ANNUAL REPORT 2015
TABLE of Contents
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3
05
VISION
08
CELEBRATION POINTS
10
FOUNDER’S MESSAGE
12
THE WEEKEND CELEBRATION
16
KANSANGA
18
JUBA
20
THE CELL
22
THE COMMUNITY
26
A LIFE RENEWED
27
EVENTS
28
DISCIPLESHIP
31
TRANSFORMING COMMUNITY
32
EQUIP NITES
33
SCHOOL OF COMMUNITY LEADERSHIP
34
THE MARKETPLACE
36
104.1 POWERFM
38
THE FUTURE
42
EXECUTIVE DIRECTOR’S MESSAGE
44
FINANCIALS
4
Vision We are an English-speaking, cell based, community church, celebrating Christ, growing and multiplying as each one reaches one, touching those around us with the love of Jesus, bringing healing to cities and nations.
5
Core VALUES Christ LOVE Character WORD Faith COMMUNITY
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Vision EXCELLENCE Justice WORSHIP Unity GENEROSITY 7
Locations DOWNTOWN Watoto Building Plot 87 Kampala Rd PO Box 2311 Kampala Uganda +256 312 266461/2/3/4/5 info@watotochurch.com KANSANGA Wonder World Theatre (former Didi’s World)
Service Times Saturday 5pm Sunday 8am (Classic), 10am, 12am, 2pm. Sunday 8am, 10am
NTINDA Kigoowa - Kisaasi +256 312 266 468
Sunday 8am, 10am, 12pm
BWEYOGERERE Kazinga +256 312 266 466
Sunday 8am, 10am, 12pm
KYENGERA Kyengera +256 312 266 469
Sunday 8am, 10am
LUBOWA Lubowa Estates +256 312 266 467
Sunday 8am, 10am, 12pm
BBIRA Watoto Village, Bbira +256 312 266 471
Sunday 8am, 9.30am, 11.30am
SUUBI Watoto Village, Nakirebe +256 312 266 470
Sunday 8am, 9.30am, 11.30am
GULU Plot 2-24, Sir Samuel Baker Rd Olayilong +256 372 260 469 LAMINADERA Watoto Village, Labora +256 782 140 131 JUBA Nyakuron Cultural Centre +211 177 800 412
Sunday 8am, 10am
Sunday 8am, 9.30am, 11.30am Sunday 9am, 11am
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CELEBRATION Points
9
FOUNDER’S Message We thank God for another fantastic year at Watoto Church. 2015 has been a great success. One of the biggest highlights this year, was the launch of a brand new celebration point. In February, we started Watoto Church Kansanga and we rejoice that, by the end of the year, nearly 3,000 people have been attending church here regularly. We were also able to complete our beautiful new children’s church facility at Watoto Church Bweyogerere and a new home for Watoto Church Gulu. Both facilities will officially be opened in January 2016. Next year, we look forward to many exciting activities and milestones. We want to start up at least one more celebration point. We are also thrilled to be hosting the renowned production, Heaven’s Gates and Hell’s Flames again. This powerful gospel story has been changing lives for decades and, as we host it in Kampala and Gulu, we’re praying for a mighty harvest of souls. None of these things would be possible without the faithful support and generosity of everyone of you. As we look forward to going to the next level in our service to our members, our cities and our nation, we want to thank each of you for the part you play in the house of God. Whether you’re participating by sponsoring a child, being faithful with your giving, working in a cell group or caring for your community, we appreciate you. Together, God is helping us build a transformational church that is bringing healing to cities and nations. Thank you for your faithfulness. May God bless you.
Gary and Marilyn Skinner
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GROWTH
As Kampala and Uganda experiences rapid population growth and the expansion of urban areas, Watoto Church needs to expand too, so as to be accessible to people. This year, we planted Watoto Church Kansanga as an extension to the central district. It launched on 1 February 2015 with 1,841 people. By the close of the year, we’ve seen an average weekly attendance of 2,915 people. 451 gave their lives to Jesus and 1,122 visitors have been recorded from February to December 2015. We give God glory for that.
