Strømme Foundation Annual Report 2008

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STRØMME FOUNDATION ANNUAL REPORT 2008

2 w w w . s t r o m m e . o r g / S T R Ø M M E F O U N D A T I O N A N N U A L R E P O R T 2 0 0 8 w w w . s t r o m m e . o r g / S T R Ø M M E F O U N D A T I O N A N N U A L R E P O R T 2 0 0 8 3

Contents

Introduction 3International Section - Highlights 2008 4Regions, Countries and Outreach in different sectors 5West Africa Highlights 2008 6East Africa - highlights 2008 8South America - highlights 2008 10 Asia - highlights 2008 12 Strømme Foundation Project Area 14 Communication and Fundraising 16 Quality Assurance 18 Report from the Strømme Foundation Board for 2008 20 Strømme Foundation Activity Account 23Strømme Foundation Balance Sheet 31.12 24 Strømme Foundation Cashfl ow (The indirect method) 26Accounting Principles 27 Notes 28-37Auditor´s Report for 2008 39

The year 2008 had been an exceptionally productive year by way of preparing the ground for planning for the future. The organisational review of Strømme Foundation (SF) by Norad provided specifi c recommendations. The report further con-fi rmed the direction in which Strømme Foundation had already planned to focus its efforts on the next fi ve years.

Following a consultative process, Strømme Foundation’s fi ve-year master plan was prepared during the year. In addition, an application to Norad with a fi ve-year strategic plan was submit-ted for core funding.

The four regions continued to succeed in enabling people to climb out of poverty, focusing on microfi nance and education for development. All development interventions were aimed at promoting life with dignity among the poor and marginalised. This was possible because Strømme Foundation and its partner organisations kept a focus on creating an environment in which the people themselves become promoters of their own change of life. SF and the partners recognise that only a well informed and organised community is able to reach levels of self-development.

During the year more than 900 000 people directly benefi ted from SF’s interventions. As in the past, particular focus was on girls and women. In microfi nance alone approximately 600 000 people had access to SF’s microfi nance services. Indirectly, at fi ve members per family, nearly 3 million people benefi ted.

Another important event of the year was SF’s efforts in success-fully developing and submitting an application to Operation Day’s Work (Operasjon Dagsverk) which focused on adolescent girls in Bangladesh. With funds from OD, in the next fi ve years, over 100 000 adolescent girls will benefi t.

The Board approved establishment of Strømme Microfi nance Limited from January 2009.

Strømme Foundation acknowledges that it would not have been possible to successfully complete another year of meaningful journey with the people in need without value

based partnerships with its constituent members and stake-holders both in the South and North. As a result, thousands of out-of-school boys and girls were able to get back into the formal schooling system in West Africa after attending a nine-month accelerated learning programme (Speed Schools). Thousands of women were able to form self-help groups to save and lend money to each other in West Africa, Uganda and South Sudan. Adolescent mothers in Peru who had undergone traumatic experiences were able to regain self-confi dence and take control of their lives and move forward. Early marriage among young girls in Bangladesh is declining. Women with microfi nance interventions were not only able to earn an income, but were also able to improve their status in the family and community. Access to girls education in particular, and opportunities for women’s gainful occupation had been one of many areas of intervention during the year.

For the fi rst time in 2008 Strømme Foundation presents consoli-dated accounts including all the microfi nance operations, the full details of how and why this has been done are given in the Board report and the accounting principles. The inclusion of the full microfi nance portfolio of loans signifi cantly increases the value of the equity, but also the risk of currency fl uctuations as the loans are denominated in foreign currency. In 2009, there are plans to transfer all of the assets into a fully owned subsidiary; Strømme Microfi nance AS, in order to improve the management of microfi nance and reduce the risk to Strømme Foundation.

Strømme Foundation looks at the world-wide economic down-turn with concern and hopes it does not affect its plan to reach the many poor people. Once again they are the most vulnerable and may be affected harder by the «credit crunch» than any!

2008 Annual Report – Introduction

Øyvind AadlandSecretary General

Geir Magnus NyborgChairman of the Board


The Programme Department and Microfi nance Department which constitute the International Section of Strømme Foundation have had quite a few successful milestones during the year.

The fi rst quarter witnessed an Organisational Review of Strømme Foundation (SF) by Norad. The purpose of the review was to establish a platform for further dialogue between Norad and SF before assessing a renewed long-term agreement from 2009 onwards. The report stated that the results of SF’s activities and interventions are both in accordance with the Norwegian policy priorities and also relevant to partner organisations and the target groups’ needs. The assessment of SF’s support activities confi rmed the organisation’s professional, fi nancial and admin-istrative capacity to carry out programmes under the long-term agreement period with Norad.

