STR ØMME FOUNDATION ANNUAL REPOR T 2011
Contents
Word from the Secretary General 3 The Vision of Strømme Foundation 4-5 Introduction to SF Annual Report 2011 6-7 Support to projects/where we work 8-9 Communication and Fundraising 10-11 Mimeta 11 International Department Section 12-13 Bangladesh 14-15 Sri Lanka 16-17 Nepal 18-19 South Sudan 20-21 Kenya 22-23 Uganda 24-25 Tanzania 26-27 Mali 28-29 Burkina Faso 30-31 Niger 32-33 Bolivia 34-35 Peru 36-37 Report from the Strømme Foundation Board for 2011 38-39 Strømme Foundation Activity Account/Balance Sheet 40-41 Strømme Foundation cash flow (The indirect method) 42 Accounting Principles applied 43-48 Thank you! 49 Auditors report 50 Board and council members 51
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Word from the Secretary General
Looking back at the year 2011, I can see footsteps of dedicated – hard working – deeply engaged and motivated poor people trying to create for themselves and their families a new life out of poverty. I am pleased to conclude that the year has been a good year, and I want to thank you all for your contributions. Our activities are many and varies from education to children and dropouts, encouraging women to start saving and invest in income generating activities, microfinance, empowering adolescents, community development and so on. We respond to the needs of the poor through our network of local offices employing highly competent local people.
country and amongst the poor and marginalized. This time one of our main objectives is to work among the Dalit youths in Nepal. Looking back we see that we reach out to thousands of people. At the same time we see so many thousands of people not being reached, working silently in their struggle to feed their families, send their children to school, and work themselves out from poverty. They are the people who challenge us in Strømme Foundation. We want to renew our commitment to strive for creating opportunities to make them be able to work their way out of poverty.
In 2011 we reached out to just about 630 000 people. This is only made possible through loyal and faithful private donors, funders and partners in the business community and private and public institutions that believe in our mission and share our vision of a world free from poverty. In 2011 we again could see Strømme Foundation in activity in Nepal. We are proud to say that we again will work in this
Øyvind Aadland Secretary general
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Great things can happen when many share one common vision! In Strømme Foundation our Vision is:
A World Free From Strømme Foundation is committed to empower people to overcome the root causes of poverty. We define poverty as lack of basic needs, social exclusion, powerlessness, and vulnerability. Together with partners sharing this mission we will, with the poor, facilitate their own efforts to cross the poverty line.
In Strømme Foundation our Mission is:
To Eradicate Poverty People living in poverty lack opportunities. We will facilitate change, not only by providing material needs, but also by creating opportunities for people to utilise their talents in a value-based development process. Strømme Foundation works through local partners and through two intervention lines – microfinance and education.
Challenging
Which means that we place demands on the poor, our partners and especially on ourselves.
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Poverty
Microfinance and Community Managed Microfinance (CMMF) Capacity building of the participants and clients is also an important component of the programs. The microfinance intervention will use the methods of both institutional MF as well as Community Managed Microfinance.
Education Focus is on facilitating poor children at risk by strengthening the fostering environment within the local community. Interventions will be within primary education, adult literacy, vocational skills/life skills and awareness building.
Our Values Inclusive
Which means that we meet all people with openness, respect and dignity.
Result-focused
Which means that we monitor and measure the results of our work, and make any corrective adjustments when needed to achieve our objectives.
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Introduction to SF Annual Report 2011
Welcome to the Annual Report from Strømme Foundation for 2011. “To those people in the huts and villages of half the globe struggling to break the bonds of mass misery, we pledge our best efforts to help them help themselves, for whatever period is required, ….. not because we seek their votes, but because it is right. If a free society cannot help the many who are poor, it cannot save the few who are rich.” These were the words of President John F. Kennedy, in his inaugural speech in 1961. Strømme Foundation exists to do just that, to make our best efforts to help the poor to help themselves. We are inspired from our foundation of faith by the life and works of Jesus Christ; but also by the daily guts and determination, passion and creativity of thousands of poor people who we see finding solutions to their own situations through partnership and working together. We are the catalyst, the facilitator, the helping hand that gets them started through our many grass-roots local partner organizations. As you will read in this report, Strømme Foundations activities are many and varied; we respond to the needs as defined by the poor themselves through our network of local offices employing highly competent local people. In 2011 we have given that helping hand to nearly 630 000 people; to a child having a chance to go to school, a teenage mother finding shelter from abuse, a young woman understanding her rights not to be forced into early marriage and a family having the chance to improve their living conditions through microfinance. You can read in more detail the facts and figures and the wonderful stories of human achievement in this report.
promoting quality education, empowering adolescents and empowering the community for their own decision making and democratisation. Poor communities are encouraged to take up their own development and activate the civil society to take part in the decision making process. We are also providing opportunities for the poor to come out of poverty through economic means. The second is the launching of the Speed School Permanent Secretariat in West Africa in 2011. Speed School is a programme to get children who have not made it into the formal school system to catch up and enter it. For the past several years, Strømme Foundation has been working to expand and cement the Speed School programme by encouraging governments, multilateral organisations and other international NGOs to establish Speed School centres. By jointly establishing a Secretariat with the respective governments, the quality and supervision of the Speed School centres are maintained without the challenges of governments feeling that a foreign NGO is controlling their efforts. This is a very important milestone in our work to help build sustainable locally owned solutions for the poor. Financially 2011 saw a dip in income from both private and public sectors, but we have managed to reduce overheads and maintain flow of funds to our main purpose activities and are continuing to work on ways to sustainably increase income in the future. We thank you our donors and supporters for your commitment and continued interest in our work and hope you enjoy reading the 2011 Annual Report.
It is difficult to highlight any area, but in 2011 two significant milestones were achieved. The first is that we started working once again in Nepal, a country in which about 31% of the population is estimated to live below the 1 USD per day national poverty line.
Sven Ove Faksvåg Chairman of the Board
Already through our education interventions we are now providing opportunities to the poor in civil society through
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Øyvind Aadland Secretary General
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Support to projects including regional office cost Figures in 1000 NOK
Burkina Faso Mali Niger West Africa
Total 3 429 15 954 2 398 21 781
EduMicro- No.of No.of cation finance partners projects 2 045 1 384 5 7 11 114 4 840 17 24 1 275 1 123 2 4 14 434 7 347 24 35 Figures in 1000 NOK
Number of beneficiaries West Africa 71 094
MALI
NIGER
BURKINA FASO
PERU BOLIVIA Total Bolivia 4 854 Peru 5 543 South America 10 397
EduMicrocation finance 4 854 - 5 304 239 10 158 239
No.of No.of partners projects 5 8 7 10 12 18 Figures in 1000 NOK
Number of beneficiaries South America 29 898
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Education Total
Microfinance
Culture Develop.
Disaster response
No.of partners
No.of projects
2011 2011 2011 2011 2011 2011 60 220 23 734 2 280 4 937 114 163
Grand total - support to projects in 2011
90 951
NOK
628 350
Total number of beneficiaries
Education Total Bangladesh 11 314 10 170 Sri Lanka 7 331 4 369 Nepal 1 797 1 797 Asia 20 442 16 336
MicroNo.of No.of finance partners projects 1 144 8 12 2 962 13 13 - 4 5 4 106 25 30 Figures in 1000 NOK
Number of beneficiaries Asia 313 812
NEPAL
R
BANGLADESH
SOUTH SUDAN SRI LANKA UGANDA
KENYA TANZANIA Total Kenya 7 435 South Sudan 8 563 Tanzania 3 256 Uganda 9 717 East Africa 28 971
Education 2 678 7 498 1 749 4 927 16 852
Microfinance 4 757 951 1 347 4 487 11 542
Number of beneficiaries East Africa 213 517
Haiti Act Now CHRISC Microfinance film MIMETA Global
Disaster No.of No.of response partners projects 6 8 114 8 12 160 10 12 303 21 28 577 45 60 Figures in 1000 NOK
Total
Education
Microfinance
4 360 1 810 630 500 2 280 9 580
1 810 630 2 440
500 500
Disaster response 4 360 4 360
Culture & Developm.
No.of No.of partners projects
2 280 2 280
4 1 1 1 1 8
5 1 1 1 12 20
Figures in 1000 NOK
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Communication and Fundraising
The Communication department raises money from schools, businesses, private individuals and organizations in Norway.
During 2011 we raised 69.3 million Norwegian Kroner (NOK); 57 % of the 121.6 million NOK total income for Strømme Foundation. We are pleased with this result and we would like to thank all our donors, partners and staff for making this possible. Strømme Foundation is honoured by the extraordinary generosity of our donors and partners, who provide financial support for our programs around the world. Strømme Foundation has had a special focus on efficiency in 2011, and as a result of this we have lost two of our employees in the CD. Their workloads have been taken over by existing staff members in the department, which means some extra effort is needed from our staff. Individual Donors In 2011 we still see a decrease in fixed-term donors (Hjertevenn and Brobygger/ Friend at heart and Bridgebuilder). We are, however, experiencing a positive trend amongst our younger donors, and Povertybuster is increasing in numbers. We do believe that our continuous focus on this will give results, although we experienced a decline in number of donors in 2011. The market for child sponsorship programs is still tough, but we did manage to increase the average amount per donor during 2011. We decided to raise funds for our beneficiaries in Northern Uganda who were affected by the famine. Through advertisement in several papers, and also a follow up DM focusing on the famine, we raised 1 million NOK. Our focus on Social Media has in 2011 resulted in an increased interest in our work. We experience that our web pages are visited much more frequently, and there has been weekly activities on Facebook, Twitter and various blogs. Major Donors, schools and corporations 2011 was a year of consolidation for the Major Donor group, where we attracted some new interesting partners like Blafre design and Helgerud Holding. Still, new contracts are difficult to obtain. MD group has continued the sales training concept with Storform, with special focus on individual sales coaching. Many of our partners have signed new three year contracts, like AgderEnergi and ABCenter. It is, of course, important for us to maintain our partners, and we don’t take renewal of contracts for granted. Not only is the amount of funding from Business partners significant, they also show an amazing level of commitment and involvement among the employees.
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Furthermore, important major donors like The Kavli Fund and The family foundation Henriette (owners of Kruse-Smith) have contributed substantially in 2011. In the work we do related to schools, we have made a push towards new folk high schools, and visited a number of new schools in 2011. Once again Sagavoll (folk high school) impressed us with what they achieved at their yearly fundraising campaign for Strømme Foundation. In 2011 Sagavoll raised the highest amount ever – 765.000 NOK! Tangen Vgs, a large senior high school in Kristiansand, has also signed a three year contract with Strømme Foundation. In addition to this, we have worked strategically towards reaching the finals in Operation Day’s Work throughout 2011. Media & Public Relations The trend within Press and Media has been uplifting in 2011. We have worked more as a team focusing on publishing opinion pieces. This has been successful. We registered a total of 557 hits in different newspapers, magazines, radio and TV, and digital media where Strømme Foundation is mentioned. We work with the media to get attention nationwide. We want to create awareness for development issues, and try to educate the public on North/South issues. To be a voice for the voiceless is an important part of our mission. Our media coverage in 2011 included opinion pieces in major national newspapers like Aftenposten and Dagbladet, and we took part in several debates in different media. Our youth organization, Re:Act, has also been visible in various media. Every year we see that there are some events that especially draw media’s attention to us. The December Christmas concert “Stille natt Hellige natt” creates good coverage in media. This year they also toured in the North of Norway with the Christmas concert “Desembernatt”. We experience that our exchange students (Act Now) offer important media coverage through blogging, interviews and articles.
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Total income in 2011 Figures & facts Private donors (total) 21 283 Fixed-term donors 14 935 -Hjertevenn 10 967 -Brobygger 3 050 -Fattigdomsbekjemper 729 Single donations 6 348 Outreach Norwegian children & youth 6 107 Number of business partners 47 Outreach business partner employees 9 150 Micro Shares (mikroaksjonærer) 30 Number of partner schools 39 Youth engaged in SKRIK campaigns 1 145 Visitors: web-page www.strommestiftelsen.no 45 356 Views, youtube, povertybuster 11 618 Facebook members, Norwegian page 1 983 HTS magazine subscribers 25 000 Number of articles in media (newspapers, magazines, web)
Public sector grants Individual donations
7 678 453
Fixed-term donations
37 148 592
Events – schools and artists Grants from other organisations
557
50 046 903
3 482 063 10 735 996
Testamentary donations
1 713 270
Corporate sector
9 089 170
Disaster Relief & Rehabilitation
1 143 670
Mimeta Mimeta works to allow for a country’s population to get access to artistic expressions that are created on free terms and presented by independent institutions or venues, - in favor of the art itself, human rights and an open, sustainable society. This is our vision and the impact we aim for by our efforts, a vision that is in the hands of those within the cultural sector who are taking initiatives in the construction of social and political structures, increased transparency and sound governance. Among those organizations you find our partners: The service providers to the arts. Mimeta is specifically searching for outcomes based on: • • • •
Initiatives that give artists, producers and artistic works better protection against abuse, detention and censorship. Initiatives that contribute to processes and tools that give artists and producers their democratic opportunity to influence what may hinder the free exercising of their rights. Initiatives that strengthen independent platforms (venues, festivals, spaces etc) providing free, artistic expressions. Initiatives that strengthen organizations that work on behalf of the arts, as service providers, to improve the sectors´ position on rights issues, in political and legal matters, the professionalism, the distribution of the arts and the sustainability of the sector.
Our partners have during 2011 established modality for an artists´rights monitoring and protecting system on the African continent, initiated the civil sectors´ cultural policy processes in different African countries (from Zimbabwe to Egypt) and established a capacity building program for emerging culture groups in both MENA and the Sub-Sahara regions. Since our establishment we have invested in organizational capacity and new concepts that contribute to the communication of free and independent culture expression. Now, especially after “The Arab Spring” we see that the human rights approach has become a strong component of the culture and development agenda in Norway and Sweden, and expect this approach will favor Mimeta in future, as we believe we have the right structures in place to secure further development. Our main funder during 2011 has been the Culture section of the Norwegian ministry of foreign affairs. I 2012 we have achieved great support for our ideas, organization and partners, also in Sweden. Expected activity for 2012 will thus be on a level of eight million Norwegian kroner. Mimeta is owned by Strømme Foundation and Vest-Agder County.
In 2011 there has been a strengthened focus on the Middle East and North Africa region (MENA), in addition to the established interventions in Sub-Sahara Africa.
