2018 ─ CYFI Annual Report 2018

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OUR SUPPORTERS DONORS G20 Saudi Secretariat

PRO-BONO SUPPORTERS

We thank you all for your invaluable support which in 2018 helped us deliver the results reported herein. 2


Child & Youth Finance International

ANNUAL REPORT

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LETTER FROM THE SECRETARIAT Dear Reader, What a year 2018 has proven to be. Having seen in 2017 the growth of the Movement reach a critical mass, the focus of this year was on collecting success stories from around the world, ensuring smooth integration of ongoing projects by national stakeholders and documenting the CYFI experience in a structured framework that can be used by others wishing to undertake a systems change approach. 2018 was therefore one of transition and celebration. Global Money Week once again shattered the record of the years before, with activities taking place in 151 countries and overseas territories. This year saw a plethora of themes being explored, with a new special focus on digital finance, with a number of events dedicated to the topics of fintech and blockchain. More celebration came in the form of the Global Inclusion Awards (GIA) in 2018. In collaboration with the G20’s Global Partnership for Financial Inclusion 2018 and 2020 Presidents (Argentina and Saudi Arabia respectively), the GIA were held in Riyadh, Saudi Arabia. In front of the magical backdrop of the palatial Ritz Carlton Hotel, numerous countries around the world gathered to hear about and recognize countries which were undertaking exceptional efforts to further Economic Citizenship in their countries. While celebrating past successes, we at CYFI have kept an eye on the future. Our successful work with Economic Citizenship has created an excellent springboard from which to leap toward other important issues, which once again, the power of collaboration can help tackle. Building on our Ye! initiative, we have been exploring the gaps in the system for youth unemployment and engaged in various strategy building and stakeholder consultation exercises. We look forward to 2019 to light the way ahead for the future direction of CYFI. As always, we wish to convey our deepest gratitude and admiration for the thousands of organizations that make up the Child and Youth Finance Movement for continuing to pull out all the stops, overcome daily challenges and serve as beacons of inspirations for others in this ever expanding and strengthening the global Movement.

Bram van Eijk Co-Director Child & Youth Finance International (CYFI)

Lubna Shaban Co-Director Child & Youth Finance International (CYFI)

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CONTENTS LETTER FROM THE SECRETARIAT..............................................................................................5 ABOUT CHILD AND YOUTH FINANCE INTERNATIONAL......................................................8 Theory of Change..........................................................................................................................8 Systems Change...........................................................................................................................9 Our Unique Approach: Collaborative Systems Change.........................................................9 ACTIVITIES IN 2018 BY STRATEGIC OBJECTIVE.................................................................10 CYFI 3 Main Strategic Objectives.............................................................................................10 Strategic Objective 1 ─ ADVOCATE..........................................................................................12 Global Money Week 2018..........................................................................................................12 Global Inclusion Awards 2018..................................................................................................14 Diagnostic Tool............................................................................................................................18 Strategic Objective 2 ─ NETWORK CONNECTOR AND EXPERT HUB...............................19 Best Practices Sharing and Documentation.........................................................................19 Systems Change Country Work................................................................................................20 Meetings......................................................................................................................................22 Ye!............................................................................................................................................. 23 6


Strategic Objective 3 ─ NETWORK ADVISOR......................................................................29 SchoolBank.................................................................................................................................29 Workshops and Trainings..........................................................................................................30 OPERATIONS AND RESOURCE MOBILIZATION....................................................................31 Sustainability...................................................................................................................... 31 Communication with Third Parties and Donors....................................................................31 Financial Reserves and Investments......................................................................................31 Budget..................................................................................................................................31 GOVERNANCE AND OVERSIGHT..............................................................................................32 Supervisory Board .....................................................................................................................32 CYFI Secretariat Team................................................................................................................33 LOOKING AHEAD TO 2019.........................................................................................................34 ANNEX A: GLOSSARY OF TERMS.............................................................................................37 ANNEX B: FINANCIAL STATEMENT AND INDEPENDENT AUDITORS REPORT................43

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ABOUT CHILD AND YOUTH FINANCE INTERNATIONAL THEORY OF CHANGE In June 2010, 126 experts from 40 countries gathered for the first topical meeting in the Netherlands to share their insights and expertise in developing the Movement as well as the organization’s Theory of Change. Over the course of June 2010 – July 2011, they came together in dedicated working groups for each of the key strategic areas of the Movement. The Child & Youth Finance International (CYFI) Research Working Group comprised of leading academics in the fields of financial literacy and children’s rights, combining their expertise to develop CYFI’s Theory of Change in the form of a detailed model of Full Economic Citizenship. CYFI’s model poses that financial education, social and livelihoods education, and financial inclusion are the building blocks of empowerment and financial capability that underpin Full Economic Citizenship for children and youth. Financial education includes instruction and/or materials designed to increase financial knowledge and skills. Social education and livelihoods education are the provision of knowledge and skills that change individuals’

understanding and awareness of their rights and the rights of others. It also involves fostering of life skills. Financial inclusion is access to appropriate, quality, and affordable financial services. Empowerment is the sense of confidence and efficacy experienced by children and youth through controlling their own lives, claiming their rights, and having empathy toward others.

Financial capability has individual and structural components. It combines a person’s ability to act with the opportunity to act. To be financially capable, one must have financial knowledge and skills, as well as access to appropriate financial services to enhance social and economic well-being. At the center of the Theory of Change lies the ultimate beneficiary, the individual child

Figure 1. CYFI Model of Economic Citizenship

ECONOMIC CITIZENSHIP • • • • •

Economic Citizenship

Reduced income & asset poverty Economic & social engagement Sustainable livelihoods Economic & social well being Rights for & responsibilities to self, family, and others

Financial Capability

Empowerment

Financial Education

Social & Livelihoods Education

SURROUNDING ECOSYSTEM Source: Child & Youth Finance International, 2011 8

Financial Inclusion


or youth. When developing the CYFI Theory of Change, the Research Working Group used the UN Convention on the Rights of the Child as its base. The Convention outlines the child’s right: • To survive; • To develop to the fullest; • To protection from harmful influences, abuse, and exploitation; and • To participate fully in family, cultural and social life. States that are parties to the Convention recognize that poverty and unemployment severely restrict, if not completely deny, children and youth these fundamental rights. In order to reach the goal of Full Economic Citizenship, the group concluded that a concentrated effort of intertwined development interventions is necessary. CYFI’s Full Economic Citizenship Model states that holistic financial, social, and livelihoods education, when implemented in combination with financial inclusion, can lead to greater capability and empowerment, thus helping children and youth become thriving economic citizens (Figure 1). In the next phase, we will review and, if needed, update this model based on new research and the learnings from the last 5 years.

SYSTEMS CHANGE From the outset, we realized that our large-scale challenge requires large scale thinking, and that the current situation – as well as the barriers on the way to change – is the result of the systems in which we live. Like Russian “Matryoshka” dolls that fit one inside the other, most systems contain other systems and are contained within larger systems: cells within organs, within individuals, within communities, within counties, states, and continents. Changing a system affects both the systems within it and the systems in which it is nested. The challenge for change agents is choosing the right level, or levels, of scale for the changes they seek. The answer is often working at multiple levels: top down, bottom up, outside in, and inside out.

information that contradicts old assumptions, by demonstrating those things people believe they cannot do, are already being accomplished somewhere, by inviting new people into the conversation, and by rearranging structures so that people relate in ways they are not used to and presenting issues from different perspectives.

model, CYFI serves as an agent of change - driving innovation, demonstrating proof of concept, sharing knowledge, rallying all relevant stakeholders to the cause, and propelling joint actions.

At the same time, one can create conditions that take advantage of the system’s capacity for generating creative solutions: nurture networks of connection and communication, create climates of trust and mutual support, encourage questioning, and reward innovation. It is CYFI’s role as a leader and change agent to recognize emergent opportunities, articulate them, and incorporate them into organization and/or program designs.

• Innovation: as organizations are often unwilling to invest time, money and effort into new and untested approaches, it is our role as an agent of change to offer both innovation and proof of concept.

OUR UNIQUE APPROACH: COLLABORATIVE SYSTEMS CHANGE To meet the considerable challenges facing us, we pioneered a new way of thinking and designed our “Collaborative Systems Change” management approach. Uniquely suitable for tackling large-scale problems, this innovative model recognizes that there is no one big answer to complex problems, but rather a plethora of smaller efforts working in harmony that propel the entire machine forward. To drive the necessary change and combat cycles of poverty, a wider-scale, long-term systems change approach is needed. At the center of this Collaborative Systems Change

Our approach relies on 3 complementary elements:

• Collaboration: for a lean organization such as CYFI – which does not possess the means of the UN, OECD or even large international NGOs – the way to affect global-scale change relies on highly effective collaboration between different types of organizations, in order to create the needed critical mass of efforts. • Expert Change Agent: at the center of this model, we activate the collaborative network and affect implementation by driving innovation, exchanging knowledge, rallying all relevant stakeholders to the wcause, and propelling joint actions. The combination of these elements is the key to our exponential growth with very modest resources in such a short period of time. Unlike advocacy organizations aimed to raise awareness, we go further and offer our network partners concrete tools and road maps to implement changes that will gradually alter the ecosystem of youth economic empowerment in every country in which we work.

Most of the qualities of a living system are aspects of a single fundamental network pattern: nature sustains life by creating and nurturing communities and lasting change requires a critical mass or density of interrelationships within a community. It is difficult, however, to direct a living system. You can only disturb it by introducing 9


ACTIVITIES IN 2018 BY STRATEGIC OBJECTIVE CYFI 3 MAIN STRATEGIC OBJECTIVES Child & Youth Finance International has three main strategic objectives which guide its decision-making activities, partnerships and investments:

â?ś Advocate Create awareness on the topic of Economic Citizenship and stimulate organizations to get involved in providing financial inclusion, education and/or entrepreneurship.

â?ˇNetwork Connector and Expert Hub Connect stakeholders and promote crossorganizational learning, through replication or innovative models and ensure that stakeholders are getting access to materials that will help them in developing and implementing policies and programs, and modifying existing work based on best practices and innovations

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❸ Network Advisor Provide to the network examples of how different approaches can be implemented, whilst sharing expertise and providing or facilitating technical assistance.

Operations and Resource Mobilization Though not considered a strategic objective, Operations and Resource Mobilization (fundraising) are critical to the functioning of the Secretariat, as they provide the needed backup to all activities within the organization. See Figure 2 for how monetary resourses are spent per strategic objective at CYFI.

Figure 2: Spend per objective Objectives

2018 Euro Amount

2018 % of Expenses

2017 Euro Amount

2017 % of Expenses

Advocate

129,888

19.3%

277,349

21.4%

Network Connector & Expert Hub

197,683

29.4%

421,556

32.5%

Network Advisor

120,446

17.9%

257,336

19.8%

Operations

211,906

31.5%

279,966

21.6%

Fundraising

13,450

2.0%

60,384

4.7%

Total

673,373

100.0%

1,296,591

100.0%

• 19,3% Advocate • 31,5% Operations • 17,9% Network Advisor • 2,0% Fundraising • 29,4% Network Connector & Expert Hub

Source: Child & Youth Finance International, 2017 11


Strategic Objective 1 ─ ADVOCATE Create awareness on the topic of Economic Citizenship and stimulate organizations to get involved in providing financial inclusion, education and/ or entrepreneurship.

GLOBAL MONEY WEEK 2018 Global Money Week (GMW) is an annual money awareness campaign built to inspire children and young people to learn about money matters, livelihoods and entrepreneurship. The goal of GMW is to promote the importance of financial inclusion, Economic Citizenship Education (ECE) and the social and economic empowerment of youth. Through many interactive activities such as workshops, visits to banks and stock exchanges, educational games, essay competitions, classroom debates and dramatic productions, young people are able to engage in financial issues in a fun and constructive manner. The Week’s ideas, events and lessons learned are intended to have a long-lasting impact. GMW 2018’s Theme was ‘Money Matters Matter!’ It is more important than ever for children and youth to be economically equipped and empowered to close inequality gaps and build a brighter future! Money Matters Matter because children and youth need to receive the knowledge and develop the needed skills to make smart financial decisions throughout life. The Governor of the Central Bank of Georgia, Mr. Koba Gvenetadze highlighted the absolute

importance of the topic when kicking off his country’s GMW efforts by saying “Inviting the youth to think about and engage in the discussions regarding money, and why money matters matter, is crucially important for their future financial well-being and economic independence.”

Global Participation

Global Money Week once again experienced strong growth in 2018. Over 7.4 million children and youth across 151 countries participated in one of the 199,000+ activities organized by the 13,400+ organizations (Figure 3 & 4).