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13
24,064
WEEKLY AGE CE R E LE V A
THE WEEKEND Celebration Church-wide Average weekly attendance
B
N ATTEND O I AN T A C R
E
24,064
14
HIGHEST A TT
EN E NC DA
25,885
15
25,885
5% GROWTH
DEMOGRAPHIC
Adults
THE WEEKEND Celebration 24,000+ Average weekly 11 Celebration Points
Children Morph CELEBRATION POINT
highest attendance 25,885
Downtown
(On Easter sunday 2015)
Kansanga Ntinda
people gave their lives to Jesus (During weekend services)
3,796
Bweyogerere Kyengera Lubowa
First time visitors (Throughout the year)
9,260
Gulu Juba Suubi Bbira Laminadera
16
2014
2015
% GROWTH
16,057
16,502
3
6,025
6,688
11
863
811
-6
AVERAGE WEEKLY ATTENDANCE
HIGHEST ATTENDANCE
% GROWTH
6,430
7,666
*7%
1,845
5,952
4,563
5,980
2%
3,740
4,591
9%
1,206
1,509
14%
1,904
2,260
10%
1,439
2,030
-9%
408
543
114%
1,218
1,632
-11%
859
1063
-2%
522
589
7%
17
JUBA, SOUTH SUDAN
In spite of persistent political instability, Watoto Church Juba started a 2nd service in May 2015. The church continues to grow and is seeing an average weekly attendance of over 500. Joe and Jackie Ogwal are focusing on discipling the congregation and looking at the key needs in the community. The political situation has been a challenge to the execution of all plans in development. We are ready to set up community care projects, based on the key needs on the ground. Equipment and other structures are already on the ground in Juba. As soon as land is acquired, work can begin. 18
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THE CELL A cell group is the basic unit that forms the life of the church. It is a small group of people, who are members of the church, that do life together in their community. They meet weekly to be empowered and inspired by God’s Word, and help each other on life’s journey.
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6% GROWTH
21
2,289
157
10,426
TOTAL NUMBER OF CELLS
NEW CELLS
AVERAGE WEEKLY ATTENDANCE
THE COMMUNITY Watoto Church believes in being relevant to the community in which it resides. This is done by ministering to the whole man – spirit, soul and body. Watoto Church is committed to being practical in its love, not only preaching the Gospel of Christ, but by practising it through acts of Godly generosity, equity, mercy, love and kindness. We work together with the community to identify areas of need, and come up with practical ways to bring tranformation through various projects.
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Seed Projects
200
Strategic Community Partnerships
WITH THE COMMUNITY. FOR THE COMMUNITY
One of the outstanding mission activities of the annual camp by university students was the construction of a pit latrine for a community of disabled women. The facility was in a dilapidated state and inconveniencing to use. Many times, they were promised by visitors to work on the facility but no-one ever followed through. With the contributions from campus students and well-wishers, the young people raised over UGX 1.7 million and constructed a two-roomed pit latrine for the women. They also
22
TOTAL SALVATIONS
4,112People 316
Salvations from the Community Outreach Projects
Celebration Services
3,796
Community Projects
316
First Time Visitors
10,290
21% more than in 2014 Celebrations Services 9,260 painted the walls of the Kabale Police station and cleaned the area around it thus giving it a face-lift. One of the police officers shared that he was very grateful for the work done because it had last been painted ten years ago by a Christian man.
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Events
1,030
COMMUNITY Seed Projects
Over 7,000 people received free medical care and treatment. 14 Zebra crossings painted with in the city center and suburbs. Partnered with 18 schools to facelift classroom blocks and provide access to safe drinking water for children.
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LIFE CHANGING Events
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A LIFE RENEWED Morph services create an atmosphere for teenagers to experience God’s presence and transforming love. Vicar is a teenager from Juba, South Sudan. He was part of a gang that used to commit crime and violence on the streets. They were involved in gun violence, robbery, murder and other assaults. He was involved in gang activity from the age of 9 years and after became an outcast from his family. One of his cousins, who attends Morph service at Watoto Church Juba invited him to church. One Sunday morning, he decided to tag along with an intention to steal from church. “When I entered, I immediately felt different,” he says. He found an atmosphere of love and care from the people at church and saw no reason why he wouldn’t want to be like them. He gave his life to the Jesus and his life style changed. He quit the gang, closed his Facebook page and made church his hangout every Thursday and Sunday. He has already written more than 20 songs about God’s love, his testimony and church. 28
EVENTS
All Nite Sing Attendance 15, 743 (Downtown, Ntinda and Gulu)
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Kidz ‘N Ova Attendance 298+ Salvations 124
History Makers Camp Attendance 300+ Salvations 112
Children’s Camp Attendance 500+
Medical Camps +913 people treated
Soccer Outreach Salvations 61
Christmas Cantata Attendance 27,478 Salvations 1,211
DISCIPLESHIP Watoto360° Watoto360° is Watoto Church’s discipleship program, launched in 2010, to holistically disciple young adults with emphasis on spiritual growth, character development and preparation for service. Watoto360° is committed to discipling a whole person so as to transform a whole community and the whole world for God’s glory.
