tax: €105k; ▪ fees for other non-audit services: €0k Cordaid’s pension plan is administered by the Zorg en Welzijn Pension Fund, a pension fund for the health and welfare sector. e fees above relate to all the work performed at Stichting Employees’ retirement and partner pensions are based on their Cordaid and entities included in the consolidated accounts by the pensionable salary for full-time employment, net of the audit fi rms and auditors mentioned in article 1, section 1 Wta state-pension o set. e pension fund endeavors to index-link (Wet toezicht accountantsorganisaties) and the fees charged by any accrued pension entitlements and pensions in payment the network of the audit fi rm. e fees relate to the fi scal year based on general salary trends in the collective bargaining 2015, although the related work can be executed in other years. agreements that govern its a liated employers in a particular Additionally, €159k was spent on local audits and audits of year. e pension fund decides every year whether index-link- partner organizations. ese audits were carried out by audit ing would be appropriate and, if so, what index to use given the fi rms other than PricewaterhouseCoopers Accountants N.V. fi nancial situation and expected developments in that situa- tion. In doing so, the pension fund uses nominal and realistic coverage ratios as benchmarks. Although the pension fund may Own fundraising cost was under budget due to cost reductions decide to apply catch-up index linking, such a decision will not made throughout the year to keep the fundraising cost in line have a retroactive e ect and will not trigger subsequent with the projected income from own fundraising. e cost of payments. Index linking is funded partially from contributions securing government grants is €0.2m below budget due to less and partially from the return on plan assets. e coverage ratio time spent on securing these funds than expected. was 97% at 31 December 2015. Contributions are recognized as employee benefi ts expense as A soon as they are payable. Prepaid contributions are recognized e cost of management and administration was €0.5m over within prepayments and accrued income if they entail a refund budget. Costs relating to the reorganization, including the or a reduction in future payments. Contributions payable are addition to the redundancy provision, caused this overrun. disclosed as liabilities in the balance sheet.
74 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
2 RELATED PARTIE 25 E ECUTI E RE UNERATION ET NOR ERIN TOPIN O EN I As part of Cordaid’s transition to a more social entrepreneurial NT REPORT approach, Cordaid wants to help develop new ideas for start-ups aimed at social impact. In addition, Cordaid wants to profes- Executive remuneration sionalize the management of its social impact investments e Supervisory Board has adopted an executive remuneration further and aims to increase its impact by fi nding external policy including the level of executive remuneration and other investors. To facilitate these changes Cordaid established two pay and benefi ts. e policy is updated periodically and was foundations and two private limited companies (BVs). Stichting evaluated most recently in 2011. In determining the remunera- Cordaid has full control of all these entities and they are tion policy and adopting the remuneration level, Cordaid therefore classifi ed as related parties. In addition, on December follows the recommendations for fundraising institutions 31, 2014 Cordaid established a foundation to pay salaries to issued by the VFI and the Wij els Code (see www.vfi .nl). e expats working for Stichting Cordaid. recommendations use weighting criteria to set a maximum for an executive’s annual income. e most recent VFI standard Cordaid identifi ed the following related parties: (January 1, 2012) is used to determine these weighting criteria, ▪ Stichting Cordaid Expats, e Hague which is a responsibility of Cordaid’s Controller. is has ▪ Stichting Social Business Incubator, e Hague resulted in a so-called BSD score of 496 points for the CEO, with ▪ Stichting Cordaid Participaties, e Hague (established a maximum annual income of €140,046, and 456 points for the February 12, 2015) COO/CFO, with a maximum annual income of €124,233. e ▪ Cordaid Investment Management BV, e Hague actual executive remuneration for 2015 stood at €121,210 per (established June 10, 2015) year for the CEO, Simone Filippini (based 1 FTE for a full year); ▪ Corpav BV, e Hague (established June 17, 2015) at €122,939 per year for the COO until September 30, 2015, Henri van Eeghen (based on 1 FTE for a full year); and €111,633 for the R CFO, who joined on September 1, 2015, Willem Jan van Wijk During 2015, all transactions with related parties noted above (based on 1 FTE for a full year). In other words, their remunera- were done at arm’s length. e nature of the transactions is tion is well within the maximum amounts defi ned by VFI. mainly funding of the activities of the di erent entities by Stichting Cordaid. e Social Business Incubator develops ideas Executive remuneration is comprised of gross salary costs for social enterprises, Cordaid Investment Management BV inclusive of holiday allowance, social security contributions, manages the Loans & Guarantees fund of Stichting Cordaid pension costs, expense allowances and year-end allowance. As and Stichting Participaties holds the shares of Corpav BV. a rule, all employees receive a year-end allowance. e cost of Corpav BV holds shares in one local investment in South Sudan the Supervisory Board consists of expenses for general and (Finance South Sudan), which is part of the fi nancial fi xed special meetings and travel costs. In 2015 these costs were assets on Cordaid’s consolidated balance sheet. €11,029 (2014: €20,847).
