BRAC Southern Sudan Annual Report 2009

realisingpotential

Southern SudanAnnual Report 2009

ABOUTBRACBRAC is a development organisation dedicated to alleviating poverty by empowering the poor to bring about change in

their own lives. We started out in Bangladesh in 1972, and over the course of our evolution, we have established

ourselves as a pioneer in recognising and tackling the many different realities of poverty.

BRAC achieves large scale, rapid change by working with individuals, families, communities and institutions to overcome

poverty. Our approach is comprehensive – with financial services, capacity building and livelihood development as well as

health, education and social justice – enabling people to realise their potential. Through continuous innovation to introduce

more cost effective solutions and adapting them for greater effectiveness, we scale up for immediate and lasting change.

We are pioneering a new kind of organisation, which integrates development programmes with social enterprises and

enables BRAC and individuals to become self-reliant. While using our southern based knowledge and expertise, we are

constantly learning from people, communities and countries where we work.

ContentsMicrofinance 04

Education 08 Health 12

Agriculture 16 Recruitment, trainingand research 20

Financial Statements 23

SOUTHERN SUDANAnnual Report 2009

Credit Officer Atong Ajak Mayen (26) records loan repaymentsat a microfinance group meeting in Bor in Jonglei State.

BRACin

SOUTHERN SUDANSince our launch in 2007, BRAC has grown to become the largest NGO and provider

of microfinance in Southern Sudan. We now operate 38 branches in seven states with

more than 22,000 microfinance members. Up to the end of 2009, we had disbursed

USD 5.67 million in loans to poor women. BRAC takes an integrated approach to

helping people rise out of poverty and realise their potential. We provide support

services in agriculture, health and youth education. BRAC’s programmes are bolstered

by rigorous research, monitoring and auditing. To build capacity, we comprehensively

train our members and staff. At the end of 2009, we employed 462 Sudanese (92%

women), many of whom are promoted within the organisation.

2009 was a challenging year for Southern Sudan

due to an escalation in conflict and violence which

resulted in numerous deaths and the

displacement of a large number of people. BRAC

is committed to standing beside the people of

Southern Sudan during these trying times and

working with them to further the country’s

development. Through our experience working in

various conflict-affected regions across Asia and

Africa, we understand the importance of

continuing development efforts during times of

conflict so that the poor are protected from further

effects of violence and uncertainty. We have

therefore continued to strengthen and expand our

programmes in Southern Sudan.

We are the largest development organisation in

the country and the leading provider of

microfinance. Our Microfinance Multiplied

approach serves as a platform on which our

unique, holistic development model is built. Our

focus is on improving the economic self reliance

of the rural poor, using microfinance as the

primary tool, reinforced by agriculture, health,

education and livelihood development support.

Agricultural development, in particular, is a priority

as food security, which was severely affected by

decades of civil war, became further exposed

under recent circumstances. Therefore, in 2009,

we expanded our agriculture programme into four

states and will be broadening the scope of our

activities by developing extension networks,

promoting uptake of new technology and scaling

up solutions to rural populations.

In all of our interventions, we place special focus

on the youth, who make up almost half of Africa’s

total population but are relatively neglected by

most mainstream development efforts. We are

currently working with adolescent girls to address

the vulnerabilities resulting from unemployment,

early marriage and pregnancy through

interventions in financial empowerment and life-

skills training.

Our partnerships in Southern Sudan - particularly

with Africa Loan Fund, Bank of Southern Sudan,

FAO, Hilton USA, KIVA, Petrofac, PSI, Strømme

Foundation, UN Capital Development Fund, UNDP

and WFP - are crucial to the sustainability and

growth of our work. With the continued support of

our partners and the strong involvement of our

stakeholders, I am confident that BRAC will be

successful in ensuring that Southern Sudan’s

poorest are given the opportunity to overcome the

prevailing crisis and work towards realising their full

potential.

(Sir) Fazle Hasan Abed KCMGFounder and Chairperson

Chairperson’sStatement

BRAC/ShehabUddin

microfinancelivelihood development services

“During the war my home was destroyedand my three-year-old daughter was killedinside in the bombing. With BRAC we arebuilding a new life. Before I took the loan Ihad many problems, trying to makemoney selling sweets in the school. Now Ican stay in my shop close to home andtake care of my children. I give thanks toBRAC because my business is growing.”

Joyce Jakuru (35), is a microfinancemember in Zendia Village, Juba. Shereceived her first BRAC loan in 2007 andopened a small shop. Now she earns amonthly profit of about 1,300 pounds(USD 570).

04/05BRAC Southern Sudan Annual Report 2009

Microfinance is at the heart of BRAC’sintegrated approach to alleviatingpoverty and helping poor SouthernSudanese women realise their potential.More than 22,000 women aremembers of 1,425 community-basedmicrofinance groups throughoutSouthern Sudan. They gather weekly invillages, towns and city neighbourhoodsto make repayments on their loans andapply for new ones.

“I built this building for my business, pay school

tuition for my children and I’m constructing my

house,” said Ajieth Nyanluak Garang, 28, who runs a

small restaurant in Bupthok Market, Bor, Jonglei

State. “I feel really happy because BRAC came to

Southern Sudan so our women can become self-

reliant.”

Ajieth began in business as a tea-maker, earning 150

pounds (USD 66) a month. With BRAC loans she

began preparing meat, fish and a local flat bread

called kisra. Now the mother of three pays four

workers 300 pounds (USD 132) a month each and

earns a monthly profit of 950 (USD 475). “I’ll make a

plan for saving. As the children grow up they’ll find

everything has been organised by their mother.”

Like Ajieth, borrowers are expanding their small

businesses with loans and other livelihood

development services that are central to our

multifaceted approach. Susan Louise Ayaa, branch

manager for microfinance in the Hai Gabat office,

Juba, said that in the space of three years,

borrowers have been able to scale up their loans

from 500 pounds (USD 220) to 800 (USD 350) to

1,300 (USD 570).

One of Susan’s group members, Beatrice Kojoki, 22,

has followed exactly that microloan trajectory in

improving her shop in Gabat Market selling plates,

cups, soap, salt, cooking oil, basins, nails and other

hardware. “Before BRAC I just put things I was selling

on a table. With my first loan I constructed this small

store where I could sell my goods.” At first, Beatrice’s

sales were 20 pounds (USD 8.75) a day; now her

daily revenue can reach 180-200 pounds (USD 79-

87.70). She faced a setback in May 2009 when the

government demolished squatter settlements in Juba

and she lost her home. “I used some of my loan to

build a new house. From this money I was also

paying school fees for my son, for eating and for

expanding the business. This money has really

improved my life.”

BRAC’s microfinance members are often able to

make big changes in their businesses from the first

loan. Carmela Bavowa Rebean, 42, sits among

sacks of beans, flour and other staples at the

Konykony Market in Bor. The mother of eight began

in 2008 with 500 pounds (USD 220). “I saw the

difference. I could buy a lot of sacks, build my family

home and pay school fees, which I couldn’t pay

before.”

“The challenge here is hunger,” said M. Golam

Mostofa, Microfinance Programme Manager, whilst

talking about expanding the microfinance model into

more remote areas. “People are eating once a day.

They are not working. There are problems with tribal

conflicts. They have no money but we provide loans

without collateral so they can do some business. We

need to move more into the interior where conditions

are worse. My satisfaction will be in reaching them

and helping them.”

Beatrice Kojoki (22), runs ageneral supplies shop inGabat Market, Juba, withsupport from BRAC. Her dailysales have increased from 20pounds (USD 8.75) to upto200 pounds (USD 87.70).

PROGRAMMEHIGHLIGHTS

“The conditions are tough in Southern Sudan. It’s hot and not always safe, but we arecommitted to doing something for the poorest of the poor in the country.” M. GolamMostofa (34), BRAC Microfinance Programme Manager in Southern Sudan

PROGRAMMEACHIEVEMENTS2009

38branches in seven out of ten states– Central Equatoria, EasternEquatoria, Jonglei, Lakes, Upper

Nile and Western Bahr el Gajal – up from 17branches in four states previously.

23,302members and 15,787 borrowersacross 1,425 groups added overthe last year.

306staff by the end of 2009 on the microfinanceteam, compared with 120 in 2008.

USD 2.27million disbursed during the year, bringing the cumulative total to USD 5.67 million.

BRAC's microfinance programme has been

designed to serve large numbers of poor people with

reliable access to cost effective financial services.

Programme ComponentsWomen's Groups: Community partnerships and

institution building are essential for poor people if

they are to change their economic, social and

political conditions. We deliver our Microfinance and

other programmes through organising groups of

poor women who come together to improve their

socioeconomic position.

