ZOA Annual Report 2017 by ZOA

Annual Annual Report Report2017 2017

Contents

1. Introduction

2. ZOA’s context

3. Executive Report

10. Disaster Response 50

11. Financial Report 53

Supervisory Board 10 Organisation 12 Partnerships and Networks 14 An Integrated Approach 17 Fundraising and Communication 20 ZOA Worldwide 23 7

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 2018 85

Afghanistan

24 Burundi 26 DR Congo 28 Ethiopia 30 Iraq 32 Liberia 34 Myanmar (through CDN) 36 South Sudan 38 Sri Lanka 40 Sudan 42 Syrian Response 44 Uganda 46 Yemen 48

The stories

“I lost 90% of my livestock” - Abdirahman Hassan Aden 4 A new start for Selam - Selam from Eritrea 9 Refugee and farmer trainer - Samuel Yokwe 22 When everything slips away - Bella Shar 86

1 Introduction Every day we are driven by ZOA’s mandate to provide relief, hope and recovery to victims of armed conflict and natural disasters. The number of people in need is enormous and the needs can be overwhelming. However, rooted in our Christian identity, we respond to our diaconal mandate in a very practical way, by supporting some of the most vulnerable. The conflicts in Iraq and Syria have caused many people to flee to Europe. These refugees are now living among us. Anyone who has spoken with a refugee has probably become aware of the contrast between their lives and ours. We live in peace and prosperity; they have lost everything and are often traumatized. Those who flee to Europe are just a small percentage of the world’s refugees. By far the most (more than 98% percent) stay in the region, in countries like Jordan, Lebanon, and Uganda. These countries carry the heavy burden of hosting huge numbers of refugees, whilst having to deal with their own internal challenges at the same time. This should make us even more willing to support the host countries in the region that take in so many refugees.

Impact on thousands of families

mechanisation. Through these activities, thousands of people experience greater food security and higher incomes, thus giving them access to other opportunities such as better education for their children. Talking about impact! Through our interventions, we contribute to breaking the cycle of poverty and violence. At local and regional level we enable citizens and governments to work together, committed to making steps towards lasting peace and stability. In the Democratic Republic of Congo, for instance, we are working with groups who participate in psycho-socio therapy. In mixed groups of old, young, men, women and from different tribes, people meet to improve mutual understanding and trust. Their feedback is very positive. Some groups have even started small savings schemes together. In doing so, social cohesion is built at grassroots level and directly impacts people’s lives. As ZOA we work in often challenging circumstances, but we are committed to providing relief, hope, and recovery to those who need our assistance. This is what we have done in 2017 with the help of our committed staff, generous donors and supporters, and loyal partners. With your help and under God’s blessing, that is what we will continue to do in 2018!

It is especially motivating to see that by providing relief and recovery we enable people to pick up their lives and to give them hope again. A good example is our Integrated Water Resources Management project in Sudan, that will provide an estimated 600,000 people with more secure access to water. Or also those Farmer Groups in Gedaref, (also Sudan), who reported a fivefold increase of their harvest through seed improvement, crop diversification and

Chris Lukkien Chief Executive Officer

Arco van Wessel Chief Programme Officer

“I lost 90% of my livestock”

- Abdirahman Hassan Aden In 2017 a severe famine hit the east of Africa and Yemen. ZOA started a disaster response to help the affected population. ZOA supported 1500 households in the northeast of Ethiopia to keep their livestock alive. Abdirahman was one of the affected farmers. Abdirahman Hassan Aden (64) was the proud owner of 220 goats and sheep. At the time our team visited him, in the summer of 2017, he had only 18 animals left. All of the other sheep and goats had died due to the drought. This tragedy had a huge impact on Abdirahman and his family. His children no longer drank milk, some of them were malnourished. After 90% of his livestock had died, Abdirahman and his family tried to survive by collecting dry sticks and selling these in the city, 25 kilometers away. But the lack of water was a daily problem, the well was almost empty and the little available water was contaminated. “Our family is suffering a lot, there is no milk and no food,” Abdirahman told the team. During the emergency response in Dolo Ado, ZOA deployed three water trucks with 10,000 litre capacity each in five selected sites. 57,600 sachets of water purification chemicals were distributed to 640 households. To ensure proper storage, ZOA distributed jerry cans to 320 households. We also provided veterinary drugs and distributed donkey carts. Due to the provision of livestock feed approximately 5,000 heads of livestock could be saved. Save the Children reported that malnutrition in these communities had been reduced due to access to milk for children, pregnant and lactating women.

Chapter 2

2 ZOA’s context Global developments

ZOA’s mission

Due to ZOA’s mandate to support those suffering from violent conflict and natural disaster, our working environment is naturally challenging. The increasing numbers of uprooted people worldwide and the threat of violence aimed at aid workers cause an increasingly challenging working environment.

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.

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 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

• • • • • • • •

Tripled volume of lifesaving assistance in Yemen compared to 2016 (see chapter 3 and page 48). Lifesaving emergency relief to victims of Boko Haram in Nigeria (see chapter 10). The start of an Integrated Water Resources Management programme in Darfur, Sudan, aimed at improved access to water for over 250,000 people, with ZOA in the lead of the Aqua4Darfur consortium of seven organisations (see page 43). The support provided in response to the arrival of 600,000 returnees in Nangarhar, Afghanistan (see page 25). Creation of a mature country programme in Iraq with a registration in Baghdad, starting up programmes in Mosul immediately after its liberation from IS (see page 32). Recognition of the socio-therapy approach by external donors in Liberia, which enabled expansion of the programme (see page 34). The well-functioning 850 all-female Self Help Groups in Sri Lanka, that play such an important role in boosting self-confidence and self-esteem, as well as access to small credits for starting up livelihood initiatives (see page 41). The heart-warming response among our constituency to the fundraising campaign for emergency relief in Yemen and East Africa. The campaign income rose above 1 million Euros (see chapter 8).

Chapter 3

3 Executive Report There is a person behind every statistic. A family, a child, an elderly person behind every number. Whenever we use descriptive terms such as target groups, beneficiaries or victims of violent conflict and natural disaster – we are talking about real people, individuals with their own ambitions and dreams. But these are also people that are severely impacted by conflict or natural disasters. It is ZOA’s privilege to support them, enable them to pick up their lives again and to help them regain confidence. ZOA has grown over the past years, not only in terms of budget, donors, countries and beneficiaries, but also professionally. We are proud that donors continue to see us as a reliable partner. Yet, at the heart of our work remains our concern for people and our desire to see them flourish again.

Programmatic developments One of the main programmatic developments in the year 2017 has been the disaggregation of our Middle East Regional programme. Up to last year, the programmes in Iraq, Yemen and Syria were managed from our office in Amman. However, these programmes have grown in the past few years, and the time had come to separate them into individual country programmes. That was a complex process involving financial, programmatic and personnel

components. By the end of the year, we have successfully created fully independent operational programmes in Yemen and Iraq, whereas our Syrian Response continues to be managed from Amman. The situation in Yemen has deteriorated further. Increased fighting and the outbreak of a cholera epidemic resulted in ever-growing needs in the country. Despite resulting insecurity and limited access issues, ZOA has managed to increase its programme and to reach out to many in need. The efforts of our team, working in difficult circumstances, is exemplary for what we see across ZOA. We are immensely proud and touched by the commitment of our staff and their dedication to serve those in need. Our emergency relief programme in Nigeria continued to grow in 2017. Numbers vary, but reports consistently mention well over 1.5 million displaced persons who are afraid to go home and in need of support. Likewise, ZOA supported people affected by the famine in East Africa. ZOA also responded to the flooding in South Asia and continued its support for the Rohingyas in Myanmar. ZOA’s strategy period 2015 - 2018 is approaching its last year. One of the key strategic areas mentioned in the plan was

the importance of land rights in fragile environments. Land security is a key condition for peacebuilding, livelihoods and food security. Our expertise in this area is more and more recognised by donors and land rights are increasingly becoming an integral part of our programmes.

such large and complex projects but are conscious of the organisational responsibilities and risks that come with that. Ultimately, projects like these allow us to reach out to larger groups of people and make a lasting difference.

A similar development occurred in the area of socio-therapy. Initially started in Liberia with encouraging results, it has now been rolled out successfully to other ZOA countries, notably the Democratic Republic of Congo and Iraq. Donors have also recognised ZOA’s expertise in this area.

Despite the fragile and insecure areas ZOA is working in, no security incidents occurred this year that would have required the Crisis Management Team to convene. We are tremendously grateful for that but are acutely aware of the challenging environment in which many of our staff have to operate every day.

Our projects are becoming increasingly complex as we try to address interconnected problems. For example, the Integrated Water Resources Management (IWRM) programme in Sudan extends far beyond the drilling-of-wells approach of many years back. Among other the programme includes diversification of livelihood strategies, training on rainwater catchment, peacebuilding components and capacity building of local governments. All of this is being implemented through a consortium involving several international and local partners, of which ZOA is the lead. We are honoured by the trust of our donors, allowing us to implement

Organisational developments

ZOA experienced a smooth transition in leadership. The interim Chief Executive Officer was replaced by an Executive Board of two members. We are grateful for how Derk Vermeer, as interim CEO, led ZOA for nearly a full year. The leadership team in ZOA Netherlands has also changed substantially, with the appointment of a new head of Finance and IT and a new head of the Programme Development and Support Department. The Audit and Evaluation department was dissolved as a stand-alone department and the audit and evaluation tasks were transferred to the Finance Department and the Programme Development and Support Department.

Chapter 3

Throughout 2017, ZOA chaired the Dutch Relief Alliance (DRA), both the DRACommittee and the Board of Directors. It was a crucial year for the DRA, since it was the final year of the first funding period. Much time and energy was spent in developing a strategic plan for the DRA. Following several rounds of consultation and amendments, the plan was approved. The DRA received further funding from the Dutch Government and acknowledgement that the DRA is an important and effective instrument for providing humanitarian relief. The start of ZOA Germany in 2017, with an office in Bonn, is an exciting new development and paves the way for connecting with institutional donors in our neighbouring country. This development is a direct practical result of our strategy whereby we seek to diversify and broaden our institutional donor base. One of the hardest organisational challenges is finding experienced and capable staff to work in fragile, complex, and often insecure areas. In countries like Yemen or Afghanistan, not all key management positions were filled on time. One way we sought to address this was by recruiting more expats from other countries. For example, seven of the thirteen Country Directors (including the Disaster Response Director) now come from other countries than the Netherlands. As a result ZOA is becoming

increasingly international, as we embrace new cultures, backgrounds, and expertise, whilst maintaining our Christian identity.

Constituency Though the organisation observed slight growth from 34 to 36 thousand individual donors in 2017, the trend over the past few years has seen a steady modest decline. At the same time, the average gift continues to grow. We are grateful for the generous and faithful support we receive, but also recognise that donor expectations are changing. Generally, people expect higher levels of engagement, and more feedback regarding how their donations are being used to bring relief, hope and recovery. In light of that, a start was made with the development of a new strategic plan aimed at increasing the connection and involvement with our constituency. The plan will be completed and rolled out in 2018.

fraud is to be reported to ZOA Netherlands and can be done anonymously. ZOA has the practice of dealing with this promptly (zero tolerance approach) and reports fraud to the donor in a transparent manner. Strategy Limited access to our target groups can threaten the implementation of our work, which is a result of our choice to work in fragile contexts. We mitigate the risk by building good relationships and cooperation with governments, local partners, and by participating in country networks of similar (international) organisations, to keep us well informed and provide us with appropriate platforms for claiming access.

ZOA works in complex and insecure environments. Safety and security of our staff is of utmost importance and ZOA continues to review and invest in its security measures, policies and training.

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 to mitigate the risk.

ZOA has a well-developed management and control system in place. This is augmented by regularly auditing both the financial and the programmatic side of our work. ZOA also devotes specific attention to the prevention and detection of fraud and corruption. Suspicion or detection of

Finance The risk of funding shortage is mitigated by investing in donor diversification. thus reducing dependency on too few donors. Our 23 percent of own funding also makes us resilient for sudden funding setbacks and enables us to pre-finance projects.

Risk and risk mitigation

Financial reporting and compliance 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 have built up specific donor knowledge and support the country offices in complying with specific donor requirements.

2018 and beyond We will develop our new strategic plan for 2019 and beyond, building on our expertise and experiences from the current strategy period. Reflecting on the current strategy period, we can already conclude that we will continue to develop peace-building as a sector within our programmes. We will also continue to grow and strengthen our emergency relief capacity. The focus on urban refugees, however, is not yet embedded in the organisation as much as we had anticipated. We will review this issue again, and consider how to respond to the needs we see in this area.

A new start for Selam Selam fled from Eritrea to Ethiopia one year ago. During the first six months she lived in a refugee camp near the border and the last half year in Shire town in the north of Ethiopia. She tells about her life in Eritrea, where the army forced her to work as a soldier. She did not receive any salary for two years. “It was such hard work. We had to carry heavy guns all day and it was never safe for us girls. Luckily, I was never harassed by male soldiers, but some girls were. I decided to take a chance and flee across the border, together with an other soldier. It took us five days. We travelled mostly by night. I have never been as scared as during those days. I was so afraid we would be caught and killed or beaten.” But, Selam did manage to reach Ethiopia safely. With support from relatives abroad she now rents a small place in Shire town where she lives by herself. Her hope was to learn a skill so she could earn some money. Through social work she heard about the vocational training offered by ZOA on food preparation. She has started her training and really enjoys it. When she is finished she hopes to find work in a restaurant. “Of course, I would like to join my relatives abroad but I have made new friends here in Shire as well. Maybe I will stay here if I find a job.”

4 Supervisory Board Being part of the ZOA organisation makes us proud. The organisation consists of nearly 1,000 professional staff, who all go the extra mile to support victims of conflict and disaster. Therefore we want to start by giving thanks to everyone who was part of ZOA in 2017. Staff, donors, volunteers: together we were able to make a difference in the lives of many.

Approval of Annual Report 2017 As Supervisory Board, we have the formal responsibility to approve the annual budget and the Annual Report. The results of the external audit process were positive and revealed no major weakness in the organisation and the risk management system. We were able to ascertain that income was spent effectively and efficiently, according to the approved budget. In view hereof the Annual Report 2017, including the financial statements as prepared by the Executive Board, was approved as submitted in a meeting on 19 June 2018.

Report 2017 Appointments In 2017 we said farewell to interim CEO Derk Vermeer, who headed the organisation for a period of nearly one year. He did so in a transitional period of ZOA going from one CEO to a two-headed Executive Board, which was necessary

because of ZOAâ&#x20AC;&#x2122;s growth in recent years. The Supervisory Board is grateful for his efforts and his performance. In May, Chris Lukkien started as the new Chief Executive Officer. Together with Arco van Wessel, appointed November 2016 as Chief Programme Officer, he forms the Executive Board, responsible for executive decisions and daily management. We are very pleased with the smooth transition in leadership. A first reflection on the expansion of the Executive Board is definitely positive. Professionalization of supervision The Supervisory Board is responsible for appointing and assessing the Executive Board, the supervision of the policies and plans of ZOA and for monitoring the identity of the organisation. In the last few years the Supervisory Board has taken a leap in professionalization to meet current standards of supervision. Full attention is given to the necessary competences in selection of new members. A next step of the professionalization process started in 2017, to review and update all governance documents and regulations. This process is expected to last to the end of 2018. Audit Committee The Audit committee discussed subjects such as the Annual Report, the audit plan, audit execution and observations, annual

budget, treasury policy, plans to improve IT-systems, and the planning and control structure. The Audit Committee reported to the general meeting of the Supervisory Board, advising positively about the approval of the Annual Report 2016 and the budget for 2018. Remuneration Committee The Remuneration Committee evaluated the functioning of the members of the Executive Board and its salaries. The Remuneration Committee reported its findings to the general meeting of the Supervisory Board and advised on salaries of the Executive Board members. 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 code1. Programmatic issues 2017 The Board advises and assists the Executive Board in determining an appropriate course of action in line with ZOAâ&#x20AC;&#x2122;s statutory obligations. One of the choices made in 2017 was to start working in Boko Haram affected regions in Nigeria, evolving the relief programme into a regular country

programme towards 2018. Another organisational choice was to split the Middle Eastern Regional office into separate country offices: Iraq, Jordan and Yemen. These are all complex programmes and need full attention. In several country programmes, Disaster Response has become an integral part of the regular programming. The added value of a specific Disaster Response team and its relationship with ongoing country programmes was discussed. We are very pleased to observe that ZOA is seen as a respected partner by institutional donors, and is heading several consortia. However, to keep up with the growth of institutional funding, growth of private funding is necessary. It is an ongoing concern to expand our constituency base and thus ensure stability and growth in the nearby future.