During the year, the International Section prepared and submit-ted to Norad SF’s Five-Year Strategic Plan (2009-2013) for Core Funding. The major shift in terms of long-term planning, when compared to the earlier one, was to focus on a long-term strate-gic plan instead of an activity plan. Furthermore, for the planning period 2009-2013, the number of countries was reduced from 17 to 12 besides focusing on a few thematic goals and intervention lines.

The two sectors – Education and Microfi nance ¬continued to play a crucial role, each one complementing and reinforcing the other in the task of eradicating poverty.

During the year, in the Education Sector, all the four regions pro-moted education as a community concern. Together with

its partner organisations, SF played a catalytic role in improving access, retention and completion of basic education – particu-larly of girls. Interventions in the education sector also promoted the process of empowerment, particularly of women, emphasis-ing the equitable access to and control over resources as well as basic services, in the household and the community.

The Microfi nance Sector operates in close relationship with the market and civil society. SF’s partners are continuing to develop as they grow and respond to the evolving market. More people are getting access to a safe place for their savings while fi nding access to credit. The money earned after repayment is invested among other things in developing their businesses, being able to send their children to school and saving as insurance for the future. The fi nancial crisis has hit the commercial sector hard, whereas the Microfi nance sector has escaped a similar crisis. However, the eventual victims of the fi nancial crisis are the poor.

During the year, more than 900,000 people, 70.6% of whom were female, benefi ted with SF’s interventions. This was possible by partnering with 131 local partners who implemented 157 projects to reach out to the poor and marginalised people.

Strømme Foundation’s Development Policy pinpoints three cross-cutting issues, i.e., gender equality, environmental sustainability and cultural freedom. Strømme Foundation also considers these issues as premises to secure long-term and sustainable change in accomplishing its main goal; to eradicate poverty. During the strategic planning period 2009-2013, the cross-cutting issues will be implemented. As a fi rst step towards this direction, an assess-ment tool has been developed for fi eld testing.

International Section – Highlights 2008

RegionCountry

East Africa 254 895 112 351 46 144 58 266 - - 301 039 170 617 471 656 63,8% 36,2%Uganda 153 772 57 907 7 462 6 764 - - 161 234 64 671 225 905 71,4% 28,6%Tanzania 80 033 43 629 4 736 4 621 - - 84 769 48 250 133 019 63,7% 36,3%Sudan 2 703 921 12 215 14 822 - - 14 918 15 743 30 661 48,7% 51,3%Kenya 12 662 8 570 6 640 17 989 - - 19 302 26 559 45 861 42,1% 57,9%Rwanda 5 725 1 324 15 091 14 070 - - 20 816 15 394 36 210 57,5% 42,5%

West Africa 50 886 150 27 167 26 247 29482 21 714 107 535 48 111 155 646 69,1% 30,9%Mauritania 244 - - - - - 244 - 244 100,0% 0,0%Mali 48 138 150 18 741 18 017 18 126 11 214 96 361 39 881 136 242 70,7% 29,3%Burkina Faso 2 504 - 5 682 5 172 - - 8 186 5 172 13 358 61,3% 38,7%Niger - - 2 744 3 058 - - 2 744 3 058 5 802 47,3% 52,7% Asia 178 925 6 742 44 284 23 114 6792 6750 230 001 36 606 266 607 86,3% 13,7%Bangladesh 133 644 1 186 31 669 16 077 - - 165 313 17 263 182 576 90,5% 9,5%Sri Lanka 36 091 5 069 10 345 4 525 - - 46 436 9 594 56 030 82,9% 17,1%East Timor - - 2 270 2 512 1 792 1 750 4 062 4 262 8 324 48,8% 51,2%Burma 9 190 487 - - - - 14 190 5 487 19 677 72,1% 27,9% South America 1 269 92 17 564 12 518 - - 18 833 12 610 31 443 59,9% 40,1%Peru 1 269 92 11 771 7 599 - - 13 040 7 691 20 731 62,9% 37,1%Bolivia - - 5 793 4 919 - - 5 793 4 919 10 712 54,1% 45,9% Global - - 17 7 - - 1 127 6 121 7 248 15,5% 84,5%CHRISC - - - - - - 1 110 6 114 7 224 15,4% 84,6%ACT NOW - - 17 7 - - 17 7 24 70,8% 29,2% Total 485 975 119 335 135 176 120 152 37 384 34 578 658 535 274 065 932 600 70,6% 29,4%

Regions, Countries and Outreach in different sectors

Microfi nanceF M

EducationF M

Intergrated & othersM F

TotalM F Grand Total F M

Microfi nance

Education

Others

0 125000 250000 375000 500000

, ,

Microfi nance

Education

Others

0 125000 250000 375000 500000

South America

West Africa

East Africa

Asia


Speed School and Community Managed Microfi nance (CMMF)(Self-Help Women’s Savings Groups) has been the main focus during 2008 in this region. While the Speed School programme was implemented in Mali, Burkina Faso and Niger, the CMMF was implemented in Mali and Burkina Faso.