I Timothy 4:8: “Physical training is good, but training for godliness is much better, promising benefits in this life and in the life to come.” 55 young adults graduated from Watoto360° 2015 class. Among the graduates were 6 internationals, 6 Watoto Church members and 43 young adults from our Watoto villages. 30
Bayley Lang Bayley Lang, one of the 2015 graduates has been appointed a volunteer worship pastor in his church in Australia. This is because of his Involvement in Watoto Church’s Creative Arts ministry when he was a Watoto360° student. He’s convinced that would not have happened if he had not come to Uganda to do Watoto360°. 31
PRAYER CHANGES THINGS Daily morning Prayer 501 average attendance. Daily lunch-hour prayer 427 average attendance. Week of prayer & fasting/Overnight 2,106 attendance
32
TRANSFORMING COMMUNITY
Six Makerere University Business School students who graduated from Watoto360° last year have adopted a poor Muslim family in one of the Katanga Slums. As a result, they visit them regularly. The group leaders are Bernadette Nankya and Ivan Egesa who are young adults from Watoto’s Suubi Village. They were inspired to take that initiative by community outreaches they were involved in as Watoto360° students. 33
EQUIP NIGHTS Over 230 graduates from the different various Equip Nite classes at Downtown
34
SCHOOL OF COMMUNITY LEADERSHIP A leadership course to equip Christian professionals to be transformational agents in their spheres of influence and community. 31 students graduated from School of Community Leadership. New students enrolled in August 2015 include 46 students in Kampala and 38 Gulu.
35
THE MARKETPLACE
A new ministry called the MarketPlace was launched mid-year to empower and mentor members in the primary areas of the marketplace including Education, Government, Celebration & Arts, Media & Communication, Church & Religion, Family, and Business & Economy.
CHANGING THE MARKETPLACE “We had a perennial problem in the budget process where government claimed it did not have enough money to spend on drugs. I was able to look for all the money the government thought it was spending on drugs which was getting diverted, and I centralised it in one purse to reduce wastage of tax payers’ money,” says Moses Kamabare, CEO National Medical Stores, Watoto Church Kyengera
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38
104.1 POWERFM Every year, we do a special celebration called Easter in Prison. This incredible outreach is designed to share the love and hope of Jesus with over 2,500 inmates at Luzira Upper Prison, Kampala. This annual outreach by 104.1 PowerFM saw 127 inmates give their lives to Christ and over UGX 6M worth of items given to the inmates through the generous giving of the station’s listeners. 39
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THE FUTURE
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WATOTO Neighbourhood Watoto Child Care was birthed out of Watoto Church over 20 years ago to meet the overwhelming need to intervene in the orphan crisis as a result of HIV/AIDS. With the introduction of ARVs, things are changing... the need is changing. Africa’s greatest challenge now is the treatment of her women. Through Living Hope, Watoto Church has come alongside some of Uganda’s most vulnerable women to embrace and empower them, so that they can begin to engage their children and their community. As a result, not only do these women benefit, but their children also benefit – they are nurtured, educated and empowered to reach their full potential. In 2016, Watoto Church will begin to introduce the Neighbourhood, an initiative to meet the women right where they live. Their key needs include housing, medical support, employment, and education for their children. In fact, the greatest desire these women shared was that their children would receive an education, an opportunity many of them never had. So, the first phase in the Neighbourhood initiative is the education of their children. In early 2016, we will identif just over 100 children of our Living Hope women, who will be admitted to our schools in the Watoto villages during the school term. They will return home to their mothers in the community every holiday. And this is just the beginning. Watoto Church is committed to partnering with these women to find sustainable solutions for their key needs, which will be implemented progressively over the next few years.