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 and on the specific competences needed at that time, such as financial experience, organisational skills and knowledge of foreign affairs and donors.

Chapter 4 11

Mr. H. Paul MPA • Function on the Supervisory Board: Chair, Remuneration Committee • Period of service: 2010 - 2019 (2nd period) • Professional function: Quartermaster Secretary General at the Ministry of Agriculture, Nature, and Food Quality

At the end of 2017, we said goodbye to Mr. Jan van Putten, who has given of his time, energy and knowledge since 2011. We express our gratitude for his efforts and commitment. Per January 2018 we welcomed Mr. Jan Hendrik Dronkers as a new member.

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

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.

Mr. J. Kamphorst • Function on the Supervisory Board: Audit Committee and vice-chair • Period of service: 2012 - 2021 (2nd period) • Professional function: Interim manager and organisational advisor

Blessing ZOA was present in many places where people suffered, lost loved ones, homes and so much more. We pray that God blesses our staff and donors and gives them strength to continue their important and beautiful work.

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 Group

On behalf of the Supervisory Board, Harry Paul Chairperson

Mr. Ing. Jan Hendrik Dronkers • Function on the Supervisory Board: member • Period of service: 2018 – 2022 • Professional function: Director-General Aviation and Maritime Affairs and Loco-Secretary-General of the ministry of Infrastructure and Water management.

See chapter 11, page 81

Chapter 6

5 Organisation Organisational structure ZOA’s programmes are for a large part implemented by our own staff, based in-country. Each country organisation has its own management team, headed by the country director. The teams operate largely autonomously, however, they have to achieve agreed results, to align with an agreed organisational strategy and to comply with an annual planning and review cycle. On the one hand this structure provides the teams with flexibility to operate within the context of the country and in good cooperation and complementary with the authorities and other NGOs. On the other hand, we make sure that country teams receive support from ZOA Netherlands for cohesion and continuity, quality control, exchange of knowledge, financial management, fundraising and staff recruitment. A major operation during 2017 was the disaggregation of the office in Jordan serving the ‘Middle Eastern Region’ into three separate country organisations: Iraq (based in Erbil), Yemen (based in Sana’a) and the Syrian Response (based in Amman, Jordan). We were especially thrilled that it became possible to work directly from Sana’a. The country directors report directly to the Executive Board. This was the first year

ZOA functioned with two members on the Executive Board, because there were too many direct reports for a single director. Rather than creating an extra layer of management, it was decided to appoint a Chief Programme Officer next to the Chief Executive Officer. This works very well, the line of command and decision making remained fast and effective. The International Management Team consists of all Country Directors, the management team of ZOA Netherlands, the director of the Disaster Response Team and the Executive Board. They meet twice annually during the Interregional Meetings in March and October, to exchange knowledge, discuss policies, share best practices, and discuss annual planning and reporting. Staff ZOA had 802 staff worldwide (headcount 31 December 2017), of whom 71 at ZOA Netherlands. Volunteers Voluntary commitments come in various forms: from volunteering during an event (35 in 2017), teaching at schools (14) to organising the door-to-door collection (597). We also have volunteers working at the office on a regular basis (11). An external accountant did an unpaid audit in one of

our programme countries. ZOA’s voluntary trainee position offers recent graduates the opportunity to gain working experience in the humanitarian sector for one year, at the office in the Netherlands (1) or in one of the programme countries (7).

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 several codes of conduct and standards, among other: • Code of Conduct for the International Red Cross and Red Crescent Movement and NGOs in Disaster Relief; • Core Humanitarian Standard on Quality and Accountability; • SBF-code (Samenwerkende Brancheorganisaties Filantropie), a Good Governance Code for Charities; • The Goede Doelen Nederland (Charities Netherlands) 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.

Chapter 6 13

The Works Council The Works Council represents ZOA staff members with a Dutch employment contract and members of the management teams in the programme countries. The Works Council has the right to be informed on issues concerning the organisation,

approves staff policies and proactively advises the Executive Board. The Works Council consists of five members, employed in both the Netherlands and in programme countries.

Organisational chart Supervisory Board

Chief Executive Officer

Chief Programme Officer

Country Director

Programme Development & Support

Management Support

Institutional Relations

Disaster Response Team

Fundraising & Communications

Human Resources

Burundi

DR Congo

Afghanistan

Ethiopia

Iraq

Myanmar

Liberia

Sudan

Sri Lanka

Syrian Response

Uganda

Yemen

Finance & ICT

South Sudan

Chapter 5

6 Partnerships and Networks Working in conflict and disaster areas is complex. As ZOA we cannot, and do not want to achieve our objectives on our own. We are always looking for complementarity, and we greatly value our donors and our implementing and strategic partners. We cooperate with other NGOs wherever possible, sharing knowledge and experience on implementation and security, lobbying among policymakers, raising awareness among the public, soliciting for funds and complementing each other in the implementation of programmes. Working through consortia enables us to work more efficiently and ultimately to support more beneficiaries.

Sudan: Aqua4East and Aqua4Darfur

During 2017, highlights in cooperation were:

The Dutch Relief Alliance (DRA), established in 2015, is a unique coalition of sixteen Dutch aid organisations, funded by the Dutch Ministry of Foreign Affairs. The DRA was established to meet the current challenges in the humanitarian sector. Improved cooperation and coordination between NGOs enables them to better respond to major humanitarian crises. In 2017, ZOA acted as chair of the DRA Committee, and led the process of developing a new strategy for the DRA 2018-2021. In 2017 we participated in Joint Responses in Syria (leading the consortium since 2015), Northern Iraq, South Sudan and Yemen, and in the Acute

Addressing Root Causes Within the programme Addressing Root Causes of Conflict and Irregular Migration, funded by the Dutch Ministry of Foreign Affairs, ZOA is the lead of several consortia in which participating NGOs complement each other to aim for strong and resilient communities. For example, in DR Congo we cooperate with War Child and VNG International, focusing on non-violent conflict solutions, good governance, improved livelihoods and access to basic services for youth.

In Sudan, ZOA leads two large partnerships. Six organisations work together in Aqua4East, to implement ‘Water for Three States’, funded by UK Aid for 12 million pounds and the EU for 6 million Euros. Seven organisations cooperate in the consortium Aqua4Darfur, to implement the ‘Sustain Darfur’programme. This programme is also funded by UK Aid for 18 million pounds. It is an exciting challenge to work with many partners in a wide geographical area, and extremely motivating knowing that ZOA can support up to 600,000 people in Sudan with improved access to water.

Dutch Relief Alliance

Crisis Joint Responses in Afghanistan, Somalia and Nigeria.

Integral Alliance ZOA is a member of Integral Alliance, 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. In 2017 several Integral partners supported our programmes: World Renew in Nigeria, Transform Aid International in South Sudan and Yemen, Tearfund UK in Yemen, Tearfund New Zealand in Uganda, and TEAR Australia in Ethiopia and South Sudan. ZOA supported the following Integral partners financially to implement relief programmes: World Relief Germany in Somaliland, Tearfund UK in Bangladesh (the Rohingya crisis), and Mission East and World Renew in Nepal (South Asia flooding).

EU-CORD Established in 1997, EU-CORD celebrated its 20th year. 22 Christian Organisations in Relief and Development from European countries together work towards shared objectives; to form supportive professional relationships; to access EC funding and to influence EU policy. For ZOA, EU-CORD creates a

platform to meet with potential partners to form consortia, share knowledge and sometimes to receive funding for emergency relief. ZOA’s new CEO Chris Lukkien joined the Administrative Council.

Humanitarian Knowledge Exchange ZOA was involved in the establishment of KUNO, a Humanitarian Knowledge Exchange Center in The Hague, which became operational in January 2017. KUNO is an initiative of ten NGOs, five knowledge institutes and the Dutch Ministry of Foreign Affairs and contributes to improved knowledge that leads to improved humanitarian action.

Netherlands Water Partnership In 2017, ZOA became a member of this public-private partnership of some 200 companies, NGOs, knowledge institutes and government. The members of the partnership work together to offer sustainable, multifunctional water solutions for people, planet and profit worldwide.

Chapter 5 15

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 • Humanitarian Knowledge Exchange - Expertise Center for Humanitarian Assistance - Co-founder • Stichting Collecteplan - Member

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

Partnerships • Dutch Relief Alliance - Cooperation of Dutch NGOs in humanitarian action. • Christian Emergency Relief Cluster Cooperation between Dutch Christian aid organisations Dorcas, Tear, Red een Kind, Woord en Daad and ZOA. • 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. • Netherlands Water Partnership - member.

Chapter 7 17

7 An Integrated Approach The number of major violent conflicts has tripled since 2010, and fighting in a growing number of lower intensity conflicts has escalated. Conflicts also last longer. While in 1970 the average duration of a conflict was 9.6 years, the conflicts that ended in 2014 had lasted on average 26 years1. ZOA works in many of the countries that have seen conflict for multiple years. Often these countries alternate episodes of relative peace with periods of violent outbursts. The instability of year-long conflicts have often resulted in fragile states, where authorities lack legitimacy and representation, and cannot ensure basic services, rule of law and justice, where civil society has limited capacity and humanitarian space is limited.

serve and build sound knowledge of, and sensitivity to the specific context, culture and dynamics between the actors present. We often partner with local organisations and where appropriate with (local) government institutions. We can strengthen the capacities at local level, while at the same time learning from their insights and experiences.

• 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

Positive change at community level

We work 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:

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:

Mandate

• 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 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.

Our mandate to the people we serve is providing both relief and (early) recovery in fragile states. 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 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 1

Pathways to Peace

• 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 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.

• Sustainable access to basic services and resources It is crucial for living dignified and resilient lives to have access to basic services and resources, like access to water, education, shelter and food. 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 can make a significant contribution. • Good community governance States affected by fragility generally lack governance structures at all levels. Good governance is essential in ensuring that the voices of all are heard in decision making and to hold decision makers accountable. When supporting communities to realize dignified and resilient lives, ZOA strives to ensure good community governance through our work in the five sectors.

Our sectors A range of interventions in various sectors can be applied to achieve the three goals. 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.

Chapter 7

Food security and Livelihoods Households seek various ways of generating income as a means for providing for their needs. We focus on four main areas: generation of income, market support, agricultural production and conditions for rural and urban economic development.

Water, sanitation and hygiene Safe water, access to latrines and appropriate hygiene practises are of primary importance for living healthy and dignified lives. 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 Peace is not only the absence of personal and direct violence, but also the presence of justice, social cohesion and mutual acceptance. By applying a conflict transformation approach, we aim to transform attitudes, behaviour and (local) causes of conflict. Within the peacebuilding sector we also work on securing land rights for the most vulnerable, since documentation of land rights is essential for sustainable peacebuilding in many contexts, and for improvement of the livelihoods and social conditions of people.

Shelter In situations where people need a roof over their heads, ZOA may engage in shelter support. That is often the case during emergencies, especially in the first six months. Where appropriate and needed, ZOA will distribute shelter material and support in building shelters.

Basic education Literacy and numeracy are important preconditions for community governance and economic development. We focus on basic education, both formal and informal, which includes primary education, lower secondary education, functional adult literacy and numeracy, and vocational training.

Developments 2017 Within the choices for the sectors as set forth above, we increased emphasis on land tenure systems and land rights. A specific peacebuilding policy was developed, as well as a land rights strategy. In line with international developments, we conducted a self-assessment for the Core Humanitarian Standard, which was submitted to the CHS Alliance. We also continued to be engaged in internal and external discussions around the Grand Bargain and the impact that will have on

how we operate as an international NGO. Also in line with international developments, ZOA implements cash programming whenever feasible, preferably unconditional and unrestricted. This allows beneficiaries to make their own choices based on needs and it contributes to the dignity of people.

Sustainability Climate change and the depletion of natural resources often play a negative role in social and economic relations and are one of the causes of conflict. It is precisely the poorest people in fragile countries that are most affected by the consequences of climate change. During 2017 a policy was developed looking at ZOA’s internal processes and business operations, making the fundamental choice to organize business operations in such a manner that there is no harmful effect on climate during the implementation of ZOA’s projects, while at the same time promoting the wellbeing of employees.

Awareness Raising One of ZOA’s statutory objectives is to raise awareness in Europe about the situation of refugees. More specifically our goal is to touch the hearts and minds of people in the Netherlands and provide them with opportunities to become involved: by volunteering, praying and/or donating.

In March, 99 primary schools participated in the annual ‘Walking for Water’. About 6,500 children were taught about the importance of clean water and ZOA’s work in Liberia. The participating children walked a distance, while carrying bottles of water, so to experience what children in other countries experience daily. They were sponsored by relatives and friends for this effort, and raised the fantastic amount of 171,947 Euros for drinking water projects in Liberia. In May, ZOA launched ‘Prachtvrouwen’ (Gorgeous women): a concept to connect women in the Netherlands with women in fragile contexts on the basis of equality. We developed a special women’s-edition of the ZOA-magazine and a Bible study magazine on themes that relate to women worldwide. In total 475 of these magazines were ordered, enabling Dutch women to study the Bible ‘together’ with women from Uganda and South Sudan who gave their input on video. With a donation of at least 30 Euros, women received a ‘Prachtvrouwen’-bag, which raised over 67,000 Euros for projects for women in DR Congo, Afghanistan and Sri Lanka. During the simulation event ‘On the Run’ in September, 38 participants experienced different aspects of the life of a refugee in an urban setting during an eight hour period. It proved to be more difficult than expected to

find participants. However, those who did participate were highly motivated. They were sponsored by friends and family. Several companies also sponsored the event. Afterwards, participants mentioned that they became aware of the situations of urban refugees and were moved by what refugees have to endure. In awareness raising activities like these, ZOA facilitates an ongoing and sustainable connection between our constituency and those we serve.

8 Fundraising and Communication A strong connection with our donors is of crucial importance for our work. It is not ‘only’ money that we receive from them, in essence it is the obligation to support victims of disaster and conflict on their behalf. We are grateful for the trust given to ZOA and proud to partner with our donors. ZOA receives funding through various channels: private donors, companies, trusts, foundations, and institutional donors. That means we have a broad platform of support, allowing us to be flexible and responsive. However, it also sets us the challenge to maintain the right balance between the various funding channels. In 2017 we started developing a new fundraising strategy in combination with smart IT-solutions aimed at optimising our processes and serving both our donors and our beneficiaries in the best possible way. The needs remain undiminishedly high. ZOA is grateful for its donors. Together with them we will continue our support to victims of natural disaster and violent conflict in 2018.

Institutional donors We have highly valued and long-term connections with the Dutch government and other governments, international foundations and several United Nations agencies such as UNHCR, OCHA, WFP

and UNICEF. To prevent dependency on too few donors, we devote extra attention to broadening our institutional donor base. In 2017, the Swedish International Development Cooperation Agency (SIDA) adopted one of our projects. The British Department for International Development (DfID) also increasingly chooses to work with ZOA as its implementing partner. We are grateful to see growth, both in income and in numbers of donors. At the close of 2017, a record percentage of 92 percent of budgeted income was already approved for the year 2018. We wholeheartedly cooperate in fundraising and knowledge sharing efforts with likeminded organisations, such as CNC (Christelijk Noodhulpcluster) in the Netherlands, EU-CORD in Europe and Integral (worldwide). For more information, see chapter 6. Since 2013 we see a substantial annual rise in income from foundations, from 1.0 million Euros in 2013 to 2.7 million Euros in 2017. Not only have the number of foundations involved with ZOA increased, we also see that several of them support more than one project. It is a positive result of the specific focus to serve these foundations with a tailor-made approach

through which they in turn can fulfil their aims to support our beneficiaries. These (family) foundations and capital funds are valued partners and of great importance in achieving our mission.