Speed School is an accelerated learning programme aimed at targeting out-of-school boys and girls in the age group of 8-12, with a view to bring them back into the formal education system.

One of the highlights of the year was the signing of an agreement with the governments of Niger and Burkina Faso for the Speed School programme as a link to the formal schooling system. The agreement with Niger government was signed in February 2008. The agreement will last for four years at the end of which the government will evaluate the curriculum for possible offi cial recognition of Speed Schools. In Burkina Faso, the agreement was signed in November 2008 for a three-year period. In Mali, the government carried out a study of the Speed School programme in May 2008 and analysed the relevance of Speed Schools to primary education. The report of the study recommended extending the period of the Speed School course from 8 to 9 months. In addition, the government asked the regional govern-ments to facilitate transfer of Speed School children to formal schools.

During the year, 8,241 children were transferred to formal schools.

The Speed School programme is growing rapidly as its popularity spreads in the region. In some of the villages in Mali, all formal primary schools serve as potential host schools for speed school graduates. In other cases, the potential host schools are known and identifi ed in advance. In Burkina Faso, 64 formal host schools

are targeted by the 72 speed schools, whereas in Niger 44 formal schools are targeted by 44 speed schools.

In January 2009, the three ministers of Education from Mali, Burkina Faso and Niger visited the Norwegian Government and Strømme Foundation (SF) in Norway, and demonstrated their continued support of this initiative through formal and informal meetings at all levels.

Community Managed Microfi nance continued to grow in Mali and Burkina Faso. A total of 2,262 new groups with 49,190 women were formed in the two countries. These groups were motivated to save and lend in addition to strengthening their knowledge base on malaria transmission, prevention and treatment.

Community based and mobilised funds have allowed community Managed Microfi nance(SMMF) to set repayment rates that they can afford to comply with. This demonstrates an understanding of the lessons being taught by the facilitators as these groups have been able to grow their funds through savings and collecting repayments with interest from group members.

SMMF enable women to access funds for household needs including covering some of the education costs of their chil-dren. By implementing the SMMF in the same communities as Speed Schools, SF has ensured a better impact on the family unit through the women’s groups’ activities that include sensitising group members on better health practices, participation in community affairs and the importance of literacy including educating their children. This approach encourages more women to be involved and participate because they witness results in their lives and those of their children.

West Africa – Highlights 2008


During the year, Strømme Foundation (SF) was able to reach out to more than 470,000 people in Uganda, Tanzania, Rwanda, Sudan and Kenya by working with 43 partners, implementing 46 projects.

SF’s work in South Sudan is expanding. In 2008, the region suc-cessfully secured a bid from the Sudan Recovery Fund managed by UNDP. As a consequence, in 2009, SF will expand its work in Jonglei state; one of the most marginalised states of Southern Sudan. Interventions will be in both Education and Community Managed Microfi nance (CMMF).

Strømme Microfi nance East Africa Ltd continued another year of good performance. Financial and administrative effi ciency were improved as well as operational self suffi ciency. For the second year running, the company has broken even. The portfolio grew by 18% and at the same time had a high quality portfolio that was cost effectively maintained.

Through the Microfi nance interventions, SF had enabled poor people (the majority of whom were women) to have access to fi nancial services. The access to fi nancial services for poor people resulted in people being able to save, borrow and also start new business enterprises and/or expand and diversify their small businesses.

Discussions with the poor people revealed that there had been improvement in the standard of living. For example, the people reported an increase in household incomes which had led to better and improved nutrition, ability to access medical assist-ance when family members were sick, able to support children in school. Some of them were able to acquire assets like land and build small permanent houses. Among the Microfi nance partners, seven were Community Managed Microfi nance partners using a Self Help Group approach. Through this approach about 9,730 (79% women) poor people, whom it was thought was not able

to save and run businesses had proved that the very poor could save and bring a difference to their lives. By the end of the year they had saved about USD 305,554 which they were using for on-lending among themselves.