BRAC microfinance branch offices conduct area

surveys and consult with community leaders and

local elders to select the 25-30 members of each

group. The group is then sub-divided into smaller

groups of five, each with their own elected leader.

The members of the small groups take co-

responsibility to solve peer repayment problems.

New borrower groups meet four times before any

loan disbursement takes place. After that, they meet

weekly to discuss credit decisions with their

dedicated BRAC credit officer and make their loan

repayments. BRAC provides training and technical

assistance to its members and others in the

community, empowering them to earn more income

from existing activities and start new ones.

MicroloansAt the core of the programme are microloans, which

are exclusively for the women participating in the

group process. Borrowers range in age from 20-50

with little or no education. BRAC lends to women

who are not served by other microfinance

institutions. Borrowers typically operate businesses

that provide products or services to their local

communities. Women with seasonal businesses,

PROGRAMMEDESCRIPTION

BRAC provides more than just microfinance. We use themicrofinance groups as a social platform to deliver scaled-up services in health, education, business developmentand livelihood support - all critical components needed toensure that poor people can break the cycle of poverty.

Achiek Kuol Ding runs amarket stall in Bor, SouthernSudan. She began thebusiness with her first BRACloan in June 2008 of 500pounds (USD 224) andreceived her second loan of800 pounds (USD 358) inMarch 2009. She has seen herprofits increase by 50%.

such as farming related activities, may also be eligible

for shorter term loans.

Sudan Recovery FundMicrofinance is not the only way to promote financial

development. The United Nations Development

Programme’s Sudan Recovery Fund for Southern

Sudan (SRF-SS) aims to facilitate a transition from

humanitarian aid to recovery assistance. In 2009, the

SRF-SS awarded BRAC the responsibility to

implement its small grants fund of USD 2.5 million to

as many as 70 national NGOs and community-based

organisations in all 10 states. BRAC has screened

these groups, supported their capacity building and

direct implementation of agriculture, education, water

and other initiatives. The objective of the projects –

47% for agriculture-is to make quick returns for the

community.

Khan M. Ferdous is managing BRAC’s coordination

efforts in Southern Sudan and says the grants will be

distributed in two rounds of USD 1.25 million. “We

want to release the funds as soon as possible.

Already we’ve selected our monitoring staff in all 10

states. Our new colleagues are very young and

will do their best. We are committed to perform well,”

he said.

Md. Abu Bakar Siddique, Country Manager, said the

World Bank will choose some of the projects for

longer-term funding. “This can be a bridge to provide

support to community projects in the interior of

Southern Sudan. It is very important.”

Ajieth Nyanluak Garangruns a small restaurantwith the help of a BRACloan in Bupthok Market,Bor. She is now able tohire workers and earns amonthly profit of 950pounds (USD 417).

Christen Jacoba Monicaserves a customer in hershop which she runswith the help of a BRACloan in Kator Village,Juba.

MicroloansMost popular loan usesRetailing – grocery, hardware stores etc.

Running a bar/drinks shop

Food cooking and vending

Local beer brewery

Charcoal selling

Selling raw fruits and vegetables

Selling second hand clothes/shoes

Running a beauty parlour

Vegetable cultivation

Poultry and livestock rearing

Tailoring


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educationalternative learning programme

“I never went to school before but I wasgiven an interview by the BRAC teacher.Then I was admitted to the school andBRAC gave me books and a pen forwriting. I like mathematics and English.Social studies and science are moredifficult. I want to go to university andbecome a teacher.”

Rose Yoture (10), student of grade 2 in aBRAC non-formal primary school inMunuki, Juba. Her father and mother bothdied during the war and she is beingraised by her grandmother.

In post-conflict Southern Sudan, BRAChas pioneered a non-formal educationprogramme for children who never hadthe chance for an education or whohad dropped out of primary school. Sofar we have opened 110 “second-chance” learning centres in Juba, Torit,Bor and Rumbek, with financing fromthe Strømme Foundation and Petrofac.The goal is to prepare the students toenter the formal government schoolsystem at the grade 5 level.

If you are a young girl living in Southern Sudan today,

you only have a 1% chance of completing your

primary education. This means that every year only

500 girls complete grade 8 from the 64,000 young

girls who are eligible. And out of those 500, only half

will be taught by a trained teacher. As a result, nearly

90% of women in Southern Sudan are illiterate. There

are also only 21 secondary schools in a region about

the size of Eastern Europe.

Our approach to education draws from the

innovations of our low-cost, non-formal primary

education model that operates nationwide in

Bangladesh and Afghanistan, but adapts to meet the

needs of the situation in Southern Sudan.

BRAC has been working on education in Southern

Sudan since 2002 with UNICEF assistance in

curriculum design and operational management. All

the resulting schools were located in the rural areas

and enrolled only girls.

In 2008, we launched our own programme with the

target of opening 1,000 non-formal primary schools

within five years. Nine-year-old Chol Makuek is a

student at the BRAC school in Cuei Atem Village,

Bor. “I’d like to be a leader in the world. I want to

learn what I don’t know. I like science because I learn

about keeping my body clean. I want to be a doctor.”

We have developed a condensed curriculum that

fast-tracks the students back into the formal system

within three years. Children attend the school six

days a week, finishing a grade in nine months and

then moving to the next grade without a vacation.

The programme targets children aged between six

and 11 years who never enrolled in school before or

who dropped out before attaining the basic skills of

reading, writing and arithmetic. Many never had any

opportunity to attend a school before because of

decades of civil war and insecurity.

At 14, Foni Mary Justin is an orphan in Juba who

never went to school. Her mother died in 1996 and

her father succumbed to TB in 1999. Foni is in grade

2 now at the BRAC school in Munuki. “I like English

and math.”

Joan Edwina William, 25, has been a community

organiser in the education programme in Juba for

two years. She also is studying economics at Juba

University and wants to become an accountant. Joan

spent the war years with her siblings in Uganda and

came back in 2007. She supervises 10 schools,

covering the ground between them on foot. “The

pupils are getting something from the education as I

see them improve. Now they’re able to read.”

Joan Edwina William (25), hasbeen a community organiser inthe education programme inJuba for two years.

PROGRAMMEHIGHLIGHTS

“Our biggest success was to be able to open all the schools that we planned. Theeducation authorities of Southern Sudan wanted them open by June and we did it. Wecompleted the training courses for programme staff and teachers. And UNICEF providedthe educational materials.” Md. Kabir Ahammed, manager of the education programme


PROGRAMMEACHIEVEMENTS2009 110

schools in our education programme in 2009,up from 50 in 2008. The 60 new schools arein Juba in Central Equatoria state, Bor inJonglei state and Rumbek in Lakes state.

3,300more out-of-school children (of whom 62% are girls) identified and enrolled throughour community organisers from the poorest households. Some 35-40% are thesons and daughters of our microfinance members. We continue to focus on our goalof helping Southern Sudan achieve the Millennium Development Goal of universalprimary education and gender parity in primary schools by 2015.

The goal of BRAC's education programme in

Southern Sudan is to educate children who have

dropped out of school or never enrolled so they can

enter the formal government school system. Our

education programme follows the government

curriculum of the four-year lower primary cycle.

We admit 30 to 35 pupils per school and employ

one teacher to provide a four-year school cycle. We

follow the Government Curriculum. Once pupils

reach grade 4, they can be mainstreamed into public

schools at the grade 5 level. All learning materials are

provided free of charge. Teachers are recruited

locally. Prospective teachers are contacted by BRAC

staff and encouraged to submit an application. We

hire only women who are established as local

residents and have a minimum of eight years

schooling.

The main features of our approach are:� Relevant curriculum providing basic education and

life skills� No financial cost for students or guardians� School timing flexibility� Operating in a close proximity to student's house� Small class sizes managed by female teachers� Little or no homework� Child-friendly teaching environment� Close and supportive supervision� Close involvement of parents and communities in

school management


One of the distinctive features of BRAC’s approach is itsinvolvement of a wide range of stakeholders includingcommunity members, local government officials, andprovincial and central education officials.

“I like English and math”says Foni Mary Justin(14), who is getting aneducation for the first timeat the BRAC school inMunuki.

We conduct house to house surveys to identify

prospective students and teachers and cross check

our findings with local education officials to identify

drop-outs and prevent duplication.

Potential teachers are hired by BRAC and given 20

days of basic teacher training designed to be

proactive and participatory, placing emphasis on

practice and role-play teaching. Teacher training

includes topics such as the basic concepts of

education, child psychology, different teaching and

learning techniques and how to deal with children

with special needs.

