2012 A N N U A L
R E PO RT
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About Us
Social Impact
Contents
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About CEVI Mission Vision Message from the President, BOT Message from the Executive Director Message from CEO, VisionFund International Board of Trustees Organizational Chart
Social Performance Feeding Activities Pricing Transparency Platinum for Social Performance Reporting Entrepreneurs Congress CEVI Staff Reflection on CEVI’s Medical and Dental Mission CEVI 12th Anniversary Celebration Stories of Change
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Operational Highlights
Financial Statements
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VISION 20/20 Coverage Areas Product Portfolio World Vision Relief Operations Kredits, CEVI New Core Banking System Communications Learning Event VFI Film, Genevieve’s Story
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Auditor’s Report Balance Sheet Statement of Revenue & Expenditures Statement of Cash Flow Statement of Changes in Equity
CLIENT PHOTO
(From left to right) Kim loves English, John loves story telling and drawing, and Elbert dreams of becoming a seaman someday.
Erika and her mother Cecilia, a CEVI client for two years, are infront of their house weaving baskets together. Cecilia said, “My business started with a loan of Php 3,000 from CEVI. I used my loan to purchase the rattan, nito, buri and abaca, things that are needed to create a basket.�
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About Us WE ARE AN INTERNATIONALLY RECOGNISED, TRANSPARENT AND SOCIALLY RESPONSIBLE MICROFINANCE ORGANISATION IN THE PHILIPPINES.
Vision
We offer financial services, consultancy and the necessary training to help businesses grow and survive. Successful businesses lead to financial security. Our goal is to transform the lives of poor families and their children.
Mission
We have a broad range of effective loan, credit, insurance and savings programmes. Our financial products are well tailored to the needs of poor people and help them to grow their family livelihood. We help our clients expand their businesses and provide a better future for their families and children. Through fostering the development of a small business, our clients now have the financial security to buy nutritious food, pay for healthcare services and further their children’s education.
People Experiencing Fullness of Life.
As a sustainable Microfinance Institution, we follow Jesus Christ in promoting transformation in the lives of poor families and communities through the provision of appropriate microfinance services with values formation, training and consultancy.
ABOUT US
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Message from the President Praise God from whom all blessings flow! Another year has come and as we look back to the year that was, my heart is ever grateful to God and the blessings of your continuing support to the Community Economic Ventures Inc. (CEVI). In the year 2012, CEVI has maintained the highest rating in its integration with World Vision. This achievement could have not been possible without the joint commitment with World Vision (a sister organization) to align strategies and work to holistically respond to the needs of those whom we serve with CEVI providing economic development opportunities. CEVI continues to be a channel of God’s love and hope by contributing to a lasting change in the lives of 29,304 clients and impacting a total of 124,482 children in 13 provinces and 13 cities in the country. It has provided financial literacy and leadership training to help equip parents with the right skills and knowledge to manage their business well and provide appropriate loans to increase or have regular income. Aside from developing capacities for entrepreneurship, CEVI implemented community development efforts such as feeding activities and medical mission in
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
CEVI areas. All these shared the same goal that the well-being of children and their families are sustained. With a strategy in place, CEVI consistently assesses its efficiency and effectiveness to ensure that what it promises is what is delivered. The year 2012 has been a time of strengthening and enhancing accountability mechanisms and operational processes to achieve the goals set for the next 4-5 years . CEVI acknowledges that prayer is an integral part of its life and is constantly mindful of God’s direction. Through its Christian Witness Program, spiritual nurture for staff and clients are deepened. Work is viewed as witnessing to God’s love for those whom we serve. Over the years, CEVI has worked sensitively in various contexts of faith expressions. CEVI’s work has been recognized by the following awards received - the Platinum Award of CEVI from MIX Market for Social Performance Reporting and the Pricing Transparency Award from MF Transparency. These awards are a testimony of the work of CEVI. The Board is truly proud of CEVI’s achievements and these were made possible because of the dedication and commitment of our 312 employees and various stakeholders.
I also would like to take this opportunity to thank the members of the Board of Trustees who have worked with me all these years, for their vision, passion and commitment by giving quality time of themselves to make a difference.
ELNORA B. AVARIENTOS BOT President
Message from the Executive Director Greetings! I am pleased to announce that this year; CEVI is already 12 years in operations, as a microfinance organization in the Philippines that continuously provides financial services and helps the poor lift themselves out of poverty. Since the time that World Vision established the Community Economic Ventures Inc. (CEVI) as a Micro-Enterprise Development (MED) Program, many families have been provided with better access to credit, build up capital, micro Insurance and values formation. One moment, CEVI was only a branch with 3 employees, then another moment; it had 29 branches and 312 dedicated staff, which works together to carry out its programs and services. However, the run-up to our 12th year also holds a number of challenges and we are grateful that through the strong cooperative efforts of CEVI’s Board, Management and Staff with the support from stakeholders and partners, we have gradually taken firm action to address those challenges. Our recovery plan and strategies were immediately set in motion, which provided us a real picture into where CEVI is at the moment, what our directions are in the future, and what we, as a company, need to do to pull CEVI back on to its positive growth track again. More so, we have established a computerized Management Information System (MIS) and have
standardized our Business Processes to be able to deliver an excellent service, and transforming our operations to make them more efficiently managed. I personally found this as an immensely valuable opportunity to strengthen our operations and improve the services we provide to our clients at this stage in the implementation of our new Core Banking System. Today, CEVI has successfully loaned to 29,304 families and impacted to 124, 482 children in 13 cities and 13 provinces in the country. We will continue to do this because we believed that every loan represents a changed life. Once a family has a growing and sustainable source of income, the parents can then build a better and more secure life for their children. This is how we want to help, making a lasting impact to the lives of the people we serve.
Above all, to God who is the true source of all our accomplishments. May God bless us all!
Warmly,
JONAR B. DORADO, CPA CEVI Executive Director
Allow me to recognize our longstanding partners: The World Vision Development Foundation (WVDF) and VisionFund International (VFI), who extended support to us since the very beginning to make us more viable as an institution. To KIVA, Planet Finance, Bank of the Philippine Island, Globe Banko, People’s Credit and Finance Corporation, and to the World Vision ADP partners and the support offices of World Vision Canada, Germany, Hongkong and Singapore for their continued partnership to us.