Third Parties Another funding channel is the so called ‘third parties’. These are external fundraising organisations such as Deputaatschap Bijzondere Noden Gereformeerde Gemeenten, Diakonaat Christelijk Gereformeerde Kerken and EO Metterdaad. We are incredibly thankful for their efforts and commitment, often already over a period of many years. One of these third parties, DEL (Draagt Elkanders Lasten), organised a special campaign named ‘One, two, tree’ for education in Amudat, Uganda, to celebrate that religion-based education was signed into Dutch law one hundred years ago.

Private donors ZOA has a steady supporters base, that increased from 34,000 to around 36,000 in 2017. Early in the year an amazing number of 99 schools participated in a fundraising Walk for Water-event, with around 6,500 children enthusiastically raising a total of 171,947 Euros for water projects in Liberia. In the same period, nearly 600 volunteers organised a nationwide door-to-door collection,

raising a total sum of 856,906 Euro. At the end of the year, we organised the fundraising campaign ‘Longing for home’, focused on people who fled their homes and have not (yet) been able to return, especially in the Middle East. This campaign received an encouraging response. We have long-term relationships with several secondary schools. Driestar College is an outstanding example; with yearly fundraising campaigns for more than twenty years the school has supported thousands and thousands of Ugandan and South Sudanese people. Every year a group of students visits ZOA projects in Uganda. This group is then involved in the preparations of their school’s fundraising campaign for the following year. A whole generation has thus grown up being actively involved with ZOA’s work. Entrepreneurs from our constituency are of specific value to our programmes. A variety of large and small scale companies showed commitment to our mission by contributing their precious (co)funding and expertise. Six ZOA Business Ambassador (ZBA) teams contribute entrepreneurial, managerial and technical knowledge as well as funds for our programmes in Burundi, DR Congo, South Sudan, Sri Lanka, Uganda and Myanmar.

Chapter 8 21

Emergency campaigns Halfway the year a severe famine threatened Yemen and East Africa. An emergency fundraising campaign received very generous support and raised nearly 1.15 million Euros for emergency relief. There was also huge response to an appeal for help for those affected by floods in South Asia: over 368,000 Euros was raised to support our response in Myanmar and Bangladesh. The latter was done through our Integral partner Tear. We are grateful that emergency funding did not result in lower income for our recovery programmes, showing the impressive faithfulness of our constituency towards our beneficiaries.

respond by telephone, because we strongly believe in the power of personal contact. We also believe that people complain because they are committed to ZOA and to what we are seeking to achieve. Explanation of a situation, swift resolution of a problem, and apologies in case of mistakes usually satisfy the concerns of the complainant. The number of complaints was significantly higher in 2017; 163 compared to around 100 in previous years. Registration of complaints has improved, which might partly explain the increase. Moreover, most of the complaints related to two specific mailings and have been addressed since.

93.2% 4,0% 2.8%

Expenses ZOA 2017 Spent on objectives: 93.2% Fundraising costs: 4.0% Costs of management and administration: 2.8%

Communication Through our website, Facebook page, mailings and magazines we reach out to people in and outside our constituency, aiming to touch their hearts and to connect them to our beneficiaries. We have four staff who are constantly ‘on the road’ to encourage and support ZOA’s volunteers, and who provide educational lessons in schools to share about ZOA’s work.

Complaints ZOA has a formal procedure for dealing with complaints. In general we will try to

23.3% 71.9%

Income ZOA 2017 0.3% 4.5%

Project grants from institutional donors*: 71,9% Income own fundraising: 23.3% Income from third party campaigns: 4.5% Other income: 0.3% * excluding project grants for consortium partners

Refugee and farmer trainer - Samuel Yokwe

“My name is Samuel Yokwe and I am a refugee from South Sudan. For the last five months though, I’ve been working with ZOA as a farmer trainer. My job is to mobilize people in my community and teach them about agricultural work. Back in South Sudan I did something similar but worked for the government. These days I’m training five groups with about 150 farmers in total. I teach them the basics of agriculture – how to space crops, conserve water, sell their products, I teach post harvesting techniques and the basics of running a business. Ultimately, ZOA wants to teach them how to establish provisions for their future. Many of the people I work with were not farmers. But as a refugee here in Uganda, being a subsistence farmer is everything. So in this camp, we are teaching them how to produce food for themselves. Because of this programme, people are able to eat a balanced diet with vegetables. We’ve also trained them on using energy cooking stoves because the huge influx of refugees have interfered with the availability of forest products. My goal is that by the end of the project, 75% of them would have some sort of enterprise for themselves. I think that’s an achievable target if people are supported. We are constantly evaluating how things are going, and we know they can and will obtain better circumstances.”

9 ZOA Worldwide

Syrian Response Sudan Liberia

Iraq

Yemen

Afghanistan

Myanmar

Nigeria South Sudan DR Congo

Ethiopia Uganda Burundi

Sri Lanka

Chapter 9

ZOA Afghanistan

since 2000

Programme areas Jawzjan Sar-e Pul Kabul

Nangarhar

• Northern Afghanistan: Jawzjan and Sar-e Pul provinces • Central Afghanistan: Kabul area and Nangarhar province • Southern Afghanistan: Uruzgan and Zabul

Target groups

Uruzgan Zabul Pakistan

• Returnees, internally displaced persons and host populations.

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 2017 € 3,274,830

Number of staff as of 31 December 2013 233 2014 174 2015 68 2016 132 2017 98

“I feel stronger, I feel proud. Now I am bringing in some money, my husband respects me more than before.” (Participant Self Help Group)

Chapter 9 25

Continuing support in precarious environments

he situation in Afghanistan is precarious and constantly changing. Ongoing insecurity limits access to project locations. These developments are hard to predict, and make it difficult to anticipate the needs. At the end of 2016, the province of Nangarhar was confronted with approx. 600,000 people returning from Pakistan. During 2017 also thousands of people within the province became displaced due to fighting between several armed groups and government troops. These numbers put pressure on the natural hospitality of the host population and the capacity of basic services. ZOA was able to support communities with 136 water wells, funded by the Dutch Relief Alliance. Of course schools were also confronted with an influx of pupils. ZOA built new classrooms and constructed 35 of the wells near the schools, combined with latrines. School children received hygiene lessons, and proudly some told ZOA-staff they were called ‘the doctor’ by their parents, because they were sharing their knowledge at home. We also developed peace education for school children on non-violent

conflict resolution. It is too early to measure the impact, but it would be wonderful if they take these lessons home as well. In the other programme areas, ZOA continued its activities despite everyday security challenges. We work closely together with the local Community Development Councils, and ZOA’s contribution is highly appreciated. One of the striking results in 2017 was that 72 villages (the complete district of Balkhab) were officially announced open defecation free after applying the Community Led Total Sanitation approach. In Kabul and Sheberghan some 150 Self Help Groups for women meet weekly to save money, arrange loans for income generating activities and to discuss social issues such as hygiene and nutrition. The women are now contributing to the family income, which gains them more respect from their husbands. Though progress comes in small steps, these groups certainly are signs of hope in this difficult setting.

With funding from Dutch Ministry of Foreign Affairs, Afghan Ministry of Rural Rehabilitation and Development (MRRD), USAID, UNOCHA, Unicef, NEPA, DOB Emergency, JM Bogmanfonds, ZOA the Netherlands.

In cooperation with SHPOUL, Sanayee Development Organisation, Dutch Relief Alliance-partners, Community Development Councils.

Chapter 9

ZOA Burundi

since 2010

Programme areas • Cibitoke, Makamba, Rumonge

Target groups

Cibitoke DR Congo

Bujumbura

• Conflict and natural disaster affected populations in remote areas, especially small holder farmers, youth, vulnerable households and primary schools.

Rumonge 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 2017 € 2,687,281

Number of staff as of 31 December 2013 21 2014 35 2015 32 2016 49 2017 41

“Before, we never had enough. Now I cultivate three seasons and sell the surplus!” Julienne, participant in the PAPAB-project, widow and mother of three children, of whom one is disabled.

Chapter 9 27

Surviving in chronic crisis situation

urundi is experiencing a chronic crisis. The political situation remains tense, with a devastating impact on the economy. Climate change results in disturbed agricultural seasons, influencing the availability of drinking water which in turn mean occasional outbreaks of cholera. The high population density causes scarcity of land, leading to land conflicts. Through our integrated approach we support vulnerable people who are struggling to survive. ZOA continued to implement two land certification projects in four districts of Makamba, funded by the Dutch Embassy and USAID. As part of the PAPAB-consortium, together with the International Fertilizer Development Center (IFDC), Alterra and Oxfam Novib, we trained more than 10,000 farmers to increase agricultural production. Together with the land certification projects, this provides improvement in the food security situation for many families. In Rumonge we constructed a storage barn in each of the four PAPAB villages, providing safe and quality conservation of agricultural production of

the small holder farmers. The establishment of 332 Village Saving and Loan Associations in 2017 alone (with 2,657 members) greatly contributes to access to loans. In Cibitoke we saw several projects enforcing each other: in one project, houses were built for vulnerable returnees who were selected by peace committees established during a previous project, and constructed by youth from different political parties who were engaged in a peace-building project to encourage collaboration. In Burambi commune (Rumonge) and Makamba and Nyanza Lac communes (Makamba) the targeted communities have contributed significantly to the construction/ protection of natural springs. We were able to finish 15 sources in Burambi and 36 in Makamba, providing clean drinking water to often very remote areas. WASH facilities in schools, our training on menstrual hygiene and the distribution of reusable sanitary pads contributed to better access to education for teenage girls.

With funding from Dutch Ministry of Foreign Affairs, Royal Dutch Embassy, European Commission, USAID, Tearfund UK, World Food Programme, The Waterloo Foundation, ZOA the Netherlands, ZOA Business Ambassadors.

In cooperation with Réseau Burundi 2000+, MIPAREC, SaCoDé.

Chapter 9

ZOA

Democratic Republic of

Congo

since 2008

Programme areas • Northern part of the province of South Kivu: Minova and the Hauts Plateaux de Kalehe • Southern part of the province of South Kivu: Luberizi in the Ruzizi Valley, Rubanga, Fizi

South Kivu Kinshasa

• Minova and the Hauts Plateaux: vulnerable youth and farming communities • Luberizi: farmers and pastoralists of Barundi and Bafulero tribes • Rubanga: child mothers and vulnerable young women • Fizi: 960 children aged 10 – 16 in an accelerated education programme

Angola

Sectors

Food Security and Livelihoods

Peacebuilding

Target groups

Expenditures

Basic education

2013 € 2,987,476 2014 € 2,890,723 2015 € 3,731,241 2016 € 1,914,866 2017 € 1,679,929

Number of staff as of 31 December 2013 62 2014 54 2015 60 2016 18 2017 35

Chapter 9 29

From land security to peace

he security situation in the Democratic Republic of Congo deteriorated during the year due to delayed presidential elections. In the Kivu provinces conflicts between tribes and between armed groups cause on-going insecurity. Combined with tight funding, bad roads and difficulties in finding suitable staff, providing relief and recovery to victims of the conflicts is an everyday challenge. It was disappointing that almost all of the programme work in North Kivu had to close due to lack of funding, while the humanitarian needs have increased due to increased violence. On the other hand, we were delighted to open an office in Bukavu, and to sign the contracts for Integrated Water Resources Management (IWRM) in Luberizi – in a consortium with IRC (lead) and Search for Common Ground - and Addressing Root Causes (ARC) in Minova and Kalehe - in a consortium with ZOA as the lead and War Child and VNG International as partners. The overall objective of the IWRM-programme in Luberizi is peace building between two tribes. ZOA is focusing on rehabilitation

of irrigation schemes, land rights, and agricultural development. Search for Common Ground implements peace building activities and IRC focuses on improving access to drinking water. The two competing tribal chiefs in the project are now collaborating, thus benefiting both communities. In Minova and Kalehe the ARC consortium also designed a complementary programme. War Child focuses on economic activities for young people, ZOA aims at farmers for agricultural activities and land rights and supports social cohesion and recovery with community based social therapy, and VNG International is focussing on strengthening local authority leadership capacity. In Fizi we completed our three year accelerated education programme for children between 10 and 16 years. 272 children completed primary school education and 205 passed their state exams in 2017. In Rubanga we support vulnerable young women, many of whom became mothers while still teenagers. Vocational training and support provides them with income, hope and dignity.

With funding from Dutch Ministry of Foreign Affairs, DFATD Canada, Folke Bernadotte Academy, Starec, EO Metterdaad, Turing Foundation, Johanna Donk-Grote Stichting, ZOA the Netherlands.

In cooperation with South Kivu. Fizi: DIE (Division de l’education), DEO, l’inspection de l’enseignement primaire; Bukavu: APC, AFEM, UEFA; Beni: ACPDI.

Chapter 9

ZOA Ethiopia

since 1993

Programme areas • Gambella Regional State (field office in Mattar and Gambella Town) • Somali Regional State (field office in Dolo Ado) • Tigray Regional State (field office in Shire and in Hitsats refugee camp)

Shire

Addis Ababa

Target groups

Gambella

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

Dollo Ado Somalia Kenya

Sectors

Food Security and Livelihoods

Basic education

Expenditures

WASH

2013 € 2,318,448 2014 € 2,855,403 2015 € 4,322,674 2016 € 5,324,549 2017 € 2,364,111

Number of staff as of 31 December 2013 92 2014 103 2015 133 2016 155 2017 89

“I hope to find a job in a restaurant. Maybe then I will stay here” Selam from Eritrea, participant vocational training Shire

Chapter 9 31

Suffering because of violent conflict and drought

OA Ethiopia works with IDPs, host populations, returnees, and a large population of refugees who fled a lethal combination of violence and drought in Somalia, South Sudan and Eritrea. At the same time, the Ethiopian population is often deprived of proper basic services. The country has been confronted with internal conflicts resulting in a state of emergency for a number of months. ZOA has actively been participating in the debate with the Ethiopian government and the UNHCR on the acceptance and application of the Comprehensive Refugee Reference Framework in Ethiopia. Parts of ZOA’s approach have been made part of that policy, such as expanding out-of-camp policy and increasing work opportunities for refugees. In line with this approach, ZOA Ethiopia participates in three large consortia that started in 2017 to support young people who are at risk for irregular migration: the five year

programme ‘Addressing Root Causes’, funded by the Dutch Ministry of Foreign Affairs, and two three-year Regional Development and Protection Programmes, funded by the European Union; one in urban settings and one focusing on Dolo Ado and surroundings. The influx of South Sudanese refugees in Gambella rose to 428,000 by December 2017. Now there are more refugees in the region than there is host population, putting enormous pressure on the latter. We successfully supported the host communities of Akobo and Wanthoa, despite the difficult accessibility of the area. Almost one million people have been displaced due to conflict between Oromo and Somali. Their needs are great and we are preparing to start working with them in the course of 2018. The drought in east and south Ethiopia continues. We provided emergency relief through water trucking, livestock feeding, distribution of jerrycans, water purification tablets and donkey charts, thereby supporting over 1,000 households.

With funding from Dutch Ministry of Foreign Affairs, Royal Dutch Embassy, European Commission, Tearfund Australia, Global Affairs Canada, IOM, EO Metterdaad, ZOA the Netherlands.

In cooperation with Norwegian Refugee Council; Danish Refugee Council; DRA-partners; several government partners such as the Regional Justice Bureau and the Water Bureau; IOM, UNOCHA, DPPFSA, IDURUS.

Chapter 9

ZOA Iraq

since 2014

Programme areas • Erbil, Sulaymaniyah and Ninewah governorates including Mosul city

Mosul Erbil

Target groups

Bagdad

• Internally displaced persons, refugees, non-displaced people, returnees

Sectors

Food Security and Livelihoods

Expenditures

WASH

2014 € 2,855,403* 2015 € 4,322,674* 2016 € 5,324,549* 2017 € 3,428,455

Number of staff as of 31 December Shelter

Peacebuilding

Basic education

2014 103* 2015 133* 2016 155* 2017 21 *accumulated numbers for the Middle Eastern Regional office

“I come from West Mosul, and our house is completely destroyed. My daughter was scared of any little sound, but she is changing in the Center. They do a lot of games, all these kids are so loud together! She is not scared anymore when we come home – she feels safe.” Zeena, participating in the Safe Space programme with her daughter.

