ZOA annual report 2016 by ZOA

Annual Report 2016

Contents

1. Introduction

2. ZOA’s context

3. Executive Report

4. Supervisory Board

5. Partnerships and Networks

6. Organisation 14

7. An integrated approach

8. Fundraising and Communication

10. Disaster Response 50

9. ZOA Worldwide

Afghanistan

Philippines 50 Nepal 50 Somaliland 51 Nigeria 51

5 7

10 12

26 Burundi 28 DR Congo 30 Ethiopia 32 Liberia 34 Middle East Region 36 Myanmar (through CDN) 40 South Sudan 42 Sri Lanka 44 Sudan 46 Uganda 48

11. Financial Report 53

Main trends 53 Balance sheet 56 Statement of income and expenditure 57 Cash flow overview 59 Explanatory notes to the annual accounts 60 Accounting principles for the balance sheet 61 Accounting principles for the statement of income and expenditures 63 Explanatory notes to the balance sheet 64 Explanatory notes to the statement of income and expenditure 72 Independent auditor’s report 82 Annex A - Long range overview and estimates 84 Annex B - Budget 2017 85

The stories

Happy with a cooking stove - Malaak from Mosul 4 Former criminal becomes farmer - Peter from Uganda 9 Women meet women - Dutch women in Congo 20 A peace agreement in South Sudan 86

1 Introduction Many people around the globe use the word ‘peace’ to greet each other. “How is your peace? Peace be with you!” Clearly people wish to live in peace. Only if there is lasting peace can people and communities flourish and develop. Yet unabated demand continues for ZOA and similar organisations to provide emergency aid and support communities in becoming stable, self-sufficient and resilient. The year 2016 was no different. The crisis in the Middle East is in the forefront of the minds in Western Europe. Here we face the direct consequences of this conflict. It focusses the mind. It has, however, also led to polarised reactions as far as the influx of refugees is concerned. Admittedly it is difficult to strike the right balance between helping refugees and internally displaced people in the region and having an open door policy. ZOA has over four decades of experience in helping fellow humans in their own context while suffering from conflict or natural disaster. We know that this approach can be effective and cost efficient when the problems are addressed in a timely and proper manner. In 2016 ZOA was able to reach out to approximately 1.5 million vulnerable people in nineteen countries. These are (post)-conflict countries and/or countries struck by natural disaster such as the earthquake in Nepal and the major drought effect caused by El Niño. Many of these crises seem to have gone unnoticed by the general public. Yet ZOA and fellow organisations continued to work with these vulnerable people and are trying to keep them on the agenda both with institutional donors and our private constituency. We are very thankful that both our international and local staff are capable and willing to serve under difficult circumstances and

in at times insecure environments. In the summer of 2016 we came face-to-face with this reality when one of our valued local employees in South Sudan was killed in an ambush for no reason. ZOA invests significantly in security and preventive measures. Yet we realise that this is no guarantee for absolute safety. We are equally thankful that again this year we received substantial financial means to serve. Our Dutch constituency has once more responded generously to the needs worldwide. Also institutional funding enabled us to continue our support for victims of conflict and disaster, even though the competition for these funds is at times severe. In general we see a trend to more emergency aid and less investment in recovery and development. That is understandable given the size of the emergencies and the political climate. However, in the long run there is a need to invest in stability, resilience and creating self-sufficiency. Thank you for your support and commitment in 2016. This support and our Christian inspiration are an encouragement for all of us at ZOA to continue and where possible to expand our rewarding work among the vulnerable. Sincerely yours,

Chris Lukkien Chief Executive Officer

Arco van Wessel Chief Programme Officer

Happy with a cooking stove - Malaak from Mosul

In October 2016 ZOA started a disaster response in Kurdistan to help victims of IS in and around Mosul. Malaak and her mother were two of the people we were able to help. Shaima and Malaak are IDPs for the second time. Initially displaced from the Sinjar region in 2014 due to IS occupation, they were displaced again from Wadi Hajar in western Mosul due to the current battle. Malaak (12) has been out of school for 2 years in Wadi Hajar because her mother did not want her to study under the IS education system. Fortunately, she has already found a place at a local school in Al Arabi, a suburb of eastern Mosul. Shaima had some occasional employment in beauty salons in Wadi Hajar, but has yet to find such employment in Al Khadra. They live in a caravan among many other families displaced from Wadi Hajar, and like most people, they have no income. The top priority needs as described by Shaima include money, food and clothes. Through the generous support of our donors, ZOA provided a 30-day food package for Shaima and Malaak, as well as drinking water in partnership with CNSF. Before the distribution Shaima had been cooking their food on wood which is becoming increasingly hard to find in such an urban area, so she was very grateful to also receive a small cooking stove and gas cylinder.

Chapter 2

2 ZOA’s context Why we serve We are inspired by our Christian identity and the biblical message of reconciliation and restoration of a broken world. We serve those who are affected by violent conflict and natural disasters. We act by contributing to the realisation of signs of hope and restoration. We see this when people can experience peace, justice and mutual trust, and where they regain personal dignity and confidence. We act in line with, and contribute to the biblical perspective of God’s Kingdom. A perspective that urges us to advance reconciliation and restoration to its full potential, as visible signs of God’s call to do justice and be faithful to those who need our support.

ZOA’s mission ZOA supports those who suffer because of violent conflicts and natural disasters in fragile states, irrespective of race, gender, ethnicity, religion or age. Through our long-term commitment, we attend to the needs of those we serve: at different stages, from relief to recovery, in a variety of sectors. By working alongside

communities, we contribute to signs of hope and restoration. We ensure people’s dedicated participation in rebuilding their lives so as to have a lasting and sustainable impact. We also call on our constituency and partners worldwide to take responsibility and become involved.

• • • •

ZOA’s key values

•

ZOA’s staff is united worldwide by a set of common values. We strive to adhere to these values in our attitudes, words and deeds: • human dignity • faithfulness • stewardship • justice

Highlights

• • •

Reaching 1.5 million people with our support; Opening an office in Nigeria (see chapter 10); Successful completion of the relief programme in the Philippines (see chapter 10) The facilitation of peace agreements in South Sudan between Jonglei and Boma States (see page 86); Nine female entrepreneurs visiting teenage mothers in DR Congo and raising over € 100,000 for this project (see page 20); 15,586 volunteers collecting € 858,842 for ZOA’s work during the national doorto-door collection; 4,602 primary school children participate in Walk for Water, raising nearly € 80,000 for water projects in Burundi; Total income 2016 (excluding consortia partners’ income): € 40,600,058 (see chapter 11).

Chapter 3

3 Executive Report Looking at the numbers of people affected by conflict and natural disaster, we are always aware that the needs are greater than we can cater for. Yet we are grateful for what we were able to realise for approximately 1.5 million people in nineteen countries in Asia, Africa and the Middle East in 2016. Through the years ZOA has built up a reputation for being reliable and committed. This is largely due to the commitment and competence of our staff worldwide. It is encouraging time and again when both institutional and private donors entrust us with their grants and donations. In the year 2016 we succeeded in providing assistance to an amount of € 40.6 million excluding grants for consortia partners. Approximately 23 percent came from own fundraising and 74 percent from institutional funding.

Programmatic developments 2016 Given the many humanitarian needs in 2016 either in our existing or nonprogramme countries we increased the capacity of the Disaster Response Team. This DRT was able to respond quickly to emergencies related to the drought caused by El Niño in Ethiopia and Sudan. In the latter part of 2016 ZOA started setting up humanitarian support in North-East Nigeria where many people are displaced as a result of Boko Haram aggression. Our

relief work in the Middle East continued in 2016, helped by private donations and grants through the Dutch Relief Alliance (DRA). ZOA acted as the lead of the first and second Syrian Joint Response implemented by DRA. The piloting work with urban refugees, started in 2015, was continued in 2016. For instance the work in Kabul with young urban refugees living in slums was very successful as they learned a trade through vocational skill training and found a job. Unfortunately institutional funders have only to a very limited extent been forthcoming with funding to enhance and broaden the work among the ever increasing numbers of urban refugees. In the countries where recovery work is possible, ZOA has invested strongly in land rights and peacebuilding/reconciliation, in line with our strategy as formulated in Signs of Hope 2015 - 2018. The results are encouraging and ZOA is succeeding in attracting institutional funding. This, in combination with our vast experience in the field of livelihoods and basic education, provides a solid basis for working with communities to create stability and income. Particular attention is given to youth employment and women’s rights.

We were pleased to be selected as the lead in three consortia for ‘Addressing root causes of conflict, instability and forced migration’, funded by the Dutch government: in DR Congo, Sudan and Ethiopia. These multi-year projects are essential to achieve substantial change in the communities. It is also an essential part of our funding portfolio now that multi-annual projects like ‘Protracted crisis’ and ‘Reconstruction’ have come to an end. In general we see a trend towards more short-term funding driven by greater attention for emergency relief instead of working towards more structural solutions. In 2016 four cross-border, multi-country projects funded by the Dutch Ministry of Foreign Affairs were finalised and evaluated. The overall objective of the Reconstruction projects - as they were referred to - was to contribute to peace and stability. The projects were implemented in 1) Burundi and DR Congo, 2) South Sudan, 3) South Sudan and Ethiopia and 4) Sudan, Uganda and Afghanistan. Priorities were to promote human security, to contribute to legitimate governments and to create peace dividends. The evaluation showed that the Reconstruction projects contributed substantially to peace and stability within communities and to a lesser extent between communities.

Cross border programming is a somewhat exceptional approach but has proved very useful as many conflicts are not limited by borders. The projects did little to restore the beneficiaries’ trust with their own authorities, showing how difficult it is to work on peace in states with failing governments. Nevertheless ZOA is encouraged by the results as a whole and will continue to work on peacebuilding in conflict affected societies.

Organisational developments In the field we see a trend towards working in consortia with other INGOs. That is partly driven by donor requirements as donors prefer to work with larger contracts. Also donors and NGOs realise that sustainable stability and economic growth requires a multi-sector approach. Working in consortia fits naturally with ZOA’s strategy to focus on excellence in a number of sectors and to work with other parties to complement the portfolio. We have built up experience in leading and participating in consortia and are learning how together a greater added value can be achieved. ZOA is developing this further in the year 2017. On the human resources side, 2016 was challenging. There were many vacancies (most of them foreseen) that needed new staffing. We are thankful that in the course

Chapter 3

of 2016 many expatriate positions could be filled, while for other vacant positions we were able to provide continuity with the help of experienced interim staff. In 2016 the CEO moved on after nine years in position. The position was filled on a temporary basis by Derk Vermeer. Given the increase in the size of ZOA and the increasing complexity of donor requirements and working in consortia etc., it was decided that it was necessary to have a two-member Executive Board. Arco van Wessel joined the board as Chief Programme Officer per 1 November 2016. Arco had been with ZOA already for three years. As of May 2017 the new CEO, Chris Lukkien, is in place.

Constituency ZOA is privileged to have more than 40,000 private donors, corporate sponsors, business ambassadors, volunteers, schools and churches who contribute generously, financially or in kind. We know that many of these also pray for our work and the well-being of our staff on a regular basis, for which we are grateful. We continue to organise fundraising campaigns that have proven to be successful, ranging from mail packs and the ZOA-magazine, use of social media, door-to-door collection to the spicy nut campaign. At the same time we are looking for new ways to connect with the current and potential constituency. We see a trend especially among younger

people that there is a desire to be more involved and a willingness to take initiative. This we cherish as the funds for marketing campaigns are of course limited. There are many inspiring examples, but just to mention one: a group of professional women committed themselves to raise funds for a multi-year project among vulnerable women in Eastern Congo. They got off to a flying start, having already raised more funds than hoped for! We thank them and many others who give their time, network and creativity. Our fundraising efforts do not only generate funding but also create awareness of the fate of the vulnerable in this world.

by significant deterioration in the internal stability in South Sudan even to the point that we had to evacuate all international staff for two months. Crisis management is one of the being-prepared-instruments we have in place, and the situation was dealt with in a professional manner in close cooperation between the central and country crisis teams.

ZOA has a well-developed management and control system in place. This is augmented by auditing regularly both on the financial and the programme sides of the work. ZOA devotes also specific attention to prevention and detection of fraud and corruption. ZOA has the practice of not Risks and risk mitigation only dealing with this promptly internally By the nature of our mission, ZOA works - zero tolerance approach - but reports in complex and insecure environments. fraud in a transparent manner to the donor. Safety and security of the staff is of utmost Suspicion or detection of fraud is to be importance. ZOA invests structurally in reported to ZOA Netherlands and can be security measures, policies and training. In done anonymously. In 2016 four cases 2016 an extensive renewed security manual of fraud were reported, with relatively and reporting system was put into place. limited amounts of resources involved. Despite all these efforts, the killing of one Procedures were reviewed, but no needs of our valued local staff in South Sudan for modifications were identified. Most was a terrible shock and once more showed cases were related to malfunctioning that the environments we work in can be of staff of ZOA or an implementing harsh and very dangerous. The loss of our partner organisation. In some cases, staff colleague was deeply saddening, first of all was discharged or had already left the for his family, as well as for us at ZOA. organisation. ZOA makes commitments to the donors for carrying out projects. At times unforeseen changes make this very difficult or impossible. This year we were confronted

the risk that ZOA is seen as a too small partner. The mitigation measure is to cooperate more and more in consortia, which we do successfully. Another risk threatening the implementation of our strategy is limited access to our target groups, which is a result of our choice to work in fragile contexts. We mitigate the risk by building good relationships and cooperation with governments, and by participating in country networks of similar international organisations, which keeps us well informed and provides appropriate platforms for claiming access. Operations Insecurity for staff and assets might force us to withdraw from a certain area. We mitigate the risk by maintaining an upto-date security policy and monitoring system. Lack of competent staff might create an operational risk. Making optimal use of local capacities and paying attention to continuous staff development helps mitigating the risk.

Other risks and mitigation measures

Finance The risk of funding shortage is mitigated by investing in donor diversification, at the same time reducing dependency on too few donors. Also our 23 percent of own funding makes us resilient for sudden funding setbacks and enables us to prefinance projects.

Strategy The tendency of institutional donors to work with larger contracts could cause

Financial reporting and compliance All country offices fall under supervision

of and monitoring by ZOA Netherlands. The financial reporting and underlying management systems in the country offices are monitored by ZOA Netherlands. Deviations can be detected at an early stage. Staff in the Netherlands has built up specific donor knowledge and supports the country offices in complying to specific donor requirements.

2017 and beyond The strategic choices made in 2015 and 2016 form a solid base for 2017 plans. Our current estimate of funding suggests that in 2017 the level of support we can provide will be of the same order of magnitude as in 2015 and 2016. However, we see opportunities and a necessity to broaden our donor base. We believe that the work of ZOA and the robustness of the organisation can be served better when we can work with larger programmes in our programme countries. We are preparing ourselves for this by continuously developing our organisation to serve the work in the field even better.

Former criminal becomes farmer - Peter from Uganda At the end of 2016 ‘Draagt Elkanders Lasten’ started a campaign for the work of ZOA in Amudat, Uganda. The life of Peter Lokonoy (33), former criminal and thief, changed dramatically after Pastor Moses visited him. His story gives a small glimpse of the difficulties people in Amudat are facing. “I was a criminal for years. I was part of a gang, living in the woods and surviving by carrying out raids. I became an outcast, even to my own parents. After the Ugandan Army disarmed me, I became an alcoholic. In that period I committed adultery with my brother’s wife. When he wanted to take revenge, my pregnant wife and I left the village and ran away.

Life was difficult and I tried to survive and feed my family by stealing cattle. One day I was arrested and I then sent to prison. Pastor Moses visited me there, and explained the gospel to me. I became a Christian in prision. That changed my life dramatically. I changed my way of life and started making money honestly. Thanks to ZOA and the Food Agricultural Organisation I got an agricultural training and my wife and I started working on the land. People started to laugh at me and called me a woman, but after seeing us doing well and making enough money to survive, they kept quiet. So, now I can give my family a bright future! I hope one day my children will be a pastor or a president.”

4 Supervisory Board Statement According to the UNHCR there were over 65 million refugees in 2016. People suffering from violent conflicts, displacement and natural disasters. We are grateful that ZOA was able to provide relief, hope and recovery to many of them. Especially to the victims of El Niño in Ethiopia and to the victims of the conflicts in Syria and Iraq. We recognise that in a changing world ZOA has to be prepared for emerging needs. We elaborated on this in our strategy document ‘Signs of Hope 20152018’, and also within partnerships. With the Dutch Relief Alliance we, together with fourteen aid organisations, were able to help over three million people. This partnership makes it possible for us to respond adequately within 72 hours. As Supervisory Board, we have the formal responsibility to approve the annual budget and to appoint and assess the members of the Executive Board. The results of the external audit process were positive and did not reveal any major weaknesses in the organisation and the risk management system. We were able to ascertain that the income was spent effectively and efficiently, according to the approved budget. In view hereof the Annual Report 2016, including the financial statements as prepared by the Executive Board, was

approved as submitted in a meeting on 6 June 2017. Once more we are impressed by the commitment of ZOA’s staff, donors and board. In 2016 Johan Mooij left ZOA after nine years as CEO. He led the organisation through major internal and external developments and we thank him most sincerely for his work and commitment. Since the organisation has more than doubled in the past years and the complexity of the world of NGOs and international relief is growing, the Supervisory Board decided to make changes in the Executive Board structure to a two headed structure with a CEO and CPO (Chief Programme Officer). We were glad to appoint Mr. Arco van Wessel as CPO on 1 November 2016. On 1 May 2017, Mr. Chris Lukkien started as CEO. We are grateful that Mr. Derk Vermeer was willing to lead ZOA in the transition period, and we sincerely thank him for his work and commitment. He was appointed at 7 June 2016 as interim CEO.

Report 2016 The Supervisory Board is responsible for the supervision of the policies and plans of ZOA and for monitoring the identity of the organisation. In the scope thereof, the Supervisory Board advises and assists the Executive Board in determining an appropriate course of action in line with ZOA’s statutory obligations. The members of the Supervisory Board contribute their expertise from various fields to the best interest of the organisation. Besides their supervisory duty, the members also have more formal responsibilities such as appointing and assessing the members of the Executive Board and approving the budget and Annual Report. Moreover, the Supervisory Board represents the constituency of ZOA and represents society in general within the organisation.

Above all we express gratitude to God, who is faithful and gives us the strength to continue the important work for those who are in need.

The CEO and the CPO (as of 1 November 2016) are the Executive Board members, and are responsible for the executive decisions and daily management. Through this separation of powers, ZOA meets the Dutch Governance Guidelines for charitable organisations as established in the Wijffels Code, which prescribes a proper relationship between ‘management’ and ‘supervision’.

Harry Paul Chair Supervisory Board

The Supervisory Board met five times in 2016 for their regulatory meetings, with

the CEO attending. Regular topics on the agenda such as the Annual Report 2015, the quarterly reports, meetings with the Works Council and the evaluation of the CEO were scheduled as usual. Specific topics that were discussed were the top structure and composition of the Executive Board, the Strategic Plan for 2015 - 2018, the positioning of the organisation in The Netherlands, the ties to the Dutch constituency, the follow-up on the results of the Employee Satisfactory Survey, and strategic partnerships with other NGOs. The Supervisory Board also evaluated the additional offices held by Mr. Mooij. These additional offices were: • board member of Prisma • board member of the Bakker - de Jong Fonds. The Supervisory Board concluded that these additional offices are compatible with his work as CEO of ZOA. CEO Mr. Johan Mooij was in function till June 2016, and was succeeded by interim CEO Mr. Derk Vermeer.

Audit and Remuneration Committee The Audit Committee discussed subjects such as the Annual Report, the audit plan, audit execution and observations, and the annual budget. The Remuneration

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Mr. H. Paul MPA • Function on the Supervisory Board: Chair, Remuneration Committee • Period of service: 2010 - 2020 (2nd period) • Professional function: Project-Deputy Secretary-General at Ministry of Finance

Committee evaluated the functioning of the CEO and, based thereon, advised on his salary at the beginning of each year.