One female community organiser from the locality is

recruited to look after 10 schools. She visits each

school twice a week to ensure the attendance of the

learners and the progress of learning.

Teachers also receive monthly refresher training

throughout the school cycle to hone and strengthen

their abilities. All teachers are women, which helps

make parents comfortable sending their daughters to

school. This also serves to increase the status of

women in the community.

A school building is rented in the local community,

normally a one-room structure made of bamboo or

mud with a metal roof, no further than one kilometre

walking distance from the students' houses.

Students are taught a curriculum that encompasses

both basic primary education as well as relevant life

skills, such as topics related to health and agriculture.

Flexible school times and a no-homework policy

allow children to complete daily chores and other

productive activities. Zero financial costs to parents

and students plus a relevant curriculum result in

extremely low drop out rates.

BRAC continues to work with the Government of

Southern Sudan to achieve education for all,

especially for girls. The programme contributes to the

basic education of the most deprived children in

Southern Sudan, while also promoting increased

female participation in education, not only as

students but as teachers and paraprofessionals.


NEW: ADOLESCENT GIRLSINITIATIVE PROGRAMMEEducation is a major component of BRAC’s Adolescent GirlsInitiative (AGI) in Southern Sudan. With funding from the WorldBank, we will open 100 clubs in 2010 through 10 branches in fourstates. The programme’s objectives are to empower theadolescents aged 15-24 socially and financially. There are sixcomponents – a safe place for socialisation, life-skills training,livelihood training, financial literacy, savings and credit services,and community sensitisation.

Abu Bakar Siddique, BRAC Country Manager, said the livelihoodeducation will include teaching skills for both self-employment andwage employment. “Not all girls will have opportunities to invest intheir own enterprise, so we will be looking to provide training inareas such as hotels and tourism. We will contact employers toassess the demand.”

For those adolescents who want to start their own businesses,we’ll provide money through microcredit. BRAC’s 20 years ofexperience working with adolescent goups in Bangladesh hasshown their average loans are much less than for adults.

The World Bank has chosen the BRAC Research and EvaluationUnit for East Africa programmes to undertake a baseline surveyand ingoing evaluation of the impact of AGI.

healthlivelihood development services

“I am benefiting a lot because theCommunity Health Worker (CHW) andCommunity Health Volunteer (CHV) visitme and show me how to lead a healthylife. With their help, I can seeimprovements in my family’s health. We getour drinking water from the Nile and thenuse WaterGuard from the CHV to purify it.When I was pregnant, the CHW came andtook my blood pressure. She referred meto hospital because it was a bit high.

Hayat Vicky Ismail (27), of NyokuronVillage East, Juba is a patient of BRAC’shealth programme.


PROGRAMMEHIGHLIGHTS

“I want to improve our country. The mothers need knowledge on how to care for theirchildren. I give thanks to BRAC because people are now learning something about firstaid in their homes.” Joy Micah Tumalu, 43, community organiser, Munuki branch, Juba.She spent the war years as a refugee in neighbouring Central African Republic.

Each CHV has overallresponsibility for 150 to 200households in her area thatshe will visit, all within onekilometre of her home. A CHVchecks on the health ofhousehold members, offerstreatment for basic illnesses,and checks to see if there arepregnant women in the houseto refer to CHVs for anantenatal checkup.

BRAC takes a multifaceted approach todelivering essential health care inSouthern Sudan. We focus on theprevention of malaria, tuberculosis (TB),and HIV/AIDS, the reduction of infantand under-five mortality rates,increasing accessibility to health bytaking health care to the doorsteps ofthe people, and improving utilisation ofgovernment and private health facilities.

Like many other African countries, Sudan’s

healthcare system is weak and decades of civil war

have made the situation worse. With millions of

internally displaced people returning to their homes

and high levels of extreme poverty, a lack of access

to stable food sources has left 26% of the population

undernourished.

The health care situation in Southern Sudan is much

bleaker than for the rest of the country. Under-five

mortality is considerably higher and more children are

susceptible to die from easily treated illnesses such

as malaria (26%), pneumonia (19%) and diarrhoea

(22%). For adults, the numbers of malaria cases in

the south are 500 per 1000 people, which is more

than double the estimated numbers for the north.

The World Health Organisation estimates that health

coverage is only 30%. Only 5% of pregnant women

in Southern Sudan will be attended by a skilled

health care professional when giving birth.

At the centre of BRAC’s approach are the

Community Health Volunteers (CHVs), who are

women selected from BRAC’s microfinance groups

and trained to provide basic health care. Every day,

120 dedicated CHVs provide door-to-door service to

the communities served by eight BRAC branches in

the Juba area. In 2010, the health programme will be

expanded to three branches in the Bor area in

Jonglei state.

In addition to their own small businesses the CHVs

can also earn a small income from selling health care

products, such as condoms, birth control pills, water

purifiers, antihistamines, antacids, deworming

medication, analgesics and other over-the-counter

medicines. For serious cases, they refer patients to

health facilities.

“Since I started to work with BRAC, people know me

in the community, and even some of them call me

‘doctor’ because they take medicines from me and

get advice,” said CHV Sunday Flora Eluzai, 30, in

Juba. She has more than 150 households in her

catchment area and visits about 15 households a

day.

CHVs are supported and supervised by Community

Health Workers (CHWs), who are staff members

responsible for implementing the BRAC health

programme at the branch level. Among their duties,

they go into the field to help CHVs conduct

community Health Forums on such topics as

sanitation, hygiene, HIV/AIDS and malaria.

Mosharraf Hossain, area health coordinator, said the

free antenatal services began in July 2009 and every

month up to 350 checkups are performed. “Also

every month we organise refresher training courses

for this purpose,” he said. The health workers check

pregnant women for danger signs of oedema,

anaemia and convulsions, the position of the foetus,

and offer advice on proper nutrition and rest.

“A majority of pregnant women helped by this service

live very far from the nearest health facility and benefit

enormously from this home visits,” Mosharraf Hossain

said.


branches being operatedunder BRAC’s health initiativein 2009.8

60extra Community Health Volunteers(CHVs) trained to bring essentialcare services to their

neighbourhoods bringing the total number ofCHVs to 120 by year end. CHVs treated1,270 patients during the year.

1,169health forums conducted by CHWsin 2009.

1,626free in-home antenatalcheckups performed byour team of 17

Community Health Workers (CHWs) under anew BRAC programme that recognises poorwomen can’t afford transportation to healthfacilities.

The BRAC Essential Health Care (EHC) programme

in Southern Sudan is a scalable model of community

health care.

The overall goal of the EHC programme is to improve

health conditions and increase access to health

services by providing basic health services in

communities where BRAC has an established

microfinance group. One member of each BRAC

borrowing group is designated and trained as a

Community Health Volunteer (CHV). CHVs serve the

health needs of the entire community, with particular

attention to poor women and children.

Programme Objectives

� To increase reproductive health care services by

raising awareness, ensuring antenatal care (ANC)

and post-natal care (PNC) visits, and facility-based

deliveries.

� To reduce the incidence of malaria, especially

among pregnant women and children, by

enhancing control and prevention.

� To bring positive behavioural change for

prevention of HIV/AIDS and ensuring access to

HIV/AIDS services through community sensitisation

and participation.

� To develop a community based approach to

increase and sustain TB case detection and cure

rate as per the Millennium Development Goals.

� To improve basic sanitation and hygiene by

introducing behavioural change and ensuring

access to safe water and sanitary latrines.

� To mobilise women and disseminate information

through village meetings and home visits.

� To collaborate with the Government to further

facilitate and strengthen the implementation of

national tuberculosis, malaria and immunisation

programmes.


BRAC’s Community Health Workers and Volunteers servethe health needs of the entire community, with particularattention to poor women and children.

Community organiser forHealth Joy Micah Tumalu,talks with members of herhealth team in NyokuronVillage East, Juba.

PROGRAMME COMPONENTS

Reproductive Health CareOne of BRAC's primary concerns is to improve

reproductive health care awareness and service

utilisation. To fulfill this objective, Community Health

Volunteers (CHVs) identify pregnant women during

their household visits and inform the Community

Health Worker (CHW). The CHWs perform antenatal

checkups in the home, raising awareness of

pregnancy care and pre-natal danger signs.

The CHV keeps a check on whether her clients have

taken their Tetanus Toxoid (TT) vaccine. She also

raises awareness of the importance of Voluntary

Counselling and Testing (VCT) for HIV/AIDS, and

Preventing Mother to Child Transmission of HIV

(PMTCT).

Malaria ControlDuring household visits, the CHV identifies suspected

cases of malaria and refers the patients to the

nearest government health centres. She follows up to

determine test results and see if the patient is taking

their anti-malarial medication.