Interventions in the education sector were also successfully implemented. SF partners in the region contributed to increased access to basic quality education in the poor/hard to reach communities of Eastern Africa. A net increase in enrolment of about 15% was achieved in the communities. In terms of qual-ity education, in Rwanda for example, prior to SF’s interventions through the partner organisations, only 2.9% passed the 1st grade. However, after three years of intervention, 89.4% were able to successfully complete the primary education cycle in Grade 1. The learning environment in the schools supported by SF part-ners had also improved. This had contributed to an increase in enrolment and retention of pupils.

Teacher training in Rwanda and also in South Sudan was success-fully undertaken. SF had signifi cantly contributed to the training of teachers in English, when earlier in Rwanda, French was the medium and Arabic in the Sudan. Training of teachers contributed to improve quality of education in both Rwanda and Sudan. In Northern Upper Nile, where SF has been part of a consortium of partners funded by the European Commission, SF’s contribution was publicly recognised by the State. A net increase in enrolment of 40% was attained in this region, where basic education had for many years been largely non-existent. With systematic sensitisa-tion of the communities, people have begun to value education, particularly of girls’ education.

With the collective efforts of all the stakeholders it has been possible to create access and opportunities for economic empowerment and children’s education.

East Africa – Highlights 2008


SF in South America continued to focus its interventions on the most vulnerable people, with emphasis on children at risk, adolescent girls and women.

During the year, 18 projects were implemented by 11 Peruvian and 3 Bolivian partners benefi ting 31,443 people of whom 60% were female.

In Peru, a pilot project implemented by FOVIDA focusing on teenage mothers, and another project implemented by Commu-nications Studies Institute (IEC) building capacities of community leaders were successfully concluded. Similarly, a pilot project focusing on indigenous Bolivian children by System of Choirs & Orchestras (SICOR) was completed. A long-term plan aiming at empowering marginalised children and young people in remote villages through the formation and development of musical schools was prepared.

In the Andean mountains of Peru, SF is working in Anchonga, one the poorest areas of the country. The target groups include the most vulnerable and excluded indigenous and internally displaced people. During the year, with focus on early childhood care and development, mothers learnt how to care for their chil-dren, teachers were trained in local language, and communities were mobilized through for instance cultural activities among youths and children.

As in the previous years, SF continued to focus on building capacity of partner organizations, thus enabling the partners to improve qualitatively in terms of planning, implementation and documentation of results.

The region continued to make efforts to focus on results-based management. In this process, suitable tools for monitoring the planned interventions were developed during the year.

Under the Act Now youth exchange program, three youths were in Norway, whereas nine from Norway were in Bolivia and Peru.

In Bolivia, many street children who were taken into Alalay homes, made a personal decision to enter the therapeutic program. As a result, they were able to re-enter the mainstream by integrating into the society. Similarly, promotion of music by SICOR among adolescents and young people had not only pro-vided them skills but most importantly brought changes in their day-to-day life.

The communities also made conscious efforts in reducing do-mestic violence, and thereby promoting societal improvement. The parents undertook an ongoing follow-up of their children’s performance in schools, helped them with their homework and visited schools regularly to interact with the teachers.

In Peru, interventions targeting adolescent boys and girls with various activities such as sports and games, had signifi cantly contributed to development of leadership skills, self-esteem and reduction in violence.

Local governments in Peru and Bolivia have also been very coop-erative, since the interventions targeting street children and ado-lescent girls/mothers were closely linked to their own priorities such as education, violence and social risk to adolescents.

South America – Highlights 2008


During 2008, Strømme Foundation (SF) in Asia was able to reach out to more than 266,000 people in Bangladesh, Sri Lanka, East Timor and Myanmar by working with 45 partners, implementing 56 projects. The partner organisations continued to focus on strengthen-ing the civil society by empowering thousands of socially and economically excluded communities with their active participa-tion. SF’s focus was also on building capacity among the partner organisations. In Bangladesh 182,576 people benefi ted from SF’s interventions in Education and Microfi nance sectors. Cyclone SIDR hit Bangladesh late 2007, and fl ood victims were assisted with immediate relief assistance in addition to rehabilitating the victims.

In education there was a signifi cant reduction in school drop-outs (5%). Retention of children in schools was estimated at 93%. Shonglap, the community based adolescent education programme received greater attention, acceptance and coopera-tion of the communities. It demonstrated a remarkable change in knowledge, perception, awareness and analytical ability of the adolescents. 80% of the girls who had earlier discontinued schooling, decided to continue formal education. This change was possible because the girls became familiar with life-skills in learned in the Shonglap programme. In Microfi nance, at least 52% of women had improved their housing condition and house-hold assets, and 78% of them had increased their income.