During 2015, the members of the Board were: L ILIPPINI L AN EE EN AN I CEO COO C O Employment contract Duration permanent permanent permanent Number of hours 36 36 36 part-time percentage 100 100 100 Period 1/1 - 12/31 1/1 - 9/30 1/9 - 12/31
Gross salary 103,374 78,831 32,042 Holiday allowance 8,270 6,306 2,296 Year-end allowance 9,266 7,066 2,573 Variable pay 300 0 300 Total annual income 121,210 92,203 37,211
Social security contributions (employer’s share) 9,943 7,141 3,515 Taxable allowances (Public transport abonnement) 80 4,751 844 Pension costs (employer’s share) 11,073 8,311 3,677 21,096 20,203 8,036
Total remuneration for 2015 142,306 112,406 45,247
Total remuneration for 2014 142,029 153,566 0
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R NT e maximum remuneration according to the WNT for Cordaid Starting January 1, 2013, the Dutch ‘Wet normering bezoldiging in 2015 is €163,000 for executives. e reported maximum topfunctionarissen publieke en semipublieke sector (WNT)’ Act amount per person and function is calculated based on the applies for Stichting Cordaid. e report below is prepared in full-time equivalent in the labor agreement of the executive line with the applicable regulation for Cordaid. As of 2015, the concerned. e full-time equivalent can never exceed 1.0. For WNT-maximum for development aid applies. members of the Supervisory Board, a maximum of 15.0% (chairman) or 10.0% (other members) of the maximum remu- neration of €163,000 for executives applies.
E ECUTI E A OUNT IN 1 E ECUTI E
L ILIPPINI L AN EE EN AN I
Employment
Function Chief Executive Offi cer Chief Operations Offi cer Chief Financial Offi cer
Duration employment in 2015 (days) 365 273 122
Full time equivalent during the year 1.0 1.0 1.0
Former executive? No No No
(Fictive) employment Yes Yes Yes
Remuneration
Remuneration 120,910 92,203 36,911
Taxable allowances 80 4,751 844
Provisions for future payments 11,073 8,311 3,677
Variable pay 300 0 300
Total remuneration for WNT 132,363 105,265 41,732
Applicable maximum 163,000 121,915 54,482
e remuneration for Henri van Eeghen in 2015 concerns nine months. e remuneration of Willem Jan van Wijk concerns four months in 2015. Henri van Eeghen was the Chief Operations O cer of Cordaid. Just before his departure he was replaced by Willem Jan van Wijk who was appointed as Chief Financial O cer. e former COO, Henri van Eeghen, did not receive any payment on termination of employment.