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International Department Section
Strømme Foundation’s intervention strategies are adapted to the priorities, possibilities and limitations of each region. In all regions the target group consists mainly of children at risk and women, while the strategies cover microfinance and education. In Asia we operate in Sri Lanka, Bangladesh and Nepal with a holistic rights-based approach. In Sri Lanka we build democracy through grass root mobilization. We organize and train small groups (self- help groups) and Community Based Organizations (CBOs), that gradually learn to stand on their own feet and speak up for their rights with the duty bearers. In Bangladesh our partners are implementing pre-schools as well as quality primary education programmes for children. Adolescents are empowered through our one year participatory Shonglap education. Through People’s Organizations we are empowering poor people on their rights. We try to reach the families that are benefitting from our education interventions also with microfinance. Our Nepal programme started in 2011. The two main components are Samvad; an education programme for adolescents built on the Shonglap experiences from Bangladesh, and a CBO programme; built on our experience from Sri Lanka. In South America (Peru and Bolivia) the target group consists mainly of children at risk in the regions with the highest incidence of violence and abuse: indigenous populations in the Andean highlands and the Amazon, as well as marginal urban areas. Our interventions aim to increase the preparedness of
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children and youth to the dangers that surround them (“life skills”) and improve the quality of education (e.g. by promoting bilingual education: Spanish/local language). Interventions vary from cultural activities for youth to the rehabilitation of street children. The focus is increasingly on preventive actions. In our three intervention countries in West Africa (Mali, Burkina Faso and Niger) more than 2, 4 million children in primary school age are out of school. By offering a fast-track education to these children (Speed School), they will have an opportunity to go back to school. The Speed school intervention is complemented with Functional Adult Literacy training, and savings and loan groups for women. The latter improve the income position of the women and thereby also increase the chance for children to remain and continue their education and stay at school. The literacy training increases the understanding of the importance of education and is also instrumental in planning successful income generating activities. In East Africa the core of the interventions is similar to West Africa (savings and loan groups, Functional Adult Literacy and Accelerated Learning Programmes to bring children back to primary school). However, in addition to these core interventions, the Strømme Foundation programme in East Africa also invests strongly in teacher training and (informal) vocational training. The latter is important to bridge the gap between primary school and the labor market. Moreover, the programme implements an adapted version of the Shonglap programme in Asia which in East Africa is known as ‘Mazungumzo’ programme.
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BANGLADESH
Strømme Foundation´s operation in Bangladesh initiated two decades ago and is registered under the NGO Affairs Bureau as an International Non Governmental Organization. Currently it employs 11 staff members and the country office is situated in Dhaka, Bangladesh. Bangladesh is one of the world’s poorest and a most densely populated country with a population around 158 million living in a land-mass of 144,500 km. 75% of the population depend on agriculture. Population pressure compounded by low levels of social development like low literacy, poor status of human rights, and poor governance including corruption faces a major challenge in attaining the MDGs. Almost half of its population (49.8%) live below the poverty line earning less than 1 USD per day while the population living with less than 2 USD per day is 82%. Education is considered a powerful leverage for their empowerment and is highly subsidised by the government, in particular, girls’ education is not given sufficient priority. Around 57% of the total adolescent girls do not go to primary school and about 30% drop out before completing high school. In the rural areas of Bangladesh adolescent girls are normally given away in early marriage as parents consider them a “liability”. Bangladesh also ranks top in the world in child marriages, depriving the education and childhood for many girls. One fifth of adolescent girls in Bangladesh are reported to be married by the age of 15.
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The country is also widely known for its success stories such as the Nobel Peace Prize for the Grameen micro credit mode. Education is one of the major interventions of Strømme Foundation (SF) in Bangladesh. As a right based development organization SF is committed to children’s education, especially children of disadvantaged groups for their access to education. Non Formal Primary Education (NFPE), Pre schooling under Early Childhood Development (ECD), Quality Education in Primary Schools, Education and Life skills for Adolescent Girls (Shonglap) are some of the major components under our education interventions. Community participation and community ownership is the core approach for all interventions. The main objective of the microfinance department is to provide financial and non-financial support to the partner organizations, implementing microfinance operations at the grass roots level and accelerate poverty alleviation process through community participation. Local partners are implementing the projects with technical support and guidance from SF Education Team as part of capacity building in the areas of linkage establishment with national networks, program development, pedagogical aspects, monitoring and assessing. Bangladesh, though a sovereign country with a parliamentary democracy, continues to face a number of major challenges, including political and bureaucratic corruption and widespread poverty. A country of many rivers, it’s annually subjected to monsoon floods and cyclones creating internal climate refugees which adds up to the challenges in poverty eradication in Bangladesh.
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BURO COAST CODEC DISA POPI RDRS SUS VARD
Partner (since)
Where? (urban/rural)
What/Focus on
BURO (2003)
Urban/Rural
Dhaka Slums (Urban) and Kurigram districts – Rural Pro-poor financial and non financial services (MF) Strengthening basic education, wvformal and non formal Shonglap - Empowering adolescents on their rights Community empowerment for democratization (Peoples Organization)
COAST (2001)
Cox’s bazaar and Patuakhali dsitricts – Rural
Pro-poor financial and non financial services - Micro Finance, Basic Education (ECD & Moktab Education, Quality Education in Primary School) Shonglap - Empowering adolescents on their rights Community empowerment for democratization (Peoples Organization)
CODEC (2002)
Bagerhat, Pirojpur Khulna districts -Rural
Pro-poor financial and non financial services - Micro Finance, Basic Education (ECD & Quality Education in Primary School) Shonglap - Empowering adolescents on their rights Empowering Community for Democratization
DISA (2011)
Chandpur district- Rural
Pro-poor financial and non financial services (MF). Empowering adolescents on their rights (Shonglap) Strengthening basic education, formal and non formal
POPI (2006)
Haluaghat and Dhobaura Upazilas, Mymensingh and Nalitabari Upazila, Sherpur – Rural
Pro-poor financial and non financial services (MF) Strengthening basic education, formal and non formal Empowering adolescents on their rights (Shonglap) Community empowerment for democratization
RDRS (1995)
Dinajpur, Thakurgaon and Panchagahr districts Rural
Empowering Disadvantaged Tribal Poor especially on their land rights Microfinance Shonglap - Empowering Adolescents - on their rights Quality Education Program Peoples Organizations and Economic Promotion Programs
SUS (2000)
Satkhira and Jessore districts – Rural
Rural microfinance and Talent finance program Supporting formal primary school for quality education. Non-Formal Primary School (NFPE). Shonglap - Empowering Adolescents on their rights Advocacy and mobilization for quality education Formation of People’s Organisations
VARD (1994)
Sunamgonj, Moulavibazar and Sylhet – Rural
Microfinance Supporting Primary School for Excluded Children Quality Education Program Shonglap - Empowering Adolescents - on their rights Empowering Civil Society – People’s organisations
Education Total expenditures in 2011 Microfinance Total expenditures in 2011 Total expenditure in 2011
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NOK 10 170 000 NOK 1 144 000 NOK 11 314 000
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SRI LANKA
Strømme Foundation’s operations in Sri Lanka started in 2001 following the establishment of its Regional Office in Colombo. It’s currently registered under the Social Services Act providing education and economic empowerment opportunities to marginalised poor families in the country. Its microfinance arm, established in 2006 known as Strømme Microfinance Asia Guarantee Limited (SMAGL), is registered under the Company’s Act of Sri Lanka providing access to financial services to the low income poor families. Strømme Foundation Sri Lanka along with our Microfinance Apex currently reaches over 62,000 families below the poverty line. We employ 26 staff members. Sri Lanka is a South Asian developing country with a population of 20 million, and has about 23% of its people below the poverty line living under 1 USD per day according to World Bank. Sri Lanka’s population has an education of 92% one of the highest literacy levels for a developing nation. However the quality of education and rural marginalisation due to lack of access to services and resources such as teachers, school shelters and other education opportunities stands a challenge. As a right based organisation Strømme Foundations’ Education interventions in Sri Lanka mainly focus on non formal education mobilising and giving voice to the marginalised poor communities and thereby improving educational opportunities, to empower them socially and economically. Through our interventions poor communities will be strengthened to address their
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own community needs which include improving educational opportunities for vulnerable children as well. Our education strategy mobilisation gives new opportunities for the poor to strengthen and utilise resources as a right of the people to fight poverty. Strømme Foundation will focus on empowerment of the local organization (CBOs /NGOs) to participate in national development to attain sustainable development. Sri Lanka, being a country facing a post war boom following the conclusion of a three decade ethnic conflict, has recorded an economic growth of 8.3% last year. However homelessness and unemployment especially among the war returnees poses a greater challenge in reducing poverty. Apart from war returnees Strømme Foundation also works with marginalised tea estate workers, poor farmer communities, and women headed families. Strømme Foundation’s work mainly focuses on women as they are considered the focal change agent in the family that could create a positive social and economic change. Civil society participation in the development process has been at a low level due to politicization and conflict subjectivity during the last two to three decades. The challenge is to activate the civil society to take part in the decision making process. Once the mobilization and the organization are established the people will be able to find solutions to their own problems.
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EDUCATION Partner (Since)
Where? (urban/rural) What/Focus on
1. CfHD (Centre for Human Developm.) (2007)
Kegalle, Kandy Badulla Districts – Rural
Galle District 2. HPDF (Habaraduwa partici- Rural patory Development Foundation) (2007)
Strengthening civil societies and empowering the marginalised community Provision of financial and non financial services Market linkages and livelihood technical assistance empowering the marginalised women - Capacity building on home management, home gardening, housing, and health
3.PALM Foundation Nuwara Eliya (Participatory District Rural Action and Learning Development Foundation)
Strengthening civil societies and empowering the marginalised community Provision of holistic pro-poor financial and non financial services Advocacy and community participation focusing quality education and community rights. Building linkages between the under privileged tea estate workers and the management in winning basic needs such as electricity, water and housing.
4. PPDRO 2010
Strengthening civil societies and empowering the marginalised community Provision of holistic pro-poor financial and non financial services Community participation on quality education, and basic community rights. Infrastructure
5. RPK (Rajarata Praja Kendraya) (2007)
6. Surekuma (2005)
7. Women’s Development Federation (WDF) (2008)
Batticaloa District Rural
Anuradhapura District Rural
Matale District Rural
Hambantota District
CFHD HPDF PALM FOUNDATION PPDRO RPK SUREKUMA WDF AMF BRAC BMI CDBDC RDB SEWA
Strengthening civil societies and empowering the marginalised community Provision of financial and non financial services Organic farming and local seeds productions Youth development Market linkages and livelihood technical assistance
Strengthening civil societies and empowering the marginalised community Provision of holistic pro-poor financial and non financial services Advocacy and community participation involving on quality education, infrastructure development, and achieving basic community rights. Youth entrepreneurship and vocational training. Market linkages and livelihood technical assistance Strengthening civil societies and empowering the marginalised community Provision of holistic pro-poor financial and non financial services Community participation on quality education, and basic community rights. Strengthening civil societies and empowering the marginalised community Provision of holistic pro-poor financial and non financial services Market linkages and livelihood technical assistance Integration of men into development programs and community development work.
Education Total expenditures 2011
NOK 4 369 000
MICROFINANCE Partner (Since)
Where? (urban/rural) What/Focus on
8. AMF
Puttlam, Kurunagala, Provision of holistic pro-poor financial and Galle, Matara, Hambantota, non financial services Ampara Districts - Rural
9. BRAC
Trincomalee, Batticaloa, Ampara Districts -Rural
10. BMI
Anuradhapura, Trincomalee, Nuwara Eliya, Kegalle Districts - Rural
11. CDBDC
Colombo District - Urban
Provision of holistic pro-poor financial and non financial services
12. RDB
Vavunia, Mannar , Monaragala Districts Rural
Provision of holistic pro-poor financial and non financial services War Returnee Livelihood Improvement
13. SEWA
Puttlam, Colombo, Galle, Provision of holistic pro-poor financial and non Matara, Hambantota, financial services Monaragala, Nuwara Eliya, Ampara, Batticaloa, Dambulla, Polonnaruwa, Trincomalee, Vavunia – Rural
Provision of holistic pro-poor financial and non financial services Provision of holistic pro-poor financial and non financial services
Microfinance Total expenditures 2011
NOK 2 962 000
Total expenditures in 2011
NOK 7 331 000
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NEPAL
Strømme Foundation started its operations in Nepal in 2011, and is registered under the Social Welfare Council as an International Non Governmental Organization. Currently it employs 3 staff members and the country office is situated in Kathmandu, Nepal. Nepal, a landlocked country surrounded by India and China, is labeled as one of the poorest countries in South Asia with a population of 9 million people. About 31% of the population is estimated to live below the 1 USD per day national poverty line. Nepal has made significant progress in increasing female life expectancy as well as in improving female literacy levels, and primary and secondary school completion rates. Yet, large gender gaps remain with females discriminated over for example education, labor and decision making. Despite recent improvements, the adult literacy rate for women in 2000 was just over half that of men. The literacy gap further widens due to cast discriminations where lower casts such as ‘Dalit’s (untouchables) literacy rate is only 33.8% against the national average of 54%. Nepal’s main economic contributors are agriculture, services and industry. Agriculture employs more than 70% of the workforce. Strømme Foundation (SF) interventions in Nepal focuses on socially excluded disadvantaged and vulnerable groups including ‘Dalits’, and adolescent school dropouts. Through our education interventions we provide opportunities to the poor in civil society trough promoting quality education, empowering adolescents and empowering the community for their own decision making and democratisation. Poor communities are encouraged to take up their own development and activate the civil society to take part in the decision making process. SF support hardware and software aspects parallel to bringing lasting impact on poor children and school dropout adolescents.
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Advocacy and community participation will be strengthened through parents as well as other stakeholders responsible to engage and build necessary mechanisms for quality education. ‘Samvad’ an adolescent empowerment program is a platform created for the young school drop outs to improve their literacy, social and life skills, while educating themselves in decision making and facing challenges in their community. Strømme Foundation believes in introducing professional microfinance in the country, targeting the poor and disadvantaged communities, to guide them towards linking with mainstream financial services. It provides opportunities for the poor to come out of poverty through economic means. At the same time special emphasis is given for women empowerment by creating access to financial and non-financial services to them. Our development policy is to promote people’s organisations at community level as a sustainable mechanism to continue their own development process. Though a decade long conflict between the Maoists and the Government, concluded in 2006, political unrest prevails in Nepal due to cast and ethnic polarizations as a result of the new constitution promoting multi ethnic federalism. The constitution aims to restructure the former Hindu monarchy into 11 federal states. Though these political improvements have created stirrups it has so far created minute hindrances in Strømme Foundations development work.
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ABC NEPAL KIRDRAC NNDSWO RRN
Partner (Since) Where? (urban / rural) What? ABC Nepal (2011) KIRDRAC (2011) NNDSWO (2011) RRN (2011)
Rhupandei District - Rural Surkhet District - Rural Rautahat District - Rural Makwanpur District – Rural
Total expenditures in 2011
• Adolescent Empowerment Program • Formal and Non Formal Education, • Community Empowerment • Financial and Non Financial Services NOK 1.797.000
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SOUTH SUDAN
Strømme Foundation has worked in southern Sudan and now the country of South Sudan, since 2001. Programmes are overseen by a country office in Juba, which reports directly to the Strømme Foundation (SF) Regional Office in Uganda. The country office is run by a staff of 5. Following over two decades of civil war in Sudan, a peace agreement and eventual referendum led to the establishment of the new, independent state of South Sudan in July 2011. The aftermath of the civil war, continued instability and insecurity, and lack of infrastructure have all contributed to a country with extremely low literacy rates and extremely high poverty and unemployment rates. It is estimated that more than 90% of the population still live on less than a dollar a day. A key challenge in South Sudan is education. Access to basic education is as low as 20%, and the quality of education for most children in school is poor due to a lack of classrooms, qualified teachers, training materials and textbooks. Female enrolment in schools is particularly low. One of many reasons for this comes as a result of traditional beliefs and practices including early marriage. In South Sudan only 37% of girls aged 6-13 attend school. The completion rate is as low as 10%. Out of 24,000 teachers supported by Government, 96% have no formal qualification and
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63% have no teacher training at all. Only 14% of all teachers are female. In addition, adult illiteracy is high (88%) and many youth and adults lack employable skills. In response, SF supports six education programmes in South Sudan: teacher training, vocational training, functional adult literacy, primary school support, community girls’ education and accelerated learning. The accelerated learning programme enables young people who did not complete or had no opportunity to start basic education due to war, to go through eight years of normal primary school in a period of four years. Graduating youth can either continue to secondary school or go into employment. The community girls’ education programme is a three-year programme. The programme provides young children – particularly girls – whom have either never attended school or have dropped out early with an education equivalent to the first four years of primary school, so that they may enrol in the 5th grade of primary school upon completion. To combat poverty in South Sudan, SF implements the Community Managed Microfinance programme (CMMF). Using the Self-Help Group concept, SF aims to build entrepreneurship and a savings culture, as means of lifting communities out of poverty and eventually enabling the future viability of traditional Microfinance.