Mr. B. Brand • Function on the Supervisory Board: Audit Committee • Period of service: 2008 - November 2016 (2nd period) • Professional function: Chair of the Executive Board of De Meerwaarde Barneveld a secondary school

The findings and recommendations of the Remuneration and Audit Committees were discussed and decided upon in the general meetings of the Supervisory Board. In determining salary and additional benefits of the members of the Executive Board, the Supervisory Board adheres to the Advisory Scheme for Remuneration of Management of Charitable Organisations (Adviesregeling Beloning Directeuren van Goede Doelen), set by the branch organisation for charities Goede Doelen Nederland, and to the Good Governance code, also known as the Wijffels Code. 1

Mr. A. Bouw RA • Function on the Supervisory Board: Audit Committee • Period of service: December 2016 - 2020 (1st period) • Professional function: chartered accountant with a financial institution Mr. J. Kamphorst • Function on the Supervisory Board: Audit Committee • Period of service: 2011 - 2017 (1st, extended period) • Professional function: Interim manager and management consultant

Members of the Supervisory Board The members of the Supervisory Board serve for a term of five years and are eligible for reappointment one time. They are selected based on criteria indicated in the general and specific profile of the Supervisory Board. Mr. B. Brand stepped down after fulfilling his two terms period. We are thankful for the contribution he made. His position was taken by Mr. A. Bouw, who also joined the Audit Committee starting December 1, 2016. The members of the Supervisory Board receive no financial compensation for their work. They can claim expenses incurred during the course of their duties as Supervisory Board members. The same rules apply to such claims as to those that apply for ZOA employees.

Mrs. J.J.A. Olij - Haak • Function on the Supervisory Board: member • Period of service: 2015 - 2020 (1st period) • Professional function: Chair of Executive Board of Timon - a youth welfare organisation Mr. B.J. van Putten LL.M • Function on the Supervisory Board: Remuneration committee • Period of service: 2011 - 2017 (1st, extended period) • Professional function: Mayor (retired) See Chapter 11, page 81 for more information

Chapter 5

5 Partnerships and Networks Working in conflict and disaster areas is complex. Cooperation is therefore crucial. As ZOA we cannot, and do not want to achieve our objectives on our own. We greatly value our donors, the implementing and strategic partners. We consider partnerships and collaboration essential elements of our work, in the field as well as in the Netherlands and worldwide. We cooperate with other NGOs wherever possible, sharing knowledge and experience on implementation and security, lobbying among policymakers, complementing each other in the implementation of programmes, raising awareness among the public, as well as soliciting for funds. We also observe that institutional donors develop preferences to work through consortia, so to work more efficiently and ultimately be able to support more beneficiaries. During 2016, highlights in cooperation were:

Dutch Relief Alliance The Dutch Relief Alliance (DRA), established in 2015, is a unique cooperation of fourteen Dutch registered NGOs. They work closely with the Dutch Ministry of Foreign Affairs to propose and implement relief programmes funded by the Dutch Relief Fund. This model

works well and proves to be effective. In 2016 ZOA was vice-chair of the DRA programme executive committee. In 2017 ZOA assumed the role of chair for one year. The following organisations are part of the Dutch Relief Alliance: CARE Nederland, Cordaid, Dorcas, ICCO / Kerk in Actie, Oxfam Novib, Plan Nederland, Save the Children, Tear, Terre des Hommes, Stichting Vluchteling, War Child, World Vision and ZOA. In the course of 2016, War Trauma Foundation also became a member of the Dutch Relief Alliance. In 2016 the DRA implemented Joint Responses in Central African Republic, Nigeria, Northern Iraq, South Sudan, Syria, Ukraine and Yemen. ZOA leads the Syria Joint Response and participates in the Joint Responses in Yemen, South Sudan and Northern Iraq. ZOA participated in the Acute Crisis Joint Responses on Ethiopia and Somalia. In 2015 the Ministry of Foreign Affairs committed â&#x201A;Ź120 million to the DRA to last until the end of 2017. The DRA had used up that budget by the end of 2016. The Ministry of Foreign Affairs approved an additional â&#x201A;Ź45 million for 2017.

Integral Alliance ZOA became a member of Integral Alliance in September 2015, a global network of Christian relief and development agencies from across the world. Membership allows partners to work closely together in humanitarian assistance and in sharing expertise and resources. During 2016 ZOA funded World Relief Germany to execute the Dutch Relief Alliance project in Somaliland, a drought response in ten villages south of Hargeisa, implemented from July to December 2016. ZOA also funded Integral partners Tearfund for postearthquake shelter and Mission East for WASH and livelihoods in Nepal.

EU-CORD Christian Organisations in Relief and Development from countries in the European Union set up this network with a desire to create opportunities for and between members. Opportunities to work together towards shared objectives; to form supportive professional relationships; to access EC funding and to influence policy. For ZOA, EUCORD creates a platform to meet with potential partners to form consortia, share knowledge and sometimes even to receive funding for Emergency

Relief Operations. An example is the collaboration between ZOA and Tearfund UK. Together they prepared an application to the European Union for emergency assistance in Nigeria.

Kenniscentrum Humanitaire Hulp In 2016, ZOA was involved in the establishment of the Knowledge Center for Humanitarian Assistance in The Hague. The center is a cooperation of ten humanitarian NGOs, five expertise institutes and the Dutch Ministry of Foreign Affairs. This Kenniscentrum Humanitaire Hulp will become operational from January 2017 for an initial period of three years. The Center will play a key role in information sharing, knowledge gathering and initiating debate.

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National networks • Partos - Association of Dutch NGOs in international development - Member • Prisma - Association of Dutch Christian NGOs in international development - Member • Goede Doelen Nederland - Branch Association of Dutch charity organisations - Member • Dutch Security Network - Knowledge platform on security of Dutch NGOs in humanitarian assistance and/or development aid - Member of the Steering Committee • AgriProFocus - An international network with Dutch roots that promotes and drives farmer entrepreneurship among farmers and their organisations. - Member • Platform Humanitarian Action Netherlands - Platform of Dutch NGOs active in emergency relief - Participant • Kenniscentrum Humanitaire Hulp - Expertise Center for Humanitarian Assistance - Co-founder

European networks • EU-CORD - Platform of European Christian NGOs in relief and development - Member • VOICE - Voluntary Organisations in Cooperation in Emergencies; the main NGO interlocutor with the EU on emergency aid and disaster risk reduction - Member • CONCORD - European NGO confederation for relief and development - Member

International networks • ECOSOC - Economic Social Council of the United Nations - Special Consultative Status • CHS Alliance - Humanitarian and development actors working on quality, accountability and people management initiatives. Merged from People in Aid, Humanitarian Accountability Partnership and SPHERE - Member • Integral Alliance - Global alliance of Christian relief and development agencies - Member • Urbanrefugees.org - Global network of academics and NGOs helping the humanitarian community to adapt to the challenges of protecting refugees in cities - Member

Memorandum of Understanding • World Renew - Canada / United States of America • Medair - Switzerland • Stromme Foundation - Norway • CASA - India

Partnerships • Dutch Relief Alliance - Cooperation of Dutch NGOs in humanitarian action. • IS-Academy on Human Security in Fragile States - Collaborative research project between Disaster Studies at Wageningen University and the NGOs Cordaid, ICCO, Netherlands Red Cross, Oxfam Novib and ZOA. • Christian Emergency Relief Cluster Cooperation between Dutch Christian aid organisations Dorcas, Tear, Red een Kind, Woord en Daad and ZOA. • Dutch Consortium for Rehabilitation - ZOA was the lead agency for this consortium of Save the Children, CARE, HealthNet TPO and ZOA, funded by the Dutch Ministry of Foreign Affairs, implementing rehabilitation programmes in six African countries from 2011 - 2015. • Consortium of Dutch NGOs - ZOA and Red een Kind cooperate through this consortium in Myanmar. • Walk for Water Steering Committee - Together with Aqua for All, AKVO, Simavi and Amref Flying Doctors, organising ‘Walk for Water’ fundraising events in Dutch primary schools.

Chapter 6

6 Organisation As explained by the Supervisory Board in Board in chapter 4, ZOA’s Executive Board structure was changed to a two headed structure. This is reflected in the organisational chart.

Organisational structure ZOA had twelve country offices during 2016. The country office in Jordan serves ZOA’s programmes in the Middle East: Iraq, Syria, Jordan, Yemen and Lebanon. The other country offices focus exclusively on the country in which they are based. The country office in the Philippines closed halfway through the year. Each country organisation has its own Country Management Team, headed by the Country Director. The teams operate largely autonomously, enabling them to accommodate local developments, however, within an agreed organisational strategy and annual planning. The International Management Team consists of all Country Directors, the directors and management team of ZOA Netherlands, and the director of the Disaster Response Team. They meet twice annually during the Interregional Meetings in March and October. ZOA Netherlands supports the country organisations with policy cohesion and continuity, quality control, exchange

of knowledge, financial management, fundraising, communication and staff recruitment. Aside from this support, ZOA Netherlands invests in innovation and programme development. It has also a control and audit role. ZOA’s integral auditing department assesses all staff-related and financial processes, programme and project design, as well as systems for the monitoring and evaluation of project progress and results, as part of ZOA’s integral auditing. Staff In 2016, ZOA Netherlands employed 74 people (approximately 58 fte), with a male-female ratio of 49/51. Worldwide there were 52 expats (trainee and junior staff included) at any given time in 2016. In total ZOA had 887 staff worldwide. Volunteers Volunteers add considerable value and are an integral part of the organisation. Voluntary commitments come in various forms: from volunteering during an event, teaching at schools to organising the doorto-door collection. They are supported and motivated through personal contact with account managers. We also have volunteers working at the office on a regular basis, and unpaid internal audits in the programme countries offered by an accountancy firm in our constituency.

ZOA’s traineeship offers young, highly educated and recent graduates from the constituency from ZOA the opportunity to gain experience in working in one of ZOA’s programme countries or at the ZOA office in Apeldoorn, The Netherlands for the period of one year. The traineeship is a voluntary position, which means it is a non-paid job. In 2016, we were able to offer four trainees a position.

Statement of accountability ZOA subscribes to the following principles: • Within the organisation, supervision (adopting or approving plans and carefully reviewing the organisation and its results) is kept separate from governance i.e. execution. • The organisation continuously strives to allocate resources optimally so to enable ZOA to operate effectively and systematically in achieving its objectives. This is set forth in our quality and control model. • The organisation aims to optimise relations with stakeholders. ZOA focuses on information provision to gather and register wishes, questions and complaints. Both in the Netherlands and in the areas where ZOA operates, the entire organisation is in constant contact with stakeholders to make ZOA’s work possible. The detailed statement of accountability

can be found in full on our website www.zoa.nl (in Dutch).

Quality standards and codes ZOA has committed itself to the following codes of conduct and standards: • Code of Conduct for the International Red Cross and Red Crescent Movement and NGOs in Disaster Relief; • Core Humanitarian Standard; • The Good Governance Code for Charities (Wijffels code); • The Goede Doelen Nederland code of conduct (formerly the VFI code of conduct). ZOA’s system is compliant with the ISO 9001 standard for quality management systems. ZOA holds the certification mark of the Central Bureau of Fundraising (CBF). Additionally, ZOA commits itself to its own internal ZOA Code of Conduct, including the ZOA Child Protection Policy. These staff codes describe standards of behaviour and promote good practice. Since 2015, ZOA also has policy and procedures on ethical relations with corporate donors, to ensure that commercial activities of corporate donors do not conflict with ZOA’s values and standards, and do not negatively impact our target group, for instance socially or environmentally.

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Organisational chart The Works Council The Works Council represents ZOA staff members with a Dutch employment contract and advocates their interests. The Works Council also regards members of the management teams in the programme countries as constituents, regardless of whether they hold Dutch or local employment contracts.

The Works Council has the right to be informed on issues concerning the organisation, as well as the right to approve or reject measures concerning staff policy. In other aspects it has an advisory role. The Works Council consists of six members. Four are employed at ZOA Netherlands, two work abroad (Sudan and Ethiopia).

Supervisory Board

Chief Executive Officer

Chief Programme Officer

Country Director

Programme Development & Support

Management Support

Institutional Relations

Disaster Response Team

Fundraising & Communications Support Programme Countries

Disaster Response Countries

Human Resources

Burundi

DR Congo

Afghanistan

Ethiopia

Middle East Region

Liberia

Sudan

Myanmar

South Sudan

Sri Lanka

Audit & Evaluation

Finance & ICT

Uganda

Chapter 7 17

7 An integrated approach ZOA works in countries known as fragile states, where the government’s institutional and technical capacities are limited. These fragile states are more vulnerable to internal and external shocks than more stable countries. The number of devastating crises worldwide is increasing, especially affecting the countries involved and their inhabitants. Fragility, as understood by ZOA, is characterised, in different degrees, by the following elements: • States lack authority due to which they cannot assure basic security, rule of law and justice; • States lack or have limited legitimacy and representation; • States are not willing or able to provide adequate basic services to its citizens, particularly to the most vulnerable; • Local civil societies have limited capacities and humanitarian space is restricted. Within the category of countries affected by fragility, ZOA specifically focuses on countries with conflict-related fragility.

Dual mandate Our mandate to the people we serve is providing both relief and (early) recovery. In the complex environments we work in, emergency relief and rehabilitation sometimes take turns or even exist next to each other.

Our overall approach is deeply entrenched in our drives and values, and characterised by a long-term commitment to the people we serve. Our local presence facilitates our work at community level. It enables us to have direct contact with those we serve and build sound knowledge of, and sensitivity to the specific context, culture and dynamics between the actors present. It also enables us to work with relatively small and weak local organisations and governments. We can strengthen the capacities at local level, while at the same time learning from their insights and experiences.

different stages of the programme. • Accountability and transparency; we show who we are, what we do and how we do it, and demonstrate that we do what we promise. • Sustainability; we strive to employ lasting interventions that do not negatively affect the communities or the planet we live on. • Do no harm; we seek to work in a conflict-sensitive manner, so to prevent unintended negative consequences to relationships and long-term development processes.

Our guiding principles

ZOA works to ensure positive change at community level by supporting women, men, girls and boys to realise dignified and resilient lives. To achieve that, we focus our attention on realising the following specific goals:

• Sustainable access to basic services and resources It is crucial for living dignified and resilient lives to have access to basic services and resources. ZOA supports communities in lasting access to water, education, health care, infrastructure, public security, a decent living environment, income, food, shelter and clothing. We are aware that we cannot contribute to ensuring all basic services and resources. However, through the five sectors we work in, and by using different implementation strategies, we experience we can make a significant contribution.

• Peaceful and stable communities To improve the situation in communities, it is crucial that underlying and root causes are tackled. Social disintegration, scarcity of and unequal access to resources, gender inequality, tribal conflicts, cultural differences, land rights issues and poverty can all lead to conflict, and deny people the chance to lead dignified and resilient lives. Through our work in

• Good community governance Good governance is essential in order to minimise corruption, ensure that the voices of all are heard in decisionmaking and to hold decision makers accountable. By following our six guiding principles, we try to reach the entire community, especially the most vulnerable, and truly respond to the needs of all its members. However, ZOA plays a supporting role in this

We are working in accordance with our strategy document ‘Signs of Hope 2015 - 2018’. Our strategy builds on lessons learned, and integrates clear choices with a flexible, innovative and open focus that allows us to adjust to changing circumstances. Guiding principles in our relief and recovery approach are: • Inclusion; within our target group, we include all people affected. • Ownership; we work side-by-side with communities to support them to develop their own strategies to increase their independence and build better futures. • Participation; we ensure the active involvement of all people affected in the

Positive change at community level

the five sectors, we address these causes and enable communities to resolve their conflicts without resorting to violence, and so build peaceful and stable communities.

Chapter 7

process. In the end, in order to realise lasting change, efforts need to be driven by the community and its members themselves, by the (local) governments and by the other actors present.

Our sectors To achieve the three goals, a range of interventions in various sectors can be applied. To be effective and efficient, we limit ourselves to five sectors, in which we have developed specific and extensive expertise. The emphasis on these sectors changes throughout a programme, due to our dual mandate of relief and (early) recovery. Food security and Livelihoods The main contribution on community level are necessary resources to enable people to provide for their needs. We focus on four main areas: generation of income, market support, agricultural production, including livestock, and conditions for rural and urban economic development. In a number of countries this is also closely related to land rights issues. Water, sanitation and hygiene Safe water and basic sanitation are essential for living healthy and dignified lives. These are often public facilities and therefore prone to social dynamics and even conflicts at community level. Additionally, the sector is highly vulnerable to external factors

such as climate change and environmental degradation. ZOA implements an integrated approach, taking the needs of the different stakeholders into account and the social, economic and ecological factors that play a role. Peacebuilding Changing the conflict dynamic is necessary for a community to be resilient and to disengage from wider conflicts. By applying a conflict transformation approach, we aim to transform attitudes, behaviour and (local) causes of conflict, instead of only mitigating or resolving conflicts. Our relief programmes will limit ambition to the ‘do no harm’-approach. Their limited period (maximum of three years) and specific character does not always permit aiming at wider peacebuilding goals. Shelter During emergencies ZOA engages in shelter support. In the longer run, there is often a need for transitional shelter: a basic form of shelter that provides protection, privacy and safety. We strive to make the design either re-usable or expandable. We also provide assistance in repairs to permanent houses. Basic education Literacy and numeracy are important preconditions for community governance and economic development, and brings people from

different backgrounds together. It also significantly contributes to our other sectors. We focus on basic education, both formal and informal, which includes primary education, lower secondary education, functional adult literacy and numeracy, and vocational training.

and numeracy, to stimulate economic development. During the current strategy period we also increase our efforts to reach forcibly displaced people in urban areas. The specific characteristics of working in such urban areas were explored in a policy paper published in 2016.

Our cross-cutting issues

In the current context of rising numbers of crises, either of natural or human-made disasters, emergency response is becoming more pressing. We expanded our disaster response capacity by setting up the Disaster Response Team (see chapter 10).

The people we serve are confronted with a variety of common issues that go beyond specific sector areas of attention. ZOA pays specific attention to two such issues: gender and disaster risk reduction. These cross-cutting issues are vital to the realisation of dignified and resilient lives and to achieving specific goals and programmatic results, and therefore need to be mainstreamed throughout the programmes.

Making the strategy ‘Signs of Hope’ reality Building on the expertise of more than forty years of working among conflictand disaster affected people, we made choices in our strategy to optimise impact and sustainable improvement. Within the choices for the sectors as set forth above, we increased emphasis on land tenure systems and land rights. In 2016, we added two land rights expert staffs to the team of ZOA Netherlands in support of country programmes with this complex but highly relevant issue, since land rights affect food security, livelihoods and social relations. In addition, we put special efforts into vocational training and adult literacy

Finally, in this strategic period we will intensify our attention for our constituency. We will do so by connecting them to the people we serve through our publications and events, and by enabling them to be more involved. We will raise awareness of the underlying causes of inequality and conflict, the position and conditions of the people we serve, and the influence of our daily behaviour on the lives of ZOA’s target group.