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ABOUT US
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Message from Scott Brown, President and CEO, VisionFund International
VisionFund’s microfinance institution (MFI) in the Philippines demonstrated outstanding achievement in values and integration in 2012, completing the fiscal year with a client base of 29,304 families, 47% of which live in areas where World Vision works. Over the twelve month period, our MFI made positive changes to the lives of more than 124,000 children in the Philippines. CEVI is an affiliated microfinance institution of VisionFund International. In 2011, we announced our global strategy to improve the lives of 3.5 million children every year by 2015, helping to liberate them from poverty. Our MFI in the Philippines makes a valued contribution to our mission with microfinance programmes that demonstrate Christian values and promote integration with World Vision. Throughout financial year 2012, the MFI has adhered to its core values of serving the poor through reviewing and implementing loan products that deliver impact and inclusiveness. All borrowers are offered financial literacy and leadership training to help them grow their family livelihood. This commitment to social performance has been recognised by independent rating agencies, where it has won two awards for COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
Social Performance Reporting and Pricing Transparency. VisionFund International has much to be thankful for in FY13. 2013 marks the beginning of our tenth anniversary year. World Vision established VisionFund International in 2003 to manage and govern its network of affiliated MFIs. Since then, we have worked faithfully as World Vision’s microfinance ministry to fulfill our shared vision that each child should experience life in all its fullness. Over the last ten years, we have dispersed 6.6 million loans and lent over US$ 3.5 billion to some of the world’s most vulnerable people, helping them to build more secure futures for their children. Today, VisionFund International operates 36 MFIs around the world, with a collective loan portfolio of US$ 419 million (FY12 figures). We congratulate our MFI in the Philippines on its outstanding accomplishments and contribution towards our global success. We are thankful to all local and international partners and stakeholders for supporting us in bringing sustainable improvements to local communities.
SCOTT BROWN President & CEO, VisionFund International
CLIENT PHOTO
As a microfinance organization which aims to help people alleviate themselves out from poverty, CEVI has already impacted more than 124,000 children across the country. COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
Board of Trustees
ABOUT US
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Elnora B. Avarientos PRESIDENT Elnora Avarientos is the current Executive Advisor for Ministry and Sponsorship under the Global Center Integrated Ministry/Child Sponsorship Group. She was a former National Director of World Vision Development Foundation in the Philippines. Working for more than 32 years in World Vision, she was able to provide support and guidance to national directors and leadership teams in countries such as Cambodia, Indonesia, India, China and Papua New Guinea in enhancing their capacity to lead, manage and deliver quality ministry, through coaching and mentoring. She is also the former Director for Diversity Management at World Vision International.
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
Mr. Eduardo C. Jimenez VICE-PRESIDENT Presently working as Microfinance Consultant of the Bangko Sentral ng Pilipinas. Looking at policy issues affecting the practice of microfinance in the banking sector, he is also the Housing Microfinance Consultant of the Asian Development Bank. Mr. Jimenez has previously worked as consultant for the United Nations (UN) and other UN attached agencies as well as with other bilateral organizations.
Danilo Lucero, CPA TREASURER Danilo Lucero is a Certified Public Accountant and a Senior Pastor of JESUS Our Hope International Assemblies Inc. (JOHIA) in Marikina City, Philippines. He is also the President of the CROSSCountry Farms and Parks, Inc., Chairperson of Saver’ Club and a former Deputy Director of World Vision Development Foundation, Inc.
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Atty. Gregorio Austral, CPA
ASSISTANT TREASURER Gregorio Austral is a Certified Public Accountant and a Lawyer from Tagbilaran City Bohol. Currently, he serves as a college professor and a Dean of the University of Bohol College of Law. With extensive legal experience, he became instrumental in producing competent lawyers and in building the strong reputation of the University.
Florelyn Plaza Tiu SECRETARY Florelyn Plaza Tiu is currently the Director of the Humanitarian Emergency Affairs and Executive Associate for Governance of World Vision Development Foundation (WVDF). Before taking this lead role, she was also the Frontline Sponsorship Initiatives Manager of World Vision International, wherein she was able to provide support in enhancing the effectiveness and efficiency of field based sponsorship operations.
Rommel Peter Caringal BOARD MEMBER Rommel Peter Caringal is the VisionFund International Regional Director, in Asia Pacific Region. He provides leadership in the execution of VisionFund strategies involving 9 countries of Asia Pacific region. He has more than 15 years of extensive experience in microenterprise / microfinance sector in the areas of setting up commercial companies, organizational management, product and services development, human resource, organizational development, Management Information System (MlS), capacity building, board development, various program innovations for greater sustainability.
Rolly Solidum BOARD MEMBER Mr. Rolly Solidum is one of the original incorporators of Community Economic Ventures Inc. (CEVI) and has 27 years of experience in World Vision in various capacities -Program Management, Monitoring and Evaluation, Operations Audit and Micro-Enterprise Development. Presently he is working as a Design Monitoring and Evaluation (DME) Specialist of World Vision Development Foundation (WVDF).
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
ABOUT US
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ORGANIZATIONAL CHART LEGAL COUNSEL
EXECUTIVE SUPPORT GROUP
FINANCE DEPARTMENT
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
ADMIN DEPARTMENT
HR DEPARTMENT
BOARD OF TRUSTEES
EXECUTIVE DIRECTOR
RISK & AUDIT COMMITTEE
VFI RAM
AUDIT
EXECUTIVE ASSISTANT
OPERATIONS DEPARTMENT
IT DEPARTMENT
SOCIAL PERFORMANCE & INTEGRATION DEPT.
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
Eighty eight percent of our borrowers are women because we believe that when women are given the opportunity to engage in economic development, they could make a difference to helping families climb out of poverty.
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Social Impact MICROFINANCE LOANS HELP CHANGE THE FACE OF POVERTY. IN DEVELOPING COUNTRIES LIKE THE PHILIPPINES, MORE AND MORE PEOPLE HAVE ALREADY ENJOYED OUR LOANS PLUS THE MICRO-INSURANCE COVERAGE THAT WE PROVIDE. CEVI Microfinance product and services are well tailored to the poor. Aside from offering financial services, CEVI also aims to conduct other activities that have a lasting impact in the lives of people in the communities.
SOCIAL IMPACT
16 Social Performance Management as a Strategy for Microfinance towards Achieving Significance and Sustainability
Poverty Level of New Client Shown in Figure 1 is the concentration of poverty outreach on new clients for the fiscal year 2012.
Community Economic Ventures Inc. (CEVI) is a parallel organization of World Vision Philippines established in August 2000 to provide livelihood’s support among families.