A relative of the patient is put in charge of supervising

the drug intake according to their prescription. The

CHV then conducts a follow-up visit to ensure the

patient's recovery and to make sure that the patient

has not developed further complications. The CHV

keeps records of this information in her household

visit register.

We are delivering home-based management of

malaria as part of the Child Survival Programme of

the Ministry of Health, Government of Southern

Sudan. This is a project in four counties of Lakes

state. Through a community network of our CHVs,

treatment for malaria in children up to five years of

age is provided through artemisinin-based

combination therapy (ACT), relevant information and

counselling as well as follow-up and referral for

severe cases.

TB ControlCHVs implement a well-tested, community-based

approach for increasing and sustaining TB case

detection and treatment.

During household visits, CHVs ask simple questions

related to suspected TB cases (based on

symptoms). When a suspected TB victim is

identified, the CHV motivates that person to be

tested at a nearby government facility. She explains

the dangers that TB can pose to the sick person as

well as the rest of the family. She then follows up on

the patient to determine the test results and advise

accordingly.

Family PlanningDuring regular household visits, the CHV mobilises

and motivates women to use modern methods of

contraception. She provides clients with birth control

pills and condoms. For other temporary and/or

permanent methods, couples are referred to

government primary and secondary healthcare

facilities.

Community Health InitiativesBRAC takes a multi-pronged approach to community

health education. We offer community health forums

on issues such as a malaria, TB and HIV prevention,

maternal health, family planning and sanitation.

Basic Curative ServicesCHVs are trained to diagnose and treat some basic

ailments such as diarrhoea, dysentery, common

cold, helminthiasis, anaemia, ringworm, scabies,

hyperacidity and angular stomatitis. They refer

individuals with suspected conditions to local public

and private health facilities. CHVs earn a small

income by selling over-the-counter medicines to

patients.


NEW INITIATIVESBRAC has been selected to be the survey

coordinator and implementer for a malaria

prevention programme covering four counties

with a population of 355,000 in Lakes State.

BRAC is setting up a field office and providing

education efforts, training and workers to

distribute home-based management of

malaria.

Community-based distributors will provide

artemisinin-based combination therapy (ACT)

medication to children under five while

referring other patients to the nearest health

facilities. It is part of a campaign coordinated

by the international health organisation PSI

and funded by the Global Fund The Global

Fund to Fight AIDS, Tuberculosis and Malaria.

agriculturelivelihood development services

“I stayed here during the war. We hid in thebushes and couldn’t grow food. BeforeBRAC I couldn’t grow enough for my familyand only one child was in school. WhenBRAC came, they supplied me with seedsand tools and also food to feed us. Somepeople saw what we were doing andjoined us. Now all my children are inschool and we get a little income.”

Abuk Nyandner Nyuon (37), is a mother offour. She has become the leader of thedemonstration farmers on the Nile River inBor county.


PROGRAMMEHIGHLIGHTS

“BRAC has changed my life by providing seeds and food and tools for my farming. As anextension worker, I teach the farmers how to use modern techniques. I feel confidentand happy because my people are getting support and skills in agriculture.”James Mawei Mayom (35), agriculture entrepreneur/extension worker, Jonglei state

With an estimated 70% ofSouthern Sudanese engagedin agricultural work, BRAC isproviding complete agriculturalassistance to workers in thisarea.

BRAC launched an innovative pilotproject in 2008 on the banks of the NileRiver near Juba – an eight-acrecollective demonstration farm usingmodern agriculture methods where theproduce of 27 participating localfarmers went to their cooperative. Itssuccess led to an expansion in 2009 tofour states and a broadening of theinitiative to include individualdemonstration farmers as well asgeneral farmers.

The programme is our response to Southern Sudan’s

food crisis. More than 70% of Southern Sudanese

are engaged in agricultural activities for their

livelihoods and yet most food produce is imported

from neighbouring countries.

The objectives of the agriculture programme are to

increase food security, employment and income

generation; and ensure the utilisation of fallow land,

the diversification of cropping patterns; introduction of

modern technology and the use of organic pesticide,

Integrated Pest Management, manure, etc.

During the long civil war, there was widespread

destruction of farms and essential infrastructure. The

farming communities are slowly recovering but face a

number of problems including low crop yields per

hectare, a lack of availability of high-quality seeds,

and under-utilisation of low-cost irrigation methods.

To tackle these problems, we have linked with

partners such as the UN’s Food and Agriculture

Organisation (quality seeds and tools), the World

Food Programme (food to sustain the farmers as their

crops grow), and the Bangladesh Battalion of the UN

Mission in Sudan (engineering, preparing fields with

bulldozers and tractors).

In selecting the farmers for the programme, we target

returnees and rural poor with active household

heads, especially women. Other vulnerable groups

we reach include orphans, widows, people with

disabilities, single parents and demobilised soldiers.

For the demonstration farms, we arrange to level

the land, plough the fields and provide high-quality

seeds, tools and irrigation. The farmers are trained

in line planting, plant spacing, proper weeding and

other techniques. Severe drought was a problem

throughout Southern Sudan in 2009, but BRAC’s

irrigated fields produced around double the yields

of farmers outside the agriculture programme.

“BRAC has eradicated poverty from my life,” said

Dabora Khor Kelei, 57, leader of the collective

demonstration farmers on the edge of the Nile River

in Bor county, Jonglei state. BRAC established the

10-acre farm in 2009. “I want BRAC to keep up

this effort.”

The 20 experienced farmers range in age from Ajok

Anyieth Awoul at 28 to Amour Deng Ayom at 60. “I

want to dig even at night,” said Amour. “We did not

know each other before,” said Dabora. “When we

started the garden we started knowing each other

gradually. Unity is not a simple thing. We need to

keep united for our vision.”

BRAC’s agriculture programme has also attracted

the interest of other NGOs and the Southern

Sudan government. “The Minister of Education told

us to spread this model in all 10 states,” said

Shawkat Hasan, BRAC’s Programme Manager,

Agriculture.


732the total number of workers in agriculturecomprising of 80 farmers on the four collectivedemonstration farms, 200 individual demonstrationfarmers and 400 general farmers. To support thefarmers, we received seeds and tools from theUN Food and Agriculture Organisation, and foodfrom the World Food Programme.

52agriculturalentrepreneurs/extension workers

appointed; 36 governmentfield-level agriculture stafftrained in 2009.

collective demonstration farms in fourstates up from one small pilot projectnear Juba in Central Equatoria. Thethree new states in which weexpanded into are Eastern Equatoria,Western Equatoria and Jonglei.

4

The agriculture programme addresses the problems

of poor crop productivity, lack of resources and large

areas of fallow land in post-conflict Southern Sudan.

We are evaluating three approaches to see which is

the most effective: collective demonstration farms,

individual demonstration farms, and support for

general farmers.

Collective Demonstration FarmsBRAC established four collective demonstration

farms, each on 10 acres of land. Twenty local

farmers were selected from the community to work

on each demonstration plot. They are split into two

groups of 10 farmers and come every day to work

the farm. All the produce from the farm goes to the

farmers' cooperative. BRAC coordinated developing

the land, providing a water pump so the farmers can

produce crops during the dry period, and giving

technical support with the help of local government

officials. By seeing better results from improved

seeds and effective agricultural tools, we hope other

farmers will be encouraged to cultivate production on

their fallow land.

Individual Demonstration FarmsDue to 20 years of internal conflict and civil war in

Southern Sudan, huge areas of land were left fallow.

When farmers returned they lacked the resources to

get restarted. BRAC launched demonstration projects

in four states to encourage crop cultivation on fallow

land. We created 200 crop demonstrations with the

individual farmers of the communities. Land size for

each demonstration is one acre. BRAC provides

improved seeds, tools, training and also technical

support. The focus is on cultivation of high-yielding

crops, such as maize, sorghum and vegetables.


BRAC’s agriculture programme aims to develope post-conflict Southern Sudan’s nascent agriculture sector using amulti-pronged approach engaging local talent at all stages.

The agriculture sector in post-conflictSouthern Sudan suffers from largeareas of under-utilised land, poorcrop productivity and a lack ofresources. Currently BRAC isevaluating three approaches toovercoming these challenges bysetting up collective demonstrationfarms, individual demonstration farmsand by supporting general farmers.

General FarmersGeneral farmers grow crops on small holdings near

their homes. Generally the land size is a half acre or

less. They cultivate sorghum, sesame, ground nut,

vegetables, etc. with seeds provided by BRAC. We

also provide training and tools. The total number of

general farmers is 400 - 100 from each state.

BRAC also provided seeds and technical support to

other farmers for proper utilisation of homestead land.