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EXECUTIVE DIRECTOR’S Message Friends, its amazing at the end of each year the same two thoughts come to mind... What an amazing year this has been, and God is going to do much more in the coming year! We know that the best is yet to come simply because we have continuously seen your commitment to God, selfless acts of service and generosity. As a ministry, we are committed to see that you become an ardent follower of Christ who is inspired, encouraged and equipped to transform the community. 2015 has been a blessed year! We opened our first extension service at Kansanga of the targetted 25 addition extension services we plan to open in the next 10-15 years. We also broke ground at our Gulu and Bweyogerere campuses to build two of our first children’s church buildings. The average number of people attending weekend celebrations rose to over 24,000 and we welcomed 3,976 people who gave their lives to Christ. We also had 10,290 people visit our celebration points for their very first time in 2015. This is 21% more people than we received in 2014. On the financial side, our giving grew by 19% despite external economic challenges. This does not take into account our Miracle Offering. Clearly this is the favour of our great God and He alone deserves all the glory. While we’ve accomplished so much together in 2015, God continues to sharpen the vision He has given Watoto and open doors for greater opportunities than ever before. As a community church that celebrates Christ, our God given vision revolves around caring for the community and causing Christ centred transformation. That is why we are excited about how our Neighbourhood vision that provides every member of the congregation an opportunity to participate in communities where you live or serve as the hands and feet of Christ our Lord. Our prayer is that you make a life time commitment to serve Jesus. WHAT’S AHEAD In 2016, we are going to focus on creating as many opportunities as possible for at least ten thousand more people to encounter the saving grace of Christ. We plan to achieve this by launching at least two extension services, one of which will be in Bugolobi. We also plan to host the evangelism production, Heavens Gates and Hells Flames in Kampala and Gulu. In addition, we will continue to pursue our building strategy by constructing a permanent worship centre for our children at Ntinda. THANK YOU To our friends and partners, we are well aware that we couldn’t do all of this without you and God! As you read this report, you will discover that your faithful giving has tremendous impact on thousands of lives. Thank you for your faithful partnership with us and for your commitment to the work of God. May God truly bless you for your faithfulness. To my colleagues on the Watoto team, your labour in the Lord is never in vain. Watoto will forever be grateful for your dedication to the vision. On our part, we will continue to have razor sharp focus to ensure that Watoto Church grows as a vibrant and influential local church; and has strong continuity of pastoral leadership that provides vision for the future. The church is well resourced to bring healing to cities and nations. God bless you and may He continue to make you a blessing. Steven Kisingiri | Executive Director | Watoto Church
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45
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FINANCIALS
47
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 CHURCH
GROUP
Notes
2015
2014
2015
2014
Shs‘000
Shs‘000
Shs‘000
Shs‘000
ASSETS Non-current assets Property and equipment
10
25,830,381
21,109,532
25,379,874
20,598,686
Operating lease prepayments
11
1,773,275
1,791,696
1,691,930
1,706,815
Intangible assets
12
10,488
2,759
10,154
2,208
Investments in subsidiaries
13
-
-
860,562
860,562
27,614,144
22,903,987
27,942,520
23,168,271
Current assets Receivable and prepayments
14
648,726
673,131
516,274
600,149
Held to maturity investments
15
2,307,671
674,974
2,307,671
674,974
Amounts due from related parties
16
-
768,756
915,279
1,657,401
1,164,597
1,734,860
1,120,987
1,702,819
4,120,994
3,851,721
4,860,211
4,635,343
31,735,138
26,755,708
32,802,731
27,803,614
26,281,374
22,050,353
27,657,357
23,393,287
15,558
23,447
-
-
26,296,932
22,073,800
27,657,357
23,393,287
2,602,625
3,020,442
2,602,625
3,020,442
2,602,625
3,020,442
2,602,625
3,020,442
Cash and cash equivalents
TOTAL ASSETS EQUITY AND LIABILITIES Capital employed Accumulated surplus Non-controlling interest
Non-current liabilities Borrowings
17
Current liabilities Borrowings
17
356,644
348,673
356,644
295,472
Amounts due to related parties
16
496,610
423,790
497,096
448,074
Payables and accrued expenses
18
1,982,327
889,003
1,689,009
646,339
2,835,581
1,661,466
2,542,749
1,389,885
31,735,138
26,755,708
32,802,731
27,803,614
The financial statements on pages 10 to 35 were approved by the Church Council on 22-04-2016 and signed on its behalf by:
_____________________________________
____________________________________
Director
Director
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REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF WATOTO CHURCH LIMITED (CONTINUED)
Report on other legal requirements As required by the Ugandan Companies Act, 2012 we report to you, based on our audit, that: (i)
we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of the audit;
(ii) in our opinion proper books of account have been kept by the company, so far as appears from our examination of those books; and (iii) the company’s statement of financial position and statement of comprehensive income are in agreement with the books of account.
