Watoto Australia - Annual Report 2012

watoto child care ministries Australia Group

annua l r e p o rt 2011 / 2012

1 watoto child care ministries Australia Annual report 2011/12

contents

Eleven/Twelve Highlights 3 Chairman’s Message 4 CEO’s Message 5 Who is Watoto 6 The Watoto Story - Gary & Marilyn Skinner

8

Sponsorship 12 Watoto Children’s Choir 18 Visit Watoto 26 In Country Programs Uganda

27

Financial Report - Watoto Australia Group

31

Financial Report - Watoto Australia Trust Account 42

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Front Page Image: watoto child care ministries Australia Annual report 2011/12

eleven / TWELVE highlights Watoto on 7’s Weekend Sunrise

Launch into Juba

It was a privilege for the Watoto

Joseph & Jacqui Ogwal have now moved

Children’s Choir to be asked to

with their family into the world’s newest

perform on Weekend Sunrise.

country – South Sudan. Watoto will

Thank you Channel 7 for your

hear the needs of the most vulnerable &

continued support!

endeavour to meet those needs in the coming years.

beautiful africa TOUR Since April 2012 the Beautiful Africa: A New Generation tour

Return to Dignity

has been travelling throughout

Marilyn’s 1st book was released in

It is a dynamic concert that has

Australia & New Zealand. touched many lives along

Australia this year. The powerful

the way.

stories of 8 of our Living Hope women, detailing how they have been transformed and had their dignity restored.

ALMOST AU$2M Raised in Australia Our Australian community has united again to raise almost $2M for sponsorship of the most vulnerable in Uganda, East Africa.

Thank you!!

3 watoto child care ministries Australia Annual report 2011/12

chairman’s message This year has been one of planning and implementation of revised strategies to move Watoto Child Care Ministries in Australia forward within a changing economic and statutory environment which is providing increasing challenges to our mission role in supporting the work of Watoto in Africa.

Our CEO, Luke Willey, and his dedicated team are to be congratulated on setting the foundations for future growth and for the positive results and outcomes already being achieved.

Further strategic change will also be reflected at Board level when proposed additional Directors are brought forward for appointment. These changes will add further depth of experience and a larger geographic footprint to the Board and the organization as a whole.

Continued incremental changes are necessary if we in Australia are to provide sustained meaningful support to the growth of Watoto in Uganda, South Sudan and beyond.

I would encourage you to read this annual report and to regularly visit our web site, www.watoto.com, so that you can stay up to date with the ever growing success story that is Watoto. We acknowledge that God is at the centre of the ministry of Watoto and I would also seek your prayers for the many children and vulnerable women whose lives are being saved and changed on a daily basis.

I am reminded of the quote by Rev Fred Rogers, which says “Anyone who does anything to help a child in his life is a hero to me�. My fellow Directors and I extend our heartfelt thanks and gratitude to our staff, sponsors, donors, members and supporters who are indeed heroes to us.

For The Children

Peter Harris Board Chair

4 watoto child care ministries Australia Annual report 2011/12

CEO’S message It has been my privilege and pleasure to lead the team here at Watoto Child Care Ministries Australia over the last 12 months. Our committed Australian community has supported us throughout this year with sponsorship, donations, merchandise sales and visitors to Watoto again continuing to grow – thank you.

There have been some great achievements this year. The Beautiful Africa concert that has been on tour since April 2012 has a new, dynamic and fresh feel and to see the way we are developing our performances to bear witness to Jesus’ love for each and every one of us is very exciting. It has been encouraging to see people’s lives changed through the stories and songs of the children and adults on stage.

In the coming 12 months Watoto Child Care Ministries Australia will continue to form relationships with key corporate partners. Relationships that will see not only the business world made aware of the work of Watoto, but see Watoto grow in the ways we can reach the most vulnerable women and children in the nations of Africa. Our inaugural Watoto Gala Dinner & Concert will be held in September 2012, where we will have the opportunity to showcase the work of Watoto to invited guests.

With the launch of Watoto church in Juba, South Sudan, I believe that each Australian has a part to play in reaching out to the communities of the world’s youngest country. War, disease & famine have crippled these people for many years and we have the opportunity to really make an impact.

It brings me great pleasure to present to you Watoto Child Care Ministries Australia’s annual report for the period 2011/12. It is my passion to strive to maintain a high standard of transparency, integrity and professionalism within our Australian Watoto office. I trust you will enjoy reading what has been accomplished over the last 12 months.

Blessings,

Luke Willey CEO Australia & New Zealand 5 watoto child care ministries Australia Annual report 2011/12

who is watoto 6 watoto child care ministries Australia Annual report 2011/12

“it takes a village to raise a child” - african proverb

Our purpose We exist to raise the next generation of African

Watoto is an holistic care programme that was initiated as a response to the overwhelming number of orphaned children and vulnerable woman in Uganda. It is positioned to rescue an individual,

raise each one as a leader in their chosen sphere of life so that they will rebuild their nation.

The Watoto model involves physical care, medical intervention including HIV/AIDS treatment,

education – formal and technical, trauma counselling and spiritual discipleship.

RESCUE

leaders, by pursuing excellence in academic and practical skills, integrity in conduct and moral values, so that each one becomes a responsible Christian and a

productive citizen.

We aim to care for 10,000 children in Uganda by 2023 and to replicate the model in other countries across the continent so as to fast-track the rescue of orphaned children and vulnerable women in Africa.

RAISE

REBUILD

Rescuing Children Raising Leaders Rebuilding the throughout Africa

within Africa

7 watoto child care ministries Australia Annual report 2011/12

Nations of Africa

the watoto story

I

n 1988, in a town called Rakai, I was confronted by a naked reality that I could not ignore.

Eight years earlier, my family and I had moved to Uganda – a country famous for violence and poverty. In Kampala, Uganda’s battered capital, we planted a church that we believed God would use to restore hope to the city and the nation.

Uganda’s people had endured so much. Corrupt and oppressive rulers had waged ruthless wars against the people, and when they were done with their slaughter, nearly one million were left dead.

I was taken to visit a 79-year-old widow. She had mothered seven children. As we walked through banana groves behind her small hut, she began to point out the graves of her husband and six of her children. AIDS had killed all.

Her last surviving child – a daughter – was dying of the same disease.