76 6 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
UPER I OR OARD A OUNT IN 1 UPER I OR OARD
E IR C ALLIN L AN DI C E AN ENNIP
Function Chair Member Member
Duration of function in 2015 (days) 365 365 195
Remuneration
Remuneration 0 0 0
Taxable allowances 0 0 0
Provisions for future payments 0 0 0
Total remuneration for WNT 0 0 0
Applicable maximum 24,450 16,300 8,708
A OUNT IN 1 EN NDE AN U EL L C E EN ER EN
Function Member Member Audit Committee Member Audit Committee
Duration of function in 2015 (days) 365 365 365
Remuneration
Remuneration 0 0 0
Taxable allowances 0 0 0
Provisions for future payments 0 0 0
Total remuneration for WNT 0 0 0
Applicable maximum 16,300 16,300 16,300
A OUNT IN 1 C T AN DE COE ERIN DE OER AN EE
Function Member Audit Committee Member Member
Duration of function in 2015 (days) 365 365 365
Remuneration
Remuneration 0 1.563 0
Taxable allowances 0 0 0
Provisions for future payments 0 0 0
Total remuneration for WNT 0 1.563 0
Applicable maximum 16,300 16,300 16,300
No employees or temporary sta of Cordaid received remuneration above the WNT-maximum in 2015. Nor was remuneration paid that was or had to be disclosed based on the WOPT or WNT in previous years. In 2015, Cordaid did not pay termination of employment payments to former employees that should be reported in these annual accounts based on the WNT.
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2 ALANCE EET AND TATE ENT O INCO E AND E PENDITURE OR U INE UNIT IN E T ENT
An important part of Cordaid’s activities is related to non-grant Cordaid presents a separate statement of income and expendi- projects. Instead of providing a grant to partner organizations, ture and balance sheet for activities related to the Loans & Cordaid provides loans or guarantees to its partners or it Guarantees Fund. participates in social entrepreneurships with the same objectives as Cordaid. e partner organizations involved are All fi gures originate from the fi gures in Cordaid’s fi nancial di erent from Cordaid’s regular partner organizations. Rather statements. e principles for valuation of assets and liabilities than NGOs or grass-roots organizations, Cordaid mainly and revenue recognition are the same in the statements below, supports Microfi nance institutions, local banks or social funds. only the classifi cation and presentation of several items di er. Until June 30, 2015, these activities were managed by the e costs for managing the fund incurred by Cordaid Investments Business Unit, which was an integral part of Investment Management B.V. are included in the statement of Stichting Cordaid. In order to increase the impact of this social income and expenditure and charged to the Loans & impact portfolio, Cordaid decided to separate the management Guarantees Fund in full as long as Cordaid is Cordaid of this portfolio from the regular activities of Stichting Cordaid Investment Management B.V.’s only client. and founded Cordaid Investment Management B.V.. e main All items in this fi nancial overview can be traced to items in objective of the separate entity is to further professionalize the fi gures presented above, except for cash and investments. fund management and to increase the impact of these social Cash and investments are allocated to the Loans & Guarantees impact investments by fi nding new external investors to Fund based on the division made in Cordaid’s fi nancial increase the scale of the activities. administration. e fund has separate and designated bank accounts, and investments are administered separately. As stakeholders interested in Cordaid’s social impact invest- ment portfolio and the work of Cordaid Investment e right-hand column in the statements below refers to the Management B.V. can have information needs other than the notes where the corresponding item can be found in Cordaid’s information disclosed in Cordaid’s fi nancial statements, full fi nancial statements.