Chapter 9 33

Water, Food, Shelter and Safe Spaces

uring 2017, the operation to retake Mosul and other ISIS-controlled areas led to a significant increase in the number of IDPs. Although the number of displaced people is slowly decreasing as many are returning to their homes, they face significant challenges. Often their houses have been damaged or destroyed and their livelihoods cannot easily be secured once returned. Throughout 2017 ZOA Iraq focused on projects for IDPs and returnees, targeting increased food security, access to safe water, rehabilitation of water structures and shelter repair. Additionally, ZOA Iraq implemented an emergency education project for Syrian refugee and IDP children, and established a number of Safe Spaces for women and children in Mosul city. Recreational activities and catch-up education for children are organised in these Safe Spaces. In addition, children as well as their mothers receive psycho-social support as required.

Dutch Relief Alliance, Iraq Joint Response, on providing access to clean drinking water, safe water storage and increased knowledge on hygiene to people in towns previously occupied by ISIS. Another highlight was the provision of conditional cash-vouchers for Non-Food Items and shelter repair items to families in East Mosul. By providing vouchers, ZOA guaranteed a level of dignity and self-determination to the beneficiaries in purchasing items for their specific needs within a sectoral restriction. Through ZOA’s projects in 2017, the most needy and vulnerable people affected by the violent conflicts were given relief and hope for the future.

Highlights in ZOA’s work during 2017 included a project which was part of the

With funding from Dutch Ministry of Foreign Affairs, ECHO, Europe-Aid, USAID, UNOCHA, UNHCR, Unicef, DFID-UK, World Food Programme, FIDA, Hulp Bijzondere noden, DOB Emergency, Woord & Daad, Red een Kind, ZOA the Netherlands.

In cooperation with Dutch Relief Alliance partners, CAPNI, JORD, IID, EADE, CNSF.

Chapter 9

ZOA Liberia

since 2003

Programme area Sierra Leone

• Western Liberia

Target groups

Western Liberia

Ivory Coast

Monrovia

Sectors

Food Security and Livelihoods

Peacebuilding

Conflict and Ebola affected communities, more specifically: • Smallholder farmers and households recovering from the Ebola epidemic; • Rural and urban schools and communities lacking clean water; • Densely populated slums in Monrovia and rural areas; • Unemployed youth in rural and urban areas.

Expenditures

WASH

2013 € 1,179,310 2014 € 1,396,391 2015 € 3,304,363 2016 € 1,254,180 2017 € 1,241,579

Number of staff as of 31 December 2013 23 2014 29 2015 41 2016 35 2017 14

Chapter 9 35

“I learned to forgive.” (A participant of one of the socio-therapy groups.)

Alongside vulnerable communities

iberia remains a post-conflict, fragile state, with society fractured along ethnic lines, by faith, political allegiances, generation and gender. Whilst there have been steps forward, most Liberians continue to live in conditions of extreme poverty. In 2017, ZOA worked alongside people of the most vulnerable communities. Our experience shows that growth in agriculture generates the greatest improvements for the poorest people. ZOA’s approach involves intensive training of project participants, with follow up coaching and mentoring. That means that farmers continue to reap the benefits from year to year in a sustainable manner. Our ground-breaking work helping cassava farmers to sell more and to process new cassava products came to a very positive conclusion in 2017. This successful approach has been recognised by the European Union and ZOA is now beginning a similar project with EU funding to assist 3,000 more farmers to produce, process and sell cassava, plantain, pineapple, legumes and

moringa. In this project ZOA works directly with smallholder farmers, small enterprises, and the Government of Liberia. The project is complemented by establishing Village Savings and Loans Associations. With support from Aqua for All and UNICEF, in 2017, ZOA’s WASH programme was busier than ever, drilling 47 boreholes, bringing clean water to both urban and rural communities, along with education on hygiene, sanitation and how to maintain the hand-pumps. ZOA’s peacebuilding project in the slums of West Point and Kakata, using the methodology of community based sociotherapy, has been a great success. The project supported the participants, many of whom suffered terrible trauma and loss during the war, to achieve reconciliation with each other, and to be peace builders in their own communities. This was recognised by visitors from the Swedish Government, who are now funding expansion of the programme to eight locations in five counties, reaching over 12,000 participants.

With funding from European Commission, SIDA, YEP, Aqua for All, Turing Foundation, Hofstee Stichting, ZOA the Netherlands, ZOA Business Ambassadors

In cooperation with National Cassava Sector Coordinating Committee (NCSCC), SHIFSD, YMCA.

Chapter 9

ZOA-CDN Myanmar

since 2008

Programme areas India

• South East Myanmar: Kayin and Bago States • West Myanmar: Rakhine State

Target groups Naypyidaw Rakhine

Southeast Myanmar

Sectors

Food Security and Livelihoods

• South East Myanmar: IDPs, IDP returnees, host households and other people affected by natural disasters • Rakhine: Conflict affected IDPs residing in camps in Sittwe Township; vulnerable and conflict affected Muslim and Rakhine communities in Kyauktaw Township.

Expenditures WASH

2013 € 920,564 2014 € 580,342 2015 € 1,672,893 2016 € 1,153,129 2017 € 1,962,053

Number of staff as of 31 December 2013 2 2014 3 2015 50 2016 66 2017 71

Chapter 9 37

Supporting victims of disaster and violent conflict

DN (Consortium of Dutch NGOs: Red een Kind and ZOA) operates in two very different programme areas, where people have been horribly affected by violence, conflict and displacement. We work in a conflict sensitive manner to ensure that the work does not exacerbate conflict and instead promotes peaceful coexistence.

Rakhine state has high levels of malnutrition. In Kyauktaw we started an integrated project, reaching just under 3,000 families, with CDN implementing food security and WASH activities in order to address the root causes of malnutrition in women and children.

Rakhine State

These remote programme areas have been affected by conflict for over forty years. Now, a fragile peace has been agreed and ZOA supports the people to rebuild their livelihoods, by training 276 households in agricultural production, distributing seeds and seedlings to over 2,900 farmers and establishing farmer producer groups (95 in 2017).

The north of Rakhine State faced excessive violence towards the self-identifying Rohingya, Muslim population. The Akaran Rohingya Salvation Army attacked 25 police checkpoints in August and the military operation in response resulted in 688,000 refugees fleeing into Bangladesh. Travel restrictions for INGOs in Rakhine were reason for the end of a project funded by WFP. The Muslim IDPs in Sittwe are completely dependent on INGO support. Complementary to the work of other organisations, CDN provided WASH services and distributed water filters to 6,574 individuals. After cyclone Mora we constructed hundreds of new emergency latrines in two IDP camps, preventing outbreaks of infectious diseases. Nearly 30,000 people received emergency food aid.

South East Myanmar:

Women, not familiar with growing vegetables, now started doing so with seeds and tools provided by CDN. Families are now eating more vegetables and selling surplus produce. CDN also started to work on value chain development of cardamom with the aim to increase the income of the farmers. Beneficiaries witnessed that increased income helps to pay for other necessities such as school fees and health care.

With funding from USAID, Unicef, World Food Programme, Danish Refugee Council, GIZ, LIFT, ZOA the Netherlands, ZOA Business Ambassadors.

In cooperation with Karuna Myanmar Social Services, Karen Baptist Associations: Paku, Keh Koh Keh Ba, Bwe Mo Bwa.

Chapter 9

ZOA South Sudan

since 1998

Programme areas • Greater Upper Nile Region: Bor South, Fangak, Leer, Pibor and Akobo Counties; • Greater Equatoria Region: Lainya and Terekeka Counties.

Greater Upper Nile region

Target groups • IDPs, returnee refugees 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 2017 € 3,434,164

Number of staff as of 31 December 2013 74 2014 55 2015 71 2016 58 2017 43

“Without ZOA’s support we would have moved out of our villages in search of food during the drought and we would have missed the planting season.” Beneficiary food distributions Pibor

Chapter 9 39

Integrated emergency relief

espite several international initiatives to negotiate a peace agreement, the crisis in South Sudan continues to deepen. Two million South Sudanese have fled to neighbouring countries; 1.9 million are internally displaced and over 5 million people in the country are facing major food shortages that could lead to starvation in 2018, according to the UNHCR. During the year we had to increasingly focus on integrated emergency relief. The communities appreciate our continual presence in the midst of conflict and ZOA’s response to immediate needs through food and cash distributions, provision of seeds and tools. In Lainya, ZOA became the only organisation able to deliver food to over 7,000 households that were on the brink of starvation. This was largely achieved by the close and invaluable cooperation with the bishops of Lainya and Wonduruba and the local government commissioner of Lainya in negotiating with the national and local military to obtain the necessary safe access for deliveries.

ZOA provided cash to 3,950 households in Fangak, rather than flying in food at considerable cost to these inaccessible areas. The beneficiaries spent it on necessary food and non-food items from local traders, at the same time stimulating the local economy. Three European embassies in Juba funded capacity building for 15 Civil Society Organisations in Bor County, to create sustainable and effective grass-roots organisations that know how to advocate for their communities with the government. Early recovery work continued in Bor, Pibor and Akobo, despite security issues in Pibor. The project was positively reviewed by the EU in late 2017, concluding that significant progress has been made and farmers willingly adopted project technologies such as individual grain stores, goats management and Village Savings and Loan Associations.

With funding from Dutch Ministry of Foreign Affairs, ECHO, Europe-Aid, USAID, UNDP, CIDA, DFID-UK, EO Metterdaad, Bijzondere Noden, Hulp Bijzondere noden, Alg. kas Bijzondere Noden, Woord & Daad, ZOA the Netherlands, ZOA Business Ambassadors.

In cooperation with Nile Hope, SALT, African Development Aid, Compass, TAYA, Across and DRA-partners.

Chapter 9

ZOA Sri Lanka

since 1995

Programme areas India

Northern Sri Lanka Eastern Sri Lanka Colombo

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

Target groups • Returnees, both returned IDPs and returned refugees. Especially: female headed households, farmers, fishermen, livestock farmers, vulnerable families due to disability, domestic and gender based violence or mental health issues. • Community based organisations (CBOs), such as Farmer Organisations, Fishermen Cooperative Societies, Women Rural Development Societies, Community Centres and Self Help Groups (SHGs).

Sectors Expenditures Food Security and Livelihoods

Basic education

Peacebuilding

2013 € 5,008,940 2014 € 3,790,984 2015 € 2,265,216 2016 € 1,106,427 2017 € 1,010,345

Number of staff as of 31 December 2013 177 2014 127 2015 105 2016 53 2017 49

Chapter 9 41

The long road to sustainable recovery

ight years after the civil war ended, communities in the East and North still struggle to fully participate in social and economic development. They face challenges of social exclusion, economic isolation, ethnic tensions and trauma. Meanwhile, floods and droughts are threatening food security. Our programmes are designed to maximize lasting change in the lives of beneficiaries and to build the capacity of partners, government and communities. The Self-Help Groups are a good example of this approach. End 2017, there were 850 well-functioning Self Help Groups, with an average of ten members, all female, and 180,000 euros of savings among them. Many members have started livelihood initiatives because through these SHGs they have access to loans. A EU-funded project for Capacity Building of Civil Society and Local Authorities has also had an important focus on empowering women. In response to legislation that municipal and urban councils should consist of at least 25

percent female elected members, we trained 90 women to represent their communities. Twenty of them contested in local elections (February 2018) and five were elected. It was a big step forward to representation of women, and those not elected also felt empowered to work in their communities and perhaps contest again next time. In 2017, more than 25 model farmers in a dairy project succeeded in upgrading their milk production and earn a sustainable income. In the next phase we will expand our activities aiming at 100 dairy farmers. Within the fishing communities of some 2,500 families, we have worked to break the cycle of debt that kept them in poverty. So far, 250 fishermen are now free of debt. ZOA has been present in Sri Lanka since 1995 and has been able to influence many peopleâ&#x20AC;&#x2122;s lives in a positive way. As Sri Lanka continues to develop, ZOA plans to hand over its activities by the end of 2021.

With funding from European Commission, UNHCR, CRS, Habitat for Humanity, IOM, ICCO/Kerk in actie, RV-Fonds, ZOA the Netherlands, ZOA Business Ambassadors.

In cooperation with SOND, YGRO, AHC (Shanthiham), FOSDOO, OPEnE, Viluthu.

Chapter 9

ZOA Sudan

since 2004

Programme areas • West (North, East, South and West Darfur states) • East (Red Sea, Kassala, Gedaref states)

Target groups

Chad

Darfur

Karthoum Kassala Gederaf

• Refugees, IDPs, host communities and returnees, especially farmer and pastoralist communities, youth and school children

South Sudan

Sectors

Expenditures

Food Security and Livelihoods

WASH

Peacebuilding

Basic education

2013 € 2,848,188 2014 € 2,968,305 2015 € 4,878,991 2016 € 7,923,735 2017 € 7,215,985

Number of staff as of 31 December 2013 93 2014 96 2015 106 2016 115 2017 85

Chapter 9 43

Relief and resilience

lthough tribal conflicts flared up now and then, ZOA observed an improved security situation. ZOA Sudan works on improved access to water, enhanced livelihoods, increased social cohesion and improved governance so to increase resilience, meanwhile providing relief where necessary. In 2017 we reached close to half a million people with our support. ZOA Sudan has been leading the Aqua4East and Aqua4Darfur consortia since 2015, with six and seven other organisations respectively. During 2017 we rolled out the Integrated Water Resources Management approach in three states in Darfur, an approach already successfully introduced in the East. In Galalnahal town in Gedaref, for example, some of the water infrastructure projects supported by ZOA proved to be strategic in providing water for around 50,000 persons. In the Gedaref programme area, a number of villages were greatly affected by Acute Watery Diarrhoea. ZOA assisted the villagers, handing out soap and chlorine and providing

information on hygiene. Local communities started building latrines and treating unsafe water. It was impressive to see how the project team responded so adequately to an emergency and how the emergency offered opportunities to change sanitation practices. In Galabat localities in Gedaref State small farmers produced on average fourteen 90-kilo sacks per feddan (0,42 ha), a huge increase from the average of two sacks for traditional farmers. We capacitated small farmer associations to engage with financial and insurance institutions and public and private service providers. In South Darfur state we successfully facilitated dialogues within and between communities, and supported initiatives for conflict prevention and greater livelihood opportunities, especially for youth and women. One of the challenges during the year was the influx of South Sudanese refugees in East Darfur. They managed to secure their basic food needs as a result of ZOA interventions. The same applied to IDPs in North Darfur. In North Darfur state we also support primary education in two vulnerable communities.

With funding from Dutch Ministry of Foreign Affairs, European Commission, ECHO, UNCOR, UNOPS, DFID-UK, Tearfund Australia, ZOA the Netherlands.

In cooperation with Aqua4East and Aqua4Darfur partnerships with Plan International, Practical Action, Islamic Relief Worldwide, World Relief, International Aid Services, Acacia Water, RAIN Foundation and SOS Sahel Sudan and Tewaki, Green Peace, RDN, GPWO, JAMCO, Al Massar, UMCOR, CDN.

Chapter 9

ZOA Syrian Response

since 2013

Programme areas and target groups • Syria: IDPs and host communities • Lebanon and Jordan: Refugees and vulnerable host families

Syrië Libanon

Jordanië

Sectors

Food Security and Livelihoods

Expenditures

WASH

2014 € 2,606,211* 2015 € 2,538,918* 2016 € 3,073,532* 2017 € 1,753,595

Number of staff as of 31 December Peacebuilding

Basic education

2014 95* 2015 105* 2016 105* 2017 10 *accumulated numbers for the Middle Eastern Regional office

“Now I am a real breadwinner for my family. I can afford my children’s school needs and bring home everything my family needs.” Beneficiary in Syria, participating in restart of agricultural production.