Gray - shows % of Philippine Population below the $2.5/day poverty line.
CEVI had phenomenal growth in its first seven years of operation. However, CEVI experienced a decrease in the number of clients in 2005 and 2006. This was a concern for two reasons: firstly, the sustainability of its operations and secondly; CEVI did not know why clients were leaving.
Blue - average # of clients below NPL
Green - average # of clients below $1.25/day Orange -average # of clients below $2.5/day Yellow - average # of clients below USAID “extreme” Poverty Line Figure 1
On Figure 2 on the left is the Poverty Outreach of New Clients below two different Poverty Lines. The blue graph represents the National Poverty Line while the Orange represents CEVI clients living within $2.5/ Day. For the last three years, CEVI is showing an increasing trend of poverty outreach of new clients.
CEVI started to define its goals and review its strategy on the context of Social Performance. Through this, CEVI is able to learn and understand its borrowers including their current needs. CEVI also uses the Progress out of Poverty Index (PPI) tool in targeting and tracking borrowers that are below the Poverty Level. In this way, CEVI could analyze whether there is an improvement in the economic condition of its borrowers as they remain active in the CEVI program.
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
The graph reflects satisfactory poverty outreach results of CEVI.
Figure 2
Social Performance
Children Impacted 124,482
Women Outreached 88%
Job Created and Sustained 75,008
17 Helping Hands in the Community The children of Datag, Balilihan Elementary School in Bohol Philippines had bright smiles on their faces when Community Economic Ventures Inc (CEVI) visited them for a feeding and community outreach. Last October 14, 2012, CEVI distributed good tidings to the children of Datag Balilihan as part of the celebration of the CEVI 12th Anniversary. The theme of the activity was “Helping Hands in the Community”, which means that CEVI is an organization that contributes to the good of the communities.
Aside from distributing free meals and having a storytelling presentation to the children, CEVI volunteers also helped in the construction of the Havilah, cluster office, an organization being organized by CEVI in 2010 in partnership with the Family Christian Fellowship. In 2010, CEVI has implemented the Christian Witness Program and has collaborated with churches to conduct a spiritual strengthening program to CEVI clients and employees. The Havilah, was one of the CEVI’s most successful and active group, which is now composed of 31 families.
We are grateful to all the volunteers, which are mostly CEVI employees based at the Head Office in Tagbilaran City, Bohol for teaching the children at their respective classrooms about the life of Jesus Christ and how Jesus died on the cross just to save us from our sins. The volunteers also taught that Jesus loves the children and all the people.
The feeding and community outreach ended on a high note. CEVI promised to volunteer their time again in doing the same activities to the community in the future.
Mathew 19:14; Jesus said, “Let the little children come to me, and do not hinder them, for the kingdom of heaven belongs to such as these.” COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
SOCIAL IMPACT
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CEVI Received Pricing Transparency Seal Every year, the MF Transparency, a global initiative for transparent pricing of the microfinance industry provides recognition to Microfinance Institutions, which demonstrate strong commitment to having a transparent microfinance market in the Philippines. CEVI was grateful to receive its first Pricing Transparency Seal last December 8, 2011 and has given commitment to not just being transparent but also to be fair in terms of loan pricing. According to MF Transparency, the highly-respected MF Transparency Seal of Transparency is awarded to the providers of microfinance who become transparent in their product pricing. Institutions who participate in their country’s Transparent Pricing Initiative earn the Seal of Transparency upon publication of their data. This Seal can be used on the institutions’ marketing materials and website. It is a valuable way for MFIs to distinguish themselves from their competitors, get the attention of investors and gain visibility within the international microfinance community. CEVI has expressed strong support to this initiative. This will not just protect the consumers but also provide other microfinance institutions with the opportunity to exchange information, standardize pricing practices and demonstrate their commitment to transparent and responsible pricing.
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
CEVI Received A Platinum Award Community Economic Ventures Inc. (CEVI) received a Platinum award for its dedicated performance in providing financial and social performance transparency. In 2009 and 2010, CEVI has received a Silver Award and a Gold Award for Social Performance reporting. This year, CEVI finally achieved the Platinum Award, which is given to microfinance institution that has demonstrated consistent best practice to Social Performance Management. CEVI is the only MFI from the Philippines and the second MFI in Asia to have received this award. This outstanding achievement reflects CEVI’s commitment to and leadership in social performance. According to MIX, to receive the Silver Award, institutions must have completed proper documentation to MIX proving the existence of reported social performance policies and reported poverty measurement data to MIX. To receive the Gold Award, institutions must also have completed
the requirements of the Silver Award, have a social rating from 2008 or later and showed social change related to their mission. To receive the Platinum Award, institutions must have completed the requirements of the Silver and Gold Awards and completed an additional survey assessing new social performance indicators. To date, CEVI is taking its social performance management into a higher level by tracking the progress of its clientele including the educational information of their children. CEVI continues to adapt the Progress-out of Poverty Index (PPI), which is a resource which helps determine levels of poverty in groups and individuals, and allows to further assess clients’ needs and program effectiveness. This year, 59% of CEVI new clients lives within $2.50/day. 23% also lives within $1.25/day while 17% lives within “Extreme” Poverty Line. This shows that CEVI is reaching its intended client, which is the marginalized sector to avail of its microfinance services.