I was reminded of the verse in James 1:27 that says, “Religion that GOD the Father accepts as pure and faultless is this: to look after the orphan and the widow in their distress and to keep oneself from being polluted by the world.”

My visit with this woman in a simple Ugandan village stirred me to the core of my being and became one of the defining moments of my life.

In the last year, Watoto Child Care Ministries Australia has played an instrumental part in the growth of Watoto in Uganda. Our J210 & J329 village projects are continuing to have significant intakes of the most vulnerable children & our J416 Living Hope project is impacting the lives of many HIV+ women.

Thank you for your support.

Gary Skinner Founder of Watoto

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the pearl of africa

9 watoto child care ministries Australia Annual report 2011/12

accountability

W

atoto Child Care Ministries Australia continually strives for transparency in all areas of the organisation. As part of

our accountability we report to Global Development Group (GDG) who oversee all of Watoto Child Care Ministries

(Australia) development projects in Uganda. We would like to take this opportunity to again thank GDG in their valuable support of Watoto in Australia.

Global development group (GDC) Global Development Group is a Non Government Organisation [NGO] carrying out humanitarian projects

International Organisation for Standardisation (ISO)

with approved partners and providing aid to relieve

ISO is a network of the national standards institutes of

poverty.

148 countries, on the basis of one member per country, with a Central Secretariat in Geneva, Switzerland, that

The Australian Treasurer declared Global Development

coordinates the system.

Group an ‘approved organisation’ under the OAGDS

Global Development Group has certification to AS/NZS

scheme on 10th March 2004. From this date donations

ISO 9001:2000 and is compliant.

to the ‘Global Development Group Overseas Relief Fund’

For more details visit

were declared tax deductible.

www.iso.org/iso/en/ISOOnline.frontpage

10 watoto child care ministries Australia Annual report 2011/12

our staff

Luke Willey

dennis Brown

adele turnbull

kerri-ann handy

ADRIENNE GREEN

isis claros

Sponsorship Coordinator

Receipting Officer

Charmaine brown

ruth mitchell

KARLI watkins

ZOE NOAKES

CEO

Finance Manager

Merchandise Coordinator

Administrative Assistant 11 watoto child care ministries Australia Annual report 2011/12

Office Manager

Tour Coordinator

Public Relations/Media

Admin, Part Time

sponsorship

12

Stephanie & a Baby Watot Child watoto child care ministries Australia Annual report 2011/12

sponsorship update

W

-

atoto Child Care Ministries Australia has continued to grow in sponsorship over the last 12 months. Not

only have we seen an increase in total numbers, but have also seen our most needed areas of sponsorship supported

CURRENT SPONSORSHIP AT A GLANCE

by the generous donors across Australia.

At June end Watoto Australia’s total sponsorship numbers

•

2350 Child sponsorships

have grown to 4223, so thank you for all who give each

•

969 Living Hope sponsorships

month to help us invest into the most vulnerable women

•

411 Baby Watoto sponsorships

& children of Uganda.

•

94 Teacher sponsorships

We look forward with anticipation for the coming year. We

•

87 Post Secondary sponsorships

have implemented some key sponsorship strategies that

•

19 Special Needs sponsorships

we know will help raise awareness throughout Australia.

•

18 Seed sponsorships

CHILD CARE INDIVIDUAL SPONSORS - AUSTRALIA

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sponsorship update CHILD CARE INDIVIDUAL SPONSORSHIP - GLOBAL

VILLAGE INTAKE PROJECTIONS

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ANNUAL REPORT

- adele Turnbull

AID & DEVELOPMENT

W

atoto Child Care Ministries project funds of AU$2,758,469 were received through the Watoto Australia Trust Account with AU$2, 876,167 sent to Global Development Group for transfer to Uganda.

These funds were spent across the projects listed in the following table. It should be noted that some funds received through the Australian Trust Account may or may not be forwarded to Uganda in the same financial year that it has been

received, as the funds are only sent when required and can be utilized for the reason they have been received.

Due to legislative process requirements, some major donors now give direct through Global Development Group (GDG) for Watoto Uganda. We want to thank these donors for their ongoing support.

AID & DEVELOPMENT funds breakdown Project Name Child Sponsorship

Brief Description Watoto is strongly committed to placing children in a safe family environment rather than a large institutional

Amount Spent

Percent

$921,277

31.36%

$145,085

6.3%

$140,066

4.87%

orphanage. They become part of a family unit for life in the Watoto community. A sponsored individual has multiple sponsors in order to provide the holistic care that is required to equip them for success in life. The sponsorship of a Watoto child, house mother, teacher, Baby Watoto or Living Hope helps to meet the recurring costs.

Baby Watoto Sponsorship

Baby Watoto is a home for abandoned and vulnerable babies. Tiny preemies to toddlers, found on rubbish heaps, in trash cans or abandoned in hospitals and police stations, are brought to their new home where they find acceptance and unconditional love. When these babies are old enough to enter a Watoto children’s village, they continue their journey to become Africa’s next generation of leaders. There are currently two babies’ homes in Kampala and one in Gulu.

Mother’s Sponsorship

Watoto children’s villages are a haven of security, peace, education, purpose and spiritual vitality. Children between the ages of 2 and 12 are accepted into the villages, where they are cared for by a house mother, and live with 7 other siblings. They attend school and receive a quality education. A community centre for school assemblies, community functions and church services is also a part of the village. A clinic is established to provide adequate health care.

These funds are to sponsor the House Mothers.

15 watoto child care ministries Australia Annual report 2011/12

Sponsorship funds breakdown (cont.)

Teacher’s Sponsorship

These funds are to assist with the costs of school teacher’s

Living Hope Sponsorship/ Donations

The most marginalised and wounded people in Africa are

in the villages by way of sponsorship.

women. Left abandoned or widowed, many of them HIV+

$36,606

1.24%

$344,898

11.99%

$991,407

33.35%

$6,384

0.21%

$10,000

0.35%

$71,772

0.7%

$201,826

3.18%

$6,040

0.17%

themselves, they are destitute and desperate, fearing that their children will soon become more of Africa’s orphans. Living Hope is restoring dignity to vulnerable women through spiritual discipleship, improved quality of life, medical intervention including HIV/AIDS care, empowerment and income generating projects through microfinance loans. These funds are to support the Living Hope program.

