Table of Contents 3....A Decade of Transformation Introduction 4....10th Year Anniversary Celebration 5....About CEVI 6....A Message from the President 7....A Message from the Executive Director 8....A Note from VisionFund President and CEO 10...The Board of Directors 12....Fiscal Year 2010 Highlights 14....Endorsing Quote from Finance Manager 15....To Have a Servant’s Heart: The Essence of Customer Service 16....Four CEVI Branches Opened in 2010 17....What is Most Significant Change? 18....CEVI Receives Gold Award 19....Kiva’s Asia-Pacific Conference 20....The 5th Entrepreneurs Congress Agro-fair 2010 21....CEVI Supports MMS Branch Managers’s Training 22....BOT Development Training 23....VFI Leaders Visit CEVI 24....CEVI Coverage Areas 25....CEVI Product Portfolio 26....Child Well-being Outcome 30....Endorsing Quote from Area Manager 31....Clients Success Stories 36....Endorsing Quote from HR Manager 37....Report of Independent Auditors 38....Statements of Assets, Liabilities, and Fund Balance 39....Statements of Income and Expenses 40....Statements of Changes in Fund Balance 41....Statements of Cash Flows 42....Network and Partners
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A DECADE OF TRANSFORMATION Ten years ago, there was one man, who believed that the poor is bankable. So, he started a micro finance organization, which offers small loans to the poor in rural and urban communities. Ernesto Macabenta former Executive Director of Community Economic Ventures Inc. (CEVI) officially established the organization in August 2000. His advocacy on empowering the poor continues to surge in the blood of his former colleagues and to every vein of the current CEVI employees. Under his leadership, the CEVI has achieved sustainability and able to promote transformation in the lives of the people it served. The Road Towards Growth Despite the global financial crises and economic downturn in the past, CEVI’s operations remain steadfast and stable. Based in Bohol, the CEVI continues to grow in size with 26 branches, 234 employees and more than 34,000 clients nationwide.
Indeed, there is a transformation that is going on. Some of our clients have testified how their lives have changed as they grow their business through CEVI. And this transformation won’t be possible without the people who gave their commitments, time and dedicated service, to uphold its beautiful cause. About the Cover The person in the cover page is Marijen Constantino, who is currently in her 5th cycle as a CEVI borrower. Marijen is from the town of Dauis. She is 32 years old, married and has 5 children. To make a living, Marijen owns & operates a fishing business. While not the only means for generating revenue, the main source of income for the business comes from operating a fishing boat to catch and sell assorted fish to the market. Marijen has been engaged in her business for over 4 years. Marijen joined CEVI to gain access to financial services to help improve her living situation and ability to engage in business activities.
10TH YEAR ANNIVERSARY CELEBRATION
During the month of August, the Community Economic Ventures Inc. (CEVI) regional branch offices in Luzon, Visayas and Mindanao held different activities with their Area Managers and Area Accountants to celebrate the CEVI 10th Year Anniversary. At CEVI head office, they celebrated the anniversary by conducting an activity similar to the popular TV show “The Amazing Race�. They were divided into four teams. Each team went to 12 different locations and has performed various tasks until they reached the finish line of the race.
Indeed it was a moment of fun that has been shared together by the CEVI employees. After the race, a program followed, which was attended by the staff coming from CEVI head office, Tagbilaran, Talibon, Trinidad, Ubay and Carmen branches. They offered devotional prayer and thanksgiving for all the blessings that they have received in the past 10 years. CEVI staff members in Mindanao, Luzon, Visayas 2 and Visayas-3 also celebrated the anniversary through holding an outof-town fellowship.
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ABOUT CEVI The Community Economic Ventures, Inc. (CEVI) is a Christian, non-stock, non-profit, non-government organization. It is organized to respond to the needs of micro-entrepreneurs engaged in trading, manufacturing and service-type businesses through provision of financial and technical assistance. Aimed at developing sustainability and alleviating poverty, CEVI provides small businesses a better alternative to access credit, build-up capital and generate savings. CEVI also extends appropriate consultancy services and trainings to its clients. A partner of VisionFund International (VFI) and World Vision Development Foundation (WVDF), CEVI continues to explore methods to increase outreach to people in impoverished regions, including communities that have been financially excluded based on ethnicity and religion.
VISION People Experiencing Fullness of Life.
MISSION 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.
SOCIAL MISSION Serve the economically active poor by providing appropriate & quality microfinance products & services to help their business.
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MESSAGE OF THE PRESIDENT 2010 was a banner year for the Community Economic Ventures, Inc. (CEVI) in terms of organizational effectiveness that redounds to the benefits of its more than 34,000 clients. For this, we are truly grateful to the Lord. The banner year happened because God blessed all our good intentions and actions. To God be the glory! CEVI is a sister organization of World Vision. CEVI and World Vision both seek to be used by God to bring about transformation in the lives of people, so they can live life to its fullest as Jesus promised in John 10:10. For three consecutive years, CEVI has maintained the highest rating in its integration with World Vision. This means the two organizations have become a united and cohesive force, complementing each other’s programs, for the good of the people they serve.
Reaching out to more people and providing more quality services drive the engine of CEVI as a microfinance organization and ignite the passion of its leaders and staff all over the country. It has piloted an Islamic Financing Program hopes to serve more Muslims in the coming years. It has increased its portfolio by 60% and to date has 34,097 borrowers. CEVI has maintained strong partnership with funding networks in and outside of the Philippines. For instance, because of its membership in KIVA and Micro, it was able to generate funds of more than P145 million. CEVI has expanded its networks with BPI Globe, PCFC, PLANIS and LBP. Managing funds is as crucial as obtaining them. As a Christian organization, CEVI puts heavy emphasis on good stewardship of resources entrusted to it. CEVI has maintained high standards for both internal and external audits. Results of these audits have shown that CEVI upholds a high standard of integrity, transparency and accountability. Any organization is only as good as its people. Last year, CEVI implemented a Management Strengthening Program to further equip its managers to perform with excellence. As of now, eight of its managers are pursuing postgraduate studies. Of course, a continuing spiritual strengthening program for all staff is in place, because CEVI believes that good works flow from a deep relationship with God. Indeed, to God be the glory, because He is the true source of CEVI’s accomplishments!