Global Activities

During GMW2018, celebrated during 12-18 March, a variety of activities took place in

more than 151 countries and overseas territories. These were initiated by different organizations – government and financial institutions, NGOs, universities, schools and various private initiatives – with an aim to raise awareness about financial education and inclusion to children and youth worldwide. The activities included visits to national money museums, stock exchanges and banks or other financial institutions; workshops and lectures on financial education; open day events at local companies; national competitions on ‘Money Matters Matter’; youth-focused seminars or debates and so much more. In addition, GMW social media challenges (e.g. GMW Selfie Challenges, GMW Money Box Challenge, GMW Video Challenge) on Facebook, Instagram and Twitter took place, receiving hundreds of entries throughout the Week from all over the world. GMW Selfie Challenge The GMW Selfie Challenge was an integral part of this year’s GMW celebrations and connected youth all over the world through social media. People had the chance to post their creative selfies via the GMW channels (Twitter, Facebook and Instagram) using the hashtags #GMWChallenge #GMW2018 and #GlobalMoneyWeek. GMW Money Box Challenge The GMW Money Box Challenge gave children and youth an opportunity to create their very own money boxes and piggy banks with their friends at schools or homes. This activity is fostered youth’s creativity and raised the awareness of this year’s GMW topic ‘Money Maters Matter.’ Therefore, young people not only learned about money,

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but also created an initiative to start saving. We were happy to see such great engagement worldwide and creative minds behind every post. GMW Video Challenge GMW participants could create a vlog of their Week’s celebrations, host an interview with a representative from a local institution or capture money awareness games and activities. Furthermore, we received videos of children interviewing experts on financial issues. We were delighted to see so many interesting, creative and good videos from difference countries.

GMW Launch Event

Number of youth

Number of countries

The 7th edition of GMW was kick-started at De Koninklijke Schouwburg in The Hague, the Netherlands in the presence of Her Majesty Queen Máxima of the Netherlands. The event, co-organized with the Dutch Money Wise Platform (“Wijzer in geldzaken”), celebrated the start of Global Money Week 2018 and the Dutch national money week (“Week van het Geld”). It also featured an interactive session with children and youth, a roundtable discussion with key partners on the growth of the CYFI Movement and on supporting youth. Pupils from elementary school De Fontein in The Hague attended the official opening ceremony of Global Money Week in the presence of the Dutch Minister for Primary and Secondary Education and Media, Arie Slob. The event was opened by Joost Hoebink, host at the Dutch Debate Institute entrepreneurship. After the performance, Queen Máxima joined the GMW opening plenary, which was organized to promote the importance of financial awareness, entrepreneurship, and livelihoods skills for children and youth worldwide.

Figure 3: GMW country growth

Figure 4: GMW youth growth 13


GLOBAL INCLUSION AWARDS 2018 The Global Inclusion Awards recognize and honor those who achieve greatness in furthering the Economic Citizenship of children and youth at the national, regional and international level. The Awardees demonstrate innovation in financial, social and livelihoods education, financial inclusion, and entrepreneurial support for children and youth. The 7th annual Global Inclusion Awards Ceremony was organized by Child & Youth Finance International, Argentina’s G20 Presidency and GPFI on 3 July 2018, with the support of the G20-2020 Saudi Secretariat. It was held as part of the GPFI Forum: “Technological Trends in Digital Financial Inclusion” agenda on 3-4 July at the Ritz-Carlton in Riyadh, Saudi Arabia. Goals of The Global Inclusion Awards • Develop high public awareness and understanding of the importance of financial inclusion and financial capability for children and youth. • Encourage national authorities, NGOs and financial institutions to strive for excellence in Economic Citizenship Education programs and thereby promote the advancement of their services. General Criteria For Applicants The Global Inclusion Awards 2018 focused on individuals and organizations operating at both the national and global level, that have excelled in the promotion of Economic Citizenship for children and youth. All applications submitted for the Global Inclusion Awards 2018 were evaluated on the following criteria:

• Good standing: Nominees must be of outstanding character and reputation. • Accountability: Nominees must demonstrate good governance and transparent financial management. • Creativity: Nominees must demonstrate creative use of resources to deliver innovative and flexible programs. • Partnership: Nominees must demonstrate that the spirit of effective collaboration and partnership is integrated into their activities. • Sustainability: Nominees must demonstrate how their work continues to impact young people going forward. • Track record: Nominees’ initiatives must be embedded in the community. • Impact: Nominees must demonstrate how needs were addressed and demonstrate that desired outcomes and impact was achieved. • Outreach: Nominees must demonstrate current and future outreach of initiatives.

Award Categories

The Global Inclusion Awards 2018 include the following four award categories: 1) Economic Citizenship Award 2) CYFI Country Award 3) Global Money Week Award 4) Outstanding Youth Economic Citizenship Award AWARD CATEGORY 1 Economic Citizenship Award 2018 About The Economic Citizenship Award 2018 acknowledged the accomplishments of organizations which have enhanced financial education, financial inclusion and/ or entrepreneurship of children and youth. Please note, one global winner was chosen for this award. Award Specific Criteria Specific criteria for the Economic Citizenship Award 2018 were as follows: • Demonstrate the successful design and delivery of products, programs or services aimed at financial education, financial inclusion and/or entrepreneurship of children and youth. • Demonstrate innovative partnershipbuilding, ideally with organizations from different sectors. • Demonstrate that results are tracked and documented. • Demonstrate long-term commitment to the communities served. Eligibility • The Economic Citizenship Award was open to all organizations from all sectors.

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Regional Finalists: • Colombia | Bank of the Republic of Colombia • Paraguay | Central Bank of Paraguay Europe & Central Asia Regional Winner: • Georgia | National Bank of Georgia

Regional Finalists: • Russian Federation | Ministry of Finance of the Russian Federation Africa Regional Winner: • Madagascar | National Coordination of Inclusive Finance (CNFI) – Ministry of Finance

• The activity needed to have taken place during 2017.

Global Winner: • FINLIT Nepal, Nepal | “Community Based Financial Education” Global Finalists: • CARE International Kenya, Kenya | “Adolescent Empowerment Program” • Kenya Women Microfinance Bank (KWFT), Kenya | “Tausi Junior Account” • NMB Bank Plc, Tanzania | “Wajibu- a youth banking proposition program” • Plan International UK, United Kingdom | “Financial Education for Girls” • SEDCO Holding Group, Saudi Arabia | “Riyali” • US Agency for International Development (USAID), Ukraine | “USAID’s Financial Sector Transformation Project” AWARD CATEGORY 2 CYFI Country Award 2018

• Demonstrate exceptional accomplishments and innovation in delivering financial education and inclusion policies and programs for children and youth. • Demonstrate strong alliances building between policymakers and financial regulators. • Demonstrate substantial efforts in building alliances among local stakeholders. • Demonstrate an exceptional strategy to implement Child and Youth Finance initiatives. Eligibility The CYFI Country Award was awarded to a government/national authority leading financial education and inclusion efforts at national level. Americas & The Caribbean Regional Winner: • Chile | Central Bank of Chile

Regional Finalists: • Côte d’Ivoire | Ministry of Education • Uganda | Central Bank of Uganda • Zimbabwe | Reserve Bank of Zimbabwe Middle East & North Africa Regional Winner: • Palestine | Palestine Monetary Authority (PMA)

Regional Finalists: • Egypt | Egyptian Banking Institute (EBI) • Lebanon | The Higher Council for Childhood • Morocco | The Moroccan Foundation for Financial Education Asia & The Pacific Regional Winner: • Bhutan | Royal Monetary Authority of Bhutan

Regional Finalists: • Brunei Darussalam | Ministry of Education Brunei Darussalam • Indonesia | Bank of Indonesia

About The CYFI Country Award 2018 acknowledged the accomplishments of government authorities (e.g. central banks, ministries of education) in building alliances among key national stakeholders, initiating child and youth friendly financial regulation and expanding the reach of quality Economic Citizenship Education through formal and non-formal education channels. Countries were evaluated for their achievements in the year 2017. Five regional winners were chosen for this award. Award Specific Criteria Specific criteria of the CYFI Country Award 2018 were as follows: 15


AWARD CATEGORY 3 Global Money Week Award 2018 About The Global Money Week Award acknowledged the efforts and accomplishments of countries in Implementing GMW, held between 12 - 18 March 2018, at the national level. One global winner was chosen. Award Specific Criteria Specific criteria for the Global Money Week Award 2018 were as follows: • Demonstrate exceptional diversity, efficiency and innovation in GMW activities. • Reach a remarkable number of children and youth, directly and indirectly. • Demonstrate substantial efforts in engaging and collaborating with different local stakeholders, including financial service providers and civil society organizations. • Demonstrate GMW activities that are organized in a cost sensitive manner. Eligibility The Global Money Week Award is awarded to a governmental/national authority (or a group of governmental authorities) leading and coordinating the engagement of the country in the Global Money Week activities.

Global Winner: • The Netherlands | Money Wise Platform, Ministry of Finance, The Dutch Central Bank (DNB), Dutch Bankers Association, Dutch Association of Insurers

Global Finalists: Americas & The Caribbean • Colombia | Self-Regulator of the Colombian Stock Market (AMV), Asobancaria, Bank of the Republic of Colombia, Financial Superintendence of Colombia, Fasecolda, Plan International, Banca de las Oportunidades • Guatemala | Central Bank of Guatemala • Paraguay | Central Bank of Paraguay • Peru | Superintendency of Banking Insurance and Private Pensions Funds (SBS), Ministry of Education (MINEDU) Europe & Central Asia • Belarus | National Bank of the Republic of Belarus • Belgium | Financial Services and Markets Authority (FSMA) • Hungary | Ministry of Human Capacities, Ministry for National Economy, Money

Compass Foundation, Central Bank of Hungary, Hungarian Banking Association, Junior Achievement Hungary • Russian Federation | Ministry of Finance of the Russian Federation Africa • Democratic Republic of Congo (DRC) | Central Bank of Congo • Zambia | Bankers Association of Zambia, Bank of Zambia, Pensions & Insurance Authority, Securities & Exchange Commission, Lusaka Stock Exchange, Rural Finance Expansion Programme, Insurers Association of Zambia, Savings Bank for International Cooperation, Financial Sector Deepening Zambia • Zimbabwe | Reserve Bank of Zimbabwe Middle East & North Africa • Egypt | Egyptian Banking Institute (EBI) • Libya | Central Bank of Libya, Ministry of Education • Morocco | Moroccan Foundation for Financial Education • Palestine | Palestine Monetary Authority (PMA) Asia & The Pacific • Bangladesh | Bangladesh Bank (Central Bank), Bangladesh Skill Development Institute, Daffodil International University • Bhutan | Royal Monetary Authority of Bhutan • Brunei Darussalam | Ministry of Education, Autoriti Monetari Brunei Darussalam (AMBD)

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AWARD CATEGORY Outstanding Youth Economic Citizenship Award About The Outstanding Youth Economic Citizenship Award honored projects carried out by children and youth that raise awareness of the importance of financial education, financial inclusion and/or entrepreneurship for other young people, both in school or in their community. One global winner was chosen for this award. Award Specific Criteria Specific criteria for the Outstanding Youth Economic Citizenship Award were as follows: • Projects that are carried out by children and youth. • Projects that include a financial education, a financial inclusion and/or an entrepreneurship aspect. • Other children and youth are involved in the creation of the project. • The project shows lasting results. • The project continues to engage the beneficiaries. Eligibility • The Outstanding Youth Economic Citizenship Award 2018 was open to child and youth applicants between 8 - 18 years of age. • The project needed to have taken place during 2017.

Global Winner: • Edgard Edmund, Tanzania |“Green Venture Recycles” Global Finalists: • Georgia Billings, Australia |“Winged Warriors” • Ilinca Avram and Georgiana Mois, Romania | “Chess the Community” • Jose Adolfo Quisocala Condor, Peru | “Education in Financial Inclusion for Children and Young People with Social and Environmental Responsibility” • Trinity Donohugh, United Kingdom | “GirlsforCS” • Yousef Mahmoud Gilany, Egypt | “Tutorials for studying in U.S. and Canada”

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DIAGNOSTIC TOOL During 2016, CYFI developed a standardized method of tracking a given country’s progress toward systems change in areas of youth economic citizenship, which allows CYFI to efficiently monitor its unilateral and collaborative actions in relation to that country. The tool is comprised of ten stages, each of which contains no more than five country activities. Countries that provide Economic Citizenship for children and youth will remain at Stage Ten, a steady state, and countries that have not undertaken activities for financial inclusion and education for children and youth will begin at Stage One. The diagnostic tool is driven by the Child and Youth Finance Movement’s goal of collaborative systems change. Based on the experiences of CYFI team members, network consultations, and advice from strategy consultants McKinsey & Company and Deloitte, we have been able to outline the ten steps a country should take that would lead to the desired systems change. These steps are based on the assumption that the desired system in each country has the following characteristics: • The system encourages the provision of ECE and financial inclusion for children as a priority. • The system’s processes and infrastructures are designed in a way that enables all players within the system to

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provide ECE and financial inclusion in the most efficient and harmonized manner. • All players within the system, especially those who are not actively involved, are taking steps toward providing ECE and financial inclusion. • Collaborative relationships between players of the system are formed so that efforts are harmonized. • The ability for the system to grow organically, self-govern, and self-regulate is inherent in the system (e.g. different banks from across the world can share best practices and be inspired by one another, thus making innovation and learning part of the system).

