Annual Stories 2020 - UG

Arise & Shine

2020 ANNUAL REPORT

“Arise, shine, for your light has come, and the glory of the Lord rises upon you.

See, darkness covers the earth and thick darkness is over the peoples, but the Lord rises upon you and his glory appears over you.”

-Isaiah 60:1-2

TA B L E O F C O N T E N T S THE

IMPACT YOU’RE MAKING........................................... 4 MESSAGE FROM OUR FOUNDERS .................................. 5 WATOTO CHURCH.............................................................. 6 WHO WE ARE..................................................................... 7 WATOTO CHILDREN’S CHOIR . . ......................................... 8 BABY SHALOM . . ................................................................. 9 BABY WATOTO................................................................. 10 REAL-LIFE HEROES.......................................................... 12 WATOTO VILLAGES.......................................................... 14 SUSTAINABILITY. . ............................................................. 18 MEDICAL........................................................................... 19 WATOTO NEIGHBOURHOOD. . ......................................... 20 KEEP A GIRL IN SCHOOL................................................. 22 WHERE WE ARE............................................................... 23 FINANCIALS..................................................................... 24

T H E I M PAC T YO U ’ R E M A K I N G We are grateful for every single one of you who has sponsored, donated, volunteered, hosted, prayed or supported us in any way. It’s a big job taking care of thousands of women, children and babies—especially during a pandemic—and we honestly could not do it without you!

The 2020 highlights captured throughout this report are just a snapshot of the countless lives transformed by your generosity. We can’t thank you enough!

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BABY WATOTO Throughout last year, we cared for 162 of Uganda’s most vulnerable babies, providing the nutrition, medical care, love and protection they each needed to thrive.

WATOTO VILLAGES Across our three villages we provided 3,277 children with a home, food, an education and a loving family, as we taught them their value in Christ.

1,178 4

Watoto

3,277

WATOTO NEIGHBOURHOOD We embraced 1,178 women with the love of Jesus, and equipped them with adult literacy, vocational training, business skills and job opportunities.

MESSAGE FROM OUR FOUNDERS We want you to know that your friendship over the years has meant everything to us.

You are an incredible part of our Watoto family, and we’re so grateful for each and every one of you.

2020 was a year like no other. We pray that you received the messages of encouragement and prayer from our mothers, children and global team throughout this challenging season. Even though our Watoto Children’s Choir tours were cut short, your visits with us in Uganda postponed and our face-to-face interactions disrupted, we’ve been praying for you daily and can’t wait to see your beautiful smiles again soon.

As you know, we had six Watoto Children’s Choirs traveling when the pandemic hit in March 2020. As life rapidly changed before our eyes—whole nations came to a standstill, churches had to find new ways to reach people, airports and schools shut down—we all wondered what life would be like. But friends, we must never underestimate the favor of God on our lives. A year later, as we reflect on what has happened, all we can say is, “What a God we have, and how fortunate we are to have Him because He is famous for turning the unfortunate into the fortunate.”

In spite of the pandemic, we had a blessed year, and we give Jesus all the honor and glory. We’re happy to say that all the children and adults on our choirs are home safe, happy and healthy, as are the rest of our Watoto family in Uganda and South Sudan.

And while 2020 had its challenges, we were absolutely blown away by the generosity of churches, partners and friends like you around the world who helped us and continued to stand with us. Thank you for your sacrifice. We couldn’t do what we do without your love and support.

As you read some of the highlights and stories over the next few pages, we pray that you will see your partnership at work through the transforming power of Jesus’ love that changes lives.

In Christ, Gary and Marilyn Skinner Watoto Founders

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WATOTO C H U R C H We believe that God’s call for the global church is to care for the hurting and vulnerable. That’s why we celebrate Christ and care for community in everything we do at Watoto Church.

Before the pandemic, we worshipped together in person every weekend with over 35,000 people at 14 different locations across Uganda and South Sudan.

And throughout the week we would meet in small groups to connect with those in our communities. This is where we walked beside one another and truly grew as a family.

However, because of COVID-19, like many churches across the globe, we had to shift what “church” looked like. While it took some time for us to adjust, we were able to reach more than 63,000 people weekly through our online church services, and we celebrated as we saw nearly 2,000 people give their lives to Christ.

While we couldn’t physically meet up, in addition to our online services, we had over 1,000 small groups meet online weekly to pray and encourage one another.

And in a time when many were hurting, through this community we were able to provide food, basic necessities and other relief to those who were hit hard by the effects of the pandemic.