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SWIDAP HTPV ECS NHDF ACROSS BRAC
EDUCATION Partner (since)
Where? (urban/rural)
What/Focus on
Sudan Women In Ayod, Jonglei (rural) Development and Peace (SWIDAP) (2004)
Support to primary schools to improve quality and retention Functional Adult Literacy Accelerated learning program
Holy Trinity Peace Village Kuron HTPV (2009)
Kuron (rural)
Support to primary schools to improve quality and retention Vocational and life skills training
ECS Diocese of Kajo Keji (2010)
Kajo Keji (rural)
Support to primary schools to improve quality and retention Accelerated learning program Teacher training Functional Adult Education
Nile Hope Development Bor, Akobo & Nyirol (rural) Forum- NHDF (2009)
Support to primary schools to improve quality and retention Accelerated learning program Functional Adult Literacy
ACROSS (2005)
Boma (rural) Yei (urban)
Support to primary schools to improve quality and retention Accelerated learning program Teacher training by radio Functional Adult Education
BRAC (2008)
Yei (rural)
Community Girls Education
Education Total expenditure in 2011
MICROFINANCE Partner (since)
NOK 7 498 000
Where? (urban/rural)
What/Focus on
Nile Hope Development Akobo & Nyirol (Rural) Forum (NHDF) – (2009)
Community Managed Microfinance (CMMF)
South Sudan Women in Ayod County, Jonglei State Development And Peace (Rural) (SWIDAP) – (2010)
Community Managed Microfinance (CMMF)
ACROSS (2006)
Community Managed Microfinance (CMMF)
Yei, Boma, (Rural)
Microfinance Total expenditure 2011
NOK 951 000
Disaster response 2011
NOK 114 000
Total expenditure in 2011
NOK 8 563 000
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KENYA
Kenya, though appearing most advanced in the Eastern African countries, has significant income disparities and an ever-widening gap between the rich and the poor. This was one of the causes of the crisis after the last Presidential elections held in December 2007. Kenya is ranked 143 out of 187 countries by the 2011 Human Development Index, with 19.7% of the population living on less than a $1.25 a day. 38% of Kenya’s adult population are excluded from both formal and informal financial services. The exclusion rate amongst women is significantly higher. A number of Microfinance programmes have been put in place by both the government and various microfinance institutions, as a way to provide financial services to the poor. Strømme Foundation (SF) has contributed to this, through our institutional microfinance partner Jamii Bora Trust. More recently, Community Managed Microfinance groups have been established amongst the Maasai communities connected to the Maasai Mara reserve.
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In response to high youth unemployment and inner-city poverty and crime, SF also supports a number of youth clubs in providing children and youth with access to sports, arts, cultural activities, HIV/AIDS awareness, and leadership training. In an effort to both sustain Kenya’s diverse wildlife population and raise the living standards of indigenous groups living astride the Masaai Mara Game Reserve, Strømme Foundation supports the Base Camp Foundation to promote access to quality basic education for the children in the area, and vocational skills training that would enable the young people benefit from the tourism industry while promoting conservation efforts. SF also promotes the enhancement of sustainable livelihoods in the area through the community managed microfinance program. SF supports the improvement of school infrastructure at a local primary school and funds the conservation effort on the Big Cats project at the Mara Naboisho Conservancy. Currently, the vast Mara area has 18 active CMMF groups.
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CHRISC MYSA MASAI MARA KADET JAMII BORA
EDUCATION Partner (since)
Where? (urban/rural)
What/Focus on
Christian Sports Contact Nairobi (urban), Voi (urban and Promoting youth leadership and life Kenya (2010) rural) Eldoret (urban) skills through sports and culture Mathare Youth Sports As- Nairobi (urban) sociation MYSA (1997)
Promoting youth leadership through sports and life skills training ; Community development through art and culture
Base Camp Foundation (2011)
Support to conservation and vocational skills training Support to primary schools to improve quality and retention Enhanced economic empowerment and entrepreneurship through the promotion of community managed microfinance
Masai Mara (rural)
Education Total expenditure 2011
MICROFINANCE Partner (since) KADET (2005)
NOK 2 678 000
Where? (urban/rural) What/Focus on Eastlands- Nairobi (urban) El- Financial and non-financial services doret, Emali, Kabarnet, Kangemi, Naivasha, Kapsabet, Kisumu, Malindi, Migori, Mombasa, Narok, Thika (rural communities in these districts)
Jamii Bora – since 1998 All districts of Kenya
Financial and non-financial services; Housing Microfinance
Microfinance Total expenditure 2011
NOK 4 757 000
Total expenditure 2011
NOK 7 435 000
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UGANDA
Strømme Foundation has worked in Uganda since the late 1980s. Since 1994, Uganda has also served as the head office for the East Africa Region which oversees programmes in Kenya, Uganda, Tanzania and South Sudan. The regional office in Kampala is run by a staff of 20. Uganda has made considerable progress during the past 15 years in the reduction of poverty. However, poverty and lack of access to services remains a challenge. Uganda is ranked 161 out of 187 countries by the 2011 Human Development Report, with 28.7% of the population living on less than $1.25 a day. Poverty levels are highest in the North where more than 20 years of armed conflict came to an end in 2006. Also in other rural and hard-to-reach areas throughout the country poverty is high. These are the areas where Strømme Foundation (SF) concentrates its efforts. Education is a key intervention for SF in Uganda. Although net enrolment in primary school is high (92%), the country still faces challenges which is related to educational access, retention, completion and quality. Attendance is at 82%1, while completion is at 52% for both boys and girls, and 42% for girls. Despite efforts by the Ministry of Education and Sports, towards improving education in the country, many children in lower primary school are still struggling to read English and do basic mathematics. 9 out of every 10 children in Primary 3 could not read and understand an English story text of P2 level.2 Strømme Foundation works hand-in-hand with schools, communities and local government to increase primary school completion rates and improve the quality of education for vulnerable children. In line with the needs identified for each school, classrooms, libraries, teacher housing and toilets are built. We also provide classroom furniture and materials, and support teacher training. Communities are sensitised about the importance of education for both girls and boys. Parent Teacher’s Association and School Management Committees are
formed and strengthened to improve governance and accountability in schools and the participation of communities in education projects. Despite the introduction of several affirmative action policies towards empowering women and girls, Uganda continues to be hampered by gender inequalities and social vulnerabilities. Gender based violence is estimated at 68% for females. Girls are less likely to complete primary school, and only a third of girls who enrol in primary school continue with their studies to the age of 18. And though women comprise 70% of the work force in the agriculture sector, they experience unequal access and control over important productive resources. 50% of the women are employed in the lowest paying sectors, compared to 33% of men. In response to these challenges, Strømme Foundation aims to empower adolescent girls at risk in Northern Uganda through skills training and information. This 12 month programme is an adaptation of the ‘Shonglap’ programme in Bangladesh. The Ugandan government recognises Microfinance as one of the critical tools to eradicate poverty. However, only 22% of the population have access to formal financial services. Uganda is also amongst the countries with the lowest savings rates in the world, making it difficult for families to make the investments necessary for improved welfare. Through Strømme Microfinance East Africa Limited, Strømme Foundation provides, on a sustainable basis, client responsive financial and non-financial services. We also provide technical assistance to financial institutions and business service providers with the overall aim to improve the poor’s access to financial services. In addition, through the Community Managed Microfinance programme, we aim to economically, socially and politically empower persons – particularly women – not reached by traditional Microfinance Institutions.
1 UNISEF Uganda 2011 report 2 Uwezo Uganda National report 2011
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EMAC VISION TERUDO CRO UWCM WAD DRUSCILLA CHRISC UG. MILES2SMILES KARAMOJ. PR. SECT CBS PEWOSA CIDE
MICROFINANCE Partner (since)
EDUCATION Partner (since)
Where? (urban/rural)
What/Focus on
EMAC (2004)
Gulu and Amuru (Rural)
Life and vocational skills training for adolescent girls Functional Adult literacy Support to primary schools improve quality and retention Enhanced economic empowerment and entrepreneurship through CMMF
Aridland Development Program (2010)
Abim, Karamoja (rural)
Life and vocational skills training for adolescent girls
Vision Terudo (1998)
Kumi, (rural)
Support to primary schools improve quality and retention Improving livelihoods for orphans and vulnerable children
CRO Mbale (2004)
Mbale (marginal urban)
Rehabilitation of children living on the streets Reintegration of street children into formal school Vocational skills training for youth
UWCM (2003)
CRO Jinja (2010)
Mbale, Sironko, Manafwa (rural) Support to primary schools to improve quality and retention Enhanced economic empowerment and entrepreneurship through CMMF Jinja (urban)
Rehabilitation of children living on the streets Reintegration of such children into formal school Enhanced economic empowerment and entrepreneurship through CMMF
Where? (urban/rural)
What/Focus on
Micro Uganda (2004)
Both rural and Urban (Kayunga Financial and non-financial services and Kampala)
Kyamuhunga SACCO (2010)
Rural (Bushenyi)
Financial and non-financial services
HOFOKAM (2007)
Hoima, Fort Portal, Kasese, Masindi (rural and urban)
Financial and non-financial services
Mpanga SACCO (2009) Mpanga and Kasunga (rural)
Financial and non-financial services
RUKOMA SACCO (2002) Katerera, Nyakasharu, Katunguru (rural)
Financial and non-financial services
OMIPA SACCO (2010)
Isingiro (urband and rural)
Financial and non-financial services
Lwengo Microfinance (2010)
Masaka (urban)
Financial and non-financial services
Uganda Microcredit Foundation (2010)
Wakiso, Luwero, Mukono (rural)
Financial and non-financial services
Opportunity Uganda (2011)
Kampala, Jinja, Masaka, Iganga, Financial and non-financial services Mbarara, Mubende (urban) Kayunga (rural)
ISSIA (2005)
Ibanda, Kazo (rural)
Financial and non-financial services
MCDT (2002)
Tororo, Luwero (rural) Kampala (urban)
Financial and non-financial services
BRAC (2006)
Countrywide (rural and urban)
Financial and non-financial services
RUCREF (2004)
Luwero, Wakiso, Kampala (urban)
Financial and non-financial services
Victoria Basin (2005)
Kyotera, Lyantonde, Mutukula, Kalisizo, (rural)
Financial and non-financial services
UGAFODE (2005)
Kyotera, Lyantonde, Kalisizo, Ishaka, Rukungiri, Ibanda,Ntungamo,(rural), Kampala (urban)
Financial and non-financial services
Karamoja Private Sector Abim (rural) (2007)
Community Managed Microfinance
CREAM (2008)
Moyo, Yumbe (rural)
Community Managed Microfinance
SEPSPEL (2009)
Mayuge (rural and urban)
Community Managed Microfinance
UWCM (2009)
Manafwa, Mbale, Sironko, Bulambuli, Bududa (rural)
Community Managed Microfinance
Druscilla Project (2008) Kabale (rural)
Community Managed Microfinance
SOCADIDO (2009)
Kaberamaido (rural)
Community Managed Microfinance
CBS PEWOSA (2009)
Kasanje, Sisa, Nsanji (rural)
Community Managed Microfinance
CIDE (2010)
Mityana (rural)
Community Managed Microfinance
READ (2010)
Luwero (rural and urban)
Community Managed Microfinance
West Ankole Diocese (1997)
Mitooma, Rubirizi, Buhweju and Bushenyi (rural)
Support to primary schools to improve quality and retention
Druscilla Balaba Project (2010)
Kabale, Southwestern Uganda (rural)
Vocational and life skills training for adolescent girls Enhanced economic empowerment and entrepreneurship through CMMF
Miles2Smiles (2010)
Kampala (urban)
Community Managed Microfinance
EMAC (2010)
Amuru and Gulu (rural)
Community Managed Microfinance
West Nile Private Sector Zombo, Nebbi (rural) (2011)
Community Managed Microfinance
Kabale (rural) Arua (urban) Ndejje (rural) Mbale(urban) Kampala (urban)
Leadership and life skills through sports and culture for youth
COVOID (2011)
Lubirizi (rural)
Community Managed Microfinance
CRO Jinja (2010)
Jinja (urban)
Community Managed Microfinance
Kampala (urban)
Early childhood education
Microfinance – total expenditure in 2011 Disaster response Total expenditure in 2011
CHRISC Uganda (1993)
Miles2Smiles (2008)
Education – total expenditure in 2011
NOK 4 927 000
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NOK 4 487 000 NOK 303 000 NOK 9 717 000
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TANZANIA
Strømme Foundation has worked in Tanzania since the mid1990s. We have a part time management consultant based in Dar es Salaam who oversees the Tanzanian Partners on behalf of the Strømme Foundation Regional Office. Tanzania is ranked 152 out of 187 countries in the 2011 Human Development Index, with 67.9 % of the population living below the poverty line of $1.25 per day. Poverty in Tanzania is characterised by low income and expenditure. There is a high mortality rate, poor nutritional status, low education attainment. There is also a high vulnerability to external shocks and exclusion from social, economic and political processes. As in Uganda, poverty is more spread in rural than in urban areas – where the majority of the population lives and livelihood is dependent on agriculture. Basic education is a key area of focus for Strømme Foundation (SF) in Tanzania. Although the net enrolment rate in primary school is high (96%), there is also a high level of student dropout (7.5%) and repetition (8.35%), and education is still not prioritised among some people groups, such as the Masaai in North Eastern Tanzania and in some areas in the Mwanza districts. Moreover, access to pre-primary education remains low – with a net enrolment rate of 28.6% in 2006, according to the Tanzania National Strategy for Growth and Reduction of Poverty. This situation is in part caused by the lack of Early Childhood Development (ECD) education facilities and teachers in the
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rural areas, and has led to children from poor households starting first grade unprepared and at a higher risk of drop-out and poor academic performance. To combat these challenges, Strømme Foundation works with our partners to establish and run ECD centres in the marginalized areas of Tanzania. The intervention includes infrastructure development, training of teachers, mobilising communities for participation and strengthening the governance and management of centres. To the extent that resources allow, Community Managed Microfinance (CMMF) groups are also started in the same communities as a way to strengthen financial and parental support for the centres. In some communities, Strømme Foundation also supports primary schools using the same approach as in Uganda. In Tanzania 54% of people still do not have access to financial services. The majority of these persons live in rural areas, where lack of infrastructure and poverty impede access to these services. Access to financial services is also hampered by low education and literacy levels as well as cultural barriers. Through Strømme Microfinance East Africa Limited, Strømme Foundation provides, on a sustainable basis, client responsive financial and non-financial services and technical assistance to financial institutions and business service providers with the overall aim to improve the poor’s access to financial services. In addition, through the Community Managed Microfinance programme, we aim to economically, socially and politically empower persons – particularly women – not reached by traditional Microfinance Institutions.