While CYFI has decided to leave the space of financial education and inclusion, it has decided that the value of the diagnostic tool in passively monitoring the progress of the movement in the coming two years cannot be undervalued. Therefore, it will continue to monitor the progress of countries according to the 10 step scale in 2018 and 2019. This will also serve as the basis for nominees of the Global Inclusion Awards. During 2018, the Secretariat collected information on 150 countries and compared it to previous years, the results of which are shared on a private basis with country representatives.


Strategic Objective 2 ─ NETWORK CONNECTOR AND EXPERT HUB The purpose of the Network Connector & Expert Hub objective is to connect stakeholders and promote crossorganizational learning, through replication or innovative models and ensure that stakeholders are getting access to materials that will help them in developing and implementing policies and programs and modifying existing work based on best practices and innovations.

BEST PRACTICES SHARING AND DOCUMENTATION Collaborative Systems Change Case Study

This document, a follow-up to the case study created by the Bertha Centre at the University of Cape Town in 2015, lays out the concept of Collaborative Systems Changewhat it takes to mobilize diverse, disparate actors to imagine and create long-term, sustainable positive change. The aim of sharing this experience is to encourage and stimulate the adoption of collaborative systems change methods in social change efforts across sectors and geographies. Over the last few years, the conversation around systems change has grown significantly. Non-profits, impact-focused for-profits, impact investors, grantmakers and governments have begun to use the term in relation to their work and

aspirations. Organizations which promote the work of social innovators and entrepreneurs—such as Ashoka and the Schwab Foundation for Social Entrepreneurship—have furthered the conversation, by developing learning materials and case studies that highlight systems change. Indeed, much of the content contained herein has been inspired by the work of these and other organizations. This document is also written to provide a contribution specifically around collaboration to the more general

conversation about systems change. As the concept of systems change increases in popularity, we believe that it is critically important to be clear about the collaborative side of systems change. We believe that examples of collaborative approaches to systems change are not only important, but also underrepresented. Above all, we would like to avoid the proliferation of systems change approaches that use the same top-down, hierarchical approaches that have held back social change efforts in the past.

Brokering Collaborative Systrems Change This report is developed for social change practitioners who are seeking to understand collaborative systems change, and considering it as an approach for their work. It is also written for funders who are considering funding systems change approaches, and would like to understand the concept to guide their funding decisions.

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Financial Capability

Figure 5: Responses to financial capability questions before and after SchoolBank intervention of similar projects and programs in other countries, and for scaling within the countries that are currently involved in the Schoolbank initiative. A small sampling of the findings can be found below. Agency: A decrease in preference for others to make choices for them (from 38% to 27%) was seen in the endline versus the baseline. Gender attitudes: More learners show the belief that girls should learn the same things as boys (moving from 64% to 83%).

SchoolBank Uganda Evaluation Report

behavior. Specifically, the evaluation set out to measure changes in financial knowledge, knowledge of rights and responsibilities, savings behavior, attitudes towards money, attitudes towards entrepreneurship and enterprise, and self- confidence and economic empowerment among young people. Ultimately, the evaluation shared lessons learned that can be shared with project partners and stakeholders that could help improve the design and implementation

During 2018, an external evaluation was conducted on the SchoolBank program in Uganda, with the purpose of assessing the relevance, performance, management arrangements and success of the SchoolBank initiative. Indications were given of the potential impact of project activities on involved young people in terms of changes seen in knowledge, attitude and

Inclusive Society: While not a big difference, an interesting finding was that we saw a 6% decrease in those that felt that different people had different rights in a society. Savings behavior: In the baseline, the biggest percentage of learners (51%) saved at home and only 7% saved with formal financial institutions (banks and microfinance institutions). The endline results reveal that 24% of learners now save at a financial institution.

Average savings in shillings

,

,

“At first, I was not interested in joining the E-Club, but after some discussions with other members I started to see the benefits. I also experienced them myself when I needed to take my Hepatitis B shots. We had to spend the money at home for my mother’s medical bills when she got sick. But, then I remembered the benefits of the savings club, so I used the Club to set my goal and it helped me to pay for my final vaccination.�

Learner, E-Schoolbank Club member, Uganda

Figure 6: Savings rates compared for those saving at bank vs those saving elsewhere 20


Savings amount: As shown in the chart, the absolute amount of savings increased for those saving formally vs, informally. Financial capability: Increases were seen across the board for those that participated in the program in terms of their knowledge and attitudes about financial matters. Savings Behavior of teachers: In all schools interviewed, teachers indicated to having begun saving due to the program. It was also noted that the program had been engrained into the thinking of the teachers and they were keen to continue the project for the students as well as themselves.

put forward the SchoolBank concept and followed up on the product development workshops which were held in 2017. As such, we started relationships with three new financial institutions who expressed interest in undertaking SchoolBank programs and are currently in the process of conducting internal analyses and due diligence efforts to explore the viability of undertaking such programs.

GPFI In its role as Affiliate member of the G20’s Global Partnership for Financial Inclusion

(GPFI), CYFI played an active role within the group, particularly the SME financing subgroup. Here, CYFI advocates for efforts which further the financial inclusion of youth-led SMEs. As part of CYFI’s contribution to the working group, CYFI partnered with the SME Finance Forum at the IFC to undertake a global stocktaking of products and services which are offered by financial institutions that cater specifically to youth entrepreneurs. The report was completed and is pending endorsement from the GPFI, after which it will be made publicly available.

Savings behavior of parents: According to some hearsay within the program, administrators have indicated that after being sensitized, some parents have also taken the opportunity to open their own accounts and begin formally saving.

SYSTEMS CHANGE COUNTRY WORK Systems Change Country Work as an activity is geared towards assisting stakeholders at the national or international level in developing potential solutions that can advance the ecosystem for the implementation of Economic Citizenship.

Rwanda CYFI, acting as co-chair, took part in the World Economic Forum’s working group for financial inclusion in Kigali, Rwanda on the 17th April. The session was geared at developing a pilot project for youth financial inclusion that could be implemented with relevant partners under the auspices of WEF and the National Bank of Rwanda. The working group chose to implement the SchoolBank model and worked over the course of 2018 in developing a potential model for implementation. In addition, the group discussed a product for young people that both considers the specific circumstances in which financial institutions operate in Rwanda and the unique challenges and opportunities that are present in the country.

Egypt In April 2018, CYFI conducted meetings with the Central Bank of Egypt and a number of Egyptian banks to advocate for further efforts within the Egyptian banking sector, which aim to increase financial inclusion for children and youth. Through a number of one-on-one meetings with the banks, CYFI 21


Africa SME Finance Forum In May 2018, CYFI’s Co-Director, Lubna Shaban, participated at the Africa SME Finance Forum in Nairobi, Kenya by speaking on the panel discussion, ‘Disrupting Systems: Financing Africa’s Youth Entrepreneurs’. The discussion sought solutions to Africa’s $331 billion gap in funding for small and medium enterprises (SMEs). Lubna and other panelists highlighted the need for the financial sector, with the support of policymakers, to serve youth entrepreneurs through the provision of tailor-made financial products and services that can help them grow their businesses. Lubna also highlighted the need for different ecosystem actors to collaborate and coordinate their efforts in serving this important segment. The discussion was chaired and coordinated by The Mastercard Foundation. The SME Finance Forum, managed by the IFC, works to expand access to finance for SMEs. The Forum brings together financial institutions, technology companies, and development finance institutions, driving the growth of SMEs globally.

MEETINGS South Eastern Europe Working Group: In October 2018, CYFI had the pleasure of co-hosting the fourth meeting of the South Eastern Europe Working Group at the training premises of the Central Bank of Romania in Sinai, Romania. The Regional Working Group for Youth Financial Education and Financial Inclusion serves as the place for sharing best practices, exchanging experiences and identifying technical assistance opportunities to support action plans development and implementation by the CYFI Secretariat and its network. As of 2018, more than 25 governmental institutions from 11 countries of the region (central banks, financial regulators, ministries of finance and education) are members of the Working Group. At the meeting country representatives shared their progress in the past year and laid down a framework for the institutionalization of the working group at the national level in the participants’ respective countries. The group felt that as CYFI was preparing to hand over the chairmanship of the group to the group members themselves, it becomes even more important that the group is recognized and supported by the national authorities.

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YE! 2018 was a very busy year for the Ye! Community. Internally there was a lot of focus on revising a strategy for the initiative, whilst still continuing working with the community as Ye! has been doing over the past years. Part of the strategy development concerned calling the youth survey respondents and asking them to rank a series of activities which Ye! has, or plans to engage in, and the perceived value of these activities to the young entrepreneur. These activities were categories by the 5C’s of collaborative system’s change methodology; connect, convene, coordinate, celebrate, and calibrate. The survey sought to understand how these young entrepreneurs’ enterprises have progressed with regards to team size, revenue and profits and to see if there is any correlation between the growth of these enterprises and their engagements with Ye!. The survey also addressed what issues the respondents continue to struggle with, in order to better understand the where Ye!’s offering can be strongest. The survey was answered by 140 young entrepreneurs from around the world, but with heavy representation from sub-Saharan Africa. Ye! also consulted long-time partners and governments about its strategy for 2019 and beyond. Findings from the two consultations were presented to the CYFI Supervisory Board in December. As part of the strategy development process, Ye! began conducting in-depth desk research on the already existing

policies and programs for young entrepreneurs in the 150 countries on the Ye! target list (150 countries are the countries we have worked with on FE/FI in the past). This research will provide a baseline on where each country stands in relation to the 10-step diagnostic. Ye! can then measure the impact of our work with government institutions in those countries from 2019 onwards. In 2018, we undertook desk research on 60 countries from the target list. The next steps are to complete desk research for the remaining 90 countries and to verify the information collected through calls with the leading institutions in the countries.

Events 2018 Several Ye! Commmunity events took place in 2018. Ye! Awards and Dinner Gala Egypt CYFI through its Ye! Community initiative and in collaboration with SANAD Fund for MSME’s Technical Assistance Facility

(TAF), and the Nile University’s Nilepreneur program (sponsored by the Central Bank of Egypt), organized the Ye! Awards and Dinner Gala, Egypt on 15 April 2018, to award Egypt’s exceptional young entrepreneurs. The event was held at the Marriot Cairo, Zamalek. The Awards were attended by more than 150 guests including financial institutions, government ministries, the Egyptian Central Bank, capacity builders, and other key stakeholders, as well as the nine young entrepreneurs from around the country who were selected as finalist. Three were awarded for their ventures, and two special recognitions were given. The event paved the path to bring varous stakeholders together and further discuss on what needs to be accomplished in Egypt to create a stronger startup ecosystem for youth entrepreneurs, specifically what type of financial products need to be made accessible to youth entrepreneurs. 2nd Annual Ye! Entrepreneurship Summit Uganda The 2nd Annual Ye! Summit Uganda was organized by the Ye! Chapter in Uganda, CYFI, and the Players of the People’s Postcode Lottery, with support from a variety of local partners, to build on the success of the previous year’s summit (organized in partnership with Mastercard Foundation). The 2018 Summit featured panel discussions, training sessions, and a pitch competition with nine young entrepreneurs vying for the Ye! Uganda Entrepreneur of the Year Award. A key outcome of the second Ye! Uganda Summit was a two-page written declaration by the youth addressing the government and other stakeholders, outlining their needs and requests for the steps that need to be taken by public and private institutions jointly, to foster a stronger ecosystem for youth entrepreneurs in Uganda.

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Ye! Ambassadors Meeting in Saudi Arabia During the CYFI annual Global Inclusion Awards, held as an official event of the G20 Argentinian Presidency’s GPFI Forum, Ye! hosted a Ye! Ambassadors’ meeting. The meeting brought together the young entrepreneurs who led the creation process of the Ye! Chapters, to discuss how the Chapter organization and strategy can improve, how to get more youth to join and remain involved in the movement and how to create more chapters.