Raising awareness, connecting people ZOA defines awareness raising as ‘being moved by victims of conflicts and disaster, gaining understanding of the context they live in, and getting into action’. ZOA wants to go beyond providing information. The objective is to touch the hearts and minds of the people in the Netherlands and provide them with opportunities to help. We want to facilitate an ongoing

and sustainable connection between our constituency and those we serve. Around World Water Day in March, we again organized a Walk for Water for primary schools. Nearly 5,000 pupils participated and carried six litres of water on a six-kilometre walk. ZOA staff and volunteers visited all of the participating schools to give informative lessons on the importance of clean drinking water and the obstacles many refugee children worldwide face daily. At Opwekking, a large Evangelical conference held during Pentecost, ZOA used an Escape Room to raise awareness about urban refugees. The experience was fully booked, and gave the 287 participants, many of them in their twenties, a half hour experience of threats, trying to flee, deciding what to bring, and being dependent on the goodwill of ‘authorities’. Once through the Escape Room, there was time to relax and discuss the experience with ZOA staff, who related the experiences in the Escape Room to the daily struggles of refugees. In November, ZOA and Micah Netherlands together launched the guide “Doing justice to refugees”. The guide is a practical tool for youth groups, especially within churches, and offers a programme of three sessions on the subject of refugees and what the Bible says about them. A youth leader who used the booklet reported that the sessions were instrumental in bringing

the plight of refugees, experienced as ‘far from home’ for most teenagers, closer to their hearts. They started discussing how they could help, even though they do not have much money to donate. In awareness raising activities like these, ZOA fulfils the role of a broker, provides a ‘tool’ for people to come into action on causes that are important to them. Once people become aware of the situation of refugees they can be shown that there are many ways to become involved. They can show their commitment by donating, volunteering and through prayer.

Chapter 5

Women meet women - Dutch women in Congo

With nine other Dutch women Tiny de Graaf visited Congo last year, meeting the Congolese teenage mothers ZOA is helping. â&#x20AC;&#x153;Our goal was to see what we, as Dutch women, could do to help and support the teenage mothers in Congo. During our trip we met a lot of these women, hearing the most terrible stories from them. I was very impressed by the vitality of the women. Despite their sad circumstances, the insecurity in their environment, the poverty and the huge number of children they need to take care of, they try to make something of their lives. These women can make a euro out of a cent and have endless optimism and power. You see them working everywhere: at the market, in the fields and on the roads. They are so happy with the support from ZOA! ZOA helps these teenage moms with financial support and gives them psychological support, if necessary. They can even get legal support and education if they want to. Being able to read and count is necessary if you want to be a businesswoman! For us Dutch women it was very impressive to see the strength and the faith of these Congolese women. There was one connecting factor that struck all of us deeply. To see their firm trust in God and their happy, child-like faith, was heartwarming.â&#x20AC;?

Chapter 8 21

8 Fundraising and Communication A strong connection with our donors from the biggest multi-lateral institution to the smallest child saving up pocket money - is of crucial importance for our work. It is not ‘just money’ we receive, it is a mandate. Together with our donors we were able to continue our work throughout 2016, and once more to reach out again to those in need. It is of great importance that we receive funding through various channels: private donors, companies, funds and institutional donors. Due to the combination of funding channels, the organisation is able to continue its work in fragile states and to respond adequately in case new crises occur. For instance, our solid and loyal group of donors allows us to respond to slow-on-set disasters, even when it takes long before emergency funding becomes available. Institutional donors In 2016, 74 percent of ZOA’s income (excl. funding for consortia partners) comes from institutional donors; governments, international foundations and multilateral organisations, such as the UN. The main donor during 2016 was the Dutch government, which supports through grants from Ministry of Foreign Affairs and through embassies. The United Nations with its different agencies such as UNHCR, OCHA, WFP and UNICEF are an important partner as well in achieving our goals.

ZOA appreciates and fosters the relationships with institutional donors worldwide, and dedicated account managers build these relationships. In 2016, we invested especially in developing the relationship with DfID from the United Kingdom. It is unclear what the effects for ZOA will be once the United Kingdom will indeed leave the European Union. ZOA also received funds from likeminded international organisations. Relationships were maintained in direct meetings and through different networks such EU-CORD and Integral Alliance. During 2016, in our programme countries we worked in several consortia, some of them new, either as lead or as a member. At the first World Humanitarian Summit in Istanbul the role of institutional donors and NGOs was widely discussed by governments, UN, NGOs and other participants. ZOA was invited to participate in this Summit. After the WHS we published commitments, together with four other NGOs, and we encourage our constituency to keep us accountable to these commitments. The commitments amongst others (1) to sensitize our constituency on Refugee Conventions (2) to increase the financial support through local organisations (3) and to work on several initiatives such as the improved

position of women and girls during crises, more access to aid for disabled people, more emphasis for assistance in urban areas and the use of cash based assistance. For Liberia, South Sudan, DR Congo, Afghanistan and Yemen it was difficult to attract funding, either because of lack of available funds or because of tough competition. Third Parties Another funding channel is the so called ‘third parties’. These third parties are external fundraising organisations such as Deputaatschap Bijzondere Noden, EO Metterdaad and Happy Gift. Funding received from them saw a significant rise in 2016 compared to 2015. Private donors Online fundraising showed a steady increase, as did the facilitating of private and company initiatives by those who were eager to organise fundraising activities on their own. ZOA is always trying to attract new donors through campaigns such as the Christmas campaign “Stille Nacht, Veilige Nacht” (Silent night, safe night). During the December month ZOA not only called on its constituency and the Dutch public to donate, but also to send a Christmas card

to staff in ZOA’s programme countries, to encourage them in the difficult work they do, often in remote locations. Our constituency responded massively, which was heartwarming. Our annual door-to-door collection was organised in April 2016 with the help of 700 volunteers and more than 15,000 collectors. Although the mood in society was on edge due to discussions about newly arriving refugees in Europe, ZOA collected even more than in 2015, a revenue of € 858,842 was raised. In 2016, ZOA also started to raise funds for specific groups of beneficiaries, for example for young adults (Hoopvolle verhalen; Hopeful stories) and for safe play areas for young South Sudanese children in Ethiopia (Hoeveel kinderen laat jij veilig spelen?). Emergency campaigns In April we started an emergency relief campaign for the victims of drought in parts of Africa, especially Ethiopia, caused by El Niño. We campaigned together with the other members of the Christian Emergency Relief Cluster. ZOA raised enough money to build four birkas, two ponds and to help more than 80,000 people with water, food, nine water pumps and 235 donkeys to carry water.

Chapter 8

In August 2016, ZOA received news that the UN were very concerned about the people living in and around the city of Mosul, occupied by Islamic State. Large numbers of refugees were expected once the Iraq army would start an offensive to liberate the city. We started a fundraising campaign in the Netherlands, and ZOA’s team in Kurdistan was able to prepare adequately and have support ready once the offensive began in October. Also see page 39. The large influx of refugees from South Sudan and their desperate situation were reason for us to start a fundraising campaign for refugees in Rhino camp in North Uganda. We were able to support the refugees with 19 communal latrines for protection and basic hygiene. We also provided the water points in Rhino camp with clean drinking water for six weeks. We organized 196 water trucking trips, each truck delivering 10,000 litres of water. Also see page 49. Communication Two editions of the ZOA Magazine were published in 2016. With the themes ‘urban refugees’ and ‘forgotten conflicts’ ZOA was able to inform its constituency about the current situation in which it operates. The ZOA Magazine is highly appreciated by its readers. ZOA’s website has been completely renewed. An important new feature is

the possibility to donate directly to a specific project or country. Background information on ZOA’s programmes and projects is easier to find and easier to digest, due to the combination with photography, film, a timeline for chronology and several life stories. Complaints ZOA does have a formal procedure for dealing with complaints from Dutch constituents. In general we will try to respond by telephone, because we strongly believe in the power of personal contact. We also believe that people complain because they are committed to our mandate, so we take the opportunity to learn from complaints and strengthen the relationship. Explanation of a situation, swift resolution of a problem and apologies in case of mistakes can usually satisfy the concerns of the complainer. In 2016 we registered 58 complaints, the same amount as in 2015. The main cause for complaint was some startup problems with the introduction of our new system for Customer Relationship Management. In the course of the year the problems were solved and the number of complaints decreased in the 3rd and 4th quarter.

Expenses ZOA 2016

92,3% 4,3% 3,4%

Spent on objectives: 92,3% Fundraising costs: 4,3% Costs of management and administration: 3,4%

22,8% 74,0%

Income ZOA 2016 1,0% 2,2%

Project grants from institutional donors: 74,0% Income own fundraising: 22,8% Income from third party campaigns: 2,2% Other income: 1,0%

9 ZOA Worldwide

Afghanistan

Middle East

Nepal

Sudan Liberia

Myanmar

Nigeria South Sudan DR Congo

Somalia Ethiopia Uganda Burundi

Sri Lanka

Philippines

Chapter 9

ZOA Afghanistan

since 2000

Programme areas and target groups • Northern Afghanistan: Sar-e Pul and Jawzjan provinces • The Women Self Help Groups project and urban refugees project in the Kabul area • WASH projects in the Southern province of Uruzgan and Nangarhar

Jawzjan Sar-e Pul Kabul Uruzgan Pakistan Iran

Sectors

Expenditures

Food Security and Livelihoods

WASH

Shelter

Peacebuilding

2013 € 3,561,685 2014 € 3,091,929 2015 € 2,954,122 2016 € 2,866,792

Number of staff as of 31 December 2013 233 2014 174 2015 68 2016 132

Chapter 9 27

Supporting Internally displaced people (IDPs) in a harsh environment

n the course of 2016 more than a million people became displaced in Afghanistan. About half of them were fleeing the fighting in several provinces between government forces and either the Taliban or Islamic State. The other half were Afghan returnees coming from Pakistan due to the harassment by governmental agents there. Besides these two groups there are still disaster IDPs, such as the families that lost their houses to the river bank erosion of the Amu Darya, the main river in the north. ZOA is assisting the different types of displaced people, in a context where security is not getting better, and many countries are reducing their funding.

However, we see signs of hope throughout our projects. In peacebuilding we completed a project after four years in the Sar-e Pul district and in two Jawzjan districts. The WASH project in Uruzgan and Sar-e Pul helped 4,000 conflict-related internally displaced families. We also started a WASH-project to help returnee families in Nangarhar. We assisted

219 families with construction and shelter, after they lost their houses to the Amu Darya river. The Women Self Help Groups in Kabul and Shebergan are also having very positive results, empowering women socially and economically. The National Solidarity Programme, a project funded by the World Bank through the Afghan government, was completed in 2016. ZOA has been involved in this project since 2007, and has trained and coached the Community Development Councils in each of the 612 villages of Sar-e Pul province. Hundreds of schools, clinics, bridges and other infrastructural objects were built in Sar-e Pul as part of this project. It is expected that in 2017 the returnees from Pakistan will be a main target group, as well as the conflict related IDPs who will continue to need our support in the next year.

With funding from Dutch Ministry of Foreign Affairs, Office of U.S. Foreign Disaster Assistance (OFDA)/USAID, Development Alternatives Incorporated (DAI)/USAID, Afghan Ministry of Rural Rehabilitation and Development (MRRD)/World Bank, Common Humanitarian Fund (CHF)/ UNOCHA, UNICEF, JMB Fund, ZOA Netherlands.

In cooperation with Community Development Committees (CDCs), SDO, AREA, SHPOUL, DRA-partners.

Chapter 9

ZOA Burundi

since 2010

Programme areas and target groups Cibitoke DR Congo

Bujumbura

• Makamba, targeting returnees and residents, and farmer associations • Cibitoke, targeting communities affected by conflict and displacement, and specifically vulnerable women and youth, smallholder farmers and farmers associations • Rumonge, targeting communities affected by conflicts and displacement

Makamba

Sectors

Expenditures

Food Security and Livelihoods

WASH

Shelter

Peacebuilding

2013 € 1,377,750 2014 € 2,477,905 2015 € 3,052,709 2016 € 2,941,859

Number of staff as of 31 December 2013 21 2014 35 2015 32 2016 49

Chapter 9 29

Peace committees and development projects

n the aftermath of the political crisis that began in 2015, the situation in Burundi seems to be calming on the surface. However, a decline in external financial support for the country has resulted in severe budget cuts to the provision of basic services and health care. Despite the increasing vulnerability of the population, hopeful signs can be detected in the areas ZOA is working in. Youths from different political parties in Cibitoke continue to collaborate and have introduced their own small community development projects. Furthermore, the management capacities of nine farmer associations around community barns have been reinforced. They will also develop into information centers that can reach out to local farmers. A seedmultiplication center in Cibitoke became selfsustaining and serves the region with good quality seed.

education, reaching 5,500 children. In Rumonge and Makamba 30 water sources were rehabilitated to provide safe water for local communities. The registration of all land in Mabanda and Vugizo districts was completed: some 80,000 parcels of land were registered. To improve land access and reduce related conflicts, the land certification process in Makamba province was expanded to a new district, while an improved strategy was developed to assure womenâ&#x20AC;&#x2122;s traditional land rights. At the end of 2016, a project was launched to train more than 3,500 smallholder farmers in four provinces (Cibitoke, Rumonge, Makamba and Muyinga) in planning and managing the development of their households.

Seven primary schools and a health center in Cibitoke have profited from water and sanitation provisions, including hygiene

With funding from Dutch Ministry of Foreign Affairs, Royal Netherlands Embassy Burundi, USAID, World Food Programme, International Fertilizer Development Center (IFDC), NWO-WOTRO Science for Global Development, Stichting Happy Gift, ZOA Netherlands, ZOA Business Ambassadors, Stichting Pharus.

In cooperation with MIPAREC, RĂŠseau Burundi 2000+.

Chapter 9

ZOA

Democratic Republic of

Congo

since 2008

Programme areas • North- and South-Kivu Provinces in Eastern DR Congo

North Kivu South Kivu Kinshasa

Target groups • All victims of the violence in Congolese society women, men, girls and boys, specifically IDPs and refugees

Angola

Sectors

Food Security and Livelihoods

Peacebuilding

Expenditures

Basic education

2013 € 2,987,476 2014 € 2,890,723 2015 € 3,731,241 2016 € 1,914,866

Number of staff as of 31 December 2013 62 2014 54 2015 60 2016 18

Chapter 9 31

Security and Stabilisation Support

he security situation in the country has deteriorated over the past year. Armed groups activism is ongoing in North Kivu linked to growing inter-community conflicts around land. The postponement of the 2016 national elections has led to further political instability and a weakening economic situation. ZOA DR Congo finalized two major projects: ‘Protracted Crisis’ and ‘Reconstruction’. External consultants were positive in their evaluations of both projects. Agricultural production has increased and non-agricultural income sources been diversified, although income from these sources was limited. 81 percent of the community conflicts was resolved by the peace committees. However, many conflicts are between communities and can only be dealt with on a regional or even provincial level where the influence of the project is limited. In October a group of nine Dutch women visited the Tuna Weza project (“We can”). It supports sexually violated women through psycho-social support, literacy classes, and income generating activities by setting up solidarity groups that also help them save

money together. See page 20 for the story of one of the Dutch visitors. In preparing for 2017, we joined two consortia, a new learning experience for ZOA DRC. We also reflected on our programme orientation. We aligned ourselves with the ‘International Security and Stabilization Support Strategy’, the joint strategy for Eastern Congo, aimed at bringing UN agencies, donors, MONUSCO and (I)NGOs together around a joint agenda. Within this overall strategy, our focus is on democratic dialogue (peace building) with an emphasis on land conflicts - the major cause for violence -, combined with a focus on food security, all from a strong gender perspective. We made important changes in our organisational approach, shifting away from direct implementation. Our focus and added value will lie more in the role of support, training and coaching of Congolese organisations, taking up implementation and providing technical assistance where needed. Due to current needs we will also increase our efforts in emergency relief.

With funding from Dutch Ministry of Foreign Affairs, ZOA Business Ambassadors, Turing Foundation, HE Space Children’s Foundation, ZOA Netherlands , and a group of nine Dutch female entrepreneurs and their networks for the Tuna Weza project.

In cooperation with South Kivu. Fizi: DIE (Division de l’éducation); DEO, l’inspection de l’enseignement primaire; Uvira : ADED, IJED SANGE, 8eme CEPAC-BDR, ASCODER and CCI; Bukavu: APC, AFEM. In North Kivu. Lubero Beni: CEAPRONUT, CADIMR, APADER, EPVI, COOCENKI.

Chapter 9

ZOA Ethiopia

since 1993

Programme areas • Dollo Ado, Gambella, Hudet / Moyale, Jijiga, Shire

Shire

Target groups Addis Ababa

• Refugees, IDPs and Ethiopian population in need, with a focus on youth at risk of migration

Jijiga

Gambella Hudet

Dollo Ado Somalia

Kenya

Sectors

Expenditures

Food Security and Livelihoods

WASH

Peacebuilding

Basic education

And also in nutrition, psychosocial support, energy/environment

2013 € 2,318,448 2014 € 2,855,403 2015 € 4,322,674 2016 € 5,324,549

Number of staff as of 31 December 2013 92 2014 103 2015 133 2016 155

Chapter 9 33

Increasing numbers of refugees and persistent drought

thiopia is the second largest refugeehosting nation in Africa, after Uganda, and the fifth largest in the world in 2016. The country hosts many refugees from Somalia, Eritrea and South Sudan. Many refugees also pass through the country on their way to seek a better life elsewhere. At the end of 2016, Ethiopia was hosting almost 800.000 refugees in 25 camps as well as in the cities. Ethiopia has been facing ethnical unrest despite substantial economic growth in recent years. El Niño hit the country hard, while the people are extremely vulnerable to such external shocks, resulting in a daily struggle for many Ethiopians to find food. ZOA Ethiopia supports IDPs, refugees and host communities, often in remote locations where there is very limited assistance to the affected population. ZOA delivers support where needed and tailors the approach and assistance to the needs of the population. To that end ZOA has developed expertise in livelihoods, nutrition, energy, education, WASH and psycho-social support. The impact

of El Niño has continued to affect millions of people in Ethiopia, not only by drought but also by floods. ZOA worked closely together with the local government and other (I)NGOs to combat this natural disaster. One of the initiatives was to collaborate in the Joint Response of the Dutch Relief Alliance. We have been able to provide food security and water to the areas that were greatly affected. With Reconstruction funding from the Dutch Ministry of Foreign Affairs we have supported South Sudanese refugees and host communities in Gambella, working towards social cohesion. In Shire we have finalised a project providing Eritrean refugees with vocational training, aiming to improve livelihoods and increase future perspectives of refugees and host communities. We received further funding from the Dutch Ministry of Foreign Affairs to continue the creation of economic perspectives for Eritrean and Ethiopian youth.

With funding from Dutch Ministry of Foreign Affairs, USAID, Royal Netherlands Embassy Ethiopia, TEAR / Australian Department of Foreign Affairs and Trade DFAT, FAO, UNOCHA/Humanitarian Response Fund, Läkarmissionen, EO Metterdaad, ZOA Business Ambassadors, ZOA Netherlands.

In cooperation with IDURUS, EECMY, DICAC, ICCO and DRA-partners.

Chapter 9

ZOA Liberia

since 2003

Programme areas and target groups

Sierra Leone

Western Liberia

Ivory Coast

• Western Liberia - Bomi, Bong, Grand Cape Mount, Gbarpolu, Margibi and Montserrado Counties, targeting urban and rural communities recovering from the civil war and the Ebola epidemic

Monrovia

Sectors

Food Security and Livelihoods

Expenditures

WASH

2013 € 1,179,310 2014 € 1,396,391 2015 € 3,304,363 2016 € 1,254,180

Number of staff as of 31 December Peacebuilding

2013 23 2014 29 2015 41 2016 35

Chapter 9 35

Improvement for vulnerable families

or ZOA Liberia, 2016 was a year in which we were able to see communities reap the benefits of our programmes in Food Security and Livelihoods and in WASH. We saw the lives of vulnerable families improve and we witnessed dozens of remote schools and communities receive the gift of fresh clean water. We joined the celebrations of students completing vocational training courses such as masonry and tailoring. In our Cassava Value Chain project, ZOA has helped farmers to significantly increase their incomes by growing and selling processed cassava. These farmers, most of whom are women, have been able to keep their profits in Village Savings and Loans Associations and thereby make improvements to their lives. Small agro-enterprises have been supported to buy from these farmers, process the raw material and sell a range of products, among others through supermarkets of the capital Monrovia.

