South Sudan The world’s youngest nation
South Sudan will be celebrating its one-year anniversary on July 9, 2012. BRAC has been active in the area since 2007 and has grown to become one of the largest, if not the largest, NGO in the young country, reaching over 17,000 micro-borrowers with over USD 7 million in loans, distributing over 17 metric tonnes of seeds, creating work for 2,500 health workers, and educating over 6,000 students. BRAC is expanding in South Sudan by providing technical and grant support to 69 community-based organisations working in all 10 states of the new country through a special government and UN peace fund.
What started out in 1972 in a remote village of Bangladesh as a limited relief operation, turned into the largest development organisation in the world. Of major non-governmental organisations, BRAC is one the few based in the global south.
Today, BRAC is a development success story, spreading solutions born in Bangladesh to 10 other countries around the world - a global leader in creating opportunity for the world’s poor. Organising the poor using communities’ own human and material resources, it catalyses lasting change, creating an ecosystem in which the poor have the chance to seize control of their own lives. We do this with a holistic development approach geared toward inclusion, using tools like microfinance, education, healthcare, legal services, community empowerment and more.
Our work now touches the lives of an estimated 126 million people, with staff and BRAC-trained entrepreneurs numbering in the hundreds of thousands - a global movement bringing change to 10 countries in Asia, Africa and the Caribbean, with operations in our eleventh country, the Philippines, South Sudan being launched in 2012. Harnessing the past Enriching the future
Contents
Mission, Vision and Values 01 Chairperson’s Statement 02 Agriculture 04 Health 08 Adolesent Girls Initiative 11 Education 13 Microfinance 16 Inside BRAC 19 Development partners 20 BRAC across the world 22 Harnessing the past 24 Governance 26 Management 27 1 Annual Report 2011
Harnessing the past Enriching the future
Contents
Mission, Vision and Values 01 Chairperson’s Statement 02 Agriculture 04 Health 08 Adolesent Girls Initiative 11 Education 13 0LFURÛQDQFH 16 Inside BRAC 19 Development partners 20 BRAC across the world 22 Harnessing the past 24 Governance 26 Management 27 Annual Report 2011 1
Vision, Mission and Values
Vision Mission Values A world free from all forms of Our mission is to empower Innovation exploitation and people and communities in For forty years, BRAC has been an innovator in the creation of opportunities for the poor to discrimination where situations of poverty, illiteracy, lift themselves out of poverty. We value everyone has the opportunity disease and social injustice. creativity in programme design and strive to display global leadership in groundbreaking to realise their potential. Our interventions aim to development initiatives. achieve large scale, positive changes through economic Integrity and social programmes that We value transparency and accountability in all our professional work, with clear policies enable men and women to and procedures, while displaying the utmost realise their potential. level of honesty in our financial dealings. We hold these to be the most essential elements of our work ethic.
Inclusiveness We are committed to engaging, supporting and recognising the value of all members of society, regardless of race, religion, gender, nationality, ethnicity, age, physical or mental ability, socioeconomic status and geography.
Effectiveness We value efficiency and excellence in all our work, constantly challenging ourselves to perform better, to meet and exceed programme targets, and to improve and deepen the impact of our interventions. 2 Annual Report 2011 Chairperson’sStatement
It gives me great pleasure to present the ANNUALÖREPORTÖANDÖTHEÖAUDITEDÖÙNANCIALÖ statements for the year ended 31 December 2011.
4HISÖISÖAÖSIGNIÙCANTÖYEARÖFORÖ3OUTHÖ3UDANÖ emerging as an independent nation on 9 July, 2011 after decades of civil war. A proud moment for the people of this new nation no doubt, but it also highlights the stark reality of a country which has seen injustice, violence and destruction for many years. This will require concerted EFFORTÖBYÖTHEÖGOVERNMENTÖOFÖ3OUTHÖ3UDANÖ and the international development partners to rebuild this nation. The majority of THEÖPOPULATIONÖINÖ3OUTHÖ3UDANÖAREÖSTILLÖ extremely poor and it is estimated that 90 per cent of the population live below the POVERTYÖLINEÖOFÖ53$ÖÖPERÖDAYÖ4HEÖCOUNTRYÖ has one of the highest rates of maternal and infant and child mortality. In education, the situation is even worse. Less than 50 PERÖCENTÖOFÖALLÖCHILDRENÖINÖ3OUTHÖ3UDANÖ RECEIVEÖÙVEÖORÖMOREÖYEARSÖOFÖPRIMARYÖ school education and health coverage is only 30 per cent.
/URÖCOMMITMENTÖINÖ3OUTHÖ3UDANÖREMAINSÖ strong particularly in education, youth empowerment, health, agriculture, and food security. Our 225 schools are providing a chance for over 6,000 children to graduate to government formal schools to complete primary education. We will continue to focus on our goal of helping 3OUTHÖ3UDANÖTOÖACHIEVEÖTHEÖ-ILLENNIUMÖ Development Goals of universal primary Annual Report 2011 3
education and gender parity in primary ÖBORROWERSÖBRINGINGÖTHEÖCUMULATIVEÖ take advantage of every opportunity schools in the coming years. To achieve TOTALÖTOÖ53$ÖÖMILLIONÖ4HESEÖBORROWERSÖ that has come our way. The quality of this we are taking new initiatives to further were able to improve their livelihoods "2!#lSÖPERFORMANCEÖISÖATTRIBUTEDÖTOÖ improve our existing programmes and through existing and new businesses. this remarkably competent team, their plan to continue our primary education knowledge and skills. I extend my sincere PROJECTÖINÖ3OUTHÖ3UDANÖWITHÖSUPPORTÖFROMÖ Agriculture provides a living for the vast thanks to the members of the governing 5./03 Ö5.)#%&ÖANDÖ$&)$Ö"2!#lSÖFOCUSÖ majority of the population and to support body, whose leadership and foresight ONÖYOUTHÖISÖREÚECTEDÖINÖOURÖWORKÖWITHÖ the poor and marginal farmers, BRAC has steered the organisation to success. 3,000 adolescent girls and young women provided training to women farmers and )ÖTHANKÖTHEÖ3OUTHÖ3UDANESEÖGOVERNMENTÖ who meet regularly through our clubs ex-combatants to enhance their capacity ANDÖOURÖDEVELOPMENTÖPARTNERSÖINÖ3OUTHÖ getting training on life skills and livelihood in modern farming techniques and small 3UDANÖFORÖTHEIRÖCONTINUEDÖSUPPORTÖASÖ opportunities. business practices. We feel strongly we strive to create greater value in our that investing in agriculture will ensure services to contribute to the progress Under the Common Humanitarian Fund, THEÖCOUNTRYlSÖECONOMYÖANDÖPROVIDEÖ ANDÖPROSPERITYÖOFÖ3OUTHÖ3UDANÖ BRAC initiated the nutrition programme food security in the long run to its poor in 2011, through which communities and growing population. In collaboration gained awareness about infant and child with World Food Programme and the care, hygiene and healthy food habits and United Nations Food and Agriculture treatment of severe malnutrition among Organisation, BRAC distributed 5.88 THEÖUNDER ÙVESÖ/URÖCOMMUNITYÖHEALTHÖ metric tonnes of seeds and 300 metric promoters have treated over 30,000 tonnes of food during the year. children for malaria in four counties of ,AKESÖ3TATEÖANDÖOURÖHEALTHÖSTAFFÖPROVIDEDÖ I would like to take this opportunity to in-house antenatal care for pregnant COMMENDÖOURÖTEAMÖINÖ3OUTHÖ3UDANÖ mothers. who have worked with commitment to
/URÖGROWTHÖINÖMICROÙNANCEÖSECTORÖHASÖ been impeded by a number of factors and taking into account the uncertainties during the transition period following the COUNTRYlSÖINDEPENDENCEÖWEÖHAVEÖTAKENÖ measures to streamline our programme. )NÖ ÖWEÖDISBURSEDÖ53$ÖÖMILLIONÖ as micro and small enterprise loans to 4 Annual Report 2011 BRAC Programmes Agriculture
/PERATINGÖINÖEIGHTÖCOUNTRIES Ö"2!#lSÖAGRICULTUREÖPROGRAMMESÖWORKÖWITHÖGOVERNMENTSÖTOÖENSUREÖFOODÖSECURITYÖ7EÖ build systems of production, distribution and marketing of quality seeds at fair prices; conduct research to develop better inputs and practices for the agricultural sector; offer credit support to poor farmers; and promote the use of EFÙCIENTÖFARMINGÖTECHNIQUESÖANDÖPROVENÖTECHNOLOGIESÖ5SINGÖENVIRONMENTALLYÖSUSTAINABLEÖPRACTICES ÖWEÖAREÖHELPINGÖOURÖ PARTNERÖCOUNTRIESÖBECOMEÖSELF SUFÙCIENTÖINÖFOODÖPRODUCTION
Addressing the issues of agriculture in South Sudan
BRAC has been implementing an of available resources such as seeds and of resources, and the large areas of fallow AGRICULTURALÖPROGRAMMEÖINÖ3OUTHÖ3UDAN Ö tools. In this programme, eligible farmers LANDÖINÖPOST CONÚICTÖ3OUTHÖ3UDANÖ7EÖAREÖ addressing the urgent need for increased were selected and introduced to a variety IMPLEMENTINGÖOURÖPROJECTSÖINÖ3OUTHÖ3UDANÖ food security and enhancing agricultural of farming techniques, including the use through the following approaches: activities in the region. Due to the of modern technology, organic pesticides PROLONGEDÖCIVILÖWARÖANDÖINTERNALÖCONÚICTÖ and integrated pest management. INÖ3OUTHÖ3UDAN ÖAÖHUGEÖPORTIONÖOFÖFERTILEÖ land in this area had remained unutilised, The agriculture programme addresses the and farmers were incapable of involving problems of poor crop productivity, a lack themselves agriculturally due to the lack
BRAC agriculture extension worker James Mawei Mayom, 35, with okra at individual demonstration farm on the banks of the Nile River in Bor, Jonglei State, South Sudan. !GRICULTUREÖANDÖ&OODÖ3ECURITY Annual Report 2011 5 Our approach: Value chain interventions
Achieve food Security
Farmers produce high-yield crops
We promote using efficient farming We field test techniques these seeds and proven for mass technologies production We offer credit support
We mass produce and market the seeds
Establishing demonstration Capacity building of the Facilitate distribution of farms farmers in agricultural best agricultural seeds and tools practices BRAC has established nine collective 4HEÖFARMERSÖINÖ3OUTHÖ3UDANÖALSOÖ demonstration farms with 20 local 3OUTHÖ3UDANÖHASÖSIGNIÙCANTÖQUANTITIESÖOFÖ lack access to critical inputs such as farmers selected from each of the nine fallow land and while the majority of the agricultural seeds and tools for cultivation. communities to work on the demonstration people are farmers, the extended civil BRAC, in collaboration with the United plots. BRAC manages the cultivation war has limited their ability to use this Nations Food and Agricultural Organisation process by providing water pumps so the land productively. BRAC is helping the (FAO), distributes agricultural tools such farmers can continue their work during farmers, returnees and internally displaced as hoes, pangas and sickles. They also dry seasons, and by giving technical people in building their capacities on best distribute seeds, such as sorghum, maize, support with the help of local government agricultural practicies. The farmers are ground nut, okra, tomato, eggplant, bean, OFÙCIALSÖ4HEÖRESULTSÖAREÖHIGHERÖYIELDSÖANDÖ trained to choose appropriate crops and and cow peas amongst the farmers. better seeds, which motivates the other ensure optimal planting, spacing, weeding, Water pumps for irrigation have also been farmers to use modern practices and and post-harvest management. provided to the demonstration farms. tools to cultivate their land. All the produce from the demonstration farm goes to the FARMERSlÖCOOPERATIVE 6 Annual Report 2011 !GRICULTUREÖANDÖ&OODÖ3ECURITY
Support food distribution Create market linkages Growth in 2011 among farmers One of the major challenges for the In 2011, we established nine collective &OODÖINSECURITYÖINÖ3OUTHÖ3UDANÖHASÖ farmers in producing grain at a large scale demonstration farms in six states in its roots in several factors, including is the lack of access to markets. BRAC, 3OUTHÖ3UDANÖ!ÖTOTALÖOFÖ ÖWORKERS Ö unexplored farmer capacity, lack of in collaboration with WFP, implemented comprising of 180 farmers, 900 individual modern cultivation techniques and the Purchase for Progress programme demonstration farmers, 2,688 general equipment, low purchasing power and INÖTWOÖSTATESÖOFÖ3OUTHÖ3UDANÖ)NÖITSÖÙRSTÖ farmers, and 168 agriculture extension inaccessibility to markets. There was year, a total 50 metric tonnes of maize workers, have been employed to work ANÖACUTEÖSHORTAGEÖOFÖ ÖMETRICÖ were purchased from the farmers at a on the demonstration farms. To support TONNESÖOFÖFOODÖINÖ3OUTHÖ3UDANÖBEFOREÖTHEÖ competitive price, maintaining the impetus famers, 5.88 metric tonnes of seeds of commencement of the harvesting season. for further progress and the maintenance different varieties, and 300 metric tonnes To encourage the farmers to participate in of quality. of food were distributed in collaboration agricultural activities, BRAC, in partnership with WFP and FAO. Our programme has with the World Food Programme (WFP), assisted 800 contract growers in receiving has distributed rations among them. Each Reintegration of ex- training in the best agricultural practices farmer received adequate rations for three combatants TOÖPRODUCEÖÖMETRICÖTONNESÖOFÖGRAINSÖ family members for a maximum of three in the Central and Western Equatoria states in 2011. In addition, 300 women in months. This programme was initiated to assist Western Bahar el Gazhal were trained in ex-combatants in adjusting to a civilian life, modern agricultural techniques this year Provide technical advice to in support of the post-peace agreement of to enhance their capacity. We have also social stabilisation through agriculture and the farmers PROVIDEDÖSUPPORTÖTOÖ ÖEX COMBATANTSÖ business across the Lakes and Western by training them in modern agriculture The agricultural coordinators, along with %QUATORIAÖSTATESÖ4HEREÖAREÖCURRENTLYÖ Ö techniques, and small business practices ex-combatants involved in both states. The the community organisers, continually in the Lakes and Western Equatoria states. MONITORÖTHEÖÙELDÖACTIVITIESÖOFÖTHEÖFARMERSÖ programme is funded by UNDP and FAO. ANDÖTHEÖCONDITIONÖOFÖTHEÖCROPSÖ$URINGÖÙELDÖ It began in March 2010, with the tentative visits, they provide farmers with technical ending date being in March 2012. advices to improve production. Issues like pest management, storage of grains, distribution and packing are also followed up on.