Online Community In 2018, 1,352 new young entrepreneurs joined the Ye! Community. The makeup of these youth entrepreneurs is representative of where the greatest number of Ye! activities have been held – by and large Africa and Asia, although we did see an increase in young entrepreneurs from North America and Latin America. In 2018, Ye! renewed partnerships with a variety of organizations to increase the number of coaches on the Ye! platform. Over the course of the year, 40 coaches applied to join the coaching community, of which 20 were approved. These coaches came from a variety of countries including, Ghana, Uganda, Rwanda, and the USA, just to name a few. See figure 7 and 8 for more details. Coaching Relationship Created In 2018, the Secretariat actively facilitated the creation of 14 coaching pairs. The pairs created were either to follow up to various Ye! Award winners or were requested via direct email. Most of these pairs were between youth entrepreneurs working in sub-Saharan Africa and coaches from Europe.

Ye! Chapters Over the course of the year 2018, the Ye! Community welcomed 10 new Ye! Ambassadors into the community to start new chapters or to take over for previous Ambassadors who had completed their terms. Below we give an overview about the new Ambassadors, their activities, and the size of their chapter. KENYA Ifrah Arab Mohammed & Leroy Mwasaru Taking over for a previous Ye! Ambassador, Ifrah Arab Mohammed and her co-Ambassador, Leroy Mwasaru are growing the Ye! movement in Kenya through the creation of a youth entrepreneur newsletter going out to young people around the country to share all the latest news, opportunities, and success stories. Both

Ifrah and Leroy are award-winning youth entrepreneurs, Ifrah having won the Ye! Kenya Pitching Competition in 2015 organized in collaboration with UNCTAD, while Leroy is a Forbes 30 under 30 entrepreneur. Both are determined to make their communities stronger by dedicating their time to promoting the needs of youth and supporting Ye! globally in its advocacy efforts. The Ye! Chapter in Kenya is comprised of more than 500 youth entrepreneurs. They have thus far hosted 3 events. TURKEY Yucel Faruk Yucel Faruk is the founder of Perkeet, a scheduling platform for fitness centers and gyms. Yucel is undertaking the creation of an entrepreneurship newsletter and blog which shares the most recent updates about the Turkish ecosystem, as well as trends in entrepreneurship globally. He is also organizing a series of fireside chats with young entrepreneurs from the Ye! Chapter and professionals in a variety of sectors. The Turkey Chapter is comprised of 50 members and has hosted 2 events. EGYPT Fady Samuel & Abdallah Hanbak Fady Samuel is the founder of MENA startup studio, a social enterprise working to connect the vast number of tech startups in Egypt and beyond to one another, to relevant events, and to the resources they need to succeed. Abdallah Hanbak is the founder of Freeziana, an e-commerce platform designed to connect local artisan’s to potential buyers in Egypt’s urban centers and around the world. Abdallah joined the Ye! Community’s training with the Nile

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Number of coaches

Number of platform users Figure 7: Ye! Online Community Platform Users

University in November 2017. He was awarded with the Ye! Community Rising Star Award during the Ye! Egypt Awards & Dinner Gala in April 2018. After this point, he began to reach out to partners and build his network to grow the Ye! name. In November, he invited Fady Samuel to co-lead the chapter to reach an even greater of youth and to expand the reach of the startup studio’s impact. The ye! Chapter in Egypt has held 2 events and is comprised of 2,820 members. INDIA Muhsin Ayamon Muhsin Ayamon is the founder of Zemrose Online Ltd., the developer of two separate apps for equipment suppliers and customers. For suppliers, the Zemoser app helps to manage stock by completing supplier details, update equipment inventory, and allows customers to easily search for equipment and choose best price location, filter equipment specification. As the Ye! Ambassador for India, Muhsin is traveling to universities, hubs, and other networks to share the Ye! initiative and build partnerships. He is also organizing a variety of networking events and meetups, so entrepreneurs can connect and learn. So far, he has organized 2 events. The Ye! Chapter in India is comprised of 100 young entrepreneurs.

Figure 8: Ye! Online Community Coaches

Christian is also the country director for the Global Entrepreneurship Network. In 2018, he collaborated to link up Ye! with GEW to lead a training for a select group of young entrepreneurs. As one of the newest chapters, Christian has big things planned for Chad in 2019. GHANA Wilson Amooro Wilson Amooro is the Ye! Ambassador for Ghana and the founder of two social ventures – Tree Africa and Trash4Books Africa. Both ventures work to ensure youth are educated about environmental conservation, music, and environmental maintenance. Wilson is also a registered nurse by profession and a published author, having written more than 3 books. Located in the Upper North East region of the country, in an area called Bolgatanga, Wilson has organized a series of workshops,

networking events, and information sessions in collaboration with his team of young entrepreneurs. He has grown the local Chapter in Ghana to more than 100 young people across Kumasi, Accra, and Bolgatanga. PAKISTAN Ozaal Zesha Ozaal Zesha is the founder of two enterprises, CliqueTechnologies and ClassNotes – both using technology to advance the world we live in. CliqueTechnologies uses Internet of Things (IoT) to solve everyday problems, whilst ClassNotes is a social venture operating an edu-tech platform to bring education to every child in Pakistan, no matter their socio-economic status. Since starting as Ye! Ambassador for Pakistan, Ozaal and his team of young entrepreneurs have organized a series of events called “struggle nights,”

CHAD Christian Routouang Mohamed Ndonga Chrisitian is the founder of WenDr, a business connecting patients and doctors on a virtual (site internet/mobile/service phone application) platform. Through the services of WenDr, a patient can, through geolocation, find a doctor in their local region, see his/her availability and review. 25


which aim to tackle a variety of business issues, bringing local experts and mentors to discuss their struggles, failures, and successes to inspire the community and build their confidence as entrepreneurs. He has collaborated with a variety of local partners to offer the struggle night series, and has organized a series of events focused on supporting the next generation of kids to learn about finance and business. At present, Ozaal has organized two week-long workshops and 4 struggle nights, as well as co-hosting a pitch competition with partners. The Ye! Chapter in Pakistan is comprised of more than 300 young entrepreneurs. RWANDA Christian Kitumaini Christian Kitumaini is the founder of G5 Business Makers Program, a business event organizer and support program offering high-level paid entrepreneurship events and

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a bespoke business support programs to build top-notch businesses. As Ye! Ambassador, Christian has arranged two events, a meetup with core chapter members to assess the niche the Ye! Chapter can fill, and a training and workshop in collaboration with his enterprise and other local organizations. The workshop was attended by 30 young entrepreneurs and was followed up by meetings and market days where entrepreneurs can sell their products and build awareness of their brand. The Rwanda Chapter includes more than 75 youth entrepreneurs. GEORGIA Zurab Pertaia Zurab is the founder of Augep, an application based on Augmented reality features, which helps to make reasonable decision in case one has not previously tasted some dishes at the restaurant. As the Ye! Ambassador, he has been spreading the word through his

work as an assistance professor at Business Technology University in Tiblisi. He works with various student entrepreneur groups to bring them into his Chapter and introduce them to the Ye! platform so they can expand their skills and connect with other youth around the world. Zurab is also hosting meetings with other youth entrepreneurs to define what role the government should play to spur entrepreneurial activity in Georgia. So far, he has hosted 2 meetings and has grown the Chapter to more than 30 youth entrepreneurs. CAMEROON Desmund Egbe Desmund Egbe is the founder of Camer Human Capital – a management consultancy firm aimed at enhancing Africa’s human capital. Desmund represented Cameroon at the African Youth Entrepreneurship Workshop, a side event of the 6th Tokyo International Conference on African Development (TICAD VI) in Nairobi, Kenya. He was selected to attend the World Bank Group Youth Summit 2016 at the World Bank Headquarters in Washington D.C. Now he is working as the Ye! Ambassador, where he has created a thriving community constantly engaging on WhatsApp in a group chat of more than 100 young entrepreneurs discussing the latest trends, networking, and sharing opportunities. Furthermore, he has organized five successful events with various partners, as well as consultations with the youth entrepreneurs in the Chapter to discern their key hurdles and identify how Ye! can work with the government to create policies and programs which meet the needs of the youth.


India. His live coaching session focused on how startups can be successful in this era of increasingly stiff competition. His video has 230 views and reached more than 1,300 Facebook users. • Jaikishan Prithiani – Jaikishan is the founder of Startupbase.in. He is a certified scrum product owner (CSPO), business consultant, an onset blogger and internet entrepreneur who builds great products. His live coaching session discussed the importance of idea validation and how to do it. His video has 600 views across Facebook and YouTube.

Ask a Coach Hour Sessions

In July 2018, Ye! began an initiative to increase engagement between our community of expert coaches and Ye! entrepreneurs. The Ask a Coach Hour sessions are streamed live to Facebook where young entrepreneurs can learn more about the coach’s area of expertise, pose questions based on the topic of the session, and get immediate answers and insights. There were 8 sessions throughout the course of the year on a variety of topics, including: idea validation, innovation, marketing strategies, b2b sales, team engagement, and budgeting and finance. The pilot session was held in February 2018 on the Ye! stream. Later versions were hosted via Facebook live to increase engagement and interaction. Coaches engaged in 2018 • Abishek Kothari – CitiBank; Abhishek is an Accountant, Banker and a Blogger on Finance, Technology, Economics, Business and Leadership. He began his career with PricewaterhouseCoopers as a public accountant. This first session was held on the Ye! Stream, but it was later deemed more engaging to move the sessions to video and Facebook.

session on Marketing, Digital marketing and fundraising. The video reach more than 1,460 Facebook users with 415 total views. • Chirag Shah – Chartered Accountant with 15+ years of experience as an entrepreneur, senior management and business coach/consultant. Chirag specializes in consulting, online services including e-commerce, mobile apps, application development, education and e-Learning. His live coaching session focused on the importance of a mentor and the danger of falling in love with your business idea. The video reached more than 2,600 Facebook users and has more than 550 views on Facebook and YouTube. • Devesh Chawla – Devesh Chawla is an entrepreneur based out of Mumbai, India. He has studied engineering and holds an MBA from Mumbai Education Trust Institute of Management in Finance and Insurance. He is business strategist, a mentor, an investor, an efficient leader, a consultant and an all-around business man! He is deeply committed to adding value to the start-up ecosystem and to revolutionizing the entrepreneurship in

• Carmen Miron – Carmen Miron is the Managing Director at The People Engagement Company. She has more than 20 years of experience covering sales, marketing, category management and learning and development areas, working for well-known multinational companies from FMCG environment. Her live coaching session discussed team engagement and garnered 170 views and reached 577 Facebook users. • Steve van Zutphen – Steve van Zutphen is a chemist and research scientist as well as a successful entrepreneur. He is the Founder and Global Business Development Manager Mining at Italmatch Chemicals Spa. He is an expert in b2b sales and led a session based on this topic. His video has over 300 views and reached 1,446 Facebook users. • Michelle Beynon – Michelle Beynon is the Vice President ICG oPMO Citi Bank. She is an experienced professional, skilled in management, delivery and implementation of IT and business solutions. She specializes in budgeting, financial management, and project management and led her live coaching session on these topics. Her session has more 250 views and reached 880 Facebook users.

• Vineet Arya – CEO Outsourced CMO; Vineet has over 23+ years of experience in communications, brand building and 360 degrees marketing. He has worked with some of the most-sought-after Multinational Corporations (MNCs), including AMD, SanDisk, and Tata Power Solar in senior marketing positions. After almost a 20-year stint in the corporate world, helping MNCs grow, Vineet decided to quit his full-time job to help growing companies to manage their marketing functions. Vineet led his live coaching 27


The Ye! Top 100

The Ye! Top 100 will be an annual publication of the top 100 Young Entrepreneurs of the World, compiled to bring attention to the demographic and their impact on job creation and therefore also, on youth unemployment. The Secretariat, in partnership with Mastercard Corps aims to create a pilot list by the end of 2019. In order to create the list, Ye!, in partnership with various experts from a number of sectors, came together in a working group in November 2018 to discuss the following: the purpose of creating such a list, the target group, the application and assessment process and criteria, the role of the Jury, the presentation of the final list and the timeline for publication. All proposals were put forward to eight experts to discuss and deliberate. Following this initial meeting, a second meeting was arranged for 2019 to present a second iteration of the proposal with the working groups suggestions included.

Diagnostic and 10 step process

The Ye! Secretariat is developing a 10-step diagnostic tool that will guide countries through the necessary steps to develop a compatible entrepreneurial ecosystem for young entrepreneurs. The tool is designed in cooperation with McKinsey & Co. In pursuit of developing a compatible entrepreneurial ecosystem for youth across the world, Ye! developed a country guide that will assist national authorities in developing and implementing a national strategy on youth entrepreneurship. This

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Guide provides a template for a National Implementation Plan (NIP), which is a step-by-step planning tool for the implementation of policies and regulation that would allow youth-led enterprises to thrive. This roadmap provides the necessary steps and processes for governments and other stakeholders to develop and sustain an entrepreneurial ecosystem for young entrepreneurs. The purpose is to enable the exploration of mismatches and current constraints that impede the development of young entrepreneurs and to support in the facilitation of decisions on policies and measures that are essential to improve the entrepreneurial environment for youth.