We are keenly aware that Liberia continues to have amongst the worst rates of poverty in the world. With employment at less than 15 percent, most Liberians continue to live a precarious day-to-day existence. We hope and pray that the fragile peace will be maintained throughout the year ahead in which a new president will be elected. ZOA Liberia is widely recognised as having specialist expertise in the cassava value chain, WASH and sociotherapy. In 2017 we will build on this work; finding new markets for more farmers, providing clean water in more remote villages, and accompanying fragile communities to build trust and a lasting peace, including in urban slums that were devastated by Ebola.

With funding from EU, Ecowas, UNICEF, LĂ¤karmissionen, Turing Foundation, Hofstee Stichting, ZOA Business Ambassadors, ZOA Netherlands.

In cooperation with PRACTICA, Woord en Daad, ADRA, SHIFSD.

Chapter 9

Middle Eastern Region since 2012

Lebanon

Programme areas and target groups

Syria Iraq

Jordan

Saudi Arabia

Yemen

Sectors

• We have a regional office in Amman with country offices in Jordan, Iraq and Yemen • Yemen (Hajja and Sana’a governorates), targeting conflict-affected IDPs and host populations • Syria, Jordan and Lebanon, targeting conflict affected populations, IDPs, refugees, returnees and host populations. In Syria: Aleppo, Hama, Lattakia and Damascus governorates; in Jordan: Irbid and Zarqa governorates; in Lebanon: Aley and Bekaa • Kurdistan Region of Iraq: Sulaymaniah, Erbil, Ninewah and Mosul, targeting displaced people, Syrian refugees and host communities

Expenditures

Food Security and Livelihoods

WASH

Shelter

Education

2013 € 771,480 2014 € 1,287,327 2015 € 3,548,235 2016 € 3,954,759

Number of staff as of 31 December 2013 4 2014 8 2015 20 2016 26

Chapter 9 37

Yemen Yemen has turned into the number one humanitarian crisis in absolute numbers, with 18.8 million people (69% of the population) in need of assistance. The political instability and related disasters that the country has been facing over the last years have also caused millions of casualties, the loss of livelihoods, and of economic and social infrastructure throughout the entire country. Large scale population displacement is continuing at an alarming pace. Over three million people have fled their homes since the onset of the conflict, most of whom remain inside

Yemen. During 2016 the severity of needs has intensified across the sectors with no signs of improvement. At least 14.1 million people are severely food-insecure; more than a million children are suffering from severe malnutrition; some 14.5 million people lack access to safe water sources; and 14.8 million people lack adequate access to basic health care. In 2016 ZOA worked in Sanaâ&#x20AC;&#x2122;a and Hajjah governorates to support women, men and children in the IDP and host communities.

With funding from KR-I: Dutch Ministry of Foreign Affairs, UNOCHA, Woord en Daad, EO Metterdaad, Deputaatschap Bijzondere Noden; DOB Emergency, stichting Pharus; ZOA Netherlands. Yemen: Stichting Mitswah, Aqua for All, RV Fund, Dutch Ministry of Foreign Affairs. Jordan, Syria and Lebanon: Dutch Ministry of Foreign Affairs, DOB Emergency, Stichting De Pagter Fonds, stichting Mitswah, Stichting Alfa Omega, Koppert Biological Systems, stichting Wageningen-Irbid, Bijzondere Noden Gereformeerde Gemeenten, ZOA Netherlands.

In cooperation with Syria: Lebanese Society for Educational and Social Development (MERATH/LSESD), the Fellowship of the Middle Eastern Evangelical Churches (FMEEC), International Orthodox Christian Charities (IOCC) with the Department of Ecumenical Relations and Development (DERD), DRA-partners. Jordan: The Arab Center for Consulting and Training Services (ACCTS), Zarqa Life Center, Hadaffa. Lebanon: MERATH/LSESD, Tabitha/Dorcas. Kurdistan Region of Iraq: STEP, JORD, IID, CAPNI. Yemen: Enmaa Social Foundation for Development, the National Foundation for Development and Humanitarian Response (NFDHR).

Chapter 9

We provided winterization and hygiene kits, access to safe water, public latrines at schools. For 2017 ZOA has been able to substantially increase its budget for Yemen and we will continue to provide lifesaving support through improving access to food, water, hygiene promotion, the distributions of items to survive the winter, cash-for-work, cash distributions, food-for-training and farmer support.

Syria Response Programme With more than 13.5 million people having severe needs, the Syria crisis is currently among the worldâ&#x20AC;&#x2122;s greatest humanitarian crises. Since the beginning of the crisis in 2011, over 4.9 million Syrians have already fled the country to seek safety elsewhere. From our office in Amman we reach out to Syrian refugees in Syriaâ&#x20AC;&#x2122;s neighbouring countries, as well as to displaced Syrians and other conflictaffected people within the country. ZOA is the lead in the Syria Joint Response, funded by the Dutch Ministry of Foreign Affairs. In 2016 we implemented the second phase, together with thirteen DRA-partners, for an amount of 12 million Euros.

Syria Almost five million people reside in remote areas, while 6.3 million people are displaced within the country. ZOA supports the internally displaced as they are in need of protection, food, health care and safe drinking water. In 2016 we supported IDPs and other conflict affected people in Aleppo, Damascus,

Hama and Lattakia with food and non-food items , protection through child friendly spaces, water, and agriculture support to rebuild livelihoods. In 2017 ZOA will continue it work to support the Syrians.

Jordan Refugees from Syria began to arrive in Jordan in 2011. Currently, the Syrian refugees in Jordan continue to face immense challenges, leading to great needs, vulnerability and protection concerns. Sadly, in their struggle for survival, refugees are adopting coping mechanisms that might harm them, including reducing food consumption, withdrawing children from school or taking on informal or dangerous employment. Over 85% of the refugees do not stay in camps but live in or near urban areas in sub-standard shelters with limited basic amenities and services. In 2016 ZOA supported both Syrian refugees and vulnerable Jordanians with cash assistance, non-food items and blankets, heaters and fuel to survive the harsh winter conditions. In 2017 we will continue to provide psychosocial support through community centers in urban areas with high numbers of refugees. We intend to explore possibilities to partner with private sector parties to improve the economic well-being of both refugees and Jordanians through skills development and income generating activities that will allow them to acquire and access the capabilities, knowledge, goods and assets necessary for survival.

Lebanon Lebanon is gravely affected by the Syrian war and ranks first in the world in terms of number of refugees per capita, with at least 1 million

Chapter 9 39

refugees on a total population of around 5 million. The impact of the crisis is felt across the country under Lebanon’s fragile, and now overburdened, social and economic infrastructure. ZOA’s capacity in Lebanon is limited but in 2016 we were able to provide food and non-food items to Syrian refugees. We also supported a six-week summer camp for host and refugee children, to increase mutual understanding and build peaceful relationships. For 2017 we have not been able to secure funding for new projects in Lebanon.

Kurdistan Region of Iraq In 2016 ZOA-KRI continued its work with Iraqi IDPs, Syrian refugees and host communities. ZOA’s programme with local partner organisation CAPNI in Al Qosh / Ninewa governorate improved food security and livelihoods via cash grants, cash-foragricultural work, and agricultural support including fertilisers for farming communities. Initially funded by Woord en Daad and EO Metterdaad, the project was so successful that the activities were extended into mid-2016 with new funding from the Dutch Ministry of Foreign Affairs. In the Erbil and Suleimaniya governorate we implemented programmes to address the protection and educational needs of the children. In Suleimaniya this concerns child-friendly spaces and the provision of educational and therapeutic activities for children, implemented by our local partner

organisation STEP. In Erbil governorate, we worked with local partner JORD and established an emergency education center for primary school-aged refugee and IDP children. Children had been out of formal education for an average of 2.8 years, and now 157 pupils attend classes in two shifts during the day. Parent-teacher association meetings have been established to involve key decision makers, and the school has the support of the local community and security leaders. During much of the second half of 2016 ZOA-KRI prepared for the consequences of the expected battle of Mosul, in which Iraqi Security Forces and the Kurdish Peshmerga’s aimed to retake control of the city from Islamic State. With a grant from UNOCHA, ZOA pre-positioned emergency supplies for shelter, food and non-food household items ready for distribution to those IDPs most vulnerable and in need. It was expected the battle would force the displacement of 1.5 million Mosul residents, but in the last months of 2016 just over 150,000 Mosul residents became displaced. We were well-prepared to support them in their needs. In 2017, ZOA-KRI will continue with emergency distributions to meet the needs of those displaced by the Mosul conflict, as well as continue to support Syrian refugees and Iraqi IDPs with early recovery activities.

Chapter 9

CDN-ZOA Myanmar since 2008

Programme areas India

• Southeast Myanmar • Rakhine State

Naypyidaw Rakhine

Southeast Myanmar

Sectors

Food Security and Livelihoods

Target groups • Conflict-affected internally displaced • Host communities • Conflict-affected returnees

Expenditures WASH

2013 € 920,564 2014 € 580,342 2015 € 1,672,893 2016 € 1,153,129

Number of staff as of 31 December 2013 2 2014 3 2015 50 2016 66

Chapter 9 41

Building infrastructure in Myanmar

yanmar has known one of the worldâ&#x20AC;&#x2122;s longest civil wars. In 2016, ZOA was able to support 1,600 conflict-affected families (some 7,000 people) in southeast Myanmar to rebuild their communities and livelihoods. Village elders and local organisations have been trained to plan and implement community development activities. Through them support will reach an even larger group of beneficiaries. In 2017, ZOA will extend the number of direct beneficiaries in southeast Myanmar with approx. 25,000 people, due to a large grant awarded by LIFT, a multi-donor trust fund.

were supported with agricultural inputs, because most of their fields and stock were destroyed. In Northern Rakhine State, ZOA organised a Cash-for-Work programme by which ponds were repaired to provide clean water for villages affected by flooding. Besides income for 261 labourers during the lean season, 6,263 conflict-affected villagers now have increased access to irrigation water for crop production.

In Rakhine State ZOA supported over 41,518 conflict-affected IDPs with food and cash for work on community infrastructure. Furthermore, 6,574 conflict-affected people living in camps and resettlement villages were supported with clean water provision, sanitation infrastructure and hygiene education. In addition, as a response to cyclone Komen, 1,442 flood-affected families

With funding from USAID/OFDA, WFP, Livelihoods and Food Security Trust Fund, Embassy of the Kingdom of the Netherlands in Myanmar, Medair, Cordaid, World Renew, ZOA Business Ambassadors, ZOA Netherlands.

In cooperation with World Concern Myanmar, Cordaid, SNV, The national Karen Baptist Convention and three state level associations: Taungoo Bwe Mo Bwa Karen Baptist Association, Taungoo Paku Karen Baptist Association and Taungoo Keh Koh Keh Ba Karen Baptist Association, Karuna Myanmar Social Services.

Chapter 9

ZOA South Sudan

since 1998

Programme areas

Greater Upper Nile region

• Greater Upper Nile Region (Bor South, Fangak, Pibor, Gumuruk, Verthet, Lekwangole and Akobo Counties) • Greater Equatoria region (Terekeka, Torit, Lainya counties)

Target groups • IDPs, returnees and host communities

Greater Equatoria region Juba DR Congo

Sectors

Food Security and Livelihoods

Peacebuilding

Expenditures

WASH

2013 € 2,672,015 2014 € 2,758,910 2015 € 4,291,192 2016 € 3,268,801

Number of staff as of 31 December 2013 74 2014 55 2015 71 2016 58

Chapter 9 43

A blended approach: relief and reconstruction

he South Sudan humanitarian crisis is deepening and spreading. It has caused pain and suffering for millions of people across the country in 2016. Livelihoods were destroyed and people uprooted. The eruption of conflict in July 2016 in the capital Juba spread to other areas and by mid-December 2016 more than three million South Sudanese people were uprooted, which is around 25 percent of the entire population. The recovery and development oriented projects in Equatoria had to be suspended or terminated and ZOA had to shift again to relief type of projects. It is ZOA’s aim to be faithful and not abandon its target population we have worked with for eighteen years. However, it is extremely complicated to reach the people since they have frequently moved and are scattered over many locations. Given the current context it is ZOA’s aim is to use a blended approach: to expand the disaster response activities in South Sudan,

while at the same time continuing working on recovery projects as far as the context allows. During the year several looting incidents and evacuations of field offices hampered continuation of the work. But even in this context ZOA was able to close two major projects successfully with positive evaluations (see also page 86). We were also delighted with the approval and successful inception phase of the EU-funded project in Bor, Pibor and Akobo. In principle ZOA will start projects only in areas with which it is familiar in order to make full use of ZOA’s local knowledge and network in a complex context. At the end of the year, ZOA South Sudan was starting up in Leer (Unity State), and working in Fangak, Akobo, Pibor and Bor, all in the in the Greater Upper Nile area. In the Greater Equatoria area ZOA is starting up disaster response in Lainya, which may be followed by Torit. ZOA still has a base there, and former staff ready to resume working for ZOA.

With funding from Dutch Ministry of Foreign Affairs, TEAR Australia, EU, UNICEF, UNDP, ZOA Business Ambassadors, ZOA Netherlands.

In cooperation with Nile Hope (Akobo), SALT (Pibor), African Development Aid (Fangak), Compass and TAYA (Terekeka), Across (Maruo county for emergency response) and DRA-partners.

Chapter 9

ZOA Sri Lanka

since 1995

Programme areas India

Northern Sri Lanka Eastern Sri Lanka Colombo

Sectors

Food Security and Livelihoods

Basic education

Peacebuilding

• Northern Sri Lanka: Mannar, Vavuniya, Kilinochchi and Mullaitivu • Eastern Sri Lanka: Batticaloa, Ampara and Pollannaruwa

Target groups • Returnees, both returned IDPs and returned refugees. Especially female headed households, farmers, fishermen, livestock farmers and vulnerable families due to disability, domestic and gender based violence or mental health issues. • State-led community based organisations (CBOs). Especially: Farmer Organisations, Fishermen Co-oporative Societies, Livestock Development Societies, Women Rural Development Societies, and other Civil Society Organisations such as Community Centers, Producer Groups, Women in Good Governance.

Expenditures 2013 € 5,008,940 2014 € 3,790,984 2015 € 2,265,216 2016 € 1,106,427

Number of staff as of 31 December 2013 177 2014 127 2015 105 2016 53

Chapter 9 45

Empowering Sri Lankans to play a constructive role in their community

here have been many positive changes in Sri Lanka since the war was ended in 2009. However, beneath the surface conflict and polarisation between communities continue to exist and there is much to be done to achieve peace and stability for all communities. ZOA focuses increasingly on ensuring that peacebuilding activities are at the foundation of all programmes. Pursuing this vision, ZOA has increased and will continue its work among the border villages that lie on the fault lines between Sinhala, Tamil and Muslim communities, throughout 2017. Agricultural and dairy farmers and fishermen have achieved increased productivity and income as a result of ZOAâ&#x20AC;&#x2122;s interventions. These were aimed at building capacity, improving productivity by facilitating access to markets at the upper levels of the value chain, assisting in debt relief by refinancing with state institutions and negating the role of the middle-man, and creating producer groups to ensure sustainability. Nearly 41 women are now ready and eager to

participate in the upcoming local elections. That is a result of ZOA intensifying its work with and for women during 2016. Many more SHGs were formed and we facilitated capacity building, advocacy and empowerment activities. This has encouraged them to take up decision making roles within their communities and to participate in politics. In 2017, ZOA will remain focused on supporting communities in rural locations with special attention for women, improving their capacities for equable treatment, and to prepare and equip to be equal partners in socio-economic rural development. ZOA will continuously work with fishermen and farmers to improve their productivity and become a competitive producer in commercial markets. ZOA will work with all these target groups by helping them to contribute to sustainable peace in Sri Lanka. ZOA continues to provide assistance to refugees from Pakistan and Afghanistan who are awaiting relocation.

With funding from European Union, UNHCR Sri Lanka, USAID, AusAID, Japanese Embassy in Sri Lanka, Catholic Relief Service (CRS), ICCO/Kerk in Actie, ZOA Netherlands, ZOA Business Ambassadors, MM Foundation.

In cooperation with FOSDOO, YGRO, SOND, Shanthiham(AHC), Viluthu, Sirakugal, OPEnE, OISD, Womenâ&#x20AC;&#x2122;s Bank, Sri Lankan Ministry of Agriculture and Ministry of Livestock, Farmer Organisations.

Chapter 9

ZOA Sudan

since 2004

Programme areas and target groups • North, East and South Darfur, targeting conflict- and climate change affected IPDs and host communities • Gedaref State, targeting small-holder farmers and farmer associations

Chad

Darfur

Karthoum Gederaf

South Sudan

Sectors

Expenditures

Food Security and Livelihoods

WASH

Peacebuilding

Basic education

Shelter

2013 € 2,848,188 2014 € 2,968,305 2015 € 4,878,991 2016 € 7,923,735

Number of staff as of 31 December 2013 93 2014 96 2015 106 2016 115

Chapter 9 47

Relief and resilience

udan was hit by the El NiĂąo phenomenon, which led to a severe drought. That had a devastating effect on the harvests, particularly in the Darfur region. ZOA, assisted by a number of local partners, responded through a drought-relief project, funded by ECHO. Project activities included the distribution of seeds to farmers for the next harvest as well as fodder for livestock. The fodder gave the animals (mainly goats and sheep) enough nutrition to enable them to give milk. That milk was vital for the small children. In addition, unconditional cash was distributed to the most vulnerable households to enable them to buy food, and a number of water points were also restored. This project truly contributed to saving many lives. Meanwhile, work on resilience and adaptation to climate change continued by preparing communities for the future. Our peacebuilding work of bringing together different communities and tribes and finding common ground for cooperation led to reduced conflict and more peaceful cohabitation in South

Darfur. Work on education by building new classrooms, latrine facilities and training teachers resulted in more children being able to attend classes. In the East, ZOA is leading a large consortium of five international organisations on Integrated Water Resource Management which addresses the availability of water for people, agriculture and animals for the longer term. This programme led to improved harvests. The operational context in Sudan is challenging, with great geographical distances and a complex working environment. We look forward to continuing to serve the people of Sudan in 2017 in food security, economic development, water availability and social cohesion.

With funding from DFID, ECHO, UNDP, UNICEF, Dutch Ministry of Foreign Affairs, ZOA Netherlands, European Commission, UNOPS, stichting Majoh.

In cooperation with Plan International, Practical Action, International Aid Service Sweden, Islamic Relief Worldwide, UMCOR, Almassar, SOS Sahel Sudan, World Relief, Voluntary Network, ZENAB for Women Development.

Chapter 9

ZOA Uganda

since 2007

Programme areas DR Congo

West Nile

• Karamoja: Amudat • Acholi: Nwoya, Pader, Agago • West Nile: Arua, Koboko, Moyo, Zombo, Nebbi

Acholi Karamoja Kampala

Kenya

Target groups • Returnees/former IDPs in Acholi and Amudat • South Sudanese refugees and host communities in West Nile

Sectors

Food Security and Livelihoods

WASH

Expenditures

Basic education

2013 € 2,643,982 2014 € 2,606,211 2015 € 2,538,918 2016 € 3,073,532

Number of staff as of 31 December 2013 137 2014 95 2015 105 2016 105

Chapter 9 49

Responding to dire needs in West Nile

or ZOA Uganda, 2016 was an ambitious year, with a diverse and innovative programme. We strengthened our relief operation in West Nile in response to the ongoing refugee crisis caused by devastating violence and hunger in South Sudan. We combined emergency interventions with longer-term recovery interventions. In the Rhino camp area, ZOA provided WASH support through water trucking, the construction of communal latrines and bath shelters and the installation of rainwater harvesting tanks. We also provided basic education support to both refugees and host communities, through permanent teacher housing, school feeding, school libraries, the provision of 300 go-to-school packages to extremely vulnerable pupils and 750 solar lights to school children and teachers. Ugandan farmers suffer from the effects of El NiĂąo, with prolonged drought and erratic rainfall, particularly in Amudat. We continued to serve former IDP communities in West Nile, Amudat and Acholi areas by supporting basic

education, food security and agri-business, WASH and land security interventions. We also implemented the Dutch Embassy funded AgriSkills4You. 3,134 Farmers improved market-oriented production, and 1,516 youths are trained in agriculture. Sixty-nine farmers are providing on-farm apprenticeships and market links to school drop outs. Farmers have already increased their on-farm sales on average by 275 percent. In 2017, we plan to expand our relief and recovery effort in West Nile, targeting the refugee settlements, as well as supporting the rural economy in the wider sub-region. We will also extend our work on land security in Acholi and West Nile, using the experiences from our pilot project in Nwoya. Furthermore, we will continue to work with farmers, going beyond production towards more commercial production. Last but not least we will work in education in Nwoya and Amudat, strongly supported and encouraged by the fundraising campaign organised by stichting Draagt Elkanders Lasten in 2016.