A young woman stands at a BRAC supported Collective Demonstration Farm in Garbo village in Juba County. South Sudan. !GRICULTUREÖANDÖ&OODÖ3ECURITY Annual Report 2011 7
CASE STUDY
With the proper training and support, Mariam now produces good yield during the harvest season.
-!2)!-50(/52(OWFARMINGENABLEDONEWOMANTOBECOMESELF SUFÚCIENT
m3OUTHÖ3UDANÖWITHÖITSÖVASTÖ Mariam Uphour was an underprivileged other related diseases. Within four months, virgin land can be transformed woman who lived in River Kuru Boma SHEÖWASÖABLEÖTOÖTURNÖAÖPROÙTÖOFÖ330Ö Ö of Diemzubeir Payam in Raja County. 53$Ö ÖWHICHÖWASÖMOREÖTHANÖWHATÖ to become the food basket To support her family, she used to grow she was earning previously. Undergoing of the region. Thank you vegetables as a source of income, mainly the training and receiving the support GOVERNMENTÖOFÖ3OUTHÖ3UDAN Ö rigila, kudura, tomato, eggplant, and okra. from BRAC has enriched her existence, and thank you BRAC for (OWEVER ÖSHEÖHADÖDIFÙCULTIESÖINÖPRODUCINGÖ allowing her to maintain sustenance in her providing me with the support a good yield during the harvest season DAILYÖLIFEÖ3HEÖNOWÖENCOURAGESÖOTHERÖ3OUTHÖ as she was employing traditional farming 3UDANESEÖWOMANÖTOÖTAKEÖUPÖFARMINGÖASÖ and tools to grow a better life methods to grow her vegetables. their source of livelihood because it has for myself and my family.” helped her transform her life and enabled Mariam was selected by BRAC to receive HERÖTOÖBECOMEÖSELF SUFÙCIENTÖ training given especially to women under THEÖ'ENDERÖ3UPPORTÖANDÖ$EVELOPMENTÖ Programme. With the knowledge gained from the training and the assistance she received from BRAC, she can now grow tomatoes on half an acre of land, establish a total plant population through line showing and mulch manure, and use Neem plants to manage pest control and 8 Annual Report 2011 BRAC Programmes Health
7ORKINGÖINÖEIGHTÖCOUNTRIES Ö"2!#lSÖHEALTHÖPROGRAMMESÖPROMOTEÖSUSTAINABLEÖANDÖACCESSIBLEÖHEALTHCAREÖFORÖTHEÖPOORÖINÖ COLLABORATIONÖWITHÖBOTHÖTHEÖSTATEÖANDÖPRIVATEÖHEALTHCAREÖSECTORSÖ7ORKINGÖINÖTHEIRÖOWNÖSLUMSÖANDÖVILLAGES Ö"2!#lSÖkARMYlÖ of self-employed Community Health Promoters (CHPs) helps whole communities stay healthy, with a groundbreaking door-to-door approach. These workers create a cost-effective bridge between underserved poor communities and formal healthcare systems. BRAC also organises health meetings to encourage an exchange of knowledge, thus empowering people to take care of themselves, their families and neighbours.
Confronting the health needs of South Sudan
The BRAC essential healthcare BRAC takes a multi-pronged approach PROGRAMMEÖINÖ3OUTHÖ3UDANÖISÖAÖSCALABLEÖ to community health education. We offer model of community healthcare. The community health forums on issues overall goal of the health programme is to such as malaria, tuberculosis and HIV improve health conditions and increase prevention, family planning and maternal access to healthcare by providing basic health, as well as sanitation. health services in communities where Within our generation we have "2!#ÖHASÖESTABLISHEDÖMICROÙNANCEÖ groups. One member of each BRAC seen a worldwide sharp borrowing group is designated and trained reduction from deaths related as a community health promoter (CHP). They serve the health needs of the entire to treatable diseases, we owe community, with particular attention being a lot of this to BRAC. paid to poor women and children.
Jeffrey Sachs Director, Earth Institute Columbia University
During door-to-door antenatal visit, Mariana Achan (49), a BRAC Community Health Volunteer, visits Agnes Achan, at Gumbo village in Juba County. South Sudan. Health Annual Report 2011 9
Basic curative services Family planning Growth in 2011
CHPs are trained to diagnose and treat During regular household visits, the CHP Under the Common Humanitarian some basic ailments such as diarrhoea, encourages women to use modern Fund (CHF), BRAC initiated the nutrition dysentery, common cold, helminthiasis, methods of contraception where there programme for six months (June through anaemia, ringworm, scabies, hyperacidity ISÖAÖDEMANDÖ3HEÖPROVIDESÖCLIENTSÖWITHÖ November) in 2011. After an extension at and angular stomatitis. They refer birth control pills and condoms. For other no cost, the programme was approved for individuals with more serious conditions temporary or permanent methods, couples extension up to April 2012. The objective to local public and private health facilities. are referred to government primary and of the programme is to provide emergency CHPs earn a small income by selling secondary healthcare facilities. nutrition support to children suffering from over-the-counter medicines to the patient SEVEREÖACUTEÖMALNUTRITIONÖ3!- Ö4HROUGHÖ groups. It also helps reduce transmission Reproductive healthcare this programme, communities are gaining of infections and supports appropriate awareness about infant and young child treatment of diseases through early case /NEÖOFÖ"2!#lSÖPRIMARYÖCONCERNSÖISÖTOÖ feeding (IYCF), hygiene, sanitation, and detection. In line with the free healthcare increase awareness on reproductive healthy food habits, capacity building initiative, free services are provided for healthcare and how to utilise the offered by government healthcare pregnant and breastfeeding mothers and SERVICESÖAVAILABLEÖ4OÖFULÙLÖTHISÖOBJECTIVE Ö providers, and in what ways NGO staff CHILDRENÖUNDERÖÙVEÖ CHPs identify pregnant women during PROVIDEÖTREATMENTÖFORÖ3!-ÖCASESÖAFTERÖ their household visits and inform the nutritional assessment. BRAC currently programme assistants, who then perform operates three outpatient therapeutic Malaria control antenatal check-ups in the home, raising programme (OTP) centres for the treatment awareness of pregnancy care and OFÖ3!-ÖCASE $URINGÖHOUSEHOLDÖVISITS ÖTHEÖ#(0ÖIDENTIÙESÖ possible pre-natal danger signs. The suspected cases of malaria and refers the CHP keeps a tab on whether her clients 3OMEÖOFÖTHEÖHIGHLIGHTSÖFORÖÖINCLUDEÖ patients to the nearest government health have had their Tetanus Toxoid vaccine. ÖFREEÖIN HOMEÖANTENATALÖCHECK UPSÖ CENTRESÖ3HEÖFOLLOWSÖUPÖTOÖDETERMINEÖTESTÖ 3HEÖALSOÖRAISESÖAWARENESSÖREGARDINGÖTHEÖ performed by our team and 3,225 health results and see if the patients are taking importance of Voluntary Counselling and forums conducted in the communities, their anti-malarial medication. A relative of 4ESTINGÖ6#4 ÖFORÖ()6!)$3 ÖANDÖPREVENTINGÖ CONSISTINGÖOFÖ ÖPARTICIPANTSÖ3IXÖ the patient is put in charge of supervising mother to child transmission of HIV. branches are currently in operation in the medication intake according to their Juba, with an additional four branches prescription. The CHP then conducts in Rumbek. We are employing 180 AÖFOLLOW UPÖVISITÖTOÖENSUREÖTHEÖPATIENTlSÖ community health promoters who have recovery and to make sure that he or she TREATEDÖ ÖPATIENTSÖINÖ ÖWITHÖAÖ has not developed further complications. FURTHERÖ ÖCHILDRENÖUNDERÖÙVEÖTREATEDÖ The CHP keeps records of this information for malaria in four counties of Lakes in her household visit register. We are STATE ÖANDÖÖSEVEREÖACUTEÖMALNUTRITIONÖ delivering home-based management of CASESÖTREATEDÖTHROUGHÖTHEÖTHREEÖ/40lSÖ malaria as part of supporting the Child established this year. 3URVIVALÖ0ROGRAMMEÖOFÖTHEÖ-INISTRYÖOFÖ (EALTHÖOFÖTHEÖ'OVERNMENTÖOFÖ3OUTHÖ3UDANÖ A total of 360 CHPs received training ONÖ)9#& ÖWITHÖANÖADDITIONALÖÖ.'/ community-based organisation staff Tuberculosis control HAVINGÖBEENÖTRAINEDÖONÖITÖASÖWELLÖ!LSO ÖÖ government health staff were being trained ONÖ)NTEGRATEDÖ-ANAGEMENTÖOFÖ3EVEREÖ CHPs implement a well-tested, !CUTEÖ-ALNUTRITIONÖ)-3!- ÖINÖ community-based approach for increasing and sustaining TB case detection and treatment. During household visits, CHPs ask simple questions related to suspected TB cases based on symptoms. When a SUSPECTEDÖ4"ÖVICTIMÖISÖIDENTIÙED ÖTHEÖ#(0Ö encourages that person to be tested at a NEARBYÖGOVERNMENTÖFACILITYÖ3HEÖEXPLAINSÖ the dangers that TB can pose to the sick person as well as the rest of the family. 3HEÖTHENÖFOLLOWSÖUPÖONÖTHEÖPATIENTÖTOÖ determine the test results and to advise accordingly. 10 Annual Report 2011 Health
CASE STUDY
Proper identification and prompt treatment has restored Dut to full health.
DUT: Three year old girl cured from malaria
“Thank you BRAC, and Ms. Following decades of civil war, the )NÖTHEÖ,AKESÖSTATEÖOFÖ3OUTHÖ3UDAN Ö"2!#Ö Rebeka for curing me. I was HEALTHCAREÖSYSTEMÖINÖ3UDANÖISÖSTILLÖ uses a network of community-based very ill, and could not move developing. The lack in health service distributors, who are women selected infrastructure, poverty, illiteracy and lack from local communities and who have or eat, but after receiving the of adequate food supplies have taken a been trained to identify cases of malaria malaria treatment, my health heavy toll on the health of people, with and diarrhoea in children ranging from six has greatly improved.” high rates of maternal and child mortality MONTHSÖTOÖÙVEÖYEARSÖOLDÖ%VERYÖDAY ÖTHESEÖ ANDÖMORBIDITYÖ5NDER ÙVEÖMORTALITYÖISÖVERYÖ committed distributers provide door-to- high and children are susceptible to die door services to the communities in four from treatable illnesses such as malaria, counties, covering more than 100,000 Dut is a three-year-old girl and the fourth pneumonia and diarrhoea. Adults too children in total. The community-based child of Elijabet Ayam and Danial Mayom. have a high incidence of malaria cases distributors also refer those children 3HEÖLIVESÖWITHÖHERÖFAMILYÖINÖ.YANKOTÖ INÖTHEÖ3OUTHÖOFÖTHEÖCOUNTRYÖ4HEÖ7ORLDÖ suffering from severe cases of malaria to under Matangai Payam in Rumbek. One Health Organisation estimates that health the nearest primary healthcare centres. day, Dut was struck with high fever and coverage is only 30 per cent. As a community based distributor, severe joint pain in the middle of the Rebeka Ayam received training on malaria night. Her mother Elijabet knew that her 3INCEÖ ÖASÖPARTÖOFÖTHEÖ#HILDÖ3URVIVALÖ daughter was suffering from malaria, as IDENTIÙCATIONÖANDÖTREATMENTÖPROCEDURESÖ 0ROGRAMMEÖOFÖTHEÖ'OVERNMENTÖOFÖ3OUTHÖ from BRAC, after which she began her she was informed on how to identify the 3UDAN Ö"2!#ÖHASÖBEENÖAÖSUB RECIPIENTÖOFÖ work in treating malaria patients. Each symptoms, and immediately took her to the Global Fund to Fight Aids, Tuberculosis month she treats an average of 10 to 15 see the nearest BRAC community-based ANDÖ-ALARIAÖ2OUNDÖÖFORÖMALARIAÖPREVENTIONÖ patients, and by now everyone in her distributor for treatment and assistance. ANDÖTREATMENTÖOFÖCHILDRENÖUPÖTOÖÙVEÖ village knows her very well, respecting and Dut received free and prompt treatment years of age. The programme is being honouring the tremendous work she does from Rebeka Ayam, the distributor, who IMPLEMENTEDÖTHROUGHÖAÖNETWORKÖOFÖ Ö every day. THENÖADVISEDÖ$UTlSÖMOTHERÖTOÖCONTINUEÖTHEÖ community health promoters, who were treatment for the next three days. After this trained to identify signs and symptoms of period of time, Dut was completely cured malaria in children and provide artemisinin- and restored to good health. based combination therapy. BRAC Programmes Annual Report 2011 11 Adolescent Girls Initiative
"2!#lSÖPROGRAMMESÖFORÖADOLESCENTSÖAREÖDESIGNEDÖTOÖSOCIALLYÖANDÖÙNANCIALLYÖEMPOWERÖTHOSEÖBETWEENÖTHEÖAGESÖOFÖ ÖANDÖÖ4ARGETINGÖVULNERABLEÖTEENAGEÖGIRLS ÖWEÖPROVIDEÖAÖSAFEÖSPACEÖFORÖTHEMÖTOÖSOCIALISEÖANDÖRECEIVEÖMENTORINGÖ ANDÖLIFEÖSKILLSÖTRAININGÖ7ITHÖNETWORKSÖOFÖTHESEÖGIRLSlÖCLUBSÖACTIVEÖINÖÙVEÖCOUNTRIES ÖWEÖCOMBINEÖTHISÖCOMPONENTÖWITHÖ ÙNANCIALÖLITERACYÖTRAININGÖANDÖOFFERINGÖCUSTOMISEDÖMICRO LOANSÖTHATÖCONTRIBUTEÖTOÖTHEÖSOCIALÖANDÖÙNANCIALÖEMPOWERMENTÖ of adolescent girls. This in turn helps prevent early marriages and leads to a more stable future for the next generation.