Building Funds

You can visit Africa and experience the work of Watoto firsthand. Visitors to Uganda are welcome and appreciated. You can get involved by helping to build infrastructure in a village, serve as part of a medical team or participate in a ministry team. Each person, church, group or organisation raises the funds for the project they choose to participate in. Short and long term volunteer opportunities are also available.

Undesignated

Watoto’s partners contribute to infrastructure, future development or investing in the lives of the individuals who are accepted into the Watoto family. Donate in kind from the needs list on our website or make a one-off donation in cash. There’s also an opportunity to support fundraising events, fundraise on behalf of Watoto or give a non-cash gift through the Watoto Leadership Foundation.

Goat Farm

At Watoto, it is critical to generate self-sustainability for continuing development. The Goat Farm is one project where goats are farmed for milk to be used in the Watoto Babies Homes. It is planned for this project to become fully self-sustainable by selling excess milk and surplus goats to the community.

Baby Special Needs

Specialised needs for the Baby Watoto program including incubators, warming beds, cots, cribs and other equipment.

Medical

Special medical needs including facial reconstructions,

Infrastructure

General infrastructure works to support all projects

trauma rehabilitation and surgery costs.

including self-sustainability.

16 watoto child care ministries Australia Annual report 2011/12

Sponsorship funds breakdown (cont.)

Child sponsors may choose to send a monetary gift

Gifts

to their child for special occasions, e.g. Christmas and

$10,803

0.37%

$130,003

5.4%

$6,040

0.21%

$8,360

0.3%

$2,876,167

100%

birthdays. A percentage of these gifts are put into a fund for the child’s higher education and the balance given to the child to purchase a gift.

Project Gulu

In 2007, Watoto expanded its programme to northern Uganda in response to the cry of the former child soldier and greater community in this region who bore the brunt of a senseless civil war. Working alongside the local government, community and other stakeholders on the ground, Watoto has been actively involved in making northern Uganda livable again.

Self Sustainability - other

Although Watoto has a number of large self-sustainability projects such as the Goat Farm & Lubbe Land, often self sustainability funds are sent that don’t fall under a particular project.

Miscellaneous

These funds are used for projects that do not fall under a specific category.

TOTAL

Sponsorship funds breakdown (cont.)

Infrastructure 0.17%

Aid and Development Distribution (%) Child Sponsorship

31.36%

Baby Watoto Sponsorship

6.3%

Living Hope Sponsorship/Donations

11.99%

Building Funds

33.35%

Undesignated

0.21%

Goat Farm

0.35%

Baby Home Special Needs

Child Sponsorship 31.36%

0.7%

Medical

3.18%

Infrastructure

0.17%

Gifts

0.37%

Building Funds 32.87%

Bab yW ato to S 6.3 pons % ors

5.4% 0.21%

Miscellaneous

0.3%

hip

ip

100%

Living Hope Sponsorship & Donations 11.44%

rsh so on Sp 7% er th 4.8

Self Sustainability

Mo

Project Gulu

TOTAL

Undesignated 0.21%

Project Gulu 4.32%

4.87% 1.24%

Goat Farm 0.35% al dic Me 8% 3.1

Mother’s Sponsorship Teacher’s Sponsorship

Baby Home Special Needs 0.7%

Self-Sustainability 0.21% Gifts Miscellaneous 0.37% 0.3%

Teachers Sponsorship 1.21%

Graph data calculated by above supplied information

17 watoto child care ministries Australia Annual report 2011/12

watoto children’s choir 18 watoto child care ministries Australia Annual report 2011/12

Geoffrey Oyaka sings for the crowd at Easterfest 2012, in Toowoomba, Qld.

FROM THE CHOIR COORDINATOR - kerri-ann handy The End of Choir 49

T

he second half of Choir 49 was a great time for the

October. Upon returning back to Uganda the team were

team and all those who attended the performances.

invited to perform for the Ugandan president at a special

The children grew in confidence both on stage and in

function in Kampala which was a great honour for them to

social situations. The Lord so graciously used their willing

share their stories with their own president. The children

hearts to touch the lives of many as they finished up their

have since been resettled into their villages and are doing

6 month tour. The friends they have made and the times

very well. We were informed that some of the children

they have shared on tour will be etched in their hearts for a

even finished up in the top 5 of their class which was an

long time and we are so thankful to all those who opened

amazing achievement for them. They are well on their way

up their hearts and homes to this beautiful team. Choir 49

to become influential individuals in Uganda and we are so

wrapped up their tour in Brisbane and headed home late

proud of them.

19 Watoto Australia’s 10th Children’s Choir, Team 56, performing to raise awareness for the vulnerable women & children of Africa watoto child care ministries Australia Annual report 2011/12

CHOIR UPDATE CHOIR 56 On the 1st of April, 21 fresh faced Watoto Children and 10 Ugandan Choir adults arrived in Brisbane to begin their six month tour sharing their story with Australia and New Zealand. The brand new tour entitled Beautiful Africa: A New Generation kicked off at Easterfest, the largest Christian Music Festival in the Southern Hemisphere, with thousands witnessing this inspiring performance over the 3 day festival. The choir then travelled out to rural Queensland, to some places we have never been before, sharing their message of hope and love to towns that were devastated by recent floods. Not only do we aim through the tour, to raise awareness of the plight of orphans and widows but we at Watoto believe the message shared by the choir truly transforms lives and it’s so exciting to see and hear of God reaching out to people attending each performance. In Townsville we had 40 people respond to the call to follow or rededicate their life to Christ. We are in awe of how powerfully God uses these children and adults

Choir 56 in Sydney

to spread his Gospel to our nation that is crying out for him.

The team then spent a month in New Zealand working with our partners TEAR Fund to share this exciting new production with the North Island. We are always so blessed by our lovely New Zealand neighbours during this time and this year was nothing short of amazing. We were able to raise much needed funds and awareness towards the work of Watoto & we are thrilled to say that we raised over 250 new TEAR Fund sponsorships.

20 watoto child care ministries Australia Annual report 2011/12

This year we have focused on visiting new places and towns to help spread this message further in Australia.