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WHO WE ARE Watoto is a family made up of people from all over the world who are working together to ensure the forgotten have a place to belong.

In a time of civil war, we planted a local church in Kampala, Uganda to speak hope and life to the nation. Since then, we’ve rescued orphaned and abandoned children, placing them in loving families. We’ve come alongside vulnerable women, equipping them with skills and empowering them to be the mothers and leaders God has called them to be. And to help our hurting neighbours, we’ve extended our reach into South Sudan.

In over 35 years, the challenges facing Africa have changed, but our goal remains the same. We come alongside the most vulnerable in our society, embracing them with the love of Jesus as we work to give each woman, child and baby a chance at a better future—a future full of promise.

And while this year brought new hurdles we had to overcome, your incredible generosity inspired us and helped us continue the work God has called us to do.

We’re grateful to each of you who partnered with us to transform the lives of those we are reaching together.

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WATOTO C H I L D R E N ’ S C H O I R Think back to January 2020—a new year with undoubtedly new hopes. For us, our beloved Watoto Children’s Choir was on the road traveling in six different countries. We were excited to be sharing the good news of Jesus with the world, while raising awareness of what God is doing through Watoto in Uganda and South Sudan. Who could have ever imagined what laid in store for all of us? The good news is Jesus knew. He remained faithful and provided for Watoto through your love and support. And for this we are beyond grateful.

Early in 2020, as it became clear a global pandemic was emerging, we had to make the difficult decision to cancel our tours and rush our choirs back home for their safety. In a few countries however, due to border closures and flight disruptions, we were unable to return to Africa. Yet God provided.

In the U.S. we were blessed by friends who opened up a beautiful guest ranch, giving our choir a home during the initial lockdown. Similarly, friends and partners in New Zealand, Malaysia and Brazil made our children feel at home, safe and loved during the height of such uncertain times.

These new temporary homes provided a place where they could continue their schoolwork and gave them room to play and be kids. From the bottom of our hearts, we want to thank every single donor, sponsor, church and host family who cared and prayed for our Watoto Children’s Choirs.

For the choirs back in Uganda, along with all our Watoto children and mothers, they found safety and security in our villages. And eventually all our choirs made it home and adjusted well to the “new normal” of COVID-19 protocols in place.

And in Uganda, we not only followed all government regulations, but we took every step imaginable to make sure our children were well taken care of and safe. Today, we’re happy to report our children are healthy and doing great. We are praying and believing we’ll be back on the road as soon as it is safe, and we cannot wait to see you.

As you read through this report, you’ll see stories of how God provided during these times, and how we not only continued with our mission of rescuing the vulnerable, raising future leaders and empowering the mothers in our neighbourhoods, but we found ways to thrive. This is all to the glory of Jesus and your incredible unwavering support.

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BABY SHALOM In the midst of the pandemic, as we leaned into God, we realized the other challenges we face haven’t gone away. The good news is God’s mercy, provision and peace haven’t gone away either. We hope this story will inspire you and remind you of God’s promise that He is with us during the storm.

Last year, as the world began to shut down and daily life as we knew it changed across the globe, Baby Shalom—which means “peace” in Hebrew—was rescued.

Miriam, our Baby Watoto Team Leader shared, “He will be called Shalom because he will be the reason for us to remember God’s peace through stormy times.”

Recently, in March 2021, Shalom celebrated his first birthday, and we know this is only possible because of your partnership. Over the past year, he has soaked up lots of cuddles from Nanny Jennifer. He has taken his first steps. And he has discovered his love of throwing balls, singing and reading picture books. With each activity he does, other little ones join him and naturally they begin to follow his lead.

As we watch Baby Shalom grow and thrive, he continues to be a beautiful reminder of God’s peace and faithfulness—and—that together we are rescuing Uganda’s future leaders.

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B A B Y WATOTO Although 2020 looked a little different as we had to navigate a national lockdown, our commitment to the vulnerable babies God has entrusted us with never wavered.

We were humbled by the dedication of our nannies when they decided to voluntarily live onsite because they wanted to ensure our precious little ones continued to receive the best care possible. They worked tirelessly, and their selfless acts of love inspired 87 of our teenaged children and young adults to serve at Baby Watoto.

These beautiful acts of love are the result of your prayers and your faithful partnership. From the bottom of our hearts—thank you!

34 94% 10

Watoto

BABIES RESCUED Our team worked with local authorities and sought creative solutions when COVID-19 restrictions were impacting our ability to rescue babies. Their actions meant 34 babies were given a chance at life.