Empowering adolescent girls
The girls and young women are educated Decades of struggle due to the civil war in BRAC has established 100 AGI clubs ONÖÙNANCIALÖLITERACY ÖWHICHÖPROVIDESÖ WHATÖUSEDÖTOÖBEÖSOUTHERNÖ3UDANÖANDÖISÖ in the four states of Central Equatoria, them with a better understanding of Eastern Equatoria, Jonglei and Lakes. NOWÖ3OUTHÖ3UDANÖHASÖLEFTÖTHEÖMEMBERSÖ BOTHÖPERSONALÖÙNANCESÖANDÖTHEÖÙNANCIALÖ of the society experiencing changes in Each club serves 30 adolescent girls ASPECTSÖOFÖSMALLÖBUSINESSESÖ3AVINGSÖANDÖ traditional family life as well as changing and is located no more than 15 minutes credit facilities are provided to give them societal structure. For example, the walking distance from the homes of most access to savings and credit opportunities reduction in the male population in many participants in order to ensure the safety ANDÖTOÖORIENTÖTHEMÖTOWARDSÖÙNANCIALÖ areas has resulted in women taking on and security of those selected for the empowerment from an early age. The what were previously considered to be project. This project is intended as a pilot, AGI will encourage the girls and young male responsibilities. BRAC has extensive to be scaled up and replicated in all 10 women to understand the importance experience in Bangladesh with regards states if successful. of savings while providing them with to adolescent girls who are faced with access to credit facilities as a source for poverty and are often unaware of their The objective of this programme is to seed capital to start a small business. basic human rights. The knowledge that provide a space for adolescent girls where BRAC puts emphasis on the importance has been gained has been useful in they are able to exercise their freedom to of community involvement in all of its launching a programme for adolescent express themselves, learn, and acquire programmes. Regular meetings are held GIRLSÖINÖ3OUTHÖ3UDANÖWITHÖTHEÖSUPPORTÖOFÖ VALUABLEÖLIFEÖSKILLSÖWHICHÖWILLÖBENEÙTÖTHEMÖ with committees of parents, local leaders World Bank. Even though the context of and their communities. The clubs serve and members of the community to raise "ANGLADESHlSÖADOLESCENTÖPROGRAMMEÖISÖ as centres for various trainings, and to awareness and build community support DIFFERENTÖFROMÖTHATÖOFÖ3OUTHÖ3UDAN ÖTHEÖ provide the girls and young women with for AGI participants and the programme adolescent girls initiative (AGI) programme a safe place to socialise and interact with activities. ISÖRUNNINGÖSUCCESSFULLYÖANDÖHASÖBENEÙTTEDÖ their peers and mentors. Club members the lives of many adolescent girls since its receive life skills training and gain an inception almost two years ago. understanding of critical social issues, including sexual and reproductive health, These girls and young women have held early marriage, gender-based violence, SIGNIÙCANTÖRESPONSIBILITIESÖFORÖKEEPINGÖ drug abuse and other relevant topics. The Growth in 2011 their family alive under overbearing training unit consists mostly of international circumstances. They carry the additional staff, who train the local programme staff In 2011, 100 safe spaces were established in four states – Central Equatoria, Eastern responsibility of sustaining their family MEMBERSÖANDÖOFÙCERS ÖWHOÖLATERÖTEACHÖTHEÖ amidst circumstances of low status, poor club leaders and members. Equatoria, Jonglei and Lakes. With the access to income generation activities, few help of community organisers we have and limited education opportunities, and The programme incorporates livelihood had 3,000 adolescent girls from the little or no legal redress. training which offers trainings in both POORESTÖHOUSEHOLDSÖIDENTIÙEDÖANDÖENROLLEDÖ agricultural and non-agricultural wage in the programme. 100 adolescent leaders were trained in various basic life skills. Life 4HEÖADOLESCENTÖGIRLSÖINITIATIVEÖINÖ3OUTHÖ and self-employment sectors to the 3UDANÖISÖAÖPROJECTÖWHICHÖPROMOTESÖTHEÖ PARTICIPANTSÖ4HEÖSPECIÙCÖCURRICULUMÖANDÖ SKILLSÖTRAININGÖANDÖÙNANCIALÖLITERACYÖTRAININGÖ social and economic empowerment of training modules depend on the results was provided and practiced mid-year. The adolescent girls and young women ages of an extensive labour market survey and livelihood training is an ongoing process, ÖTOÖ ÖANDÖASÖAÖRESULTÖENABLEÖTHEMÖTOÖ the demands of the locality. Examples of WITHÖAÖTOTALÖOFÖÖGIRLSÖCURRENTLYÖINVOLVEDÖINÖ training. More participants are expected as CONDUCTÖTHEMSELVESÖWITHÖCONÙDENCEÖANDÖ trainings include raising domestic animals, independence in their communities and tailoring and embroidery, photography, the programme expands. LEADÖDIGNIÙEDÖLIVESÖÖÖ computer technology, salon activities and hotel management. 12 Annual Report 2011 Adolesent Girls Initiative
CASE STUDY
Christine attended a computer training course, which has helped her tremendously in her work.
CHRISTINE: An inspirational computer operator
Christine has been employed as a Christine feels that her life has completely “I am thankful to receive a job COMPUTERÖOPERATORÖATÖ"2!#lSÖCOUNTRYÖ changed since joining the club. The from BRAC. My children are OFÙCEÖINÖ*UBA Ö3OUTHÖ3UDAN ÖSINCEÖ*UNEÖ knowledge and practical skills she gained MYÖÙRSTÖPRIORITY ÖANDÖ)ÖHOPEÖTOÖ 2010. Before joining BRAC, she was an HAVEÖGIVENÖHERÖTREMENDOUSÖCONÙDENCEÖTOÖ give them the best education adolescent leader in one of the clubs in live her life with dignity and without fear. and use the valuable THEÖ*UBAÖAREAÖ3HEÖISÖSTILLÖAÖMEMBERÖOFÖ the very same club and is an inspiration to KNOWLEDGEÖ)lVEÖRECEIVEDÖTOÖ those around her. ensure stability for my family.” After Christine attended the six-week computer training course as part of the AGI project, she applied for an open position at BRAC. Married with two kids, her aim is to provide her children with a good education in order to improve the quality of their lives. BRAC Programmes Annual Report 2011 13 Education
With education programmes in six countries, BRAC has built the largest secular private education system in the world, with 36,000 schools giving disadvantaged youth a second chance at learning. Complementing mainstream school systems with innovative teaching methods and materials, BRAC opens primary schools in communities unreached by formal education systems, bringing joyful learning to millions of children, particularly those affected by extreme poverty, violence, displacement or discrimination. At the pre-primary level, we target underprivileged children to prepare them for entry into mainstream primary school. At the secondary level, we provide need-based trainings, student mentoring initiatives, and e-learning materials to improve the mainstream secondary education system.
Giving underprivileged children an equal chance at education
BRAC pioneered a non-formal education environments, incorporate a relevant PROGRAMMEÖINÖPOST CONÚICTÖ3OUTHÖ3UDAN Ö curriculum to provide basic education and 3IRÖ&AZLEÖ(ASANÖ!BEDlSÖLIFEÖ as a means to support the government in life skills, give little to no homework, ensure and career embody the values promoting peace, along with sustainable supportive supervision, and encourage and equitable development. The goal of parents and the community to participate OFÖ7)3%Ö(EÖRECOGNISEDÖTHATÖ the education programme is to prepare in the management of the schools. Our education is a passport to students for admission to the formal focus is on providing non-formal education social inclusion and government school system at the grade 5 for children in such a manner that after level. completion they can continue their opportunity. He discovered a education within the formal government successful formula, and he )NÖTHEÖNEWLYÖINDEPENDENTÖNATIONÖOFÖ3OUTHÖ school system. Our students are given 3UDAN Ö"2!#ÖHASÖPROVIDEDÖACCESSÖTOÖ mid-term reviews which help determine adapted and expanded education for children who have never their progress. We believe it is in the best it – first in Bangladesh and had the opportunity to attend school or interest of both the education programme have dropped out of primary school. Our and the students to conduct a basic then in other countries. As a approach to education is drawn from the training for new teachers, also consisting direct consequence, millions innovations of our low-cost, non-formal of refresher training courses to ensure of people around the world primary education model that operates and maintain the quality of teaching and nationwide in Bangladesh and Afghanistan. learning experience for pupils. lead healthier, happier and This model has been effective and more productive lives. His designed in such a way that its methods vision, resourcefulness and can be adapted to meet the needs of Details of the programme STUDENTSÖINÖOTHERÖCOUNTRIESÖSUCHÖASÖ3OUTHÖ determination are vital 3UDANÖ We conduct door-to-door surveys to ingredients of the innovation identify prospective students and teachers The programme is designed to provide ANDÖCROSS CHECKÖOURÖÙNDINGSÖWITHÖLOCALÖ process and he stands as an children with important intellectual skills, EDUCATIONÖOFÙCIALSÖTOÖIDENTIFYÖDROPOUTSÖ example to all of us who such as literacy and problem solving, ANDÖTOÖPREVENTÖDUPLICATIONÖ3ELECTEDÖ which will ultimately empower individuals future teachers are hired by BRAC and believe that education, more to overcome poverty and succeed in given 12 days of basic teacher training, than anything else, determines the future. The majority of children from designed to be proactive and participatory, the destiny of individuals and poor families do not attend school or they placing emphasis on practice and eventually drop out due to various reasons. role-play teaching. The teacher training societies. We have taken these various reasons into includes topics such as basic concepts account and developed our programme of education, child psychology, different TOÖCATERÖTOÖTHESEÖSTUDENTSlÖCIRCUMSTANCESÖ teaching and learning techniques and how )TÖWASÖIMPORTANTÖTHATÖWEÖELIMINATEÖÙNANCIALÖ to support children with special needs. H.E. Dr. Abdulla bin Ali costs for students or guardians, create Al-Thani ÚEXIBLEÖSCHOOLÖSCHEDULES ÖMAINTAINÖ We monitor our programme by recruiting small class sizes managed by female one local female community organiser for 7)3%Ö7ORLDÖ)NNOVATIONÖ3UMMITÖFORÖ Education) Chairman teachers, create child-friendly teaching EACHÖÖSCHOOLSÖTOÖBEÖSUPERVISEDÖ3HEÖ 14 Annual Report 2011 Education
BRAC school in Cuei Atem Village, Bor, Southern Sudan.
visits each school twice a week to ensure the attendance of the students and the progress in learning. Teachers also receive Growth in 2011 with the intention to share the knowledge monthly refresher training throughout the GAINEDÖTHROUGHÖ"2!#lSÖEXPERIENCES Ö school cycle to hone and strengthen BRAC schools are located in Juba and encountered challenges, and lessons their abilities. All teachers are women, Yei in Central Equatoria state, Bor in learnt. Our vision is to empower students which helps parents feel comfortable in Jonglei state, Rumbek in Lakes state, around the world, for which we have sending their daughters to school and and Torit in Eastern Equatoria state. We received global recognition and have serves to increase the status of women ESTABLISHEDÖÖSCHOOLSÖWITHÖFUNDINGÖ gained a strong reputation. We have been in the community. A school building is FROMÖ"2!#Ö53! Ö0ETROFAC ÖANDÖ3TROMMEÖ fortunate to have other institutions, such rented in the local community, normally Foundation in 2010. As a result of our ASÖ5.)#%&Ö!.$Ö5./03Ö5NITEDÖ.ATIONSÖ a one-room structure made of bamboo commitment to scaling up, we have since /FÙCEÖFORÖ0ROJECTÖ3ERVICES ÖRECOGNISEÖOURÖ or mud with a metal roof, no further than provided 225 schools with additional achievements and support our mission one kilometer walking distance from the FUNDÖFROMÖ#OMICÖ2ELIEFÖANDÖ3TROMMEÖ and goals by providing funding to our STUDENTSlÖHOUSESÖ3TUDENTSÖAREÖTAUGHTÖAÖ &OUNDATIONÖ7EÖHAVEÖ ÖOUT OF SCHOOLÖ education programmes. curriculum that encompasses both basic children, 65 per cent being girls, who are primary education as well as relevant continuing their education in our non- We have made great achievements practical skills, such as topics related to FORMALÖEDUCATIONÖPROGRAMMEÖ!LMOSTÖÖ in our education programme. BRAC health and agriculture. Flexible school per cent of the children come from families promotes further growth and taking on times and a little-to-no-homework policy THATÖAREÖSUPPORTEDÖBYÖOURÖMICROÙNANCEÖ new initiatives to improve our existing allow children to complete daily chores at programme. We continue to focus on our programmes. In 2012, we plan to continue home and engage in productive activities. GOALÖOFÖHELPINGÖ3OUTHÖ3UDANÖTOÖACHIEVEÖ OURÖPRIMARYÖEDUCATIONÖPROJECTÖINÖ3OUTHÖ 4HEREÖAREÖZEROÖÙNANCIALÖCOSTSÖTOÖPARENTSÖ the Millennium Development Goals of 3UDAN ÖSUPPORTEDÖBYÖ5./03 ÖACTIVEÖINÖ and students, which, combined with the universal primary education and gender Lake states. Another initiative to be taken relevant curriculum results in extremely low parity in primary schools by 2015. is the Youth Lead project, supported by dropout rates. BRAC continues to work UNICEF,and implemented in Upper Nile, WITHÖTHEÖGOVERNMENTÖOFÖ3OUTHÖ3UDANÖTOÖ BRAC has implemented its education Jonglei state). achieve education for all, especially for programme in numerous other countries, girls. The programme contributes to the basic education of the most deprived CHILDRENÖINÖ3OUTHÖ3UDANÖWHILEÖALSOÖ promoting increased female participation in education, not only as students but as TEACHERSÖANDÖPARAPROFESSIONALSÖINÖTHISÖÙELD Education Annual Report 2011 15
CASE STUDY
Despite her hurdles, Mary is determined to fulfill her dream of becoming a member of parliament.