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CHRISC TNZ. KAMAMMA MPDI MWDA TAHEA OCODE BELITA PRIDE TNZ. SELFINA TUJIJENGE TNZ. YOSEFO
EDUCATION Partner (since)
What/Focus on
MICROFINANCE Partner (since)
Where? (urban/rural)
What/Focus on
CHRISC Tanzania (2010) Arusha, Mwanza (urban)
Promoting youth leadership and life skills through sports and culture
Better Life For Tanzanians (Belita) (2011)
Mabimbo, Makuburi Area (Urban)
Financial and non-financial services
KAMAMMA (2004)
Nganana, Maweni and Umoja communities found in Arumeru district, Kilimanjaro Region (Rural)
Support to primary schools to improve quality and retention Enhanced economic empowerment and entrepreneurship through the promotion of CMMF
Kamamma Integrated Dev’t Initiatives (KIDI) (2010)
Nganana, Maweni and Umoja communities found in Arumeru district, Kilimanjaro Region (Rural)
Community Managed Microfinance
MPDI (2010)
Sepeko Ward, Monduli, Kilimanjaro Area (rural)
Early childhood education
PRIDE Tanzania (2002)
Urban & Rural
Financial and non-financial services
MWDA (2010)
Kwimba District in Mwanza Region (rural)
Early childhood education
Sero Lease and Finance Limited (SELFINA) (2009)
Kibaha (Coastal Region), Financial and non-financial Rujewa(Mbarali District), Kyela, services Mbozi, Magomeni in Dar es salaam City, Mbeya, Mwanza (Urban & Rural)
Tanzania Home Economics Association (TAHEA) (2008)
Ilemela and Nyamagana districts of Mwanza Region (Rural)
Community Managed Microfinance
Tujijenge Tanzania (2007)
Tazara, Kitjitonyama,and Mbagara (Dar-es-Salaam) Mwanza, Musoma (Urban & Rural)
Financial and non-financial services
Tujijenge Microfinance Limited (2009)
Urban and rural
Where? (urban/rural)
TAHEA Mwanza (2004) Ilemela and Nyamagana districts of Mwanza Region (rural and urban) OCODE (2003)
Early childhood education Enhanced economic empowerment and entrepreneurship through the promotion of CMMF
Temeke municipality in Dar-es- Support to primary schools to Salaam (urban) improve quality and retention
Education total expenditure in 2011
NOK 1 749 000
Youth Self Employment Mbagara, Ifakara, Mheza, Foundation (YOSEFO) Kilwa, Dar-es-Salaam and (2002) Zanzibar (Urban & Rural)
Financial and non-financial services
Microfinance total expenditure in 2011
NOK 1 347 000
Disaster response in 2011
NOK 160 000
Total expenditure in 2011
NOK 3 256 000
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MALI
Strømme Foundation (SF) has worked in Mali since 1983. Since 2007, the regional Office in Bamako oversees SF’s action in Mali, Burkina Faso and Niger (additionally, since 2010 SFWA also runs a smaller coordination office in Burkina Faso – see page 32). Our regional office in Mali has a staff of 15. Mali is a large landlocked country, two thirds of which are desert or semi-desert areas. About 80% of Mali’s 14.5 million citizens are engaged in agriculture and around 10% of the population are nomadic. Mali’s economy has been growing around 5% since the mid1990s, but with 77% living on less than 2 USS per day, Mali is ranked among the 25 poorest countries in the world. Only 26% of the adult population can read and write. 27% Malian children in primary school age are not enrolled in school. In 2011, climate problems (droughts, very short rain season, etc.) seriously challenged some of SFWA’s interventions in Mali. For instance in one region, a complete village had to change location because of lack of water – so the Strømme Foundation run literacy programme could not continue. In other places, families were forced to move in search of cultivable land. Their children had to drop out of our education programmes to follow their parents. Strømme Foundation’s additional countries of operation in West Africa, Burkina Faso and Niger face similar challenges. Consequently, SFWA developed three complementary programmes in education and microfinance which are implemented in
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all three countries: The Speed Schools-programme targets children between 8 to 12 years who have either never been in primary school or dropped out; this accounts for more than half of primary-school aged children in Mali, Burkina Faso and Niger. Speed School I students receive an accelerated training for nine months, which allows those who has dropped out of school to be reintegrated into the formal education system again: upon graduation, they proceed directly into 3rd or 4th grade of primary school. And it also gives those who never got a chance to begin in school a chance to start. We have also started a pilot Speed School II program, which is a two year education program giving school dropouts and out of school youths from 13 – 16 years a chance to catch up their primary education in order to continue with first grade of secondary school. In SF’s Community-Managed Microfinance (CMMF) programme, rural groups of women meet on a weekly or two-weekly basis, all members saving a small amount each period. These savings are lent to the members for income generating activities or expenses like for education or health. Some groups also create collective enterprises. CMMF is also a platform for health training like on malaria prevention and treatment and other development activities. Active Literacy is a two year literacy programme for illiterate members of CMMF groups and mothers of Speed School children. The curriculum also includes modules of training in citizenship, good governance, management and local democracy.
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EDUCATION Partner (since)
Where? (urban/rural)
What/Focus on
ACCM (2009)
Kayes & Koulikoro - rural
Education Project through radio
APSM (2006)
Koulikoro & Ségou - rural
Speed School - a nine months education program giving out-of-school children and dropouts from 8 – 12 years, a chance to pass public school entrance exams and continue education.
ODES (2005)
Mopti - rural
Speed School I - Same as above
EVEIL (2008)
Mopti - rural
Speed School I – Same as above and Good Governance
ACEF (2008)
Koulikoro - rural
Speed School I&II, Speed School I - a nine months education program giving out-of-school children and dropouts from 8 – 12 years, a chance to pass public school entrance exams and continue education. Speed School II is a two year education program giving school dropouts and out of school youths from 13 – 16 years a chance to catch up their primary education in order to continue with first grade of secondary school. Active Literacy - A literacy programme for illiterate members of CMMF groups and mothers of Speed School children
AEDM (2005)
Mopti - rural
Speed School I&II (as above)
J&D (2005)
Sikasso - rural
Speed School I&II (as above)
AMASSA/UCTC Afrique Verte (2008)
Bamako & Koulikoro semi-rural
Speed School I&II (as above)
AMPDR
Koulikoro & Sikasso - rural
Speed School I&II (as above)
AMSS (2009)
Tombouctou - rural
Speed School I&II (as above)
CAEB (2005)
Koulikoro & Sikasso - rural
Speed School I&II (as above) and Active Literacy – Classroom Construction
FANDEMA PADRK (2002)
Kayes - rural
Speed School I&II – same as above and Active Literacy
GRAADECOM SF (2008)
Sikasso - rural
Speed School I&II – same as above and Active Literacy
GRIDAC (2008)
Koulikoro
Speed School I&II – same as above and Active Literacy
RAC (2008)
Sikasso, Kayes & Bamako district – rural
Speed School I&II – same as above and Active Literacy
Education Total Expenditure 2011
NOK 11 114 000
ACCM APSM ODES EVEIL ACEF AEDM J&D AMASSA/UCTC AMPDR AMSS CAEB FANDEMA PADRIK GRAADECOM SF GRIDAC RAC LE TONUS STOP-SAHEL
MICROFINANCE Partner (since)
Where? (urban/rural)
What/Focus on
AMSS (2009)
Tombouctou - rural
Community Managed Micro Finance (CMMF) • Active Literacy
CAEB (2005)
Koulikoro, Sikasso – rural
Same as above
J&D (2006)
Sikasso – rural
Same as above
Le Tonus (2005)
Kayes, Koulikoro – rural
Same as above
Stop-Sahel (2007)
Kayes – rural
Same as above
Microfinance Total expenditures 2011
NOK 4 840 000
Total expenditure 2011
NOK 15 954 000
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BURKINA FASO
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In Burkina Faso, Strømme Foundation started its operations in 2007. Since 2010, activities are coordinated from an office in Ouagadougou, run by three permanent staff.
However, almost half of the population still lives under the poverty line. 37% of primary school age children are not going to school and only 29% of the adult population can read and write.
Burkina Faso is a landlocked country, highly dependent on the vagaries of the climate. It is a relatively small country (a bit more than two thirds of Norway), with a mostly rural population of 17 million. 90% of the population are engaged in subsistence agricultural activities.
In 2011 Burkina, Faso went through some socio politic crisis during which forded many families to migrate to different places or abroad. This affected the Strømme Foundation’s Speed School programme, as quite a number of children could not graduate because of migration.
Since 1998, the country has subscribed to a politics of privatisation and pursues strategies to attract foreign investment.
For a description of SF’s activities in Burkina Faso, please see section on Mali.
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AEAD CREDO AFDR ANTBA FDC
EDUCATION Partner (since)
Where? (urban/rural)
What/Focus on
AEAD
North
Speed School I - a nine months education program giving out-of-school children and dropouts from 8 – 12 years, a chance to pass public school entrance exams and continue education.
CREDO (2009)
Central east and central
Speed Schools I&II - same as above
AFDR (2008)
North
Speed School I&II - Speed School I - a nine months education program giving out-of-school children and dropouts from 8 – 12 years, a chance to pass public school entrance exams and continue education. Speed School II is a two year education program giving school dropouts and out of school youths from 13 – 16 years a chance to catch up their primary education in order to continue with first grade of secondary school.
ANTBA (2007)
Central and Central south, Central-north
Speed Schools I&II - same as above
FDC (2008)
Plateau Central
Speed Schools I&II - same as above
Education Total Expenditure in 2011
NOK 2 045 000
MICROFINANCE Partner (since) AFDR (2009)
Where? (urban/rural) Nord
What? Community Managed Micro Finance (CMMF)
ANTBA (2007)
Plateau Central
Community Managed Micro Finance (CMMF)
Microfinance Total expenditure in 2011
NOK 1 385 000
Total expenditure in 2011
NOK 3 429 000
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NIGER
Strømme Foundation has worked in Niger since 2007. The operations are being coordinated from Strømme Foundation’s office in Ouagadougou in Burkina Faso. Niger is a large landlocked country in the Sahel region. Two thirds of Niger’s land is barren, and only one tenth of the land is used for agricultural purposes. Despite this, Niger’s economy is largely agrarian and subsistence-based, and is therefore frequently disrupted by extended droughts common to the region.
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Food security continues to be an issue in the north of the country, aggravated by the return of Libyan migrants. Almost half of the government’s budget stems from foreign donor resources. The situation in Niger is often termed a silent crisis. Niger’s population counts 17 millions, more than half of which are living under poverty line. 46% of the children in primary school age are out of school and only 15% of the women are literate. For a description of SF’s activities in Niger, please see section on Mali.
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RAEDD VIE
EDUCATION Partner (since)
Where? (urban/rural)
What/Focus on
RAEDD (2007)
Tillabéri & Niamey Rural and Urban
Speed School I&II Speed School I - a nine months education program giving out-of-school children and dropouts from 8 – 12 years, a chance to pass public school entrance exams and continue education. Speed School II is a two year education program giving school dropouts and out of school youths from 13 – 16 years a chance to catch up their primary education in order to continue with first grade of secondary school.
VIE (2007)
Dosso rural
Same as above
Education Total expenditures 2011
NOK 1 275 000
MICROFINANCE Partner (since)
Where? (marginal urban/rural)
What/Focus on?
RAEDD (2009)
Dosso - rural
Community Managed Micro Finance (CMMF)
VIE (2009)
Tilaberi - rural
Community Managed Micro Finance (CMMF)
Microfinance Total expenditures 2011
NOK 1 123 000
Total expenditures in 2011
NOK 2 398 000
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BOLIVIA
Strømme Foundation started its operations’ in Bolivia in 1992. The landlocked country has a population of 11 million people. 65% of the population lives in the urban area and 35% rural area. Despite enjoying macro-economic stability and favourable economic opening, Bolivia has not been able to stimulate development or reduce poverty in the country. Bolivia is ranked 108th out of 187 countries with a Human Development Index of 0,663. Almost 60% of the Bolivians live in poverty and 33% in extreme poverty. Extreme poverty affects typically rural, indigenous children and women. Two-thirds of the extremely poor live in rural areas. Potosi, Tarija and Sucre are the worst off, all with more than 60% of the population living in extreme poverty. Poverty has also an ethnic bias: 49% of the indigenous population is extremely poor, against 24% of the non-indigenous. Extreme poverty affects more than 2 million children. This is equivalent to almost half of the child population in the country. Bolivia’s economy is highly dependent on three main sectors: Industry (17% of GDP), agriculture (13%) and mining (12%). The gender gap in employment is high: only 35% of women are employed in non-agriculture activities compared to 65% of men. Women are highly underrepresented in important economic and political positions. In this context of inequalities, poverty means far more than just low income for Bolivians. In the area of education, it means few opportunities, especially among indigenous people of rural
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and marginal urban areas. In rural areas only 4% of men and 2% of women over 19 have higher education, in contrast with the urban area where the corresponding figures are 25% and 20% respectively. The projects supported by SF promote the comprehensive development of children, adolescents and women in the poorest marginal urban and rural areas, addressing the problem of physical and psychological violence and sexual abuse, negligence and abandonment. Sixteen social networks have been established to implement policies that protect children living on the streets or at risk of street. The social and economic inequality, including that between rural and urban areas, creates the condition for conflicts and riots which affects the stability of the country. This unstable political situation is making it difficult for international cooperation to support the country’s development and poverty reduction strategy, and to reach MDG. Another factor that affected the project activities was the high inflation rate, from 2, 5% in 2010 to 10% in 2011, and the depreciation of the dollar against the Bolivian currency. Finally, the obligatory 10% increase in wages and salaries and payment of a solidarity bonus, decreed by the Government in April 2011, severely affected the available budgets of partners. These developments led to the need to seek new funding. This activity affected the distribution of time and led to overwork.
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ALALAY RED VIVA SICOR
EDUCATION Partner (since) Alalay (1994)
Where? (urban/rural) La Paz, Cochabamba
What? Street children (rehabilitation and prevention)
SICOR (2008)
Santa Cruz (urban), La Chiquitanía - Rural
Music schools
Red Viva (2005)
Most major cities countrywide
Quality improvement of child care
Universidad Xavier de Sucre (2010)
Sucre
Journalism workshops
OASID (2011)
Tarvita (Rural)
Vocational Training for rural women
Total expenditure 2011 in NOK
4 854 000
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PERU
Strømme Foundation has worked in Peru since 1990, where it also has established its Regional Office for South America covering Peru and Bolivia. Peru has a population of almost 30 million people, of which more than 75% lives in the bigger cities, nearly 9 million in Lima alone. The annual economic growth in Peru is one of the highest in South America, 7% in 2011. This is due to a stable investment climate and improved prices of its exports especially mining and agricultural products. With a Human Development index of 0,725 (2011), Peru ranks number 81 out of 187 countries. While in 2004 almost half of the population lived in poverty this was reduced to 31% in 2010, of which a third is extremely poor. The majority of the poor people live in rural areas, where Strømme Foundation Microfinance concentrates its efforts. The same rural poverty also triggers a massive migration to the cities. The marginal urban areas are often characterized by high levels of domestic violence, crime, child abandonment, prostitution and alcoholism. Most of the Strømme Foundation’s partners working with youth at risk operate in these areas. The Peruvian school system reaches 95% of all children in primary school age. However, the quality of primary education is among the lowest in the western hemisphere. The situation is worst in rural areas where Spanish is not the first language.