ELNORA BAILEN AVARIENTOS BOT President, CEVI
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MESSAGE OF THE EXECUTIVE DIRECTOR A decade of transformation, this is how I would like to chronicle the impacts, that CEVI has produced, in its provision of financial services to the poor. Indeed, the time has flown by so quickly, and I still remember the days when CEVI has lived through the most challenging moments in its operations. However, despite the difficult periods for CEVI, God’s power is truly evident, as I have seen the dedication and commitment of each and every staff member, who continue to offer their skills and time to achieve sustainability and success. Let me congratulate everyone for achieving another milestone in our operations. As we commence our 10th year anniversary celebration, we will also renew our commitments for community service. Thank you for the 10 years that we are together in preserving the integrity, stewardship and accountability of CEVI. We will continue to advocate for community development, uphold client protection policy and child well being programs. We will also continue to maintain quality operations and reach out more clients to contribute in the transformation of those whom we serve. Special thanks to CGAP for our Gold Award this year, this recognizes CEVI’s integrity and transparency in reporting, and data collection of social performance.
And to our partners that help contribute our success, the World Vision Development Foundation and VisionFund International for their unwavering support and guidance. God Bless us all!
JONAR B. DORADO, CPA CEVI Executive Director
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A Note from VisionFund President & CEO, Scott Brown I am delighted to share highlights and a review of the performance made by CEVI (Community Economic Ventures Inc) over the past year. As an affiliated microfinance institution (MFI) of VisionFund International (VFI), CEVI has played an integral part in providing financial resources to the entrepreneurial poor in the Philippines. One of the notable significant highlights of 2010 has been CEVI’s achievement of the MIX Gold Award for excellence in social performance reporting. Each year, MFIs from around the world are ranked and reviewed by the Microfinance Information Exchange (MIX), a leading business information provider dedicated to strengthening
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the microfinance sector by providing transparent financial and social performance reports. Social performance refers to the commitment to serve the poor with products and services that meet the development needs of them and their families. I am pleased that CEVI has demonstrated excellent poverty measurement through the adoption of the Progress out of Poverty Indicator tool which has allowed them to refocus their target on the poor and design appropriate products and services. Throughout the VisionFund network of 40 affiliated MFIs, 2010 was also a year of exceptional growth. Globally 70,000 additional loans were disbursed and in addition nearly half a million children were positively impacted by our microfinance services. At the close of the fiscal year, VFI’s global portfolio totalled US$341 million, while disbursing over 750,000 loans. CEVI was also a part of this exceptional growth. In 2009 the MFI disbursed over $7.8 million in loans to more than 21,000 borrowers. CEVI’s microfinance efforts impacted over 75,000 children and created or sustained nearly 39,000 jobs. This increase in 2010 demonstrates CEVI’s achievement in impacting over 55,000 jobs and positively improving the lives of 100,000 children. As an affiliated MFI of VFI, CEVI has at its heart the determination and drive to make lasting change in the lives of the entrepreneurial poor; made possible through the power of small loans. Sincerely,
SCOTT BROWN
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THE BOARD OF TRUSTEES Elnora B. Avarientos WVDF Executive Director Elnora Avarientos is the National Director of World Vision Development Foundation in the Philippines. She has extensive years of experience in World Vision and once responsible for giving 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.
Eduardo C. Jimenez Microfinance Consultant of the Bangko Sentral ng Pilipinas Eduardo C. Jimenez is 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 of United Nation (UN) and other UN attached agencies.
Florelyn Plaza Tiu WVI Sponsorship Operations Manager Florelyn Plaza Tiu is the Sponsorship Operations Projects Manager of World Vision International. She supports the Associate Director Sponsorship Operations to enhance the effectiveness and efficiency of field based sponsorship operations with the aim to enhance program impact on children, their communities and donors through improved sponsorship service performance, programming and related work processes.
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Liberty B. Rigor Program Group Manager Liberty Rigor is World Vision’s Program Group Manager since 1995. She is a Certified Public Accountant. Prior to her present position, she has worked as Regional Coordinator, Chief Accountant and Semi-Senior Auditor in World Vision Manila area.
Rommel Peter D. Caringal VFI Regional Director, Asia Pacific Region Rommel Peter Caringal is the VisionFund International Regional Director, in Asia Pacific Region. He provides leadership in the execution of Vision Fund strategies involving 11 countries of Asia Pacific region. He has broad 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.
Remedios N. Geraldes ADP Program Quality Specialist for WVI-Asia Pacific Region Remedios N. Geraldes is an ADP Program Quality Specialist for World Vision international Asia Pacific Region since 2003. She provided support to the improvement of transformational programming through the implementation of Transformational Development Indicators, building capacities for design, monitoring and evaluation of programs and facilitates intentional learning for quality. She has been into different roles and responsibilities prior to her present position in World Vision.
Ardy Roberto Chairman Salt and Light Foundation Ardy Roberto aside from being an author, he is also a producer of international award-winning seminar. He is a co-founder and CEO of Salt & Light Ventures, Inc. Mr. Roberto have won many local and international awards for his seminars.
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FISCAL YEAR 2010 HIGHLIGHTS! The year 2010 has posed a great challenge in achieving both our organizational sustainability and stability. However, in light with economic crisis, which stunned our local micro finance industry, we continue to grow and accomplish many things. CEVI’s Mission and Vision statement was enhanced. We also developed our strategic plan, which includes Values and Integration, Impact and Inclusiveness, Sustainability and Systems, Institution and Industry Building, Organizational Governance and Staff Well-being, Network and Resources.
VALUES AND INTEGRATION CEVI has partnered with different churches to integrate spiritual nurturing of clients in its operations. We piloted the Islamic finance product in Mindanao as we expand our areas in the southern region.
During the third quarter of the fiscal year, CEVI completed the module for the Christian Witness Initiative Program entitled “A Marketplace Spirituality Curriculum”. This will be utilized in the conduct of Bible Study in all CEVI Cluster Associations.
CEVI has provided loans to 34,097 families during the end of fiscal year 2010. It has covered 17,286 families within ADP, which represent 51% of its total outreach.
56% of the total number of WVDF ADPs were already covered by CEVI. This year, three new ADPs were covered namely, DIADEM in Dulag Leyte, ADP Surigao Sur in Surigao and North East Bohol in Ubay Bohol.