MARY ABD-ULAH: With BRAC, “anything is possible”
death left Mary as an orphan but she was Hence, the only alternative would be that “Although there may be fortunate to have her stepmother present -ARYÖÙNDSÖAÖJOBÖANDÖHELPSÖHERÖSTEPMOTHERÖ in her life, who took the responsibility to cover the expenses for her school fees. ÙNANCIALÖOBSTACLESÖTHATÖMYÖ continue raising her. BRAC is trying to help this girl with support stepmother and I will face FROMÖMICROÙNANCEÖORÖOTHERÖPROGRAMMESÖ trying to pursue my higher 3HEÖHASÖBEENÖSTUDYINGÖATÖTHEÖ"2!#Ö best suited for her condition to create a education, I am determined primary school and is currently enrolled job opportunity, so that she can come out to follow my dreams. BRAC INÖ3TANDARDÖÖ$ESPITEÖALLÖTHEÖHURDLESÖ OFÖPOVERTYÖANDÖATÖTHEÖSAMEÖTIMEÖÙNISHÖHERÖ she has dealt with, her great interest in EDUCATIONÖANDÖFULÙLLÖHERÖDREAMS HASÖGIVENÖMEÖAÖNEWÖLIFEÖÙLLEDÖ education and literacy has remained at the with friends and support, COREÖOFÖHERÖBEINGÖ3HEÖHASÖHADÖAÖDESIREÖ Mary has developed a passion to serve and the hope that anything is TOÖÙNISHÖPRIMARY ÖSECONDARYÖANDÖHIGHERÖ HERÖNATIONÖÖ3HEÖCONDEMNSÖVIOLENTÖACTSÖ possible.” EDUCATIONÖINÖTHEÖPURSUITÖOFÖFULÙLLINGÖHERÖ and promotes self-righteousness in dreams to be a member of parliament. her own daily life. Even though the war 3HEÖISÖWELLÖAWAREÖTHATÖINÖORDERÖTOÖDOÖSO Ö ended after two decades of struggle, she SHEÖMUSTÖBEÖLITERATEÖANDÖQUALIÙED ÖWHICHÖ feels that the people are still scared and Mary Abd-ulah is a 12-year-old girl can only be achieved if she receives an DEPRIVEDÖOFÖKNOWLEDGEÖ3HEÖENVISIONSÖAÖ FROMÖ3OUTHÖ3UDANÖWHOÖBELONGSÖTOÖTHEÖ adequate education. PROSPEROUSÖ3OUTHÖ3UDAN ÖMOREÖPEACEFUL Ö Nyangwara tribe of Yei. From a young WITHÖSUFÙCIENTÖGOVERNMENTÖSCHOOLÖFUNDSÖ age, she was faced with challenges, such Mary has been privileged to receive her and support so that children can be given as the absence of her mother in her life, education from BRAC, which has been quality education and use their voice for resulting in her being raised by her father of no cost to her stepmother. As she is liberty and truth. and step-mother. Like many other children ÙNISHINGÖ3TANDARDÖÖATÖTHEÖ"2!#Ö3CHOOL Ö INÖ3OUTHÖ3UDAN Ö-ARYÖWASÖAÖVICTIMÖOFÖTHEÖ she is obliged to join the government CONÚICTÖWHICHÖLEFTÖCHILDREN ÖFAMILIESÖANDÖTHEÖ SCHOOLÖFROMÖ3TANDARDÖÖ&ROMÖNOWÖON Ö country on a larger scale in a devastating INÖCONTRASTÖTOÖTHEÖ"2!#Ö3CHOOLÖWHICHÖ state. In 2000, her life was turned upside WASÖOFÖNOÖCOST ÖITÖWILLÖBEÖDIFÙCULTÖFORÖHERÖ down when her father was killed by rebels stepmother to pay school fees when Mary while returning from Yei to Juba. His is admitted to the government school. 16 Annual Report 2011 BRAC Programmes Microfinance
)NNOVATIVE ÖCLIENT FOCUSEDÖ ANDÖ SELF SUSTAINABLE ÖTHEÖ"2!#Ö MICROÙNANCEÖPROGRAMMEÖISÖAÖCRITICALÖCOMPONENTÖOFÖOURÖ holistic approach to support livelihoods. Over the course of the last four decades, we have grown to become one of THEÖWORLDlSÖLARGESTÖPROVIDERSÖOFÖÙNANCIALÖSERVICESÖTOÖTHEÖPOOR ÖPROVIDINGÖTOOLSÖTHATÖMILLIONSÖCANÖUSEÖTOÖBETTERÖMANAGEÖ their lives.
Improving socio-economic positions in South Sudan
3INCEÖOURÖLAUNCHÖINÖ Ö"2!#ÖHASÖ they are to change their economic, social, to discuss credit decisions with their grown to become the largest NGO and and political conditions. We deliver our DEDICATEDÖ"2!#ÖCREDITÖOFÙCERÖANDÖTOÖMAKEÖ PROVIDERÖOFÖMICROÙNANCEÖINÖ3OUTHÖ3UDANÖ MICROÙNANCEÖANDÖRELATEDÖPROGRAMMESÖBYÖ their loan repayments. BRAC provides -ICROÙNANCEÖISÖATÖTHEÖHEARTÖOFÖ"2!#lSÖ organising poor women into groups who training and technical assistance to its integrated approach for alleviating poverty. come together to improve their socio- members and others in the community, We now operate 26 branches in seven economic position. enabling them to earn more income from STATESÖOFÖ3OUTHÖ3UDAN ÖCOVERINGÖ Ö existing activities and to start new ones. communities with more than 23,980 "2!#lSÖMICROÙNANCEÖBRANCHÖOFÙCESÖ MICROÙNANCEÖMEMBERSÖ!SÖOFÖ ÖWEÖ conduct area surveys and consult with At the core of the programme are micro- DISBURSEDÖ53$ÖÖMILLIONÖINÖLOANSÖTOÖ community leaders and local elders to LOANSÖ4HESEÖLOANSÖAREÖSPECIÙCALLYÖ poor women. select 10 to 20 members for each group. designed for poor women as a means to The group is then sub-divided into groups encourage and assist them in undertaking "2!#lSÖMICROÙNANCEÖPROGRAMMEÖHASÖ OFÖÙVE ÖEACHÖWITHÖTHEIRÖOWNÖELECTEDÖLEADERÖ income generating activities. Borrowers been designed to provide a large number The members of the small groups take range in age from 18 to 50 years with of poor people with a reliable access co-responsibility to solve peer repayment little or no education, and are not served TOÖCOST EFFECTIVEÖÙNANCIALÖSERVICESÖ problems. New borrower groups meet BYÖOTHERÖMICROÙNANCEÖINSTITUTIONSÖ%ACHÖ Community partnerships and institution four times before any loan disbursement WOMANÖCANÖBORROWÖBETWEENÖ53$ÖÖTOÖ building are essential for the marginalised if takes place. After that, they meet weekly 53$Ö Ö"ORROWERSÖTYPICALLYÖOPERATEÖ
Jesfin Seama (38, left) is the group leader of the microfinance group in Gudule. She is a member of the group since 2010 and has taken two loan since then of SDG 400 and 700. She invested her loan in trade as she sells cooking oil, tomato, onion, etc in the local area. Microfinance Annual Report 2011 17 Our approach: Step-by-step economic development
:4,SVHUZ MYVT THPUZ[YLHT IHURZ
4PJYVLU[LYWYPZL SVHUZ
"2!#lSÖMICROFINANCEÖ 4PJYVSVHUZ programme reliably serves millions each year - a rarity anywhere. Recent improvements in products and ;HYNL[LKHZZL[ delivery mechanisms further NYHU[ZHUK allow BRAC to deliver better ZVM[SVHUZ financial services to the poor in the years to come.
Gregory C. Chen 2EGIONALÖ2EPRESENTATIVEÖFORÖ3OUTHÖ!SIA Consultative Group to Assist the Poor (CGAP) Growth in 2011
3OMEÖOFÖTHEÖKEYÖFEATURESÖOFÖMICRO As of 2011, we have 26 branches in loans include loan repayment in small seven out of 10 states, namely in Central weekly instalments, no requirement Equatoria, Eastern Equatoria, Western businesses that provide products or for physical collateral, life insurance, Equatoria, Jonglei, Lakes, Upper Nile, services to their local communities. competitive interest rates, and services and Western Bahr el Gazal. We currently Women with seasonal businesses, such being available in both rural and urban HAVEÖ ÖMEMBERSÖINÖOURÖMICROÙNANCEÖ as farming related activities, may also be areas. The micro-loans are utilised to run GROUPS ÖWITHÖ ÖBORROWERSÖ)NÖ Ö eligible for shorter term loans. The micro- a variety of ventures, such as operating we added new groups, now totalling loan services are easily accessible due to a retail store, a bar, a drinks shop, food 1,803 groups, to accommodate the the community organisers directly reaching vending or a local beer brewery, charcoal growing number of members. We are the poor women and meeting with them in selling, selling raw fruits and vegetables, now employing 86 staff members in our THEIRÖVILLAGESÖORÖATÖAÖMEMBERlSÖHOMEÖ!SÖAÖ selling second-hand clothes and shoes, MICROÙNANCEÖTEAMÖ!NÖAMOUNTÖOFÖ53$Ö result, women do not incur any travel costs running a beauty parlour, cultivating ÖMILLIONÖWASÖDISBURSEDÖTHISÖYEAR Ö and minimise time spent away from their agriculture, poultry and livestock rearing, BRINGINGÖTHEÖCUMULATIVEÖTOTALÖTOÖ53$ÖÖ homes and their businesses. and tailoring. million. 18 Annual Report 2011 Microfinance
Joharil’s successful enterprise has now given her the financial security to send her children to school, and live comfortably.