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84% of Peru’s population speaks Spanish as a first language. Quechua (13%) is the main minority languages. Strømme Foundation contributes to the integration of Quechua into the school curriculum in these regions, which has a proven positive impact on the school results. In 2011, the Ministry of Education has sent an orientation to local education authorities and schools nationwide, to identify bilingual schools in the country. This certainly will contribute to bilingual education projects implemented in Huancavelica and Andahuaylas. Peru follows a steady path of decentralization giving more responsibility and budgets to local authorities and organized civil groups through so-called “participatory budgets”. However, due to lack of capacity at regional and local levels, many of these opportunities are not taken advantage of. This is another area of attention of our partners working in these rural areas. With the start of the new administration of President Humala in July 2011, the government has highlighted some important political issues on the agenda. These include promoting economic growth, sustainable use of natural resources and reduction of the gap between rural and urban areas. Unfortunately, Peru’s indigenous and peasant communities, in spite of the political speech, still continue to suffer political marginalisation and discrimination. Insufficient consultation with such groups over political and developmental decisions has fostered feelings of disenfranchisement and led to elevated levels of social conflict.
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LA RESTINGA MIDE PAZ Y ESPERANZA TIERRA DE NINOS AGAPE CEDETEP
EDUCATION Partner (since) La Restinga (2002 )
Where? (urban/rural) Iquitos (marginal urban)
What/Focus on Life skills development for youth, Community development
CEDETEP (2000 )
Lima (marginal urban)
Reintegration of adolescent mothers
Tierra de Niños (2004)
Lima (marginal urban) + Anchonga (rural) Lima (marginal urban) Anchonga district, Angaraes province (rural)
Life skills through art & culture for youth Improve education quality Intercultural Bilingual Education, adult literacy, early childhood development
Niños del Futuro (2008)
Huancayo (marginal urban)
Improve education quality (primary)
Paz y Esperanza (2008)
Andahuaylas province (rural)
Intercultural Bilingual Education (primary)
AGAPE (2007)
Huaycán, Lima Region (marginal urban)
Improve education quality (primary), improve parenting skills
Education Total expenditures 2011:
NOK 5 304 000
MICROFINANCE Partner (since) MIDE (2003) PROMUC
Where? (urban/rural) Cusco and Apurimac department (rural)
What/Focus on Financial and non-financial services
Country-wide (rural and urban)
Institutional capacity building and financial services
Microfinance Total expenditures 2011:
NOK 239 000
Total expenditures 2011
NOK 5 543 000
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Report from the Strømme Foundation Board for 2011 Strømme Foundation (SF) is committed to empowering people to overcome the root causes of poverty. SF’s identity is based on Christian values, emanating from the life and teachings of Jesus Christ. SF plays a catalytic role in empowering the marginalised sections of society to have access to basic needs, resources, and decision-making bodies and thus aim at promoting a just society. Strømme Foundation has its head office in Norway (Kristiansand) and four regional offices in West Africa (Mali); East Africa (Uganda); South America (Peru) and Asia (Sri Lanka) plus two satellite offices in Sudan and Bangladesh. THE BOARD has had 4 ordinary board meetings in 2011 and dealt with 44 issues. The Board had the same Board members as in 2010 with the following members; Svein Ove Faksvåg, Karianne Toppe Angelskår, Asle Jøssang, Olaf Gundersen, Anna Minj, Trond Randøy and Inge Lønning. Substitute members were; Hege Wallevik, Gunvor Andresen and Anja Elise Ø. Husebø (until 30.09). MAIN RESULTS OBTAINED The most important results for Strømme Foundation are those that measure our success in achieving our main goal of eradicating poverty. During 2011 through both Strømme Foundation itself and the Microfinance subsidiary we had an outreach of more than 600 000 people, this splits roughly into 67% microfinance and 33% education, and overall roughly 72% of the people we reached were women. SF’s organizational structure - with ROs collaborating closely with local partners - places special focus on capacity-building and collaboration with governmental counterparts on the national, province and district level. SF aims at assisting Governments in their efforts to achieve universal primary education for all children and eradicate poverty. This implies advocacy for scaling up SF programs, i.e. to reach more children in the Speed schools program in West-Africa, with the respective countries providing financial contributions and taking ownership of the process by integrating these programs in their national strategy plans for education. It also implies to work on cross-cutting issues such as gender equality, i.e. to improve the social and economic situation for adolescent girls in Bangladesh who traditionally have been married at an early age, or women who are exposed to gender based violence in Peru or Uganda. Empowerment of women and men, i.e. encouraging women to take on leadership positions in communities where men traditionally have been taking the lead role, provides women a different status and decision-making power as well as bringing valuable perspectives into the distribution of resources within the communities. The following sub-sections briefly describe results achieved in these areas. MICROFINANCE AND CULTURE SUBSIDIARIES In 2011the Microfinance operations reached over 400 000 people (also included in the consolidated results), female clients make up 81% of this total. We report only clients reached with “our money” as opposed to the total reached by the partners we work with,
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which would be over 6 million people. We are working at developing outcome measures which will describe the effect of these loans in the lives of the poor. This is a challenging task for the whole of the microfinance “industry”, but our plans are to become a centre for competence in measuring outcome. SF also has a controlling Interest (65%) in Mimeta AS, the first Norwegian organization specializing in the sector of culture and development, and this is also shown in the consolidated accounts.
Financial Headlines CONSOLIDATED ACCOUNTS There was a consolidated deficit of -8.8 m NoK compared to a 10.6 m NoK surplus in 2010. The big difference between the years is the large currency variations in the value of the microfinance portfolio which is held in local currency but stated in Norwegian kroner. Total equity decreased from 169.1 m NoK in 2010 to a 159.0 m in 2011. The cash flow from operational activities is satisfactory; total liquid funds at the year end were 28.5 m NoK in the accounts but this excludes SMF AS that has been consolidated using the Equity method. Liquid funds in SMF AS total 23.3mNoK. STRØMME FOUNDATION The total income in 2011 was 121.6 m Nok compared to 131.8 m Nok in 2010. Public Sector income decreased from 53.3 m Nok in 2010 to 50.0 m Nok in 2011 - the difference being mainly a reduction in locally sourced grants from the Norwegian Embassy in Sri Lanka and from UNDP for Sudan. Private Donations have decreased from 63.7 m Nok in 2010 to 51.2 m Nok in 2011, mainly due to the Haiti campaign and large legacy gifts received in 2010, otherwise private regular income is reasonably stable. Contribution from other organizations increased from 5.2 m Nok in 2010 to 10.7 m Nok in 2011. This is due to a combination of a number of small grants plus a large increase in income from Operasjon Dagsverk. Financial support to projects increased in 2011 from 104.6 m Nok to 108.4 m Nok. The result for the year after change in earmarked capital was a loss of 0.2 m Nok compared to a 2.7 m Nok surplus in 2010. The key figures for SF as a percentage of total costs in 2011 are: Administration 4.3% (5.1 % in 2010); Fundraising 11.6% (13.4% in 2010); and Purpose 84.1% (81.5% in 2010). WORKING ENVIRONMENT AND STAFF The working environment in the SF is considered to be good. The cooperation with the employee’s unions has been constructive and has contributed positively to the development work. Absence due to illness at the head office was approximately 3.6 % (6.7 % in 2010) of the total working time. The organization has a company health service agreement. There were no serious accidents at work resulting in material damages or personal injuries during the year.
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In 2010 there were 5 (5 in 2010) men and 2 (3 in 2010) women in the Board. Among the employees at the head office at the end of the year there were 13 (15 in 2010) women and 17 (21 in 2010) men, and 22 (17 in 2010) women and 56 (50 in 2010) men worked in the regions. On the leadership team, comprising the senior managers at head office plus the regional directors, there were 5 men and 3 women. SF strives for a balance of gender at all levels and is conscious about this when employing new staff. The organizations contamination of the external environment will mostly be of an indirect nature. The Board considers this to have minimal contamination effect on the external environment. The organization has no order from the public authorities that has not been complied with. Strømme Foundation has an international staff and recruitment processes and working environment in all offices are intended to ensure that there is no discrimination on the grounds of race or disability. RISK PERSPECTIVE The Board continue to monitor SFs risk through quarterly reporting, more focus has been given during 2011 on deviation reporting to the Board and on preventing corruption in SF and its partners. The organisation has established good systems and had good dialogue with donors when suspected corruption cases are uncovered. One corruption case with a long term Kenyan partner of Strømme Foundation has had some profile in the Norwegian media and SF has had some public criticism for how the case was handled. However the majority of coverage was positive or neutral, and the Board believes SFs reputation has not been damaged. SFs expenditure is largely in currencies linked to the US dollar or the Euro, and with most income in Norwegian kroner exchange rates play a large part in what SF is able to deliver to partners in the South. However, given the nature of SFs agreements with these partners, it is not SF that takes the financial risk but
the partners themselves. During 2011 SF entered into fixed exchange rate contracts in order to secure the budgets at the favourable exchange rate between the Norwegian kroner and the US dollar. Strømme Foundation has no external borrowing, so there will be no serious consequence for the organization if the interest rates should increase considerably. The credit risk is restricted to the microfinance operations in SMF AS. Microfinance operations are exposed to credit risk and country risk. Due to the monitoring system and diversification of the portfolio, the Board believes that the credit risk is reduced to an acceptable and manageable level. The specific country risk cannot be influenced directly by the company but the sum of country risks has been reduced through the company’s strategic decision of spreading its activities over several countries. FUTURE PERSPECTIVE The Board has good reason to believe that Strømme Foundation is a going concern. The results from 2011show that there are fluctuation in income dependent on SFs involvement in relief work (Haiti in 2010) and on legacies, where income fluctuates a lot. The underlying regular income is stable and SF are seeking new sources of funding from foundations in order to grow the income more sustainably. The Board believes SF are in a good position to respond to changes in the market for funds, whether they come from competitors or from general economic circumstances. ALLOCATION OF THE RESULT Of SFs overall deficit of 5.8 m NoK, 5.6 m is taken from restricted equity and 0.2 m from unrestricted retained earnings. The consolidated accounts show a loss of 8.8 m NoK; 17.4 m NoK is taken from restricted equity and 8.6 m NoK transferred to consolidated unrestricted equity.
Kristiansand, 7 June 2012
Asle Jøssang Board Member
Anna Minj Board Member Svein Ove Faksvåg Chairman of the Board
Inge Lønning Board Member
Gunvor K. Andresen Deputy Board Member
Olaf Gundersen Board Member
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Strømme Foundation Activity Account
Strømme Foundation Strømme Foundation Consolidated Consolidated Note 2011 2010 2011 2010 Note Funds acquired 2 50 046 903 53 351 637 Public sector grants 51 108 700 56 148 706 3 10 735 996 5 152 817 Grants from other organisations 10 735 996 5 956 137 4 51 166 049 63 747 734 Private donations 51 166 049 65 838 361 5 9 089 170 8 857 256 Corporate sector 9 089 170 6 766 629 6 452 366 506 754 Financial income 476 628 522 581 72 220 194 424 Other income 86 970 320 226 121 562 704 131 810 622 Total funds acquired 122 663 513 135 552 640 Funds spent Cost of fund acquisition -12 622 914 -14 523 188 Direct fundraising cost -12 622 914 -14 523 188 -2 374 752 -2 635 803 Other fundraising cost -2 964 770 -3 778 518 -14 997 666 -17 158 991 Total cost of fund acquisition -15 587 685 -18 301 706 Purpose cost 7 -68 232 089 -64 482 439 Support to development partners -59 032 511 -55 896 909 8 -4 857 657 -3 243 556 Disaster response -4 857 657 -3 243 556 9 -17 728 487 -17 893 735 Program follow up at regional offices -17 728 487 -17 893 735 10 -9 846 888 -9 801 577 Program follow up at Head Office -8 705 650 -7 417 897 11 -7 780 331 -9 168 333 Information and public education -8 173 663 -9 484 328 Project support - Mimeta -2 880 463 1 157 120 -108 445 453 -104 589 640 Total purpose cost -101 378 431 -92 779 305 27 -5 505 743 -6 518 464 Administration cost -6 095 761 -7 661 179 -128 948 861 -128 267 095 Total funds spent -123 061 877 -118 742 190 13 1 563 662 VAT compensation 1 563 662 Result Microfinance (MF) -9 982 354 -6 183 217 -5 822 495 3 543 527 The year’s activity result -8 817 056 10 627 233 29 Hereof minorities’ share (Mimeta) 83 069 180 824 Additions/reductions in purpose capital 14 B -5 582 684 802 903 Change in purpose capital with restrictions -7 442 413 3 416 611 Change in purpose capital with restrictions (MF) -9 982 354 -6 183 217 14 -239 811 2 740 624 Transferred to / (from) other purpose capital 8 607 711 13 393 839 -5 822 495 3 543 527 Total additions/reductions in purpose capital -8 817 056 10 627 233 29
Strømme Foundation Balance Sheet 31.1
Strømme Foundation Strømme Foundation ASSETS Consolidated Consolidated Note Note 2011 2010 2011 2010 Long term assets Fixed assets 8 316 763 8 644 010 Property 8 316 763 8 732 600 19 3 267 477 3 264 220 Property development 3 267 477 3 264 220 592 185 545 778 Office furniture and equipment 592 185 457 188 15 12 176 425 12 454 008 Total fixed assets 12 176 425 12 454 008 Financial assets 16 A 37 459 847 37 459 847 Investment in subsidiaries - - 16 B 305 000 200 000 Investment in other companies 347 940 242 940 Investment in microfinance 123 579 015 126 829 634 28 17 72 210 100 73 435 270 Loan to subsidiaries - - 18 - 274 048 Pension scheme (overfinanced) - 274 048 109 974 947 111 369 165 Total financial assets 123 926 955 127 346 622 122 151 372 123 823 173 Total long term assets 136 103 380 139 800 630 Receivables 1 645 917 1 633 869 Trade Debtors 1 645 917 1 633 869 134 000 234 500 Prepaid expenditure 134 000 234 500 286 252 31 364 Intercompany receivables - - 1 295 426 1 183 441 Other receivables 1 342 426 1 228 638 3 361 594 3 083 174 Total receivables 3 122 343 3 097 007 20 929 613 30 000 Investment in current financial assets 929 613 30 000 21 27 055 270 32 227 472 Bank and cash 28 564 627 34 687 040 31 346 477 35 340 646 Total current assets 32 616 582 37 814 047 153 497 850 159 163 822 TOTAL ASSETS 168 719 966 177 614 680
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Strømme Foundation Balance Sheet 31.12 Strømme Foundation Strømme Foundation PURPOSE CAPITAL AND LIABILITY Consolidated Consolidated Note 2011 2010 2011 2010 Purpose capital (PC) 3 326 092 3 326 092 Founding capital 3 326 092 3 326 092 Acquired purpose capital 14 B 6 437 485 12 020 169 PC with restrictions (SF projects) 6 437 485 12 020 169 106 882 512 106 882 512 PC with restrictions (Microfinance) 102 965 070 113 512 423 - Restricted equity (Mimeta) 852 439 2 061 262 Minority interests 459 005 1 109 911 27 082 553 27 562 175 Other purpose capital 44 970 408 37 105 479 140 402 550 146 464 856 Total acquired purpose capital 155 684 407 165 809 244 14 143 728 642 149 790 948 Total purpose capital 159 010 499 169 135 336 Liability Long term debt 18 506 851 799 140 Pension obligations 506 851 799 140 150 000 150 000 Legacy obligations 150 000 150 000 1 982 527 1 963 224 Staff gratuities in regional offices 1 982 527 1 963 224 105 000 131 222 Other long term debt 105 000 131 222 2 744 378 3 043 586 Total long term debt 2 744 378 3 043 586 Short term debt 2 030 491 1 824 972 Creditors 2 030 491 1 824 972 1 848 038 1 619 488 Public duties & taxes 1 848 038 1 619 488 107 786 923 827 Intercompany debt - 923 868 - Deferred project income 923 868 1 874 836 1 961 001 Other account payable 2 162 689 1 991 295 6 785 019 6 329 288 Total current liability 6 965 086 5 435 755 9 529 397 9 372 874 Total liability 9 709 464 8 479 341 153 258 039 159 163 822 TOTAL PURPOSE CAPITAL AND LIABILITY 168 719 963 177 614 677