ALANCE EET IN E T ENT U INE UNIT A O DECE ER 1 2015 1 000 NOTE 1 DEC 15 1 DEC 1 ITE IN CORDAID Assets Net fi nancial fi xed assets issued for objectives - Debt 31,682 30,673 - Equity 24,262 26,432 - Guarantees 2,481 4,651 1 58,425 61,756
- Undisbursed loans and guarantees 3 -946 -7,844 - Loan Losses 4 -2,200 -1,733 -3,306 -9,577 Net fi nancial fi xed assets issued for objectives 5 55,279 52,179 6
Net fi nancial fl oating assets Current account Cordaid 6 2,322 -750 Non-Development investments 9,915 18,838 7 Cash and bank 30,609 34,315 10 Net fi nancial fl oating assets 42,846 52,403 Total Assets 98,125 104,582
Equity and liabilities Equity (Loans & Guarantees Fund) Fund Loans & Guarantees until prior year 7 93,964 83,996 Capital contributions fi scal year 8 -439 4,439 Operating income fi scal year 9 -262 4,578 Recharged overhead fee fi scal year 10 60 951 11 93,323 93,964 11
Liabilities Current liabilities 348 10 Undisbursed Equity participations 4,454 10,608 13 4,802 10,618 Total Equity and liabilities 98,125 104,582
1 T D E C I 61 201 6 201 D 2 E 201 0 2 1 U
78 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
L L 2 C I M Total net fi nancial assets issued for objectives: Total net fi nancial assets, as per the table, increased €3.1m to approximately €55.3m, mainly because of the fall in undisbursed loans and 6 C C C C C I M A 2016 2016 L 201 A 201 0 Capital contributions fi scal year: Outfl ow of de-committed ‘MFS’ investments and other Cordaid Funds over 2015 (see note 11 of the statement of income and expenditure). Operating income fi scal year: R 10 10 Recharged overhead fee fi scal year: The overhead fee allocated to the income of the fund is a percentage of the spending on ‘MFS’ objectives. The fee is a compensation for overhead costs M II C C I M 12 11 E L 0 1 I C I M 0 12 U This refers to the undisbursed tranche of equity investment. It decreased by €6.1m because of the fulfi llment of commitments of new participations 201 2010 D
TATE ENT O INCO E AND E PENDITURE OR T E EAR ENDED DECE ER 1 2015 OR T E LOAN UARANTEE UND
1 000 NOTE 2015 201 ITE IN CORDAID
Financial income Interest income & fees 1 + 2 2,520 1,983 18 Dividends 1 + 2 101 -136 Capital gains 3 0 0 Income from non-development investments and cash 4 -203 2,295 19 2,418 4,142 Financial expenses Additions Loan Losses 5 1,328 720 18 Revaluation Investments 6 1,426 -228 18 Currency results 7 -2,705 -2,861 18 49 -2,369
Margin on fi nancial activities 2,369 6,511
Operating expenses Operating expenses direct 8 1,645 1,138 11 Operating expenses indirect 9 934 795 11 2,579 1,933 Financial result from investing activities -210 4,578
Non-operating income Capital contributions 10 -439 4,439 18 Recharged overhead fee 11 60 951 11 -379 5,390 Net result Loans & Guarantees Fund 12 -589 9,968 11
Approvals grant reserve -52 0
Net result -641 9,968
1 2 I I D 201 C 201 I portfolio by Cordaid Investment Management B.V. More information on the disappointing result of non-development can be found in note 19 tot the fi nancial statements. A This refl ects the net addition to the loan losses in the portfolio. The amount stated is the net result of the release of provisions and the actual impaired loans and D 201 A 6 201 6 201 6 R I C I C 201 C 201 2 1 201 Staffi ng direct: I C I M I C I M Staffi ng indirect: C C I C I C I 201 0 20 I 10 C C This refers to the infl ow of funds as a result of de-commitments of MFS II projects and other Cordaid Funds. In order to enhance transparency on the C I 11 R M II I C I 12 N L I M II I
MAY 2016 © CORDAID 79 CORDAID 2015 ANNUAL REPORT CORDAID 201 F I A CIA INANCIAL ST A M ATEMENTS
OT ER IN OR ATION
P Country offi ces At the end of 2015 Cordaid had 13 branches in 12 countries. e According to article 11.4 of the constitution of Cordaid, the country o ces monitor and/or implement the programs of Supervisory Board adopts the annual accounts drawn up by the di erent Business Units in these countries. e branches are in Board of Directors. Included in the annual accounts is a the following countries: proposal for the appropriation of positive or negative fi nancial ▪ Burundi balances in the fi scal year concerned. e appropriation of the ▪ Kenya balance takes into account the imposed restrictions on ▪ Democratic Republic Congo (Kinshasa and Bukavu) spending by third parties. ▪ Ethiopia ▪ Afghanistan A ▪ Central-African Republic Included in these annual accounts is the proposed appropria- ▪ Haiti tion of the negative balance of €4.8m as follows: ▪ Zimbabwe ▪ Sierra Leone 1 000 OR T E EAR OR T E EAR ▪ South Sudan ENDED 1 ENDED 1 ▪ Philippines DECE ER DECE ER ▪ Netherlands 2015 201 Appropriation of funds Cordaid did not identify any subsequent events a ecting the The balance of funds was annual accounts as presented. appropriated as follows:
Reserves
- continuity reserve -2,400 0
- other reserves -62 446
- earmarked reserves -2,120 183
-4,582 629
Funds
- restricted funds -2,509 -2,796
- semi-restricted funds 3,061 -3,230
- loans & guarantees fund -641 9,968
-89 3,942
Income from operating activities -4,671 4,571
-4,671 4,571
80 0 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
INDEPENDENT AUDITOR OPINION
Independent auditor’s report
To: the board of directors and supervisory board of Stichting Cordaid
Report on the financial statements 2015 Our opinion In our opinion the accompanying financial statements give a true and fair view of the financial position of Stichting Cordaid as at 31 December 2015, and of its result for the year then ended in accordance with the Guideline for annual reporting 650 ‘Charity organisations’ of the Dutch Accounting Standards Board.