These farmers cultivated sesame and ground nuts as

well as vegetables on a small piece of land less than

half an acre. In 2009 the total number of these

farmers was 2,646: 660 in Juba, 668 in Torit, 958 in

Bor and 360 in Yambio County.

AGRICULTURE SUPPORTINITIATIVESAgriculture Entrepreneurs/Extension Workersand Programme OrganisersBRAC appointed 52 agriculture

entrepreneurs/extension workers and eight

Programme Organisers in the four demonstration

locations to provide support to the selected farmers.

They coordinate programme implementation at the

area office level, organise training for farmers, ensure

timely input supply to farmers, and also conduct

overall programme supervision. The agriculture

entrepreneurs/extension workers received 12-day

advanced training in modern agricultural practices.

They received seeds and tools from BRAC for their

own cultivation. The Programme Organisers also

received training in agricultural practices.

Capacity development for government staffStaff of the Ministry of Agriculture of the Government

of Southern Sudan needed help with knowledge and

skills related to human resources, office management

and capacity building. BRAC provided appropriate

training for 36 staff at the county level.

Training of FarmersIn addition to providing poor women with investment

capital for their small-scale farming activities, BRAC

offers training and support on modern farming

techniques that can greatly increase their profits.

Small holder and marginal farmers were taught in

their existing farm for 12 days through three different

stages of the cultivation period, and on crop

production practices and techniques. Some 400

general farmers are trained and agronomists assisted

them to choose appropriate crops, ensure correct

planting, spacing, weeding, and post-harvest

management.

BRAC field staff continuously supervised and

monitored the cultivation processes, including

operations such as Integrated Pest Management that

farmers were encouraged to adopt.


SUPPORT FROM WORLDFOOD PROGRAMME ANDTHE FAOBRAC distributed 200 metric tonnes of food

from the World Food Programme among 732

farmers to help these farming families for six

months while their crops were growing.

BRAC technical staff also ensured the timely

supply to the farmers of improved seeds and

tools provided by the United Nations’ Food

and Agriculture Organisation (FAO). Such

inputs are not always readily available in

Sudan. The FAO equipment included 24

treadle pumps and four diesel pumps for

irrigation. Agriculture Entrepreneurs/Extension

workers look after the pumps and supply

them for a fee to the farmers according to

demand.

Members of a collectivedemonstration farm withirrigation pipe on the NileRiver in Bor county, Jongleistate.

recruitmenttraining

and research

At the Country Office in thecapital city of Juba, local BRACstaff collaborate with colleaguesfrom Bangladesh on variousdevelopment initiatives.


BRAC’s research findings area critical means ofcommunicating with wideraudiences about BRACexperiences on what doesand does not work. In 2009we presented papers atconferences in Washington,DC, and Kampala, reportedon our findings to fiveworkshops for programmestaff at BRAC area offices,and emailed reports topartners, staff and universities.

RECRUITMENTBy the end of 2009, BRAC was employing 462

people from Southern Sudan, 92% of whom were

women in their 20s or 30s looking for the fast career

trajectory that BRAC offers our staff. Jobs that were

advertised and filled in 2009 included credit officers

and branch managers, school supervisors, health

workers and agriculturalists. In addition to these staff,

BRAC engaged 36 expatriates and sector specialists

for the smooth operation of our programmes.

Often, those hired as a credit officers for our

microfinance programme can quickly progress to

become branch managers and then area managers.

Some women start as volunteers – such as a

community health volunteer – and can go on to be

promoted to full-time paid positions. In the last 12

months, we promoted 39 women to managerial

positions.

Training is the backbone of BRAC’s programmes in

Southern Sudan. As BRAC hires new staff, many of

them straight out of college, it is critical to provide

them with sufficient orientation and training. In

addition, BRAC believes in constantly investing in

upgrading existing staff, helping them learn new skills

and grow within the organisation.

All BRAC’s courses are conducted by professional

facilitators who have considerable experience in

Bangladesh and internationally.

CAPACITY BUILDINGBRAC builds capacity through all our programmes. For

example, in the education sector, we open schools in

disadvantaged areas where education services are

weak or non-existent and recruit and train staff and

teachers. In health care, the focus is on providing

primary health care and training Community Health

Workers (CHWs) and other health-care staff. Water

and sanitation projects will focus on the immediate

needs of communities as well as facilitating the

development of water management committees and

other community services.

RESEARCH AND EVALUATIONBRAC’s work in Southern Sudan benefits from a

regional Research and Evaluation unit for East Africa

that has been established in Kampala, Uganda. In its

second year of operation, the unit grew significantly in

terms of staff and projects undertaken, shifting its

focus from data collection in 2008 to analysis in 2009.

The unit is an in-house but independent facility

supporting BRAC’s existing development programmes

in Uganda, Tanzania and Southern Sudan with

continuous and rigorous evaluation. The unit provides

analysis of emerging issues so we can continue to

innovate and become more effective.

With the addition of two researchers in 2009, there

are now five permanent staff, plus field manager,

survey quality controller, data manager and 30 data-

entry operators. “Whenever we have a big survey we

hire around 50 data collectors and supervisors as field

staff,” said Research Manager Abebual Zerihun.

In 2009, the unit conducted three impact evaluations

to measure the effects and extent to which

programme goals were achieved, five formative

studies to help create programmes specific to the

needs of target groups and ensure programme

acceptability and feasibility, and 11 operational studies

to aid in programme operations and improvement.

Training CoursesNo. of participants 2009Microfinance Management Training 149

Finanacial Management Training 29

Microfinanace Refresher Course 14

Operation Management Course for

Micro Enterprise & Lending Programme 4

Basic Training on Health 136

Operation Management Course for

Education Programme 11

Education Basic Training 20

Training on Agriculture Practices 680

Training for Extension Workers 52

Total Number of Trainees 1,095

1 What is the impact of programmeparticipation?

2 How sustainable are the activities rununder each programme?

3 To what extent do programme membersbenefit from BRAC’s interventions?

4 Is the “multiplying” effect oncommunities conditional onthe availability of acombination of BRACprogrammes, such asmicrofinance plusagriculture?

5 How successful areBRAC’s targetingstrategies in reachingthe poor?

6 What structural changesdo we have to adopt inservice delivery to reachremote areas?

six big research questions

Audited

FinancialStatements

of BRAC Southern SudanYear ended 31 December 2009

Auditors’ Report

We have audited the accompanying Balance Sheet of BRAC Southern Sudan as of 31December 2009 and also the related Income and Expenditure Statement and Statementof Cash Flows for the year then ended. The preparation of these financial statements, arethe responsibility of BRAC Southern Sudan’s management. Our responsibility is to expressan opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing (ISA).Those Standards require that we plan and perform the audit to obtain reasonableassurance about whether the Financial Statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the Financial Statements. An audit also includes assessing the accountingprinciples used and significant estimates made by the management, as well as evaluatingthe overall Financial Statements presentation. We believe that our audit provides areasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all materialsrespect, the financial position of BRAC Southern Sudan as of 31 December 2009 and theresults of its operations and its cash flows for the year then ended in conformity with theaccounting policies summarised in Note-2 of the financial statements.

Dhaka, 07 April 2010 J.R. CHOWDHUDRY & CO.Chartered Accountants


BRAC Southern Sudan

BALANCE SHEETAS AT 31 DECEMBER 2009

Notes 2009 2008SP USD SP USD

Property and assetsFixed assets 3 473,131 212,897 241,604 113,195Loans to group members 4 3,903,565 1,968,055 3,713,552 1,856,776Grants and accounts receivable 3,381,923 1,457,725Advances, deposits and prepayments 5 869,048 374,590 781,814 367,464Cash and bank balances 6 20,610,655 8,883,903 13,339,060 6,637,184

29,238,322 12,897,170 18,076,030 8,974,619

Capital and liabilitiesGrants received in advance 7 2,569,305 1,174,927 2,295,061 1,144,574Deferred income 8 421,547 189,261 190,767 87,846Term loan 9 18,044,951 7,777,996 7,805,458 3,728,729Other current liabilities 10 3,763,734 1,604,543 3,677,801 1,960,765Loan security fund 11 1,146,888 494,348 904,034 452,017Capital fund 12 3,291,897 1,656,095 3,202,909 1,600,688Total current liabilities 29,238,322 12,897,170 18,076,030 8,974,619

The attached notes form an integral part of these accounts.