Kristiansand 7th June 2012
Asle Jøssang Board Member
Svein Ove Faksvåg Chairman of the Board
Inge Lønning Board Member
Anna Minj Board Member
Gunvor K. Andresen Deputy Board Member
Olaf Gundersen Board Member
Torill Selsvold Nyborg Board Member Øyvind Aadland Secretary General
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Strømme Foundation cash flow (The indirect method) Note 2011 2010 The year’s activity result -5 822 495 3 543 527 Ordinary depreciation 15 551 938 602 046 Loss at disposal of fixed assets 30 757 Difference between pension cost and payments -18 241 -703 490 Posts in the activity account without liquidity effect 564 454 -101 444 Acquisition of fixed assets 15 -301 853 -541 074 Acquisition of shares in subsidiaries 16 -100 000 Property development Lillesand -3 257 -44 521 Changes in loan to subsidiary 17 1 220 170 -382 605 Changes in long term debt -6 919 386 836 Investments, disposals and financing 808 141 -581 364 Changes in receivables/other current assets -278 420 337 160 Change in creditors/other short term debt -468 137 -878 384 Deferred project income 923 868 Other changes 177 310 -541 224 Total changes in liquidity during the year -4 272 591 2 319 494 Opening balance of cash and current financial assets 1.Jan. 21 32 257 473 29 937 978 Closing balance of cash and current financial assets 31. Dec. 27 984 882 32 257 472 The balance consists of bank deposits,cash holdings and current financial assets Unused overdraft facility 1 000 000 1 000 000
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Accounting Principles applied The financial statements of the Strømme Foundation (SF) are prepared in accordance with the Norwegian Accounting Act and the “Accounting Standard for Not-forProfit organisations” from 2008, produced by The Norwegian Accounting Standards Board. This means that, in place of a traditional Profit and Loss Account, there is an Activity Account which is meant to give the reader a better understanding of how Strømme Foundation has used the resources at its disposal. Allocation of costs Fundraising and Information All expenditure directly connected to personnel employed as fundraisers, and to solely fundraising activity, is classified 100% as a fundraising cost. This includes all direct marketing costs and other costs associated with our main fundraising products “Friend at Heart” and “Bridge Builder”. All expenditure on personnel and activity whose prime purpose is connected to information and public education is allocated to purpose activity. The Regional Offices Strømme Foundation has four regional offices; in West Africa (Mali); East Africa (Uganda); South America (Peru) and Asia (Sri Lanka), plus three satellite offices in Sudan, Bangladesh and Nepal. The full cost of these offices is allocated as purpose cost. Support for programme work from Head Office From 2009 all the costs of the “International Department” are allocated to activity and are purpose costs. The department’s function is to co-ordinate, support, evaluate and monitor all programme work, as well as liason with public and institutional funding bodies such as NORAD, The Norwegian Peace Corps, Operation Dayswork and Eriks Foundation. Other support functions at Head Office These consists of “Secretariat of the General Secretary”, Administration-, Finance- and ICT department. The basis of allocation starts with salaries, which are allocated according to an estimate of the amount of time spent on different activities. Costs that cannot be reasonably and consistently allocated to activity, are classified as administration costs. Thus, support costs relating to the Board of SF, audit costs, general memberships, consultancy, finance costs and about 50% of staff costs in the secretariat, administration and finance departments are classified as administration costs. The table below shows in summary how the allocation has been made. Note 1 - Allocations basis Department Total Admin Fundraising Purpose Secretariat, Administration-, Finance- & ICT department 13 780 472 5 505 743 2 374 752 5 899 978 Communications Department 18 312 983 0 12 499 311 5 813 672 International Department 5 904 229 0 123 603 5 904 229 Disbursements to Implementing Partners and Regional Offices 90 951 177 0 0 90 951 177 TOTAL 128 948 862 5 505 743 14 997 666 108 445 453
Comments / Allocations basis Some direct allocation to admin, rest allocated on HO salary basis Allocation on the basis of activity Mostly purpose activities All purpose
Transactions in Foreign currency Costs outside Norway are recorded at the exchange rate relating to the corresponding transfers from Head Office. All regional offices’ accounts are recorded at Head Office monthly, using the same rates. SF enters into forward exchange contracts in foreign currency to reduce the currency exposure connected to money transfers abroad. The currency hedging is classified as securing of cash flow according to the NRS standard “Financial assets and obligations”. The cash flow securing is reflected through not applying realised or unrealised profit and loss on the security instrument in the result before the underlying security product affects the activity account. Foreign currency income is recorded at the spot rate on the day of receipt. Income Income is entered in the accounts according to the gross method. Costs are entered as they accrue, and income when it is realised. Bequests or donations are recorded as income when there is indisputable confirmation of receipt. SF follows special guidelines concerning earmarked funds, which ensures that these funds cannot be used for activities other than those for which they were donated without specific approval. The Board has set regulations for the handling of earmarked funds when a project is closed. Unused earmarked funds are shown as purpose capital with restrictions in the balance sheet. Classification and Valuation of Balance Sheet Items Current assets and short-term liabilities contain items due for payment within one year after acquirement. Other items are classified as fixed / financial assets or long-term liabilities. Current assets are valued at the lowest of procurement cost and actual value. Other accounts receivable are included in the balance sheet at face value after deduction of provision for expected loss. Items in foreign currency are valued at year end exchange rates. Short-term liabilities are recorded at the nominal amount at the time of accrual. Fixed / financial assets are valued at procurement cost, but are depreciated to actual value if the fall in value is not expected to be temporary. Long-term debt is entered at the nominal amount at the time of establishment. Fixed assets The fixed assets are entered in the balance sheet and depreciated over their life span if the life span is more than 3 years and the cost is higher than NOK 50 000. Maintenance of fixed assets is charged to operating costs, while renovation or upgrading is added to the cost value and is depreciated along with the asset. At the regional offices all fixed assets are charged to result at the time of procurement. Shares in Subsidiaries and other Companies Shares in subsidiaries and other companies are recorded at historic cost. Short-term Investments Short-term investments (shares and share units considered to be current assets) are valued at the lowest of average procurement cost and actual value in the balance sheet. Received interest and dividend from the companies are entered as other financial income. Pensions Pension costs and the pension obligations are calculated according to the principle of linear earning based on estimated factors for the discount rate; future regulation of salary, pensions and contributions from Social Security, future earnings on the pension fund as well as the actuarial conditions concerning death rate, voluntary resignations, etc. The pension fund is valued according to actual value and is deducted from the net pension obligations in the Balance Sheet. Changes in the obligation due to changes in the pension plans are allocated over the expected remaining contribution period. The same applies to estimate deviations to the extent they exceed 10% of the greater of the gross pension obligations and the pension funds. Arrangements with net obligation are shown as liability and arrangement with net over-financing is shown as financial asset. Consolidation principles The consolidated accounts includes those companies where Strømme Foundation directly or indirectly has deciding influence. The consolidated accounts are prepared as if the group was one economic unit. Transactions and outstandings between the companies in the group are eliminated. The consolidated accounts
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are prepared according to uniform principles. Purchased subsidiaries are accounted for in the consolidated accounts based on SF’s procurement costs. The acquirement costs are linked to identifyable assets and debt in the subsidiary, which is stated at actual value in the consolidated accounts at the time of purchase. Investments in microfinance are valued according to the equity method in the consolidated accounts. The equity method requires that proportion of the relevant companies result, reduced by depreciation on possible excess values, is charged to the activity account in the consolidated accounts. Both the purpose capital to and the mother company’s lending to the microfinance activity are incorporated in the accounts line “Investments in microfinance”. Minority interests are shown as a separate post under the purpose capital. This causes that assets and debt are stated inclusive of the minorities share. In the activity account the minorities share of the result is calculated. Note 2 – Public Sector Grants A new 4-year framework agreement is made with Norad for support to information work by NOK 1 million annually. The Peace Corps supported exchange programme in Asia was phased out in 2010, while a new exchange programme with South Sudan was established in 2011. Donor Norwegian Agency for Dvlpm. Coop. (NORAD) Norwegian Agency for Dvlpm. Coop. (NORAD) Norwegian Ministry of Foreign Affairs (MFA) Norwegian Ministry of Foreign Affairs (MFA) United Nations Development Program (UNDP) United Nations Children’s Fund (UNICEF) United States Agency for Intl Dvlpm (USAID) World Food Program (WFP) Swiss Agency for Development & Coop. (SDC) EU/Danish Church Aid (DCA) The Norwegian Peace Corps – Young The Norwegian Peace Corps The Norwegian Peace Corps The Norwegian Peace Corps The Norwegian Peace Corps Cultiva, Kristiansand, Norway The Research Council of Norway Total
Purpose Development Programmes Information Activities Restoration and Recovery - Sri Lanka Country strategy/assessment – Sudan Education Intervention - Sudan Speed School Programme - Mali Education programme - Northern Upper Nile Education programme - Northern Upper Nile Speed School Programme - Mali Food Security and Livelihood - South Sudan Act Now Programme - Hald International Centre South/South Exchange Programme - East Africa South/South Exchange Program - Asia Feasibility Study, HTPV – South Sudan Exchange programme, HTPV – South Sudan Cultural Initiative, Strømme Foundation Production of Microfinance presentation films
2011 2010 40 700 000 40 700 000 991 998 925 000 - 3 378 332 311 000 1 738 240 2 763 931 385 665 170 503 67 669 - 98 860 1 040 025 503 551 218 621 236 363 1 800 000 1 820 000 1 690 961 1 493 724 - 238 757 39 354 55 950 733 046 - 300 000 333 334 666 666 50 046 903 53 351 637
These grants are earmarked to specific projects and are shown gross including the administrative support element. Settlement with the donor is made in arrears once a year. Unused capital must be returned. The current framework agreement with NORAD (2009/2013) requires a minimum contribution of 10 % from Strømme Foundation, and allows up to 8% administration support on the project cost. For MFA, UNDP and Peace Corps funded programmes there are budget agreed support to programme follow up. Note 3 – GRANTS from Other Organisations Institution Purpose Operation Dayswork, Norway Empower girls to become masters of their own life – Bangladesh Läkarmissionen, Sweden Saving- and credit groups capacity building – Uganda Erikshjälpen, Sweden Speed Schools, Mali Erikshjälpen, Sweden Rehabilitation of conflict affected children, Sri Lanka Erikshjälpen, Sweden Education and community development, Bangladesh Geneva Global, USA Girls empowerment programme, Nepal Turing Foundation, The Netherlands Speed Schools, Niger The Millennium Promise Allicance, USA Speed Schools, Mali Futuro Bolivia, Norway Occupational training for women, Bolivia Capital for Good, England Speed Schools, Burkina Faso Läkarmissionen, Sweden Food Aid, Niger Total
2011 2010 6 888 468 3 835 220 688 229 457 141 1 248 917 649 436 637 984 72 927 422 041 329 443 287 589 39 523 - 39 830 - 171 189 10 735 996 5 152 816
The escalation in the Shonglap-programme in Bangladesh financed by Operation Dayswork continued in 2011. Several organisations have increased their support for the Speed School programmes in West Africa and new donors have been added. We have entered into agreements lasting for several years with Erikshjälpen and Geneva Global to support projects in our Asian cooperation countries. Note 4 - Private Donations Donor category Individual donations Fixed-term donations (Friend at Heart, Bridge Builder, Powerty Buster etc.) Events, schools and artists Testamentary donations Disaster Relief & Rehabilitation Total
2011 7 678 453 37 148 592 3 482 063 1 713 270 1 143 670 51 166 049
2010 11 294 876 37 463 069 3 416 027 5 759 994 7 904 395 65 838 361
The private sector income is relatively stable. The overall reduction in private donations from 2010 to 2011 is first of all due to less legacy gifts and the extraordinary campaign to aid the Haiti earthquake victims in 2010. Note 5 – Corporate sector This income comes from our cooperation with the corporate sector and sports clubs. We define the cooperation within three categories. A ”Main partner” contributes NOK 500 000 or more, a ”Plus partner” between 100 000 and 499 000 and a ”Partner” from 15 000 to 99 000. In 2011 we had three Main partners, Agder Energi, Skagerak Energi and the Kavli Foundation. Their accumulated donations comprises more than NOK 5 mill. Our largest sports cooperation partner is IK Start through their organisation Start Life Support. Note 6 – Other Financial income/expenditure Financial Income Other interest income Net financial income – Regional Offices Other finance income Other finance cost Total Net currency gains/loss in purpose Currency Exchange Gains Currency exchange losses Net gains shown in purpose costs
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2011 487 477 - 18 787 -53 898 452 366
506 754
343 193 -182 694 160 499
737 720 -715 501 22 219
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2010 427 317 33 970 45 467
Note 7 – Programme support to partners Country/Region 2011 2010 Bangladesh 8 953 136 5 890 469 Sri Lanka 5 446 990 7 548 794 Nepal 941 591 India - 115 620 Asia 15 341 717 13 554 883 Uganda 6 796 777 5 137 462 Tanzania 2 700 136 4 014 158 South Sudan 6 401 425 5 905 536 Kenya 7 276 427 6 952 471 Rwanda - 52 126 East Africa 23 174 764 22 061 753 Mali 11 715 749 10 777 675 Burkina Faso 2 800 246 2 161 022 Niger 2 029 286 1 447 851 West Africa 16 545 281 14 386 548 Peru Bolivia South America Act Now KRIK / CHRISC Microfinance films Culture - MIMETA Global Net currency (profit) / loss Total Note 8 – Disaster response Country (reason) Haiti (earthquake) Niger (drought) Uganda (drought) Tanzania (drought) Sudan (drought) Total
4 092 459 4 210 777 8 303 236 1 809 808 630 000 500 000 2 280 000 5 219 808 -352 717 68 232 089
2011 4 359 781 - 271 376 135 900 90 600 4 857 657
4 731 705 3 673 252 8 404 957 1 845 170 630 000 1 500 000 2 291 250 6 266 420 -192 121 64 482 439
2010 2 698 716 544 840 3 243 556
SF is not present in Haiti on its own, but channeled in 2010 the funds raised for aid to people affected by the earthquake through our cooperation partners World Relief (USA) and Geneva Global (USA). In 2011 the support has gone to various training, rehabilitation and house construction in cooperation with Tearfund (UK), Woord en Daad (NL), ZOA Vluchtelingenzorg (NL) and Dialogo Dominico Haitiano (DR). The drought on the Horn of Africa also affected areas in the East African countries where we operate, and altogether five of our regular partners have received support to safeguard food availability for the beneficiaries in the projects. Preventive work for food security continues in 2012.