Chapter 9 45

Affected by the war in Syria Syria

Lebanon

Violence continued in many parts of Syria, leading to more displacements and leaving communities susceptible to food insecurity, health problems, lack of shelter and various protection issues. ZOA joined forces with 11 Dutch NGOs, members of the Dutch Relief Alliance, and has led the Syria Joint Response since 2015. Through ZOA’s component of the programme, a community center was established in Aleppo in 2017 which offered psycho-social support and other services to women, victims of gender based violence and trauma. Furthermore, ZOA met emergency sanitation and hygiene needs of 4,250 IDPs who fled Raqqa. ZOA provided safe places for children through the activities of Child Friendly Spaces (CFSs) and assisted 470 vulnerable households in re-starting their agricultural livelihoods. Although intermittent fighting caused interruptions in implementation in some areas, ZOA and its implementing partners reached over 41,000 people with various forms of assistance, while the DRA consortium as a whole supported almost 300,000 beneficiaries within Syria.

ZOA provided 9,100 people - Syrian refugees and vulnerable Lebanese from the host communities - with winterization assistance. In Alley, ZOA supported a summer camp which provided structured learning and play activities to the most vulnerable refugee and host community children.

Jordan ZOA continued to empower refugee women and vulnerable Jordanian women from the host communities by improving their psychosocial wellbeing, building their capacity to access different livelihood options and restoring their sense of dignity. In 2017 we reached nearly 2,150 people, which also included winterization assistance. Overall ZOA’s Community Centers have enhanced social cohesion between refugees and host communities. It is wonderful to observe children who are beginning to thrive again, enjoying the company of new friends, learning new skills and starting to be children again.

With funding from Dutch Ministry of Foreign Affairs, Red een Kind, Hulp Bijzondere Noden, DOB Emergency, Stichting Mitswah, Stichting De Pagter Fonds, ZOA the Netherlands.

In cooperation with Dutch Relief Alliance-partners, ACCTS, Merath/LSESD, IOCC/DERD, Zarqa Baptist Church/ Life Center, Dorcas/Tabitha, C&MA church Aleppo.

Chapter 9

ZOA Uganda

since 2007 Programme areas

DR Congo

West Nile

• Karamoja (Amudat), • Acholi (Nwoya, Pader, Agago), • West Nile (Rhino Camp, Imvepi, Bidi-Bidi)

Acholi Karamoja Kampala

Sectors

Target groups Kenya

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

Expenditures

Food Security and Livelihoods

WASH

Peacebuilding (land security)

Basic education

2013 € 2,643,982 2014 € 2,606,211 2015 € 2,538,918 2016 € 3,073,532 2017 € 2,938,045

Number of staff as of 31 December 2013 137 2014 95 2015 105 2016 105 2017 115

“ZOA has let me sleep again, now that my land is registered and secured.” Participant Land Security Project in Acholi.

Chapter 9 47

Relief and recovery, a challenging balance

OA Uganda has been working in two totally different settings. With former IDPs in Acholi and Amudat the focus is on recovery activities. In the West Nile region ZOA works in a refugee setting, with South Sudanese who recently – since July 2016 - fled their country and are struggling to survive, and with a host population that has to share land, water and basic services. Balancing these two different types of programming is challenging. While (inter)nationally the focus is more on the South Sudanese refugees, the recovery programmes in Acholi and Amudat deserve equal support. In West Nile opportunities arose that allowed a move from relief to medium-term support. ZOA expanded its activities to three refugee settlement areas: Rhino Camp, Imvepi and Bidi-bidi, providing refugee and host communities with WASH, primary education, livelihood and peacebuilding activities. ZOA decided to open a suboffice in Bidi-bidi, in the middle of the refugee settlement. While logistically challenging, ZOA received many

positive responses, notably from the district authorities and the host communities. In Amudat, ZOA expanded its support to more primary schools, improving access to education and WASH facilities in the region. Specific attention went to combatting the harmful tradition of female genital mutilation. We worked with farmers on enhanced-income generation by diversifying their sources of income, mainly through supporting apiary and vegetable production. In Acholi ZOA has been supporting a land registration project over the past three years. The people demarcated their land and registered it with the Minister for Land, Housing and Urban Development. Once people had their Certificate of Customary Ownership, the new future perspective gave them confidence to invest in their land, resulting in improved agricultural productivity. Other projects that ZOA is implementing in Acholi are on youth skills, paying special attention to accelerated learning and to youths with disabilities.

With funding from European Commission, ECHO, ELMA, USAID, UNHCR, UNHAB, Tearfund Belgium, Tearfund New Zealand, Diaconia Uganda, Geneva Global, NWO-WOTRO, EO Metterdaad, Draagt Elkanders Lasten, Stichting Dioraphte, Driestar, DOB Emergency, Johanna Donk-Grote Stichting, Stichting Wees een Kans, St. Pharus, Florys, Familie DK, ZOA the Netherlands, ZOA Business Ambassadors.

In cooperation with CCF, Amudat Interreligious Development Initiative, Light for the World, Net Foundation, Malteser International, International Aid Service, Danish Refugee Committee, CEFORD, Save the Children, ICCO, War Child Holland, Acholi Religious Leadership Initiative, International Justice Mission, Makarere University, Womena.

Chapter 9

ZOA Yemen

since 2012 Programme areas • Sana’a, Hajjah, Al Hudaydah and Al Mahwit governorates (north of Yemen)

Target groups

Sanaa

Communities with: • high rates of malnourished children under the age of five, pregnant and lactating women; • high rates of IDPs, • poor access to water/water scarce areas.

Sectors

Food Security and Livelihoods

Expenditures

WASH

2014 € 2,606,211* 2015 € 2,538,918* 2016 € 3,073,532* 2017 € 3,588,614

Number of staff as of 31 December Shelter

2014 95* 2015 105* 2016 105* 2017 24 *accumulated numbers for the Middle Eastern Regional office

Chapter 9 49

â&#x20AC;&#x153;All girls now go to school!â&#x20AC;? (A 12-year old girl from Hella community, after ZOA rehabilitated the borehole in her village. Before many girls were busy fetching water from a faraway spring.)

The sad plight of the Yemenis

ince the conflict in Yemen escalated in March 2015, the situation has deteriorated seriously. For 2018 an estimated 22.2 million (of 29.3 million) people are in need of humanitarian assistance. In October/November there was a blockade of humanitarian supplies, while the country was already facing near famine and prolonged cholera outbreak with more than 1 million cholera cases. Due to insecurity, all ZOAâ&#x20AC;&#x2122;s programme areas became less accessible. Meanwhile, we were supporting as many vulnerable people as possible, focusing on access to food, income and water. ZOA has been able to provide emergency relief but always pursuing sustainability: rainwater collection rather than water trucking, home gardens rather than food parcels. During the cholera outbreak, we were involved in sanitation promotion and construction, cholera awareness and prevention.

ZOA was able to rehabilitate a number of water schemes that reconnected thousands of households to water. One of these water schemes, with a deep borehole of more than 300 metres, now runs on solar power and provides 95 families (almost 700 people) with water again. Of the 6,461 families (45,227 people) that received a food parcel, ZOA selected more than 1,000 families to be part of a home gardening intervention. These households were trained in farming techniques, and received seeds and tools. During the three months that they prepared their home gardening they continued to receive food parcels. Now these families are growing their own vegetables. For many poor families these home gardens were a complete eye opener. They thought that only rich sheikhs were able to do farming. Neighbouring communities have come to our offices to ask for similar aid.

With funding from Dutch Ministry of Foreign Affairs, Europe-Aid, UNOCHA, Unicef, Tearfund UK, ICCO/Kerk in actie, Global Affairs Canada, World Relief Canada, German Humanitarian Affairs, RV-Fonds, Stichting Mitswah, ZOA the Netherlands.

In cooperation with Enmaa Social Foundation for Development, Social Development for Hudaydah Girls Foundation, National Foundation for Development and Humanitarian Response.

Chapter 10

10 Disaster Response Disaster response is increasingly becoming an integral part of the regular country programmes. The Disaster Response Team (DRT) is available to support the country teams in their response to humanitarian emergencies, including in the writing and implementation of proposals. The DRT consists of a team manager, three disaster response officers and a manager general affairs.

Support During 2017, the DRT-members travelled to Iraq, Ethiopia, Sudan and South Sudan to support the country programmes responding to emerging needs. In addition the team visited Somaliland to support the partner organisation in the implementation of emergency projects to fight drought and famine. In the Netherlands, the DRT participates within the Dutch Relief Alliance.

Orientation and finalization The Rohingya refugee crisis in Bangladesh had the team’s full attention. At present support is given through Tearfund UK. The team will continue to monitor the situation, also in the light of possible returns to Myanmar where ZOA has a programme. The country team in DR Congo is facing challenges with new crises developing throughout the country. The Disaster

Response Team will continue to monitor the situation and consider responding if the situation deteriorates further.

Most of the team’s time and support went to setting up the relief programme in Nigeria, providing lifesaving support to people affected by the Boko Haram violence. Implementation of relief activities started in February 2017, in the province of Borno, working mainly in the city wards of Shuwari and Bolori and the village of Gongulong in the outskirts of Mauduguri. ZOA reaches out to vulnerable IDPs as well as to the host population who shared the little they had until nothing was left.

how much food people had eaten in the last seven days – the so called Food Consumption Score – combined with the coping strategies and vulnerability score. It was found that most of the cash (70%) was spent on food, then to shelter, health care, education and blankets. This shows that in line with the initial assessment food was the highest priority. Malnutrition percentages went down, and despite warnings for famine over the summer period, this worst case scenario was prevented due to programmes like this. The cash was distributed through e-vouchers (bank cards) and validation of beneficiaries happened through biometric data (finger prints), reducing the risk of fraud and abuse. Of the card holders 95% were women, that way empowering them to make the decision on how cash was spent for their family. A few entrepreneurial beneficiaries managed to save some money to start a business and are no longer dependent on support from outside.

ZOA provided monthly, unconditional cash to 30,000 people, for up to seven months. The vulnerable families who were eligible for the distributions had no resources left and had to use negative coping strategies such as begging, eating fewer meals and generating large debts. The selection was done by measuring

A water and sanitation programme, constructing wells and latrines, combined with hygiene education, complemented the cash activities. A total of over 19,000 beneficiaries benefited. In the overcrowded areas where IDPS live without latrines or access to water within a reasonable distance, cholera

The relief operations in Nepal (earthquake response) and the Philippines (cyclone response) are in their finalizing phase, and will end in the first quarter of 2018.

Nigeria

“The image of the mother cooking leaves for her sick child never left me. I met them during the assessment early this year. For people like this mother and son the cash made a huge difference and indeed has saved many lives.” Team member Disaster Response Team

broke out halfway through the year. ZOA responded by adding soap distribution and information campaigns to the already existing programme and supported the containment of the outbreak. At the end of November the cholera was under control. ZOA is glad to work here, supporting IDPs and the host population alike. We are preparing for a longer period of support. We hope and pray that stability will soon return to the region. When that time comes we will be ready to support recovery and return. Until then we will continue our life saving support to the most vulnerable families and communities.

Chapter 10 51

Chapter 11 53

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

11.1 MAIN TRENDS Many funds were again entrusted to us in 2017. Something for which the organization is very grateful. Our donors and loyal constituency enabled us to make a significant difference in the lives of people impacted by conflict and natural disasters. Income from Dutch constituency The income from our constituency increased significantly in 2017 (€ 12.8 million in 2017 versus € 9.2 million in 2016). The income also exceeded the budget by € 2.7 million. However, the unearmarked income was 0.1 million lower than budgeted, whereas the earmarked income was well above budget. We are committed to spending funds responsibly through quality project proposals and by implementing 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, in any book year income received never equals expenditures on projects.

INCOME OWN FUNDRAISING ACTIVITIES Unearmarked Earmarked For reconstruction For emergency campaigns

TOTAL

Net result The profit and loss account shows a positive result of € 0.1 million. Due to an additional dotation to the appropriated reserves and programme funds of € 0.2 million a slight decrease of € 0.1 of the continuity reserves occurred. This shortage, which was lower than budgeted, was caused because not all indirect costs of the Netherlands and the programme countries could be covered by funding. Country portfolio The project portfolio in programme countries was well above budget (€ 34.3 million budget versus € 40.0 million realized spending on projects in 2017). Like the income from the Dutch constituency,

Actual 2017 5,402,728 42%

Budget 2017 5,516,250 55%

Actual 2016 4,947,265 54%

4,817,770 2,537,000

3,120,000 1,478,750

2,874,525 1,406,810

7,354,770 58%

4,598,750 45%

4,281,335 46%

12,757,497

10,115,000

9,228,600

the portfolio in the programme countries also shows that funding for direct project costs are well funded, but cost recovery for indirect or overhead costs was down. Therefore, despite the large portfolio, costs coverage was under pressure in 2017, leading to an increased negative result from country offices (€ 0.8 million in 2017). Sufficient cash and reserves Given the high risk and unstable contexts in which ZOA operates and our core organisational values of faithfulness and stewardship, we aim to keep a portion of the entrusted funds in reserves. As per the end of 2017, the balance sheet shows sufficient liquidity for ZOA to meet all of its short-term obligations.

In line with the renewed RJ650, ZOA distinguishes between continuity reserves and appropriated reserves for specific purposes. At the end of every year, ZOA reassesses its programmatic risks in countries, including its increasing need to be able to pre-finance essential projects in existing countries. ZOA also adjusts the financing assets reserve for ZOA as financed fixed assets usurp liquidity. The general continuity reserve reduced in 2017 as part of the above mentioned assessment of the reserves. ZOA prefers have reserves for specific goals rather than for general purposes and has therefore shifted reserves from general to risk specific reserves. The Country Program Reserve, reserved for direct spending in the country programme increased with € 1.1 million to € 2.4 million, while the total of the remaining reserves stayed at the same level.