Executive Director Director FinanceBRAC International BRAC International

BRAC Southern Sudan

STATEMENT OF INCOME AND EXPENDITUREFOR THE YEAR ENDED 31 DECEMBER 2009

Notes 2009 2008SP USD SP USD

IncomeService charges on loan 2,300,314 991,515 1,006,043 503,022Other income 13 1,541,567 664,469 180,346 89,301

3,841,881 1,655,983 1,186,389 592,323

ExpenditureSalary and benefits 2,216,697 955,473 803,150 398,155Travelling and transportation 572,927 246,951 167,660 83,233Training and development 291,370 125,591 126,316 61,545Rent, utilities and satationery 751,419 323,888 310,480 153,114Maintenance and general expenses 590,296 254,438 252,220 125,466Reporting and data processing 796 343 215 100Material development 42,042 18,122 42,054 19,560Research and development 38,095 16,420 1,875 872Operating expenses 232,070 100,030 149,833 69,690Student books and kits 45,114 19,446 83,295 38,742HO logistics and management support 572,718 246,861 514,532 255,792Borrowing costs 14 1,291,494 556,678 418,412 209,206Deal costs 386,830 193,415Revolving fund for health volunteers - - 9,955 4,630Loan loss provision 15 470,556 202,826 217,492 108,746Depreciation 59,150 25,496 22,771 11,354Total expenditure 7,174,744 3,092,562 3,507,089 1,733 ,619

Net operating surplus/(deficit) (3,332,863) (1,436,579) (2,320,700) (1,141,296)Donor grants 2,887,851 1,244,763 2,460,655 1,211,275Net surplus/(deficit) (445,012) (191,816) 139,955 69,979Other comprehensive income/loss(Foreign currency loss) (2,142,694) (923,575) - -Net Surplus after adjustment of other 4 4 4 4comprehensive income/loss (2,587,706) (1,115,391) 139,955 69,979

The attached notes form an integral part of these accounts.

Executive Director Director FinanceBRAC International BRAC International


BRAC Southern Sudan

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2009

2009 2008SP USD SP USD

Cash flow from operating activitiesSurplus of income over expenditure (445,012) (191,816) 139,955 69,979Adjustment to reconcile changes in net assetsto net cash provided by operating actiities:Loan loss provision 470,556 202,826 217,492 108,746Depreciation on fixed assets 59,150 25,496 22,771 11,354

Adjustment for other accountsIncrease in loan security fund 242,854 42,331 659,756 332,857Increase in group members savings deposits - - - -Increase in receivable (3,381,923) (1,457,725) 792,081 386,381Increase in current liabilities 85,933 (356,222) 3,610,374 1,927,875Increase/(decreae) in advances, depositsand prepayments (87,234) (37,601) (758,323) (356,673)Increase in deferred income-investment in fixed assets 4 4 4 4Net cash (used in)/ provided by operating activities (3,055,676) (1,772,711) 4,684,106 2,480,519

Cash flow from investing activitiesIncrease in loan to VO members (509,572) (240,734) (2,860,354) (1,442,047)Increase in fixed deposits (4,900,000) (2,000,000) (2,060,000) (1,000,000)Purchase of fixed assets (294,432) (125,088) (216,081) (100,503)Net cash (used in)/ provided by investing activities (5,704,004) (2,365,822) (5,136,435) (2,542,550)

Cash flow from financing activitiesGrant received during the year 3,367,808 1,363,786 4,141,220 2,050,884BRAC contribution - - 3,000,000 1,500,000Grant utilised during the year for:Operational expenditure and microfinance (2,828,701) (1,219,268) (2,375,292) (1,176,212)Investment in fixed assets - - (216,081) (100,503)Increase in term loan 10,592,167 4,240,733 6,575,458 3,128,729Net cash (used in)/ provided by financing activities 11,131,274 4,385,251 11,125,305 5,402,898

Net increase in cash and cash equivalent 2,371,594 246,718 10,672,976 5,340,867

Cash and cash equivalent, beginning of the year 11,279,061 5,637,185 606,085 296,3184 4 4 4

Cash and cash equivalent, end of the year 13,650,655 5,883,903 11,279,061 5,637,185

BRAC Southern Sudan

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2009

1.0. BackgroundBRAC Southern Sudan, an international private development organisation started its activities in March 2007 andregistered under the Ministry of Internal Affairs, the Republic of Southern Sudan with a view to participating in thedevelopment activities by adapting an environmental friendly sustainable development approach through high-impacteducation, health, agriculture and employment and income generation activties for the poor specially for the womenand children.

At present BRAC Southern Sudan has five development program that cover the areas of health, education, adolescentdevelopment program and microfinance to improving the livelihood of the poor people of Southern Sudan.

2.0. Summary of significant accounting policiesBRAC Southern Sudan prepares its financial statements under the historical cost convention on a going concern basis.BRAC Southern Sudan generally follows the accrual basis of accounting or a modified form thereof for key income andexpenditure items as disclosed in the Summary of Significant Accounting Policies. The financial statements areexpressed in Sudanese Pound (SP) and in US dollar (USD).

The significant accounting policies followed in the preparation and presentation of these financial statements aresummarised below:

2.1. Basis of preparation of financial statementsBRAC Southern Sudan maintains its books of accounts and records on a project and branch-wise basis. The countryoffice maintains records of all treasury and management functions. All cash balances including those held for programare held by the country office and transferred to branch offices as required. Balances between branches and countryoffice are eliminated upon combination for the purpose of presentation of the financial statements.

BRAC Southern Sudan's accounting records and financial statements are maintained and presented in accordancewith the principles of fund accounting.

2.2 Donor grantsIncome from donor grants is recognised when conditions on which they depend have been met. BRAC SouthernSudan's donor grants are for funding of projects and programs and for these grants, income is recognised to equateto expenditure incurred on projects and programs. For donor grants which involve funding for fixed assets, grantincome is recognised as the amount equivalent to depreciation expenses charge on the fixed assets concern.

All donor grants received are initially recorded at fair value as liabilities in the grants received in advance account. Forgrants utilised to purchase fixed assets and motor cycles, the donor grants are transferred to deferred incomeaccounts whilst for grants utilised to reimburse program related expenditure, the amounts are recognised as income.Donor grants received in kind through the through the provision of gift and/or service are recorded at fair value(excluding situations when BRAC Southern Sudan may receive emergency supplies for onward distribution in theevents of a disaster which are not recorded as grants). Income recognition of such grants follows that of cash baseddonor grants and would thus depend on whether the grants are to be utilised for the purpose of fixed assets orexpended as program related expenditure.

Grants income is classified as temporarily restricted or unrestricted depending upon the existence of donor imposedrestrictions. For completed or phased out projects and programs, any unutilised amounts are dealt with in accordancewith consequent donor and management agreement.

For ongoing projects and programs, any expenditure yet to be funded but for which funding has been agreed at theend of the reporting period is recognised as grants receivable.


2.3. Revenue recognition(i) Service charge on loan from group membersService charges on regular loans, that is, loans where no amounts are overdue as at the end of the reporting periodare recognised on an accrual basis as income. The recognition of service charge ceases when the loan is transferredto non-interest bearing loan account. These loans are referred to as "non-performing loans".

Service charge previously accrued but not received on loans subsequently classified as " non-performing" is reversed.Service charge is included in income thereafter only when its receipts becomes probable generally when it is realised.

(ii) Interest on bank depositsRevenue is recognised as the interest accrues unless collectability is in doubt.

2.4. ExpensesProgram related expenses arise from goods and services being distributed to beneficiaries in accordance with theprogram objectives and activities. BRAC Southern Sudan's Office expenses are allocated to various projects andprograms based on agreement with donors.

2.5 Fixed assetsFixed assts are stated at cost less accumulated depreciation. Depreciation is provided for on a straight line basis overthe estimated useful lives at the following rates:

AnnualAssets depreciation rateFurniture and fixtures 10%Equipment 15%Vehicles 20%Bi-cycles 20%Motorcycles 20%

2.6 Loan to group membersBRAC Southern Sudan's activities includes providing micro credit loans to group members without any collateral, on aservice charge basis under various programs. Loans are stated net of provisions for loan losses.

2.7 Provision for loan lossesLoan losses are provided based on 2 % of the loan disbursed. Non-performing loans are monitored and servicecharges are not recorded. Such loans are written off against the loan loss provision when recovery is unlikely.Management regularly assesses the accuracy of the loan loss provision based on the age of the loan portfolio. Anycollections received from loan previously written off are credited to income.

2.8 Foreign currency translationAt the end of the month expenditure incurred in US dollar during the month is translated into Sudanese Pound at theaverage exchange rate for that month with a view to preparation and presentation of financial statements and otherreports. Monetary assets and liabilities denominated in US dollar at the balance sheet date are translated intoSudanese Pound at average exchange rate for the year.