With funding from European Union Development Fund, European Union Emergency Trust Fund, FAO, Diakonia, Dutch Ministry of Foreign Affairs, Geneva Global, Applied Research Fund (ARF)(NWO), Stichting Pharus, De Koornzaayer Foundation, EO Metterdaad, ZOA Netherlands, ZOA Business Ambassadors, Stichting Diorapthe, Driestar, DOB Emergency, stichting Wees een Kans, Syncraft BV.

In cooperation with Danish Refugee Council, Save the Children, Light for the World, Alterra, CEFORD, CCF, AIDI, Acholi Religious Leaders Peace Initiative, Ministry of Lands, Housing and Urban Development, and Makarere University.

Chapter 10

10 Disaster Response The mission of the Disaster Response Team (DRT), based at ZOA Netherlands, is to respond to humanitarian emergencies and to support country programmes in writing emergency project proposals and executing the proposals. Geoff Andrews was appointed as Director of the DRT starting in April 2016. The DRT comprises three disaster responses officers and one finance manager. The DRT supported ZOA Ethiopia in writing and implementing two subsequent proposals for a six-month Joint Response by the Dutch Relief Alliance. In ZOA Sudan, the DRT supported the country team in implementing an ECHO funded

drought response project in Darfur and supported the MGA and CD in financial management and preparation for an audit. ZOA was vice chair of the Dutch Relief Alliance in 2016. This responsibility was internally transferred from the Institutional Relations team to the Disaster Response Team in September.

Philippines Nepal The DRT closed the emergency response project in the Philippines, which started after the devastating typhoon Hayan in November 2013 and focused on shelter, agriculture and livelihoods. An external evaluation was commissioned for ZOA Philippines which confirmed the positive impact of our programme. The office was closed at the end of September. ZOA signed a two-year contract of â&#x201A;Ź106,000 with a local partner to continue support for the farmer groups that have been established under the guidance of ZOA.

In Nepal, ZOA completed most of its earthquake response activities. The Government delayed publishing national building standards for earthquake resistant homes, so we supported the earthquake affected communities among other by providing winterization items and WASH activities and â&#x20AC;&#x201C; in cooperation with Tearfund UK - the training of 180 masons in the principles of earthquake resistant house construction. We also supported a local NGO, UMN, to implement a project to revitalise agricultural livelihoods for earthquake affected households in Dhading.

Chapter 10 51 51

Somaliland Nigeria In June, the Dutch Relief Alliance issued a call for proposals for an emergency drought response in Somaliland to which ZOA responded. Funds were secured to finance World Relief Germany in Somaliland for six months in a food security and WASH project.

In April, the DRT conducted a desk study on the Boko Haram affected area of Nigeria. This was followed by an assessment visit in September and a recommendation to register ZOA Nigeria and start operations using funds from the emergency reserve. Funding for a small emergency sanitation project was received from EO Metterdaad. In November, the DRT registered ZOA Nigeria and conducted a detailed needs assessment for an ECHO food security / cash transfer proposal. The proposal was accepted by ECHO. Implementation started in February 2017. 2017 For 2017, funds have been received for a follow up project in Somaliland. Food security projects using unconditional cash transfers will be implemented in Nigeria and further funding opportunities for this programme will be sought.

Chapter 11 53

11 Financial report These are the financial accounts of Stichting ZOA, Sleutelbloemstraat 45, Apeldoorn.

11.1 MAIN TRENDS After 2015, a year in which fundraising income and the organisation surplus were at an unexpected and unusually high level, the financial situation in 2016 was back at the level of 2013/2014. ZOA is very thankful for the large amount of financial resources entrusted to us. Our donors and loyal constituency have enabled us to make a difference in the lives of our beneficiaries in 2016. We insist on responsible spending of funds through quality project proposals and on contracting projects for which income has been secured. There is, therefore, an unavoidable delay between the date income is received and the date of actual expenditure. Consequently, income received is never equal to expenditure in our projects. For 2016, expenditure stood at € 1.7 million higher than income. That was mainly financed from programme funds and allocated reserves built up in 2015. It is our privilege to present the financial accounts of 2016. They reflect the continuous trust of our financial donors and constituency, as well as our capacity to bring hope in the countries and remote areas in which we work.

Key figures and summary Fluctuations both in income and expenditure are inevitable in ZOA’s work, given the fact that we work in unstable countries with high security risks and insecure funding. Income from own fundraising is within a range of 20%25% of the total income over a longer period of years. The total percentage spent on objectives moves within the high percentage range of 91% to 93% at 92.3%. The percentage of costs spent for own fundraising showed a considerable relative decrease in 2015 to 13.5% because of the very high income. In 2016 that percentage rose to a more regular level of 15.4%, although that is still lower than the set maximum of 16%. The costs for management and administration showed a small relative increase to 3.4% in 2016. Emergency relief campaigns Emergency relief is an important part of ZOA’s work. Income for disaster relief from private fundraising was extremely high in 2015 due to major campaigns for refugees in Syria and earthquake victims in Nepal. Though compared with 2015, emergency funding from private income was lower, our constituency continued to donate

generously - in 2016 for relief campaigns for the Mosul area and for the victims of drought in Ethiopia. Working with consortia partners ZOA often cooperates with other organisations. Working in consortia constructions has increased in recent years. ZOA has a leading role in some of these consortia. In those cases the financial means are received by ZOA and further distributed to our partner organisations. That explains the income and expenditure for/to consortia partners. Result of 2016 At ZOA the annual budget is the starting point for financial steering of the organisation. However, the nature of our work makes it difficult to predict the income from private fundraising and institutional donors since income depends on the actual natural disasters that arise within the year and on the willingness and possibilities of institutional partners to commit for these emergencies and rehabilitation projects during any year. The actual income in 2016 (excl. consortia partners), budgeted at € 39.1 million, showed a realisation of € 40.6 million. The

year 2016 ended with a deficit of expenses over income of € 1.7 million against a budgeted shortfall of € 1.5 million. This deficit should not be considered a loss. As mentioned, these financial accounts show that of all monies received in 2016, an additional € 1.4 million from programme funds was spent on projects in 2016. After considering the withdrawal from reserves and funds a mere € 0.03 million surplus could be added to the general reserves. Of monies received, 104% was spent in 2016 Compared to the income of € 40.6 million, excluding the income for consortia partners, € 42.3 million or 104% was spent in 2016. The remaining € 1.7 million can be broken down as follows: • Withdrawn from programme funds (to be spent on projects in countries): € 0.5 million. • Withdrawn from allocated reserves related to programmes/ countries (to be spent based on specific proposals to be received from countries): € 1.2 million. Of monies spent, 92,3% was spent directly on ZOA objectives According to RJ 650, ZOA categorises its expenses in three parts: spent on

objectives, spent on fundraising and spent on management and administration. ZOA aims to spend at least 88% directly in the first category. This first category consists of three objectives which are: • all expenditure in ZOA countries, • expenditure for (programme) preparation and coordination from the Netherlands • expenditure for the statutory ZOA objective of education and awareness raising Of course, ZOA continues to carefully monitor these expenditures as well as manage the costs in the second and third category. By doing so ZOA can realise high percentages of financial means spend in projects to provide relief, hope and recovery to as many people as possible. As evident from the table the percentage spent on the three objectives remained significantly above the 88% minimum at 92.3% in 2016 (92.9 % in 2015 due to higher volumes). The remaining 7.7% was spent on Fundraising for 4.3% (2015: 4.2%) and Management and administration for 3.4% (2015: 2.9%). Costs own fundraising The Dutch Central Bureau Fundraising (CBF) prescribes that the costs of own private fundraising be expressed as a percentage of income from own private fundraising. The CBF percentage for 2016 was realized at 15.4%. A total of € 9.2 million for income from own private

fundraising was realised (€ 11.1 million in 2015). The total expenditure for 2016 can be specified according to cost categories (direct expenditure in projects, personnel costs, etcetera). See the paragraph ‘attribution of costs’ under the notes to the statement of income and expenditure for a breakdown. Sufficient cash and reserves Given the high risk and unstable contexts ZOA works in and the core organisation values of faithfulness and stewardship, ZOA aims to keep part of the entrusted funds in reserves. As per the end of 2016, the balance sheet shows sufficient liquidity for ZOA to meet its short-term obligations: the balance of cash and receivables minus short-term liabilities and provisions decreased by € 2 million from € 16 million in 2015 to € 14 million in 2016. This net ‘available’ cash of € 14 million, together with the € 2 million that is invested in fixed assets, are represented in the programme funds, allocated reserves and continuity reserve which total € 16 million. According to RJ650, ZOA distinguishes between continuity reserves and allocated reserves for specific purposes. Yearly, ZOA reassesses its increasing programmatic risks in countries (reservation remained at € 0.5 million), reassesses its increasing need to be able to pre-finance essential projects in existing countries (reservation remained at € 2.0 million) and adjusts

the financing assets reserve for ZOA financed fixed assets that usurp liquidity (reservation remained at € 1.3 million). The general continuity reserve, which was substantially reduced in 2014, is above the € 2.0 million minimum required level. The actual balance end of 2016 is €2.6 million. In 2017 we will reassess the minimum required reserve level.

Key figures and summary INCOME (X â&#x201A;Ź 1.000.0000) Income own fundraising activities Income from third party campaings

Actual 2013 8,9 0,6

Actual 2014 8,4 1,2

Actual 2015 11,1 0,6

Actual 2016 9,2 0,9

Budget 2017 9,2 0,9

As % of total income (excluding consortia and other)

9,5 27%

9,6 27%

11,7 25%

10,2 25%

10,1 25%

Income from institutional project grants Income for consortia partners Other income

25,9 8,2 0,5

26,3 8,1 0,1

34,7 17,4 0,9

30,0 10,8 0,4

29,5 11,7 0,1

44,1

64,7

51,4

51,5

Actual 2013

Actual 2014

Actual 2015

Actual 2016

Budget 2017

28,9 2,2

27,8 2,1

37,9 2,1

36,4 2,1

34,3 2,7

TOTAL INCOME

EXPENDITURES Spent on objectives Spent in programme countries Spent in preparation and coordination from the Netherlands Spent on education and awareness raising

Expenditure through consortia partners Spent on own fundraising (CBF%) Spent on third party and institutional fundraising Management & Administration TOTAL EXPENDITURES

SURPLUS/-DEFECIT ADDED TO/ WITHDRAWN FROM Programme fund Continuity and other reserves

17,4% 3,6%

0,6

0,4

0,5

31,7 91%

30,3 91%

40,5 93%

39,0 92%

37,5 92%

8,2 1,5 0,3 1,2

17,5% 3,2%

8,1 1,5 0,3 1,1

17,4 1,5 0,3 2,9% 1,2

13,5%

10,8 1,4 0,4 3,4% 1,4

15,4%

11,7 1,5 0,4 3,5% 1,4

16,2%

42,9

41,3

60,9

53,1

52,6

1,2

2,8

3,8

-1,7

-1,1

Actual 2013 1,1 0,1

Actual 2014 0,8 2,0

Actual 2015 2,8 1,0

Actual 2016 -0,5 -1,2

Budget 2017 -0,5 -0,5

1,2

2,8

3,8

-1,7

-1,1

11.2 BALANCE SHEET After appropriation of the surplus

ASSETS Intangible fixed assets 1 Tangible fixed assets 2 Land Building Inventory & Equipment Vehicles in programme area's Stocks 3 Receivables 4 Marketable securities

31 Dec 2016 8,705

31 Dec 2015 7,416

349,000 866,051 51,336 64,956

349,000 842,825 125,732 212,516

1,331,343

1,530,073

111,910

10,563,138

7,074,522

250,517

100,000

18,372,787

18,770,034

30,638,401

27,482,045

31 Dec 2016 2,577,917

31 Dec 2015 2,573,360

2,000,000 1,340,048 500,000

2,000,000 1,537,614 500,000

3,840,048

4,037,614

1,281,913 1,581,602 963,722 266,717

966,918 2,685,606 1,183,507 267,529

4,093,954

5,103,560

5,515,174

6,009,474

16,027,093

17,724,008

262,280

519,351

Short-term liabilities Taxes and social security contributions 17 Accruals to donors 18 Other liabilities and other accruals 19

9,880,890 4,468,138

199,271 6,449,139 2,590,276

14,349,028

9,238,686

TOTAL RESERVES AND LIABILITIES

30,638,401

27,482,045

Cash and cash equivalents

TOTAL ASSETS

RESERVES AND LIABILITIES Reserves and funds Continuity reserves General 7 Allocated financing- and risk reserves Pre-financing projects 8 Financing fixed assets 9 Programme financing 10 Allocated reserves for future project spending Country program reserves 11 Programme development & innovation 12 Disaster Response 13 Other14 Programme funds

Provisions 16

Chapter 11 57

11.3 STATEMENT OF INCOME AND EXPENDITURE INCOME Income own fundraising activities 20 Door to door collection Legacies Contribution, donations, gifts Income from third party campaigns

Project Grants Project grants for consortia partners 22 From institutional donors 23 Interest Rate differences and other income 24 TOTAL INCOME

EXPENDITURES Spent on objectives 25 Spent on Objectives in Countries

Actual 2016 858,842 212,099 8,175,017

Budget 2016 850,000 400,000 7,750,000

Actual 2015 845,303 1,027,835 9,187,627

ADDED TO/WITHDRAWN FROM Programme Funds

9,245,958

9,000,000

11,060,765

Financing- and risk reserves

905,188

1,100,000

619,666

12,775,000 28,937,747

17,351,953 34,666,488

Programme financing

40,800,101

41,712,747

52,018,441

Future project spending

67,006

100,000

137,092

346,912

845,786

51,365,165

51,912,747

64,681,750

Actual 2015

10,765,107 36,394,620 47,159,727

12,775,000 34,721,835 47,496,835

17,351,953 37,860,034 55,211,987

2,122,512

2,399,113

2,093,093

502,686

440,041

519,809

49,784,926

50,335,989

57,824,889

1,419,914 33,663 382,201

1,385,408 10,348 434,419

1,487,599 60,315 286,334

1,835,778

1,830,175

1,834,248

1,441,369

1,229,389

1,248,418

TOTAL EXPENDITURES

53,062,073

53,395,553

60,907,555

SURPLUS/-DEFICIT

-1,696,908

-1,482,806

3,774,195

Preparation and Coordination from the Netherlands 26 Education/Awareness raising 27

Spent on fundraising 28 Expenses own fundraising Expenses participation in external campaigns Expenses received project grants Management and Administration 29

Pre-financing projects

10,765,107 30,034,994

Budget 2016

Actual 2015

-494,293

-1,304,142

2,770,590

Allocated reserves

Financing assets

Actual 2016

Project grants to consortia partners 22 Own spending on objectives

Future project spending

Actual 2016

Country programme reserves Programme development & innovation Disaster Response Other

-197,566

-180,869

-197,566

-180,869 467,798

314,995

-344,069

-1,104,004

-50,000

-14,394

-219,785

-114,121

222,414

-812

-1,391

-1,009,606

-508,190

674,427

4,557

329,526

510,047

-1,696,908

-1,482,806

3,774,195

Continuity reserves General continuity reserve TOTAL CHANGE IN RESERVES AND FUNDS

Chapter 11 59

11.4 CASH FLOW OVERVIEW Cash Flow

Liquidity ratio

CASH FLOW Cash flow from operating activities excluding consortia partners Received Out of own fundraising and third party campaigns Out of project grants Other income

Payments Programme and coordination costs Fundraising, management and administration costs

Cash flow from operating activities Cash flow into investments Assets bought (book value) Assets sold (book value) Mutation Stocks

Change in marketable securities and cash equivalents Balance December 31st Balance January 1st TOTAL CHANGE IN MARKETABLE SECURITIES, CASH AND CASH EQUIVALENTS

The cash flow statement is compiled according to the direct method. Cash receipts for project grants decreased to € 28.6 million and other income to € 0.5 million. However, payments for all programme and coordination costs decreased by € 4.9 million as well, excluding grants for consortia partners (€ 41.2 million in 2015 to € 36.3 million in 2016). Net

Actual 2016

Actual 2015

10,767,435 28,640,539 461,973

10,685,284 32,280,766 981,277

39,869,946

43,947,327

-36,338,186 -3,277,147

-41,169,861 -3,082,666

-39,615,333

-44,252,527

254,613

-305,200

-410,049 20,615 -111,910

-373,176 88,202

-501,344

-284,974

-246,731

-590,174

18,623,304 18,870,034

18,870,034 19,460,208

-246,730

-590,174

cash position therefore remained stable at a level of between € 18 million and € 19 million, even though the fluctuations of cash balances throughout the year increased in the last years. The fact that the balance of the cash position decreased two years in a row can be explained by the finalisation of the Ministry of Foreign Affairs projects MFS2 and Reconstruction.

LIQUIDITY RATIO Liquidity expressed by ACID ratio Receivables and Cash Short-term liabilities and provisions

The cash position should be analysed as part of the overall liquidity ratio including receivables and short-term liabilities. ACID ratio measures the ability of ZOA to use its cash or quick assets to pay or retire its current liabilities and current provisions immediately. Based on the liquidity ratio of 200%, ZOA has sufficient

Actual 2016 200% 29,186,442 14,611,308

Actual 2015 266% 25,944,556 9,758,037

funds available to cover all short term obligations. The remaining € 14.6 million roughly represent the reserves and programme funds. This balance decreased during 2016 (2015: € 16.2 million) due to increased expenditure from the programme fund and specific reserves in programme countries in 2016.

Chapter 11

11.5 EXPLANATORY NOTES TO THE ANNUAL ACCOUNTS General The annual accounts have been prepared in accordance with Guideline 650 of Fundraising Organisations (RJ 650). Income and expenditures of consortia partners are excluded from indicator percentages unless indicated otherwise. The annual accounts have been prepared on historical cost basis or at fair value. Unless indicated otherwise, assets and liabilities are presented at historical costs. Income and expenditure are allocated to the period to which they relate. The annual accounts are presented in euros. Reporting period These annual accounts have been prepared based on a review period of one year. The financial year coincides with the Gregorian calendar year.

Comparison with previous year The valuation principles and methods of determining the result are the same as those used in the previous year, with the exception of the changes in accounting principles as set out in the relevant sections. Transactions in foreign currencies Transactions in foreign currencies are converted against the exchange rate that is applicable at the time of the transaction. Monetary assets and liabilities in foreign currencies are converted at balance sheet date in the functional currency against the rate applicable on that date. Non-monetary assets and liabilities in foreign currencies that are presented at historical cost are converted into euros at the exchange rates applicable on the transaction date. Differences in exchange rates appear as a result in the statement of income and expenditures.

Use of estimates The preparation of the annual accounts requires the Chief Executive Officer to make judgments, estimates and assumptions that influence the application of accounting principles, as well as the reported value of assets, liabilities, income and expenditure. The actual outcome may deviate from these estimates. The estimates and underlying assumptions are continually assessed. Revised estimates are used in the period that the estimate changes and in future periods where revision may have consequences. Impairment If the book value of an asset exceeds the value of the direct sales value and/or the estimated present value of the future cash flows, impairment is charged which is the difference between the book value and the recoverable amount.