This goal has been met with having over 50% of the tour booked in new venues and towns. We have had a tremendous response to the performance so far, some saying it is the best choir tour they have ever seen and we are excited with anticipation to see what God will do during the next half of tour.

choir strategy

I

n the coming years Watoto Australia will continue to be strategic in implementing processes that will improve the viability of the choirs traveling throughout Australia. In 2013 we will be partnering with our Asia office, based in

Hong Kong, for the tour. Choir 61 will spend 4 months here in Australia & 3 months in a number of Asian countries.

We will not be travelling to New Zealand in 2013.

Goals we endeavor to achieve with each tour are as follows.

•

To continue to communicate & raise awareness among Australian communities that are yet to hear of the work of Watoto.

•

To increase the number of people that attend the Watoto concerts by 20% each year.

•

To reduce the cost of tour by planning routes strategically.

•

To better understand the needs of churches as they reach their local communities.

•

To increase our community awareness by promoting and having a publicity plan for the Australian tour.

•

Endeavour to have 3 separate tours planned to have the opportunity to promote concerts proactively for future years.

•

Be in key cities for specific events (eg. Hillsong, Easterfest)

•

To have 6 major media coverage events in 2013

•

To increase media coverage each year.

These goals will continually improve the professionalism & accountability of Watoto Australia and of the choirs that tour here.

THANK YOU BUS DRIVERS To all our drivers this year, we would like to say a big Thank You for supporting us with your gifts & talents. Our tour can only run smoothly when we have the right people at the wheels. Thank you for keeping us safe, caring for us, getting us to our destinations, being patient & keeping our bus looking great.

We love and appreciate all you have done – Uncle Don, BaBa Nico (NZ), Graham & Joanne, Bob & Dawn, Jan, Rodney, Andrew & Dan. We would also like to thank our friends at Cross Country Tours for continuing to care for our bus, keeping it compliant

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Choir 56 pictured with bus drivers Graham & Joanne Turner and Truck drivers Bob & Dawn Howell. watoto child care ministries Australia Annual report 2011/12

& mechanically sound.

MEDIA UPDATE

- RUTH MITCHELL

T

he year 2011/2012 has seen Watoto gain some key exposure in the media. One of the highlights was when the Watoto Children’s Choir had the opportunity to sing on the Weekend Sunrise programme on Channel 7.

They were asked to sing on Sunday’s programme, which is the top rated Sunrise show and the choir amazed the producers and presenters. They said it was, “one of the best performances they had seen on Sunrise in a long time” and are excited to have us back in the future.

Northern Uganda was also in the spotlight due to the exposure the Kony 2012 documentary. Stuart Robert, a Watoto Australia board member & representative for Australia on the international board, wrote an article with “The Punch” that highlighted the incredible work Watoto is doing in northern Uganda that became the most read and commented opinion piece in the country. The mX magazine also interviewed Luke and published a quote from him on the front page of their magazine, which reaches approximately 700,000 people across Brisbane, Sydney and Melbourne. Triple M also used Luke’s comments for a news grab reminding people that there are many ways to support those in northern Uganda, through our Watoto programs.

The Watoto Children’s Choir had a fantastic interview with Vision FM, which was aired nationwide on over 500 relay stations. It was also aired 2 months later on “History makers” which is not only played on their 500 relay stations, but on almost every Christian radio station across Australia.

We have made some great connections with the media this past year and, with almost 100 separate media articles published or aired, we have started to build relationships that will benefit us in future years.

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media highlights PORT MACQUARIE NEWS

NEW ZEALAND HERALD

QUEENS ST. MALL LIVE PERFORMANCE

THE QUEENSLAND TIMES

WOLLONGONG ADVERTISER

THE WESTERN STAR

VISION FM RADIO

23 watoto child care ministries Australia Annual report 2011/12

projects : global development group

G

lobal Development Group (GDG) and Watoto Australia continue to

partner together to see the three projects in Uganda thrive and continue

to make an impact on the local Ugandan community.

The three GDG projects are – •

Watoto Children’s Village & Babies home project. Project J210

•

Watoto Children’s Village Gulu. Project J329

•

Living Hope Development Program. Project J416

All work in these projects are monitored by GDG staff and reporting is done

by Janet Ayo who works for GDG in the Kampala office.

Projects mentioned seek to have maximum impact on the surrounding communities by employing local staff who are being mentored, trained, skilled and empowered by other local staff and international visitors.

In the last 12 months we have seen an increase in intake numbers of children in our J210 Children’s village project. Many of these vulnerable children continue to be rescued from all walks of despair and destitution. This includes many babies introduced into the care of our Babies homes where they are given medical care & respite so that they too can graduate into our villages.

Watoto Children’s Village & Babies home. project J210

24 watoto child care ministries Australia Annual report 2011/12

projects : global development group Watoto villages include schools, medical facilities, administration, vocational training, sustainable agriculture, staff accommodation and the children’s homes. Mothers, teachers, support staff and children are all involved in the dayto-day happenings in these communities.

WATOTO Children’s Village Gulu. PROJECT J329

Our Living Hope project restores dignity back to the most vulnerable HIV+ women by empowering them to rise up in their communities. Medical help is provided, Living Hope also gives them the skills, both business and practical, to ensure they have a future and will see their children also be productive citizens of Uganda. Teams from all around the world visit and impart knowledge to these Living Hope women. 2012 will see around 1100 women graduate from the Living Hope project.

Living Hope DEVELOPMENT PROGRAM. PROJECT J416

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visit watoto

26

‘The Trees’ at Bbira Children’sVillage watoto child care ministries Australia Annual report 2011/12

visit watoto

- dennis brown

Build Teams from Australia

A

ustralian and New Zealand churches, schools, corporate and community groups continue to support Watoto. In the 2011/2012 financial year 15 teams consisting of 258 people travelled to Uganda and built many vital and much

needed projects.

These projects included houses, classrooms, apartments, student dormitories, teacher’s accommodation, general maintenance requirements, and one team commenced a Rain Harvesting Project. That team is returning to Uganda to

complete the project in the current financial year and provide ‘on the job training’ to Watoto staff so that they can continue this programme in other areas of Watoto Villages and eventually turn it into a ‘self-sustainability’ project.

One of the build teams haVE provided the following testimony.

“Everyone on our team enjoyed the trip and all have indicated they want to return. We were all impacted by seeing the widespread poverty and the challenge to live a life that frees us to continue to give into the nations.

•

The joy and love of the Ugandan people and their God-focused life. Our host and bus driver were fantastic and we had a lot of fun...many laughs and much teasing.