CEVI Conducted Entrepreneur’s Congress in Cebu and Leyte There’s an old saying that says, “When you give a man a fish, you feed him for a day. But when you teach a man to fish, he can feed and his entire family forever.” Part of CEVI’s commitment to achieve this year is the continued capacity building of its clients. CEVI believes that when clients learn the right business skills and are able to practice the right discipline, the possibility that they will succeed in business is higher. CEVI continues to mobilize its Credit Plus Education Program through partnering with Philippine’s Technical Education and Skills Development Authority (TESDA) and other institution in the conduct of Entrepreneur’s Congress and
Leadership Training. CEVI borrowers now have the chance to know the basic skills of Cash Flow Management, Livelihood Development and Savings in addition to Leadership courses that were integrated in the program. Last December 10, 2011, the Community Economic Ventures Inc., (CEVI) in Carmen Cebu, conducted its first Entrepreneurs Congress. The activity provided opportunities to CEVI to be able to advocate to its clients the importance of Sustainable Micro Business development in partnership with World Vision ADP’s, LGU’s and other line of agencies. The activity also provided a chance to CEVI borrowers to learn about meat processing, cake baking, soap making, and ice cream making, which could be other income
generating activities for their families. Also, last January 20, 2012, CEVI in Hilongos, Leyte held an Entrepreneurs’ Congress to more than 1,000 borrowers. Speakers were from the Department of Agriculture of Hilongos, Leyte, Ms. Raquel Mae Sanchez, Ms. Elma P. Roa, and Mr. Benjie Jovita to discuss the Agri- Entrepreneurship (Piggery and Vegetable farming). CEVI also invited one speaker from Visayas State University (VSU) namely Ms. Milagros Rosales to discuss Financial Management to CEVI borrowers. One example that typifies the impact of the Entrepreneur’s Congress is the way CEVI borrowers run their business. Eusebelle Abbu , 44 year-old borrower in Carmen Cebu says: “I realized that it is important that you treat your customers right . Your customers are important because they are the ones that will make your business thrive. This is what I learned from the training I had with CEVI”. Eusebelle used to offer manicure and pedicure services in her local community but because of the microfinance loan she took in from CEVI six years ago, she also now sells a variety of goods in Dawis Carmen Cebu. CEVI remains committed to conduct more capacity building activities in the future. CEVI also plans to conduct Cluster Management and Leadership Training, Financial Leadership Training, which will be of great benefit to the leadership and business skills of CEVI clients. COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
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SOCIAL IMPACT
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CEVI Staff Reflections on CEVI’s Medical and Dental Mission This year, the Community Economic Ventures Inc. (CEVI), the microfinance subsidiary of World Vision in the Philippines visited a small island in Pres. Garcia, situated in the province of Bohol, Philippines to provide free medical and dental services. There are over 1,000 Families and children who took part in the CEVI free medical check-up and consultation, dental services and have received free medicines during the Medical and Dental Mission that was held last February 24-25, 2012. CEVI salutes all the doctors, nurses, volunteers and supporters who have earnestly given their time and talents in making the Medical and Dental Mission possible. Indeed, they are the true heroes of this story.
Challenging “We did a lot for this medical mission and indeed it was a challenge to all of us since it was the first time that the CEVI hosted this kind of outreach. The planning and coordination to the local government unit, the volunteers and fundraising for the Medical Mission was never easy but at the same time it was an opportunity for all of us to be of help to the people in need”, says Joy Mae Maduro, CEVI Transformation and Development Coordinator. The Medical and Dental Mission was a challenge since it involves thousands of families. It was great that we have a system and plan that guided us to manage the crowd and ensure that everything is in order, says Orlando Ducay Jr., CEVI Communications Specialist. Inspiring We are grateful for the help that have been extended all through-out the activity by our supporters- the doctors from Philippine General Hospital, Red Cross Volunteers, CEVI Staff, LGU of Pres. Garcia, the Mercantile Insurance Company, CEV Credit Cooperative, Medicard, and the People Credit and Finance Corporation. We are happy that CEVI visited our small island for a free Medical Checkup and Consultation, my daughter just had her dental check-up today and I thank CEVI for doing this activity for us, says Teresita Porengues, CEVI client. As a reflection, we remember Jesus has said in Mathew 25:37-40 “Then the righteous will answer him, ‘Lord, when did we see you hungry and feed you, or thirsty and give you something to drink? When did we see you a stranger and invite you in, or needing clothes and clothe you? When did we see you sick or in prison and go to visit you?’ “The King will reply, ‘Truly I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me.’
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
Communtiy Economic Ventures Inc. (CEVI) celebrated its 12th Anniversary together with its longstanding partner: The Bohol Concern Citizen Action for Progress. (BCCAP) a World Vision ADP in Bohol, Philippines. CEVI volunteered to complete the flooring of two homes belonging to families that World Vision supports. CEVI also commits to continue to volunteer in the Housing Project of World Vision in the future. CEVI and BCCAP both started in the year 1998. However, it was in the year 2000 that the CEVI was registered as a Microfinance organization at the Securities and Exchange Commission in the Philippines.
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
SOCIAL IMPACT
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Stories of Change Life Is Never The Same Forever Jane and her husband, Ramonito, live in a small community called Makinhas, Baybay, Leyte in the Philippines. Both of them used to be unemployed that is why they decided to establish a small sari-sari store in their local village in order to raise their two children who are now in school. The couple lives so close to a community school. They take this as an opportunity to be able to sell RTWs (Ready-To-Wear) and general merchandise in addition to school supplies, (notebooks, papers, pens, pencils, bags and more) that they sold to the students. These give the family enough income to spend for the food, school and other basic needs. Jane always wanted the best for her children and she wanted her kids to get the best education as possible. Jane enrolled her two children Karen and Kian in a private school and dreamed that someday her children will finish their studies and become pharmacists in the future. Five years ago, before her second child was born, Jane’s life was really difficult. Jane does not have any livelihood and her husband could hardly find a job. One day, her friends introduced her to the Community Economic Ventures Inc. (CEVI) and she was able to borrow 6,000 Php from CEVI, which she used to start a small sari- sari store. After taking the loan, her life has changed gradually into something better. Jane’s business grew rapidly and was able to make repayments on her succeeding loans. Her current loan is 150,000 Php, which is very helpful in expanding her business more. Consequently, Jane acquired a set of computer, Xerox machine and delivery van for her business. She extended her general store into 2 room units and she also engaged into wholesale business. From being unemployed and a housewife, Jane is now an employer of six people and has a daily sales in her business of 20,000 Php. COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
Jane looked back in the past and realized that her small store has now transformed into a grocery store and is still growing. In Jane’s words:
“I believed in myself that I could make my dreams to happen. I truly thank CEVI for trusting to me a loan. Now, my life will never been the same again”.
23 Eduardo’s Story Eduardo Deloag Jr. has a cheerful smile on his face as he tells his story. He lives in a small village called Gubang, in the city of Baybay located in the Leyte region in the Philippines. Eduardo is the youngest son in his family and he is currently studying in primary school. Both of Eduardo’s parents are farmers. Just outside of their house are banana and coconut trees along with a small chicken farm. The farm and the trees have been the family’s source of income for years. Eduardo shares that the money earned is just enough to provide food on the table and pay for his tuition fees. In the past, it was not possible for his parents to provide anything extra, such as school materials or books.