BABIES REACHED THEIR MILESTONES 94% of our babies and toddlers reached their developmental milestones. This exemplifies the love and care all our staff put in to raising the next generation.

PA N D E M I C R E S C U E S Early in the pandemic, restrictions from the Ministry of Health and Gender in Uganda, as well as a lack of availability for COVID-19 testing, had an impact on our ability to rescue babies—but there were still little ones who needed us.

So, we continued to work with local authorities to provide support, and partnered with the Virus Research Institute to ensure babies could get the necessary tests for free. We are thrilled to share that because of these actions, 16 babies were rescued during the latter part of 2020, and 34 babies were rescued in total last year. While these babies had a tough start in life, we know God has great plans for each of these precious little ones.

Meet a few of the babies we were able to rescue together.

BABY ZANE As an infant Baby Zane was rescued from a pit latrine and rushed to the hospital for urgent medical care. Although he had a difficult start in life, today Zane is a very cuddly little one with a future full of hope.

LITTLE FIONA Fiona was found abandoned as a toddler—alone, dirty and crying. In September 2020, she was welcomed into the loving arms of her nanny here at Baby Watoto. She’s now a joyful little one who loves her new little family.

BABY JORDAN In early October, Jordan was welcomed into Baby Watoto when he was only two weeks old because his mother sadly died shortly after childbirth.

Thanks for creating a safe place for Jordan where he is surrounded by lots of love and can discover God’s purpose for his life.

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REAL-LIFE HEROES For every life rescued, there’s a story of a life transformed.

Last year schools were closed for several months and movement on and off our villages was restricted. This meant some of our nannies could not get to work. To help cover the staffing gap and ensure our babies were well taken care of, some of our Watoto teenagers and young adults voluntarily stepped up to help. We are grateful to each and every one of these 87 heroes—heroes like Lawrence.

As a young child, Lawrence was rescued and welcomed into a family in our Suubi village. And because of faithful sponsors, over the years we’ve been able to provide him with food, medical care, an education, and a home, as we taught him about the love of Christ. He’s now in high school and we love that we’ve been able to watch him grow into the leader God has called him to be.

Lawrence, and each one of these amazing young adults, are living proof that sponsorship works. Because of sponsors like you, their lives were transformed and now they are giving back and feeding into the lives of their younger Watoto brothers and sisters. We couldn’t be prouder.

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REAL-LIFE HEROES Elina was welcomed into Watoto when she was a young girl. She came with her mom who serves as a Watoto mother in our Suubi village. In addition to Elina, her mom is caring for seven other vulnerable children, and together they are a family.

Before coming here, Elina’s life was hard. But she shared how excited she was when she arrived at Suubi village and learned that she and her mother would get to live in a home with running water, and that she’d get to go to school.

Today, thanks to the faithful support of her sponsors, Elina’s now an electrician and one of our real-life heroes. When the pandemic hit and she heard that Baby Watoto needed volunteers, she didn’t hesitate to step up and help.

Elina shared, “From the time I was little, I wanted to serve in Watoto. So, when God opened a door for me to volunteer at Baby Watoto last year, it was a dream come true. While there, I got the amazing opportunity to watch my little Watoto brothers and sisters take their first steps—the experience was priceless.”

She continued, “I am forever thankful to God for Watoto—and for my sponsors— because they all contributed to who I am today.”

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OUR VILLAGES Our Watoto villages provide a safe place where a child can truly experience the love of a family. Since we first began over 25 years ago, we’ve rescued and provided a home, an education, a family and a bright future to over 5,500 children—and each year our family here grows. In fact, last year we newly welcomed 164 children into our villages.

And despite the challenges that 2020 brought, we continued to see God’s love in action in new and inspiring ways—from our teachers and mothers coming up with creative ways to ensure our kids could continue their education, to our medical staff going above and beyond to keep our Watoto family healthy and safe, to our pastoral team, coaches and leaders providing spiritual guidance and mentorship, to each of you—our amazing sponsors and partners—whose prayers and support helped carry us through. We are forever grateful!

164 3,277 14

Watoto

CHILDREN WELCOMED INTO OUR VILLAGES Thanks to you—our faithful sponsors and partners—last year 164 children received a home, an education and a loving family.

CHLDREN CARED FOR ACROSS OUR 3 VILLAGES Every day, across our three villages—Suubi, Bbira and Laminadera— we cared for more than 3,200 children. While we physically cared for them, your support ensured that all their needs were met.