CEVI created a child protection policy, which was being disseminated and implemented by all CEVI staff.
For two consecutive years, CEVI achieved an “A” rating in integration with World Vision.
IMPACT AND INCLUSIVENESS CEVI conducted a Focus Group Discussion (FGD) to clients in order to seek feedbacks on how to improve its products and services.
The average loan disbursed by CEVI per client is Php 9,047. This means that CEVI is catering its services to people with less income.
100% of CEVI clients are enrolled in Micro-insurance program.
CEVI conducted a Social Performance Assessment on Child WellBeing Outcomes last October 2010. Data were gathered through FGD using the CERISE SPI tool.
The Progress out of Poverty Index (PPI) tool has been implemented by CEVI since March 2006 in replacement of Means Test. This tool is used to determine if an MFI has reached its target clients.
40% of CEVI’s new clients are below the national poverty line.
The Client Protection Policy was enhanced and aligned along with CEVI’s basic operating principles and existing employees code of conduct. It was implemented last July 1, 2009. The policy was designed to ensure that clients and partners are treated well with dignity and respect while providing them highest quality products and services.
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SUSTAINABILITY AND SYSTEM Portfolio and Number of Borrowers increased. This year, CEVI increased its portfolio to PhP187 Million, a 60% boost compared to last year. The number of borrowers also increased by 30%.
ORGANIZATIONAL GOVERNANCE AND STAFF WELL BEING
From loan disbursed of Php 371 Million of last year, CEVI increased its loan disbursed to Php 470 Million this year because of expansion of new branches.
IPAS and Sun System were already used in recording and consolidating reports.
CEVI’s latest external audit result from KPMG Philippines shows “ Unqualified Opinion”. This result reflects that CEVI has maintained its integrity, stewardship and accountability as a Christian Microfinance organization.
INSTITUTION AND INDUSTRY BUILDING CEVI is an active member of the Philippines Social Performance Management Peer Learning Community .
CEVI is a member of Micro-finance Council of the Philippines (MCPI) since 2002. This year, CEVI was elected as a Board and Treasurer of the MCPI. The MCPI is a network of 44 institutions working towards the rapid development of the micro finance industry in the Philippines.
CEVI has seven competent Board Of Trustees coming from different sectors and expertise in Banking and Finance, Economics, Microfinance, Human Resource, Organizational Development, Program and Evaluation, Marketing, and Governance.
Leadership recognized by VFI. CEVI Executive Director was awarded as one of the excellent performing CEOs in the VFI network. CEVI was invited to the World Vision International Triennial Council in Kuala Lumpur, Malaysia and was requested to be one of the resource persons on the breakout session about Social Performance. Also, VisionFund International CEO, Scott Brown and VFI BOT Chairman, Dick Richards visited CEVI and affirmed its efforts to strengthen its operations, improve social performance and integration with WVDF.
Management Strengthening Program implemented. A total of eight staff has enrolled a postgraduate study for staff development and well-being.
CEVI maintains a green rating in its performance in the VFI Global Standard for its effectiveness in providing financial and social services to the community. CEVI is also within satisfactory in the PESO rating.
CEVI launched its official website. Please visit us at www.cevi.org.ph
NETWORK AND RESOURCES Partnerships strengthened. CEVI continues to partner with KIVA , World Vision ADPs, BPI Globe, PCFC, PLANIS, Mercantile, and Grameen Foundation.
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“...we were able to live through the day-to-day challenges�
I started working in CEVI in 1999, a year before it was officially registered to the Securities and Exchange Commission (SEC) in the Philippines. In that year, we were only 15, and we borrowed some supplies from World Vision ADP in doing our transactions with the clients. Indeed, God has abundantly blessed our organization, because in 10 years, we were able to live through the day-to-day challenges in our operations. We have opened 26 branches in the country and employed additional workforce. CEVI has grown really fast. This is also because of hard work, commitment and dedicated service of its staff.
JULIET R. ALMEDILLA CEVI Finance Manager
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CEVI employees and Boris Joaquin, WVDF Director of Publics in Ministry during Exceeding Customers’ Expectations Seminar
To Have a Servant’s Heart: The Essence of Customer Service When you’re in the business of microfinance, you’re in the business of relationship building. Microfinance institutions (MFIs) must rely on a vast network of relationships between stakeholders – clients, lenders, donors, employees, etc – in order to provide financial services to the poor and fulfill their other objectives.
elaborated on these values, explaining to the staff that when they deal with clients, they are:
Pastor Boris Joaquin, World Vision’s Director of Publics in Ministry, shared his insight on how to exceed customers’ expectations with Community Economic Ventures, Inc (CEVI) during an intensive workshop. Forty-seven CEVI staff members, including branch managers, area managers, and top management, met at JJ’s Seafood in Tagbilaran City to discuss Customer Service 101.
2. Using God’s resources. They therefore need to become good stewards of His resources and be responsible when managing them.
CEVI is distinct from other microfinance institutions in that it is a Christian organization – prayer, stewardship, and servant-hood are core values that staff members uphold. Pastor Boris
1. Dealing with the image of God. Clients are created by God and therefore are extensions of God. By serving them well, the staff are serving God.
3. Serving as ambassadors of Christ. Jesus Christ is a king who died for his people, so at a minimum the staff should give good customer service to their people. These 3 principles set the tone for the duration of the training, and as we discussed the importance of transformational relationships (as opposed to transactional relationships) in
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building customer loyalty, we were inspired by Biblical references. The mood was light, filled with laughter, jokes (which Filipinos are very fond of!), and stories – the staff eager to learn about the ‘11 Powerful Keys to Excellent Customer Service.’ Through role playing and the sharing of experiences, we gained additional knowledge about how to cope with challenging customers. As the day came to an end, we reflected on the timeliness of the customer service training. One manager shared his experience of losing a customer, “sakit kaayo, it’s painful!” he said. Referencing a commercial in which Manny Pacquiao (Filipino boxing champion and politician) promotes a pain relieving product, CEVI’s Executive Director Jonar Dorado followed with, “After that painful experience comes the process of recovery and healing, the process of improving. There is a change going on.” There is a change going on in CEVI’s approach to customer service and although during my borrower visits in the town of Baclayon I received nothing but positive feedback from clients, CEVI is making strides to raise the bar in terms of customer satisfaction. by: Kaajal Laungani, Kiva Fellow
Four CEVI Branches Opened in 2010 In the midst of economic turmoil in the country, inflation and other hurdles of progress, CEVI’s dedication in helping the poor has never falter. True to its goals, the CEVI program has the potential to empower the economically challenged men and women. With a decade of experience on microfinance services, the CEVI operations continue to grow in size. For 2010, four new branches of CEVI were launched. They are located in Isulan, South Cotabato, Isabel Leyte, Barili Cebu, and Nabunturan, Compostela Valley. Mr. Edwin Crescencio, CEVI Operations Manager shared the organization’s plans for the fiscal year 2011. He said that the direction of CEVI is to open more branches in 2011. The locations are: Cagayan, Tacloban, and in Mindanao. “We have been doing our best to achieve our goals”, he said. “ And we are already preparing to do more outreach for next year”, he added. The addition of four branches not only benefited the clients but also provided employment to our fellowmen. CEVI currently operates 26 branches across the Philippines.