The roadmap presents five central objectives around youth entrepreneurship (compatible policies, access to finance, access to networks, entrepreneurship education, enablers (monitoring and evaluation frameworks)). Each objective consists of several components. The objectives and components guide government institutions through the different options for policy objectives. For each policy objective, there is a 10-step approach to follow to fully implement and maintain the chosen policy objectives and components for building an ecosystem which is supportive of youth entrepreneurship.


Strategic Objective 3 ─ NETWORK ADVISOR The purpose of this objective is to provide the network with examples of how different approaches can be implemented, whilst sharing expertise and providing or facilitating technical assistance.

SCHOOLBANK SchoolBank aims to increase financial inclusion of children and young people through the school system. The program uses innovative distribution channels (e.g. schools) and technology (e.g. mobile banking and online banking) with the goal of financially empowering children and youth in a cost efficient and sustainable way. Through an innovative multi-stakeholder approach, SchoolBank aims to create systems change by providing children and youth with a Child & Youth Friendly bank account that they can use to save money, while at the same time imparting the appropriate education to teach them why and how to save and what their economic rights are. We believe that by economically empowering children and youth, we will be able to break the cycle of poverty.

The SchoolBank model aims to deliver three basic services to children and youth: • A one-time banking initiation: providing an account to open, which may include collaterals such as passbooks, ATM cards, check books and/or magnetic cards;

• Continuous educational inputs: providing economic citizenship education and generating financial awareness; • On-going transaction support: providing withdrawal and deposit facility, enabling cash transfers between accounts, balance inquiry, etc.

Figure 9: SchoolBank model delivers three basic services tochildren and youth

Continuous educational inputs

One-time banking initiaton • Banking partners to provide child-friendly savings accounts • Provision of account collaterals such as passbooks, ATM cards, cheque books, magnetic cards

School Bank

Ongoing transaction support

• NGO partners and Ministry of Education to provide economic citizenship education through innovative delivery methods • Generating financial awareness in children and their communities

• Banking partners and schools to provide withdrawal and deposit facilities, transfer of cash between accounts, balance inquiry and interest accrual • Technology or telecom companies to provide enabling technology solutions to improve transaction support Source: Child & Youth Finance International 29


Each of these services are offered through schools, allowing the children and youth to save in a safe and trusted place. By providing these services, the goal is to enable children and youth to save money, receive allowances, and make payments. Additionally, if local circumstances allow, and if appropriate for the target group, the model can be supported by technologyenabled solutions, such as an online bank account, a mobile banking application or a mobile wallet. Over the course of the year, we were able to maintain the SchoolBank program in India, launch two new pilots there, one of which is for disabled youngsters, support the ongoing project in Uganda and conduct an external evaluation thereof, launch in Nigeria, scale-up in Egypt, and assist in the launch of the Schoolbank in Côte d’Ivoire and hopeful preparations for eventual launches in Benin and Togo. INDIA Our main partner in India, Kerala Gramin Bank has continued the project in 2018, reaching 60,000 young people across 600 schools through financial education and inclusion, though the project was interrupted during the terrible folding throughout the southern Indian state in July and August. Next to this ongoing project, we were able to launch another pilot with the Quilon Management Association, which is reaching 1,000 young people. This project is very interesting for CYFI as it shows that partners need not only be government, NGOs and traditional banks. Instead, this project is led by a management association using the same materials and methodology as the project with Kerala Gramin Bank. Particularly exciting for us has been the launch of the pilot for deaf youngsters with ESAF Bank, also in Kerala. Traditionally generally ignored in society, this is particularly felt in regards to financial literacy, as most are excluded from this area. This pilot (trainings to begin in the new year) will see the same materials translated to sign language, all of which will be filmed so the educational aspect can be passed on to other schools for hearing impaired youngsters. At the end of the educational aspect, ESAF Bank will open accounts for the 100 young people in the initial programme, with a hopeful scale-up coming later. UGANDA The SchoolBank in Uganda was in full swing during 2018 with our partners PEDN and Finance Trust Bank completing their outreach to more than 1,200 students. 30

Furthermore, during the year we commissioned an external evaluation to be completed looking at the effectiveness of the project in terms of imparting knowledge and changing savings attitudes and behaviors. This was addressed further in the Best Practices Sharing and Documentation section of the document. CÔTE D’IVOIRE In Côte d’Ivoire our partners, the Ministry of Education and Ecobank launched the SchoolBank project during 2018 with an outreach of roughly 500 over the course of the year. This project was launched within a resource constrained environment, thus the Ministry of Education partnered with Devlogy, a fintech, to create an app called Messenka, a chatbot accessible on Facebook Messenger, that assists the students in managing their money all whilst informing their parents of their transactions. During the 4th quarter an introduction and training was organized in Abidjan, bringing in representatives from the Ministry of Education of Togo and Benin, as it was recognized that potential Schoolbank projects in these countries would face similar challenges and thus it made sense to see if the Côte d’Ivoire model could be replicated in these places, especially taking advantage of the Messenka app as a means of lowering costs. EGYPT Having conducted a small pre-pilot in Egypt in 2017, the SchoolBank project, a collaboration between, CYFI, the Egyptian Banking Institute and Bank MISR kicked off its scale up towards the end of the year, conducting trainings across the 27 governates. The initial estimate is that this will be reaching 10,000 young people across the country in this first stage of scale up during 2019.

NIGERIA SchoolBank Nigeria, a collaboration with Lynx Nigeria, a NGO, and United Bank for Africa was launched in December and will be reaching 5,800 young people across 116 schools during 2019.

WORKSHOPS AND TRAININGS The purpose of this activity is to lead or provide organizational support to workshops and trainings that can assist stakeholders in designing/implementing ECE, FI, and/or entrepreneurship policies or programs. KENYA At the end of April 2018, CYFI co-hosted the Breakfast Meeting on Independent Child Friendly Accounts with CARE Kenya in Nairobi. By showing the value of financially aware youth, CYFI and CARE aimed to encourage actors and stakeholders to invest in young people. During the event, CYFI, PostBank and CARE Kenya encouraged stakeholders to invest in banking products and financial education for adolescents, sharing experiences with SchoolBank and SMATA. Participants also had the opportunity to hear from banking service users and providers who shared their experiences and challenges with savings products. With further collaborations with CARE Kenya already underway, the meeting was successful and delivered important insights on how we can drive policy recommendations and work towards a better landscape for youth banking.


OPERATIONS AND RESOURCE MOBILIZATION Operations and Resource Mobilization are critical sections of Child and Youth Finance International. Operational support for the Movement and the Secretariat will facilitate the conducting of the Secretariat’s activities, ensure its capacity and sustainability. The Operations department is also involved in the governance and internal processes of the organization. It also focuses on the logistical and operational aspects of the activities to support the Movements strategic goals, particularly regarding the smooth running of workshops, meetings and regional/international summits.

SUSTAINABILITY As the activities of the Secretariat grow and the Movement involves an increasing number of stakeholders, the Secretariat must seek extra support internally through increased recruitment, taking on an additional number of interns and seeking out volunteer assistance. This process is managed by the operations department. The department oversees not only the HR requirements, but also the operational needs relating to finances, IT, administration and other tasks.

COMMUNICATION WITH THIRD PARTIES AND DONORS We produce this annual report outlining the activities of the previous year and including the audited financial statements. In addition, we prepare an annual State of the Movement document entitled “Children, Youth and Finance”, which outlines the progress of the Movement. Additional reports to donors are made as per specific requirements.

FINANCIAL RESERVES AND INVESTMENTS In accordance with the Wijffels Code, CYFI’s policy aims to build, at a minimum, a six-month operational reserve. CYFI’s funds are deposited in a current account and savings accounts and the organization does not invest in stocks or any other type of potentially risky financial endeavor.

BUDGET

The operational budget for 2018 can be found in the attached financial statements.

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GOVERNANCE AND OVERSIGHT Figure 10: CYFI’s two-tier governance structure composed of a Supervisory Board and an operational management, ensures strong governance and effective, transparent oversight of the organization.

Partners Assembly

Governance Committee

Supervisory Board

Audit Committee Executive

Management Board Planning Team Staff Source: Child & Youth Finance International

SUPERVISORY BOARD Comprised of representatives from banking networks, NGOs, development foundations, multilaterals, academic institutions and corporations, the Supervisory Board is responsible primarily for strategy and selection and oversight of the Management Board members who are responsible for the daily operations of Child & Youth Finance International. Members of the Supervisory Board are appointed for a two-year term, do not receive a salary or any other compensation for their work, and typically meet twice a year in-person and twice telephonically. The following list includes all members of the Supervisory Board as of 31 December, 2018. Members from the NGO sector • Jaap Doek ─ A global authority in the field of Child Rights and former chairperson of the UN Committee on the Rights of the Child • Jeroo Billimoria (Deputy Chair) ─ Pioneering Social Entrepreneur and Founder of Child & Youth Finance International, Aflatoun and ChildHelpline Members from the Financial Services Sector • Chris de Noose ─ Managing Director of the World Savings Bank Institute (WSBI) • Wissam Fattouh ─ Secretary General of the Union of Arab Banks 32

Members from Government • Petra Hielkema ─ Division Director of the Central Bank of the Netherlands • Theodor Kockelkoren ─ Inspector General of Mines at State Supervision of Mines Members from Corporations • Wouter Aghina ─ Partner at McKinsey & Company in The Netherlands • Willem Blom ─ Managing Partner, Tax & Legal at Deloitte NL • Michiel Wesseling (Chair) ─ Partner at Houthoff Buruma Ex-officio Members from Multinationals • Flore Anne Messy ─ Principal in Financial Affairs Division at the OECD • Beth Porter ─ Policy Advisor at UNCDF Ex-officio Members from Government • Abdel Aziz Nossier ─ Executive Director of the Egyptian Banking Institute • Ernesto Velazquez ─ Board of Directors of the Central Bank of Paraguay • Denny Kalyalya ─ Governor of the Central Bank of Zambia • Shitangshu Kumar Sur Chowdhury ─ Deputy Governor of the Central Bank of Bangladesh

decisions, commitments and plans including expenditures and leases; • Review the budget and recommend it to the Supervisory Board in consultation with the Managing Director; • Evaluate progress toward program and financial goals; • Ensure the continuity of the organization through development and recruitment of staff members; • In conjunction with the Managing Director, provide leadership on organizational transition, structure and planning. The committee is composed of the following members: • Jeroo Billimoria • Theodor Kockelkoren • Petra Hielkema • Michiel Wesseling • Willem Blom

Audit Committee

Executive Committee

We developed a strong set of financial controls and standards for bookkeeping, expenses, procurement and travel, which are audited annually internally and externally (with the support of our pro-bono partner, EY). The Audit Committee oversees these activities, specifically:

• Support and evaluate the Managing Director; • Review and approve major organizational

• Overseeing CYFI’s financial statements and recommending approval of the annual report and accounts; • Overseeing CYFI’s compliance with regulatory requirements and the

Assists with the day-to-day tasks of the CYFI Secretariat, including:


independent auditor’s qualifications and independence; • Overseeing the performance of CYFI’s internal audit function and independent auditors and recommending external auditors to the Supervisory Board; • Overseeing the risk assessment and management for CYFI, including the process for monitoring statutory compliance. The Committee is composed of the following: • Willem Blom

Nominations Committee

Broadly, the Nominations Committee is looking at board succession planning, as well as assisting with the development of key organizational documents. Specifically, the Nominations Committee has been tasked with the following: • Make recommendations regarding the Supervisory Board’s composition, operations and performance; • Develop profiles and recommendations for new Supervisory Board members; • Develop and execute an effectiveness assessment process for members of the Supervisory Board for use by the Chair and the overall functioning of the Supervisory Board and its committees with the exception of the Nominations Committee. The Nominations Committee shall be assessed by the Executive Committee; • Serve in an advisory capacity to the Supervisory Board on matters of organization, management succession plans, major changes in the organizational structure of the Foundation, and the conduct of board activities.

interns, who reflect the organization’s diversity and international character, with members hailing from 4 continents. The team encompasses expertise in strategy, economic citizenship, research, communications as well as other areas, and operates day to day activities, including maintaining our network, reaching out to new stakeholders and developing programs and materials. During 2018, CYFI employed on average 9 staff. The following list includes all employees in the organization as of 31 December, 2018. • Abdel el Mandili, Global Partnerships Coordinator • Claire Sterngold, Ye! Community Manager • Emma Broholm, Programme Coordinator • Liina Liblik, Head of Communications • Mano Delea, Office Manager • Tidjane George, Global Partnerships Coordinator • Violeta Licheva, Bookkeeper

Interns

During 2018, Child and Youth Finance International benefitted greatly from the assistance and hard work of interns. Thanks to these mostly students, CYFI was able to accomplish much more than the staff would have normally been able to do. The students were typically required by their universities to do an internship for the completion of their studies, and clear goals and plans were created with them to help aid in their personal and professional growth.