MEET PIUS Pius is a 12-year-old who is full of hope—and he is living proof that sponsorship works.

After the death of his parents, Pius was rescued and brought to Watoto. Because of you—and all our sponsors around the world—today he has a home, an education, a mother that loves him, and everything he needs to grow up healthy and whole.

Like many boys his age, Pius likes planes and dreams of becoming a pilot one day.

While it may be a few years before that happens, in 2019 Pius got the opportunity to take his very first plane ride when he traveled to Australia as part of the Watoto Children’s Choir. While on tour, he loved being able to share the Gospel and tell people about all the amazing things God has done in his life.

This is what sponsorship does. It creates hope and dreams, and ensures children like Pius get to grow up surrounded by the love of Christ. Thank you for giving Pius, and his more than 3,000 Watoto brothers and sisters, a bright future that every precious child deserves.

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E D U C AT I O N Like many of you experienced, last year due to the pandemic school looked a bit different. Because of a national lockdown and school closures, we had to adjust and find new ways to educate our kids.

To help our students continue their studies while schools were closed, our teachers brought the “classroom” to them. They would go to the students’ homes and village circles—teaching the kids in small groups. And our Watoto mothers worked closely with the teachers, ensuring their homes—and their children—were prepped and ready for class. They also helped make sure everyone was following protocols and staying safe.

We’re thankful for our teachers and mothers, and those around the world, for finding creative solutions in such a unique year.

2,839 356 16

Watoto

STUDENTS WERE TAUGHT ON OUR VILLAGES Across our three villages, 158 teachers worked closely with our Watoto mothers to ensure that each of our 2,839 students continued to learn and grow in new and creative ways.

STUDYING AT UNIVERSITY OR A VOCATIONAL SCHOOL We’re proud that 356 of our students are continuing their education at a university or vocational school. And we celebrated as 34 of our students graduated from university last year.

RAISING FUTURE LEADERS We continue to expand education beyond the purely academic, so that we can encourage and equip our children—wherever their talents lie.

From school clubs like Music, Dance and Drama to our Sports Academy and our Worship Academy, we provide opportunities for our children to explore their passions. And last year these programs were vital as we worked hard to keep our kids active and engaged during the lockdown.

We’re grateful to our leaders, coaches and mentors who are helping our children grow in skill and character, as they discover their identity in Christ. Together, we are raising Uganda’s future leaders.

591

ATHLETES IN OUR SPORTS ACADEMY Our coaches trained and mentored 591 children— helping them play at their best and build their character on and off the field (or court). Our students learned to work together, play together and pray together.

NEW STUDENTS IN WORSHIP ACADEMY Last year we welcomed 151 students—who had never played an instrument before—into our Worship Academy. We can’t wait to see these kids use their newly found talents to worship and glorify God.

1,232

151

STUDENTS IN EXTRACURRICULAR ACTIVITIES We’re thrilled that 1,232 students participated in at least one of our extracurricular activities. And grateful to all our coaches and teachers for helping us raise these future leaders.

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S U S TA I N A B I L I T Y Our farms help provide the nutritious food our families need to grow up healthy— and last year this was needed more than ever.

In 2020, when many other suppliers could not get to our villages due to government-imposed lockdowns and restrictions, we were grateful that our farms were able to continue supplying fresh vegetables, fruit and eggs for our children and mothers, as well as goats milk for Baby Watoto.

On our poultry farm we had a phenomenal increase in the production of eggs, allowing us to provide each of our families with all the delicious eggs they needed.

This was largely thanks to the efforts of our new poultry farm manager, John Bosco—one of our amazing Watoto graduates you might remember from last year’s report. He changed the way operations were run, along with the care of our birds, resulting in a 90% increase in egg production.

We also bought new goats on our goat farm to ensure our babies had the milk necessary for them to thrive. And along with new goats, we proudly welcomed a new vet, Dr. George Muhanguzi—another one of our incredible Watoto graduates.

We praise God that we’re not only able to provide food for our families, but also able to provide technical training for some of our young adults and jobs for our graduates. Thank you for helping us create a bright, sustainable future for our children.

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MEDICAL Despite the challenges in 2020, our medical team went above and beyond to keep our Watoto family healthy and safe.

Our doctors and nurses collaborated with people in other departments to form a COVID-19 response taskforce. Together, they implemented and monitored preventative strategies against the virus, as set by the Ministry of Health in Uganda.