Eduardo’s family lives in a small nipa house -- a traditional rural Filipino house. In the past, that the house had no water or electricity and their roof and walls were made entirely of nipa (coconut) leaves. When it rained or was cold, the thin layer of coconut leaves was the only coverage they have. In fact, when strong wind comes, Eduardo and his family were forced to move to their neighbour’s house. With a limited income, Eduardo’s family lived like this for many years. Yet, his mother Jocelyn was determined to change their lives. Hoping to provide a better life for her family, Jocelyn decided to borrow 175 US dollars from Community Economic Ventures Inc. (CEVI), a VisionFund affiliated microfinance institution. She used the loan to buy piglets and feed. This first loan helped Jocelyn start a pig farm that, in addition to the fruit trees and chicken farm, brings additional and reliable income to their family. She proceeded to borrow more from CEVI and her and her family’s lives have been transformed. Eduardo shares that with the additional earnings, his mother was able to replace the wall leaves with brick walls and put up electricity in their home while continuing to send Eduardo and his siblings to school. Jocelyn shares, “My children are doing better at school because they can now study even at night in our home.”
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
We are proud of the 312 employees who are dedicated to carrying out the programs and services of CEVI to more than 13 cities and provinces across the country.
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Operational Highlights CEVI’S ACCOMPLISHMENTS ARE CATEGORIZED INTO FIVE KEY AREAS, WHICH ARE: VALUES AND INTEGRATION, IMPACT AND INCLUSIVENESS, SUSTAINABILITY AND SYSTEM, INSTITUTION AND INDUSTRY BUILDING, ORGANIZATIONAL GOVERNANCE AND STAFF WELL-BEING, NETWORK AND RESOURCES. Serving the poor through provision of appropriate microfinance services, CEVI has served more than 24,000 families in 13 cities and 13 provinces across the Philippines.
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Values Integration
Vision 20/20
CEVI continues to implement programs that promote Christian values and full integration with World Vision. We remain to achieve an A rating in terms of our Integration to World Vision with 29,304 families across the country and 13,792 families from the 19 World Vision ADP areas covered by our microfinance program. This year, we boost all our efforts to cover a total of 1,153 Sponsored families from WV and impact over 124,482 children. We have also conceptualized a Social Protection Product for ADP, which we hope could strengthen more our relationship with our ADP partners. We institutionalized a culture of devotion and prayer by using devotional materials during weekly biblical reflection of CEVI employees and clients. A three-volume Devotional Materials on Spirituality in the Market Place was also successfully launched and distributed to CEVI staff and client. We continue to partner with four churches in the implementation of the Christian Witness Program. We participated to the World Vision’s Humanitarian Emergency Response and able to help families affected by floods in Bulacan. Above all, we celebrated our 12th Anniversary through a volunteer work to complete the flooring of two homes in the Land and Housing project of ADP Bohol 04.
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Impact and Inclusiveness
In terms of Impact and Inclusiveness, we continue to provide our borrowers with an appropriate loan product design and delivery. This year, we have carefully conducted review of our loan products in order to cater the needs of our clients and to have an edge in the market to areas where we operate. We also continue to offer financial literacy and leadership training to our borrowers to help them grow their family livelihood in addition to the access to microfinance services. We conducted Community Development, Feeding Activities, and Medical Mission in 3 different areas of CEVI that benefited more than 1000 families and children. We also extended our services to poor communities while giving priority to ADP areas by adopting the Progress Out of Poverty Index tool in a selection of our borrowers. According to our PPI Data, 59% of CEVI new clients lives within $2.50/day. 23% also lives within $1.25/day while 17% lives within “Extreme” Poverty Line. This shows that CEVI is reaching its intended client, which is the marginalized sector to avail of its microfinance services. Our PPI data also revealed that CEVI clients who live within $2.50 a day are 56% during the 3rd cycle, 54% during the 5th cycle, and 50% and 46% during the 7th and 9th cycle, respectively. This shows that there is a consistent decrease in the poverty rate as the cycle progresses, which also may mean that CEVI clients improve their economic status or living condition as they stay longer in the program
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Sustainability and System
Our Sustainability and System posed a great challenge this year. But we are grateful that important steps to address the issue of PAR and OSS, which is currently at 11.3% and 88%, were already put in placed. This year, we implemented a Risks and Compliance function, which enables us to have effective governance and management of all significant risks in our organization. We also have completed our Business Standardization that helps us strengthen our review and approval process including our internal control and performance monitoring. Above all, we implemented the Kredit System that enables us to generate reports more quickly which was unachievable using the previous manual method.
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We continue to perform enhancement of our capacity to serve our clients and contribute to the development of the microfinance industry.
In terms of Organization and Staff well-Being, we are proud of the 312 employees who are dedicated to carrying out the programs and services of CEVI to more than 13 provinces and cities across the country.
We are grateful that we have a reliable Network and Resources that help us to continually generate funding, and consistently contribute and benefit from initiatives and programs of the MFI network.
Institution & Industry Building
We continue to serve as a Board and Treasurer of the MicroFinance Council of the Philippines and participate in activities initiated by its network. We are also grateful to be one of the recipients of Social Performance Platinum Award from CGAP for Social Performance Reporting including the Pricing Transparency Award coming from the MF Transparency. Above all, the development of Integrity and Protection Hotline that helps us seek feedback and grievance from our clients has also provided us with more opportunities to improve our product delivery and services making us a better organization.
Organization Governance & Staff well-Being
The roll out of the Retirement Plan and Enhancement of CEVI Incentive Scheme has also provided motivation to CEVI staff to remain committed and loyal to the organization. The continued equipping of our Branch Managers and Support Staff, Team Building activity of the CEVI Board and Leadership Team, participation of our key staff to the Microfinance Conference in Manila, CEO Conference in Tanzania, including the VFI Social Performance Strategy Meeting in London, World Vision Asia Pacific Communications Conference in Thailand and Finance Conference in Cambodia do not only provide us with practical knowledge and ideas about the industry but also make us become more efficient to carry out our services and programs.
Network & Resources
VisionFund International (VFI) and World Vision Development Foundation (WVDF), our longstanding partners have helped us through in financing our MIS implementation. KIVA, one of our key funders has also increased our funding credit line from $350,000 USD to $ 1,000,000 USD annually. CEVI has also continued its partnership with Planet Finance, Bank of the Philippine Island, Globe Banko, People’s Credit and Finance Corporation, PLANIS, World Vision ADPs and the support offices of World Vision Canada, Germany, Hongkong and Singapore.