In Sri Lanka 56,030 people benefi ted with interventions in Education and Microfi nance sectors. The focus in Sri Lanka was in strengthening the civil society through economic and social

empowerment as well as capacity building of partner organisa-tions. Provision of fi nancial services focusing on women’s groups was a key feature during the year. As a result, 60% of women were engaged in self-employment with increased earning capac-ity. Their capacity to provide reasonable healthcare for their children and other facilities necessary for their education also improved. Extension of educational opportunities through strong parent teacher associations, formation of children’s clubs and training of partner organisations benefi ted 60% of children at risk with proper education. In the DREAM project (Development and Rehabilitation of the Economy of the poor through Alternative Means), in Sri Lanka a large number of vulnerable poor, with access to fi nancial services, improved the family income. SF’s interventions in East Timor focused on facilitating informal groups to become sustainable community based organisations (CBOs). The CBOs were assisted in undertaking various activities such as provision of water and sanitation facilities, construction and renovation of schools, coffee seedling production, etc. More than 8,000 people were benefi ted.

In Myanmar, according to the evaluation fi ndings the impact on 9,677 microfi nance clients had been positive; “.. They have in-creased income to reduce food insecurity, increased expenditure for health, education and sanitation; participants have formed assets in the form of houses, land, business capital, household durables, and cash. Some participants are increasingly borrowing larger loans and diversifying to trading and other non-farm busi-nesses.” Similarly 10,000 people, who had access to foot pumps for irrigation were able to effectively use the pump due to its design and easy to handle.

Asia – Highlights 2008


South AmericaPeruBoliviaProject Support: NOK 9 344 546Number of partners: 14Number of projects: 18

West Africa MauritaniaMaliBurkina FasoNigerProject Support: NOK 18 889 438Number of partners: 28Number of projects: 36

East AfricaUgandaTanzaniaSudanKenyaRwandaProject Support: NOK 30 492 058Number of partners: 46Number of projects: 50

GlobalCHRISCACT NOW Project Support: 5 911 893 Number of partners: 2Number of projects: 2

Asia BangladeshSri LankaEast-TimorMyanmar (Burma)Project Support: NOK 31 270 048Number of partners: 45Number of projects: 56

Strømme Foundation project areas

17w w w . s t r o m m e . o r g / S T R Ø M M E F O U N D A T I O N A N N U A L R E P O R T 2 0 0 8w w w . s t r o m m e . o r g / S T R Ø M M E F O U N D A T I O N A N N U A L R E P O R T 2 0 0 816

KindergartensFlatefjellSolkollenLæringsverkstedetSagatun

Primary schools Jordet

Much of what Strømme Foundation is able to achieve is due to the generous support of our donors and partners, who provide fi nancial resources for our programs around the world. Despite the emerging global recession private income in 2008 reached 59, 8 million NOK, only 2 % decline from our 2007 “all time high”. We are very pleased with this and we would like to thank all our donors, partners and staff for making this possible.The biggest achievement for the Communication Department in 2008 was being appointed as the 2008 Operation Days Work-organisation. Operation Days Work is the largest solidarity campaign among pupils in Norway. On October 31st, almost 180.000 pupils all over Norway worked for one day, resulting in a 30 million NOK grant to Strømme Foundation’s project “Shonglap”. The result will enable us to empower 100.000 adolescent girls in Bangladesh. The amount will be allocated during the period of 2009-2013.

Communication and Fundraising work in 2008:

Individual donors are the backbone in our fundraising. And we would like to express our thanks and gratitude to all of you. In March we successfully re-launched our regular donor program Friend at Heart through a national marketing campaign. However, there is an ongoing challenge to attract new donors to our program. At the same time, our one-time donations increased during 2008.

Fixed-term donors: 16832 - Friend at Heart: 12576 - Brobygger: 3650- Fattigdomsbekjemper: 324Total number of donors: 23006

Strømme Foundation believes in net-working to develop the value chain in resource mobilization for development issues. Operation Days work, as well as a new collaboration agreement with KRIK (Christian Sports Contact), gave us a unique opportunity to position ourselves as a powerful development organization among youth in Norway.

Outreach Norwegian children/youths: 18.323

(SBP) generated two new partners in 2008. At the same time SBP didn’t lose any existing partners despite the global recession. SBP launched a new area of commitment – a focus towards Major Donors. We believe this program ties to-gether the network between companies and their investors and stakeholders, and strengthens Strømme Foundation’s posi-tion towards the corporate sector.