Internships ranged in time from 1 month to 6 months. The Secretariat would like to wish a warm thank you to everyone that interned at CYFI during 2018. • Abdel Mandili, the Netherlands • Alexandra O’Brien, United States • Antonia Olivia, Italy • Dorottya Zalay, Hungary • Eliana Dreyfus, Switzerland • Elise Lindron, France • Emma Broholm, the Netherlands • Enrico Roubin, Italy • Fanny Belanger, France • Felix Gruter, South Africa • Giulia Ponzoni, Italy • Hamada Abdelrahman, Sudan • Hayat Zoheir, Egypt • Hoa Nguyen, Vietnam • llaria Romana, Italy • Jaroslav Gavriluyk, Russia • Katarzyna Nowosad, Poland • Lydia Harper, United Kingdom • Manaig Menthonnex, France • Marianna Troia, United States • Marion Sangouard, France • Megan Buxton, United Kingdom • Muneaki Sato, Japan • Olti Cela, Albania • Ricardo Rivbas Santolim, Brazil • Rossella Recupero, Italy • Sophie Yates, United Kingdom • Sophie Yoshikawa, Japan • Tyler Meli, United States • Valentina Rossetto, Italy

The committee is composed of the following: • Beth Porter

CYFI SECRETARIAT TEAM Management Team

As of 31 December 2018, the Management Team consisted of the following individuals: • Bram van Eijk and Lubna Shaban, Co-Directors.

Staff

Being an international movement coordinating and driving activities around the world, CYFI’s team is a mix of staff and 33


LOOKING AHEAD TO 2019

34

2019 promises to be a year of much excitement within the CYFI Secretariat. Holding true to its commitment to wind down its activities in the fields of Economic Citizenship Education and Financial Inclusion, CYFI will work on ensuring that its various initiatives in this sphere are transitioned properly.

SchoolBank will continue to be handed off to partners, with a learnings document being published during the year along with a case study from the experiences of the Georgia SchoolBank. All learning and training materials will be made open source so that anyone and everyone can benefit from our experiences in designing their own programmes!


Global Money Week, our signature campaign, will still be led by the Secretariat in 2019, but we will continue to explore what the best future is for the Campaign, holding true to its innovative and exciting spirit. The Global Inclusion Awards will be held with the CYFI Global Summit 2019, taking place in June in Johannesburg, South

Africa, in collaboration with the Banking Association of South Africa, FSCA, Finmark Trust and the Department of Basic Education of South Africa. At the end of 2017, the Supervisory Board approved the potential for an organizational strategic shift towards addressing youth unemployment through a systems change

approach focusing on entrepreneurship. During 2018, the organization developed potential strategies for this approach and in 2019, CYFI will be testing these approaches with stakeholders across the spectrum, determining if this approach is truly needed and if yes, whether there is a role for the Secretariat within that.

35


36


ANNEX A GLOSSARY OF TERMS 37


GLOSSARY Term

Definition

Banking Product

Any product offered by a Financial Service Provider

Boost Camp

Within the context of Ye!, the boost camp is an intensive training programme for young entrepreneurs whereby they will receive training in aspects of growing and maintaining their endeavor.

Child

CYFI adopts the UN definition of a Child: “An individual under the age of 18, or under the age of majority as prescribed by national law” (Office of the High Commissioner for Human Rights (1990), ‘The Convention on the Rights of the Child’)

Child & Youth Finance International (CYFI)

The legal organization responsible for coordinating the Child and Youth Finance Network and the Partners within the CYFI network

CYFI Secretariat (CYFI)

The organizing entity of Child and Youth Finance International (CYFI) which reports to the CYFI Supervisory Board and coordinates activities within the CYFI Network. The acronym CYFI can signify both the legal organization CYFI as well as the CYFI Secretariat

CYFI Supervisory Board

The supervisory Board of CYFI, responsible for CYFI’s strategic direction and supervisory management

Child and Youth Finance Activities

All actions, projects and programs relating to the promotion and implementation of undertakings to further financial access and education for children and youth as described in the CYFI strategy

CYFI Annual Summit & Award Ceremony

The annual meeting of CYFI Partners and stakeholders. The purpose of this summit is to strengthen relations, disseminate best practices and share innovations, coordinate activities between partners and stakeholders within the CYFI Network

Child and Youth Finance Movement (the Movement)

An international, inclusive, multi-stakeholder movement comprising CYFI Partners and stakeholders supporting: the creation and strengthening of systems, structures and policies which provide children with choices; informs them of their rights; instills values in them; empowers them to make sound financial decisions, build their assets and invest in their own futures

Child and Youth Finance The theoretical base upon which the Child and Youth Finance Movement stands and which Movement Theory of Change outlines how the various interventions of the Child and Youth Finance Network lead to the Movement’s desired outcomes CYFI Network

The multi-stakeholder group of CYFI Partners, comprised by practitioners, policy makers, and researchers and their respective organizations and networks who contribute to, and further the efforts of, the Child and Youth Finance Movement

Child and Youth Friendly Banking

A system of financial services that promotes the creation and provision of financial products and services which are designed to promote safe financial access and financial capability for all children and youth under the age of majority

Child and Youth Friendly Banking Product Certificate

The certificate awarded to financial institutions for banking products offered to children and youth which meet the required Child and Youth Friendly Banking Product standards

Child and Youth Friendly Banking Product

Savings and current accounts which meet a set of minimum standards as defined by the CYFI Regulation and Inclusion Working Group. These standards ensure that banking products remain inclusive and appropriate, and are designed in the best interest of the child

Economic Citizenship

Economic and civic engagement to promote: reduction in poverty, sustainable livelihoods, sustainable economic and financial well-being and rights for self and others

Economic Citizenship Education

An education curriculum combining the three modules of financial education, social education, and livelihoods education for children and youth as defined in the CYFI Education Learning Framework

38


Term

Definition

CYFI Education Learning Framework (ELF)

The structured set of desired learning outcomes and competences in economic citizenship education as defined by the CYFI Education working Group

Diagnostic Tool

A standardized method of tracking a given country’s progress toward systems change in areas of youth economic citizenship which allows CYFI to efficiently monitor its unilateral and collaborative actions in relation to a given country.

Empowerment

Increasing an individual’s confidence and ability to take charge of their lives, claim their rights and build empathy with others

Entrepreneurship

The ability to use one’s technical and business skills to take advantage of market opportunities to deliver products and services that generate a sufficient financial return

Financial Access

A means of safely accumulating, controlling and acquiring assets

Financial Education

CYFI adopts the OECD definition of Financial Education: “The process by which individuals improve their understanding of financial products and concepts; and through information, instruction and/or objective advice develop the skills and confidence to become more aware of Financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being and protection.” OECD (2005). Recommendation on Principles and Good Practices for Financial Education and Awareness

Financial Capability

Combining the knowledge, skills, attitudes, and behaviors that increase financial literacy with access to financial products and services providing individuals with the opportunity to act in their best interest

Financial Inclusion

Access to financial products and services that are affordable, usable, secure and reliable

Financial Institution

A deposit-holding institution with a license from the relevant national financial regulatory authority and providing financial services for its clients or members

Financial Literacy

CYFI adopts the OECD definition of Financial Literacy: “Financial concepts, and the skills, motivation and confidence to apply such knowledge and understanding in order to make effective decisions across a range of financial contexts, to improve financial wellbeing of individuals and the society; and to enable participation in economic life,” OECD (2012). PISA 2012 Financial Literacy Framework

Financial Services

Services offered by FSPs complementary to, and comprising, banking Products

Financial Service Provider (FSP)

Organization providing financial products, including deposits. This includes Financial Institutions as well as non-regulated organizations offering financial services

Fintech

Fintech (financial technology) describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions. The term has expanded to include any technological innovation in the financial sector, including innovations in financial literacy and education, retail banking, investment and even crypto-currencies like bitcoin. Investopedia ‘What is Fintech”

Global Money Week (GMW)

GMW, a Child & Youth Finance International (CYFI) initiative, is an annual financial awareness campaign built to inspire children and young people to learn about money matters, livelihoods and entrepreneurship. 39


Term

Definition

National/Regional/Global Platforms

Activities and structures to catalyze national, regional, and global collaboration advancing the objectives of the Child and Youth Finance Movement

Livelihoods Education

Programs aimed at developing employability skills and entrepreneurial behavior

Livelihood Skills

CYFI adopts the UNICEF definition of Livelihood Skills: “Capabilities, resources and opportunities to pursue individual and household economic goals. Livelihood skills relate to income generation and may include technical / vocational skills, job seeking skills, business management skills, entrepreneurial skills and money management skills.” UNICEF (2011) Life skills Definition of Terms

Minimum standards for Child and Youth Friendly Banking Products

The standards a banking product must meet to be awarded a Child and Youth Friendly Banking Product Certificate. The standards were developed by the CYFI Regulation and Inclusion Working Group

Pitching Event

Within the context of Ye!, a pitching event is a session where young entrepreneurs present their business to investors, receive feedback and explore funding opportunities.

Product Development Workshop

Product Development workshops support stakeholders in understanding why child and youth- friendly products and services are important, exploring the business case for products aimed at young people, sharing experiences and expanding and improving participants’ youth product portfolio.

SchoolBank

SchoolBank aims to increase the economic empowerment of children and youth by providing them with access through appropriate banking products and economic citizenship education. Local banks offering Child &Youth Friendly banking products will be engaged with the local schools, under the supervision of the Ministry of Education and Central bank regulators, to provide such products through the school system. Not only will the children will receive financial education, but will also have the chance to put in practice what they learn, thanks to the access to savings accounts or other similar products

Social Education

Programs aimed at increasing knowledge of human rights, encouraging self-reflection and self-awareness and instilling respect for oneself and others

Social Entrepreneurship

The ability to recognize social, human rights, political or environmental needs and to use one’s technical and business skills to create effective solutions, that address these issues in a sustainable manner

Socio-Financial Capability

The ability to make informed financial decisions that benefit the individual and community

Teacher Training Workshops

To empower teachers on delivering effective financial education using active learning methods, particularly in relation to SchoolBank, Teacher Training workshops presents the concept of an integrated approach to financial education to local stakeholders

CYFI Working Groups

Groups of experts from across linked sectors contributing to the strategic focus of the global Child and Youth Finance Movement

Ye! Community

The Ye! Community is an online community for young entrepreneurs and provides young entrepreneurs around the world with a peer community, resources on how to start a business in their country, coaching and funding opportunities, with the goals of supporting youth entrepreneurship, promoting ethical entrepreneurial culture and stimulating job creation

Young People

CYFI adopts the UN definition of Young People: “Anyone between the ages of 10 and 24” United Nations. Definition of Youth

Youth

CYFI adopts the UN definition of Youth:“An individual between the ages of 15 and 24” United Nations. Definition of Youth

40


41


42


ANNEX B FINANCIAL STATEMENT AND INDEPENDENT AUDITORS REPORT 43


Stichting Child and Youth Finance International Amsterdam Financial statements for 2018

Stichting Child and Youth Finance International Rokin 117 1012 KP AMSTERDAM

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Contents Report Balance sheet Statement of revenue and expenditure for the period ended December 31, 2018 Commentary on actuals versus budget 2018 Cash flow statement Notes to financial statements Notes to the balance sheet Notes to the statement of revenue and expenditure Allocation of expenses to objectives Signatories to the financial statements Other information Auditors report Budget 2019 (unaudited)

3 4 7 8 9 12 16 18 20 21 22 25

Total number of pages in this report: 25

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3

Balance sheet December 31, 2018 (before proposed appropriation of the balance of income and expenses) Asset s

Fixed assets Tangible fixed assets (1)

2018

2017

EUR

EUR

3,328

9,541

Current assets Receivables and prepayments (2) Cash at banks and in hand (3)

38,761 730,243

115,745 495,340

Total assets

772,332

620,626

Reserves and Funds (4) Continuity Reserve Destination Reserve Destination Fund Balance of income and expenses for the period

112,697 100,859 48,331 138,695

199,600 100,859 160,779 (199,351)

Total reserves and funds

400,582

261,887

Current liabilities (5)

371,750

358,739

Total reserves, funds and liabilities

772,332

620,626

Reserves ,

funds

and

li a b ili t i e s

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4

Statement of revenue and expenditure for the period ended December 31, 2018 Actuals 2018

Budget 2018 (unaudited)

Actuals 2017

EUR

EUR

EUR

Source of income Income from own organizational fundraising (6) Interest income (7)

812,068 -

871,349 -

1,096,624 616

Total income sources

812,068

871,349

1,097,240

129,888

155,697

277,349

197,683

208,042

421,556

120,446

223,393

257,336

448,017

587,132

956,241

13,450

12,524

60,384

Operational and administrative expenses

211,906

238,165

279,966

Total expenses

673,373

837,821

1,296,591

IJV~VJJ

JJ~JLV

Expenses Expenses made for Strategic Objectives Objective 1:

Objective 2:

Objective 3:

Advocate: Create awareness on the topic of Economic Citizenship and stimulate organizations to get involved in providing financial inclusion, education and/or entrepreneurship. Network Connector &Expert Hub: Connect stakeholders and promote cross-organizational learning, through replication or innovative models and ensure that stakeholders are getting access to materials that will help them in developing and implementing policies and programs and modifying existing work based on best practices and innovations. Network Advisor: Provide to the network examples of how different approaches can be implemented, whilst sharing expertise and providing or facilitating technical assistance.