•

The vision of Watoto and the way it is so well run was inspirational.

•

The team have all come back with a desire to see the same “mission focus” in their everyday life and have the same trust and dependency on God in Perth, as we did in Uganda. We saw many breakthroughs in people’s lives as we set time aside every evening for a debrief and “prayer chair” We have all returned with a “bigger picture” of God’s world and His kingdom.

~ Karen (Perth)”

27 watoto child care ministries Australia Annual report 2011/12

visit watoto individual volunteers

T

here has been an awesome increase in the numbers of individual volunteers from Australia & New Zealand in this financial year.

Twenty-six wonderful individuals travelled to Uganda and volunteered for a minimum of one month with Watoto, working and serving alongside the Watoto Team, in areas such as Baby Watoto / Living Hope / Watoto Church / Children’s Villages / Medical Clinics / office and administrative areas.

SARAH’S STORY My name is Sarah and I have the privilege of caring for some of Uganda’s most vulnerable infants and children.

As the Nurse Coordinator of Baby Watoto, I oversee the medical care given by our nurses and allied staff in all three Baby Watoto facilities. I work alongside our Ugandan nurses, encouraging them and assisting them in improving their skills through formal and informal training sessions. I also work closely with other local and international medical professionals to ensure that our babies are getting the best possible holistic care.

Whilst the work can be challenging, I love what I do and I am so blessed by seeing the amazing transformations that God brings about in His beautiful babies!

28 watoto child care ministries Australia Annual report 2011/12

visit watoto NATHAN & MELISSA’S STORY We are currently experiencing the journey of a life time here in Uganda.

I don’t think anything can really prepare you for the real deal, but after being here for 3.5 months we are glad to say that we feel like honorary Ugandans.

Nathan and I are 27 years old and from Adelaide SA. We are based at Suubi village and will remain here until the end of our 7 months. Nathan works in a number of roles both coaching soccer and teaching instrumental lessons. I have been working as a social worker for the babies’ home, running trainings in Gulu and Suubi around behaviour management and responding to the problem of sexualized behaviour in children.

On Sundays we both help run the worship and lessons through children’s church. God is continuing to stretch us and teach us more about His ways. We certainly are growing in patience and learning to appreciate the simple things when you have them (like power and running water).

We love the babies and the young people we support and ultimately we love being able to learn from, care for and encourage others. Sometimes it hits us that “wow, we are in Africa right now!”

We know that this is where God wants us to be.

Nathan & Melissa

Watoto 360˚

S

ix students from Australia completed the Watoto 360˚ programme, which is a Christian training program designed to encourage students in personal character development, cultivating a living relationship with God, and identifying

their unique individual gifts and callings in God. WATOTO 360˚ is unique and comes out of our love for God and our desire to bring healing to our city, our nation, our continent and our world.

WATOTO 360˚ does not use project funds from Australia

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Watoto 360˚ Class watoto child care ministries Australia Annual report 2011/12

our board Gary Skinner

Watoto Child Care Ministries founder.

Gary founded Watoto after moving to Uganda in 1982 with his wife Marilyn and young family to start a cell based church in Kampala. Gary speaks internationally about the Watoto model and how it can be implemented through out the world.

Peter Harris

Chairman of the Board Peter is a financial consultant and mortgage manager, with over 40 years in finance, investment & merchant banking in senior management roles.

Stuart Robert

Federal Member of Parliament (FAIM, MBA, M IT, BA Hons, Grad Dip IM) Stuart is the current Shadow Minister for Defence Science, Technology and Personnel.

Bill Thorburn Bill has over 45 years experience as Senior Pastor and Teacher throughout Australia and internationally. He has served on numerous boards & committees connected to community and church organisations.

Rod Carey Rod Carey is the Director/Secretary of Watoto Child Care Ministries Australia.

30 watoto child care ministries Australia Annual report 2011/12

www.watoto.com

31 watoto child care ministries Australia Annual report 2011/12

REPORT

The Watoto Australia Group INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2012 (Statement of Financial Performance)

2011

2012

REVENUE Donations and gifts - monetary & non-monetary

TOTAL

trust

TOTAL

821,755

39,905

781,849

1,770,243

0

0

0

0

1,976,620

0

1,976,620

1,542,782

Legacies and bequests Sponsorship income

company

Grants • AusAID

0

0

0

0

• other Australian

0

0

0

0

• other overseas

0

0

0

0

57,013

3,289

53,725

44,354

Other income

1,515,681

1,515,681

Total revenue

4,371,069

1,558,875

2,812,194

4,321,913

2,876,167

0

2,876,167

2,141,745

1,400

1,400

0

9,799

0

0

0

0

81,933

81,933

0

62,469

731,665

731,665

0

874,378

0

0

0

0

Administration

311,942

0

311,942

226,599

Other Expenses

727,234

269,815

457,419

392,871

Total expenses

4,730,342

1,084,813

3,645,529

3,707,861

Investment income

( 0)

887,063

EXPENSES Overseas projects • funds to overseas projects • other project costs Domestic projects Community education Fundraising costs • public • government, multilateral and private

Excess of revenue over expenses (shortfall) from continuing operations $ (359,272)

page 4 of 12

$ 474,063

$

(833,335)

$

614,052

REPORT

The Watoto Australia Group BALANCE SHEET AS AT 30 JUNE 2012 (Statement of Financial Position) 2011

2012

ASSETS

TOTAL

company

trust

$

Current assets • Cash and cash equivalents • Financial assets

1,582,797

241,561

1,341,236

2,206,798

141,894

141,894

0

66,954

136,661

136,661

0

72,314

0

0

0

0

1,861,352

520,116

1,341,236

2,346,066

85,437

85,437

0

160,966

0

0

0

0

53,299

53,299

0

103,211

0

0

0

0

138,736

138,736

0

264,178

$ 1,722,616

$ 381,380

$ 1,341,236

$ 2,081,888

$ 1,722,616

$ 381,380

$ 1,341,236

$ 2,081,888

Non current assets • Property, plant and equipment • Other Total assets LIABILITIES Current liabilities • Trade and other payables • Provisions Non current liabilities • Payables • Other Total liabilities Net assets EQUITY Reserves

page 5 of 12

REPORT

The Watoto Australia Group STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2012 Retained Earnings

Balance at 1 July 2011

Reserves

(commencing balance)

2,081,888

Excess of revenue over expenses

( 359,272)

Amount transferred (to) from reserves Balance at 30 June 2012 (year end balance)

1,467,837

0

614,052

0 $ 1,722,616

Total

0 $

-

0 $

2,081,888

No single appeal or other form of fund raising for a designated purpose generated 10% or more of total income for the period under review.

page 6 of 12

REPORT

The Watoto Australia Group Notes to and forming Part of the Accounts as at 30 June 2012 NOTE 1:

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

This financial report is a special purpose financial report prepared in order to satisfy the accounts preparation requirements of the . The Directors/Trustees have determined that the group is not a reporting entity as referred to in Statements of Accounting Concept 1: Definition of a Reporting Entity, and there is no requirement to apply accounting standards in the preparation and presentation of these statements.