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What is Most Significant Change?
Taken during MSC workshop at CEVI Head Office Developed by Rick Davies and Jess Dart, the Most Significant Change (MSC) technique is simply story telling. It involves contemplating at the past and reflecting on the changes that a person has experienced, and sharing the most significant of these changes to a group.
were able to develop their leadership skills and became confident in leading. They became prayerful and able to reflect the Word of God.
Last October 22, 2010, the CEVI conducted the Most Significant Change (MSC) workshop among its employees at the CEVI head office to gather and document stories of transformation.
After the death of my father, my relationship with God has broken. I have this disappointment toGod because my constant prayer unto Him was to keep my family healthy.
During MSC workshops, the CEVI employees were asked to reflect on the changes that they have experienced after they joined the organization and respond to the MSC question.
When I joined CEVI, my intention was towork only so that I could feed my stomach & my family. I never go to church anymore and I never prayed even though I came from a very religious school. I neglected God.
In small groups, with 4 to 5 members per group, CEVI staff shared their stories and the most significant changes in their lives. The MSC results have revealed that most CEVI staff recognize God’s presence in their lives, some has acquired deepening faith/relationship with God, became close to their families, developed the habit of reading and reflecting on the Bible while others were able to relate with their co-employee. Some also said that they
(SELECTED STORY DURING MSC Session) Story of Ms. Hyacinth Revilles, CEVI Staff.
Then Pre-Selection Training came. I considered that activity a very important thing because it brought me back to the arms of God. As we were contemplating on the Bible verses, I realized how foolish I was in questioning God’s plans for my life and family. I can truly say that, through CEVI, my relationship with God has restored. I understand now that what happened to my father was His purpose
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and plan for me to grow and be more hardworking. I was guilty and I really asked forgiveness for my abandonment of His plans. I did not allow Him to control everything in me. Now that I’m with CEVI, I became eager to know Him more. I even know how to pray loud and read the Bible. When I came to know God, I changed my views in life. Whenever I have a problem with my family, I know that God is in control. I learned to continue trusting His ways and keep holding his promise to me, that at whatever point of my life “He will never leave me nor forsake me”. I know that God has prepared better things for me. I thank God that I became part of this beautiful family of CEVI.
CEVI Receives Gold Award CEVI received a Gold Award from Consultative Group to Assist the Poor (CGAP) for 2010 Social Performance Reporting to MIX last July 29, 2010 during the Beyond Micro-Credit Conference at Apo View Hotel, Davao City. This is a recognition given to MFIs who provide reports on a set of social performance monitoring indicators that have been developed and refined through the Social Performance Task Force.
The Social Performance Reporting Awards, established in 2009 by CGAP together with the Ford Foundation, the Michael & Susan Dell Foundation, and the Social Performance Task Force, and administered by the Microfinance Information Exchange (the MIX). It provides a yardstick for those wanting to assess an MFI’s commitment not only to showing progress in helping their clients, but also to supporting staff, and protecting the environment. There are three levels of recognition: CERTIFICATE: awarded to MFIs that complete the Social Performance Reporting Report SILVER AWARD: awarded to MFIs that complete the report, and also provide full data on poverty measurement GOLD AWARD: awarded to MFIs that complete the report, provide data on poverty measurement, and have a social rating that includes auditing of the poverty tool used by the MFI through which CEVI got the highest level of recognition. For two consecutive years, CEVI was recognized by CGAP for its integrity and transparency in reporting and data collection of social performance. CEVI received a Silver Award in 2009 and a Gold award in 2010.
Shella Gumaod Dellosa, CEVI Social Performance Officer received the award during Beyond MicroCredit Conference in Davao City.
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L-R, MorrisonHendrik Riwu Kore, Ruby Jane Alcantara, Shella Dellosa, Kaajal Laungani, Florideck Pajarillo, Orlando Ducay Jr. during Asia-Pacific Conference in Manila.
Kiva’s Asia-Pacific Conference – Social Performance, Poverty Assessment More than 100 people in the microfinance sector from over 40 different organizations, from Mongolia, Cambodia, Indonesia and the Philippines, gathered at Kiva’s AsiaPacific Conference in Manila. The weeklong event marked the first time that many of Kiva’s partners from all over Asia, as well as other microfinance organizations, were able to come together in one place. Though many issues were discussed, the conference was devoted largely to the topic of social performance. Measuring social performance has become an increasingly important topic in the microfinance sector. Headlines on high interest rates and over-indebtedness question how and if microfinance institutions (MFIs) are looking out for the best interest of their clients. As with most Kiva lenders, they believe in microfinance as a poverty alleviation tool. A tool to help the communities it serves by lending money to entrepreneurs to grow their businesses, and improve their incomes. They hope that their money is going to MFIs who are looking out for the borrowers, not profiting off their backs. But how can they be sure? How do they know an MFI is achieving its social goals? And as an MFI, how can you monitor your social performance?