JOHARIL JOHN: A success story of a green grocer
“Thanks to BRAC, my family enrol their seven children in school. Their generated that year, she supported and I are very happy. My situation was grim and their meals were her husband in developing a clinic at irregular, as the cost of feeding the entire their now permanent residence. children are going to school, family was too high. and me and my husband 7ITHÖTHEÖÙNANCIALÖSUPPORTÖPROVIDEDÖ are operating successful *OHARILÖÙRSTÖLEARNEDÖABOUTÖ"2!#ÖANDÖTHEÖ by BRAC, Joharil is now able to enterprises, which lets us live MICROÙNANCEÖSERVICESÖPROVIDEDÖWHENÖAÖ send all her children to school with comfortably.” survey was conducted in her village in the income she generates from her Ö4HOUGHÖHESITANTÖATÖÙRST ÖSHEÖSOONÖ BUSINESSÖVENTUREÖ(ERÖHUSBANDlSÖ joined the organisation, taking out her clinic has also been very successful, ÙRSTÖLOANÖOFÖ330ÖÖ53$Ö ÖINÖÖ FULÙLLINGÖTHEÖMEDICINALÖANDÖ Fully utilising her loan, she constructed pharmaceutical needs of those in a permanent shop for her business, and their village, all from the convenience Joharil John is a member of one of purchased additional inventory for the of their new home; and whenever "2!#lSÖMANYÖMICROÙNANCEÖGROUPSÖ3HEÖ SHOPÖ3HEÖTOOKÖOUTÖHERÖSECONDÖLOANÖTHEÖ their children are ill, Joharil, similar works as a green grocer, and lives with her FOLLOWINGÖYEARÖFORÖ330ÖÖ53$Ö Ö to other community members, can husband and their seven children. Before and used the loan to buy a refrigerator for obtain the medicine for their ailments SHEÖBECAMEÖPARTÖOFÖTHEÖMICROÙNANCEÖ her shop so that she could sell cold soft FROMÖHERÖHUSBANDlSÖPHARMACYÖ programme, her family was living in abject DRINKSÖ3HEÖALSOÖUSEDÖAÖPARTÖOFÖTHEÖPROÙTSÖ Currently, Joharil is earning a POVERTYÖ3HEÖWASÖRUNNINGÖAÖSMALLÖRETAILÖ from her business to start construction of MONTHLYÖPROÙTÖOFÖ330ÖÖ53$Ö Ö shop from her home, but because they a permanent house for her family with the FROMÖHERÖÚOURISHINGÖBUSINESSÖ did not have a permanent house, it was help of her husband. In 2010, she took DIFÙCULTÖFORÖHERÖBUSINESSÖTOÖPROSPERÖANDÖ OUTÖHERÖTHIRDÖLOANÖFORÖ330Ö Ö53$Ö TURNÖAÖPROÙTÖ!SÖAÖRESULTÖOFÖTHEIRÖECONOMICÖ ÖTOÖINCREASEÖTHEÖSUPPLYÖOFÖGOODSÖ situation, neither she nor her husband in her shop as customer demand was were able to earn an adequate income to increasing. From the surplus income she Annual Report 2011 19 Inside BRAC
Capacity building and managers to determine whether key Recruitment (human training unit activities are being carried out as planned, resources) and whether they are having the expected impact on the target population. At "2!#lSÖTRAININGÖUNITÖINÖ3OUTHÖ3UDANÖISÖ )NÖ Ö"2!#Ö3OUTHÖ3UDANÖLAUNCHEDÖ present, a total of six monitoring staff are a management trainee programme in responsible for capacity building and working in this department. In 2011, 16 the professional development of its staff order to replace some of the expatriates ASPECTSÖRELATEDÖTOÖ"2!#Ö3OUTHÖ3UDANlSÖ INÖMANAGEMENTÖPOSITIONSÖWITHÖ3OUTHÖ members and programme participants, stakeholders, staff and others from 3UDANESEÖSTAFFÖINÖTHEÖNEARÖFUTUREÖ"2!#Ö including representatives from other different projects were selected and CURRENTLYÖENGAGESÖÖEXPATRIATESÖANDÖ national and international organisations. monitored. BRAC also hopes to establish a sector specialists for the smooth operation OFÖTHEÖPROGRAMMEÖ!ÖNUMBERÖOFÖ3OUTHÖ permanent training and resources centre In 2009, the auditing department started in Juba. 3UDANESEÖSTAFFÖRECRUITEDÖATÖTHEÖENTRYÖ its operations. With the assistance of level have been promoted to higher senior management, the department has levels, based on their good performance. In 2010, BRAC conducted various developed a system of rigorous internal #URRENTLY ÖTHEÖCOUNTRYlSÖOPERATIONSÖINCLUDEÖ TRAININGSÖWHICHÖINCLUDEDÖMICROÙNANCEÖ control. The department also assisted AÖTOTALÖSTAFFÖOFÖ ÖCOMPRISEDÖOFÖAÖNATIONALÖ management training, operational the management by providing a risk- management training, group dynamics and STAFFÖOFÖÖANDÖÖEXPATRIATES ÖOFÖWHICHÖ BASEDÖASSESSMENTÖFORÖEFÙCIENCYÖANDÖ 156 are male and 358 are female, along HIGHÖPERFORMANCEÖTRAINING ÖBASICÖTEACHERSlÖ effectiveness. training, management training, proposal WITHÖ ÖVOLUNTEERS WRITING ÖORIENTATIONÖOFÖOFÙCEÖSTAFF ÖANDÖ agricultural training, among others. The division also organised training for external ORGANISATIONSÖSUCHÖASÖTHEÖ-ICROÙNANCEÖ !CCOUNTSANDÚNANCE !SSOCIATIONÖOFÖ3OUTHÖ3UDAN ÖANDÖTHEÖ !CCOUNTSÖANDÖÙNANCEÖISÖAÖCRUCIALÖ Danish Refugee Council. BRAC ensures department, as it plays an important role that it recruits professional, skilled trainers INÖMODELLINGÖANDÖMONITORINGÖTHEÖÙNANCIALÖ to conduct each of its training sessions. system of the organisation. In 2011, The objectives include the development seven national staff worked alongside of management capacities of other NINEÖEXPATRIATEÖSTAFFÖ"2!#lSÖÙNANCEÖ NGOs and governmental organisations and accounts division performs a vital INÖ3OUTHÖ3UDANÖTOÖDEVELOPÖANDÖPROVIDEÖ ROLEÖINÖIMPROVINGÖPROGRAMMEÖEFÙCIENCY Ö enhancing management decision- making TRAININGÖCOURSESÖFORÖ"2!#lSÖDEVELOPMENTÖ practitioners and programme participants; capability and promoting transparency and and to extend appropriate support and ACCOUNTABILITYÖ5NDERÖTHISÖDIVISION ÖÙNANCIALÖ facilities to other organisations to arrange data from all transactions carried out at training, seminars and conferences. different cost centres are collected and stored. Data useful for decision making is processed into information and adequate control to safeguard organisational assets are provided. Auditing and monitoring/ internal control system
The monitoring department is a part OFÖ"2!#lSÖINTERNALÖCONTROLÖMECHANISM Ö ensuring transparency and accountability ACROSSÖALLÖTHEÖPROGRAMMESÖINÖ3OUTHÖ 3UDANÖ)TÖCONDUCTSÖPERIODICÖANALYSESÖ using selected indicators to enable 20 Annual Report 2011
Development partners
BRAC USA MINISTRY OF GENDER, SOUTH SUDAN Annual Report 2011 21 22 Annual Report 2011 )9(*across the world Annual Report 2011 23 24 Annual Report 2011 Harnessing the Past: Our innovations in the last four decades
Functional Village organisations Para-professionals
education (VOs) Pioneering models for vaccinators, community health Life skills development The most effective workers and ‘barefoot lawyers’ education for adults that helps to medium for catalysing that provide incentive based build solidarity, create a savings change in disadvantaged jobs for those ready to serve mentality and prepare people for communities their own communities new income generation
Homemade oral Incentive salary Education for rehydration system dropouts and non
solution campaign A result oriented incentive entrants package that measures A groundbreaking campaign in Our own primary schools that effectiveness of and which 13 million households in help disadvantaged children compensates our community Bangladesh learned how to make successful transitions to workers and volunteers make oral saline at home – a formal schools accordingly lesson that continues to save millions of lives from diarrhoea
Enterprises for Directly observed Credit ++ approach
value chain treatment (DOT) An integrated set of services support for TB control for the landless poor, marginal farmers and small An integrated network of our An effective treatment entrepreneurs working development programmes, method for tuberculosis, a together to strengthen the enterprises and investments result of our incentive based supply chain of the that result in a unique synergy salary system for community enterprises in which our that supports our holistic health workers, ensuring microfinance borrowers approach for alleviating poverty patients’ daily intake of invest medicine for six months or more Annual Report 2011 25
Empowerment and Adolescent clubs Pre primary schools livelihood for adolescents Safe spaces where peer driven Our own pre primary schools intervention for adolescents where we prepare A range of initiatives to empower enhance their personal growth underprivileged children to adolescents including skills and social skills enter mainstream primary training, social development and schools micro-loans for their future businesses.
Hybrid maize Popular theatre $UWLÛFLDOLQVHPLQDWRUV A pioneer venture to We transformed over 2,000 A traditional platform became commercialise corn harvesting, rural poor into entrepreneurs an effective communication which plays a key role in with an innovative livelihood medium to advocate for social making farmers shift from opportunity: providing fee changes in rural communities, traditional single cropping to based ‘door to door’ artificial particularly to the illiterate multiple cropping to maximise insemination and education land usage during idle seasons services for livestock farmers
Challenging the Sharecroppers frontiers of poverty Birthing huts scheme reduction Safe and culturally accepted A phenomenal initiative to offer A unique model focusing on childbirth places with soft loans for tenant farmers extremely deprived women to appropriate services for (sharecroppers) with a specially improve their economic and mothers in urban slums tailored recovery plan social situations, allowing ultra poor households to graduate from extreme poverty and enter mainstream development programmes
M-health services Unique management model
A mobile based platform that A unique management model community health workers use to that focuses on internal control collect data and provide a range without suffocating creativity, of real time automated services runs our large scale such as storing patient records, interventions cost effectively, categorising and assessing and enables us to constantly medical risks, prioritising learn from the communities we medical responses and serve across the world monitoring referrals 26 Annual Report 2011 Governance
Sir Fazle Hasan Abed Dr. Mahabub Muhammad A. Faruque Ahmed Founder and Chairperson, Hossain (Rumee) Ali Senior Director BRAC Executive Director, BRAC Managing Director, BRAC BRAC International and BRAC International (Ex-officio) 3IRÖ&AZLEÖISÖRECOGNISEDÖ (Ex-officio) Prior to joining BRAC, Mr. by Ashoka as one of the Mr. Rumee is the vice Ahmed worked for the “global greats” and is a chairman A renowned agricultural World Bank. He is a founding member of its of Bangladesh economist, Dr. Hossain member of the working prestigious Global Association of Banks ISÖFORMERÖHEADÖOFÖ3OCIAL group of Bangladesh !CADEMYÖFORÖ3OCIALÖ and a member of 3CIENCESÖ$IVISIONÖOF Health Watch, a civil Entrepreneurship. He THEÖ'LOBALÖ3TEERING the International Rice society initiative, vice was also appointed Committee of Research Institute chair of Bangladesh Knight Commander of THEÖk0ERFORMANCE (IRRI), Philippines and Country Coordination the Most Distinguished "ASEDÖ'RANTSÖ)NITIATIVEl former director General Mechanism for Global /RDERÖOFÖ3TÖ-ICHAELÖANDÖ of the International of the Bangladesh Funds for AID 3TÖ'EORGEÖ+#-' ÖBYÖ Finance Corporation Institute of Development Tuberculosis and Malaria the British crown in 2010 and the Technical 3TUDIESÖ")$3 Ö(E (GFATM) and a member in recognition of his Advisory Committee of was awarded the of World Bank Civil services to reducing Bangladesh Investment first Gold Medal 3OCIETYÖ#ONSULTATIVEÖ poverty in Bangladesh Climate Fund. He from the Bangladesh Group on Health, and internationally. He served as the deputy Agricultural Economist Nutrition and Population. has received numerous governor of Bangladesh Association in 1985, He also represented civil national and international Bank, and country in recognition of society on the GAVI awards for his head and general outstanding contribution Alliance Board. achievements in leading manager of Grindlays to understanding Bangladesh. He was "2!# ÖINCLUDINGÖ7)3%Ö the operation of appointed the CEO of 0RIZEÖpÖTHEÖWORLDlSÖFIRSTÖ rural economy in major international prize Bangladesh. THEÖ3TANDARDÖ#HARTERED for education by Qatar Group in Bangladesh, Foundation (2011), the HEADINGÖBOTHÖ3TANDARD David Rockefeller Chartered Bank and Bridging Leadership 3TANDARDÖ#HARTERED Award (2008), the Grindlays Bank. He also Conrad N. Hilton served as a member of Humanitarian Prize the Governing Body of ÖpÖTHEÖWORLDlSÖ 0+3&Ö Tanwir Rahman largest humanitarian Director, Finance, prize, the Inaugural BRAC and BRAC Clinton Global Citizen International !WARDÖ ÖTHEÖ(ENRYÖ R. Kravis Prize in Previously, Mr. Rahman ,EADERSHIPÖ was the Divisional Controller for HBG (Hollandsche Beton Groep) Royal BAM, Assistant Controller for Mitchell engineering, 3ENIORÖ0ROJECTÖ Accounting Manager for Bovis Lend Lease. Before joining BRAC he worked as Controller for !LLIEDÖ#ONTAINERÖ3YSTEM Annual Report 2011 27 Management
-RÖ3IDDIQUEÖISÖTHEÖCOUNTRYÖREPRESENTATIVEÖ ORGANISATIONlSÖMONITORINGÖDEPARTMENTÖÖ OFÖ"2!#Ö3OUTHÖ3UDANÖ(EÖJOINEDÖ"2!#Ö -RÖ3IDDIQUEÖHASÖPROVIDEDÖTECHNICALÖ in 1982, and over the last 30 years, has participation and coordinated in developing worked at different development projects different policy papers. He led the relief and for the organisation both nationally and REHABILITATIONÖOFÖCYCLONEÖ3IDRÖAFFECTEDÖPEOPLEÖ internationally. He has been involved in in Bangladesh, and received training in initiation of variety of projects related to rural Indonesia on disaster preparedness. He was economic development and empowerment, born in Mymensingh on 1956. and educational development. He HASÖCONTRIBUTEDÖTOÖTHEÖDIVERSIÙCATIONÖ Md. Abu Bakar Siddique of implementation strategies for the Country Representative
M. M. Habirbur Rahman Technical Manager Nutrition & Health
Khan Mohammad Ferdous 3RÖ!REAÖ%DUCATIONÖ-ANAGER Livelihoods programme 28 Annual Report 2011 Notes Annual Report 2011 29 Notes Annual Report 2011 1 28 Annual Report 2011
BRAC SOUTH SUDAN Auditor’s Report And Financial Statements For the year ended December 31, 2011 Annual Report 2011 29 30 Annual Report 2011
BRAC SOUTH SUDAN Statement of Financial Position As At 31 December 2011
2011 2010 2011 2010 Notes MF SDP Total
SSP SSP SSP SSP USD USD
ASSETS Cash and Cash Equivalents 11 9,813,726 1,831,142 11,644,868 9,116,161 3,947,413 3,690,753 Short term deposits 12 9,500,000 - 9,500,000 7,910,000 3,220,339 3,202,429 Loan & advances to customers 13 1,356,689 - 1,356,689 3,433,001 459,895 1,389,879 Grants receivable 14 - 1,371,412 1,371,412 2,115,194 464,885 856,354 Other assets 15 3,583,702 580 3,584,282 1,726,912 1,215,011 699,155 Property Plant and equipment 16 512,460 209,431 721,891 643,613 244,709 260,572 Total assets 24,766,577 3,412,565 28,179,142 24,944,881 9,552,252 10,099,142
LIABILITIES AND CAPITAL FUND Liabilities Loan from BRAC 18 8,850,000 - 8,850,000 7,410,000 3,000,000 3,000,000 Term Loan 19 2,902,051 - 2,902,051 3,986,347 983,746 1,613,906 Loan security Fund 20 1,021,008 - 1,021,008 1,374,032 346,104 556,288 Other liabilities 21 12,778,378 115,148 12,893,526 9,905,205 4,370,687 4,010,204 Total liabilities 25,551,437 115,148 25,666,585 22,675,584 8,700,537 9,180,398