Note 14 - Changes in purpose capital (PC) Strømme Foundation Founding Capital PC with restrictions (SF projects) PC with restrictions (Microfinance) Other purpose capital TOTAL PURPOSE CAPITAL
Note 9 – Programme follow up at regional offices Region 2011 2010 Asia (Bangladesh, Sri Lanka, Nepal) 5 100 136 4 668 322 East Africa (Uganda, Tanzania, South Sudan) 5 298 728 5 190 583 West Africa (Mali, Burkina Faso, Niger) 5 236 262 6 059 812 South America (Peru, Bolivia) 2 093 361 1 975 018 Total 17 728 487 17 893 735 Note 10 – Programme follow up at head office Department 2011 2010 Programme department 4 129 447 4 815 202 Microfinance department (SMF AS) 1 784 123 1 826 427 Shared support services 3 933 319 3 159 948 Totalt 9 846 888 9 801 577 Note 11 – Information and public education work The communication department has two purposes: fundraising, and information and public education work. In addition to reports from the projects in the South to donors through our magazine Help for Selfhelp, this part of our work includes activities particularly targeted towards confirmands, schools, corporate sector and media. The primary focus is development issues rather than fundraising. The Norad grant of NOK 1 mill. for information work covers part of the costs of certain activities. Note 12 – Key figures information Purpose percentage Administration percentage Fundraising percentage
2011 2010 2009 84,1 % 81,5 % 84,4 % 4,3 % 5,1 % 5,0 % 75,1 % 76,4 % 77,9 %
The purpose percentage shows how much of total funds spent have been used to fulfil SF’s purposes. This is pretty stable at a high level. The administration percentage represents unallocated administration costs (general admin, accounting, audit, ICT, Board & Council) compared to total funds spent. The reduction in this percentage in 2011 derives both from lower costs and that a bigger part of financial control costs are allocated directly to purpose activities. The fundraising percentage shows how much of private funds raised (private donations & corporate sector), after deducting cost of funds acquisition, which have been used for purpose activities. Public sector and other organisations grants, financial and other income are not included in the calculation basis. This percentage has fallen a little in 2011 as a consequence of lower income from private sector. The Norwegian Control Committee for Fundraising’s guidelines requires key figures for the last five years, but in the transition period after implementing the new accounting standard this can be expanded until figures of comparable allocation basis are available, and therefore we only show three years here. Note 13 – VAT compensation The current legislation relating to VAT provides a facility for voluntary organisations to apply in arrear for compensation of VAT paid. Received VAT compensation in 2011 is based on the total funds spent in 2010, and is recorded as income in the accounts, but stated on a separate line as extraordinary supply of funds in the activity account. No claim of outstanding VAT is recorded in the balance sheet for 2011. The accounts are charged inclusive of VAT, and compensation for VAT will be recorded as income in 2012.
Change During 2011 31/12/2010 3 326 092 12 020 169 -5 582 684 See note 14 B below 106 882 512 - 27 562 175 -239 811 SF Result for 2011 149 790 948 -5 822 495
31/12/2011 3 326 092 6 437 485 106 882 512 27 322 364 143 968 453
A substantial part of fundraised capital is linked directly to projects. Many of these are also financed through public sector grants. After the allocation of public sector grants according to the terms of the cooperation agreements, the fundraised capital is used to cover SF’s own share. From year to year the usage of fundraised capital for specific purposes will vary, leaving remaining balances on running projects. Balances of closed projects will be reallocated to other projects according to agreed guidelines. After covering the project costs for 2011, the purpose capital with restrictions decreased by NOK 5.6 mill. Use of rest balance from the funds raised for victims of the Haiti earthquake makes out the biggest single reduction by NOK 4.3 mill. w w w . s t r o m m e . o r g \ S T R Ø M M E F O U N D AT I O N A N N UA L R E P O R T 2 0 1 1
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Note 14 B - Changes in purpose capital with restrictions (SF projects) Funds Opening received Region / project / donor balance 2011 2011 Restoration and Recovery (Dream) - Sri Lanka / MFA
Funds spent Closing 2011 balance 2011 Type of restriction
1 218 252
Shonglap - Bangladesh / Operation Daysw ork
436 237
Shonglap, Bangladesh / Corporate Sector, private donations
375 000
Girls empow erment programme - Nepal / Geneva Global
6 671 292
-1 218 252 -6 501 082
289 935
-525 000
139 935 Reserved for Shonglap programme
422 042
-204 915
217 127 Reserved agreed partner / project 489 888 Reserved agreed partner / project
Rehabilitation of conflict affected children, Sri Lanka / Eriks
-
637 984
-148 096
-
72 927
-49 195
Programmes in Nepal / Corporate sector
-
417 013
-104 842
Sum Asia Saving- and credit groups – Uganda / Läkarmissionen South/South Exchange Programme / Peace Corps Holy Trinity Peace Village - South Sudan / School Jonglei Social Economic Support / UNDP Food Security and Livelihood - South Sudan / EU - DCA Mathare Youth Sports Org., Kenya / Schools, community
4 135
17 688
-21 823
2 033 624
8 528 880
-8 773 205
700 316 -
688 229
-670 251
1 690 961
-1 104 673
17 978 Reserved agreed partners 1 286 604 Unspent funds to be returned after audit
188 333 -1 763 749
235 102
218 621
-267 591
186 132 Unspent funds to be returned after audit 260 221 Reserved agreed partner
652 484
-392 262 -4 274 582
Naboisho Base Camp, Kenya / Krsd. Dyrepark
83 243
271 751
-354 994
-
689 064
-392 355
-
-
2 203 060
Speed schools, Burkina Faso / Capital for good
30 120
Speed schools, Burkina Faso / Kavli Foundation
500 000
Speed schools, Niger / Turing Foundation
Reserved acivities in Sri Lanka
206 962
3 867 124
Sum East Africa
-
1 789 300 Region Asia
1 738 240
1 158 890
Drought response East Africa / Private donations
23 732 Reserved agreed partner / project 312 171 Reserved acivities in Nepal
25 509
Jamii Bora Kaputiei housing / Corporate sector Exchange programme, HTPV – South Sudan / Peace Corps
Unspent funds to be returned after audit
-
Education and community development, Bangladesh / Eriks Activities in Sri Lanka / Corporate sector , schools
-
606 447 Unspent funds belongs to the programme
-
1 031 817
-530 326
11 055 252
-9 562 449
850 000
18 629 Reserved agreed partner -
751 432 Reserved agreed partner / project -
329 443
-219 580
1 179 443
-1 099 700
Reserved agreed partner / project
296 709 Unspent funds to be returned after audit 501 491 Reserved food security for agreed partners
3 319 195 Region East Africa -
-30 120 -850 000
Unspent funds to be returned after audit
Reserved agreed partner / project
500 000 Reserved agreed partners, periodised 109 863 Reserved agreed partners, periodised
Sum West Africa
530 120
Children's education in Peru / Testamentary gift
1 115 085
-
-1 115 085
-
Reserved childrens education
895 732
-
-895 732
-
Reserved education / street children
Partner Alalay, Bolivia / Friend and Heart Youth cultural house, Peru / Corporate sector
Sum South America Earthquake disaster Haiti 2010 / Private donations General secretary's disposition / Individual gift Microfinance films / The Research Council of Norw ay
30 216
126 105
-56 887
2 041 033
126 105
-2 067 704
4 331 001
12 484
-4 343 485
714 665
5 028
-100 000
166 666
333 334
-500 000
Sum Global
5 212 332
350 846
-4 943 485
Grand total
12 020 169
21 240 526
-26 446 543
Note 15 – Fixed Assets Property Cost price 01//01/11 290 000 Acquisitions 2011 - Disposals 2011 Cost price 31/12/11 290 000 Accumulated depreciation 31/12/11 - Book value 31/12/11 290 000 The year’s ordinary depreciation - Depreciation rates 0 %
Business Premises 14 508 013 - 29 157 14 478 856 6 452 095 8 026 761 298 092 2 -10%
609 863 Region West Africa
99 434 Reserved agreed partner / project
99 434 Region South America -
Reserved aid / rehabilitation, Haiti
619 693 Reserved special needs -
Reserved presentation films
619 693 Global 6 437 485
Furniture and equipment 1 423 573 301 853 1 600 1 723 826 1 131 641 592 185 253 846 20-30 %
Total 16 221 586 301 853 30 757 16 492 682 7 583 736 8 908 946 551 938
Strømme Micro Finance AS (SMF AS) is titleholder for the building site and business premises, with exception of one unit that SF is titleholder of. Since SF operates with an accounting principle to expense all equipment under NOK 50 000, the majority of the inventory is not included under fixed assets in the balance sheet. For the same reason, most fully depreciated assets do not appear here. All equipment in the Regional Offices is recorded as project cost. Note 16a – Investments in Subsidiaries Name Number Nominal value Owner share Book value in SF Result in subsidiary 2011 Equity in subsidiary 31/12/11 Strømme Micro Finance AS 10 500 1 000 37 329 847 -2 195 262 48 928 337 Mimeta AS 26 5 000 65 % 130 000 237 340 1 311 144 Total investment in subsidiaries 37 429 847 -1 957 922 50 239 781 Strømme Micro Finance AS, with its main office in Kristiansand, is a wholly-owned subsidiary of SF. The company conducts the microfinance activities on behalf of SF and submits its own annual report. In 2011, the company operation was subsidised with a grant of NOK 1 795 000 from SF. SMF AS has also received loan portfolio capital of NOK 2.0 mill from SF, and subsidiaries of SMF AS is granted refund of project support of NOK 5.0 mill from SF. Mimeta AS, Centre for international culture development, has also got their office in Kristiansand, and is owned together with Vest-Agder County. The company manages SF’s efforts in international culture development. Mimeta got grants of altogether NOK 2 280 000 from SF in 2011. Note 16 b – Investments in other Companies Name Number Nominal value Owner share Book Value in SF Result in the company 2011 Equity in the company 31/12/2011 Hald International Centre BA 200 1 000 33 200 000 528 378 3 165 582 Luntevika Eiendom AS 100 1 000 50 105 000 -369 778 -271 012 Total 305 000 158 600 2 894 570 The joint venture Hald International Centre (HIC) was in 2004 officially registered as a company with limited liability with its Head Office in Mandal. Strømme Foundation’s share in ownership and votes is 1/3. The objective of HIC is giving courses and training for work within mission organisations, evangelisation and development work, as well as for exchange programmes in different parts of the world. HIC is a Not-for-Profit organisation and cannot give dividends to the owners. HIC is responsible for the Peace Corps grant of NOK 1 800 000 in 2011 for SF’s exchange programme Act Now.
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Luntevika Eiendom AS, with office in Kristiansand, is owned in fellowship with Kaspar Strømme Eiendom AS. The company is established for facilitating a commercial sale of the residential housing property in Luntevika, Lillesand. It is agreed to put additional capital into the company in 2012. Note 17 – Financial assets “Loan to subsidiaries” of NOK 72 210 100 is a free, sub-ordinated loan to Strømme Micro Finance AS. In 2011 NOK 1 225 171 was refunded to SF and given as programme support to saving- and credit groups in West Africa. Note 18 – Pension Obligations The Strømme Foundation has a pension scheme that is comparable to the State pension fund. For 2011, the scheme covers 33 (34) people. In addition there is an un-secured early retirement scheme (AFP) for one person and the remaining obligation in the phased out regular AFP scheme. SF has also signed an agreement for a new AFP-plan through the Common National scheme of AFP’s. This agreement also applies for 33 (33) people, and in 2011 payments were made both to the old (transition period) and new AFP scheme. In 2010 a statement was issued about measuring and accounting treatment of the new AFP. Till now nothing is decided in regard to how or whether an obligation should be calculated. Actuarial calculations have been applied for calculating the obligations and costs in connection with the payment plans. The following assumptions have been used for the calculations: Discount rate Expected dividend Salary adjustments / year Yearly G-regulation / inflation Expected pension escalation
2011 2010 3.80 % 4.60 % 4.10 % 5.40 % 3.50 % 4.00 % 3.25 % 3.75 % 1.40 % 3.00 %
Secured system 2011 Un-secured system 2011 Secured system 2010 Gross pension obligations at 31.12 calculated at 18 343 348 353 695 17 231 691 - Value of pension funds at 31.12 calculated at -14 066 867 0 -13 438 611 + Deferred obligation in case of (loss) / profit -4 184 791 - 1 169 -4 033 262 = Calculated net pension obligations at 31.12 91 690 352 526 -240 182 + Social Insurance contributions 12 928 49 707 -33 866 = Pension obligation as at 31.12 104 618 402 233 -274 048 Net over-financing 274 048 Net obligations - Sum 31/12/11: 506 850 104 618 402 233 The year’s pension accrual 1 648 699 0 1 421 859 + interest cost 781 458 22 414 817 295 + administration cost 118 457 0 101 019 - Return on capital -752 858 0 -772 512 = Net pension cost 1 795 756 22 414 1 567 661 + Social Insurance 253 202 3 161 221 040 + Actuarial loss (gain) 168 772 -12 064 96 625 = Total pension cost 2 217 730 13 511 1 885 326
Un-secured system 2010 667 104 0 33 282 700 386 98 754 799 140 799 140 9 584 43 928 0 0 53 512 7 545 -20 065 -655 050
The amount is included in Salaries and personnel expenses in the accounts. Note 19 – Property under development In 2002, the Strømme Foundation took over a property in Lillesand which had been left to us as a legacy gift. The property was valued and entered into our accounts at NOK 2.5 mill. in 2004. SF has chosen to retain the property and seek to regulate it for residential use, and costs have been incurred in connection with creating these plans. The regulation was approved by Lillesand Community Council in December 2010, but there are still challenges with regard to the access roads in the area. SF entered into an agreement in April 2010 with Kaspar Stømme Eiendom to create a jointly owned company (Luntevika Eiendom AS) with the purpose of maximising the value of the legacy by developing the property. Note 20 – Investments in current financial assets Category Book value Acquisitions 31.12.10 2011 Market based shares 30 000 0 Primary capital certificates 953 436 Total 30 000 953 436
Disposals 2011 0 - 0
Change in devaluation 0 -53 823 -53 823
Devaluation pr 31.12.11 0 -53 823 -53 823
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Book value 31.12.11 30 000 899 613 929 613
Market value 31.12.11 43 000 899 613 929 613
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Note 21 – Liquidity and Restricted Assets Employees tax deducted account Restricted projects and public grant accounts Memorial Fund Restricted funds at the Regional Offices Total Restricted bank balance Funds at free disposition in Norway Free funds available at Regional Offices Total funds at free disposition Total liquidity
2011 619 311 235 784 157 157 3 310 373 4 322 625 16 945 817 5 786 828 22 732 645 27 055 270
2010 568 073 176 647 153 359 2 195 421 3 093 500 25 459 325 3 674 648 29 133 973 32 227 473
In addition there is NOK 1.5 mill in Mimeta AS and NOK 8.4 mill in SMF AS. Part of the business premises and the building site are collateral for the overdraft facilities (limit NOK 1.0 mill). Book value as of 31/12/11 is NOK 5.2 mill. Note 22 – Operational costs according to account types Even if SF does not display an ordinary profit & loss account, the “Accounting Standard for Not-for-Profit organisations” requires that specifications according to account type is given. Note 22, 23 and 24 contains such information. Expense category Programme support to partners Salaries and personnel costs (Note 23) Depreciation Other operational costs (Note 24) Total operational costs
2011 70 480 235 29 999 499 551 938 27 917 190 128 948 862
2010 67 170 964 27 412 977 602 046 33 081 108 128 267 095
Note 23 – Salaries and Personnel Expenses /other allowances 2011 2010 Salaries at Head Office 14 921 426 14 521 925 Social Insurance Payments 2 415 986 2 314 576 Pension Costs 1 853 809 902 052 Other Costs at Head Office 638 325 732 693 Salaries and allowances at Regional Offices 10 169 953 8 941 731 Total 29 999 499 27 412 977 The average number of employees at Head Office was 33 (35). This amounts to 31.5 man-labour years in 2011, compared to 32 in 2010. In the Regional Offices the average number was 75 (67), equivalent to 74 man-labour years, compared to 66 in 2010. The total salary cost for the General Secretary in 2011 was NOK 689 928 plus life insurance cost of NOK 2 097 and pension contributions of NOK 92 534. The General Secretary has no bonus scheme or agreement of benefits in case of dismissal. SF is obliged to have a pension scheme according to the Compulsory service pension Law. The existing pension schemes fulfils this requirement (Note 18). The Board members have received no remuneration other than travelling costs. With the exception of salaries and travel claims, there are no financial transactions with employees or connected persons in Strømme Foundation in Norway. Outstanding loans to employees in the Regional Offices totalled NOK 104 691 at the year end compared to NOK 183 920 at the end of 2010. These are included in other receivables in the balance sheet. 23B – audit fees Category Statutory Audit Fees Other certification Other support Total The fees are stated exclusive of VAT.