The conference, sponsored by Kiva, the Microfinance Council of the Philippines and SPACE, focused on how MFIs can use different tools to ensure they are living up to their social mission. The two tools discussed were CERISE (Comité d’Echanges de Réflexion et d’Information sur les Systèmes d’Epargne-crédit) SPI (social performance indicators), and the Client Poverty Scorecard. In one of the sessions, Ms. Shella G. Dellosa, CEVIs Social Performance Management Officer, presented the CEVIs processes in using the PPI tool and responded to the queries of other MFIs who participated the conference. The Progress out of Poverty Index (PPI) tool has been implemented by CEVI since March 2006 in replacement of Means Test. Kiva has requested all field partners to complete the CERISE SPI Assessment by the end of the year. Though the majority of Kiva’s field partners see value in social performance management (SPM) – and many have already taken strides to incorporate social performance into their daily operations.
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With SPM, an MFI can ultimately hone in on what is important to their clients and better serve the needs of target clients more effectively to build customer satisfaction and loyalty. This can also lead to increased competition in the microfinance sector. In the meantime, Asia appears to be a regional leader in social performance measurement. Several of the MFIs at the conference have hired staff specifically to manage their social performance, and a few organizations have been implementing these tools in recent years. (1) CERISE SPI is a tool that “assesses the social performance of MFIs by evaluating their intents and actions.” Rather than evaluating the impact an MFI has on its borrowers, it measures whether the institution has the policies and processes in place to attain its social goals. The CERISE questionnaire focuses on four themes: Targeting & Outreach, Products & Services, Benefits to Clients and Social Responsibility. It asks specific questions including: Does the MFI serve clients in rural areas? Does the MFI allow local branches to adapt their products and services to clients’ needs? And does the MFI have a formal policy on how clients benefit from the profits generated by the MFI? Together these questions (and more) help create a scorecard on the MFI’s social performance. And the social performance snapshot that the tool generates can help an institution set new goals. (2) The Client Poverty Scorecard is a version of the more commonly used PPI (Progress out of Poverty Index – Grameen) or PAT (Poverty Assessment Tool – USAID), which can be used to target services and measure poverty alleviation over time by an MFI. It allows MFIs to continually or annually rank a borrower’s poverty level based on key indicators. The scorecard focuses on five metrics: Housing, Health & Nutrition, Education, Utilities and Assets. These metrics can be further tailored to a specific group/region by inserting a standardized coefficient to allow for better reporting on individual poverty levels. A
scorecard is best used to measure poverty improvement as it is simple, inexpensive, transparent, objective and accurate. Unlike CERISE SPI, this scorecard does not rate the policies of the MFI but provides a tool to directly measure its social impact on its borrowers.
The 5th Entrepreneurs Congress Agro-fair 2010 CEVI hosted the 5th Entrepreneurs Congress Agro-fair in Alcantara, Cebu last August 13, 2010. Five other municipalities namely, Dumanjug, Ronda, Moalboal, Badian, and Alegria took part in the activities and lectures. Indeed, it was an opportunity of meeting other entrepreneurs and knowing their products well. CEVI clients also built respective booths adorned with agricultural products. There were also prizes for the best booths. Mr. Gaudioso Calibugan, Quality Integration Officer of CEVI shared his experience during the congress. He said that, “ It is good that we were able to showcase the creativity of our clients. I am very pleased that livelihood trainings were included in the program. I am looking forward for CEVI to conduct another activity like this in the future.” On the other hand, Mr. Zeno Paquibot, Area Manager of Visayas 2 also expressed his modest appreciation to the organizers. “I truly appreciate CEVI Moalboal staff for handling everything well for this activity. This is huge activity and it’s humbling to know that we did it successfully”, he said. The participants learned a lot as they were being discussed about Hog Raising, Business Marketing Strategies, Food Processing, and Organic Farming. The speakers of the activity were from TESDA, Feed Mill Corporation, and World Vision.
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CEVI Supports MMS Branch Manager’s Training With the need of leadership training in every organization for career development, the Mitra Masyarakat Sejahtera (MMS) has vowed to intensify its effort to educate and equip their people on manager’s training. As one of its action plans, MMS sponsored the three-day Branch Manager’s Training for their supervisors and managers on July 1416, 2010 at MMS Office in Jakarta, Indonesia. A microfinance subsidiary of World Vision Indonesia, MMS is part of VFI’s development assistance effort in providing financial help for the small entrepreneurs well being.
Mr. Floredick Pajarillo, VFI Business Development Manager, led the training in discussing the Branch Management and Delinquency Management with the help of CEVI Human Resource Manager, Ms. Madeline Guibao. “Through this training, I was able to learn the dynamics of MMS that can also be replicated here in CEVI,” Guibao said. The 14 participants were trained to demonstrate improved management functions and apply innovative management techniques to help nurture and develop staff competencies.
CEVI and VFI Indonesia Joint Board Development Training VisionFund International (VFI), the microfinance subsidiary of World Vision has conducted Board Development Training for Community Economic Ventures Inc. and VFI Indonesia last July 1-2, 2010 at the Meralco Management Leadership Development Center (MMLDC), in Antipolo City, Philippines. The training aimed to develop the effectiveness of the Board in the VFI affiliated MFIs as they perform their crucial role in the organization.
Jemimah Muturi, VisionFund International Director of Corporate Governance was the resource person of the training. This is the first time that the VFI has conducted joint Board Development Training for CEVI and VFI Indonesia. The Board has appreciated the training and believed that the knowledge that they gained can usefully supplement its ability for better governance in the organization.
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VFI Leaders, Visit CEVI VisionFund International (VFI) CEO and President, Scott Brown, VFI Board Chairman, Dick Richards, and VFI Board Simon Mckeon were on a brief visit to the Philippines and to CEVI last August 2010. The CEVI Executive Director, Jonar. B. Dorado warmly welcomed the three VFI leaders, and had meaningful conversation with them about CEVI and its operational highlights. They later toured and visited some of the CEVI borrowers to know about how their businesses affecting their lives and family. They also have the opportunity to meet the senior management of the World Vision Philippines and the officers of the ASIAN Development Bank. “ Indeed it is a privilege to be visited by three of the pillars of VFI. This truly shows of our strong integration with them as well as the depth of our partnership�, Mr. Dorado said.
The visit has concluded successfully. It underscores the strength and breadth of the relationship of CEVI, World Vision and VFI.