Capital fund Donor Grants 17 479,998 3,297,417 3,777,415 2,459,305 1,280,480 995,670 Retained Earnings (6,279,858) - (6,279,858) (4,389,008) (2,128,765) (1,776,926) BRAC contribution 22 5,015,000 - 5,015,000 4,199,000 1,700,000 1,700,000 Total capital fund (784,860) 3,297,417 2,512,557 2,269,297 851,714 918,744
Total liabilities and Capital fund 24,766,577 3,412,565 28,179,142 24,944,881 9,552,252 10,099,142
Director Director
The notes are an integral part of these financial statements
Annual Report 2011 31
BRAC SOUTH SUDAN Statement Of Comprehensive Income For The Year Ended 31 December 2011
2011 2010 2011 2010 Notes MF SDP Total SSP SSP SSP SSP USD USD
Service charge on loans 4 1,081,061 - 1,081,061 2,037,068 366,461 824,724 Interest expense 5 751,791 - 751,791 2,437,708 254,844 986,926 Net income from service charge 329,270 - 329,270 (400,640) 111,617 (162,202)
Membership and Other Fees 6 43,185 - 43,185 605,772 14,639 245,252 Other Income 7 15,257 - 15,257 424,947 5,172 172,043 Grant income 4.1 2,146,885 6,855,425 9,002,310 11,286,327 3,051,631 4,569,363 2,205,327 6,855,425 9,060,752 12,317,046 3,071,441 4,986,658 Total operating income 2,534,597 6,855,425 9,390,022 11,916,406 3,183,058 4,824,456 Impairment losses on loans and advances to customers 8 1,011,081 - 1,011,081 1,564,887 342,739 633,557 Operating income after impairment charges 1,523,516 6,855,425 8,378,941 10,351,519 2,840,319 4,190,898
Staff costs 9 1,850,683 2,015,194 3,865,877 4,999,869 1,310,467 2,024,238 Other operating expenses 10 1,985,119 4,806,500 6,791,619 8,979,531 2,302,244 3,635,438 Depreciation 16 120,621 33,731 154,352 109,024 52,323 44,139 Total expenditure 3,956,423 6,855,425 10,811,848 14,088,424 3,665,033 5,703,815 Profit before tax (2,432,907) - (2,432,907) (3,736,905) (824,714) (1,512,917) Income tax expense Net profit for the year (2,432,907) - (2,432,907) (3,736,905) (824,714) (1,512,917) Other comprehensive income 7.1 542,057 - 542,057 - 183,748 - Total comprehensive income (1,890,850) - (1,890,850) (3,736,905) (640,966) (1,512,917)
Director Director
The notes are an integral part of these financial statements
32 Annual Report 2011
BRAC SOUTH SUDAN Statement Of Changes In Equity For The Year Ended 31 December 2011
Donor Funds Retained BRAC Total Capital Total Capital Earnings Contribution Fund Fund SSP SSP SSP SSP USD
At 1 January 2010 2,990,852 (652,103) 3,944,000 6,282,749 2,543,623 Donations received during the year 8,639,491 - - 8,639,491 3,497,770 Fluctuation adjustment (Note-23) - 255,000 255,000 103,239 Adjustment with Grant received in advance 2,115,289 - - 2,115,289 856,392 Transfered to Income Statement (11,286,327) - - (11,286,327) (4,569,363) Deficit for the year - (3,736,905) - (3,736,905) (1,512,917) At 31 December 2010 2,459,305 (4,389,008) 4,199,000 2,269,297 918,744
At 1 January 2011 2,459,305 (4,389,008) 4,199,000 2,269,297 918,744 Donations received during the year 11,064,202 - - 11,064,202 3,750,577 Fluctuation adjustment (Note-23) 816,000 816,000 276,610 Adjustment with Grant received in advance (743,782) - - (743,782) (252,129) Transfered to Income Statement (9,002,310) - - (9,002,310) (3,051,631) Deficit for the year (1,890,850) (1,890,850) (640,966) At 31 December 2011 3,777,415 (6,279,858) 5,015,000 2,512,557 851,714
Annual Report 2011 33
BRAC SOUTH SUDAN Cashflow Statement For The Year Ended 31 December 2011
2011 2010 2011 2010 Notes SSP SSP USD USD
Cash flow from Operating Activities 24 1,303,998 4,335,443 442,033 1,755,240 Loan disbursement (3,370,200) 6,220,100 (1,142,441) 2,518,259 Loan Collection 4,352,969 (6,970,119) 1,475,583 (2,821,911) Net cash flow from Operating Activities 2,286,767 3,585,424 775,175 1,451,589
Cash flow from Investing Activities Acquisition of fixed assets (250,722) (277,107) (84,991) (112,189) Sale of Fixed Assets 18,092 - 6,133 - Short term deposits (1,590,000) (950,000) (538,983) (384,615) Net cash flow from Investing Activities (1,822,630) (1,227,107) (617,841) (496,804)
Cash flow from Financing Activates Term Loan (1,084,296) (6,648,604) (367,558) (2,691,743) Grant Receivable 743,782 9,043,582 252,129 3,661,369 Loan from BRAC 1,440,000 - 488,136 - Loan Security Fund (353,026) 227,144 (119,670) 91,961 Donor fund increase/(decrease) 1,318,110 (9,514,933) 446,817 (3,852,200) Net cash flow from financing activities 2,064,570 (6,892,811) 699,854 (2,790,612)
Net (decrease)/increase in cash and cash equivalents 2,528,707 (4,534,494) 857,189 (1,835,828) Cash and cash equivalents at beginning of the year 9,116,161 13,650,655 3,090,224 5,526,581 Cash and cash equivalents at end of the year 11 11,644,868 9,116,161 3,947,413 3,690,753 34 Annual Report 2011
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011
1.00 THE REPORTING ENTITY BRAC South Sudan, an international private development organization started its activities in March 2007 and registered under the ministry of Internal Affairs, the Republic of South Sudan with a view to participating in the development activities by adapting an environmental friendly sustainable development approach through high-impact education, health, agriculture and employment and income generation activities for the poor specially for the women and children.
At present BRAC South Sudan has five development programmes that cover the areas of health, education, adolescent development program and microfinance to improving the livelihood of the poor people of South Sudan.
2.00 BASIS OF PREPARATION
2.01 Statement of Compliance The financial statements have been prepared in accordance with and comply with International Financial Reporting Standards (IFRS) .
The financial statements were issued by the Board of Directors on March 20, 2012
2.02 Basis of Measurement The financial statements are prepared under the historical cost convention.
2.03 Functional and Presentation Currency These financial statements are presented in South Sudanese Pound (SSP) previously known as Sudanese Dinar Guniah (SDG) ,which is the entity’s functional currency.
The financial statements include figures, which have been translated from South Sudanese Pound ( SSP) to United States Dollars (US $) at the year end rate of US$ 1: SSP 2.95 .These figures are for memorandum purposes only and do not form part of the audited financial statements.
2.04 Use of estimation and Judgements The preparation of financial statements in conformity with International Financial Reporting Standards (IFRS) requires management tomake judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of financial statements and reported amounts of revenues and expenses during the reported period. The estimates and associated assumptions are based on historical experiences, the results of which form the basis of making the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results ultimately may differ from these estimates.
3.00 SIGNIFICANT ACCOUNTING POLICIES The accounting policy set out below have been applied consistently to all period presented in these financial statements.
Annual Report 2011 35
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
3.01 Property,Plant and Equipment Property ,Plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset.
The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software, that is integral to the functionality of the related equipment is capitalised as part of that equipment.
Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying value of property and equipment and recognized net with other income in profit or loss.
3.02 Depreciation Depreciation is recognized in profit or loss and calculated to write off the cost of the property,plant and equipment on a straight line basis over the expected useful lives of the assets concerned, and intangible assets on a straight line basis. Land is not depreciated
The estimated useful lives for the current and comparative periods are as follows: -
Furniture & Fixtures 10% Equipments 15% Vehicles 20% Motor Vehicles 20% Bi-cycles 20%
Management and directors review the depreciation methods, residual value and useful life of an asset at the year end and any change considered to be appropriate in accounting estimate is recorded through the statement of comprehensive income.
Gains and losses on disposals are determined by comparing proceeds with carrying amounts and are included in the operating result for the reporting period.
3.03 Foreign currency Transactions. Transactions in foreign currencies are translated to SSP at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to SSP at the rate prevailing on that date. The resulting difference is treated as foreign currency gain or loss and recorded in statement of comprehensive income.
Non-monetary assets and liabilities denominated in foreign currencies, which are stated at historical cost, are translated to SSP at the foreign exchange rate ruling at the date of transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to SSP at foreign exchange rates ruling at the dates the fair values were determined. Foreign exchange differences arising on translation are recognized in the statement of comprehensive income.
36 Annual Report 2011
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
3.04 Loans and Advances to the Customers a) Loans originated by the company by providing finance directly to borrowers is categorized as loans and advances to customers and is carried at amortised cost, which is defined as fair value of the cash consideration given to originate those loans as is determinable by reference to market prices at origination date and subsequently measured at the original effective interest rate at reporting date. All loans and advances are recognized when cash is advanced to borrowers.
b) BRAC South Sudan generally provides for an allowance for loan impairment at 5% of loan disbursements made.Management regularly assess the adequacy of allowance for impairment based on the age of the loan portfolio.At the year end BRAC South Sudan calculates the required provision for loan losses based on loan classification and provisioning methodology which is shown below and any adjustments ,if required are made and accounted for in the financial statments for the year.
Loan classification Days in Arrear Provision required Standard No arrear 2% Watch list 1-30 days 5% Substandard 31-180 days 20% Doubtful 181-350 days 75% Loss 350+ days 100%
c) Loans within the maturity period is considered “Current Loans”. Loans which remains outstanding after the expiry of their maturity period are considered as ‘Late loans”. Late loans which remain unpaid after one year of being classified as “Late” are considerd as “Non-Interest bearing loans’ (NIBL) and is referred to the Board for write off. Apart from that, any loans can be written off subject to the approval of the board where the board thinks that it is not realizable due to death, dislocation of the borrower or any other natural or humanitarian disaster that affects the livelihood of the borrowers.Subsequent recoveries are credited as income in the statement of comprehensive income.
3.05 Impairment
i) Financial Assets At each balance sheet date BRAC South Sudan assesses whether there is objective evidence that financial assets not carried at fair value through profit or loss are impaired. Financial assets are considered to be impaired when objective evidence indicates that one or more events that have a negative effect on the estimated future cash flow of an asset.
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit characteristics.
All impairment losses are recognized in profit or loss and Impairment losses on available-for-sale investment securities are recognized by transferring the difference between the amortized acquisition cost and current fair value out of equity to profit or loss.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognized. For financial assets measured at amortized cost and available for sale securities is recognized in profit or loss. For available for sale securities that are equity securities the reversal is recognized directly in equity.
Annual Report 2011 37
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
ii) Non financial Assets The carrying amounts of BRAC South Sudan’s non financial assets other than inventories are reviewed at each balance sheet date to determine whether there is any indication of impairment. If such condition exists, the assets recoverable amount is estimated and an impairment loss recognised in the statement of comprehensive income whenever the carrying amount of an asset exceeds its recoverable amount.
3.06 Other Assets Other assets comprise prepayments, deposits and other recoverable which arise during the normal course of business; they are carried at original invoice amount less provision made for impairment losses. A provision for impairment of trade receivable is established when there is objective evidence that the Fund will not be able to collect all amounts due according to the original terms of receivables. The amount of the provisions is the difference between the carrying amount and the recoverable amount
3.07 Cash and Cash equivalents For the purpose of the cash flow statement, cash and cash equivalents comprise balances with less than 90 days maturity from the balance sheet date and include: cash in hand, deposits held at call with banks, net of bank overdraft facilities subject to sweeping arrangements
3.08 Provisions and Other Liabilities A provision is recognised if, as a result of a past event, BRAC South Sudan has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Other accounts payable are carried at cost, which is the fair value of the consideration to be paid in the future for goods and services received
3.09 Income Tax Current income tax is the expected tax payable on taxable income for the year, using tax rates enacted at the balance sheet date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
3.10 Revenue Recognition Revenue is recognized on an accruals basis.
i) Service Charge on Loans Service charge on loan is recognised on an accrual basis.The recognition ceases when a loan is transferred to Non Interest Bearing Loan (NIBL) as described in note-3.04. Service charge is recognised thereafter only when it is received.
ii) Membership fees and Other charges Membership fees and other charges are recognized as and when the money is received.
iv) Other Income Other income comprises interest from short term deposits,gains less losses related to trading assets and liabilities, and includes gains from disposal of BRAC South Sudan assets and all realized foreign exchange differences.
Interest income on BRAC South Sudan bank deposit is earned on an accruals basis at the agreed interest rate with the respective financial institution 38 Annual Report 2011
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
3.11 Donor Grants All donor grants received are initially recognized at fair value and recorded as liabilities in the Grants Received in Advance Account for the period.