Financial instruments During the normal course of business, ZOA uses various financial instruments that expose the organisation to market and/or credit risks. These relate to financial instruments that are included on the balance sheet. Receivables on the balance sheet relate mainly to donor receivables and are mainly from large institutional parties. The credit risks on these receivables are therefore limited. ZOA has a very limited interest rate risk, as ZOA has no interest-bearing loans. The market value of the financial instruments stated on the balance sheet is approximately equal to their carrying amount. ZOA does not trade in financial derivatives.

Chapter 11 61

11.6 ACCOUNTING PRINCIPLES FOR THE BALANCE SHEET Fixed assets The intangible assets, buildings, refurbishments, fixtures and equipment and means of transportation in programme areas are valued at acquisition or manufacturing cost minus the cumulative depreciations and/or accumulated impairment losses, if any. Partially or fully depreciated fixed assets will only be removed out of the fixed assets registers when they have been sold or officially decommissioned. Maintenance expenses will only be capitalized as assets if these extend the economic life of the object. Expenses regarding major maintenance of buildings will not be accrued for in a provision. These costs will be directly registered in the statement of income and expenditure. Depreciations are calculated as a percentage of the acquisition price according to the straight-line method based on the estimated useful life of the assets. Land and tangible fixed assets for sale are not depreciated.

Stocks Stocks are valued at the acquisition price. The acquisition price comprises the purchase price and additional costs, such as import duties, costs of transportation and other costs that can be directly allocated to the acquisition of stocks. The valuation of the stocks takes account of any downward value adjustments on the balance sheet date. Receivables, prepayments and accrued income Receivables are valued at fair value including a provision for non-recoverability if needed. Provisions are determined according to individual assessment of the collectability of the debts. No receivables relating to years one year after balance date are included. Marketable securities Marketable securities are valued at fair value.

Cash and cash equivalents Cash and bank balances are valued at face value. Non-euro cash and bank balances Intangible fixed assets: are converted against actual rate at end Software 25% of book year, based on international EU-rates. Tangible fixed assets: Land 0% Reserves and funds Building 31/3% The reserves and funds of ZOA exist to Refurbishments 10% achieve ZOAâ&#x20AC;&#x2122;s objectives. They can be Inventory and equipment 25% summarised as follows: Vehicles in programme areas 331/3%

Continuity reserves The general continuity reserve enables the organisation to meet its commitments during an unforeseen stagnation of income. Restrictions on spending continuity reserves is determined by the Executive Board. Allocated reserves The allocated reserves are earmarked by the Executive Board and consist of two groups. First reserves for (pre)financing and particular risks and secondly reserves for future project spending. The first group consists of the allocated reserves for pre-financing projects (to enable start or continuation of projects in countries before donor installments are received), financing assets and programme financing (risk of unrecoverable expenses). The second group consists of country programme reserves, programme development and innovation, disaster response activities and other earmarked reserves related to assets in countries (vehicle replacement reserves). Programme Funds Programme funds concern funding acquired with a specific use designated by the donor, but not yet spent on these designations. Provisions Provisions are recognized for legally enforceable obligations that exist at balance sheet date and for which an

outflow of resources will be required and a reasonable estimate can be made. Provisions are measured at the best estimate of the amount that is necessary to settle the obligation as per balance sheet date. Obligations relating to contributions to pension schemes based on defined contributions are presented as expenditure in the statement of income and expenditures, in the period that the contributions are due. In addition, a provision is included for existing additional commitments to employees, provided it is likely that there will be an outflow of funds for the settlements of the commitments and provided it is possible to reliably estimate the amount of these commitments. Liabilities ZOA enters into obligations to donors in countries in which ZOA is implementing programmes. A donor obligation is recognised after the Executive Board has passed the resolution and has communicated this to the donor and the grant recipient, which leads to a legally enforceable or actual obligation to spend for the agreed project. The remaining obligation is presented in the balance sheet as a liability. Liabilities are valued at fair value. Obligations relating the years one year after balance date are registered as long-term liabilities if applicable.

Leasing At the moment of contracting, the economic reality, including all facts and circumstances, will determine whether a contract is leasing.

A contract is leasing when the fulfillment of the contract is dependent on particular use of a specific asset or on the rights to use a specific asset. In case of financial lease, the

asset is activated and depreciated as part of the fixed assets. At ZOA, there is no financial lease. In case of operational lease, the lease terms are charged to the expenditure

statement linear to the lease period. At ZOA, this applies to some office equipment in the Netherlands (value future lease terms less than â&#x201A;Ź 15,000).

Chapter 11 63

11.7 ACCOUNTING PRINCIPLES FOR THE STATEMENT OF INCOME AND EXPENDITURES Income and expenditure are attributed to the period to which they relate. All proceeds are entered as income for their gross amount, unless explicitly stated otherwise. Costs necessary to realise certain income are presented as expenditure in the statement of income and expenditures. Income from own fundraising activities Income from own fundraising activities is recognised as income in the year of receiving, or moment of signing a specific contract. It includes the income from the door-to-door collection, legacies, contributions, donations and gifts. Donations in kind are valued at actual value. Legacies are recorded as income in the year the notary has communicated the deed of partition, ‘akte van scheiding en deling’. The estimation is based on prudent valuation. Donations and legacies still under usufruct by the donating party are recognised in the year that the usufruct ends; in these financial accounts they are presented as off balance sheet receivables. Income recognition projects implemented by partners Income recognition related to projects implemented by partners is based on periodically received expenditure reports. Income from third party campaigns Contributions from other fundraising organisations are accounted for as ‘income from third party campaigns’ for the

amount received by the organisation. They are recognised in the year that income from the campaign by third parties has been received or pledged by this third party. Campaigns by third parties only include campaigns for which ZOA does not bear any risk. Project Grants from institutional donors Operating grants are recognised in the statement of income and expenditure of the year that includes the subsidised expenditure. Losses are taken into account if they originate in the relevant financial year and as soon as these are anticipated. Project Grants for consortia partners Project grants for consortia partners are recognised, both as income and as expenditure, in the statement of income and expenditure in the year of the contractual spending obligation. Project Grants in kind Grants received in kind, often food and relief supplies, are valued at the cost stated in the contract relating to the goods. If the contract does not provide for this, the goods will be valued at fair value at place of delivery. If received goods are not based on a contract and a reliable valuation is lacking, the transaction will not be accounted for in the statement of income and expenditures.

Rate differences and other income Currency translation results arising upon the settlement or conversion of monetary items are recognized in the statement of income in the period they are realized, unless hedge accounting applies. Costs Stakeholders also require insight into the level and breakdown of the costs of fundraising organisations; the notes provide a specification of these costs in accordance with model C of the RJ 650 guidelines. Employee costs (salary, social security, pension etc.) are not presented as a separate item in the statement of income and expenditure. These costs are included in other components of the expenditure. Spending on objectives Expenditures spent on objectives include amounts allocated for activities designed to meet the objectives during the financial year, as well as implementation costs. Expenditures include subsidies to local partners, relief goods and food purchased, cost of deployed personnel, transport costs, local accommodation costs and office expenses. It also includes the acquisition costs for means of transport and office inventory which might be made available to the local partner after the project has ended.

Costs of fundraising All costs incurred for activities aimed at persuading people to donate money for one or more of ZOA’s objectives, are earmarked as costs of fundraising. This means that the costs for publicity and public relations are regarded as costs of fundraising, unless they are costs for education and awareness raising. It can often concern various activities: information and fundraising at the same time. In such cases, the part of the costs relating to the information activity will be allocated to that activity. Depending on the specific information objectives, the allocation formula is decided for each situation in advance. Costs of management and administration Costs of management and administration are costs that ZOA incurs for (internal) management and administration and are not directly allocable to ZOA’s objectives or to fundraising income.

Chapter 11

11.8 EXPLANATORY NOTES TO THE BALANCE SHEET ASSETS INTANGIBLE FIXED ASSETS At 1 January 2016 Acquisition value Cumulative depreciation Book value

Total 2016

Total 2015

48,005 40,589

46,432 34,901

7,416

11,531

4,247 2,958 -

1,573 5,688 -

1,289

-4,115

At 31 December 2016 Acquisition value Cumulative depreciation

52,252 43,547

48,005 40,589

BOOK VALUE

8,705

7,416

Changes in book value Investment Disinvestment Depreciations Depreciations disinvestment Balance

TANGIBLE FIXED ASSETS At 1 January 2016 Acquisition value Cumulative depreciation Book value Changes in book value Investment Disinvestment Depreciations Depreciations disinvestment Balance At 31 December 2016 Acquisition value Cumulative depreciation BOOK VALUE

STOCKS Stocks

31 Dec 2016 111,910

31 Dec 2015 -

111,910

Intangible fixed assets 1 The intangible assets are the investment and depreciation of the software system ZOA has developed for use in the country

programmes. Any improvements are recorded as investments and will be depreciated.

Tangible fixed assets 2 The investments in 2016 of € 0.4 million primarily consist of vehicles needed in country programmes. The investment in buildings were done in the Netherlands for replacement of the air circulation system. Disinvestments of € 0.8 million relate mainly to vehicles sold in country programmes or fully depreciated and

replaced ICT hardware. Disinvestments are assets sold by ZOA after they became redundant or economically too expensive to operate. Land and buildings were acquired in 2013. There is no indication that the actual value at end of book year is materially higher or lower than the book value.

Land

Building

Inventory & Equipment

Vehicles

Total 2016

Total 2015

349,000 -

934,191 91,366

820,568 694,836

3,711,306 3,498,790

5,815,066 4,284,992

5,672,603 3,953,962

349,000

842,825

125,732

212,516

1,530,073

1,718,641

61,136 37,911 -

37,137 102,291 111,534 102,291

307,528 675,861 434,473 655,246

405,802 778,152 583,917 757,537

359,914 217,452 548,482 217,452

23,226

-74,396

-147,560

-198,730

-188,568

349,000 -

995,328 129,277

755,415 704,079

3,357,012 3,292,055

5,456,754 4,125,411

5,815,065 4,284,992

349,000

866,051

51,336

64,957

1,331,343

1,530,073

Stocks 3 Stocks per 31 December 2016 are blankets, mattresses and hygiene kits for distribution

in our Middle East programme. At 31 December 2015 ZOA had no goods in stock.

Chapter 11 65

Receivables

Marketable securities

RECEIVABLES Receivables from institutional donors European Union (ECHO / Europeaid) Ministry of Foreign Affairs UN-organisations USAID ICCO Kerk in Actie World Renew MRRD (Afghan government) Other donors Receivables Christian Emergency Cluster Woord en Daad Receivables from third parties EO Metterdaad Other third parties Project expense advances to local partners Other debtors en receivables Prepaid expenses countries Debtors and prepaid expenses NL Legacies Interest to be received

Receivables from institutional donors relate to project grant installments still to be received for projects that are implemented by ZOA. The position increased from â&#x201A;Ź 4.4 million in 2015 to â&#x201A;Ź 9.3 million at the end of 2016. This is partly due to still to be received final installments for the

31 Dec 2016

31 Dec 2015

3,750,437 2,972,993 1,334,787 1,106,834 59,849 979 82,709

1,851,806 317,168 504,965 1,016,515 73,093 44,770 641,145 31,520

9,308,588

4,480,982

1,400

13,991 194,805 208,796

43,610 439,748 483,358

865,396

522,228 253,814 223,274 46,438

328,043 255,850 565,000 94,493

1,045,754

1,243,386

10,563,138

7,074,522

European Union and Ministry of Foreign Affairs projects. Multiple projects have ended before 31 December 2016, but final installments will be received by ZOA after approval of the final audit reports. All receivables are claimable within one year.

MARKETABLE SECURITIES Oikocredit EDCS U,A,

ZOA has a direct membership in Oikocredit. Oikocredit supplies micro credits in developing countries and is therefore closely related to the mission Cash and cash equivalents

31 Dec 2016 250,517

31 Dec 2015 100,000

250,517

100,000

of ZOA. The investment in Oikocredit yields a fixed 1.55% per year and is valued at actual value. The funds are available without restrictions.

CASH AND CASH EQUIVALENTS In bank accounts Euro in the Netherlands Euro in programme countries

US Dollar in the Netherlands US Dollar in programme countries

GB Pounds in the Netherlands GB Pounds in programme countries

Other currencies in Netherlands Other currencies in countries Held in cash

ZOA aims to keep its cash and cash equivalents balances in EUR, USD or GBP, depending on the currency of the planned expenditure. Contracts with institutional donors can contain obligations in non-EUR currency. This will lead to rate differences. In general, these do not influence programme activities, since most of the expenditures are also paid in or linked to these currencies.

31 Dec 2016

31 Dec 2015

9,138,111 1,412,716

13,589,194 873,551

10,550,827

14,462,745

1,906,517 2,204,878

223,524 1,518,248

4,111,395

1,741,772

1,977,151 -

583,751 -

1,977,151

583,751

1,467,568

1,850,410

1,467,568

1,850,410

265,846

131,356

18,372,787

18,770,034

ZOA aims to limit large balances in unstable foreign currencies. At 31 December 2016 the other currencies balance in countries are local currencies needed for short term project implementation. Cash and bank balances are freely available without restrictions. The cash position should be analysed as part of the overall liquidity position, see the cash flow overview and liquidity ratio.

Chapter 11

RESERVES AND LIABILITIES Reserves and funds CONTINUITY AND ALLOCATED RESERVES Continuity reserves General 7 Total continuity reserves Allocated financing and risk reserves Pre-financing 8 Financing fixed assets 9 Programme financing 10 Total allocated finance and risk reserves Allocated reserves for future project spending Country programme reserves 11 Sri Lanka Middle East Region Uganda Burundi Afghanistan Liberia DR Congo Other

Programme development & innovation

Disaster response 13 Balance start book year Spent on emergency projects Nigeria Spent on Disaster Response Team From programme funds

Other allocated reserves

Total allocated reserves for future project spending TOTAL

31 Dec 2016

Added to

Spent

31 Dec 2015

2,577,917 2,577,917

4,557 4,557

2,573,360 2,573,360

2,000,000 1,340,048 500,000 3,840,048

-197,566 -197,566

2,000,000 1,537,614 500,000 4,037,614

486,277 296,479 185,033 142,009 82,991 79,805 9,319

60,246 284,928 9,597 108,462 72,703 79,805 -

25,264 90,984 125,584 36,181

426,031 11,551 223,433 33,547 101,272 125,584 45,500

1,281,913

615,741

300,746

966,918

1,581,602

1,104,004

2,685,606

1,183,507 -225,875 -63,522 69,612

69,612

225,875 63,522 -

1,183,507 -

963,722

69,612

289,397

1,183,507

266,717

812

267,529

4,093,954

685,353

1,694,959

5,103,560

10,511,919

492,344

1,694,959

11,714,534

The net changes in reserves (added-to minus spent) correspond with allocations from the 2016 result shown in the statement of income and expenditure (added to/withdrawn from box). ZOA reserve policy ZOA needs to maintain reserves for general, financial and operational risks. ZOA does not keep more reserves and funds than reasonably necessary to realise the organisational goals. If the reserves are needed to cover a particular risk, the Executive Board and the Supervisory Board base the level of the reserve on a risk assessment and take precautionary measures to reduce risks. Continuity reserve 7 The general continuity reserve covers all remaining risks that are not addressed in any other allocated reserve. The general continuity reserve should, for example, compensate unforeseen, sudden and temporary stagnation of income or unforeseen excessive expenses. The Executive Board and the Supervisory Board have set a general continuity reserve of € 2 million as the minimum requirement. This will be reviewed in 2017. As a fundraising institution, ZOA adheres to the Goede Doelen Nederland Guideline ‘Financial management charities’ (Richtlijn ‘Financieel beheer goede doelen’) which prescribes a maximum level of the general continuity

reserve per end of 2016. ZOA’s reserve is significantly lower than this maximum. Allocated reserves The restriction on spending of the allocated reserve has been determined by the Executive Board. Allocated reserves do not yet constitute an obligation; the Executive Board is able to change the restriction. These reserves are annually reviewed. Pre-financing 8 Classified as allocated reserve is an amount of € 2.0 million, allocated to be able to pre-finance essential project expenses that either by contractual obligations or by delay in payment by donors require pre-financing by ZOA. Such pre-financing allows ZOA to continue execution of projects at the quality level and pace ZOA deems necessary despite delay in payments by donors. The amount of this reserve is set by the Executive Board. Above a certain threshold, pre-financing is only allowed after explicit consent from the Executive Board. Financing fixed assets 9 The allocated reserve ‘Financing fixed assets’ of € 1.3 million is meant to counterbalance the financial resources used for tangible fixed assets and are therefore not available in cash for other purposes.

Programme financing 10 The allocated reserve of € 0.5 million for programme financing is meant to cover increased programmatic risks of prepaid project expenses by ZOA that may be unrecoverable from donors. Country Programme reserves 11 The allocated reserve ‘Country programme reserves’ is meant for programmes in the countries mentioned in the table. These reserves have been calculated based on the financial performance of these countries and may be used by these countries for specific projects. Due to positive financial performance of these country programmes in 2016, the allocated reserve has increased to € 1.3 million. Programme development & innovation 12 An allocated reserve for programme development and innovation was formed in 2014 to be able to invest more in country programme development at the start of these programmes and to finance programme innovation such as the urban refugee pilot projects for example, which were developed in 2015 and have increased implementation in 2016. This reserve is also meant for investments in country programme development at the (re)start of these programmes when cost coverage is still limited and recovery of these start-up costs in later years is uncertain.

Disaster Response reserve 13 This ‘Disaster response reserve’ was established because disaster response is a core activity of ZOA. ZOA must be financially able to respond to urgent requests for aid without delay. However, funding drawn from this reserve is considered to be a form of pre-financing that has to be compensated afterwards as much as possible through earmarked donations received through emergency relief campaigns. Other allocated reserves 14 Other allocated reserves are created for specific purposes in the programme countries. Currently, this reserve is a reservation in a country to replace already depreciated tangible fixed assets (mainly vehicles) in the near future.

Chapter 11

Programme funds

PROGRAMME FUNDS

Afghanistan Burundi Cambodja Congo Ethiopia HaĂŻti Liberia Middle East Region Myanmar Nepal Nigeria Philippines Sri Lanka South-Sudan Sudan Uganda Ukraine Subtotal

31 Dec 2016

134,526 172,661 28,274 61,197 477,726 12,628 52,700 2,651,366 189,454 288,194 161,484 113,870 88,159 247,359 16,054 639,741 5,335,393

Money received

Spent on projects

Re-allocation

Contribution reserves

31 Dec 2015

Third Parties

Own Fundraising

113,067 275,508 172,051 200,000 51,389 15,000 77,173 904,188

124,959 330,897 96,633 110,532 148,683 174 149,391 1,433,369 139,135 7,249 94 46 135,874 155,228 35,775 1,160,255 759 4,029,053

265,136 467,754 68,359 134,368 917,009 42,800 538,979 1,324,137 241,987 506,565 115,874 325,739 311,205 234,667 114,294 1,338,979 24,197 6,972,049

854 47,885 42,603 200,906 9,000 181,987 133,092 236,416 62,367 85,053 1,000,163

203,977 36,346 -174 88,566 -24,999 225,875 -27,928 -626 501,038

69,872 148,567 42,430 733,292 55,428 442,288 2,272,517 110,319 612,509 467,491 130,398 90,382 17,205 656,239 24,064 5,873,001

1,770 212,247 15,886 53,262 -35,267

-1,335 -140,750 -42,092 -1,348

-355 -15,886 -2,825 -

99,858 36,615

Education/Wash Drought Africa (general) Emergency Relief (general) SHV Fund J.M. Bogman Fund

80 71,497 108,203 -

Subtotal

179,780

247,898

-185,525

-19,066

136,473

5,515,174

904,188

4,276,951

6,972,049

814,638

481,972

6,009,474

TOTAL

The Programme Funds include available financial means that donors or contributors have earmarked for a particular programme or project, either emergency relief or rehabilitation. Because private or institutional funding is not always regular, the pattern of income versus spend on projects may fluctuate. Surpluses and deficits will, where possible, be settled within the funds and within projects with a similar goal. The remainder will be added to or withdrawn from other reserves. Below the explanation of the main balances of programme funds that total € 5.5 million per 31 December 2016 (€ 6.0 million at end of 2015). Ethiopia € 0.5 million € 0.3 million is related to relocating IDPs in the Somali region. The project has currently been put on hold by the government. The project has to be carried out under the condition that World Food Programme supplies food packages to the relocated IDPs, which is currently not yet guaranteed.