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CEVI Currently Operates 26 Branches Across the Philippines
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CEVI PRODUCT PORTFOLIO
CEVI offers four loan products catering to economically active poor namely Yaman, CROP, BABE and Asenso loan. Yaman loan product that targets micro-entrepreneurs involved in trading and commerce has covered 46.78% of the portfolio that is offered in almost all of the branches nationwide. Crop Loan on the other hand is second, 42.86% that targets microentrepreneurs involved in farming. The Asenso Loan, which targets the small and medium scale entrepreneurs, existing or new clients with greater need of capitalization in their businesses is 7.73% in terms of portfolio. While BABE Loan in Bais, Estancia, and Sara Ilo-ilo that targets micro-entrepreneurs involved in hog raising is 2.63%.
SOCIAL PERFORMANCE Women Outreached
Children Impacted
89%
102,535
Job Created and Sustained
55,000
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Child Well-being Outcome When Gerald Job Tumale’s Mother became a client of Community Economic Ventures, Inc (CEV), he began to notice a change in his family life. “When my mother joined CEV, I noticed more encouragement from her, especially when we were dealing with others. She urged us to be more ambitious in life and to be more active in the community. In my personal life, I would study, but learned to put God first in every area of my life,” he says. “It is okay for me that she has taken a loan from CEV because my family can provide for their needs. We have seen improvements in our living with clothing and food.” One of the reasons why the Tumale Family transferred from Sierra Bullones to Tagbilaran was so their children could get better schooling. The move was difficult, especially since they had to slowly build their home from a small tent, adding posts one at a time and paying for their lot on installments. Though the
family has had financial difficulty, the eldest son, Gerald says, “I knew God would allow me to go to college – I didn’t lose hope even though I knew my family might not be able to afford. My plan was that if we can’t afford it, I will apply for scholarships. If the scholarships didn’t work out, I planned to be a striver.” Gerald’s positive attitude and perseverance paid off when he was awarded a full scholarship to Bohol Island State University where he currently is an honor student. This past September, Gerald Job Tumale, 21 years, was invited to compete in an engineering competition held at the Taiwan National Center for Research on Earthquake Engineering (NCREE). Gerald, a civil engineering student, expressed his enthusiasm saying, “I felt happy and excited to have the opportunity to be there for the competition. I was also excited and nervous to be traveling alone for the first time.” Though Gerald was proud to be representing his school and his country in this competition, he grew a bit concerned when he learned that his university had insufficient funds to support his travel. Therefore, he began proactively seeking support from NGOs and other organizations. Gerald’s Mother, Mrs. Tumale, sought aid for her son from CEV. When they received word that CEV would be able to provide some assistance, “we felt happy and thankful to God. God gave us a solution,” says Gerald. He was glad he would be able to cover the expenses for competition. While in Taiwan for the competition, Gerald describes an exciting atmosphere where many contestants and coaches
Philippine Team during IDEERS Competition
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were focused on engineering the best model buildings for the shake table contests. For 6 ½ hours, teams worked to model buildings out of small wood pieces, glue, rubber bands and paper. The Philippines team ranked 12th place out of 42, a huge victory indeed! Traveling to Taiwan for the international earthquake engineering competition was truly an eye-opening experience for Gerald and his peers. In Gerald’s words, “After the competition I felt happy and self-fulfilled. I really enjoyed learning about another culture, meeting other people, and was proud to represent my country.” Competing in the IDEERS (Introducing and Demonstrating Earthquake Engineering Research in Schools) competition was a huge accomplishment, though Gerald has much bigger dreams and aspirations in mind. After he graduates from his course, he hopes to put his degree into practice so he can help his family. Gerald also has a big heart and wants to help the ministry and be involved in church. He wants to set a good example and help other people in the community. As the interview came to a close, Gerald left us with a few last words: “My advice to other students and children is to believe in God and grab opportunities that come your way. Keep praying to God and leave everything to Him. Strive for your dreams and work toward your plans. Thanks to CEV and other funding agencies that helped me to go to Taiwan. Thanks to God. Thanks to the schools who gave me and students the chance to be involved in international competitions.” Gerald is an honor student at the Bohol Island State University. He will be graduating in March 2011.
This is our interview with Gerald regarding his competition, family, and the support he received from CEVI. Can you tell me a bit about the competition that you attended? The competition called “Introducing and Demonstrating Earthquake Engineering Research in Schools (IDEERS)” took place at the Taiwan National Center for Research on Earthquake Engineering (NCREE) from September 24-26, 2010. Gerald had undergone several elimination rounds at my university, and after passing those rounds he was selected to compete against 42 contestants in this international competition. This was the first big competition he has attended so it was very exciting. How did you feel when you were invited to this competition? He felt happy, excited and grateful for the opportunity to attend the competition. It was also his first time traveling outside of the Philippines so he was excited for that, yet nervous. Did you have any concerns about not being able to attend the competition? Yes, the financial support from the school was insufficient so we had to make solicitations to NGOs and other organizations. What was your response when CEVI offered financial assistance? “I was very happy and thankful to God. God gave us a solution. At first it was a problem for me because my family could not cover the expenses.”
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Can you describe your experience at the competition? During the competition we were very excited, especially when we had to submit our entry (?). It was exciting to see the other contestants and coaches. We were given 6.5 hours to make our models using thin pieces of wood, glue and rubber bands. Then they collected the miniatures and placed them on a shaking table, testing our structure’s ability to stay intact at different (seismic??) levels. We placed 12th out of 42 entries. How do you think your brother’s feel that you were able to compete? I think my brothers (7 and 17) are proud of me because I was chosen to represent my country (in this competition).” What stands out to you most about the experience? After the competition, I felt very happy. Attending the competition was a self-fulfilling experience – I was able to learn about a new culture, meet
people from many different countries, and proudly represented my country in this international competition. Now switching gears, how do you feel about your mother taking loans from CEVI? It is okay for me because my parents can provide for the needs of our family. The weekly payments are manageable also. Have you observed any changes in the way your mother manages her business after she joined CEVI? I have noticed that our family has become better at budgeting since the payments to CEVI are weekly. The loan from CEVI has been especially helpful during needy times. Additionally, we have developed a good relationship with the other borrowers and their families. It has been a good social improvement for us and brought our community closer.