The statements have been prepared in accordance with the following accounting standards: AASB 101 AASB 102 AASB 107 AASB 108 AASB 110 AASB 1048

Presentation of Financial Statements Inventories Cash Flow Statements Accounting Policies, Changes in Accounting Estimates and Errors Events occurring after Reporting Date Interpretation and Application of Standards

No other Accounting Standards, Urgent Issues Group Consensus Views or other authoritative pronouncements of the Australian Accounting Standards Board have been applied.

The report is also prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, except where specifically stated, current valuations of noncurrent assets.

The following material policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this report: (a)

INCOME TAX As not for profit entities, the The W atoto Australia Group is entitled to an exemption from the Australian Taxation Office from the payment of Income Tax on income derived by it and from the lodgement of income tax returns.

(b)

CASH For the purposes of the statement of cash flows, cash includes cash on hand and in at call deposits with banks or financial institutions, investments in money market instruments maturing within less than two months, net of bank overdrafts.

(c)

INVENTORIES Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first in first out basis.

(d)

REVENUE Revenue from the sale of goods is recognised upon the delivery of goods to customers.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable.

All revenue is stated net of the amount of GST.

(e)

GST Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST is not recoverable from the Australian Taxation Office. In these cases, GST is recognised as part of the cost of acquisition of the asset or the expense.

Cash flows are presented in the cash flow statement on a gross basis.

page 7 of 12

NOTE 2:

NOTE 3:

NOTE 4:

Profit from Ordinary Activities Profit from ordinary activities has been determined after

(a) Expenses – Remuneration of Auditor (b) Expenses - Depreciation & Amortisation (c) Expenses - Bad & Doubtful Debts Group Details

REPORT

The Watoto Australia Group

$

$ $ $

1,523,440 1,273 58,084 1,582,797

TOTAL

4,000 45,907 -

TOTAL

Notes to and forming Part of the Accounts as at 30 June 2012

The company is limited by guarantee. If the company is wound up, the Constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstanding delegations of the company.

The trust is a charitable trust.

The principal place of business is 3352 Pacific Highway SPRINGWOOD Qld 4127

CASH FLOW INFORMATION (a) Reconciliation of Cash Cash at end of the financial period as shown in the Statements of Cash Flows is reconciled to the related items in the balance sheet as follows: Cash at bank Bank Overdraft Cash on hand Term Deposits

page 8 of 12

$ $ $

$

2012 COMPANY 4,000 45,907 -

2012 COMPANY

182,213 1,263 58,084 241,561

$ $ $

$

TRUST

TRUST

-

1,341,226 10 1,341,236

$ $ $

$

2011

9,279 31,414 -

2011

2,206,383 415 2,206,798

NOTE 4:

NOTE 5:

NOTE 6:

REPORT

The Watoto Australia Group

$

$

($

(

(

( (

(

81,868

TOTAL 70,000 11,868

60,026

TOTAL 23,113 83 36,831

438,256)

20,587) 14,798) 47,868) 86,156) 2,080 8,313

80,032 -

TOTAL 359,272)

Notes to and forming Part of the Accounts as at 30 June 2012 (b) Reconciliation of Cash Flow from Operations with Operating Profit after Income Tax

CASH FLOW INFORMATION (continued)

Operating Profit after Income Tax Non-cash flows in operating surplus Amortisation Depreciation & expensed equipment Investments written off (Profit) Loss on sale of property, plant and equipment Changes in assets and liabilities Decrease /(Increase) in trade and term debtors Decrease / (increase) in prepayments Decrease / (increase) in other assets Decrease / (increase) in inventories Decrease / (increase) in intangibles (Decrease) / increase in trade creditors and accruals (Decrease) / increase in employee provisions (Decrease) / increase in income in advance (Decrease) / increase in GST Payable Cash flows from operations RECEIVABLES & PREPAYMENTS Trade Debtors Other Debtors Accrued GST Receivable Accrued Income Receivable Prepayments Total Receivables & Prepayments INVENTORIES Stock on hand Stock in transit Total Inventories

page 9 of 12

$

$

2012 COMPANY 474,063

2012 COMPANY 23,113 83 36,831 60,026 2012 COMPANY 70,000 11,868 81,868

(

$

$

( (

(

$

2011

614,052

-

248) 2,699) 28,036 19,581 20,577)

638,145

2,526 8,396

2011

-

34,000

34,000 -

2011

32,954

22,033

$

$

-

-

TRUST 833,335)

TRUST

TRUST

-

-

NOTE 7:

NOTE 8:

FIXED ASSETS

REPORT

The Watoto Australia Group

50,113 24,697 8,547 53,299 2,080

TOTAL

376,126 (239,466) 136,661

TOTAL

Notes to and forming Part of the Accounts as at 30 June 2012

Plant & Equipment Plant Equipment Vehicles & Chattels at cost / valuation Accumulated Depreciation

CREDITORS, ACCRUALS & TAX LIABILITIES Trade Creditors & Accruals Trade Creditors Accrued Expenses Bank Overdraft Loans Payable - within 12 months Loans Payable - over 12 months Monies received in advance Other Creditors & Accruals

2012 COMPANY 376,126 (239,466) 136,661 2012 COMPANY 50,113 24,697 8,547 53,299 2,080 138,736 83) 83 138,736

$

$ $

85,437 53,299

138,736 83) 83 138,736

$ $

$

$ $

85,437 53,299

(

Total Creditors & Accruals GST & Tax Liabilities GST Collected less GST Paid less Amounts Receivable Total GST & Tax Liabilities Total Creditors, Accruals & Tax Liabilities

$ $

(

Current Component Non-Current Component

page 10 of 12

$

$

$ $ $

TRUST

TRUST

-

-

-

-

-

2011

265,873 (193,558) 72,314

2011

$ $

$

160,966 103,211

8,396) 8,396 264,178

264,178

50,205 110,762 103,211 -

-

$ $

(

-

REPORT

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF

The Watoto Australia Group SCOPE REPORT

on the Financial Report

We have audited the attached financial report of The Watoto Australia Group, being a Special Purpose Financial Report which comprises the Balance Sheet, Income Statement, Statement of Cash Flows and Notes to the Financial Statements for the financial year ended 30 June 2012 as set out on the accompanying pages.