Middle East Region € 2.7 million In 2016 there were fundraising campaigns for Mosul and for Syrian refugees, adding € 1.6 million to the funds. The balance of € 2.7 million at the end of 2016 is contracted in 2017. Nepal € 0.5 million In 2015 ZOA started a campaign for the victims of the earthquake in April 2015. In total €1.5 million was received during 2015 and 2016. In 2017 the remaining amount will be spent on earthquake-proof housing, livelihood support, and water and sanitation. Uganda € 0.7 million In 2016 several projects received prefinancing from donors. These amounts will be spent in 2017.

Chapter 11

Provisions

PROVISIONS For potential tax repayment For liabilities local pensions and taxes Other provisions

Provisions for potential liabilities for costs and claims related to pensions and tax (re)payments in countries and in the Netherlands. At 31 December 2016 it is uncertain if these costs must be paid, but a

31 Dec 2016 145,895 116,385 -

31 Dec 2015 111,322 383,029 25,000

262,280

519,351

provision is deemed necessary. In 2016 the total balance of provisions has decreased from the balance of 2015 due to decreased estimated liabilities for local expat taxes.

The movement per provision can be specified as follows: Potential tax repayment provision

Local pension and taxes provision

Other provisions

Total

Balance January 1st 2016

111,322

383,029

25,000

519,351

Addition

34,573 145,895 -

383,029 266,644 -

25,000 25,000

34,573 553,924 266,644 25,000

145,895

116,385

262,280

Utilization Release BALANCE DECEMBER 31ST 2016

The amounts of the tax repayment provision and the local pension provision could be reasonably estimated. The

projected outflow of resources is expected to be in the upcoming two year, but cannot be broken down in separate years.

Chapter 11 71

Short-term liabilities SHORT-TERM LIABILITIES Taxes and social security Netherlands

Accruals to donors 18 Ministry of Foreign Affairs UN-organisations EU (ECHO/EUROPEAID) Dutch Embassy Livelihoods and Food Security Trust Fund (LIFT) USAID DFID NIRAS Tear Australia ICCO Kerk in Actie AusAID Japan Embassy Edukans Woord en Daad Other donors

Other liabilities and accruals 19 Contractual obligations to be paid to partners Liabilities countries related to staff Creditors the Netherlands Provision annual leave the Netherlands Accrual holiday allowance Other liabilities and accruals countries Other liabilities and accruals the Netherlands

TOTAL

31 Dec 2016 -

31 Dec 2015 199,271

4,235,425 1,899,917 1,329,836 1,130,662 666,522 200,718 142,928 128,312 47,721 98,849

2,068,368 146,407 279,963 2,685,920 81,762 402,626 113,874 36,586 252,136 88,563 83,531 68,409 6,530 134,463

9,880,890

6,449,139

1,452,747 1,147,904 432,319 253,193 178,562 750,096 253,317

931,320 317,813 236,278 168,008 667,801 269,056

4,468,138

2,590,276

14,349,028

9,238,686

Taxes and social security contributions 17 Dutch taxes and social security contributions due at 31 December 2016 and paid in 2017. At the end of 2015 monthly payroll tax was a liability. In December 2016 however, monthly payroll tax was paid in the current month. Therefore no balance remains at year-end. Accruals to donors 18 Institutional donor contributions received in advance that will be spent after the year 2016 appear as liabilities. ZOA received these payments based on programme proposals and contracts. ZOA is required to spend the funds accordingly and to return the money to the donor if the commitment is not fulfilled Other liabilities and accruals 19 Liabilities countries related to staff These liabilities are liabilities towards local staff related to severance pay and pensions. These liabilities can be different between countries as they are based on government regulations or customary branch regulations. Contractual obligations to be paid to partners These liabilities concern project implementation by partner organisations that requires refunding by ZOA. At the end 2015 the balance was debit under receivables (project expense advances to local partners).

Other liabilities and accruals countries These liabilities and accruals relate to creditors and costs to be paid in countries. Off balance sheet liabilities Liabilities not presented in the balance sheet per end of book year relate to office rent and other contracts in countries. Of the total off balance sheet liabilities of € 0.3 million, € 162,284 relate to the short-term (maximum of one year) and € 120,367 to long-term liabilities (between one end five years). Off balance sheet receivables A residential house was donated in 2013. The previous owner continues to use the house (usufruct). The estimated value of the house at the end of 2016 is € 0.2 million.

Chapter 11

11.9 EXPLANATORY NOTES TO THE STATEMENT OF INCOME AND EXPENDITURE INCOME Total income in book year The total income of ZOA decreased from € 64.7 million in 2015 to € 51.4 million in 2016, showing a large decrease of € 13.3 million, mainly caused by the finalisation of the MFS2 contract. Excluding project grants for consortia partners, income decreased from € 47.3 million in 2015 to € 40.6 million in 2016, a substantial decrease of € 6.7 million or 14%. Earmarked and unearmarked income from own fundraising as well as income from institutional donors are lower than in 2015. The income components are detailed and explained below.

Income own fund raising activities

INCOME OWN FUNDRAISING ACTIVITIES Unearmarked Door to door collection Legacies Contribution, donations, gifts

Earmarked Contribution, donations, gifts, legacies For reconstruction For emergency campaigns

TOTAL

Income from own fundraising decreased by € 1.8 million or 17% from € 11.0 million in 2015 to € 9.2 million in 2016. The decrease for unearmarked income was € 1.1 million and for earmarked income € 0.7 million. The ratio of unearmarked income versus total income own fundraising stayed in line with 2015 (resp. 54% in 2016 against 55% in 2015). Unearmarked The income from the door-to-door collection 2016 was in line with income from door-to-door collection in both 2014 and 2015, as well as the budget 2016. The large decrease in unearmarked income was caused by unexpected substantial legacies received in 2015.

Actual 2016

Budget 2016

Actual 2015

858,842

850,000

845,303

204,844

400,000

1,027,835

3,905,321

3,936,600

4,174,090

4,969,007 54%

5,186,600 58%

6,047,228 55%

3,169,696 1,107,255

2,769,400 1,044,000

2,716,883 2,296,654

4,276,951 46%

3,813,400 42%

5,013,537 45%

9,245,958

9,000,000

11,060,765

Earmarked Earmarked income decreased by € 1.2 million in emergency campaigns, due to substantial income from campaigns for relief work regarding the refugee crisis in Syria and the earthquake victims of Nepal in 2015. The earmarked reconstruction income on the other hand increased € 0.5 million in 2016 compared to 2015.

Chapter 11 73

Income from third party campaigns

Project grants for consortia partners

INCOME FROM THIRD PARTY CAMPAIGNS Deputaatschap Bijzondere Noden EO-Metterdaad Låkarmissionen Deputaatschap Hulp bij Bijzondere Noden Happy Gift Aqua for All Other

Actual 2016 269,805 205,551 198,519 100,000 95,000 35,313 1,000 905.188

These amounts concern income from campaigns by fundraising organisations in support of ZOA programmes and projects. This income component saw an increase over 2016 for a total of € 0.3 million. Main additional contributors

Budget 2016

Actual 2015 68,674 365,992 100,000 25,000

PROJECT GRANTS FOR CONSORTIA PARTNERS BUZA-DRA - Syria Joint Response BUZA-DRA - Capacity project MFS-DCR consortium with HNTPO, Care and Save the Children Other consortia

60,000 1.100.000

619.666

were Låkermissionen and Deputaatschap Hulp bij Bijzondere Noden as these organisations did not contribute in 2015. Income from Deputaatschap Bijzondere Noden increased with € 0.2 million.

When ZOA is the lead partner in a consortium, ZOA has legal responsibilities for such a consortium as a whole and is obliged to report the full consortium income as well as expenses. Therefore, the amounts for consortia shown in the income appear also in the expenses.

Actual 2016 10,585,107 180,000

Budget 2016 10,000,000 -

Actual 2015 9,672,516 -

7,327,282

2,775,000

352,155

10,765,107

12,775,000

17,351,953

The MFS-DCR consortium under the lead of ZOA, with DCR partners CARE Nederland, Save the Children and Healthnet TPO ended in 2015. The BUZADRA consortium ran up to 2016, but a one-year extension for 2017 was signed in 2016.

Project Grants from institutional donors

PROJECT GRANTS FROM INSTITUTIONAL DONORS DMH/VG (Reconstruction) DMH/VG (Protacted Crisis) DMH/VG Adressing the Root Causes (ARC) DMH/VG (MFS-2) DSH-HH (Joint Response) DSH-HH (Emergency) Subtotal Royal Netherlands Embassy Burundi Royal Netherlands Embassy Ethiopia Royal Netherlands Embassy Myanmar Royal Netherlands Embassy Liberia Subtotal Total Dutch Ministry of Foreign Affairs donors Europe Aid ECHO Total EU donors United Nations (OCHA) United Nations Development Programme (UNDP) UNHCR - Sri Lanka UNHCR - Ethiopia Food and Agriculture Organisation (FAO) United Nations Office for Project Services (UNOPS) World Food Programme (WFP) UNICEF - Sudan UNICEF - Afghanistan UNICEF - Liberia UNICEF - South Sudan UNICEF - Ethiopia UNICEF - Sri Lanka Total UN donors

Actual 2016 2,019,450 1,705,901 199,933 5,386,612 1,919,013 11,230,909 724,681 163,341 11,084 899,106 12,130,015 3,374,441 1,944,274 5,318,715 1,226,456 150,446 68,412 92,726 753,986 186,058 329,396 148,516 137,968 86,352 27,614 3,207,930

Budget 2016 11,862,000 11,862,000 5,240,000 2,677,000

Actual 2015 5,890,210 1,595,114 5,247,959 3,703,963 162,812 16,600,058 813,582 236,460 51,750 1,101,792 17,701,850 3,453,771 455,115 3,908,886 123,419 719,160 27,162 1,820,662 522,790 118,015 201,617 395,635 482,045 108,308 479,841 74,482 5,073,136

Chapter 11 75

PROJECT GRANTS FROM INSTITUTIONAL DONORS (CONTINUED) Department for International Development (DFID) of the United Kingdom U.S. Agency for International Development (USAid) Ministry of Rural Rebabiliation & Development (MRRD / Afghanistan) Australia Government Aid Programme (AusAid) Japenese Embassy Total Governmental donors International Fertilizer Development Center (IFDC) ICCO / Kerk in Actie Niras International Consulting (NIC) Livelihoods and Food Security Trust Fund (LIFT) NWO-WOTRO Diaconia Woord en Daad Catholic Relief Service Geneva Global Koornzaaier The Economic Community of West African States (ECOWAS) Medair TEAR Australia World Renew (CRWRC) Cordaid Mercy Corps International Rescue Committee Habitat for Humanity Sri Lanka (HFHSL) Red een Kind Other Total Others TOTAL PROJECT GRANTS

Actual 2016 2,538,109 1,952,919 505,159 225,228 84,982 5,306,397 1,189,865 844,945 635,562 335,753 281,086 159,603 156,530 133,155 79,801 75,224 59,951 49,976 47,970 -

Budget 2016 4,508,000 -

Actual 2015 302,084 1,777,201 881,060 1,316,551 85,595 4,362,491 67,336 858,289 512,364 156,635 27,915 785,057 6,490 20,836 71,311 802,740 125,000 108,569 26,474

22,516 4,071,937

4,650,747

24,780 20,000 6,328 3,620,125

30,034,994

28,937,747

34,666,488

This income reflects contributions from the Dutch government, the European Union, United Nations organisations, such as UNHCR, UNDP, UNICEF, WFP and others. Whether donors are willing to contribute to an emergency situation or reconstruction project during the year and for what amount is difficult to anticipate in the budget. However, actual figures 2016 of € 30.0 million exceeded the budget for 2016 by € 1.1 million. Compared to 2015, income from institutional donors decreased by € 4.6 million or 14% from € 34.7 million to € 30.0 million in 2016. The part of income that was received from the Dutch Ministry of Foreign Affairs in The Hague, including Embassies, decreased significantly to 40% in 2016 (2015: 51% and 2014: 49%) as both MFS-2 and Reconstruction projects have finished. Increased or decreased funding per donor can be explained by their change in priorities in the choice of geographical areas or sectors they work in. It is ZOA’s policy to partner with donors when their priorities meet the programme goals and mandate of ZOA.

Chapter 11

Rate differences and other income

EXPENDITURES

RATE DIFFERENCES AND OTHER INCOME Currency exchange and recalculation gains Release of provision fundraising cost Other income

The currency exchange and recalculation gains show a positive balance in 2016. The increase is mainly due to US dollar positions. Due to a stronger US dollar, the value of these positions expressed in

Actual 2016 71,141 275,771

Budget 2016 -

Actual 2015 703,423 96,052 46,311

346,912

845,786

Euros increased, leading to currency gains. Currency exchange and recalculation results are never budgeted for as they are unpredictable risks ZOA tries to mitigate where possible.

Total expenses in book year While income decreased by a total of € 13.3 million, expenses decreased by € 7.8 million from € 60.9 million in 2015 to € 53.1 million in 2016. ZOA’s aim is to spend at least 88% of resources on

its objectives. In 2016 ZOA exceeded that minimum by 4.3%. The types of expenditure expressed in a percentage of the total, excluding expenditure through consortia partners, are shown in the table below.

Expense structure of the organisation EXPENSE STRUCTURE OF THE ORGANISATION Spent on objectives in countries excl. consortia

Actual 2016 86,0%

Budget 2016 85,5%

Actual 2015 86,9%

Education and awareness Programme preparation and coordination in The Netherlands

1,2% 5,0%

1,1% 5,9%

1,2% 4,8%

92,3%

92,5%

92,9%

4,3% 3,4%

4,5% 3,0%

4,2% 2,9%

100,0%

Total spent on objectives Fundraising costs Costs of management and administration TOTAL COSTS OF THE ORGANISATION

Chapter 11 77

Spent on objectives in countries

SPENT ON OBJECTIVES Projects Spent through consortium partners Own spent on objectives in countries Afghanistan Burundi Cambodja Congo Ethiopia Haiti Liberia Middle East Region Myanmar Nepal Nigeria Pakistan Philippines Sri Lanka Somalia South Sudan Sudan Uganda Ukraine Other

Actual 2016

Budget 2016

Actual 2015

10,765,107

12,775,000

17,351,953

2,866,792 2,941,859 68,359 1,914,866 5,324,549 42,800 1,254,180 3,954,759 1,153,129 498,623 109,964 304,920 1,106,427 516,471 3,268,801 7,923,735 3,073,532 22,200 48,654

2,200,000 3,000,000 1,400,000 4,950,000 40,000 1,000,000 5,000,000 1,000,000 155,000 230,000 2,000,000 4,250,000 6,000,000 2,200,000 1,296,835

2,954,122 3,052,709 3,731,241 4,322,674 3,305,754 3,548,235 1,672,893 492,059 25,000 731,570 2,265,216 4,291,192 4,878,991 2,538,918 40,000 9,460

36,394,620

34,721,835

37,860,034

2,122,512

2,399,113

2,093,092

502,686

440,041

519,809

2,625,199

2,839,154

2,612,901

49,784,926

50,335,989

57,824,889

Own spent on objectives from The Netherlands Preparation and coordination Netherlands Education and Awareness raising Netherlands

Projects spent through consortium partners If and when ZOA is the lead partner in a consortium, ZOA has certain legal responsibilities for such a consortium as a whole and is obliged to report the full consortium income as well as expenses. Therefore, the amounts for consortia shown in the income above appear here as expenses. Spent on objectives in countries The figures for spent on objectives in countries show a decrease of € 1.5 million or 4% from € 37.9 million in 2015 to € 36.4 million in 2016. This decrease is a mix of increasing and decreasing country programme volumes.

The budget of ZOA is drawn up in September and is based on contract portfolio and opportunities known at that time. During the financial year ZOA is dependent on the situation in the country, government approvals and approval of donors to start programme activities. The implication is that projects start later or with lower budget than initially planned. However, in 2016 the budgeted total amount spent on objectives of € 34.7 million has been overreached by actual expenditure of € 36.4 million. Assets needed for a specific project and fully subsidised by the donor are represented as projectexpenditures.

Preparation and coordination from the Netherlands PREPARATION AND COORDINATION NETHERLANDS Preparation and coordination cost Netherlands RECON coordination costs DRA coordination costs ARC coordination costs Protracted crisis coordination costs MFS-2 coordination costs

Preparation and coordination from the Netherlands include the costs of the Programme Department as well as the

Actual 2016

Budget 2016

Actual 2015

1,933,965

2,280,317

1,577,419

99,905 69,131 11,406 8,105 -

103,796 15,000 -

98,385 11,154 406,136

2,122,512

2,399,113

2,093,093

Audit & Evaluation department. Partly included are costs of the unit Finance and Administration.

Chapter 11

Education and awareness raising 27 Education and awareness raising is one of the statutory objectives of ZOA. Costs include the costs for education and raising Spent on fundraising

awareness of the general public, children at schools and of ZOA constituents in particular. Expenditure in 2016 was in line with 2015 at € 0.5 million.

SPENT ON FUNDRAISING Expenses own fundraising * Expenses participation in external campaings

Actual 2016 1,419,914 33,663

Budget 2016 1,385,408 10,348

Actual 2015 1,487,599 60,315

Expenses raising project grants Total spent on fundraising **

382,201

434,419

286,334

1,835,778

1,830,175

1,834,248

Total income own fundraising

9,245,958

9,000,000

11,060,765

15,4%

13,4%

Expenses own fundraising * in percentage of own fundraising income (CBF%) Total spend on fundraising ** in percentage of total income excl, consortia

4,5%

4,7%

3,9%

Management and administration from The Netherlands MANAGEMENT AND ADMINISTRATION FROM THE NETHERLANDS Total costs management and administration Total costs man. and admin. in percentage of total costs excl. consortia

Based on ZOA’s specific operations and the resulting managerial and administrative responsibilities, the Executive Board has set the standard for management and administration costs at 4.0%. In 2016, actual costs are 3.4%, 15% below the standard.

Actual 2016

Budget 2016

Actual 2015

1,441,369

1,229,389

1,248,418

3,4%

3,0%

2,9%

(internal) management and organisation, paid in or from the Netherlands, which cannot directly be allocated to objectives or fundraising. These costs include a percentage of several cost categories as shown in the table ‘Cost allocation to management and administration’.

Costs of management and administration are the costs the organisation incurs for Cost allocation to management and administration

For 2016, the cost rate of fundraising (the ‘CBF-percentage’) increased to 15.4% (2015: 13.4% and 2014: 17.5%). With the same level of expenditure, less income out of own fundraising activities

was realised, thus leading to a increase in the percentage. Costs for raising project grants refer to the Institutional Relations unit that assists countries to obtain institutional donor grants.