The portion of the grants utilized to purchase property and fixed assets are transferred as deferred Income in liabilities and subsequently the portion of the depreciation expense of the same assets for the period is recognized in the statement of comprehensive income as grant income.
Grants utilized to reimburse program related expenditure, the amounts are recognized as Grant Income for the period.
Donor grants received in kind, through the provision of gifts and /or services, are recorded at fair value (excluding situations when BRAC South Sudan may receive emergency supplies for onward distribution in the event of a disaster which are not recorded as grants).
For ongoing projects and programs, any expenditures yet to be funded but for which funding has been agreed at the end of the reporting period is recognized as Grants receivable.
3.12 Grant Income Grant income is recognized to the extent that BRAC South Sudan fulfills the conditions of the grant and recorded as income in the statement of comprehensive income.
A portion of BRAC South Sudan’s donor grants are for the funding of projects and programs, and for these grants, income recognized is matched to the extent of actual expenditures incurred on projects and programs for the period.
For donor grants restricted to funding procurement fixed assets, grant income is recognized as the amount equivalent to depreciation expenses charged on the fixed asset
3.13 Loans and borrowings Loans and Borrowings are recognised as the proceeds are received, net of transaction costs incurred.The carrying values of these instruments approximate their fair values due to their short term maturity.
All borrowing costs are recognised as an expense in the statement of income and expenditure in the period in which they are incurred.
3.14 Employee benefits Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date. The company does not operate any retirement benefit fund. However severance pay is provided for in accordance with the Country statute. The company also operates an employee bonus incentive scheme. The provision for employee bonus incentive is based on a predetermined company policy and is recognised in other accruals. The accrual for employee bonus incentive is expected to be settled within 12 months.
3.15 Related Party Transactions Related parties comprise directors, subsidiaries of BRAC International and key management personnel of the company and companies with common ownership and/or directors.
3.16 Comperatives Where necessary comparative figures have been adjusted to conform to changes in presentation in the current year.
Annual Report 2011 39
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
2011 2010 2011 2010
SSP SSP USD USD 4.0 SERVICE CHARGE ON LOANS Group Loans ( Microfinance) 1,081,061 2,037,068 366,461 824,724 1,081,061 2,037,068 366,461 824,724
4.1 Grant Income Microfinance (Note-17.1.1 and 17.1.2) 2,146,885 1,776,931 727,758 719,405 SDP (Note-17.2.1 and 17.2.2) 6,855,425 9,509,396 2,323,873 3,849,958 9,002,310 11,286,327 3,051,631 4,569,363
5.0 INTEREST EXPENSE Interest on loans 704,223 2,384,172 238,720 965,252 Interest on VO members saving deposits 47,568 53,536 16,125 21,674 751,791 2,437,708 254,844 986,926
6.0 MEMBERSHIP FEES AND OTHER CHARGES Admission fee 9,447 18,930 3,202 7,664 Loan application fee 33,702 62,545 11,424 25,322 Interest income from Fixed Deposits 36 524,297 12 212,266 Total 43,185 605,772 14,639 245,252
7.0 OTHER INCOME Gain due to early repayment 15,257 11,018 5,172 4,461 Loss due to early repayment - (109,558) - (44,355) Bad debts realization - 523,487 - 211,938 Total 15,257 424,947 5,172 172,043
7.1 UNREALISED FOREIGN CURRENCY GAIN/LOSS 542,057 - 183,748 -
The exchange gains arise from translation of foreign currency transactions and revaluations of foreign currency denominated assets and liabilities to South Sudanese Pound (SSP). Financial assets and Liabilities denominated in foreign currencies are translated to SSP at rate ruling at balance sheet date.
8.0 IMPAIRMENT LOSSES ON LOANS AND ADVANCES General Provision 1,011,081 1,564,887 342,739 633,557
9.0 STAFF COSTS Salaries and Benefits-MF 1,850,683 2,589,981 627,350 1,048,575 Salaries and Benefits-SDP 2,015,194 2,409,888 683,117 975,663 Total 3,865,877 4,999,869 1,310,467 2,024,238
40 Annual Report 2011
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
2011 2010 2011 2010
SSP SSP USD USD 10.0 OTHER OPERATING EXPENSES- MF Occupancy expenses (Note-10.1) 593,411 329,257 201,156 133,302 Staff training and development 20,662 70,359 7,004 28,485 Travel and transportation 394,836 431,653 133,843 174,758 Maintenance and general expenses 324,088 290,336 109,860 117,545 Printing and office stationery 28,255 63,792 9,578 25,827 Program supplies 6,925 - 2,347 - HO logistics and management expenses 616,942 713,018 209,133 288,671 Sub Total (A) 1,985,119 1,898,415 672,922 768,589
OTHER OPERATING EXPENSES- SDP Occupancy expenses (Note-10.1) 591,590 744,368 200,539 301,364 Staff training and development 715,283 1,088,390 242,469 440,644 Travel and transportation 553,289 645,277 187,556 261,246 Maintenance and general expenses 164,661 245,795 55,817 99,512 Printing and office stationery 26,206 82,281 8,883 33,312 Program supplies 2,443,870 3,700,564 828,431 1,498,204 Cash write off - - - - HO logistics and management expenses 311,601 574,441 105,627 232,567 Sub Total (B) 4,806,500 7,081,116 1,629,322 2,866,849
Total (A+B) 6,791,619 8,979,531 2,302,244 3,635,438
10.1 Occupancy expenses are analysed as follows; MF Rent 480,515 269,463 162,886 109,094 Utilities 112,896 59,794 38,270 24,208 593,411 329,257 201,156 133,302 SDP Rent 589,281 489,329 199,756 198,109 Utilities 2,309 255,039 783 103,255 Total 591,590 744,368 200,539 301,364
11.0 CASH AND CASH EQUIVALENTS Cash in hand 86,983 186,192 29,486 75,381 Cash at Bank Nile Commercial Bank Ltd 5,427,880 5,400,613 1,839,959 2,186,483 Stanbic bank Ltd 3,912,030 1,783,552 1,326,112 722,086 Kenya Commercial bank Ltd 1,572,626 1,736,704 533,094 703,119 Equity Bank Ltd 643,075 2,210 217,992 895 Ivory Bank Ltd 2,274 6,890 771 2,789 11,557,885 8,929,969 3,917,927 3,615,372 Total Cash & Bank 11,644,868 9,116,161 3,947,413 3,690,753
Annual Report 2011 41
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
2011 2010 2011 2010
SSP SSP USD USD 12.0 SHORT TERM DEPOSITS Nile Commercial Bank 8,850,000 7,410,000 3,000,000 3,000,000 Equity Bank Ltd 650,000 500,000 220,339 202,429 Total 9,500,000 7,910,000 3,220,339 3,202,429
13.0 LOAN & ADVANCES TO CUSTOMERS: At 1 January 5,093,287 4,343,266 1,726,539 1,758,407 Loans disbursed 3,370,200 6,220,100 1,142,441 2,518,259 Less: Loans repayments (4,322,906) (5,277,666) (1,465,392) (2,136,707) Gross advances to customers 4,140,581 5,285,700 1,403,588 2,139,960 Less : Gross Loan Adjusted (2,405,283) (192,415) (815,350) (77,901) 1,735,298 5,093,285 588,238 2,062,059 Interest receivable 69,427 151,891 23,535 61,494 Impairment loss on loans advance (Note -13.1) (448,036) (1,812,175) (151,877) (733,674) Net advances to customers 1,356,689 3,433,001 459,896 1,389,879
13.1 The movement on the impairment on loans account is shown below; At 1 January 1,812,175 439,703 614,297 178,017 Charge for the year 1,011,081 1,564,887 342,739 633,557 Net write-off (2,375,220) (192,415) (805,159) (77,901) At 31 December 448,036 1,812,175 151,877 733,674
13.2 Analysis of Impairment of loans Principal Provision Provision Outstanding rate required Local Local For general Provision No past due 1,107,715 2% 22,154
For specific provision 1-30 days 87,466 5% 4,373 31-180 days 52,603 20% 10,521 181-365 days 306,106 75% 229,580 366 days and above past due 181,408 100% 181,408 627,583 425,881 1,735,298 448,036
42 Annual Report 2011
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
2011 2010 2011 2010
SSP SSP USD USD
14.0 Grant Receivable- SDP 1,371,412 2,115,194 464,885 856,354 1,371,412 2,115,194 464,885 856,354
15.0 OTHER ASSETS-MF Advance to 3rd party 60,925 181,448 20,653 73,461 Interest Receivable 1,040,699 1,048,392 352,779 424,450 Advance against salary 1,770 5,128 600 2,076 Security deposit - 13,268 - 5,372 Others (prepayments) - 7,365 - 2,982 Current account in transit 2,480,308 446,834 840,782 180,904 Transferable goods - 24,077 - 9,748 Total 3,583,702 1,726,512 1,214,814 698,993
OTHER ASSETS- SDP Advance to 3rd party 560 400 190 162 Advance against salary 20 - 7 - Total 580 400 197 162
Advances to customers are carried at amortized cost. It is estimated that the fair values of advances to customers are approximately the same as the carrying values. All advances to customers are unsecured
Annual Report 2011 43
(530) USD USD 10645 66,525 Total Total (6,663) 58,443 57,060 40,888 97,418 11,434 22,079 70,994 66,739 26,548 93,073 219,353 173,715 271,133 193,833
SSP SSP Total Total (1,565) 33,731 65,135 78,316 31,404 (19,657) 172,406 647,094 799,843 168,327 120,621 287,383 512,460 478,767 209,431 164,846 274,566 196,250
SSP SSP 5,265 8,573 (2,500) 27,990 25,490 11,652 16,917 16,338 14,749 24,904 65,865 62,065 18,549 90,769 10,155 72,220 Motor cycle Motor cycle
617 SSP SSP 6,270 1,782 2,963 2,322 1,258 4,745 1,165 3,487 11,000 23,198 34,198 11,639 17,909 16,289 11,559 Bicycle Bicycle
SSP SSP 9,983 9,164 4,992 81,490 54,050 19,978 23,033 43,011 92,529 34,072 14,975 44,105 44,924 59,080 49,916 135,540 Vehicle ( Trucktor ) ( Trucktor Vehicle Vehicle ( Trucktor ) ( Trucktor Vehicle
(717) 3,728 6,506 2,778 (3,552) 73,521 78,538 60,107 28,054 10,423 21,359 34,560 13,201 288,783 358,752 137,928 220,824 210,245 Equipments Equipments BRAC SOUTH SUDAN
(848) 6,395 4,654 9,155 SSP SSP (7,813) (7,813)
46,520 25,946 71,618 68,444 45,112 27,986 12,314 77,599 57,426 (13,605) 253,073 245,863 174,245 206,553 Furniture Furniture NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued) NOTES TO THE FINANCIAL STATEMENTS
Cost At 31 December 2010 Additions Disposal
At 31 December 2011 Depreciation At 31 December 2010
Charge for the year Adjustment At 31 December 2011 Down Vallue Written
At 31 December 2011 At 31 December 2010 PROPERTY PLANT AND EQUIPMENT (SDP) PROPERTY
Charge for the year Adjustment At 31 December 2011 Down Vallue Written
At 31 December 2011 At 31 December 2010
Additions Depreciation At 31 December 2010
Disposal At 31 December 2011
Cost At 31 December 2010
16.00 PROPERTY PLANT AND EQUIPMENT (MF) 16.00 PROPERTY
44 Annual Report 2011
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
2011 2010 2011 2010
SSP SSP USD USD 17.0 Donor Grants Donor Grants MF (Note-17.1) 479,998 428,213 162,711 173,366 Donor Grants SDP (Note-17.2) 3,297,417 2,031,092 1,117,768 822,304 3,777,415 2,459,305 1,280,480 995,670
17.1 Donor Grants MF Grants received in advance (Note-17.1.1) - - - - Deffered Income (Note-17.1.2) 479,998 428,213 162,711.19 173,365.59 479,998 428,213 162,711 173,366 17.1.1 Grants Received in advance Donations received (17.1.1a) 2,198,670 1,818,197 745,312 736,112 Transferred to deferred income - investment in fixed assets (172,406) (131,897) (58,443) (53,400) Transferred to Statement of Income and Expenditure (2,026,264) (1,686,300) (686,869) (682,713)
- - - - 17.1.1a Donation received NORAD 2,021,670 1,651,704 685,312 668,706 BRAC USA 177,000 166,493 60,000 67,406 2,198,670 1,818,197 745,312 736,112
17.1.2 Deffered Income Opening balance 428,213 386,947 145,157 156,659 Transferred from grants received in advance 172,406 131,897 58,443 53,400 Amortization during the period (120,621) (90,631) (40,888) (36,693) 479,998 428,213 162,711 173,366
17.2 Donor Grants SDP Grants received in advance (Note-17.2.1) 3,087,986 1,866,246 1,046,775 755,565 Deffered Income (Note-17.2.2) 209,431 164,846 70,994 66,739 3,297,417 2,031,092 1,117,768 822,304
17.2.1 Grants Received in advance-SDP Balance as on 1st January (248,948) 2,566,233 (84,389) 1,038,961 Donations received (17.2.1a) 8,865,532 6,821,294 3,005,265 2,761,657 Transferred to deferred income - investment in fixed assets (78,316) (145,471) (26,548) (58,895) Transferred to Statement of Income and Expenditure (6,821,694) (9,491,004) (2,312,439) (3,842,512) 1,716,574 (248,948) 581,889 (100,789) Receivable from Donors 1,371,412 2,115,194 464,885 856,354 3,087,986 1,866,246 1,046,775 755,565
Annual Report 2011 45
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
2011 2010 2011 2010
SSP SSP USD USD 17.2.1a Donation received FFR ( WFP) 251,956 128,351 85,409 51,964 P4P ( WFP) 254,036 123,500 86,114 50,000 DDR ( FAO) 164,020 154,128 55,600 62,400 FAO - 25,656 - 10,387 DDR ( UNDP) - 99,272 - 40,191 UNESCO 74,414 61,750 25,225 25,000 Gender ministry - 241,500 - 97,773 OXFAM NOVIB 928,043 291,460 314,591 118,000 BRAC USA 843,786 - 286,029 - BRAC UK 761,908 618,678 258,274 250,477 Comic Relief 721,057 - 244,426 - Stromme Foundation 314,154 223,752 106,493 90,588 World Bank 2,131,207 419,900 722,443 170,000 PSI 933,327 625,384 316,382 253,192 CHF 483,650 - 163,949 - UNDP 959,724 3,691,999 325,330 1,494,736 SF 44,250 - 15,000 - UNMIS ( Education ) - 57,964 - 23,467 UNMIS ( Agriculture ) - 58,000 - 23,482 8,865,532 6,821,294 3,005,265 2,761,657
17.2.2 DEFRRED INCOME-SDP Opening balance 164,846 37,672 55,880 15,252 Transferred from grants received in advance 78,316 145,566 26,548 58,934 Amortization during the period (33,731) (18,392) (11,434) (7,446) Total 209,431 164,846 70,994 66,739
18.0 LOAN FROM BRAC- MF 8,850,000 7,410,000 3,000,000 3,000,000 8,850,000 7,410,000 3,000,000 3,000,000
Loan from BRAC $ 3,00,000 was obtained to support Microfinance Program in South Sudan. It is repayable within twelve months after five years of disbursement.