Subtotal Objectives 1, 2 $ 3 Expenses for fundraising Expenses from own organizational fundraising

Result

,IJ~7~JJ 1~

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It is proposed to appropriate the result 2018 as follows: EUR Addition to destination fund [A] -The Mastercard Foundation - Mastercard Corporation -Zurich Foundation -Sanad

EUR

1,036 46,973 65,741 7g2 114,542

Deduction from destination fund [B]: - People's Postcode Lottery -European Commission -International Visegrad Fund

(8,578) (6,467) (676) (15,721)

Addition to continuity reserve [C]: -General income, income for contribution meetings and others

39,874 39,874 138,695

Footnote A: The amount as proposed to atld to destination fund of EUR 114,542 is concerned with the differences between income recognized in 2018 and expenses recognized in 2018. Footnote B: The amount as proposed to deduct from destination fund of EUR 15,721 is concerned with the differences between income recognized in 2018 and expenses recognized in 2018. Footnote C: The positive amount of EUR 39,874 is concerned with the difference between income recognized in 2018 and expenses recognized in 2018 relating to various donors for which no agreement is in place where specific requirements for spending are agreed.

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Index numbers

2018

2017

-Operational and administrative expenses in % of Total expenses [D]

31%

22%

-Expenses made for strategic objectives in % of Total expenses

67%

74%

2%

6%

55%

87%

-Expenses for fundraising in % of income of fundraising -Expenses made for strategic objectives in % of Total income

Footnote D: The operational and administrative cost reached 31% of the total expenditure in the financial year 2018. This includes direct and indirect costs as well as pro-bono contribution relating to work at Secretarial level in support of the strategic objectives and work supporting activities directly related to the strategic objectives. The EUR 211,906 in overhead cost allocated to administrative and operational cost represent 35% of total cost less pro-bono contributions, respectively.

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Commentary on actuals versus budget 2018 Actual expenses in 2018 excluding pro bono of EUR 608,931 were 10°/a lower than the budget for 2018 excluding pro Bono of EUR 676,472 with some variations between the different objectives. Overall on the year the foundation had a positive result of EUR 138,695. This positive result was mainly due to cost saving efficiencies introduced in 2018 and new funding coming in that had not been anticipated when drawing up the budget for the year. It is proposed that the majority of this positive result is to be appropriated to the destination fund, to be available for expenses to be made in 2019, in line with the requirements set forth by the relevant donors. When pro bono costs are factored in, the overall difference between the budgeted and actual expenses was EUR 164,448. The additional difference of EUR 96,907 when compared to the above is due to lower than expected probono contribution from partners, as evidenced on page 16 of the financial statements. The difference between the budget and actuals is explained below by objective. Advocacy -The main costs associated with this objective are salaries, expenses relating to the Global Inclusion Awards and Global Money Week. The difference between the budgeted and actual expenses for this objective (83°/a of budget realized) was almost completely due to lower than expected pro-bono contribution and a very small amount due to slightly lower than expected salary. This is despite the fact that costs associated with the Global Inclusion Awards were actually much higher than budgeted due to a new donor entering in 2018, exclusively for this activity, thus the outputs were drastically increased. Network Connector &Expert Hub —The main costs associated with this objective are salaries, expenses for travel for Systems Change Country work, Ye! website, awards and boost camps and meeting costs. The difference between the total budgeted and total actual expenses for this objective (95% of budget realized) was exclusively due to the decrease in pro Bono contributions, otherwise this objective would have had no substantial difference. However, looking at the details, there are substantial differences in specific activities. Salary costs in this objective were much higher than budgeted and the meeting costs, as there was not a Summit, were non-existent. Network Advisor —The main costs incurred within this objective were salaries, pilot program costs (SchoolBank), and workshop costs. The difference between the budget and actuals for this objective (54% of budget realized) is quite substantial and can actually be traced to all the cost lines. For non-project costs, salaries were a bit lower, as well as pro bono contributions. The project costs themselves were lower mainly due to the fact that budgeted activities were not completed during the calendar year and thus some of the final expenses were delayed to the first quarter of 2019. Fundraising —The main expense for fundraising was travel. The difference between the budget and actuals was substantial when looked at as a percentage, however the budget (EUR 12,524) and actuals (EUR 13,450) were ultimately not that far from one another, relatively speaking. The reason for the difference was a strategic decision made by the Board to allow the Secretariat some leeway to allocate some travel funding so as not to miss any good opportunities. Operations —The main costs associated with this are salary, rent and general office expenses. The difference between the budget and the actuals for operations (89% of budget realized) is due to lower than expected pro bono contributions and a strong operational control on general office expenses, which resulted in a lower spend on the year.

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8

Cash flow statement 2018 2018 EUR Cash flow from operating activities Net result Depreciation

2017 EUR

138,695 6,213

EUR (199,351) 5,058

144,908 Changes in working capital Receivables and prepayments Current liabilities

EUR

76,984

(194,293)

173,361 (129,641) 89,995

43,720

Cash flow from operating activities

(150,573) ...................................

Cash flow from investing activities Additions tangible fixed assets

11,082

Net cash flow Increasel(decrease) cash and cash equivalents Movements in cash and cash equivalents Opening balance cash and cash equivalents Increase/(decrease) cash and cash equivalents Closing balance cash and cash equivalents

(161,655)

495,340

656,995 (161,655) 495,340

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Notes to financial statements General Activities Large numbers of vulnerable children and youth are still not able to acquire essential skills provided through social and financial education, nor access financial services that can build their asset base and financial capability. Child and Youth Finance International aims to initiate, leverage and coordinate a global multi-stakeholder approach to these challenges, ultimately building a global consensus on a multifaceted, culturally sensitive, approach to the provision of child friendly banking services and social and financial education for children in all countries of the world. Foundation Child and Youth Finance International is a foundation located in Amsterdam. Foundation Child and Youth Finance International was founded on June 30, 2011, its vision is "That all children and youth realize their full potential as responsible economic citizens ". To achieve our mission, strategic objectives are structured along the three pillars of the organization: 1 2

3

Advocate: Create awareness on the topic of Economic Citizenship and stimulate organizations to get involved in providing financial inclusion, education and/or entrepreneurship. Network Connector &Expert Hub: Connect stakeholders and promote cross-organizational learning, through replication or innovative models and ensure that stakeholders are getting access to materials that will help them in developing and implementing policies and programs and modifying existing work based on best practices and innovations Network Advisor: Provide to the network examples of how different approaches can be implemented, whilst sharing expertise and providing or facilitating technical assistance

The three pillars are included for the first time in these financial statements 2018. For the comparative figures of 2017, the prior four pillars are remapped to these three pillars. In December 2017, the Supervisory Board of Child and Youth Finance International approved an eventual strategic shift for the Foundation. Building upon the successful approach of Systems Change for Economic Citizenship that has been followed since its foundation, the organization will be applying the same Systems Change logic to youth entrepreneurship. This shift did not take place during 2018 as the organization was still busy winding down all Economic Citizenship related activities and conducting further strategic discussions to determine the viability of such a shift and a resultant strategy to accompany it. The Supervisory Board discussed the matter further over the course of 2018 and recommended a stakeholder consultation be conducted in early 2019 to test the idea and accompanying strategy with network partners.

Accounting principles The financial statements are prepared under the historical cost convention in accordance with accounting principles generally accepted in the Netherlands pursuing RJ 650 (Fund Raising Organizations).

Allocation of expenses The expenses recognized in the reporting year are allocated to the objectives or to operational and administrative costs. The allocation has been prepared in the schedule allocation of expenses to objectives.

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10

Index numbers The index number operational and administrative expenses provides the percentage from total expenses used for operative and administrative tasks. The index number expenses made for strategic objectives provides the percentages from total expenses used for expenses made for strategic objectives. The index number expenses from fundraising provides the percentages from total income from fundraising or expenses made for fundraising. The index number expenses made for strategic objectives provides the percentages from total income used for expenses made for strategic objectives.

Summary of significant accounting policies Foreign currencies Assets and liabilities denominated in foreign currencies are translated into EUR at year-end exchange rates; exchange gains and losses are charged to the Statement of revenue and expenditures. Transactions in foreign currencies during the financial year are translated into euro's at the rate of exchange ruling on transaction date.

Tangible fixed assets Tangible fixed assets are valued at historical purchase price less depreciation, determined on a straight-line basis over the estimated useful economic lives of the assets concerned, taking into account any residual values.

Receivables Current receivables are initially recognized at fair value plus transaction costs and subsequently stated at amortized cost based on the effective interest method net of a provision for doubtful debts when necessary.

Cash at bank and in hand Cash at bank and in hand includes cash in hand, bank balances, notes and checks. It also includes deposits if these are effectively at the Foundation's free disposal, even if interest income may be lost. Cash at bank and in hand not expected to be at the Foundation's free disposal for over twelve months is classified as financial fixed assets. Cash at bank and in hand are carried at face value.

Current liabilities On initial recognition, current liabilities are carried at fair value less directly attributable transaction costs. After initial recognition, current liabilities are carried at amortized cost. This is usually the face value for current liabilities.

Principles of determination balance of income and expenses General The result is determined as the difference between income generated by contributions, membership fees and others, and the costs and other charges for the year. Income is recognised in the year in which it is realised. Income relating to services in kind and expenses of pro bono services received are valued at their respective fair value amounts.

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11

Income and expenses Income is recognised in the period it has been received or by contract agreed. Expenses are recognised at the historical cost convention and are allocated to the reporting year in which they occurred. As the result of the aforementioned, in instance, income might not match with expenses and are in these cases processed via destination fund and/or reserves. Depreciation Depreciation is provided by the straight-line method over the estimated useful economic life.

Cash flow statement The cash flow statement has been prepared applying the indirect method.

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Notes to the balance sheet December 31, 2018 Office equipment EUR

Fixed assets Tangible fixed assets (1) Net book value at January 1, 2018 Additionsldeductions Depreciation charge for the year

9,541 (6,213)

Net book value at December 31, 2018

3,328 34,346 (31,018)

Cost Accumulated depreciation

3,328

Net book value at December 31, 2018

Office equipment is depreciated over a life term of 3 years.

Current assets 2018

2017

EUR

EUR

Receivables and prepayments (2) Other receivables and prepayments

38,761

115,745

38,761

115,745

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13

2018

2017

EUR

EUR

719,283 7,488 2,000 745 727

483,674 7,488 2,000 838 1,340

730,243

495,340

Cash at banks and in hand (3) Current account ABN AMRO Bank Saving account ABN AMRO Bank Bank Business Deposit Paypal bank account Cash in hand

Cash at banks and in hand are available on demand.

Reserve and funds (4) Continuity reserve Balance at 1 January, 2018 Appropriation of balance 2017 Balance income /expenses 2018 Balance at December 31, 201S

199,600 (86,903) 112,697

Destination reserve

Destination Balance of fund incomeI expenses

Total

100,859 -

160,779 (112,448) -

(199,351) 199,351 138,695

261,887 138,695

100,859

48,331

138,695

400,582

In accordance with the provisions of Article 19 of the articles of association, the Board decides on the appropriation of the balance of income and expenses. The appropriation of balance income and expenses for the financial year 2018 is proposed on page 5 of the financial statements.