COST ALLOCATION TO MANAGEMENT AND ADMINISTRATION

Explanation

Allocation only from ZOA Netherlands departments Department Finance & ICT - building and depreciation

pro rata

Department Finance & ICT - unit Finance Netherlands and IT

100

Department Finance & ICT - other

Department Fundraising and Communication

pro rata

Department Human Resources

pro rata

Department Executive Board and management support

100

Supervisory Board

100

Percentage for 2016 was 19% based on budget

Other 50% allocated to preparation and coordination This part is allocated for corporate communciation Percentage for 2016 was 19% based on budget

Chapter 11 79

Chapter 11

Attribution of costs Own

Fundraising Third Parties

Subsidies

Management and administration

Total 2016

Budget 2016

Total 2015

1,756,249 27,945 301,305 37,014

695,700 550,636 10,738 148,617 14,223

8,687 24,500 132 169 175

247,823 121,423 3,530 4,749 4,675

1,036,986 10,727 258,993 120,456 14,208

26,242,136 13,857,589 696,559 57,393 735,959 120,456 586,875

25,111,507 13,195,136 660,000 71,641 882,919 62,350 637,000

28,329,420 12,881,724 645,977 81,888 975,428 86,995 554,170

502,686

2,122,512

1,419,914

33,663

382,201

1,441,369

42,296,966

40,620,553

43,555,602

10,765,107

12,775,000

17,351,953

502,686

2,122,512

1,419,914

33,663

382,201

1,441,369

53,062,074

60,907,555

ATTRIBUTION OF COSTS 2016

Country programmes

Education

Coordination

Own programmes/ projects Personnel costs Direct costs Accommodation costs Office costs and other general costs Audit Costs and Annual Report Depreciation and interest

26,066,101 9,817,663 510,856

176,035 294,480 4,322 22,126 5,724

36,394,621

10,765,107

47,159,727

TOTAL ZOA

Project spent through consortium partners TOTAL INCLUDING CONSORTIUM PARTNERS

Costs are allocated to the prescribed categories: Objectives, Fundraising costs and Management and administration costs according to the ‘Recommendation application of RJ 650 for costs management and administration’ of Goede Doelen Nederland, the Dutch branch organisation for fund raising institutions. Costs have been allocated according to the following criteria: A) Spent on objectives in programmes in countries The € 36.4 million is the total expenditure in the ZOA countries, related to direct project costs including personnel costs of posted fieldworkers and the office

expenses on location. The expenditure is directly related to the implementation of the projects in countries (outside the Netherlands). Costs of ZOA offices in countries are fully accounted for under this objective. B) Spent on objectives in/from the Netherlands Costs that are directly attributable to the implementation of the objectives or that contain a statutory objective of ZOA: • The direct costs relating to education and awareness raising for € 0.5 million, which is a statutory ZOA objective. • The preparation and coordination costs from the Netherlands for € 2.1 million. These costs contain mainly the

costs of the Programme department, unit Finance Support to countries and a proportion of costs of other departments. C) Direct costs of own Fundraising This contains the total costs of raising projects grants and third party campaigns for together € 1.8 million. D) Costs allocable to Management & Administration Expenditure in the departments in the Netherlands that cannot be directly allocated to either objectives or fundraising. These expenditures for in total € 1.4 million consist of so-called mixed costs that are allocated to

Management and Administration for a specific percentage per department. These percentages have been established based on prudency criteria (number of work places, deployment of staff, etc.) and according to consistent policy.

Chapter 11 81

Remuneration Supervisory Board and Executive Board REMUNERATION EXECUTIVE BOARD

Chief Executive Officer

Chief Programmes Officer

Interim Chief Executive Officer

Name Position Hours / week PT-percentage Period

Actual 2015

J. Mooij

A.J. van Wessel

D.J. Vermeer

permanent 40 100% 1/1 - 31/8

permanent 40 100% 1/11 - 31/12

ad interim 40 100% 25/5 - 31/12

63,100 41,676 5,048 5,258 115,082

11,819 0 946 985 13,750

73,200 0 0 0 73,200

148,119 41,676 5,994 6,243 202,032

92,690 0 7,415 7,724 107,829

5,566 9,999

1,011 927

0 0

6,578 10,925

8,588 14,716

130,647

15,688

73,200

219,535

131,133

Gross salary Transition fee Vacation bonus End-of-year bonus Total gross salary / renumeration Social premiums Pension premiums

ZOAâ&#x20AC;&#x2122;s Supervisory Board members receive no remuneration. They receive reimbursement for expenses on actual cost basis. The remuneration of the Board of Directors has been set guided

Actual 2016

by the BSD-scales for CEOâ&#x20AC;&#x2122;s of Goede Doelen Nederland, the Dutch fundraising institutions association. Based on their responsibilities and the scope of the work, the CEO and CPO belong in scale I and H.

This salary is well below the maximum of the respective scales. In 2016 the Board of Directors of ZOA changed from one director to a board of a Chief Executive Officer (CEO) and a Chief Programme Officer (CPO).

During this transition an interim director temporarily filled the position of CEO. The legal mandatory VAT (21%) is not included in his remuneration. A new CEO will join the Board of Directors as of May 2017.

Number of staff As per 31 December 2016 ZOA employed 887 people based on headcount (2015: 883). This increase of 9 is a mixture of increased and decreased country programme volumes as some programmes near phase-out and others grow from start-up to maturity phase.

Appropriation of results The result has been appropriated according to the breakdown indicated in the Statement of Income and Expenditures.

Remuneration external auditor REMUNERATION EXTERNAL AUDITOR Consolidated financial accounts Other audit assignments Fiscal advisory services Other non audit services

Other audit assignments are project audits that cannot be allocated to specific project budgets in countries. In countries, (local) project audit costs are charged

Actual 2016

Actual 2015

79,150 24,200 -

54,804 18,682 -

103,350

73,486

to project or country budgets and are subsequently represented as programme costs in these financial statements; these are not included in the table above.

Chapter 11

INDEPENDENT AUDITOR’S REPORT

To: the supervisory board and the chief executive officer of Stichting ZOA

REPORT ON THE FINANCIAL STATEMENTS 2016

Independence

our audit of the financial statements or other-

intends to liquidate the foundation or to cease

We are independent of Stichting ZOA in accor-

wise, we have considered whether the other

operations, or has no realistic alternative but to

dance with the ‘Verordening inzake de onafhan-

information contains material misstatements.

do so. Management should disclose events and

Our opinion

kelijkheid van accountants bij assuranceopdracht-

In our opinion the accompanying financial state-

en’ (ViO) and other relevant independence

By performing our procedures, we comply with

on the foundation’s ability to continue as a going

ments give a true and fair view of the financial

requirements in the Netherlands. Furthermore, we

the requirements of the Dutch Standard 720.

concern in the financial statements.

position of Stichting ZOA as at 31 December

have complied with the ‘Verordening gedrags- en

The scope of such procedures was substan-

2016, and of its result for the year then ended

beroepsregels accountants’ (VGBA).

tially less than the scope of those performed in

The supervisory board is responsible for oversee-

our audit of the financial statements.

ing the foundation’s financial reporting process.

in accordance with the Guideline for annual re-

circumstances that may cast significant doubt

porting 650 ‘Charity organisations’ of the Dutch

We believe that the audit evidence we have

Accounting Standards Board.

obtained is sufficient and appropriate to provide

Management is responsible for the preparation

a basis for our opinion.

of the other information, including the executive

Our responsibilities for the audit of the financial statements

report pursuant to the Guideline for annual re-

Our responsibility is to plan and perform an

porting 650 ‘Charity organisations’ of the Dutch

audit engagement in a manner that allows us to

Accounting Standards Board.

obtain sufficient and appropriate audit evidence

What we have audited We have audited the accompanying financial statements 2016 of Stichting ZOA, Apeldoorn (‘the foundation’).

REPORT ON THE OTHER INFORMATION INCLUDED IN THE ANNUAL REPORT In addition to the financial statements and our auditor’s report thereon, the annual report con-

The financial statements comprise:

tains other information that consists of:

•• the balance sheet as at 31 December 2016;

•• introduction;

•• the statement of income and expenditure for

•• ZOA’s context;

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT

to provide a basis for our opinion. Our audit opinion aims to provide reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assur-

•• executive report;

Responsibilities of management and the supervisory board for the financial statements

•• supervisory board;

Management is responsible for:

detect all misstatements. Misstatements may

accounting policies and other explanatory

•• partnerships and networks;

•• the preparation and fair presentation of the

arise due to fraud or error. They are considered

information.

•• organisation;

financial statements in accordance with the

to be material if, individually or in the aggregate,

•• an integrated approach;

Guideline for annual reporting 650 ‘Charity

they could reasonably be expected to influence

The financial reporting framework that has been

•• fundraising and communication;

organisations’ of the Dutch Accounting Stan-

the economic decisions of users taken on the

applied in the preparation of the financial state-

•• ZOA worldwide;

dards Board; and for

basis of the financial statements.

ments is the Guideline for annual reporting 650

•• disaster response.

the year then ended; •• the notes, comprising a summary of the

‘Charity organisations’ of the Dutch Accounting Standards Board.

The basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards

ance is a high but not absolute level of assurance which makes it possible that we may not

•• such internal control as management determines is necessary to enable the preparation of the

Materiality affects the nature, timing and extent

Based on the procedures performed as set out

financial statements that are free from material

of our audit procedures and the evaluation of the

below, we conclude that the other information:

misstatement, whether due to fraud or error.

effect of identified misstatements on our opinion.

As part of the preparation of the financial state-

A more detailed description of our responsibili-

ments, management is responsible for assessing

ties is set out in the appendix to our report.

•• is consistent with the financial statements and does not contain material misstatements; •• contains all information that is required by the

on Auditing. Our responsibilities under those

Guideline for annual reporting 650 ‘Charity organi-

the foundation’s ability to continue as a going

standards are further described in the section

sations’ of the Dutch Accounting Standards Board.

concern. Based on the financial reporting frame-

Utrecht, 30 June 2017

work mentioned, management should prepare

PricewaterhouseCoopers Accountants N.V.

‘Our responsibilities for the audit of the financial statements’ of our report.

We have read the other information. Based on

the financial statements using the going-concern

our knowledge and understanding obtained in

basis of accounting unless management either

Original signed by W.A. van Ginkel RA

APPENDIX TO OUR AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS 2016 OF STICHTING ZOA NOG INVOEGEN

In addition to what is included in our auditor’s re-

•• Evaluating the appropriateness of account-

port we have further set out in this appendix our

ing policies used and the reasonableness of

responsibilities for the audit of the financial state-

accounting estimates and related disclosures

ments and explained what an audit involves.

made by management. •• Concluding on the appropriateness of man-

The auditor’s responsibilities for the audit of the financial statements

agement’s use of the going concern basis of

We have exercised professional judgement

obtained, concluding whether a material

and have maintained professional scepticism

uncertainty exists related to events and/or

throughout the audit in accordance with Dutch

conditions that may cast significant doubt

Standards on Auditing, ethical requirements

on the foundation’s ability to continue as a

and independence requirements. Our objec-

going concern. If we conclude that a material

tives are to obtain reasonable assurance about

uncertainty exists, we are required to draw

whether the financial statements as a whole are

attention in our auditor’s report to the related

free from material misstatement, whether due

disclosures in the financial statements or, if

to fraud or error. Our audit consisted, among

such disclosures are inadequate, to modify

other things of the following:

our opinion. Our conclusions are based on

•• Identifying and assessing the risks of material

the audit evidence obtained up to the date of

accounting, and based on the audit evidence

misstatement of the financial statements,

our auditor’s report and are made in the con-

whether due to fraud or error, designing and

text of our opinion on the financial statements

performing audit procedures responsive to

as a whole. However, future events or condi-

those risks, and obtaining audit evidence

tions may cause the foundation to cease to

that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting

continue as a going concern. •• Evaluating the overall presentation, structure

a material misstatement resulting from fraud

and content of the financial statements,

is higher than for one resulting from error, as

including the disclosures, and evaluating

fraud may involve collusion, forgery, inten-

whether the financial statements represent

tional omissions, misrepresentations, or the

the underlying transactions and events in a

intentional override of internal control.

manner that achieves fair presentation.

•• Obtaining an understanding of internal control relevant to the audit in order to design

We communicate with the supervisory board

audit procedures that are appropriate in the

regarding, among other matters, the planned

circumstances, but not for the purpose of

scope and timing of the audit and significant audit

expressing an opinion on the effectiveness of

findings, including any significant deficiencies in

the foundation’s internal control.

internal control that we identify during our audit.

Chapter 11

11.11 ANNEX A - LONG RANGE OVERVIEW AND ESTIMATES INDICATORS

Actual 2012

Actual 2013

Actual 2014

Actual 2015

Actual 2016

Budget 2017

Estimate 2018

Estimate 2019

Number of programme countries Volume per country

12 2,475

12 2,397

12 2,320

12 3,120

12 2,388

14 2,071

14 2,350

14 2,529

Percentage income non-Project Grants

25%

28%

27%

25%

Norm cost percentage own fundraising (CBF) Norm cost percentage total fundraising Norm costs of management and administration

17% 5% 3%

17% 5% 4%

16% 5% 4%

13% 4% 3%

15% 4% 3%

16% 4% 3%

15% 4% 3%

14% 4% 3%

8,696

9,507

9,596

11,680

10,151

10,125

11,000

12,000

8,092 25,729

8,227 25,870

8,074 26,260

17,352 34,667

10,765 30,035

11,730 29,545

11,500 32,400

11,500 34,900

516

137

983

414

100

42,517

44,120

44,067

64,682

51,365

51,495

55,000

58,500

32,773 8,092

31,607 8,227

30,387 8,074

17,352 40,473

10,765 39,020

11,730 37,529

11,500 39,300

11,500 42,750

1,190 300

1,549 279

1,467 326

1,488 347

1,420 416

1,495 376

1,400 400

1,450 400

TOTAL EXPENDITURES

1,211 43,566

1,233 42,895

1,062 41,316

1,248 60,908

1,441 53,062

1,440 52,570

1,400 54,000

1,400 57,500

SURPLUS/-DEFICIT

-1,049

1,225

2,751

3,774

-1,697

-1,075

1,000

-985 -64 -1,049

1,116 109 1,225

737 2,015 2,752

2,771 1,003 3,774

-1,374 -323 -1,697

-545 -530 -1,075

500 500 1,000

92% 172%

91% 176%

91% 185%

93% 266%

92% 200%

93% 200%

INCOME (X â&#x201A;Ź 1,000) Income own fundraising and participation in third party campaigns Project grants Project grants for consortia partners From institutional donors Other income TOTAL INCOME

EXPENDITURE Total spent on objectives Project grants to consortia partners Own spending on objectives Spent on own fundraising Expenses own fundraising Expenses other fundraising Management and administration

INDICATORS Programme funds Continuity and allocated reserves TOTAL CHANGE IN RESERVES AND FUNDS

OTHER INDICATORS Percentage spent on objectives Liquidity ratio

ZOA has determined the financial indicators that define the quality of a country programme. This revealed that an optimal country programme amounts to approximately â&#x201A;Ź 3.5 million and has 3 to 4 senior staff members for programme and general management. A country programme of this scale is able to operate effectively and is able to accommodate setbacks without compromising the leverage of the organisation. ZOA aims to have every country programme at this level. This principle is the basis for the multiyear projection. The number of countries where ZOA aims to operate combined with the cost ratios deemed acceptable by the Executive Board, help to determine the multi-year ambition.

Chapter 11 85

11.12 ANNEX B - BUDGET 2017 INCOME Income own fundraising activities Door to door collection Legacies Contribution, donations, gifts Income from third party campaigns Project Grants Project grants for consortia partners From institutional donors Interest Rate differences and other income TOTAL INCOME

EXPENDITURES Spent on objectives Spent on Objectives in Countries Project grants to consortia partners Own spending on objectives

Budget 2017 850,000 300,000 8,075,000

Actual 2016 858,842 212,099 8,175,017

Actual 2015 845,303 1,027,835 9,187,627

9,225,000

9,245,958

11,060,765

900,000

905,188

619,666

11,730,000 29,545,388

10,765,107 30,034,994

17,351,953 34,666,488

41,275,388

40,800,101

52,018,441

95,000

67,006

137,092

346,912

845,786

51,495,388

51,122,961

64,681,750

Actual 2016

Actual 2015

11,730,000 34,328,231 46,058,231

10,765,107 36,394,620 47,159,727

17,351,953 37,860,034 55,211,987

2,702,969

2,122,512

2,093,093

497,969

502,686

519,809

49,259,169

49,784,926

57,824,889

1,494,591 10,787 365,713

1,419,914 33,663 382,201

1,487,599 60,315 286,334

1,871,091

1,835,778

1,834,248

1,439,999

1,441,369

1,248,418

TOTAL EXPENDITURES

52,570,259

53,062,073

60,907,555

SURPLUS/-DEFICIT

-1,074,871

-1,696,908

3,774,195

Education/Awareness raising Total spent on objectives Spent on fundraising Expenses own fundraising Expenses participation in external campaigns Expenses received project grants Management and Administration

Budget 2017

Actual 2016

Actual 2015

-545,082

-1,374,251

2,770,590

-137,248

314,995

467,798

-224,046

-14,394

-70,731

-219,785

222,414

-812

-1,391

-207,979

-129,648

674,427

Pre-financing projects

Financing assets

-197,566

-180,869

Programme financing

-197,566

-180,869

-321,810

4,557

510,047

-1,074,871

-1,696,908

3,774,195

Future project spending Allocated reserves Future project spending: Country programme reserves Programme development & innovation

Budget 2017

Preparation and Coordination from the Netherlands

ADDED TO/WITHDRAWN FROM Programme Funds

Disaster Response Other Financing- and risk reserves:

Continuity reserves Added to general continuity reserve TOTAL CHANGE IN RESERVES AND FUNDS

A peace agreement in South Sudan Amidst the context of conflict, we were part of a peace agreement in South Sudan, between Jonglei and Boma States, on 4 December 2016. It began with peace committees at Boma level, established in the course of our reconstruction projects. The efforts of the committees were a very practical success, namely coming to agreement on substantially lowering the dowries, which was a major cause for theft, conflict and violence. These practical successes at Boma level resulted in the setting up of peace committees at higher governmental levels, even up to state level. The Governor of Jonglei and the Governor of Boma State requested ZOA and United Nations Mission in South Sudan (UNMISS) to facilitate the peace negotiations and the signing of the agreement between the two states. Subsequently, UNDP asked us to form a strategic partnership for promoting peace in South Sudan. Update 2017: The governor for Pibor was replaced months after signing the peace agreement. The new leadership does not seem to be as committed to the peace process and the implementation of the resolutions from the peace agreement, as the old leadership was. That is a great disappointment for our team in South Sudan and illustrates the fragility of our work.

The cover photo is xxxmade in Maiduguri, Nigeria, where ZOA has been working since the summer of 2016, made by Jilke Tanis, ZOA

Colophon

ÂŠ 2017 2016 ZOA P.O. Box 4130 7320 AC Apeldoorn The Netherlands T +31 (0)55 36 63 339 F +31 (0)55 36 68 799 E info@zoa.nl

Supervisory Board Dr. ir. H. Paul MPA, chairman Drs. B. Brand MPA MCM Drs.A.J.Bouw, Mr. Kamphorst RA MPA Mr. B.J. Drs. J. Kamphorst van Putten, LL.M Mrs. Drs. J.J.A. Olij - Haak Chief Mr. B.J.Executive van Putten,Officer LL.M J. Mooij MBA Executive Board INGLukkien C. account - Chief number Executive (for transfers Officerin The Netherlands): NL46 A. vanINGB Wessel 0000 - Chief 0005 Programme 50 Officer ING account ZOA is registered number with(for thetransfers Chamberinof The Commerce Netherlands): under number: 41009723 NL46 INGB 0000 0005 50 ZOA is registered with the Chamber of Commerce under number: 41009723

Text XxxSytsma / Communica. Finance chapter: Bertil Moraal. Els With regards to Hetty Vonk. Photography Xxx Photography Jaco Klamer: p9, p42-43 | Margreet Noordhoff: p30, P69 | Wilma Vlug, Design p70 | Liesbeth IDD concept.communicatie.creatie Verduijn, p76 | other pictures: ZOA I www.idd.nu or private collections Printed idd.nu Design by drukkerij De Bunschoter Printed The information by drukkerij in this report De Bunschoter may be reproduced (exluding the photos), provided ZOA is notified and this Annual Report is acknowledged as the source, The information ZOAinwould this report like tomay receive be reproduced a copy of the (exluding publication. the photos), provided ZOA is notified and this Annual Report is acknowledged as the source, ZOA would like to receive a copy of the publication.

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