Gerald and family at CEVI Head Office
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Have you observed changes in your household? Yes, from the return in profits we have seen improvements in our living situation, also in terms of food and clothing. Mom: I can better meet the needs of my family now. I was able to start my food processing business and sell lots of snacks like banana chips, sampaloc (tamarind) candy, and other delicacies like kamote (sweet potato) candy. I can provide better food to my family and also fund their education and set money aside for their allowance. Do you and your siblings help your mother with her business? Yes, on Saturdays we help her make food products. What are your hopes and dreams/ aspirations? I will be graduating from my course in March and I would like to get a job to help my family. In terms of my spiritual life, I want to help the ministry and help in church. I want to help my brothers and other people. How has CEVI impacted you (i.e. values)? When my Mom joined CEVI I had more encouragement, especially when dealing with others in the community. I am living more ambitiously. In my personal life, I really focus on my studies but I put God first in every aspect of my life. If there is any advice you can give to young people growing up in the Philippines, what would it be? I would tell them to keep a strong faith in God and to grab any opportunities. Keep praying to God and leave it to Him.
Do you have anything else you would like to share? I would like to thank CEVI and the other funding agencies that helped me to go to Taiwan. Their support really helped with financial matters. I would like to definitely thank God and to thank my school for the opportunity for myself and other students to get involved in the international competition. I knew God would allow me to go to college – I didn’t lose hope even though I knew my family might not be able to afford. My plan was that if we can’t afford it, I will apply for scholarships. If the scholarships didn’t work out, I planned to be a striver. More about Gerald and his family: The family originally lived in Sierra Bullones (80 km from Tagbilaran) and after high school, they transferred to Tagbilaran so that Gerald could pursue his education at the university (it’s one of the reasons they transferred). It was expensive to transfer but worth it because he received a full scholarship to the university. Gerald also received a scholarship for the University of the Philippines but unfortunately, the family was unable to afford the Php 10,000 to cover his expenses. It was difficult with one son in college and one son in high school so Mrs. Tumale began to deliver food to clients. Her husband, a carpenter, began to build their small house – a one-room tent. They slowly began adding posts and slowly were able to pay for the lot on installments. In 2007, Mrs. Tumale began attending seminars with the International Care Ministry of the Philippines, Inc. (ICMPI) and eventually began to teach pre-school.
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“CEVI has brought out the best in me...�
CEVI is not just a micro-finance that caters the financial and spiritual needs of its clients and staff. It is a ministry with holistic vision for the people, which enable them to experience fullness of life. It was 2003 of March when I started joining in this organization. From then on, I have learned so much and acquired many skills. CEVI has brought out the best in me not only as an employee but as a leader as well. CEVI will help you develop your confidence to lead and discover your strengths in doing your job.
GLENN C. ANCIANO CEVI Area Manager Visayas 1
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CLIENTS SUCCESS STORIES
Food and Education Maria Serion is a mother of 9 children who always believes that “Education is our key to be successful in life.” She is a resident of Bulubundukin, Pulot Center Sofronio, Española, Palawan and has been a CEVI client for almost 4 years. At the age of 55, she never stopped aiming and dreaming for the future of her children. In fact, most of her children have finished college. Three of her children are in college, two of which will graduate this March, and the other one is still in second year. With the help of her husband, Jovert Serion who is working as a plumber, they are able to cover up for the school expenses of their children. Maria Serion has been managing a small restaurant (Carenderia) since 1980. She saw a big opportunity to cater the needs of the employees of her town’s municipal hall, so she decided to put up another restaurant in 1998 within the area. Her child, who is married, manages her other restaurant situated in her house. Her family also has boarding house with 15 students as occupant. Currently in 9 th cycle, Maria availed a loan amount of PhP 25, 000.00. In 2007, she received
her first loan from CEVI amounting to PhP 4,000. The loan was invested to her restaurant. Her small restaurant has daily sales of P 3,000.00 with revenue of P 1,000.00. This has helped her repay her weekly due of Php 1, 511.00 and buy the educational needs of her children. “ The loan I borrowed did not only help my business but most importantly it greatly assisted the education of my 3 college students,” said Maria Serion. She is a Chairman of their Cluster Association and of the Federation of Officers in 17-cluster associations in Española. As a leader she never forgets to encourage her members to be responsible borrowers. CEVI molded her to become a good leader. She does her best to set a good example to her members and always lives her life full of inspiration. Maria Serion is just one of the many CEVI’s clients, who are dedicated and committed to their family. She dreamed of better future for her children and believed that her dreams will come true if it is accompanied with perseverance, hard work and above all, trust in God.
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Living By the Sea Nancy Rico is an entrepreneur that lives in the province of Bohol, particularly in one of the islands of Talibon, the Nocnocan Island. She is now 33 years old and married to Gino Rico, a 34-year old fisherman. They were blessed with two kids named Francis Robert and Gino Jr., ages 5 and 1 year old respectively. Together they support each other in sustaining their every day living.
other fishing supplies. They used the boat to catch fish, which gives her family additional income. Her husband also does “spear fishing” at the depth of the seas of Talibon. Through this, they are able to sell big fishes in Cebu. At the ocean floor her husband also collects sea cucumbers and different kinds of shells, which they sold for exports. To date, they have acquired three fishing boats.
Nancy started her entrepreneurial journey with CEVI on year 2002. She needed a capital of 15,000 Php to put up a variety store at her home. The amount was raised through her first loan in CEVI of 4,000 Php and her husband’s earnings from fishing shouldered the remaining. Nancy kept on reloaning from CEVI and because she’s a good borrower, she was able to loan bigger amounts. Currently she has a loan of 26,000 Php.
When asked how she managed her businesses and what challenges she met, she said that, she has a storekeeper at her retail store who helps her entertain the customers. She also has difficulty in managing her workers especially when they keep borrowing money from her.
She was not contented with her retail store. She bought a fishing boat that cost about 100,000 Php including the engine, air compressor, and
Nancy is happy that her children are healthy and her businesses are doing well. Her only hope for the future is to put up a wholesale business, which offers more supplies at an affordable cost. In this way, she could provide daily supplies not only for her neighbors but to her family as well.