DIRECTORS’

Responsibility for the Financial Report

The group’s directors are responsible for the financial report and have determined that the accounting policies used and described in Note 1 to the financial report and the accounting disclosures contained therein are appropriate to meet the needs of the members. The directors’ responsibility also includes establishing and maintaining internal control(s) relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

AUDITOR’S

Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

The financial report has been prepared for distribution to members of the entity and the for the purpose of fulfilling the directors’ financial reporting. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members or for any purpose other than that for which it was prepared.

Robert White Public Accountant, Registered Company Auditor ROMAR ACCOUNTANTS Accountants Advisers Auditors ABN 80 010 323 083 PO BOX 3080 SUNNYBANK SOUTH Qld 4109 Ph (07) 3323 1704 Fax: (07) 3323 3339 e-mail: admin@romar.net.au | romarcpa@ozemail.com.au

page 11 of 12

Page 1 of 2

REPORT

Limitation to Scope As is common for organisations of this type, it is not practicable to cost effectively audit the system of internal control over cash receipts of donations, subscriptions or other fund raising activities.

Accordingly, our audit tests over receipts were limited to amounts already recorded in the books and records of the entity.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit, we have complied with the independence requirements.

AUDITOR’S OPINION In our opinion, the financial report of The Watoto Australia Group for the year ended 30 June 2012 is in accordance with the constitution, including i.

giving a true and fair view of the group's financial position as at 30 June 2012 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1; and

ii.

present a view which is consistent with our understanding of the entity’s financial position and the results of its operations; and

iii.

complying with Australian Accounting Standards to the extent described in Note 1.

Robert White Public Accountant, Registered Company Auditor Reg No.:

Registered Company Auditor (# 5902) & MIPA (# 222132)

Dated:

2 November 2012

Page 2 of 2

page 12 of 12

REPORT

Watoto Australia Trust Account ABN 83 176 101 461

FINANCIAL REPORT FOR THE YEAR ENDED 30 June 2012

page 1 of 10

REPORT

Watoto Australia Trust Account ABN 83 176 101 461

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2012 TRUSTEES’ DECLARATION The trustees have determined that the trust is not a reporting entity. The trustees have determined that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements.

The trustees declare that: 1

The financial statements and notes, as set out on the accompanying pages: give a true and fair view of the trust’s financial position as at 30 June 2012 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements.

2

In the trustees’ opinion there are reasonable grounds to believe that the trust will be able to pay its debts as and when they become due and payable.

This statement is made in accordance with the resolution of the Trustees of the Watoto Australia Trust Account and is signed for and on behalf of the trustees by:

Dated:

page 2 of 10

REPORT

Watoto Australia Trust Account INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2012 (Statement of Financial Performance) 2012

2011

$

$

REVENUE Trading Income

0

0

less Direct Costs

0

0

Gross Profit

0

0

Donations and gifts - monetary & non-monetary

781,849

Legacies and bequests

1,751,013

0

0

• AusAID

0

0

• other Australian

0

0

• other overseas

0

0

Grants

Investment income

53,725

42,836

Sponsorship income

1,976,620

1,542,782

Total revenue

2,812,194

3,336,630

2,876,167

2,141,745

EXPENSES Overseas projects • funds to overseas projects • other project costs

0

0

Domestic projects

0

0

Community education

0

0

Fundraising costs • public

0

0

• government, multilateral and private

0

0

Administration costs

311,942

226,599

Other expenses

457,419

161,270

3,645,529

2,529,614

Total expenses Excess of revenue over expenses (shortfall) from continuing operations

$ (833,335)

page 3 of 10

$

807,015

REPORT

Watoto Australia Trust Account BALANCE SHEET AS AT 30 JUNE 2012 (Statement of Financial Position) 2012

2011

$

$

ASSETS Current assets • Cash and cash equivalents

1,341,236

• Financial assets

2,174,571

0

0

0

0

Non current assets • Property, plant and equipment • Other

0 1,341,236

Total assets

0 2,174,571

LIABILITIES Current liabilities • Trade and other payables

0

0

• Provisions

0

0

• Payables

0

0

• Other

0

0

Total liabilities

0

0

Non current liabilities

Net assets

$ 1,341,236

$ 2,174,571

$ 1,341,236

$ 2,174,571

EQUITY Reserves

page 4 of 10

REPORT

Watoto Australia Trust Account ABN 83 176 101 461

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 June 2012

Balance at 1 July 2010 add Surplus (Deficit) attributable to members Transfers from Reserves

Retained Earnings $ 1,367,546

Note

Reserves $

807,015 -

Sub-total less Transfers to Reserves

2,174,561

Balance at 30 June 2011 add Surplus (Deficit) attributable to members Transfers from Reserves

2,174,561

-

(

Sub-total less Transfers to Reserves

833,335) 1,341,226 -

Balance at 30 June 2012

1,341,226

page 5 of 10

TOTAL -

$ 1,367,556

-

807,015 -

-

2,174,571 -

-

-

2,174,571

-

(

-

833,335) 1,341,236

-

-

1,341,236

REPORT

Watoto Australia Trust Account ABN 83 176 101 461

Notes to and forming Part of the Accounts as at 30 June 2012 NOTE 1:

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

This financial report is a special purpose financial report prepared in order to satisfy the accounts preparation requirements of the . The Trustees have determined that the trust is not a reporting entity as referred to in Statements of Accounting Concept 1: Definition of a Reporting Entity, and there is no requirement to apply accounting standards in the preparation and presentation of these statements.