In addition to restricting movement on and off our villages, our team also educated all our mothers, children and staff on the importance of preventative measures such as social distancing, handwashing, and the use of face masks. And to assist with proper hygiene, handwashing stations were set up at all entry points of our villages, as well as in every “circle” (or cluster) of homes, and masks were given to everyone. We’re grateful to our medical team for keeping our families healthy.

1,752

IMMUNIZATIONS ADMINISTERED In addition to helping protect our children and mothers from COVID-19, our doctors and nurses administered 1,752 immunizations for diseases like measles, polio, and hepatitis B.

MOSQUITO NETS DISTRIBUTED While our team was protecting our Watoto families against a new virus, they still continued to protect them from diseases like malaria. To help with these efforts, they distributed 2,319 mosquito nets across our villages.

13%

2,319

REDUCTION IN PATIENT VISITS AT OUR CLINICS The tireless efforts of our doctors, nurses and medical team resulted not only in keeping our villages free of COVID-19 last year, but because of their focus on disease prevention, we also saw a 13% reduction in overall patient visits.

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WATOTO N E I G H B O U R H O O D In 2020, we continued to embrace vulnerable women in our neighbourhoods with the love of Jesus.

While last year brought uncertainty and loss for many of us across the globe, here in Uganda and South Sudan, due to restrictions and lockdowns, the livelihoods of many of our Watoto Neighbourhood mothers were greatly impacted. So, we worked to find ways to help make sure they had the means to pay their rent, feed their children and earn an income.

We provided much needed COVID-19 relief support, food baskets for 904 families during the holidays, startup capital and financial business boosts, along with masks and hand soap to help keep these amazing women and their families safe and healthy.

522 227 20

Watoto

MOTHERS RECEIVED COVID-19 RELIEF PACKAGES As their small businesses were shut down, some of our mothers were desperate and unable to make ends meet. So, we helped fill in the gap, providing food, rent and medical relief to 522 of our mothers.

SMALL BUSINESSES GOT A FINANCIAL BOOST During the lockdown, the businesses of many of our Neighbourhood mothers suffered, so we gave 227 women a financial boost to help them keep their businesses afloat.

MEET SCOVIA Meet Scovia. Once a vulnerable woman, today she’s an empowered daughter of Christ who is making a difference in her community.

Because she was equipped with business skills through Watoto Neighbourhood, Scovia had the confidence and know-how to start a business that allowed her to reach out to her neighbours when they needed her.

During the pandemic, she realized people were required to wear masks, but many in her community didn’t have one to wear. Concerned and wanting to help, Scovia discovered a way to serve others—she made and sold masks.

This is a radical shift. When times of trouble hit, Scovia was no longer a victim, but instead she was thriving and helping others.

This is what empowerment looks like. Your support made this possible. Because of you, Scovia—and thousands of other women—are embraced with the love of Christ and empowered to be the mothers and leaders God called them to be. We can’t thank you enough!



WATCH a video of Scovia’s story vimeo.com/watoto/MeetScovia

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KEEP A GIRL IN SCHOOL Education is critical to a girl’s future, yet many girls drop out simply because they can’t afford feminine hygiene products or the fees to go to school.

So, at the beginning of 2020, we expanded the number of schools we partnered with for our Keep a Girl in School initiative to 56 schools—35 in northern Uganda and 21 in South Sudan. Yet, as we began to increase the number of girls we were reaching, the pandemic caused school closures that temporarily shifted our efforts.

While schools were closed, we kept our Neighbourhood Center in Juba open and distributed sanitary packs to the girls from there. We also provided ongoing discipleship and counseling to over 7,300 girls, helping ensure they continued to feel supported and surrounded by the love of Christ during such a challenging season.

As schools slowly opened in the later months of 2020, through our Keep a Girl in School initiative, 838 girls in Uganda and 1,416 girls in South Sudan completed their primary school national exams. This means these girls now have a better chance of staying in school and going on to graduate high school.

Your support is not only ensuring girls receive an education, but it’s changing their future—and we’re forever grateful.

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WHERE WE ARE Watoto began in the 1980s in Kampala, Uganda. As the ministry grew, so did the need to facilitate support. Today, we have 11 support offices throughout the world where our partners and sponsors live. Each office is regulated by a local Board of Directors, ensuring good practices are followed at all levels.

Take a look at the map below to see where our work is taking place throughout Uganda and South Sudan.