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Water is Everything Water is life, without it, we will not survive. While most of us have enjoyed the abundance of water in our homes, there are places in the world where people have poor access of potable water. Camdas, Elnonok Banga, South Cotabato in Mindanao is an upland area, which is blessed with diverse vegetation. Farmers have grown rice, corn, bananas, coconut and rubber tree to support their families. They also grow cows, goats, carabao to be able to supplement their income. The community lacks resources of potable water. Emelina Diaz, 50 years old farmer has utilized her two succeeding loans from CEVI to build a water tank. Her loan of 150,000PhP has provided clean drinking water to more than 50 households in her community including the local school and barangay center. From her business, she earns enough income to buy the family basic needs. She has four children. Three of which have graduated in college and the other one is still fourth year high school. She plans to fund the education of her youngest child with the additional income that the loan will provide. In the future, she hopes to continue expanding her business and to take advantage of other income opportunities. “I will not thirst and I will ensure that my family will have enough clean water to drink and use in performing the daily chores in our home”, she said. “ Water is important to us and without clean water, our families would die and would go thirsty”, she added. In addition to water, Emelina also started a farm, which has a size of eight hectare. She grows cows, goats, corn and coconuts. With this, she employed four farmers, a native called “T’boli” in South Cotabato to work in her farm. By doing this, she was not only expanding her business but also able to generate employment. “ I love doing what I do now. I manage a business and at the same time help my fellow farmers have their own livelihood. This shows of my purpose, which is to help every families in our community and be able support my family”.
To date, her businesses have helped her family earned a better income. She has bought additional lands, planted more crops, provided the needs of her family and created livelihood to the community.
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The Benefit of Savings “To keep my business working and growing, I need to set aside money for more savings”, this is what Evangeline emphasized as one of the ways on how she was able to manage all her businesses. She runs a general store, Internet café, and a videoke machine. These businesses didn’t come at once, it all started with a little capital, a little hard work, and a little courage to venture in doing business transactions. Her full name is Evangeline Lambo. She is 33 years old and has been married to Leonelle Lambo since 2001. They were blessed with three children; Leonelle Jr., Ivan Lee, and Kathryn Joyce. Their ages are 10, 8, and 2 respectively. Her eldest boy who consistently receives first honors in school makes her a proud mother. Her two kids, who are in elementary grade dreamed of becoming a lawyer and a doctor someday. Evangeline finished a degree in Banking and Finance. Right after her graduation in 2001, she got married. They settled in the town of Alcantara, Cebu. At that time the couple was very hesitant to enter into any kind of business due to a lack of experience. But they need to have a livelihood in order to sustain their family. With a capital of 10,000 Php, which Evangeline asked from her parents, they were able to start a general store. Later that year, she heard about CEVI and joined other entrepreneurs avail of its financial service to grow their business. In her succeeding loans, she has bought two Videoke machines that cost about 40,000 Php each as her additional source of income. Then she put up an Internet Café
that has 13 computers available for customers, who wish to surf the Internet and play games. Because she paid her obligations well in CEVI, she was able to request a loan amounting to 150,000 Php, which she used in constructing a building. For ten years that she partnered with CEVI, she can proudly say that her business has grown. Aside from providing financial assistance, CEVI also taught her to save money and be a responsible borrower. Everyday, she kept 400 Php from her business so that when its due time for payment, she has available cash for it. Whenever she has income, she set aside a portion of it to generate savings. Evangeline shared her experiences on how she has met difficulties and was able to face it. “When you are rising, people will try to pull you down. When you have a unique idea in business and it works, people will copy it and compete with you. When you’re succeeding, not all people are celebrating with you, some get jealous”. There was a time when she started to construct a building and someone was stopping it. Her Videoke machines took a rest for a while because people around her neighborhood complained. Despite all these challenges, she has hope that everything will be fine. And what really concerns her now is the health of her only daughter, who is 2 years old and very prone to sickness. She is saving more money so that she can support the needs of her daughter.
Evangeline’s dream is to put up a big business place in towns of Cebu. She is very dedicated to have more savings for the education of her children. She wants them to achieve what they’ve dreamed for in the future.
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Integrity and Trust Robella Antigo lives in a small town of Sta. Josefa Agusan del Sur. She owns a farm and a drugstore in her local community. She has two children, Steff Dyan, 3rd year high school student and Prince Robin, grade five pupil. Both of her children desire to become a Pharmacist or a Doctor someday. In 1992, Robella started her small drugstore. She did it to support the needs of her family and send her children to school. Although, the start was not easy, Robella took the risk to establish her business. She has applied a loan of PhP 30,000 from Community Economic Ventures Inc. (CEVI) to buy additional stocks of medicines in her drugstore. Her business allows her to earn PHP 2,000- PHP 3,000 a day. With the additional income from her drugstore, she was able to provide enough food and other needs of her family. She would like to share that when she was in high school, her grade in Physics and Math was 75%. Her parents were very disappointed at her and have demanded that she needs to improve her grades in these subjects. Her husband, Ponciano Antigo helped her to be confident in managing a business. She also received advises from other entrepreneurs, who
are also members of a cluster group that was organized by CEVI. Then she realized that, “business isn’t about numbers alone. Business is more about integrity and trust”, she said. “In my experience as a drugstore owner, I realized that it is important to maintain good relationship with the sales agents. It is important to honor your word so that they will continue to trust you and let you sell their products”, she added. Robella talks to her customers respectfully and she never forgets to say thank you to those who buy medicines from her store. Her place was filled with variety of medicines and now, she offers a photocopy service, a sarisari store and an ice cream parlor. Having a variety of business helps Robella to meet the needs in their family. That is why, in addition to drugstore, she also runs a rice farm business. She employed two farmers to manage it She said, “In this way, I was not only expanding my livelihood but generate employment as well”.
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“CEVI is one of my TREASURES.”
“I am always grateful to be part of the CEVI family. For a decade that I worked here, I’ve witnessed how the organization CARES for its staff. CEVI has given me rich experiences that can make me say it’s one of my TREASURES.”
MADELINE M. GUIBAO CEVI Human Resource Manager
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AUDITED FINANCIAL STATEMENTS
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Network and Partners World Vision Development Foundation World Vision ADP Partners, VisionFund International Microfinance Council of the Philippines Peoples Credit and Finance Corporation Grameen Foundation Mercantile BPI Globe PLANIS Kiva
Community Economic Ventures, Inc. Sarabia-Co-Torralba Building 2, Espuelas Street, Tagbilaran City, 6300, Philippines Telephone: (038) 412-2356 | 501-0170 | 235-5463 Fax: (038) 412-2356 http://www.cevi.org.ph