Number of business partners: 35Outreach SBP employees: 20.322Number of Micro Shares: 27

Fundraising activities within the Culture Initiative are targeting institutional part-ners. We would like to use the opportu-nity to express our gratitude to Cultiva - Kristiansand kommunes Energiverksstif-telse, Vest-Agder County and the Norwe-gian Ministry of Foreign Affairs for their fi nancial support. It is also a pleasure for us to announce that Vest-Agder County accepted our invitation to take part in the establishment of an independent en-tity dealing solely with culture and devel-opment issues. This organisation - Centre for international culture cooperation - will be in operation from June 2009 - as a joint venture by Vest-Agder Fylkeskom-mune and Strømme Foundation.

Strømme Foundation works with the media to focus on development issues and to raise attention on our interven-tion lines. We are focused on how we can promote our work and development issues in general trough the media. We also promote information to a broad audience trough our own magazine “Help for Self-help” and our website – www.strommestiftelsen.no In 2008 the webshopp www.levebrod.no was launched.

37 361 visitors to our website, viewing in total 116 738 pages. In 2008 SF has been profi led in different news-media, web, magazines, newspapers etc. in total 493 times in 2008.

Communication and fundraising Figures in millions of Norwegian kroner 2008Public Sector Grants: 54.5 MNOKIndividual Donations: 10.4 MNOK Fixed Term Donations: 38.3 MNOKEvents Schools and artists: 4.7 MNOKContributions from other organizations: 10.2 MNOKCorporate Sector: 6.4 MNOKFinancial Income: 5.2 MNOK

42%

4%5%

8%

4%

30%

8%

Strømme Foundation takes no income from lotteries, slot machines or from telephone sales. We want and believe in supporters with engagement and personal involvement in the work of eradicating poverty. We thank all donors and contributors for the commitment and support in 2008. Without your help, none of the work Strømme Foundation does could be done.

Institutional fundsNorwegian Ministry of Foreign Affairs (UD)Norwegian Agency for Development Cooperation (NORAD)Geneva Global (US foundation)Fredskorpset Norway (The Norwegian Peace Corps)Vest-Agder FylkeskommuneAust-Agder FylkeskommuneCultiva

THANK YOU!Private funds16.832 individuals giving on a fi xed-term basis6.174 individuals giving one or several single donations36 schools contributing with fundraising campaigns1263 youth engaged in SKRIK campaigns See list of partners below. *

Coorporate Sector / Strømme Business PartnerMain Partners:

Additional grants: Taran Management ASSkandinaviska Enskilda Banken AB (SEB)Nordea Finans Norge ASSparebanken VestStål-ConsultColor LineHandelsbankenTor Sandal Revisjonsfi rma ASBoomerang MediaSAS Royal Hotel ASRadisson SAS Hotel ÅlesundBandak ASAbsolutt: KRSElectrolux Home Prod Norway ASPioneer Norge ASFonn Kontorservice ASKanal 24 NorgeWold Invest ASLykkebo Hotell Drift ASAxxe Logistics ASInvivo ASGrønn Strek AS

Partners: Mosvold & CoVenteloLauvland ØyeoptikkHotel NorgeScantradeFormuesforvaltningTeamWorksValeroDale+BangBaker HughesAvigo

Mikroaksjonær (Micro Share): PreventorTroll ActiveStormbergOmnesValeroDatakameratene asBeckmannAndås begravelsesbyråKruse SmithMosvold & CoProfi tbaseStepchangeAspelund EiendomInventas produktdesignJens Knutsen Mek. VerkstedØyvind ReinhardsenArne SørlieFrank AbrahamsenVegard HanssonGrete S. Risvold

FolleseYtre TorridalSjøstrandLindåsKnarvikKyvigBorkedalenSkåredalen

HavåsenAustrheimLillesundSaltveitSolvangVettreRjukan

Secondary schools LillesandOasenHaumyrheiaFiskåTokkeBrummunddalMoland

TingsakerMoltemyr

Collages DrømtorpKoppervikLyngdalRingsaker

ÅlesundSirdalFramnesØvrebø

Folk High Schools RingerrikeSagavoll

BorgundBirkelandNordhordlandBildøyVikenMoldeLundheimFredtun

RingebuHøgtun

UniversitiesUniversitetet i AgderAnsgar

Festivals/sport clubsArenaSkjærgårds M&MBarn er braVerden er vårØygard ILBrumunddal ILSøgne IL

Total number of dono

Individual Donors Network Group Strømme Business Partner

Culture Information/Media

*)


Focusing changeStrømme Foundation is focusing on, and emphasising the im-portance of, establishing measurable goals and report more on outcome results – signifi cant change – for our target groups.In the fairytale “Alice in Wonderland” it is said that if you don’t know where you are going, any road will get you there! We think that establishing clear, measurable goals for all our interventions are crucial and important success criteria’s for Strømme Founda-tion. This will also secure more predictability for partners and our work in the regions.