Key figures and summary INCOME (X â&#x201A;¬ 1,000,0000) Income own fundraising activities Income from other non-profit organisations As % of total income (excl. consortia and other) Income from grants for ZOA Income from grants for consortia partners Other income 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 Fundraising expenses Management and Administration expenses TOTAL EXPENDITURES

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

Actual 2013 8,9 0,6

Actual 2014 8,4 1,2

Actual 2015 11,1 0,6

Actual 2016 9,2 0,9

Actual 2017 7,7 5,1

Budget 2018 9,9 1,0

9,5 26.5% 25,9 8,2 0,5

9,6 26.7% 26,3 8,1 0,1

11,7 24.7% 34,7 17,4 0,9

10,1 24.9% 30,0 10,8 0,4

12,8 27.7% 33,2 10,4 0,2

10,9 28,1% 27,9 13,0 0,0

44,1

64,7

51,3

56,5

51,8

Actual 2013

Actual 2014

Actual 2015

Actual 2016

Actual 2017

Budget 2018

28,9 2,2 0,6

27,8 2,1 0,4

37,9 2,1 0,5

36,4 2,1 0,5

40,0 2,4 0,5

32,8 2,2 0,6

31,7 91.1% 8,2 1,8 5,3% 1,2 3.6%

30,3 91.4% 8,1 1,8 5,3% 1,1 3.2%

40,5 93.0% 17,4 1,8 4,1% 1,2 2.9%

39,0 92.4% 10,8 1,8 4,3% 1,4 3.3%

42,9 93.2% 10,4 1,8 4,0% 1,3 2.8%

35,5 92,0% 13,0 1,8 4,6% 1,3 3,4%

42,9

41,3

60,9

53,0

56,4

51,7

1,2

2,8

3,8

-1,7

0,1

Actual 2013 1,1 0,1

Actual 2014 0,8 2,0

Actual 2015 2,8 1,0

Actual 2016 -0,5 -1,2

Actual 2017 -0,7 0,8

Budget 2018 -0,1 0,2

1,2

2,8

3,8

-1,7

0,1

11.2 BALANCE SHEET After appropriation of the result

ASSETS Intangible fixed assets 1 Tangible fixed assets 2 Land Building Inventory & Equipment Vehicles in programme area's Inventories 3 Receivables, prepayments and accrued income 4 Securities

Cash and cash equivalents

TOTAL ASSETS

LIABILITIES Reserves and funds Continuity reserves General 7

31 Dec 2017 6,250

31 Dec 2016 8,705

349,000 844,310 61,331 64,674

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

1,319,315

1,331,343

111,910

9,617,497

11,766,608

253,814

250,517

24,246,276

18,372,787

35,443,152

31,841,871

31 Dec 2017 1,268,762

31 Dec 2016 2,577,917

2,989,000 1,325,565 4,314,565

2,000,000 1,340,048 3,340,048

700,000 2,428,368 1,581,602 957,881 0

500,000 1,281,913 1,581,602 963,722 266,717

5,667,851

4,593,954

Appropriated financing- and risk reserves Pre-financing projects 8 Financing fixed assets 9 Appropriated reserves for future project spending Programme financing 10 Country program reserves 11 Programme development & innovation 12 Disaster Response 13 Other14 Programme funds

Provisions 16 Current liabilities Accruals to donors 17 Other liabilities and other accruals 18 TOTAL RESERVES AND LIABILITIES

3,931,856

4,615,372

15,183,052

15,127,291

332,608

262,280

15,692,353 4,235,140

11,214,010 5,238,290

19,927,492

16,452,300

35,443,152

31,841,871

Chapter 11 57

11.3 STATEMENT OF INCOME AND EXPENDITURE INCOME Income Income from private individuals 19 Income from companies Income from churches and schools Income from government subsidies: - Project grants for consortium partners: 20 - Project grants for ZOA 21 Income from other non-profit organisations 22 Total income raised Income in exchange for the delivery of products and services 23 Other income

TOTAL INCOME

EXPENDITURE Spent on objectives 25 Spent on Objectives in Countries Project grants to consortia partners 20 Own spending on objectives

Actual 2017 5,643,265 598,796 1,376,841

Budget 2017 5,575,000 550,000 905,000

Actual 2016 5,057,373 753,979 815,617

10,379,986 33,201,078 5,058,813

11,730,000 29,545,388 3,000,000

10,765,107 30,034,994 2,508,676

56,258,778

51,305,388

49,935,746

79,783

85,000

92,955

156,329

275,770

56,494,890

51,390,388

50,304,471

Actual 2017

Budget 2017

Actual 2016

10,379,986 40,046,749 50,426,735

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

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

2,423,996

2,702,969

2,122,512

470,240

497,969

502,686

53,320,971

49,259,169

49,784,926

Fundraising expenses 28

1,832,094

1,861,091

1,813,036

Management and Administration expenses 29

1,284,158

1,439,999

1,441,369

56,437,223

52,560,259

53,039,331

57,668

-1,169,871

-2,734,860

-1,907

95,000

138,148

55,761

-1,074,871

-2,596,712

Education/Awareness raising 27

TOTAL EXPENDITURES SURPLUS/-DEFICIT BEFORE FINANCIAL INCOME AND EXPENSES

Balance of financial income and expenses 30 SURPLUS/-DEFICIT

Future project spending

Actual 2017

Budget 2017

Actual 2016

-683,516

-545,082

-1,394,097

Appropriated reserves Appropriated financing reserves Financing assets

-14,483

-197,566

-14,483

-197,566

Pre-financing projects Appropriated reserves for risks and future project spending Programme financing Disaster Response

-5,841

-70,731

Programme development & innovation Country programme reserves Other

-219,785 -1,104,004

1,146,473

-137,248

314,995

873,915

-207,979

-1,009,606

-120,155

-321,810

4,557

55,761

-1,074,871

-2,596,712

-266,717

-812

Continuity reserves General continuity reserve TOTAL CHANGE IN

Preparation and Coordination from the Netherlands 26

ADDED TO/WITHDRAWN FROM Programme Funds

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 for ZOA In exchange for the delivery of products and services Other income

Payments Programme and coordination costs Fundraising, management and administration costs

Actual 2017

Actual 2016

12,311,868 41,103,481 79,783 156,329

10,674,480 28,640,539 92,955 275,770

53,651,461

39,683,744

-44,498,252 -3,116,252

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

-47,614,504

-39,615,333

6,036,957

68,411

-301,127 0 111,910

-410,049 20,615 -111,910

-189,217

-501,344

Cash flow from financial activities Balance of financial income and expenses

29,046

186,203

Change in securities and cash equivalents

5,876,786

-246,730

24,500,091 18,623,304

18,623,304 18,870,034

5,876,787

-246,730

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

Balance December 31st Balance January 1st TOTAL CHANGE IN SECURITIES, CASH AND CASH EQUIVALENTS

The cash flow statement is compiled according to the direct method. Cash receipts increased to € 53.7 million and payments to € 47.6 million. Net cash

position therefore increased to € 24.5 million after years of stabilization (2016: € 18.6 million, 2015: € 18.8 million).

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, prepayments, accrued income and current liabilities. ACID ratio measures the ability of ZOA to use its cash or quick assets to immediately pay or retire its current liabilities and current provisions immediately. Based on the liquidity ratio of 168%, ZOA has sufficient funds available to cover all short term obligations.

Actual 2017 168% 34,117,587 20,260,100

Actual 2016 182% 30,389,912 16,714,580

Chapter 11

11.5 EXPLANATORY NOTES TO THE ANNUAL ACCOUNTS General The annual accounts have been prepared in accordance with the in 2016 amended Guideline 650 of Fundraising Organisations (RJ650). This amendment is applicable as of January 1st 2017. Changed accounting principles recognition of income from third parties and funds In October 2016 RJ-Uiting 201613 was issued by the Raad voor de Jaarverslaggeving (Council for Annual Reporting) with the result that the Guideline 650 for Fundraising Organisations (RJ 650) has been amended. The amended Guideline must be applied for financial years starting on or after 1 January 2017. As a result of the amended Guideline, the presentation of income has been adjusted. The comparative figures have been reclassified to allow comparison. Furthermore, due to the amended Guideline 650, ZOA has adjusted the way income is recognised from funds and third party campaigns. Up to 2016 ZOA has recognised the full contractual income in the year the donor contract was signed. From 2017, ZOA recognises income from funds and third party campaigns, if conditions are included in the underlying contracts, based on actual spending in the book-year.

Compared to the annual accounts 2016, this change in accounting method resulted in: • € 0.9 million decrease of the net result 2016 • € 0.9 million increase of future project spending in 2016 • € 0.9 million decrease of programme funds per December 31st 2016 • € 0.9 million increase in current liabilities per December 31st 2016 Income for consortia partners 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 reporting 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 Executive Board 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 use financial derivatives. Uncertainties in local legislation Financial risk exposure may arise from tax and regulatory legislation, which in the instable environments in which we work is subject to varying interpretations, and changes, that can occur frequently. In our programmes we accept a minimal up to cautious level of risk towards local (tax) law and regulations. Where management has assessed it is probable that a position on the interpretation of relevant legislation cannot be sustained, an appropriate amount has been included in the provisions in these financial statements.

Chapter 11 61

11.6 ACCOUNTING PRINCIPLES FOR THE BALANCE SHEET Fixed assets The intangible assets, buildings, refurbishments, fixtures and equipment and means of transport 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.

Inventories 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 are included relating to years one year after balance date. Securities 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 are converted against actual rate at end Intangible fixed assets: of book year, based on international EUSoftware 25% rates. Tangible fixed assets: Reserves and funds Land: 0% The reserves and funds of ZOA exist to Building: 31/3% achieve ZOAâ&#x20AC;&#x2122;s objectives. They can be Refurbishments: 10% summarised as follows: Inventory and equipment: 25% 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 are determined by the Executive Board. Appropriated reserves The appropriated 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 appropriated reserves for pre-financing projects (to enable the 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 in 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 raised Income from private individuals, companies, churches and schools 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 fair price. Legacies are recorded as income in the year when the notary has communicated the deed of partition, ‘akte van scheiding en deling’. 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 related to projects implemented by partners is based on periodically received expenditure reports. Contributions from other non-profit organisations are accounted for as ‘income from other non-profit organisations’ for the amount received by the organisation. They are recognised in the year that income from the campaign by other nonprofit organisations has been received

or pledged by this party. Campaigns by other non-profit organiations only include campaigns for which ZOA does not bear any risk. 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 for ZOA 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. 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. Income in exchange for the delivery of products and services Income raised from the exchange for products or services are presented as net figures. The gross income is deducted with the direct costs and reported as net income.

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. Spent 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. Fundraising expenses 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. Management and administration expenses 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. Balance of financial income and expenses 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. Other income and expenses are recognized in the period they appear.

Chapter 11

11.8 EXPLANATORY NOTES TO THE BALANCE SHEET ASSETS INTANGIBLE FIXED ASSETS At 1 January 2017 Acquisition value Cumulative depreciation Book value

Total 2017

Total 2016

52,252 43,547

48,005 40,589

8,705

7,416

Changes in book value Investment Disinvestment Depreciations Depreciations disinvestment Balance

1,259 3,714 -

4,247 2,958 -

-2,455

1,289

At 31 December 2017 Acquisition value Cumulative depreciation

53,511 47,261

52,252 43,547

BOOK VALUE

6,250

8,705

TANGIBLE FIXED ASSETS At 1 January 2017 Acquisition value Cumulative depreciation Book value Changes in book value Investment Disinvestment Depreciations Depreciations disinvestment Balance At 31 December 2017 Acquisition value Cumulative depreciation BOOK VALUE

INVENTORIES Inventories

31 Dec 2017 -

31 Dec 2016 111,910

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

Tangible fixed assets 2 The investments in 2017 of € 0.3 million consist primarily of vehicles used in country programmes. Disinvestments of € 0.3 million relate mainly to used vehicles sold in country programmes or fully depreciated assets. Disinvestments are assets sold by ZOA after they became redundant or economically too expensive

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

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 2017

Total 2016

349,000 -

995,328 129,277

755,414 704,079

3,357,012 3,292,056

5,456,754 4,125,411

5,829,104 4,299,031

349,000

866,051

51,336

64,956

1,331,343

1,530,073

20,542 42,283 -

93,582 83,583 -

185,745 316,724 186,030 316,724

299,868 316,724 311,896 316,724

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

-21,741

9,999

-285

-12,028

-198,730

349,000 -

1,015,869 171,560

848,996 787,662

3,226,032 3,161,361

5,439,898 4,120,583

5,456,754 4,125,411

349,000

844,310

61,334

64,671

1,319,315

1,331,343

Inventories 3 At 31 December 2016 ZOA had blankets, mattresses and hygiene kits in stock for distribution in our Middle East programme.

Since ZOA mainly works with local implementing partners, no inventories were in stock at 31 December 2017.

Chapter 11 65

Receivables, prepayments and accrued income RECEIVABLES, PREPAYMENTS AND ACCRUED INCOME Receivables from institutional donors European Union (ECHO / Europeaid) USAID DFID UN-organisations Ministry of Foreign Affairs Royal Dutch Ambassy ICCO Kerk in Actie World Renew Other donors

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 receivables decreased from € 11.8 million in 2016 to € 9.6 million at the end of 2017. This is partly due to de-

Securities

31 Dec 2017

31 Dec 2016

1,646,482 1,509,406 912,965 808,177 658,638 134,670 59,849 154,343

3,750,437 1,106,834 1,334,787 2,972,993 59,849 979 82,711

5,884,530

9,308,590

53,140 1,148,907 1,202,047

13,991 628,121 642,112

1,877,276

770,152

332,528 276,446 29,185 15,485

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

653,643

1,045,754

9,617,497

11,766,608

creased receivables from donors (from € 9.3 at the end of 2016 to € 5.9 in 2017). All receivables are claimable within one year.

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 of ZOA. The investment in Cash and cash equivalents

31 Dec 2017 253,814

31 Dec 2016 250,517

253,814

250,517

Oikocredit yields a fixed 1.55% per year and is valued at fair value. The investments 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. ZOA aims to limit large balances in unstable foreign currencies. At 31 December 2017 the other currencies balance in countries

31 Dec 2017

31 Dec 2016

15,284,646 854,833

9,138,111 1,412,716

16,139,478

10,550,827

2,805,957 1,055,034

1,906,517 2,204,878

3,860,991

4,111,395

2,993,768

1,977,151 -

2,993,768

1,977,151

1,061,424

1,467,568

1,061,424

1,467,568

190,614

265,846

24,246,276

18,372,787

are local currencies needed for short term project implementation. ZOA is aware of concentration risks and tries to divide the cash in bank over two Dutch banks. Cash in the programme countries are directly needed for the implementation of projects. 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

LIABILITIES Reserves and funds CONTINUITY AND APPROPRIATED RESERVES Continuity reserves General 7 Total continuity reserves Appropriated financing and risk reserves Pre-financing 8 Financing fixed assets 9 Total allocated finance and risk reserves Appropriated reserves for future project spending Programme financing 10 Country programme reserves Sri Lanka Jordan, Syria and Libanon Iraq Yemen Uganda Burundi Afghanistan Liberia Myanmar Disaster Response Team Other

Disaster response 13 Balance start book year To programme funds for emergency projects Afghanistan To programme funds for emergency projects Congo To programme funds for emergency projects Philippines From programme funds

Total appropriated reserves for future project spending TOTAL

Added to

Spent

Re-allocation

31 Dec 2016

1,268,762 1,268,762

120,155 120,155

-1,189,000 -1,189,000

2,577,917 2,577,917

2,989,000 1,325,565 3,825,565

14,483 14,483

989,000 989,000

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

700,000

200,000

500,000

631,853 407,221 141,754 354,470 201,370 88,013 6,867 1,214 116,408 479,215

369,826 110,742 141,754 354,470 16,336 6,658 16,761 116,408 480,464 -

224,250 60,654 92,885 78,591 1,248 9.319

266,717 -

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

2,428,386

1,604,101

457,628

1,581,602

963,722 -71,488 -25,761 -8,000 99,408

99,408

71,488 25,761 8,000 -

963,722

957,881

99,408

105,249

-266,717

266,717

4,967,868

1,436,791

562,877

200,000

4,093,954

11,251,196

1,422,308

683,032

Programme development & innovation

Other allocated reserves

31 Dec 2017

1,281,913

963,722

10,511,919

The net changes in reserves (added-to minus spent) correspond with allocations from the 2017 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. Re-allocation of reserves in 2017 A review and update of the risk and reserve policy was done in 2017, leading to more specific calculation of financial and risk reserves. The total level of reserves has not changed in 2017, but the shift to specific reserves has led to a decrease of the general continuity reserve of € 1.3 million in 2017 to € 1.3 million (2016: € 2.6 million). 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 minimum requirement, based on a risk assessment. In this assessment all country risks were evaluated. To be able to live up to the core values of ZOA, including faithfulness, in a situation of sudden funding lack, a minimum continuation of three months is ZOA’s goal for each programme. 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 2017. ZOA’s reserve is significantly lower than this maximum. Appropriated reserves The restriction on spending of the appropriated reserve has been determined by the Executive Board. Appropriated reserves do not yet constitute an obligation; the Executive Board is able to change the restriction. These reserves are reviewed yearly. Pre-financing 8 Classified as appropriated reserve is an amount of € 3.0 million, appropriated 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, prefinancing is only allowed after explicit consent from the Executive Board.

formed in 2014 to be able to invest more in country programme quality and development and to finance programme innovation. This reserve is also meant for investments in quality development, benefiting all ZOA country programmes. The reserve also enables ZOA to start up a programme when cost coverage is still limited and recovery of these start-up costs in later years is uncertain.

Financing fixed assets 9 The appropriated 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.

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.