2.9. Financial instrumentsFinancial instruments are recognised in the balance sheet when the company has become a party to the contractualprovisions of the instruments.

a) ReceivablesReceivables are carried at anticipated realisable values. Bad debts are written off when identified and an estimate ismade for doubtful debts based on a review of all outstanding amounts as at the balance sheet date.

b) PayablePayables are stated at cost which is the fair value of the consideration to be paid in the future for goods and servicesreceived.

2.10. GeneralFigures have been rounded off to the nearest Sudanese Pound and US Dollar.

3. Fixed assetsNet book

Group of fixed assets Cost Depreciation valueOpening Addition Adjustment Closing Opening Charge Adjustment Closing

During2009

USD USD USD USD USD USD USD USD USD

Furniture & fixtures 39,385 50,735 - 90,120 3,347 6,983 - 10,330 79,790Equipment 57,766 47,062 - 104,828 5,285 9,901 - 15,186 89,642Vehicle 15,562 8,876 - 24,438 1,556 3,379 - 4,935 19,503Bicycle 7,763 4,471 - 12,234 1,305 2,332 - 3,637 8,597Motorcycles 5,186 13,944 - 19,130 974 2,791 - 3,765 15,365

4 4 4 4 4 4 4 4 4Total 125,661 125,088 - 250,749 12,466 25,386 - 37,852 212,897

Total in SP 267,835 294,432 - 562,267 26,231 59,150 - 85,381 473,131


4. Loan to village organisation membersOpening balance 3,833,696 1,916,848 973,342 474,801Disbursement during the year 5,176,800 2,396,667 5,209,100 2,616,420Realisation during the year (4,516,231) (2,090,848) (2,218,206) (1,109,103)

4,494,265 2,222,667 3,964,236 1,982,118Less: Write off (150,997) (65,085) (130,540) (65,270)

4,343,268 2,157,582 3,833,696 1,916,848Loan loss reserve (439,703) (189,527) (120,144) (60,072)

3,903,565 1,968,055 3,713,552 1,856,776

Loan to group members bear annual service charge at 24% per annum on the amount of loan disbursed.Repayments are made on weekly installment basis.

5. Advances, deposits and prepaymentsAdvance 869,048 374,590 779,214 366,255Security deposit 4 - 2,600 1,209

869,048 374,590 781,814 367,464

6. Cash and bank balancesCash in hand 161,080 69,431 67,277 31,292Cash at bank 13,489,575 5,814,472 11,211,783 5,605,892Fixed deposit (6.1) 6,960,000 3,000,000 2,060,000 1,000,000

20,610,655 8,883,903 13,339,060 6,637,184

6.1 Break-up of fixed deposits are as follows:Name of Bank FDR No. DateNile Commercial bank 0010231001 20.11.2008 2,320,000 1,000,000 2,060,000 1,000,000Nile Commercial bank 0010231004 07.01.2009 4,640,000 2,000,000 - -Total 6,960,000 3,000,000 2,060,000 1,000,000



7. Grants received in advanceBalance at 1 January 2,295,061 1,144,574 805,262 392,811Grants received during the year 3,367,808 1,363,786 4,141,220 2,050,884Transfered to deferred income-investmentin fixed assets (294,432) (126,910) (216,081) (100,503)Transferred to statement of incomeand expenditure (2,828,701) (1,219,268) (2,435,341) (1,198,618)

2,539,736 1,162,182 - -Donation receivable 29,569 12,745 - -

2,569,305 1,174,927 2,295,061 1,144,574

7.1. Grants receivedName of Donor Name of ProjectKIVA Foundation Microfinance Program - - 20,800 10,400IFAD Microfinance Program 41,708 20,000 360,000 180,000Oxfam Novib Microfinance Program 143,892 69,000 138,300 69,150UNCDF Microfinance Program - - 3,000,000 1,500,000BRAC USA Microfinance Program - - 50,000 25,000SRF(UNDP) Special Program 1,210,548 458,541 - -PSI Health Program 1,174,552 444,891 - -BRAC UK Education Program - - 366,224 170,337BRAC USA Health Program 224,400 85,000 - -Stormme Foundation Education Program 43,394 21,697 - -Stormme Foundation Education Program 100,000 50,000 107,500 50,000BRAC USA Agriculture Program 392,888 196,444 - -FAO Agriculture Program 9,900 4,950 - -FAO Agriculture Program 6,600 3,300 - -FAO Agriculture Program 3,426 1,713 12,402 6,000CGAP FFTIG - - 75,250 35,000WFP FFTIG 16,500 8,250 10,744 4,997

3,367,808 1,363,786 4,141,220 2,050,884

8. Deferred incomeBalance at January 1 186,265 87,846 - -Transferred from grants received in advance 294,432 126,910 216,081 100,503Amortaisation (59,150) (25,496) (25,314) (12,657)

421,547 189,261 190,767 87,846

9. Term loanBank of Southern Sudan 412,000 177,586 103,000 50,000KIVA Foundation 492,831 212,427 181,492 90,746BRAC 1,392,000 600,000 1,230,000 600,000BRAC Africa Microfinance Ltd. 12,296,000 5,300,000 3,315,000 1,500,000United Nations Capital Development Fund 3,452,121 1,487,983 2,975,966 1,487,983

18,044,951 7,777,996 7,805,458 3,728,729

a) Loan from Bank of Southern Sudan USD 177,586 equivalent to Sudanese Pound 412,000 was obtained forsupport to microfinance program and bears interest @ 5% per annum. It is repayable over a period of three yearsfrom the date of receipt of the loan after two years of grace period.

b) Loan from KIVA Foundation USD 212,427 equivalent to Sudanese Pound 492,831 was obtained for support tomicrofinance program. It is repayable in monthly installments starting from October 2008.

c) Loan from BRAC USD 600,000 equivalent to Sudanese Pound 1,392,000 was obtained for support tomicrofinance program. It is repayable within twelve months after five years of disbursement.

d) Loan from BRAC Africa Microfinance Ltd. USD 5,300,000 equivalent to Sudanese Pound 12,296,000 wasobtained for support to microfinance program and bears interest at 12% per annum. It is repayable in quarterlyinstallments starting from December 2012.

e) Loan from United Nations Capital Development Fund (UNCDF) USD 1,487,983 equivalent to Sudanese Pound3,452,121 was obtained for support to microfinance program and bears interest at 3% per annum. It is repayablein semi annual installments over a period of three years from the date of receipt of the fund after two years of graceperiod.


10. Other current liabilitiesSalary and benefits 131,872 56,445 - -Interest on HO loan 587,237 251,354 - -HO logistics and management service 673,365 288,219 - -Payable to BRAC Uganda 3,082,659 1,319,465 - -Payable to BRAC, Bangladesh 676,946 289,752 - -Interest on term loan 754,349 322,883 - -Adjustment of other comprehensive income/loss(Foreign exchange loss) (2,142,694) (923,575) - -

3,763,734 1,604,543 3,677,801 1,960,765

11. Loan security fundLoan security fund from members 1,146,888 494,348 904,034 452,017

12. Capital fundOpening balance 3,202,909 1,600,688 62,954 30,709BRAC contribution 534,000 247,222 3,000,000 1,500,000Surplus/(deficit) for the year (445,012) (191,816) 139,955 69,979

3,291,897 1,656,095 3,202,909 1,600,688

13. Other incomeMembership, Loan Application and Appraisal Fee 1,541,567 664,469 155,338 77,669Other income - - 25,008 11,632

1,541,567 664,469 180,346 89,301

14. Borrowing costInterest on term loan 1,291,494 556,678 418,412 209,206

15. Loan loss provisionBalance at 1 January 120,144 60,072 33,192 16,191Provision for the year 470,556 202,826 217,492 108,746Less: Write off (150,997) (65,085) (130,540) (65,270)

439,703 197,813 120,144 60,072


The loan classification and provisioning methodology followed by BRAC Southern Sudan is based on theconventional international practice of microfinance institution in different parts of the world catering to a largenumber of borrowers. The methodology which takes in to account international best practice and circumstancesrelevant to Southern Sudan has five aging categories which are labeled correspondingly as "Standard", "Watchlist", "Substandard", "Doubtful" and "Loss". For each aging category and loan classification, there is acorresponding percentage loan loss provision, which is graduated upward as the period of arrears lengthens asshown below:

Loan classification Days in arrears Required provisionStandard Current (no arrears) 2%Watch list 1-30 5%Substandard 31-180 20%Doubtful 181-350 75%Loss Over 350 100%

Had the loan classification and provisioning methodology stated above been followed the required provision wouldbe Sudanese Pound 120,144 and details of which are given below:

Loan 2009 2008classification Days in arrears Principle Loan loss Principle Loan loss

provision provisionSP SP SP SP

Standard Current (no arrears) 2,655,478 53,414 3,235,941 65,023Watch list 1-30 398,577 19,929 443,446 22,172Substandard 31-180 1,091,908 218,382 150,515 30,103Doubtful 181-350 197,305 147,979 3,794 2,846Loss Over 350 - - - -Total 4,343,268 439,703 3,833,696 120,144

2009 2008SP SP

Total Current loan loss reserve 439,703 120,144Total required loan loss reserve 439,703 120,144BRAC current loan loss reserve is 4 4lower than the required reserve - -

Based on the above it is concluded that BRAC Southern Sudan loan loss reserve is adequate because therequired reserve is Sudanese Pound 439,703 which is equivalent to loan loss reserve balance of Sudanese Pound439,703.