Continuity reserve The Foundation wants to ensure sustainability of the organization so that its international network is not affected. Therefore the Foundation wants to create a continuity reserve to cover operational and program costs for a period of 6 months. This time frame is based on a prudent assessment of the time required to source additional funding. According to 'The Wijffels code' this reserve should not exceed 1,5 times the operational costs. A higher reserve will need clarification. On December 31, 2018, the reserve was below this limit. The continuity reserve is built up by income primarily from private donors or membership fees that are not specified for a particular activity. Within the continuity reserve before result appropriation no balance is included as destination fund.

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14

Destination reserve The Foundation creates a destination reserve for the purpose to allow the organization to reach out to vulnerable children and youth around the world, ensuring they have access to economic citizenship education and access to financial services. As per board recommendations, the reserve remains locked until the end of 2018 at which point it will become available for immediate use, though future use of this reserve will be decided in agreement with the Board.

Destination fund The Foundation creates a destination fund for income recognized in a year, conform contract terms, which is not spent yet. 2018

2017

EUR

EUR

14,839 19,713 8,925 7,882 193,023 94,034 33,334

19,297 14,057 34,321 7,045 196,589 87,430 -

371,750

358,739

Current liabilities (5) Accounts payable Other payables Wage tax and social security's payables Accrued holidays Received in advance People's Postcode Lottery Received in advance Mastercard Foundation Zurich Bank

Employee information In 2018 the Foundation employed on average 9 (FTE:8,7) employees and 2017:12 (FTE: 11,2). The employees are divided in FTE's over the objectives as follows: 2018

2017

Advocate Network Connector &Expert Hub Network Advisor Fundraising Operations

2,0 3,0 2,0 0,1 1,6

2,4 4,4 2,4 0,1 1,9

Total employees

8,7

11,2

EUR

EUR

Gross salary Social contributions

292,048 49,687

618,576 113,347

Total personnel cost

341,735

731,923

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15

Remuneration Board of Directors The foundation is managed by two co-directors who both have a full time base indefinite contract. In 2018, the foundation had a management board consisting of the two co-directors. The following costs are derived from the salary administration and comprise of the salary of the members of the management board for the period January 1, 2018 until December 31, 2018: Management board member J.A Van Eijk L. Shaban Total EUR

Gross salaryEUR Social contributions EUR Total salarycosts management board EUR 9,701 61,858 52,157 6,942 59,460 52,518 121,318 16,643 104,675

The co-director J.A. van Eijk is employed as from July 1, 2011. The gross salary per month is EUR 4.029. The co-director L. Shaban is employed as from May 1, 2016. The gross salary per month is EUR 4.029.

Contingencies and commitments The foundation has a rental commitment of EUR 4,417 per month. The rent contract expires in May, 31 2019.

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Accountants B,v

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16

Notes to the statement of revenue and expenditure December 31, 2018 2018

2017

EUR

EUR

Income from own organisational fundraising (6) The Mastercard Foundation [1] People's Postcode Lottery Mastercard Corporation Zurich Bank Saudi Arabia GIA 2018 De Nederlandsche bank Sanad Mastercard International FPC Philanthropies GSRD Foundation Value Investor Conference Centro Studi Cultura Sviluppo Ministerie van Financien Skoll Foundation European Commission [2] EFSE Schoolbank [2] EFSE YE![2] Pro Bono Google Pro bono McKinsey &Company Pro Bono Services Houthoff Pro bono Altus Host B.V. Pro bona Services Deloitte Pro bono Salesforce Others

374,757 196,589 69,673 66,666 20,875 10,000 5,975 30,512 27,500 4,285 1,452 695 3,089

349,744 262,547 11,000 82,036 137,955 39,581 31,250 24,921 12,800 7,500 1,140 (7,688) (10,459) (17,668) 81,691 55,000 5,146 6,207 13,305 10,616

812,068

1,096,624

Multiple year donor commitments are as follows: 1 The Mastercard Foundation —three year contract from April 2016 until March 2019, totaling USD 1,243,266 of which EUR 374,757 is the third year of income in 2018. 2 European Commission, EFSE Schoolbank and EFSE YE! present negative income in the comparative figures 2017. This is caused by the write off regarding the balance sheet receivable position as of 31-12-2016. For these projects less income is received according to contract because activities were cancelled. There were no expenditures that are not covered by related income. The negative income is fully financed by the opening balance of the destination fund.

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17

Interest income (7) 2018

2017

EUR

EUR 616

Interest saving account ABN AMRO Bank

616

S~h~pp~r Accountants B.V. lniti~il~~i nn behalf of ~~hi~p~r Accountants B.V. ~f~~• id~ndti ~ purpose only

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18

Allocation of expenses to objectives

Strategic objectives

Advocate: Create awareness on the topic of Economic Citizenship and stimulate organizations to get involved in providing financial inclusion, education and/or entrepreneurship..

1

2

3

EUR

EUR

EUR

32,804

-

-

Network Connector &Expert Hub: Connect stakeholders and promote cross-organizational learning, through replication or innovative models and ensure that stakeholders are getting access to materials that will help them in developing and implementing policies and programs and modifying existing work based on best practices and innovations.

-

38,359

-

Network Advisor: Provide to the network examples of how different approaches can be implemented, whilst sharing expertise and providing or facilitating technical assistance.

-

-

50,862

Wages Social securities and taxes Depreciation and interest expenses Othercosts

48,277 8,993 -

127,753 19,257 -

48,277 8,993

Subtotal

90,074

185,369

108,132

Pro bono services [E]

39,814

12,314

12,314

129,888

197,683

120,446

Total expenses

-

Donor allocations have been made in accordance to the specifications of the donors in the contracts. Allocations of costs to objectives have been made based on actual costs and salary costs spent on meeting the said objective.

Schfpper Accountants B.V. Initialled on behalf of Schipper Accountants B.V. For ident,~iq~io]~ purpose only d.d....:2.C~/ .0/ 3~~........... Initial t'ar identification purposes : C;


19

Expenses for Fundraising

Operational and administrative [F]

EUR

EUR

Total 2018 EUR

Budget 2019

Budget 2018 EUR

EUR

-

-

32,804

8,500

47,757

-

-

38,359

74,150

24,133

-

-

50,862

89,500

37,333

13,450

67,741 12,444 6,213 125,508

292,048 49,687 6,213 138,958

298,199 52,623 3,000 140,500

310,672 54,824 3,000 160,500

13,450

211,906

608,931

676,472

638,219

-

-

64,442

161,349

64,442

13,450

211,906

673,373

837,821

702,661

Footnote E: Pro bono goods and services for 2018 are valued at EUR 64,442 and have been added to the expenses totals for 2018. Footnote F: The operational and administrative cost reached 31% of the total expenditure in the financial year 2018. This includes direct and indirect costs as well as pro-bono contribution relating to work at Secretarial level in support of the strategic objectives and work supporting activities directly related to the strategic objectives. The EUR 210,091 in overhead cost allocated to administrative and operational cost represent 35% of total cost less pro-bono contributions, respectively.

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20

Signatories to the financial statements Amsterdam ................... ... 2019 Co-directors:

J.A. van Eijk

L. Shaban

Schipper Accountants B.V. Initialled on behalf of Schipper Accountants B.V. For ident~'~ tipn purpose only Initial for identific~ti0n purposes : G~


21

Other information Proposed result appropriation In accordance with article 19 of the articles of association, the annual proceeds from the reserve and funds as well as the gains whatsoever named and received in any year, not destined to be regarded as reserve and funds, can be used for the realisation of the objectives of the company. The Co-Directors propose to appropriate the balance of income and expenses of 2018 as follows: — Addition: EUR 65,741 Zurich Bank, EUR 46,973 Mastercard Corporation, EUR 1,036 The Mastercard Foundation and EUR 792 Sanad to Destination Fund. — Deduction: EUR 8,578 People's Postcode Lottery, EUR 6,467 European Commission and EUR 676 International Visegrad Fund from Destination Fund. — Addition: EUR 39,874 to Continuity Reserve. For a detailed explanation of the result appropriation, reference is made to page 5 of the financial statements. Awaiting a decision from the Board, the balance sheet is prepared before appropriation of the balance of income and expenses.

~~~ipper Accountants ~.V. Initiaifeci on behalf of Schippe~ Accountants B.V. For iden if t' n purpose only Initial for identification purposes : ~~


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er

Accountants Schipper Accountants B.V. Schermerhornstraat 2 4463 XD GOES Postbus 8 4460 AA GOES info@schippergroep.nl www.SchipperGroep.nl Tel 0113 23 94 00 Fax 0113 23 09 30 KvK 22058060 Btw NL814685262B01

Independent auditors' report To: the management of Stichting Child and Youth Finance International

Report on the financial statements Our opinion We have audited the financial statements for the year ended 31 December 2018 of Stichting Child and Youth Finance International, based in Amsterdam. In our opinion the accompanying financial statements give a true and fair view of the financial position of Stichting Child and Youth Finance International as at 31 December 2018, and of its result for the period of 2018 in accordance with Part 9 of Book 2 of the Dutch Civil Code. The financial statements comprise: 1. the balance sheet as at 31 December 2018; 2. the profit and loss account for 2018; and 3. the notes comprising a summary of the accounting policies and other explanatory information. Basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the 'Our responsibilities for the audit of the financial statements' section of our report. We are independent of Stichting Child and Youth Finance International in accordance with the Wet toezicht accountantsorganisaties (Wta, Audit firms supervision act), Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics). We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

B. Report on the other information included in the annual report In addition to the financial statements and our auditor's report thereon, the annual report contains other information that consists of: -Annual report 2018 -Other information pursuant to the Guideline for external reporting RJ 650 "Fondsenwervende instellingen" (Fund Raising Organizations) of the Dutch Accounting Standards Board.

AI onze dienstverlening is onderworpen aan onze algemene voorwaarden, gedeponeerd bij de griffie van de rechtbank in Middelburg onder Hummer 3/2013. De algemene voorwaarden liggen ter inzage en kunnen worden geraadpteegd op onze website www.SchipperGroep.nl


Scriber

Based on the following procedures performed, we conclude that the other information is consistent with the financial statements and does not contain material misstatements. We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of the Guideline for external reporting RJ 650 "Fondsenwervende instellingen" (Fund Raising Organizations) of the Dutch Accounting Standards Board and the Dutch Standard 720. Management is responsible for the preparation of the other information, including the annual report in accordance with the Guideline for external reporting RJ 650 "Fondsenwervende instellingen" (Fund Raising Organizations) of the Dutch Accounting Standards Board.

C. Description of responsibilities regarding the financial statements Responsibilities of management for the financial statements The management is responsible for the preparation and fair presentation of the financial statements in accordance the Guideline for external reporting RJ 650 "Fondsenwervende instellingen" (Fund Raising Organizations) of the Dutch Accounting Standards Board. Furthermore, management is responsible for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatements, whether due to fraud or error. As part of the preparation of the financial statements, management is responsible for assessing the company'sability to continue as a going concern. Based on the financial reporting framework mentioned, management should prepare the financial statements using the going concern basis of accounting unless management either intends to liquidate the foundation or to cease operations, or has no realistic alternative but to do so. Management should disclose events and circumstances that may cast significant doubt on the foundations ability to continue as a going concern in the financial statements. Our responsibilities for the audit of the financial statements Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material errors and fraud during our audit. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion.

~~


Scl~i~er

We have exercised professional judgement and have maintained professional skepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included among others: - Identifying and assessing the risks of material misstatements of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatements resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; - Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control; - Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board; - Concluding on the appropriateness of the managements use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the foundations ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause a foundation to cease to continue as a going concern; - Evaluating the overall presentation, structure and content of the financial statements, including the disclosures; and - Evaluating whether the financial statements represents the underlying transactions and events free from material misstatements. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit. Rotterdam, 28th of June 2019 Schipper Accountants B.V.

was signed

drs J.C. Polderman RA Initials for identification purposes: C~

~~


25

Budget 2019 (unaudited) Budget 2019 EUR Source of income Income from own organizational fundraising Income from government Interestincome

597,442 -

Total income sources

597,442 ...................................

Expenses Expenses made for Strategic Objectives Objective 1:

Objective 2:

Objective 3:

Advocate: Create awareness on the topic of Economic Citizenship and stimulate organizations to get involved in providing financial inclusion, education and/or entrepreneurship. Network Connector &Expert Hub: Connect stakeholders and promote cross-organizational learning, through replication or innovative models and ensure that stakeholders are getting access to materials that will help them in developing and implementing policies and programs and modifying existing work based on best practices and innovations. Network Advisor: Provide to the network examples of how different approaches can be implemented, whilst sharing expertise and providing or facilitating technical assistance.

Sub total Objectives 1, 2 & 3 Expenses for fundraising Expenses from own organizational fundraising

Operational and administrative expenses Total expenses Result

208,030

137,277

106,698 452,005

32,296

218,360 702,661 ................................... (105,219)


47


48


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