Programme financing 10 The appropriated reserve of € 0.7 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 appropriated 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. The increase of € 1.1 million is mainly caused by income meant for indirect costs which will be spent in 2018. Programme development & innovation An appropriated reserve for programme development and innovation was

Other appropriated reserves 14 Other appropriated 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 / Thailand Congo Ethiopia HaĂŻti Liberia Middle East Region: Jordan, Syria and Libanon Iraq Yemen Myanmar Nepal Nigeria Philippines Somalia South-Sudan Sri Lanka Sudan Uganda Ukraine Subtotal

31 Dec 2017

Money received

Spent on projects

Re-allocation

Contribution reserves

31 Dec 2016

59,276 125,974 7,523 66,753 168,412

495,411 316,352 20,741 230,220 589,083 12,628 422,036

38,741 21,527

59,438

270,036 165,704 347 205,242 80,565 22 368,276

111,384 82,428 -357 14,796 -58,570 -22 56,754

134,526 172,667 28,274 61,197 439,075 12,628 80,155

934,432 250,689 503,309

472,297 495,936 703,775

919,172 1,015,984 686,740

217,550 207,916 17,695 113,870 400 279,514 12,705 50,957 600,850

142,287 88,068 158,899

240,675 216,914 176,966 8,000 205,556 555,832 261,000 117,250 1,673,528

126,483 186,375

8,164,087

1,464,144

3,677,263

Education/Wash/Food/Women/Business Solar panel Drought Africa (general) Flooding Asia (general) Emergency Relief (general) SHV Fund

111,723

180,380 828 994,888 314,843 23,784 50,020

Subtotal

254,593

1,564,743

3,931,856

7,354,770

TOTAL

14,781 828 75,836 51,425

205,956 374,447 51,608 128,391 1,877,909 264 5,790,027

15,738 296,425 -23,711

1,381,306 770,737 68,202

418,072

281,103 79,517 23,763 111

-506 -74,331 8,000 -67,559 54,420 25,411 -264 151,585

189,455 150,893 110,094 113,870 247,355 88,160 16,053 370,946 4,435,594

-165,677

-990,550 -263,417

71,497

-44,500

-23,784 -2,000

108,203

-1,464,144

-25,784

179,778

8,164,087

125,801

4,615,372

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 similar goals. The remainder will be added to or withdrawn from other reserves.

Chapter 11

Provisions

PROVISIONS For potential tax repayment For liabilities local pensions and taxes

Provisions for potential liabilities for costs and claims relate to pensions and tax (re)payments in countries and in the Netherlands. At 31 December 2017 it is uncertain if these costs must be paid,

31 Dec 2017 220,825 111,783

31 Dec 2016 145,895 116,385

332,608

262,280

but a provision is deemed necessary. In 2017 the total balance of provisions has increased from the balance of 2016 due to increased estimated liabilities for potential tax repayments.

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

Local pension and taxes provision

Total

Balance 1 January 2017

145,895

116,385

262,280

Addition

74,930 220,825 -

13,260 129,645 17,862 -

88,190 350,470 17,862 -

220,825

111,783

332,608

Utilization Release BALANCE 31 DECEMBER 2017

A reasonable estimate could be made of amounts of the tax repayment provision and the local pension provision. The

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

Chapter 11 71

Current liabilities SHORT-TERM LIABILITIES Accruals to donors 17 Ministry of Foreign Affairs UN-organisations Royal Dutch Embassy European Union (ECHO / Europeaid) Livelihoods and Food Security Trust Fund (LIFT) Swedisch International Development Coop. Agency (SIDA) USAID DFID Tearfund Australia NIRAS Funds and third parties Other donors

Other liabilities and accruals 18 Contractual obligations to be paid to partners Liabilities countries related to staff Accrual holiday allowance Creditors the Netherlands Provision annual leave the Netherlands Other liabilities and accruals countries Other liabilities and accruals the Netherlands

TOTAL

31 Dec 2017

31 Dec 2016

5,168,861 2,961,889 1,945,180 987,075 753,242 369,744 202,278 103,669 100,402 1,482 2,460,936 637,595

4,235,425 1,899,917 1,130,662 1,329,836 666,522 200,718 142,928 47,721 128,312 1,333,120 98,849

15,692,353

11,214,010

1,951,819 597,592 426,318 216,774 812,153 230,484

2,222,899 1,147,904 178,562 432,319 253,193 750,096 253,317

4,235,140

5,238,290

19,927,492

16,452,300

Accruals to donors 17 Institutional donor contributions received in advance that will be spent after the year 2017 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

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 of € 0.2 million, approximately € 0.2 million is a short-term liability (maximum of one year) whereas a limited amount refers to off-balance liabilities longer than one year.

Other liabilities and accruals

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 2017 is € 0.2 million.

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. Other liabilities and accruals countries These liabilities and accruals relate to creditors and costs to be paid in countries.

Considered off balance receivables is a total amount of € 0.5 million for legacies. These legacies were communicated by the executing notary, but no formal amounts were determined or paid to ZOA in 2017. Since ZOA has no formal rights to these amounts in 2017, no income or receivables were recorded in the balance sheet and the state of income and expenditure.

Chapter 11

11.9 EXPLANATORY NOTES TO THE STATEMENT OF INCOME AND EXPENDITURE INCOME Total income in book year The total income of ZOA increased significantly from € 50.3 million in 2016 to € 56.5 million in 2017, showing an increase of € 6.2 million, mainly caused by a € 3.8 million increase of funds received grants. Excluding project grants for consortia partners, the income increased from € 39.5 million in 2016 to € 46.2 million in 2017. This is a substantial increase of € 6.7 million or 17%.

Income from own fundraising and third party campaings Income from own fundraising, income from other non-profit organisations as well as income from institutional donors are higher than in 2016. Unearmarked income decreased with 0.1 million, but earmarked funds increased significantly from € 4.3 million in 2016 to € 7.4 in 2017.

INCOME OWN FUNDRAISING ACTIVITIES Income own fundraising and third party campaigns Income from private individuals Income from companies Income from churches and schools Income from other non-profit organisations Income in exchange for the delivery of products and services

Unearmarked

Earmarked For reconstruction For emergency campaigns

TOTAL

Actual 2017

Budget 2017

Actual 2016

5,643,265 598,796 1,376,841 5,058,813 79,783

5,575,000 550,000 905,000 3,000,000 85,000

5,057,373 753,979 815,617 2,508,676 92,955

12,757,497

10,115,000

9,228,600

5,402,728 42%

5,516,250 55%

4,947,265 54%

4,817,770 2,537,000

3,120,000 1,478,750

2,874,525 1,406,810

7,354,770 58%

4,598,750 45%

4,281,335 46%

12,757,497

10,115,000

9,228,600

Chapter 11 73

The income components are specificed in the following paragraphs. Income from private individuals

Income from grants for consortia partners

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

Actual 2017 4,659,577 856,906 126,781

Budget 2017 4,425,000 850,000 300,000

Actual 2016 3,993,686 858,842 204,844

5,643,265

5,575,000

5,057,373

PROJECT GRANTS FOR CONSORTIA PARTNERS BUZA-DRA - Syria Joint Response BUZA-ARC - Adressing Root Causes BUZA-DRA - Capacity project Other consortia

Actual 2017 7,214,560 3,049,326 116,100 10,379,986

General income from contributions, donations and gifts grew from € 4.0 million in 2016 to € 4.7 million in 2017. Income from door-to-door collection was in line with previous years (between 0.8 and 0.9 million) as well as the 2017

budget. Income from legacies is by nature hard to predict and shows highly fluctuating income over the years. Despite this, income decreased further compared to 2016 to € 0.1 million in 2017 (2016: 0.2 million, 2015: 1.0 million).

When ZOA is the lead partner in a consortium, ZOA has the legal responsibilities for such a consortium as a whole and is obliged to report the full

Budget 2017

Actual 2016 10,585,107 180,000 -

11,730,000

10,765,107

consortium income as well as expenses. Therefore, the amount for consortia shown as the income in the state of income and expenditure also appears in the expenses.

Income from project grants for ZOA

PROJECT GRANTS FOR ZOA DMH/VG Adressing the Root Causes (ARC) DMH/VG (MFS) DMH/VG (Reconstruction) DMH/VG (Protacted Crisis) DSH-HH (Joint Response) DSH-HH (Emergency) Young Experts Program (YEP) Subtotal Royal Netherlands Embassy Burundi Royal Netherlands Embassy DR Congo 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 Office for Project Services (UNOPS) United Nations Development Programme (UNDP) UNHCR - Sri Lanka UN Habitat Iraq UNICEF - Yemen UNICEF - Afghanistan UNICEF - Liberia UNICEF - Myanmar UNICEF - Sudan UNICEF - South Sudan UNICEF - Ethiopia World Food Programme (WFP) International Organization for Magration (IOM) Food and Agriculture Organisation (FAO) Total UN donors

Actual 2017 1,599,925 46,859 25,480 7,119,565 25,731 8,817,561 1,793,177 583,228 216,059 19,808 2,612,272 11,429,833 3,688,236 2,242,044 5,930,280 3,617,471 631,383 73,770 55,844 33,735 420,299 258,075 129,242 33,763 441,798 2,160 -176 5,697,362

Budget 2017

5,283,314

4,915,527 10,198,841

7,415,464

3,232,490

Actual 2016 199,933 2,019,450 1,705,901 5,386,612 1,919,013 11,230,909 1,914,546 163,341 11,084 2,088,971 13,319,880 3,374,441 1,944,274 5,318,715 1,226,456 753,986 150,446 68,412 148,516 137,968 329,396 86,352 27,614 186,058 92,726 3,207,930

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) Fida International Australia Government Aid Programme (AusAid) German Development Agency (GIZ) Swedisch International Development Cooperation Agency (Sida) Ministry of Rural Rebabiliation & Development (MRRD / Afghanistan) Japenese Embassy Total Governmental donors Livelihoods and Food Security Trust Fund (LIFT) Canadian Foodgrain Bank Transform Aid International Geneva Global Catholic Relief Service The Economic Community of West African States (ECOWAS) Tearfund Australia Diaconia NWO-WOTRO Niras International Consulting (NIC) Myanmar Humanitarian Fund (MHF) Woord en Daad Tearfund Belgium Red een Kind Ockenden Foundation Civil Society Fund South Sudan ICCO / Kerk in Actie Koornzaaier Medair Other Total Others TOTAL PROJECT GRANTS

Actual 2017 4,313,213 2,784,646 260,591 198,661 155,978 30,865 7,743,954 1,037,760 347,172 195,864 171,881 171,803 84,795 81,804 81,269 60,759 31,726 25,804 16,692 15,000 14,058 9,385 6,630 -

Budget 2017

4,472,840

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

47,248 2,399,649

4,225,753

75,224 49,976 22,516 2,882,072

33,201,078

29,545,388

30,034,994

This income from institutional donors reflects contributions from the Dutch government, other governmental donors, the European Union, United Nations organizations, 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 2017 of € 33.2 million exceeded the budget for 2017 by € 3.7 million (12%). Compared to 2016, income from institutional donors increased by € 3.2 million or 11% from € 30.0 million in 2016 to € 33.2 million in 2017. The part of income that was received from the Dutch Ministry of Foreign Affairs in The Hague, including Embassies, decreased to 34% in 2017 (2015: 51% and 2016: 44%) as large multi-year projects (e.g. MFS and RECON) were implemented between 2012 and 2016. Increased or decreased funding per donor can be explained by their change in priorities in the choice of geographical areas or sectors in which they work. It is ZOA’s policy to partner with donors when their priorities meet the programme goals and mandate of ZOA. Other income in this category is income from NGO’s where the ultimate donor is an institutional donor.

Chapter 11

EXPENDITURES Income from other non-profit organisations INCOME FROM OTHER NON-PROFIT ORGANISATIONS Funds Third parties

The income from other non-profit organisations increased significantly with € 2.6 million to € 5.1 million

Actual 2017 2,990,049 2,068,764

Budget 2017

Actual 2016

5,058,813

3,000,000

2,508,676

(2016: € 2.5 million). This income category is a combination both funds and third parties.

Income in exchange for the delivery of products and services INCOME IN EXCHANGE FOR THE DELIVERY OF PRODUCTS AND SERVICES Net revenu for the sale of spicy nuts Cost price spicy nuts

The income in exchange for the delivery of products and services is the income from sold products. This income is deducted with the direct costs and reported as net income in this category. The income accounted for in this category is the net Other income

Actual 2017

Budget 2017

Actual 2016

149,869 70,086

187,500 102,500

115,697 22,742

79,783

85,000

92,955

79,783

85,000

92,955

revenue from selling ‘kruidnoten’. ZOA does not register sponsorship or events in this income category as it is too arbitrary to calculate direct costs. Such income is accounted for in the other income categories.

RATE DIFFERENCES AND OTHER INCOME Income from sold assets Other income

The other income decreased with € 0.1 million. As from 2017 rate differences and

Actual 2017 81,994 74,335

Budget 2017

Actual 2016 275,770

156,329

275,770

interest results are accounted for in the balance of financial income and expenses.

Total expenses in book year While income increased by a total of € 6.2 million, expenses increased by € 3.4 million from € 53.0 million in 2016 to € 56.4 million in 2017. ZOA’s aim is to spend at least 88% of resources on

its objectives. In 2017 ZOA exceeded that minimum by 5.2%. The types of expenditure expressed in a percentage of the total, excluding expenditure through consortia partners, are shown in the table.

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

Actual 2017 86.9%

Budget 2017 84.1%

Actual 2016 86.1%

Education and awareness Programme preparation and coordination in The Netherlands

1.0% 5.3%

1.2% 6.6%

1.2% 5.0%

93.2%

91.9%

92.3%

4.0% 2.8%

4.6% 3.5%

4.3% 3.4%

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: - Iraq - Jordan, Syria, and Libanon - Yemen Myanmar Nepal Nigeria Philippines Sri Lanka Somalia South Sudan Sudan Uganda Ukraine Other

Actual 2017

Budget 2017

Actual 2016

10,379,986

11,730,000

10,765,107

3,274,830 2,687,281 20,741 1,679,929 2,364,111 10,700 1,241,579

3,036,966 3,633,297 2,583,925 3,341,658 1,085,819 4,685,997

2,866,792 2,941,859 68,359 1,914,866 5,324,549 42,800 1,254,180 3,954,759

3,428,455 1,753,595 3,588,614 1,962,053 207,714 2,698,532 9,248 1,010,345 562,847 3,379,205 7,215,985 2,938,045 12,941

1,851,062 2,406,918 865,360 2,177,579 5,403,950 3,377,700 -122,000

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

40,046,749

34,328,231

36,394,620

2,423,996

2,702,969

2,122,512

470,240

497,969

502,686

2,894,236

3,200,938

2,625,198

53,320,971

49,259,169

49,784,926

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

Projects spent through consortium partners When ZOA is the lead partner in a consortium, ZOA has the legal responsibilities for such a consortium as a whole and is obliged to report the full consortium income as well as expenses. Therefore, the amount for consortia shown as the expenses in the state of income and expenditure also appears in the income. Spent on objectives in countries The figures for spent on objectives in countries show an increase of € 3.6 million or 10% from € 36.4 million in 2016 to € 40.0 million in 2017. This increase 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 2017 the budgeted total amount spent on objectives of € 34.3 million has been overreached by actual expenditure of € 40.0 million. Assets needed for a specific project and fully subsidised by the donor are represented as project expenditures

Preparation and coordination in the Netherlands PREPARATION AND COORDINATION THE NETHERLANDS Preparation and coordination cost Netherlands DRA coordination costs Syria Joint Response coordination costs ARC coordination costs RECON coordination costs Protracted crisis coordination costs

Preparation and coordination from the Netherlands include the costs of the Programme Department and partly

Actual 2017

Budget 2017

Actual 2016

1,850,712

2,501,500

1,933,965

274,797 167,376 124,004 7,107 -

115,466 86,003 -

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

2,423,996

2,702,969

2,122,512

included are costs of the unit Finance and Administration for direct activities.

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 awareness of the general public, children Fundraising expenses

at schools and of ZOA constituents in particular. Expenditure in 2017 was in line with 2016 and the 2017 budget, roughly staying at € 0.5 million.

Total fundraising expenses Total income excl. consortia Total fundraising expenses as part of the total income excl. consortia

For 2017, the cost rate of fundraising stayed in line with 2016 at € 1.8 million. Despite the same level of expenditure, income from own fundraising activities showed an increase of € 3.6 million (€ 12.8 million in 2017 compared to 9.2 million in 2016), thus leading to an improvement of the relative

Actual 2017

Budget 2017

Actual 2016

1.832.094 46.057.236 4,0%

1.861.091 40.830.259 4,6%

1.813.036 42.274.224 4,3%

1.832.094 46.114.904

1.861.091 39.660.388

1.813.036 39.539.364

4,0%

4,7%

4,6%

costs of fundraising. Costs for raising project grants refer to the Institutional Relations unit that assists countries to obtain institutional donor grants and is therefore is part of the preparation and coordination costs.