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
COVERAGE Nabunturan Naic Sitio Gulod Door 2 2/flr Arabejo bldg, Poblacion Nabunturan, Combal Province Barangay Munting Mapino Telephone: (084) 376-0811 Naic, Cavite Telephone: (046) 856-1305 Balasan Naic Davao City Barangay Maya, Balasan, Iloilo Sitio Gulod Door 103 Simpao Building, Ulas Roxas, Palawan Telephone: (033) 397-0581 Barangay Munting Mapino Davao City 8000 Fresnillo Residence, Naic, Cavite National Hi-way, Barangay 4 Telephone: (082) 321-0014 Sara Telephone: (046) 856-1305 Roxas, Palawan Barangay Aspera, Sara, Iloilo City Telephone:Zamboanga (033) 392-0011 Roxas, Palawan Puerto Princesa City Sampaguita Road, Guiwan Fresnillo Residence, # 82 Manalo4St. Zamboanga City National Hi-way, Barangay Carmen, Cebu Rodriguez Compound Telephone: (018) 412-4078 Roxas, Palawan Lapu-Lapu Street, Luyang Puerto Princesa City, Palawan Carmen, Cebu Isulan Telephone: (048) 434-7368 Puerto Princesa City Telephone: (032) 429-9558 National Highway,Kalawag 3 # 82 Manalo St. Isulan, Sultan Kudarat Brooke’s Point Rodriguez Compound Hilongos Telephone: (064) 201-5257 Street C.V Alcuino St. Hilongos, Leyte Puerto Princesa Quillope City, Palawan Poblacion District 2 Telephone: (053) 567-8023 Telephone: (048) 434-7368 Surallah Brookes Point, Palawan BLK. 12, Lot 11 Villanueva Plains Barili Brooke’s Point Surallah, South Cotabato A. Paras Cor. H. Alquizola Quillope Street Telephone: 238-3047 Poblacion,(083) Barili, Cebu Poblacion District 2
Luzon Area
Brookes Point, Palawan
Tandag City P-Draga, Brgy. Dagocdoc Tandag City Telephone: (086) 211-5500
Visayas Area
Telephone: (032) 470-9003 General Santos City Deling”s Building, Moalboal J. Catolico Pob. East, Moalboal, Avenue Cebu General City Telephone: (032) Santos 474-8322 Telephone: (083) 305-0065 Bais City Domocol Residense, Juan Luna Street Barangay 2, Bais City, Negros Oriental Telephone: (035) 402-3921
Dulag Butuan City Rizal Avenue 2/flr Mamacos Bldg. St. Barangay Market Site J.C Aquino Avenue Dulag, Leyte City Telephone: (053) Butuan 322-2554 Telephone: (085) 300-0016 Ormoc City Trento Door 5 Ai Saki Yuki Apartment Purok 6, Poblacion, Purok Ilang-ilang, Barangay Cogon Trento, Agusan Sur Ormocdel City Telephone: (085) 255-2790 Telephone: (053) 560-8599 Baybay City Tres Martires St. Corner R. Magsaysay Avenue Baybay City, Leyte Telephone: (053) 563-8182
AREAS Visayas Area
Mindanao Area
Tagbilaran City Sarabia-Co-Torralba Building 2 Espuelas Street Tagbilaran City, Bohol Telephone: (038) 501-8030
Nabunturan Door 2 2/flr Arabejo bldg, Poblacion Nabunturan, Combal Province Telephone: (084) 376-0811
Carmen, Bohol Cuaresma Building Poblacion Sur, Carmen, Bohol Telephone: (083) 525-9170
Zamboanga City Sampaguita Road, Guiwan Zamboanga City Telephone: (018) 412-4078
Jagna Can Upao, Jagna, Bohol
Davao City Door 103 Simpao Building, Ulas Davao City 8000 Telephone: (082) 321-0014
Tubigon 2/f Aste General Merchandise Pooc Occ., Tubigon, Bohol Telephone: (083) 508-7026 Talibon CPG Avenue,Talibon, Bohol Telephone: (038) 515-5038 Trinidad CPG Avenue, Poblacion, Trinidad Telephone: (083) 518-4010 Ubay Poblacion, Ubay, Bohol Telephone: (083) 518-8129
Isulan National Highway,Kalawag 3 Isulan, Sultan Kudarat Telephone: (064) 201-5257 Surallah BLK. 12, Lot 11 Villanueva Plains Surallah, South Cotabato Telephone: (083) 238-3047
Butuan City 2/flr Mamacos Bldg. J.C Aquino Avenue Butuan City Telephone: (085) 300-0016 Tandag City P-Draga, Brgy. Dagocdoc Tandag City Telephone: (086) 211-5500 Trento Purok 6, Poblacion, Trento, Agusan del Sur Telephone: (085) 255-2790 General Santos City Deling�s Building, J. Catolico Avenue General Santos City Telephone: (083) 305-0065
OPERATION
30
Product Portfolio Product Distribution %
45% 8% 47%
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
Loan Product Commerce Agriculture Asenso
Amount Php 78.2 Million Php 73.7 Million Php 13.9 Million
CEVI offers three loan products, which are designed to cater the needs of the economically active poor. Commerce Loan, which targets the microentrepreneurs engaged in a micro retail business occupies the biggest portion of the total loan portfolio of CEVI at 47 %. The Agri Loan, which targets the entrepreneurs engaged in agriculture is second in rank at 45%. The ASENSO Loan intended for CEVI graduate borrowers of commerce loan, who need higher capitalization in their business occupies 8% in the CEVI Portfolio.
33 As an institution, we feel very happy every time that we participate to the works of World Vision during Relief Operations because we knew that we are able to help families gain a new sense of confidence to move forward. CEVI also provides financial assistance and restructuring of borrower’s loan that were greatly affected by typhoon or calamity. Through this, CEVI helps the families stand with their two feet again and cope up from the adverse situation. This year, CEVI had an opportunity to participate two of the major Relief Operations organized by the World Vision Development Foundation (WVDF). The Typhoon Sendong/Washi Relief Operations in Cagayan De Oro and Iligan City on January 19-28, 2012 and Habagat Calamity Response in Bulacan, on August 26-September 15, 2012.