2011 2010 175 000 231 000 29 500 132 000 106 000 118 768 310 500 481 768
Note 24 – Other operational costs 2011 Office costs – Head Office 1 240 249 ICT costs – Head Office 3 391 329 Consultancy/Audit fees – Head Office 1 321 723 Media, communication, postage, memberships etc. 3 206 469 Travel costs – Head Office 2 791 628 Fundraising campaigns – Head Office 6 634 599 Total operational costs – Head Office 18 585 997 Total office costs – Regional Offices 4 842 189 ICT costs – Regional Offices 1 003 058 Travel costs incl. vehicles – Regional Offices 3 480 789 Total Other operational costs – Regional Offices 9 326 036 Total Other Operational costs 27 912 033
2010 1 218 676 3 952 934 1 699 548 4 226 562 3 159 721 8 658 757 22 916 198 5 181 000 1 024 499 3 938 990 10 144 489 33 060 687
Note 25 – Currency hedging At the end of the financial year, SF had forward currency contracts with a face value of USD 5.5 mill and EUR 1.0 mill which terminate in 2012. The handling of the security of these contracts is shown in the accounting principles note. The real value of the contracts was NOK 1 957 315 at the end of year. In accordance with the chosen accounting principles, the change in value of the contracts is not shown in the accounts.
Consolidated Accounts Note 26 – Consolidated Salaries and Personnel Expenses /other allowances 2011 2010 Salaries in Norway 16 254 915 16 066 475 Social Security, Norway 2 611 311 2 549 581 Pension Costs, Norway 1 898 223 976 883 Other Personnel Costs, Norway 665 450 732 693 Salaries and allowances in Regions/outside Norway 12 446 308 11 080 864 Total 33 876 207 31 406 496 Audit Fees (exclusive of VAT): Statutory Audit Fees 398 997 462 264 Other certification Fees 29 500 132 000 Other non-audit services 164 031 237 667 Total 592 528 831 931 In addition to the employees stated in note 23, there are an additional 17 employees in the group, 2.5 of which are in Norway. Note 27 - Consolidated purpose activities The total purpose cost in the consolidated accounts are reduced by the total grants of NOK 8.8 mill that provided by SF to Strømme Microfinance AS (SMF AS). These costs arein the consolidated accounts presented as part of “Result Microfinance”. Note 28 - investments in microfinance SF has organized the microfinance activities through the subsidiary group SMF AS. In the consolidated accounts SMF AS is included according to the equity method. The year´s changes in the Microfinance investments Book value 01/01/11 Share of Result 2011 Translation differences Change in loan Book value 31/12/11
126 829 634 -1 134 832 -1 367 783 -748 004 123 579 015
Note 29 – Purpose capital (PC) - group Purpose capital 31/12/2010 The year’s result Translation difference Purpose capital 31/12/2011 Founding capital 3 326 092 3 326 092 PC with restrictions (SF projects) 12 020 169 -5 582 684 6 437 485 PC with restrictions (Microfinance) 113 512 423 -9 982 354 -564 999 102 965 070 PC with restrictions (Mimeta) 2 061 262 -1 208 824 852 439 Minority interest with restrictions (Mimeta) 1 109 911 -650 905 459 005 Other purpose capital 37 105 479 8 607 711 -742 782 44 970 408 TOTAL PURPOSE CAPITAL 169 135 336 -8 817 056 -1 307 781 159 010 499
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Thank you!
The Strømme Foundation wants to thank all our donors, partners and friends for its support.
Norwegian Agency for Development Cooperation (NORAD) Norwegian Ministry of Foreign Affairs (UD) The United Nations Children’s Fund (UNICEF) United States Agency for International Development (USAID) United Nations Development Programme (UNDP) World Food Programme (WFP) Swiss Agency for Development Coop. (SDC) EU/Danish Church Aid (DCA) The Norwegian Peace corps – (FK Norway) Cultiva The Research Council of Norway Operation Dayswork Läkarmissionen, Sweden Erikshjälpen, Sweden Geneva Global, USA Turing Foundation, Nederland The Millennium Promise Alliance, USA Capital for Good, England Futuro Bolivia, Norge STRØMME BUSINESS PARTNER Main Partners Agder Energi Skagerak Energi Kavlifondet Taran Partners ABCenter Kristiansand Dyrepark Stormberg Skandinaviska Enskilde Banken Vista99 Blafre Kristiansand Skruefabrikk & Mek Verksted Helgerud Holding Avigo Hotel Norge Preventor Fundament Gevir Kommunikasjon Amka Holding Nielsen-Gruppen Tor Sigurd Tuen Messmer Invest WoldCam
Kulturkompaniet PriceWaterhousesCoopers Olav Beckmann Bemanningsbyrået Stepchange Bokko Legitim CuroTech CRM Consulting Kvadraturen i Kristiansand Sandens Eiendomsmegler1 Sparbank1 SR Bank Sparebanken Pluss AF Gruppen Norge Berge Libris Bokhandel Centrum Sko Drømmehuset Xpressprint Kjøkkenskapet Lillemarkens Nordea Reisemagasinet Sønnik Klær J Sørensen Sko Til Bords Lillemarkens Other Donors ViaNova Kristiansand Barnehagen de 4 årstider BitFunder Trollvegg Arkitektstudio Umoe Mandal Rambøl Norge Lerøn Consulting Malermester Langeland Stål-Consult Norengro Gustav Pedersen Frisk Luft NETWORK Folk High Schools Sagavoll Folkehøgskole Nordhordaland Folkehøyskole Sørlandets Folkehøskole Birkeland Lundheim folkehøgskole
High Schools Tangen videregående skole Kristiansand Ringsaker videregående Brumunddal Nes videregående Årnes Øvrebø videregående Primary and Secondary school Tingsaker skole Lillesand Vigvoll skole Kristiansand Bekkelaget Skole Oslo Rjukan Barneskole Rjukan Austerheim skole Haugesund Skårdalen skole Vettre barneskole Vettre Åsane skole Kristiansand Follese barneskole Follese Jordet skole Larvik Brumunddal ungdomskole Voie skole Kristiansand Kindergardens Solholmen Sagatun Solkollen Other Schools Hald Internasjonale Senter Other KRIK-Cup Lyngdal Rezidor Hotel Group Norway & Barn hjelper Barn Humorkameratene Krybbeklang Ålesund Hotel de tusen stjerner, Nordlys barnegospel Eide oppvekstsenter Homborsund Festivals and Sport Clubs Start Life Support (SLS) RIL (Randesund Idrettslag) Søgne IL Brumunddal IL Sotra IL Barn er Bra festivalen
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To the Boar
d of Strømm
estiftelsen
Independe nt auditor’
Report on th
(Stromme
Foundation)
s report
e Financia l Statemen ts We have au dited the ac companyin which com g financial prise the fin statements ancial state loss of NOK of Strømm men 5 estifte The financia 822 495, and the finan ts of the Strømmestif telsen (Stro lsen (Stromme Founda l cial statem m ents of the of the grou statements of the Strø group, show me Foundation), show tion), p comprise mmestiftelse the balance ing a loss of ing a flow statem n (Stromm sh NOK 8 817 e ent, for the 056. year then en eet as at 31 December Foundation) and the explanator fin y informatio 2011, and th ded, and a summary of n. e income sta ancial statements significant accounting tement and cash The Board policies an of Director d other s and the M anaging Di rector’s Re The Board sponsibility of Director for the Fina s an presentatio ncial Statem n of these fin d the Managing Dire ents ctor are resp accounting ancial state on m sta Board of Di ndards and practices ents in accordance wi sible for the preparatio th Norwegian rectors and generally ac n and fair the Manag financial sta Accounting ing Director cepted in Norway, an tements th Act and d determine at are free is necessar for such internal cont from mater y to enable ro ial misstate Auditor’s Re the preparat l as the ment, whet sponsibility her due to fraud or er ion of ro r. Our respon sibility is to express an conducted opinion on our thes generally ac audit in accordance with laws, re e financial statemen cepted in No ts based on gulations, an that we com rway, inclu our di pl d auditing standards an audit. We assurance ab y with ethical require ng International Stan da men d out whethe r the financia ts and plan and perfo rds on Auditing. Thos practices e standards rm the audi l statements require t to obtain An audit in ar e fre e fro reas volves perfo m material misstatemen onable rming proc in the finan edur cia t. assessment l statements. The proc es to obtain audit ev idence abou of the risks edures selec t of material error. In m misstatemen ted depend on the au the amounts and disc aking those ditor’s judg losures risk t of the finan preparation ment, and fair pres assessments, the au cial statem di en are approp to en ts, whether including the r ta co tion of the nsiders inte riate in the du e fin to rn an fra al cial statem cir effectivene ents in orde control relevant to th ud or ss of the en cumstances, but not e entity’s r to design for the purp tity’s intern accounting audi al co ose of expr po essing an op t procedures that well as evalu licies used and the re ntrol. An audit also in inion on th asonablenes cludes evalu ating the ov e s of accoun erall presen ting estimat ating the appropriate tation of th ne es made by e financial We believe statements. managemen ss of that the au t, as dit evidence our audit op we have ob inion. tained is su fficient and ap propriate to Opinion provide a ba sis for In our opin ion, the fin ancial state foundation ments give and the gr a oup Strøm mestiftelse true and fair view of th n (Stromm e Foundatio e financial position of n) as at 31 the parent December 2011, and of Pricewater hous T: 02316, ww eCoopers AS, Postbok s 447, NO-4 w.pwc.no 664 Kristian Org.no.: 98 sand 7 009 713 M VA, Membe r of Den no rske Revisor forening
Independe nt Auditor’ s Report - 20 11 – Strøm mestiftelse n (Stromme Founda
tion), page 2
its financia l performan ce Accounting Act and acco and its cash flows for the unting stand ards and pr year then ended in ac co actices gene Report on rally accept rdance with the Norw Other Lega ed in Norw egian l and Reg ay. ulatory Re quiremen Opinion on ts the Board of Directors’ re port Based on ou r informatio audit of the financial n presented statements as in the Boar going conc d of Director described above, it is ern our opinion s report co financial sta assumption, and the ncerning th that the proposal fo tements an e fin r d complies with the law the allocation of the pr ancial statements an d th of an it is consist Opinion on d regulatio ent with th e ns. Registratio e n and docu mentation Based on ou r audit of th considered e financial sta ne 3000 “Assur cessary in accordance tements as described above, and with the In ance Engage co ternational our opinion ments Othe Standard on ntrol procedures we th r ha Assurance out registra at the foundation’s m than Audits or Revie Engagemen ve ws of Histor tion and do anagement ts ISAE ical Financ cumentatio has fulfilled law and bo ia n of the com okkeeping l its In du fo rm ty to produce ation”, it is standards an pany’s acco a proper an unting info d practices d cle rm ge arly at nerally acce Opinion on pted in Norw ion in accordance with set administra tion and di the ay. stributions Based on ou r audit of th considered e financial sta ne 3000 “Assur cessary in accordance tements as described above, and with the In ance Engage control proc tern our opinion m edures we ha that the foun ents Other than Audi ational Standard on Assurance foundations ts or Revie dation is m Engagemen ve ws an objectives an of ts ISAE d its constit aged and distributions Historical Financial In ution as a wh is made in accordance formation”, it is ole. with law, th e Kristiansand , Pricewater June 7, 2011 houseCoo pers AS
Reidar Hen rik State Author sen ised Public Accountant (Norway) Note: This translation from Norw egian has be en prepared
for informat
ion purpos
es only.
(2)
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Strømme Foundation Board and Council Members 2011 The board; 31 December 2011 Svein Ove Faksvåg (Chairperson) Karianne Toppe Angelskår Asle Jøssang Inge Lønning Olaf Gundersen Trond Randøy Anna Minj Deputy Representatives Gunvor K. Andresen Hege Wallevik Anja Elise Ø. Husebø
Council members; 31 December 2011 Kurt Mosvold (Chairperson) Hanne Grete Brommeland Larsen Ansgar Gabrielsen Arne Olav Øyhus Dagrun Eriksen Ove Gusevik (retired from the council in February 2011) Eli Beate W. Hillesund Dag Nordbø Eldbjørg Dahl Snorre Kjesbu Hilde Strømme Gunnleik Seierstad Jan Oddvar Skisland Rannveig Rivedal Nilsen Knut Vollebæk
Election committee; 1 January 2011 Kurt Mosvold Ansgar Gabrielsen Hilde M. Sæbø Fjeldstad
Strømme Foundation is member of the Norwegian Control Committee for Fundraising. Strømme Foundation is a signatory to the Code of Conduct for the International Red Cross and Red Crescent Movement and NGO’s in Disaster Relief. Editor: Egil Mongstad, Strømme Foundation Lay-out and graphic design: Oddvar Paulsen, Strømme Foundation. All photo: © Strømme Foundation
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Skippergaten 3/5 • Box 414 • N-4664 Kristiansand Norway Tel +47 38 12 75 00 • Fax +47 38 02 57 10 • Org. no 952 002 139 E-mail: post@stromme.org • www.stromme.org www.strommestiftelsen.no