19.0 TERM LOAN-MF UNCDF 2,645,045 3,193,212 896,625 1,292,798 KIVA 257,006 432,635 87,121 175,156 BOSS - 360,500 - 145,951 2,902,051 3,986,347 983,746 1,613,906
Loan from United Nations Capital Development Fund (UNCDF) US$ 1,292,798 equivalent to South Sudanese Pound (SSP) 3,193,212 was obtained for support to microfinance programme and bear interest at 3% per annum. It is repayable in semi annual installments over a period of three years from the date of receipt of the fund after two years of grace period.
Loan from KIVA Foundation US$ 87,121 equivalent to South Sudanese Pound (SSP) 257,006 was obtained for support to microfinance programme. It is repayable in monthly installments started from October 2008.
46 Annual Report 2011
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
2011 2010 2011 2010
SSP SSP USD USD 19.1 Movement of Term loan Opening Balance 3,986,347 360,500 1,351,304 145,951 Received during the period 225,007 3,625,847 76,274 1,467,954 Repayment (1,309,303) - (443,832) - 2,902,051 3,986,347 983,746 1,613,906
20.0 LOAN SECURITY FUND Opening balance 1,374,032 1,146,888 465,774 464,327 Received during the year 1,085,850 1,693,034 368,085 685,439 Paid off /Adjusted during the year (1,438,874) (1,465,890) (487,754) (593,478) Closing balance 1,021,008 1,374,032 346,104 556,288
The Loan Security Fund acts as collateral for the customers’ loan obligations to BRAC South Sudan. This is computed as 10% of the customers’ approved loan. In the event of any default, the clients forfeit all or part of the Loan Security Fund to the extent of the amount at risk.
21.0 OTHER LIABILITIES-MF Liabilities for expenses 1,496,399 1,021,140 507,254 413,417 Payable to Brac Sticting International 469,502 - 159,153 - Payable to Bangladesh 10,791,251 8,598,038 3,658,051 3,480,987 Withholding tax payable 21,226 14,242 7,195 5,766 12,778,378 9,633,420 4,331,654 3,900,170
OTHER LIABILITIES-SDP Liabilities for expenses 50,537 23,100 17,131 9,352 Bonous Provision 23,528 15,756 7,976 6,379 Payable to Bangladesh - 220,637 - 89,327 Social insurance 33,278 9,467 11,281 3,833 Withholding tax 6,303 1,850 2,137 749 Others income 1,502 975 509 395 Total 115,148 271,785 39,033 110,034
22.0 BRAC Contribution/ Share Capital Share Capital 5,015,000 4,199,000 1,700,000 1,700,000
23.0 Fluctuation Adjustment 816,000 255,000
This represents unrealised exchange gain on translation of Share Capital from US$ to SSP. At the Balance Sheet date (US$ 1 = SSP. 2.95).
Annual Report 2011 47
BRAC SOUTH SUDAN NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued)
24.0 CASHFLOW FROM OPERATING ACTIVITIES 2011 2010 2011 2010
SSP SSP USD USD Cash flow from operating activities Excess of income over expenditure (1,890,850) (3,736,913) (640,966) (1,512,920) Depreciation 154,352 109,024 52,323 44,139 Fluctuation Adjustment of BRAC Contribution 816,000 - 276,610 - Loan loss provision 1,011,081 1,564,887 342,739 633,557 Cash flow before changes in working capital 90,583 (2,063,002) 30,706 (835,223)
Changes in working capital Decrease/(increase) of Interest Receivable 82,464 66,446 27,954 26,901 Decrease/(increase) of other current assets (1,857,370) 190,528 (629,617) 77,137 Increase/(decrease) of other liabilities 2,988,321 6,141,471 1,012,990 2,486,426 Net cash from operations 1,303,998 4,335,443 442,033 1,755,240
25.0 Use of Estimates and Judgements The preparation of financial statements in conformity with International Financial Reporting Standards requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of financial statements and reported amounts of revenues and expenses during the reported period.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The estimates and associated assumption are based on historical experiences, the results of which form the basis of making the judgments about the carrying values and liabilities that are not readily apparent from other sources. Actual results ultimately may differ from these estimates.
BRAC makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Management identifies all significant accounting polices and those that involve high judgment and in particular the significant areas of estimation and un-certainty in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are:
i) Impairment The company regularly reviews its loan portfolio and other assets and makes judgments in determining whether an impairment loss should be recognized in respect of observable data that may impact on future estimated cash flows. The methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed regularly to reduce any differences between loss estimates and actual loss experience. Amount and timing of future cash flows are reviewed regularly to reduce any differences between loss estimates and actual loss experience.
ii) Provision and contingencies A provision is recognized if as a result of past events, the company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
48 Annual Report 2011 SSP Total Total 721,891 209,431 9,500,000 1,356,689 1,371,412 3,584,282 3,567,984 8,850,000 2,902,051 1,021,008 5,015,000 (6,279,858) 11,644,868 28,179,142 12,893,526 28,179,142
- SSP MF 512,460 479,998 2902051 9,500,000 9,813,726 1,356,689 3,583,702 8,850,000 1,021,008 5,015,000 (6,279,858) 24,766,577 12,778,378 24,766,577 - - - - SSP 1,709 1,709 SRF 20,213 18,504 18,504 20,213 - - - - SSP 6,497 6,370 6,497 6,497 6,497 (6,370) FFTIG
- - 5,288 SSP 32,788 29,814 27,500 27,500 32,788 (24,526) Nutration
- - - SSP 2,264 PSI 43,631 43,631 430,010 386,379 384,115 430,010
- - SSP 8,113 8,113 23,940 15,827 23,940 Health (98,741) 114,568
- - - SSP AGI 12,654 12,654 20,367 109,542 1,229,383 1,107,187 1,196,362 1,229,383
- - - - - SSP 3,034 3,034 Stromee Stromee 119,846 116,812 116,812 119,846
- 956 SSP 12,034 12,034 310,928 298,894 297,938 310,928 Comic Relief
- - - SSP 5,252 5,252 14,174 206,884 201,632 187,458 206,884 BRAC UK Education
- - 20 8,189 8,189 SSP 22,673 29,810 14,484 22,673 (15,346) BRAC USA
------2,425 SSP Novib 863,476 863,476 861,051 863,476 Oxfam
- - SSP Food 44,250 44,250 44,250 security 44,250 ------33 33 33 33 BRAC SOUTH SUDAN SSP Gender
------SSP 44,937 44,937 44,937 44,937 UNMIS
------284 284 284 284 SSP UNESCO
------DDR SSP 2,474 2,474 2,474 75,020 ( Yamb ) ( Yamb (72,546) NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued) NOTES TO THE FINANCIAL STATEMENTS
Agriculture Agriculture ------DDR 2,119 2,119 2,119 SSP 41,333 ( Rum ) (39,214) ------P4P SSP 223 223 223 223
- - SSP 29,546 10,460 19,086 19,086 10,460 29,546 BRAC USA
- - - - - 560 FFR SSP (WFP) 12,545 63,824 12,545 12,545 (51,839)
- - 9,516 SSP 9,516 9,516 FFR ( BRAC ) 901,131 (891,615)
BRAC South Sudan Balance Sheet TOTAL TOTAL As at 31st December’ 2011 Fixed Deposits FUND LIABILITIES AND CAPITAL Liabilities:
Donor Fund investment in Fixed Assets ASSETS Grants and accounts Receivable Advances, deposits and prepayment Cash in hand and at banks Fixed assets Loans to Village Organisation members Grants received in advance account
Loan from BRAC Term Loan Term
Loan security fund Liabilities for Expenses BRAC Contribution Retained Surplus TOTAL TOTAL
Annual Report 2011 49 - - 6,665 73,198 33,238 SSP 329,270 600,499 948,125 408,802 483,802 425,681 813,783 393,275 153,479 485,292 106,175 154,352 Total Total 928,543 8,997,363 3,472,602 9,927,132 1,011,081 1,919,891 11,817,984 (1,890,852)
-
6,925 20,662 MF SSP 329,270 600,499 394,836 324,088 141,153 480,515 120,621 616,942
1,011,081 2,146,885 1,850,683 3,076,654 (1,890,852) 4,967,506
------
5,368 SSP SRF 38,434 16,283 40,455 10,511 17,200 26,273 2,074,415 2,074,415 2,074,415 1,919,891
------756 756 756 756 SSP FFTIG ------772 2,488 SSP 83,371 15,735 25,690 60,568 33,658 490,172 158,002 490,172 109,888 490,172
Nutration ------
7,498 7,590 SSP 18,320 20,502 38,499 PSI 698,479 108,391 356,210 698,479 141,469 698,479
------
5,664 8,794 7,888 1,431 32,959 16,668 23,656 SSP (11,236) 185,844 100,020 185,844 185,844 Health
------742 670 7,925 63,305 36,963 44,330 26,934 33,238 33,221 90,945 SSP AGI 325,426 106,798 250,790 1,021,287 1,021,287 1,021,287
------476 4,222 3,796 3,903 7,220 3,846 SSP 29,579 11,211 80,480 15,034 57,904 36,510 19,321 273,502 273,502 273,502 Stromee Stromee
------36 9,722 7,510 7,722 8,479 2,819 SSP 80,506 16,198 13,340 90,040 53,463 17,062 Relief Comic 411,085 411,085 104,188 411,085
------
8,270 8,137 1,907 1,239 25,729 44,497 83,953 15,290 15,358 37,423 SSP 458,514 113,394 458,514 103,317 458,514 BRAC UK
Education
------1,171 9,274 2,000 1,806 SSP 99,301 46,306 30,598 64,408 22,467 15,257 27,858 425,700 425,700 105,254 425,700 BRAC USA ------BRAC SOUTH SUDAN SSP 37,393 37,872 25,532 10,365
Oxfam 397,392 153,507 397,392 132,723 397,392 ------SSP 3,469 3,469 3,469 3,469 Gender ------SSP 9,151 9,151 9,151 9,151 UNMIS
------36 3,125 3,960 6,586 SSP 74,459 74,459 11,890 48,862 74,459 UNESCO NOTES TO THE FINANCIAL STATEMENTS TO 31 DECEMBER 2011 (continued) NOTES TO THE FINANCIAL STATEMENTS
------240 DDR SSP 6,415 3,000 Yambio 29,965 29,965 20,310 29,965 Agriculture Agriculture ------DDR 1,440 2,599 6,590 SSP Rum 52,109 78,822 15,154 156,714 156,714 156,714
------P4P SSP 7,761 9,500 1,506 59,173 59,173 40,406 59,173
------9,699 4,436 SSP 14,135 14,135 14,135 BRAC USA
------SSP FFR 6,522 2,858 9,645 8,037 5,636 66,266 66,266 33,568 66,266
BRAC South Sudan Income Statement Of Comprehensive
For the period ended 31 December’2011
Service Charge on loan to group members INCOME
Membership and Other Fees Donor grants Total Income Total Teachers salaries Teachers Travelling & transportation Travelling EXPENDITURE
Staff training & development Beneficiary Training Beneficiary School rent and maintenance Teachers training Teachers Salaries & benefits
Maintenance & general expenses Stationery,rent &utilities Stationery,rent SS Training SS Training Program supplies Refreshers course Impairment losses on loans and advances to customers Contengency cost Reserch & evaluation Monotoring & Evaluation Depreciation on fixed assets H.O.Logistics & management support Fund disbursement to NGO/CBO’S
Total expenses Total
Net Surplus for the year 50 Annual Report 2011 Photo Credit: Client Photos: BRAC Reat of the Photos: BRAC/Shehzad Noorani/Lorne Mallin
BRAC BRAC International BRAC South Sudan BRAC Centre T : +88 02 9881265 Teleportboulevard 140 Plot # 31, Block L 14 75 Mohakhali F : +88 02 8823542 1043 EJ Amsterdam Atlabara, Juba Dhaka 1212 E : [email protected] Netherlands South Sudan Bangladesh W : www.brac.net www.brac.net BRAC communications/INT AR11/Aug12