The statements have been prepared in accordance with the the following accounting standards: AASB AASB AASB AASB AASB

101 107 108 110 1048

Presentation of Financial Statements Cash Flow Statements Accounting Policies, Changes in Accounting Estimates and Errors Events occurring after Reporting Date Interpretation and Application of Standards

No other Accounting Standards, Urgent Issues Group Consensus Views or other authoritative pronouncements of the Australian Accounting Standards Board have been applied.

The report is also prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, except where specifically stated, current valuations of noncurrent assets.

Accounting policy changes under AIFRS have not affected existing balances reported. Thus figures have not been restated.

The fo llowing material policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this report: (a)

INCOME TAX As a not for profit entity, the Watoto Australia Trust Account is entitled to an exemption from the Australian Taxation Office from the payment of Income Tax on income derived by it and from the lodgement of income tax returns.

(b)

CASH For the purposes of the statement of cash flows, cash includes cash on hand and in at call deposits with banks or financial institutions, investments in money market instruments maturing within less than two months, net of bank overdrafts.

(c)

REVENUE Revenue from the sale of goods is recognised upon the delivery of goods to customers.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable.

All revenue is stated net of the amount of GST.

(d)

GST Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST is not recoverable from the Australian Taxation Office. In these cases, GST is recognised as part of the cost of acquisition of the asset or the expense.

Receivables and Payables in the Balance Sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis.

NOTE 2:

Profit from Ordinary Activities

2012

Profit from ordinary activities has been determined after

(a) Expenses – Remuneration of Auditor (b) Expenses - Depreciation & Amortisation (c) Expenses - Bad & Doubtful Debts

$ $ $

2011 -

$ $ $

-

REPORT

Watoto Australia Trust Account ABN 83 176 101 461

Notes to and forming Part of the Accounts as at 30 June 2012 NOTE 3:

CASH FLOW INFORMATION (a) Reconciliation of Cash Cash at end of the financial period as shown in the Statements of Cash Flows is reconciled to the related items in the balance sheet as follows: Cash at bank Bank Overdraft Cash on hand Term Deposits

2012

1,341,226 10 1,341,236

$ (b) Reconciliation of Cash Flow from Operations with Operating Profit after Income Tax

NOTE 4:

(

Cash flows from operations

($

$

2011

833,335)

2012

Trade Debtors Other Debtors Accrued GST Receivable Prepayments $

807,015

-

-

-

-

833,335)

RECEIVABLES & PREPAYMENTS

page 7 of 10

2,174,561 10 2,174,571

2012

Operating Profit after Income Tax Non-cash flows in operating surplus Amortisation Depreciation & expensed equipment Investments written off (Profit) Loss on sale of property, plant and equipment Changes in assets and liabilities Decrease /(Increase) in trade and term debtors Decrease / (increase) in prepayments Decrease / (increase) in other assets Decrease / (increase) in inventories Decrease / (increase) in intangibles (Decrease) / increase in trade creditors and accruals (Decrease) / increase in employee provisions (Decrease) / increase in income in advance (Decrease) / increase in GST Payable

Total Receivables & Prepayments

2011

$

807,015

2011

-

$

-

REPORT

Watoto Australia Trust Account ABN 83 176 101 461

Notes to and forming Part of the Accounts as at 30 June 2012 NOTE 5:

CREDITORS, ACCRUALS & TAX LIABILITIES

2012

Trade Creditors & Accruals Trade Creditors Accrued Expenses Bank Overdraft Loans Payable - within 12 months Loans Payable - over 12 months Monies received in advance Secured Loans Payable

$

Total Creditors & Accruals GST & Tax Liabilities GST Collected less GST Paid less Amounts Receivable Total GST & Tax Liabilities Total Creditors, Accruals & Tax Liabilities

$

Current Component Non-Current Component NOTE 6:

2011 -

-

$ $ $

-

$ -

$

-

-

$ $ $

-

-

MOVEMENTS IN EQUITY TRUST CAPITAL Balance at start of period Settlement Sum Surplus (Deficit) for Period

2,174,571 10 833,335)

(

Balance at end of period

$

page 8 of 10

1,341,246

1,367,556 10 807,015 $

2,174,581

REPORT

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF

Watoto Australia Trust Account ABN 83 176 101 461

SCOPE REPORT

on the Financial Report

We have audited the attached financial report of Watoto Australia Trust Account, being a Special Purpose Financial Report which comprises the Balance Sheet, Income Statement, Statement of Cash Flows and Notes to the Financial Statements for the financial year ended 30 June 2012 as set out on the accompanying pages.

DIRECTORS’

Responsibility for the Financial Report

The trust’s directors are responsible for the financial report and have determined that the accounting policies used and described in Note 1 to the financial report and the accounting disclosures contained therein are appropriate to meet the needs of the members. The directors’ responsibility also includes establishing and maintaining internal control(s) relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

AUDITOR’S

Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

The financial report has been prepared for distribution to members of the entity and the for the purpose of fulfilling the directors’ financial reporting. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members or for any purpose other than that for which it was prepared.

Robert White Public Accountant, Registered Company Auditor ROMAR ACCOUNTANTS Accountants Advisers Auditors ABN 80 010 323 083 PO BOX 3080 SUNNYBANK SOUTH Qld 4109 Ph (07) 3323 1704 Fax: (07) 3323 3339 e-mail: admin@romar.net.au | romarcpa@ozemail.com.au

page 9 of 10

Page 1 of 2

REPORT

Limitation to Scope As is common for organisations of this type, it is not practicable to cost effectively audit the system of internal control over cash receipts of donations, subscriptions or other fund raising activities. Accordingly, our audit tests over receipts were li We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit, we have complied with the independence requirements.

AUDITOR’S OPINION In our opinion, the financial report of Watoto Australia Trust Account for the year ended 30 June 2012 is in accordance with the constitution, including i.

giving a true and fair view of the trust's financial position as at 30 June 2012 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1; and

ii.

present a view which is consistent with our understanding of the entity’s financial position and the results of its operations; and

iii.

complying with Australian Accounting Standards to the extent described in Note 1.

Robert White Public Accountant, Registered Company Auditor Reg No.:

Registered Company Auditor (# 5902) & MIPA (# 222132)

Dated:

2 November 2012

Page 2 of 2

page 10 of 10