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
OPERATION
32
CEVI Implements a New Core Banking System CEVI has significantly grown over the years, in terms of outreach, coverage and portfolio but still operates in Excel when it comes to generating reports, which can put the organization into significant risks. With over 29, 304 clients and 29 branches throughout the country and more than $3.9Million Portfolio, CEVI needs a core banking system that has efficient delivery of services and monitoring of its day-to-day transactions. This year, CEVI engaged the services of Kredits, a limited liability company based in Utah, USA, which provides technological solutions specifically to microfinance industry worldwide. Through Kredits, CEVI will have an integrity and fast transmission of data. It will also have an improved tracking of client’s loan and CBU balances, improved performance monitoring in all branches particularly the Outreach, Loan Portfolio PAR, and Poverty Status of Clients and fast generation of reports in the branches. Kredits will also help reduce performing of manual process and paperwork and increase CEVI’s organizational efficiency. Last October 2011, the shift from manual to computerized management Information system in CEVI started. CEVI implemented the migration of data from Excel to Kredits System and at the same time conducted training for all Branch Accountants and other direct users of the new System. The challenge was the data-clean up and the in-placement
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
The CEVI IT Staff commits to provide the best technical assistance to users of the Kredits System to support the expected growth of CEVI Operations. ( L-R Noel Cañete., Joel Gatus, Nur Ivan Moreno, John Jed Ocio)
of additional staff to perform this new function. CEVI, then created a deployment team, that is specialized to train the staff in each branch. CEVI, Kredits Deployment Team said: “With the new system, we have credibility of data and at the same time the reports in the branches and other CEVI areas are now easy to produce”. To date, CEVI rely on the Kredits System in monitoring the Portfolio and tracking of the loan activity. The Kredits System is also helpful in generating timely reports to the Management and Board for decision making.
CEVI Attended an International Communications Learning Event One of the big push of the organization for the year is to ensure that its leaders and staff are cared for, equipped and developed towards effective governance and motivated workforce. CEVI has significantly initiated several activities already to achieve this by conducting capacity building of its employees and participating to relevant training and courses being initiated by CEVI’s affiliated network locally and outside the country. Last September 9-15, 2012, CEVI has sent its delegation to the Regional Communications Conference in Khaolak, Thailand. The CEVI’s Communications Team: Mr. Jonathan Neri, Corporate Communications Officer and Mr. Orlando Ducay Jr., Communications Specialist joined the other World Vision Communicators including the VisionFund Communicators of Cambodia, Indonesia, Sri Lanka, and Mongolia to learn about Social Media Content Management and to build relationships, team spirit and a shared vision for field communications in the Asia Pacific, build key competencies in creative (video, design, writing), community (C4D) and Disaster communications preparedness and response for teams and leaders across the region. VisionFund Communications and Fundraising staff: Dianne Lowther, VisionFund Communications Director. Charlotte Green, Communications Officer, Brad Stave, Marketing Manager. Ketty Lie, Key Relationship Coordinator, have also shared to the VisionFund Microfinance Communications team an integrated storytelling presentation– relating to Design, Fundraising and Communications. The Conference, which took for five days, has successfully brought all communicators across World Vision and VisionFund Networks to work together in amplifying more the Community voice and ensuring that the voice of the children are heard across the partnership. CEVI also received Communications Commitment Award during the conference from VisionFund International.
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
33
OPERATION
34
VFI Film, Genevieve’s Story Whilst walking around a small Island in the Philippines where CEVI works, I was struck by how many people wanted to tell me that they too were CEVI clients. Women frequently stopped me to tell me their story, show me their business and express how grateful they were to have a microfinance loan from our MFI. It was clear how proud they were to be part of an organisation that has had a huge impact on this small island community.
me and the production crew was born out of the kindness they receive regularly from CEVI staff. To many people on the island, CEVI was like family. When I asked Genevieve how our MFI had helped her, she said to me, ‘God Bless CEVI. They have helped my family so much. Without them, I don’t know what we would do.’ To view Genevieve’s story, visit www.visionfund.org Charlotte Green Communications Officer, VisionFund International
I had gone to the Philippines with a production company to make a film that would be a central fundraising tool for VisionFund in the Asia region. Whilst deciding on which country to visit to make the film, I was told to go to the Philippines for two reasons; the landscape is beautiful and the staff at our microfinance institution are extremely helpful and friendly. Communications Officer, Jonathan Neri, helped us to find an inspiring story about a young girl called Genevieve from a small island in Bohol called Nocnocan. After finishing primary school, she was told that there was no money for her to continue her education. When her mother took out a small loan and grew her business, Genevieve returned to school, a path that led her to become a teacher. It was an absolute pleasure to meet and spend time with Genevieve and her family. For four days, they helped us make a film about their lives. Their commitment and willingness to support us during the filming was, I felt, a reflection of their respect and appreciation for CEVI. I have no doubt that the kindness that they showed to COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
The children from Nocnocan Island, CEVI coverage area in Talibon, Bohol, Philippines enjoys watching the crew during the shoot of the VFI film.