Certified Public Accountants KAMPALA 2016
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DIRECTORS REPORT The directors present their report together with the audited financial statements for the year ended 31 December 2015 , which disclose the state of affairs of Watoto Church Limited (“the “Church” or “the Company”) and its subsidiaries Power FM Limited and Kampala Playhouse Limited (collectively referred to as “the Group”). VISION STATEMENT To be an English speaking, cell based community church, celebrating Christ, growing and multiplying as each one reaches one, touching those around us with the love of Jesus, bringing healing to cities and nations. PRINCIPAL ACTIVITIES The principal activity of the Church is to win and disciple people through evangelism, preaching and teaching the gospel of Jesus Christ in celebration points and cells. RESULTS The Group’s surplus for the year of Shs 4.22 billion (2014: deficit of Shs 580 million) has been added to the accumulated surplus. DIRECTORS The directors who held office during the year and to the date of this report were: • Rev Franco Jacky Onaga • Stephen Langa • Milton Ogeda • Jacqueline K. Opondo (Mrs.) • Patrick Kagoro AUDITORS The Church’s auditors, Ernst & Young, have expressed their willingness to continue in office in accordance with Section 167(2) of the Uganda Companies Act. By order of the Board
SECRETARY
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A WORD OF APPRECIATION To our friends and partners, we are well aware we couldn’t do all this without you and God! As you read this report, you will discover that your faithful giving has tremendous impact on thousands of lives. Every life changing story you read or view on any of our mediums is because of your faithful giving and continued prayers. Thank you for your faithful partnership with us and for your commitment to the work of God. Together we have done a lot. But there is a lot more that needs to be done! May God truly bless you for your faithfulness. For my colleagues on the Watoto team, your labour in the Lord is never in vain! Watoto will forever be grateful for you your dedication to the vision. On our part, we will continue to have razor sharp focus to ensure that; • Watoto Church grows as a vibrant and influential local church. • Has strong continuity of Pastoral leadership that provides vision for the future. • The Church is well resourced to bring healing to cities and nations. God bless you and may he continue to make you a blessing!
Steven Kisingiri EXECUTIVE DIRECTOR Watoto Church Limited
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2015 GROUP Notes
CHURCH
2015
2014
2015
2014
Shs‘000
Shs‘000
Shs‘000
Shs‘000
Income
5
23,853,496
18,173,624
23,225,061
17,506,313
Ministries expenses
6
(13,136,274)
(12,112,853)
(13,690,100)
(12,845,877)
Operating expenses
7
(6,298,257)
(6,540,381)
(5,077,828)
(5,308,621)
Operating surplus/ (deficit)
8
4,418,965
(479,610)
4,457,133
(648,185)
Finance costs
9
(195,833)
(99,935)
(193,063)
(92,315)
4,223,132
(579,545)
4,264,070
(740,500)
-
-
-
-
Surplus / (deficit) for the year
4,223,132
(579,545)
4,264,070
(740,500)
Other comprehensive income
-
-
-
-
4,223,132
(579,545)
4,264,070
(740,500)
4,231,021
(579,604)
(7,889)
59
4,223,132
(579,545)
Surplus /(deficit) before income tax
Income tax expense
Total comprehensive income/(loss)
19
Attributable to; Owners of the parent Non-controlling interests
52
STATEMENT OF DIRECTOR’S RESPONSIBILITIES FOR TH EYEAR ENDED 31ST DECEMBER 2015
The Uganda Companies Act, 2012 requires the directors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Company as at the end of the financial year and of its profit or loss. It also requires the directors to ensure that the Company keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Company. They are also responsible for safeguarding the assets of the Company. The directors accept responsibility for preparation of the financial statements, using appropriate accounting policies supported by reasonable estimates, in conformity with International Financial Reporting Standards and the requirements of the Uganda Companies Act, 2012. The directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Company and of its profit in accordance with International Financial Reporting Standards and the Uganda Companies Act. The directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Nothing has come to the attention of the directors to indicate that the Company will not remain a going concern for at least twelve months from the date of this statement.
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____________________________
____________________________
Director
Director
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