Juba

SOUTH SUDAN

S. SUDAN UGANDA

Gulu

UGANDA Kampala

WATOTO CHURCH

14 LOCATIONS throughout Uganda 1 LOCATION in Juba, South Sudan

WATOTO VILLAGE

3 VILLAGES Bbira, Suubi, Laminadera

BABY WATOTO

2 LOCATIONS Suubi, Gulu

MEDICAL

3 LOCATIONS Bbira, Suubi, Gulu

KEEP A GIRL IN SCHOOL

LOCATIONS throughout Gulu & Juba

NEIGHBOURHOOD CENTER

2 LOCATIONS Kampala & Gulu 1 LOCATION Juba

WATOTO FARM

4 LOCATIONS Buloba, Suubi, Lubbe, Bobi

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FINANCIALS REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF WATOTO CHILD CARE MINISTRIES REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion We have audited the accompanying financial statements of Watoto Child Care Ministries, which comprise the statement of financial position as at 31 December 2020, and the statement of comprehensive income, changes in equity and cash flows for the year then ended, together with the statement of financial position of the Organisation standing alone as at 31 December 2020 and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information as set out on pages 17 to 46 of our full 2020 Financial Audit Report (on watoto.com/Financials).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Organisation as at 31 December 2020, and of the surplus and cash flows of the Organisation for the year then ended in accordance with International Financial Reporting Standards for Small and Medium Sized Enterprises.

Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Organisation in accordance with the International Federation of Accountants’ Code of Ethics for Professional Accountants (IFAC code) and other independence requirements applicable to performing audits of Watoto Child Care Ministries. We have fulfilled our other ethical responsibilities in accordance with the IFAC Code, and in accordance with other ethical requirements applicable to performing the audit of Watoto Child Care Ministries.

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

Other Information The directors are responsible for the other information. The other information comprises the Executive Directors’ Report and the appendices. The other information does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Statements The directors are responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards for Small and Medium Sized Enterprises, 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.

In preparing the financial statements, the directors are responsible for assessing the Organisation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the organisation or to cease operations, or have no realistic alternative but to do so.

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Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: •

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit 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 organisation’s internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

•

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Organisation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.

•

Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Organisation to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

•

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in the internal control that we identify during our audit.

The engagement partner on the audit resulting in this independent auditor’s report is CPA Michael Kimoni — P0248.

______________________________ Ernst & Young Certified Public Accountants of Uganda Kampala

______________________________ CPA Michael Kimoni Partner

27 May 2021

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FINANCIALS STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020

Notes

2020

2019

Shs‘000

Shs‘000

5

59,880,999

58,675,355

Operating Expenses

9

(39,079,178)

(55,298,483)

Administrative Expenses

10

Income Expenditure:

Total Expenses

(8,242,790) (63,541,273)

Operating Surplus/ (Deficit)

7

13,713,244

(4,865,918)

Net Finance Income

6

922,447

1 , 21 9, 933

14,635,691

(3,645,985)

-

-

14,635,691

(3,645,985)

Surplus/ (Deficit) for the Year Other Comprehensive Income Net of Tax Total Comprehensive Income/(Loss) for the Year

26

(7,088,577) (46,167,755)

Watoto

FINANCIALS STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

Assets

Notes

2020

2019

Shs‘000

Shs‘000

Non-Current Assets Property and Equipment

11

41,757,645

42,516,884

Operating Lease Prepayments

12

397,560

413,558

Intangible Assets

13

20,408

26,627

Investment in Subsidiary

14

1,040

990

42,176,653

42,958,059

223,442

137,050

16(a)

9,006,730

7, 970,1 1 8

Receivables and Prepayments

17

2,891,015

3,394,216

Held to Maturity Investments

18

25,120,052

1 4,01 1 ,1 63

Bank and Cash Balances

19

10,743,427

5,843,628

47,984,666

31,356,175

90,161,319

74,314,234

80,554,993

65,919,302

16(b)

3,365,456

2,142,963

Payables and Accruals

20

5,776,584

6,251,969

Deferred Income

21

464,286

-

9,606,326

8,394,932

90,161,319

74,314,234

Current Assets Inventory Amounts Due from Related Parties

15

Total Assets Equity and Liabilities Capital and Reserves Accumulated Surplus Current Liabilities Amounts Due to Related Parties

Total Equity and Liabilities

The financial statements were approved by the Board of the Directors on 23 April 2021 and signed on its behalf by:

_____________________

_____________________

Edward Mwesigye, Director

Kenneth Kanzairwe, Director Annual Stories

27

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