35
Genevieve teaches Science and Math at the Monte Cristo Elementary School in Trinidad Bohol. Her story has won bronze at the New York film award. COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
Financial
REPORT OF INDEPENDENT AUDITORS TO THE BOARD OF TRUSTEES AND MEMBERS COMMUNITY ECONOMIC VENTURES, INC. We have audited the accompanying financial statements of Community Economic Ventures, Inc. (a nonstock, nonprofit organization), which comprise the statements of assets, liabilities and fund balance as at September 30, 2012 and 2011, and the statements of income and expenses, statements of changes in fund balance and statements of cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting Standard for Small and Medium-sized Entities (PFRS for SMEs), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. AUDITORS’ RESPONSIBILITY Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. OPINION In our opinion, the financial statements present fairly, in all material respects, the financial position of Community Economic Ventures, Inc. as at September 30, 2012 and 2011, and its financial performance and its cash flows for the years then ended in accordance with PFRS for SMEs. Report on the Supplementary Information Required Under Revenue Regulations (RR) No. 15-2010 and RR No. 19-2011 of the Bureau of Internal Revenue Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information in Note 18 to the basic financial statements is presented for purposes of filing with the Bureau of Internal Revenue and is not a required part of the basic financial statements. Such supplementary information is the responsibility of management. The supplementary information has been subjected to the auditing procedures applied in our audits of the basic financial statements. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. MANABAT SANAGUSTIN & CO., CPAs Dennis I. Ilan Audit Partner December 20, 2012 Makati City, Metro Manila
FINANCIAL
38
BALANCE SHEET AS OF SEPTEMBER 30, 2012
ASSETS Current Assets Cash Receivables - net of allowance for impairment losses and noncurrent portion Prepaid expenses and other current assets Total Current Assets Noncurrent Assets Property and equipment - net Noncurrent portion of receivables Total Noncurrent Assets Total Current and Noncurrent Assets LIABILITIES AND FUND BALANCE Current Liabilities Due to clients Current portion of long-term debts Other current liabilities Total Current Liabilities Noncurrent Liabilities Long-term debts - net of current portion Retirement liability Total Noncurrent Liabilities Total Liabilities Fund Balance Total Liabilities and Fund Balance COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
September 30 2012
September 30 2011
P105,492,529
P72,179,447
171,145,453 2,931,780 279,569,762
202,059,634 2,395,311 276,634,392
12,687,310 354,908 13,042,218 P292,611,980
3,880,560 817,777 4,698,337 P281,332,729
P69,819,064 73,992,870 20,359,776 164,171,710
P73,366,409 60,496,553 15,312,086 149,175,048
51,115,268 8,491,575 59,606,843 223,778,553 68,833,427 P292,611,980
75,528,640 16,288,808 91,817,448 240,992,496 40,340,233 P281,332,729
INCOME STATEMENT YEAR ENDED, SEPTEMBER 30, 2012 INTEREST INCOME Receivables Bank deposits FINANCE COST Long-term debts Due to clients NET INTEREST INCOME IMPAIRMENT LOSSES ON RECEIVABLES NET INTEREST INCOME AFTER IMPAIRMENT LOSSES OTHER INCOME Service fees Gain on reversal of estimated liability Accounts recovered from loan written-off Miscellaneous OTHER EXPENSES Salaries and other benefits Travel and transportation Occupancy and equipment-related expenses Provision Administrative Professional fees Staff and board training-related expenses Communication Taxes and licenses Miscellaneous DEFICIENCY OF INCOME OVER EXPENSES
September 30 2012
September 30 2011
P69,985,635 493,040 70,478,675
P67,943,034 377,171 68,320,205
7,497,653 1,136,505 8,634,158 61,844,517 17,799,513
6,267,578 751,034 7,018,612 61,301,593 15,105,115
44,045,004
46,196,478
22,029,788 2,653,238 1,102,741 1,572,094 27,357,861
28,185,604 2,127,733 382,354 682,745 31,378,436
43,415,717 11,588,860 8,881,412 5,094,450 2,573,720 2,378,562 2,247,562 1,829,124 692,615 1,772,412 80,474,434
52,569,037 11,478,404 6,850,931 4,858,558 2,794,014 846,182 1,812,164 1,670,899 526,343 1,831,519 85,238,051
P9,071,569
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
P7,663,137
39
FINANCIAL
40
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES Deficiency of income over expenses Adjustments for: Impairment losses on receivables Interest expense Provision Depreciation Retirement benefits expense (gain) Loss (gain) on disposal of property and equipment Interest income Deficiency of income over expenses before working capital changes Decrease (increase) in: Receivables Prepaid expenses and other current assets Decrease in other current liabilities Net cash used in operations Interest received Interest paid Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment Proceeds from disposal of transportation equipment Net cash used in investing activities COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
September 30 2012
September 30 2011
(P9,071,569)
(P7,663,137)
17,799,513 8,634,158 5,094,450 3,324,375 (7,797,233
15,105,115 7,018,612 4,858,558 1,808,692 7,131,703
(13,551) (70,478,675)
32,332 (68,320,205)
(52,508,532)
(40,028,330)
12,235,551 (536,469) (612,443) (41,421,893) 71,820,661 (7,692,736) 22,706,032
(28,350,310) (542,996) (2,053,005) (70,974,641) 67,572,781 (5,420,691) (8,822,551)
(12,247,574)
(1,979,892)
130,000 (12,117,574)
(1,979,892)
41
Continuation of Statement of Cash Flows
CASH FLOWS FROM FINANCING ACTIVITIES Grants and donations received during the year Proceeds from debts Increase (decrease) in due to clients Payments of debts Net cash provided by financing activities NET INCREASE IN CASH CASH AT BEGINNING OF YEAR CASH AT END OF YEAR
September 30 2012 10,317,086 46,599,215 (3,547,345) (30,644,332) 22,724,624 33,313,082 72,179,447 P105,492,529
September 30 2011 2,339,593 39,481,986 14,962,329 (22,739,313) 34,044,595 23,242,152 48,937,295 P72,179,447
STATEMENT OF CHANGES IN FUND BALANCE YEAR ENDED SEPTEMBER 30, 2012
Balance at beginning of year As previously reported Effect of transition to PFRS for SMEs on retirement liability As restated Deficiency of income over expenses for the year Grants and donations received during the year Balance at end of year
September 30 2012
September 30 2011
P40,340,233
P52,097,316
40,340,233 (9,071,569) 37,564,763 P68,833,427
(6,433,539) 45,663,777 (7,663,137) 2,339,593 P40,340,233
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
I V E C I I V V E E C C d I f V V d f Network and Partners E E fd I C C I V V E E E C C C I I V V E E C C C I I V V E E C C I I V V E E C C I V V E E C C I V E E C C I V E C C I V E C World Vision Development Foundation World Vision ADP Partners VisionFund International Microfinance Council of the Philippines Alliance of Philippine Partners in Enterprise Development Peoples Credit and Finance Corporation The Mercantile Insurance Co., Inc. Bank of the Philippine Islands Land Bank of the Philippines CEV Credit Cooperative Grameen Foundation BPI Globe BanKO Banco De Oro PlaNet Finance PLANIS Kiva
COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
E E E E C C C C C C I I I I I I I V V V V V V V E E E E E E E C C C C C C C I I I I I I V V V V V V V E E E E E E E C C C C C C C I I I I I I I V V V V V V V E E E E E E C C C C C C C I I I I I I I EV CEV CEV CEV CEV CEV CEV C I I I I I I I V V V V V V V E E E E E E E C C C C C C C I I I I I I V V V V V V V E E E E E E E C C C C C C C I I I I I I V V V V V V E E E E E E E C C C C C C C I I I I I I I V V V V V V V E E E E E E C C C C C C C I I I I I I I EV CEV CEV CEV CEV CEV CEV C I I I I I I I V V V V V V V E E E E E E E C C C C C C C I I I I I I V V V V V V V E E E E E E E C C C C C C C COMMUNITY ECONOMIC VENTURES, INC. | ANNUAL REPORT 2012
Community Economic Ventures, Inc. (CEVI)
Sarabia-Co-Torralba Building 2, Espuelas Street, Tagbilaran City, 6300, Bohol, Philippines Telephone: (038) 412-2356 | 501-0170 | 235-5463 Fax: (038) 412-2356 http://www.cevi.org.ph