From what we have done to what we have achievedThe term “results” can be divided into three different levels: Output and outreach is about what kind of activities or services we, together with our partners, have delivered to the poor. This can be workshops, capacity building, fi nancial support or any other kind of services to our target groups. Outreach is number of people reached. Outcome is the next level of results (see illustration), and maybe the most important one to report positive change for our target groups. As a professional development organisation, we are focusing on long term sustainable change for civil societies and individuals, compared with charity and service delivery. We must be able to measure the change, the outcome, if we shall be able to manage it. (Fig. 1)

Why do we want a result-focus?Strømme Foundation wants to improve and we think that a result focus will help us to do so. By showing results, we also legitimise all individual and institu-

tional donors’ interventions, and we are able to show effi cient stewardship of resources. Results must be defi ned in close collaboration with both target groups and other stakeholders.

Different techniques and methodsSF believes that we need to contextualise tools and methods at grass root level in order to measure change or outcome results in a good way. We think that both quantitative and qualitative approaches are necessarily adapted for different purposes. In West Africa we have started discussions with a team from Berkeley University in California to evaluate our Speed School Interventions. They will use a so called “randomized approach” which is a quantitative method not very much used in develop-ment collaborations within development education. The idea is to compare children from villages with Speed Schools with children from villages without Speed Schools, and look at the possible differences during a period of time.

A comprehensive approachIn Strømme Foundation, Quality Assurance is also about a com-prehensive approach to the entire organisation where Leadership, Processes, Continuous Learning, Innovation and Improvement, Stakeholder relationships, and People Development and Involve-ment are among the important aspects.

Strømme Foundation is a channel connecting people who want to help, with people who need a just chance. It is our obligation to make sure that this channel is as professional and effective as pos-sible in order to achieve our mission: To eradicate poverty. (Fig.2)

Quality Assurance

Fig. 1

Fig. 2


Strømme Foundation (SF) is committed to empowering people to overcome the root causes of poverty. SF’s identity is based on Christian values, emanating from the life and teachings of Jesus Christ. SF plays a catalytic role in empowering the marginalised sections of society to have access to basic needs, resources, and decision-making bodies and thus aim at promoting a just society.

The Board’s workThe Board has had 6 meetings in 2008 and dealt with 51 issues. The following Board members were re-elected; Liv Næss and Geir Magnus Nyborg (Chairman). In addition one new board member, Svein Ove Faksvåg, who was elected to replace Solfrid Lind. The Board’s work has concentrated on a fi ve year “Master Plan” for SF that will provide the strategic direction for the organisation in the period 2009 to 2013.

The Master PlanSF has undergone a planning process lasting more than six months and involving head offi ce staff, regional offi ce staff and our part-ners in the countries in which we operate. The resulting “Master plan” is a global plan that sets the scope for Strømme Founda-tion’s total activities, its development work internationally, plus information and fundraising work in Norway. It is also a strategic plan that sets out the main strategic choices that Strømme Foun-dation is making in our approach to development, the priorities on which our work will focus, and how the organisation will need to change in order to adapt to the overall direction.

Choice of CountriesSF attaches great importance to its decentralised profi le and be-lieves this feature will facilitate closer interaction with local civil society organisations. The location of the regional offi ces has historical explanations. Each offi ce is responsible for programmes in more than one country and there has been a certain dynamism since the offi ces were established with regard to the countries where SF is active. The Foundation has withdrawn from some countries and has added others.

SF has established the following principles for selecting a new programme country. These are based on the realisation that SF programmes are situated in larger contexts that to a large extent will determine how well SF will reach its goals. National develop-ment and national policies are important preconditions for the outcome and impact of SF activities. Countries will therefore be selected on the basis of:

• The Human Development Index (HDI), created by the UN, which includes multi-dimensional measures of poverty.• People living below the poverty line.• Literacy rate.• Socio-political situation within the country.• The degree of interventions by the national government and other actors.• Regional coherence, allowing inter-country fertilisation of ideas and projects.• Opportunities to reach as many people as possible and generate maximum impact.• National and international funding opportunities.• The history of Strømme Foundation’s infrastructure and branding.

Report from the Strømme Foundation Board for 2008In the next fi ve years, SF will work in four regions; East Africa, West Africa, Asia and South America. The countries of operation within the fi ve-year plan are shown in the table below: Regions and Countries

Thematic Goals and Intervention Lines SF has decided to organise its activities within each programme country on the basis of six intervention lines, which, in various combinations, are assumed to achieve a limited set of thematic goals. The intervention lines are basically bundles of activities assembled on the basis of the skills, capacity, competence and experience of our staff and may be thought of as a menu that programme managers can choose from to assemble a country programme. For planning and capacity purposes, SF has limited programming to a maximum of four thematic goals per region.