COST ALLOCATION TO MANAGEMENT AND ADMINISTRATION

Management and administration expenses

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

Actual 2017

Budget 2017

Actual 2016

1,284,158

1,439,999

1,441,369

2.8%

3.5%

3.4%

set the maximum for management and administration costs at 4.0%. In 2017, actual costs were 2.8%, well below the standard.

Explanation

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

pro rata

Department Management & Finance unit Fin Netherlands and IT

100

Department Management & Finance - other

Unit Fundraising and Communication

pro rata

Department Human Resources

pro rata

Department Directors and management support

100

Supervisory Board

100

Balance of financial income and expenses MANAGEMENT AND ADMINISTRATION COSTS Total costs management and administration

or fundraising. These costs include a percentage of several cost categories as shown in the table ‘Cost allocation to management and administration’.

Cost allocation to management and administration

MANAGEMENT AND ADMINISTRATION COSTS Total fundraising expenses Total expenses excl. consortia Total fundraising expenses as a percentage of the total expenses excl. consortia

Costs of management and administration are the costs the organisation incurs for (internal) management and organisation, paid in or from the Netherlands, which cannot directly be allocated to objectives

RATE DIFFERENCES AND OTHER INCOME Interest Currency exchange and recalculation results

The currency exchange and recalculation gains show a negative balance in 2017. The decrease is mainly due to US dollar position in 2017. Due to a devaluated US dollar, the value of these positions expressed in Euros decreased, leading to

Percentage for 2017 was 20% based on budget

Other 50% allocated to preparation and coordination This part is allocated for corporate communication Percentage for 2017 was 20% based on budget budget

Actual 2017 36,803 -38,710

Budget 2017 95,000 -

Actual 2016 67,006 71,142

-1,907

95,000

138,148

a currency loss. Currency exchange and recalculation results are not budgeted for as they are unpredictable risks. ZOA is aware of these exchange rate and concentration risks and takes appropriate measures to mitigate them when possible.

Chapter 11 79

Chapter 11

Attribution of costs

ATTRIBUTION OF COSTS 2017 Own programmes/ projects Personnel costs Direct costs Accommodation costs Office costs and other general costs Audit Costs and Annual Report Depreciation and interest TOTAL ZOA

Project spent through consortium partners TOTAL INCLUDING CONSORTIUM PARTNERS

Programmes

Education

Coordination

30,397,340 9,404,662

96,436 335,931

1,754,012

6,205 25,573

35,087 600,245

Own

Fundraising Third Parties

Subsidies

Costs of man, and admin,

769,011 512,603 12,709 138,272

9,453 15,798 149 180

204,809 146,191 3,220 3,896

957,176

244,747

6,096

34,653

12,477

147

3,180

14,492 192,696 105,483 14,311

40,046,749

470,240

2,423,996

1,445,072

25,726

361,296

1,284,158

10,379,986 50,426,735

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 € 40.0 million is the total expenditure in the ZOA countries, related to direct project costs including personnel costs of posted fieldworkers and the office

470,240

2,423,996

1,445,072

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 information and awareness raising for € 0.5 million, which is a statutory ZOA objective. • The preparation and coordination costs from the Netherlands for € 2.4 million. These costs mainly relate to costs of the

25,726

361,296

1,284,158

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 € 1.3 million consist of so-called mixed costs that are allocated to Management and Administration for a

Total 2017

Budget 2017

Total 2016

30,493,775 13,435,053 674,593 71,861 960,861 105,483 315,610

26,030,351 12,500,933 686,000 73,000 844,975 85,000 610,000

26,242,136 13,857,589 673,816 57,393 735,959 120,456 586,875

46,057,236

40,830,259

42,274,224

10,379,986

11,730,000

10,765,107

56,437,223

52,560,259

53,039,331

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

C.T. Lukkien

A.J. van Wessel

D.J. Vermeer

permanent 40 100% 1/5 - 31/12

permanent 40 100% 1/1 - 31/12

ad interim 40 100% 1/1 - 30/4

63,037 0 5,043 5,253 73,333

73,260 0 5,861 6,105 85,226

6,837 7,580 87,750

Name Position Hours / week PT-percentage Period 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 by the BSD-scales for CEOâ&#x20AC;&#x2122;s of Goede Doelen Nederland, the Dutch fundraising

Actual 2017

Actual 2016

45,000 0 0 0 45,000

181,297 0 10,904 11,358 203,559

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

9,306 7,317

0 0

16,143 14,897

6,578 10,925

101,849

45,000

234,599

219,535

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.

Number of staff As per 31 December 2017 ZOA employed 802 people based on headcount (2016: 887). This decrease of 85 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. In some of our programmes, ZOA made more use of consultants and hired staff instead of staff on own payroll.

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 AUDITORS Consolidated financial accounts Other audit assignments Other non audit services

The other audit assignments in 2016 were project audits that cannot be allocated to specific project budgets in countries. In countries, (local) project audit costs are charged to project or country budgets

Actual 2017

Actual 2016

92.565 -

79.150 24.200 -

92.565

103.350

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: management and supervisory board of Stichting ZOA

REPORT ON THE FINANCIAL STATEMENTS 2017

Independence

We have read the other information. Based on

basis of accounting unless management either

We are independent of Stichting ZOA in accor-

our knowledge and understanding obtained in our

intends to liquidate the foundation or to cease

dance with the ‘Wet toezicht accountantsorgan-

audit of the financial statements or otherwise, we

operations, or has no realistic alternative but to do

Our opinion

isaties’ (Wta, Audit firms supervision act), the

have considered whether the other information

so. Management should disclose events and cir-

In our opinion, Stichting ZOA’s financial statements

‘Verordening inzake de onafhankelijkheid van ac-

contains material misstatements.

cumstances that may cast significant doubt on the

give a true and fair view of the financial position of

countants bij assuranceopdrachten’ (ViO – Code

the Foundation as at 31 December 2017, and of its

of Ethics for Professional Accountants, a regulation

By performing our procedures, we comply with

result for the year then ended in accordance with the

with respect to independence) and other relevant

the requirements of the Dutch Standard 720. The

Guideline for annual reporting 650 ‘Charity organisa-

independence requirements in the Netherlands.

scope of such procedures was substantially less

The supervisory board is responsible for oversee-

tions’ of the Dutch Accounting Standards Board.

Furthermore, we have complied with the ‘Ver-

than the scope of those performed in our audit of

ing the foundation’s financial reporting process.

ordening gedrags- en beroepsregels accoun-

the financial statements.

foundation’s ability to continue as a going concern in the financial statements.

What we have audited

tants’ (VGBA – Code of Ethics for Professional

We have audited the accompanying financial

Accountants, a regulation with respect to rules of

Management is responsible for the preparation

Our responsibilities for the audit of the financial statements

statements 2017 of Stichting ZOA, Apeldoorn (‘the

professional conduct).

of the other information, including the directors’

Our responsibility is to plan and perform an audit

report pursuant to the Guideline for annual

engagement in a manner that allows us to obtain

reporting 650 ‘Charity organisations’ of the Dutch

sufficient and appropriate audit evidence to pro-

Accounting Standards Board.

vide a basis for our opinion. Our audit opinion aims

Foundation’). The financial statements comprise:

•• the balance sheet as at 31 December 2017; •• the statement of income and expenditure for the year then ended; and •• the notes, comprising a summary of the accounting policies and other explanatory information.

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 contains other information that consists of: •• introduction;

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT

to provide reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assurance is a high but not absolute level of assurance which makes it

•• executive report;

Responsibilities of management and the supervisory board for the financial statements

The financial reporting framework that has been

•• supervisory board;

Management is responsible for:

They are considered to be material if, individually

applied in the preparation of the financial state-

•• organisation;

•• the preparation and fair presentation of the finan-

or in the aggregate, they could reasonably be ex-

ments is the Guideline for annual reporting 650

•• partnerships and networks;

cial statements in accordance with the Guideline

pected to influence the economic decisions of us-

‘Charity organisations’ of the Dutch Accounting

•• an integrated approach;

for annual reporting 650 ‘Charity organisations’ of

ers taken on the basis of the financial statements.

Standards Board.

•• fundraising and communication;

the Dutch Accounting Standards Board; and for

•• ZOA’s context;

•• ZOA worldwide;

The basis for our opinion

•• disaster response.

We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our

Based on the procedures performed as set out

responsibilities under those standards are further

below, we conclude that the other information:

described in the section ‘Our responsibilities for the

•• is consistent with the financial statements and

audit of the financial statements’ of our report.

does not contain material misstatements; •• contains the information that is required by the

•• such internal control as management determines

possible that we may not detect all misstatements. Misstatements may arise due to fraud or error.

Materiality affects the nature, timing and extent

is necessary to enable the preparation of the

of our audit procedures and the evaluation of the

financial statements that are free from material

effect of identified misstatements on our opinion.

misstatement, whether due to fraud or error.

A more detailed description of our responsibilities is set out in the appendix to our report.

As part of the preparation of the financial statements, management is responsible for assessing

Amsterdam, 30 June 2018

the foundation’s ability to continue as a going

PricewaterhouseCoopers Accountants N.V.

We believe that the audit evidence we have

Guideline for annual reporting 650 ‘Charity or-

concern. Based on the financial reporting frame-

obtained is sufficient and appropriate to provide a

ganisations’ of the Dutch Accounting Standards

work mentioned, management should prepare

basis for our opinion.

Board.

the financial statements using the going-concern

Original has been signed by J.L. Sebel RA

APPENDIX TO OUR AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS 2017 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 Number of programme countries Volume per country Percentage income non-Project Grants Norm cost percentage total fundraising Norm costs of management and administration INCOME (X â&#x201A;¬ 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 Management and administration TOTAL EXPENDITURES

Balance of financial income and expenses SURPLUS/-DEFICIT

ADDED TO/ WITHDRAWN FROM Programme funds Continuity and allocated reserves TOTAL CHANGE IN RESERVES AND FUNDS

OTHER INDICATORS Percentage spent on objectives Liquidity

Actual 2014

Actual 2015

Actual 2016

Actual 2017

Budget 2018

Estimate 2019

Estimate 2020

12 2,320

12 3,120

12 2,387

14 2,333

14 1,982

14 2,429

15 2,360

27%

25%

5% 4%

4% 3%

9,596

11,680

9,229

12,757

10,940

12,000

13,000

8,074 26,260

17,352 34,667

10,765 30,035

10,380 33,201

13,005 27,868

11,500 34,000

11,500 35,400

137

983

276

156

100

44,067

64,682

50,304

56,495

51,813

57,600

60,000

30,387 8,074

17,352 40,473

10,765 39,020

10,380 42,941

13,005 35,551

11,500 42,500

11,500 44,750

1,793

1,835

1,813

1,832

1,841

1,850

1,900

1,062

1,248

1,441

1,284

1,305

1,400

1,450

41,316 -

60,908 -

53,039 138

56,437 -2

51,702 25

57,250

59,600

2,751

3,774

-2,597

136

350

400

737 2,015

2,771 1,003

-1,394 -1,203

-684 739

136

350

400

2,752

3,774

-2,597

136

350

400

91% 185%

93% 266%

92% 182%

93% 169%

93% 175%

94% 175%

Chapter 11 85

11.12 ANNEX B - BUDGET 2018 INCOME Income Income from private individuals Income from companies Income from churches and schools Income from government subsidies: - Project grants for consortium partners: - Project grants for ZOA Income from other non-profit organisations Total income raised Income in exchange for the delivery of products and services

Budget 2018 8,140,000 585,000 1,060,000

Actual 2017 5,643,265 598,796 1,376,841

Actual 2016 5,057,373 753,979 815,617

13,005,000 27,842,850 1,050,000

10,379,986 33.201.078 5.058.813

10,765,107 30,034,994 2,508,676

51,682,850

56.258.778

49,935,746

105,000

79,783

92,955

156,329

275,770

Other income

ADDED TO/WITHDRAWN FROM Programme Funds

Budget 2018

Future project spending

Actual 2017

Actual 2016

-683,516

-1,394,097

-14,483

-197,566

-14,483

-197,566

Appropriated reserves Appropriated financing reserves Programme financing Financing assets Appropriated reserves for future risks and project spending Pre-financing projects Disaster Response

-5,841

Programme development & innovation TOTAL INCOME

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

51,787,850

56.494.890

50,304,471

Budget 2018

Actual 2017

Actual 2016

13,005,000 32,750,000 45,755,000

10,379,986 40,046,749 50,426,735

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

Country programme reserves

2,174,001 626,910

2,423,996 470,240

48,556,387

53,320,971

Fundraising expenses

1,840,657

1,832,094

1,813,036

Management and Administration expenses

1,304,566

1,284,158

1,441,369

51,701,610

56,437,223

53,039,331

111,740

57,668

-2,734,860

TOTAL EXPENDITURES SURPLUS/-DEFICIT BEFORE FINANCIAL INCOME AND EXPENSES

Balance of financial income and expenses SURPLUS/-DEFICIT

2,122,512 502,686

25,000

-1,907

138,148

136,740

55,761

-2,596,712

75,000

Other

1,146,473

314,995

-266,717

-812

75,000

873,915

-1,009,606

61,740

-120,155

4,557

136,740

55,761

-2,596,712

Continuity reserves General continuity reserve TOTAL CHANGE IN RESERVES AND FUNDS

Preparation and Coordination from the Netherlands Education/Awareness raising

-219,785 -1,104,004

When everything slips away - Bella Shar

In 2017, Bella Shar (Myanmar) lost her coffee farm and a part of her house due to a land slide. Now she is trying to survive and build up a new farm again. “It was early in the morning, around 7 or 8 am., when I suddenly heard a very strange sound. I looked out of the window and saw trees falling down and land moving. My husband and I left the house immediately. We ran up the mountain and from a distance we saw part of our kitchen disappearing. Everything just fell down. I was panicking. It was terrible to see part of our house being destroyed. Six houses from our village just disappeared. The loss of my coffee farm is a disaster. I have no income this year, so I try to work for other farmers to get some money. I moved into another house, where I can live with some family members. But I am scared this will happen again. We are thinking now to move the whole village to a different place. This mountain is too dangerous. I am very happy ZOA came to the village after the land slides, helping us with some rice. Every month we get two packs of rice. It’s helping me and my family a lot. Thanks to ZOA we don’t have to worry about our daily food. Without this help we would be suffering, life would be very difficult.”

The cover photo pictures xxx the arrival of South Sudanese refugees in Uganda. Photo: Jilke Tanis

Colophon

ÂŠ 2018 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.ngo info@zoa.nl

Supervisory Board Dr. ir. H. Paul MPA, chair chairman Drs. J. B. Kamphorst Brand MPAMPA, MCMvice-chair Drs.AJ..Bouw, Mr. Kamphorst RA MPA Mr. Ing. B.J. J.H. van Putten, Dronkers LL.M Mrs. Drs. J.J.A. Olij - Haak Chief Executive Officer J. Mooij MBABoard Executive C. Lukkien - Chief Executive Officer INGvan A. account Wesselnumber - Chief (for Programme transfers Officer in The Netherlands): NL46 INGB 0000 0005 50 ING account number (for transfers in The Netherlands): ZOA isINGB NL46 registered 0000 with 0005the 50Chamber of Commerce under number: 41009723 ZOA is registered with the Chamber of Commerce under number: 41009723

Text XxxSytsma / Connect Communicatie (project management and copy Els writing), Jilke Tanis (the stories), Bertil Moraal (Finance Chapter). Photography Xxx Photography p. 32-33 Marike Blok. All other photos: ZOA Design IDD concept.communicatie.creatie I www.idd.nu Corrections Printed Hetty Vonk by(English) drukkerijand DeJacqueline BunschoterKooistra (general) Design The information idd.nu in this report may be reproduced (exluding the photos), provided ZOA is notified and this Annual Report is acknowledged as Printed the source, byZOA drukkerij wouldDe likeBunschoter to receive a copy of the publication. The information in this report may be reproduced (exluding 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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