What we have audited We have audited the accompanying financial statements 2015 of Stichting Cordaid, Den Haag (‘the foundation’).
The financial statements comprise: the statement of financial position as at 31 December 2015; the statement of income and expenditure for the year then ended; the notes, comprising a summary of the accounting policies and other explanatory information.
The financial reporting framework that has been applied in the preparation of the financial statements is the Guideline for annual reporting 650 ‘Charity organisations’ of the Dutch Accounting Standards Board.
The basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the section ‘Our responsibilities for the audit of the financial statements’ of our report.
We are independent of Stichting Cordaid in accordance with the ‘Verordening inzake de onafhankelijkheid van accountants bij assuranceopdrachten’ (ViO) and other relevant independence requirements in the Netherlands. Furthermore, we have complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA).
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Ref.: e0380164
PricewaterhouseCoopers Accountants N.V., Newtonlaan 205, 3584 BH Utrecht, P.O. Box 85096, 3508 AB Utrecht, The Netherlands T: +31 (0) 88 792 00 30, F: +31 (0) 88 792 95 08, www.pwc.nl
‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V. (Chamber of Commerce 34180284), PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V. (Chamber of Commerce 51414406), PricewaterhouseCoopers Pensions, Actuarial & Insurance Services B.V. (Chamber of Commerce 54226368), PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services are governed by General Terms and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms and Conditions of Purchase (‘algemene inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions and the General Terms and Conditions of Purchase, which have also been filed at the Amsterdam Chamber of Commerce.
MAY 2016 © CORDAID 81 1 CORDAID 2015 ANNUAL REPORT CORDAID 201 F I A CIA INANCIAL ST A M ATEMENTS
Responsibilities of the board of directors and the supervisory board The board of directors is responsible for: the preparation and fair presentation of the financial statements and for the preparation of the directors’ report, both in accordance with the Guideline for annual reporting 650 ‘Charity organisations’ of the Dutch Accounting Standards Board; and for such internal control as the board of directors determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.
As part of the preparation of the financial statements, the board of directors is responsible for assessing the foundation’s ability to continue as a going concern. Based on the financial reporting framework mentioned, the board of directors should prepare the financial statements using the going concern basis of accounting unless the board of directors either intends to liquidate the foundation or to cease operations, or has no realistic alternative but to do so. The board of directors should disclose events and circumstances that may cast significant doubt on the foundation’s ability to continue as a going concern in the financial statements.
The supervisory board is responsible for overseeing the foundation’s financial reporting process.
Our responsibilities for the audit of the financial statements Our responsibility is to plan and perform an audit engagement to obtain sufficient and appropriate audit evidence to provide a basis for our opinion. Our audit opinion aims to provide reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assurance is a high but not absolute level of assurance which makes it possible that we may not detect all misstatements. Misstatements may arise due to fraud or error. They are considered to be material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A more detailed description of our responsibilities is set out in the appendix to our report.
Announcement with respect to the directors’ report We have read the directors’ report in order to identify material inconsistencies, if any, with the audited financial statements. Based on reading the directors’ report we confirm, to the extend we can assess, that the directors’ report is consistent with the information in the financial statements and that the directors’ report contains all information required by Guideline for annual reporting 650 ‘Charity Organisations’ of the Dutch Accounting Standards Board. We have not audited or reviewed the information in the directors’ report.