16. Donor grantsTransferred from grants received in advance 2,828,701 1,219,268Transferred from deferred income:amortisation of investment in fixed assets 59,150 25,496

2,887,851 1,244,763

BRACSouthernSudan

STATEMENTOFINCOMEANDEXPENDITURE

FORTHEPERIODFROMJANUARYTODECEMBER2009

Education

Education

FFTIG

(Petrofac)

(BRACUSA)

Agriculture

Health

PSI

SRF

Microfinance

Total

SP

USD

SP

USD

SP

USD

SP

USD

SP

USD

SP

USD

SP

USD

SP

USD

SP

USD

Donorgrants

23,041

9,931292,846126,227389,657167,956295,830127,513144,178

62,146

66,329

28,590

222,702

95,991

1,453,268

626,4092,887,8511,244,763

ServicechargeonLoans

togroupmembers

--

--

--

--

--

--

--2,300,314

991,5152,300,314

991,515

Otherincome

82,284

35,468

--

--

--

--

--

--1,459,283

629,0011,541,567

664,469

Totalincome

105,325

45,399

292,846126,227389,657167,956295,830127,513144,178

62,146

66,329

28,590

222,702

95,991

5,212,865

2,246,925

6,729,732

2,900,747

Expenditure

Salariesandbenefits

6,105

2,631

75,480

32,534

128,930

55,573

104,030

44,841

39,402

16,984

51,530

22,211

64,627

27,856

1,857,441

800,6212,327,5451,003,251

Travellingandtransportation

1,507

650

3,723

1,605

20,074

8,653

32,768

14,124

11,176

4,817

2,013

868

24,362

10,501

477,304

205,735

572,927

246,953

Rent,utilitiesandstationery

12,561

5,414

9,721

4,190

32,593

14,049

55,288

23,831

34,341

14,802

3,348

1,443

23,760

10,241

579,807

249,917

751,419

323,887

Maintenanceand

generalexpenses

74,779

32,232

16,476

7,102

87,369

37,659

59,675

25,722

19,621

8,457

550

237

1,246

537

456,627

196,822

716,343

308,768

HOlogisticesand

managementsupport

9,467

4,081

21,724

9,364

33,948

14,633

22,424

9,666

738

318

8,868

3,822

18,287

7,882

457,262

197,096

572,718

246,862

Stafftrainingand

development

--

16,831

7,255

--

19,918

8,585

38,349

16,530

--

7,920

3,414

15,004

6,467

98,022

42,251

Teacherssalary

--

74,062

31,923

36,786

15,856

--

--

--

--

--

110,848

47,779

Teacherstraining

--

--

--

--

--

--

--

--

--

Schoolrent

--

74,325

32,037

46,897

20,214

--

--

--

--

--

121,222

52,251

NGOcapacitydevelopment

--

--

--

--

--

--

82,500

35,560

--

82,500

35,560

Interestontermloan

--

--

--

--

--

--

--1,291,494

556,6781,291,494

556,678

Loanlossprovision

--

--

--

--

--

--

--

470,556

202,826

470,556

202,826

Foreigncurrencygain/(loss)

--

--

--

--

--

--

--

--

--

Depreciationonfixedassets

906

391

504

217

3,060

1,319

1,727

744

551

238

209

--

52,382

22,578

59,150

25,496

Totaloperational

44

44

44

44v

44

44

44

44

4v4

expenditure

105,325

45,399

292,846126,227389,657167,956295,830127,513144,178

62,146

66,329

28,590

222,702

95,991

5,657,877

2,438,741

7,174,744

3,092,562

Netsurplusfortheperiod

--

--

--

--

--

--

--

(445,012)

(191,816)

(445,012)

(191,815)

44

44

44

44

44

44

44

44

44

Total

105,325

45,399

292,846126,227389,657167,956295,830127,513144,178

62,146

66,329

28,590

222,702

95,991

5,212,865

2,246,925

6,729,732

2,900,747

Othercomprehensiveincome/loss

(Foreigncurrencyloss)

--

--

--

--

--

--

--(2,142,694)(923,575)(2,142,694)(923,575)


BRACSouthernSudan

BALANCESHEET

ASAT31

DECEMBER2009

Education

Education

FFTIG

(Petrofac)

(BRACUSA)

Agriculture

Health

PSI

SRF

Microfinance

Total

SP

USD

SP

USD

SP

USD

SP

USD

SP

USD

SP

USD

SP

USD

SP

USD

SP

USD

Assets

Fixedassets

7,875

3,544

4,886

2,199

6,662

2,998

10,203

4,591

2,634

1,185

2,340

1,053

--

438,531

197,328

473,131

212,897

LoanstoVillage

Organisationmembers

--

--

--

--

--

--

--

3,903,5651,968,055

3,903,565

1,968,055

Grantsandaccounts

receivable

9,381

4,044

--

20,188

8,702

6528

10,000

4,311

--

--

3,342,2891,440,642

3,381,923

1,457,726

Advances,deposits

andprepayment

--

6,140

2,646

7,223

3,113

--

--

--

--

855,685

368,830

869,048

374,589

Cashinhandandatbanks

(6,370)(2,721)

49,731

22,701

(16,662)

(7,071)131,22459,877

309,328141,5611,159,697529,4981,102,369502,35710,921,338

4,637,70113,650,655

5,883,904

FixedDeposits

--

--

--

--

--

--

--

6,960,0003,000,000

6,960,000

3,000,000

44

44

44

44

44

44

44

44

44

Total

10,886

4,867

60,757

27,546

17,411

7,742141,49264,496

321,962147,0571,162,037530,5511,102,369502,35726,421,408

11,612,556

29,238,322

12,897,171

Liabilitiesandnetassets

Liabilities

Donorfundinvestment

infixedassets

7,875

3,536

4,886

2,194

6,662

2,991

10,203

4,581

2,634

1,183

2,340

1,051

--

386,947

173,726

421,547

189,260

Donorfundinvestment

inloan

--

--

--

--

--

--

--

--

--

Grantsreceivedin

advanceaccount

--

42,940

19,636

--123,28156,375

309,355141,4661,105,883505,713

987,846451,736

--

2,569,305

1,174,927

Termloan

--

--

--

--

--

--

-18,044,951

7,777,99618,044,951

7,777,996

Liabilitiesforexpenses

3,011

1,331

12,931

5,716

10,749

4,751

8,008

3,540

9,973

4,408

53,814

23,787

114,523

50,621

3,550,7251,510,391

3,763,734

1,604,545

Groupmembersavings

--

--

--

--

--

--

--

--

--

Loansecuritydeposit

--

--

--

--

--

--

--

1,146,888

494,348

1,146,888

494,348

Capitalfund

--

--

--

--

--

--

--

3,291,8971,656,095

3,291,897

1,656,095

Total

10,886

4,867

60,757

27,546

17,411

7,742141,49264,496

321,962147,0571,162,037530,5511,102,369502,35726,421,408

11,612,556

29,238,322

12,897,171

BRAC International

Aminul AlamExecutive Director

Imran Matin PhDDeputy Executive Director

Tanwir Rahman CPADirector Finance

BRAC Head Office

BRAC Centre75 MohakhaliDhaka 1212, BangladeshTel: + 880-2 9881265-72Fax: +880-2 8823542, 8823614Email: [email protected]

BRAC Southern Sudan

Md. Abu Bakar SiddiqueCountry Manager

Plot 31,Block L14,Atlabara, JubaSouthern SudanTel: Gemtel: +256 (0) 477 218022Mobitel: +249 (0) 908 246626

Copyright © BRAC

www.brac.net

Concept & Design Tushar/DrikPhotography BRAC, Lorne Mallin, Shehzhad NooraniProduction Drik, Bangladesh (www.drik.net)

BRAC Southern Sudan Annual Report 2009

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Transcript of BRAC Southern Sudan Annual Report 2009