Utrecht, 25 May 2016 PricewaterhouseCoopers Accountants N.V.
Original signed by M.H.A. Bauman RA
Stichting Cordaid – Ref.: e0380164
Page 2 of 3
82 2 MAY 2016 © CORDAID FCORDAID INANCIAL 201 STATEMENTS I A CIA A M CORDAID 2015 ANNUAL REPORT
Appendix to our auditor’s report on the financial statements 2015 of Stichting Cordaid In addition to what is included in our auditor’s report we have further set out in this appendix our responsibilities for the audit of the financial statements and explained what an audit involves.
The auditor’s responsibilities for the audit of the financial statements We have exercised professional judgement and have maintained professional scepticism throughout the audit in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Our audit consisted, among others of the following: Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the intentional override of internal control. Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the foundation’s internal control. Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors. Concluding on the appropriateness of the board of directors’ use of the going concern basis of accounting, and based on the audit evidence obtained, concluding whether a material uncertainty exists related to events and/or conditions that may cast significant doubt on the foundation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report and are made in the context of our opinion on the financial statements as a whole. However, future events or conditions may cause the foundation to cease to continue as a going concern. Evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the supervisory board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Stichting Cordaid – Ref.: e0380164
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MAY 2016 © CORDAID 83 CORDAID 2015 ANNUAL REPORT GRI CONTENT INDEX FOR ‘IN ACCORDANCE’ – CORE
GRI CONTENT INDEX FOR ‘IN ACCORDANCE’ – CORE
Global Reporting Initiative (GRI) In our 2015 annual report, Cordaid has incorporated GRI, version 4 (G4) requirements in our reporting. The aim is to improve and expand reporting in the coming years. Over 2015, we are reporting according to the G4 ‘in accordance “core”’ standard. Throughout the annual report, you will find the G4 label G4 that shows where we have included G4 compliant information. In line with G4 requirements, we state that: ‘This report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines.’
GENERAL STANDARD DISCLOSURES
General Standard Page Comments Disclosures
G4-1 3-4, 5, 32-35 Vision, strategy, trends, key events, achievements, failures and aims for 2016.
G4-3 5 and 49 Name of organization
G4-4 6-22, 26-27, 31, 49 Brands, products and services
G4-5 49 Location headquarters
G4-6 25 Where we work
G4-7 49 Ownership and legal form
G4-8 6, 8-9, 12-13, 17-18, Markets served, geographic, activities 21, 24-25
G4-9 30-31, 36-38 Scale of organization: people, net revenues, total capitalization, amount spent
G4-10 36 People in numbers
G4-11 - Employees covered by CLAs: will be included in 2016
G4-12 - Describe the organization’s supply chain: in progress
G4-13 32-35 Describe significant changes in size, structure, ownership, supply chain.
G4-14 35, 54 Risk management
G4-15 41 Charters
G4-16 25 Memberships
G4-17 49 Consolidated entities
G4-18/19 - Materiality aspects: still in progress
G4-20/21 - Still in progress
G4-22 Not applicable Restatements
G4-23 Not applicable Significant changes in reporting boundaries
G4-24 26 Stakeholders
G4-25 Not applicable Basis for stakeholder identification/selection.
G4-26 26-28 Communication with stakeholders
G4-27 28-29 Topics/concerns raised by stakeholders
G4-28 51 Reporting period
G4-29/30 Not applicable Date most recent report: Cordaid reports annually per calendar year
G4-31 Not applicable Contact person
G4-32 4 In accordance option: ‘core’
G4-33 81 External assurance: Independent Auditor’s Report
G4-56 41 Ethics and integrity: values, principles, Codes of Conduct
84 MAY 2016 © CORDAID
contact
P.O. Box 16440 2500 BK The Hague
Lutherse Burgwal 10 2512 CB The Hague The Netherlands
+31(0)70-31 36 300 [email protected] www.cordaid.org