The intervention lines on which SF will concentrate its efforts are:

• Provision of holistic pro-poor fi nancial and non-fi nancial services. This refers to the operation of microfi nance projects, including preparation and follow-up to ensure proper management of microfi nance funds at all levels.• Provision of community-managed microfi nance (CMMF). This refers to a model for the management of microfi nance resources that involves community groups and group organisation in the management of fi nancial resources.• Strengthening basic education (formal and non-formal). This refers to the whole range of SF’s involvement in strength ening formal basic education as well as concern for children and adults who for various reasons do not fi t into the models of formal education. SF has developed alternative models for marginal groups (e.g., street children, young girls) in several countries.• Culture for life skills, leadership and value development.• Empowering adolescents on their rights.• Community empowerment for democratisation.

The Norad review In January and February 2008 an independent team appointed by Norad undertook an organisational review to coincide with the end of a fi ve year “framework funding agreement” between SF

and Norad. The review team concluded that there were many positive aspects to SF’s work and some specifi c challenges related to organisational structure and clearer defi nition within the edu-cation sector. They also commented specifi cally that SFs fi nancial control was impressive.

The team recommended that Norad enter a new fi ve year funding agreement with SF and this has now been signed with a small increase in funding over the previous agreement. The recommen-dations from the review team have been taken fully into account in the Master Plan.

Consolidation of SFs Microfi nance operations During 2008 Norad confi rmed that they will not require any repayment of their grants that have been used in SFs microfi nance as recirculating loan capital.

This means that for the fi rst time the microfi nance operations have been consolidated into SF’s accounts in 2008 using the equity method.

During the year the Board approved a revitalisation of Stromme Microfi nance AS (SMFAS) through a transfer of all activities and assets in the Microfi nance Department over to the shareholding company as 01.01.09 with the following assumptions:

• The SF Board is both the General Assembly and the Board of SMF AS.• The CEO of the company will be the General Secretary of SF.• The appointed CEO of SMF AS shall delegate the management of SMF AS including the head offi ce responsibility for all SF’s microfi nance activities to the Director of Microfi nance.

The consolidation of the microfi nance operations in 2008 has made a signifi cant impact on the fi gures, which have also been re-presented for 2007, there is no longer a recirculating “credit component” in the income but the total result for microfi nance is included on one line in the activity account and the net assets included on the balance sheet. The fact that the a substantial part of the MF portfolio is with SF means that this microfi nance net result and the net assets are included both in SF and in the consolidated fi gures. The consolidated fi gures include Strømme Microfi nance Asia (Guarantee) Ltd, which operates in Sri Lanka, and Strømme Microfi nance East Africa Ltd, operating in East Africa.

Financial Headlines

Consolidated AccountsThere was a consolidated surplus of 46 million in 2008 compared to 8.4 million in 2007. The dramatic increase is due largely to exchange rate gains as the microfi nance portfolio is denominated in foreign currency and the value appreciated signifi cantly against the Norwegian kroner during 2008.

Total equity increased by 42.6 million kroner and totals 173.9 million at the year end. The cash fl ow from operational activities is satisfactory; total liquid funds at the yearend were 24.1 million

kroner and there is satisfactory liquidity in the new year.

Strømme FoundationThe total income in 2008 was 129.9 million kroner compared to 127.1 million kroner in 2007. Public Sector income decreased from 56.3 million kroner in 2007 to 54.5 million kroner in 2008 the dif-ference being variations in MFA grants for disaster relief . Private Donations have remained stable; 53.5m in 2007 and 53.4m in 2008 and income from the Corporate Sector has decreased from 7.5m in 2007 to 6.4m in 2008

Financial support to projects in 2008 totaled 103.9 million com-pared to 95.4 million in 2007. The result for the year after change in earmarked capital was a surplus of 8.6 million kroner compared to a 0.9 million kroner surplus in 2007 before microfi nance opera-tions are included, including the result from microfi nance the result for the year was 37.7 million kroner compared to 1.7 million in 2007.

The key fi gures for SF as a percentage of total costs in 2008 are; Administration 7.1% (7.7 in 2007), Fundraising 11.6% (10.5) and Purpose 81.3 % (81.8). There was an increase in fundraising costs in 2008 due to additional expenditure related to the re-launch of “Friends at Heart”, SFs main product for individual giving. An ex-planation of how SF has allocated expenditure between adminis-tration, fundraising and purpose costs is shown in the Accounting Principles.

The Board and Secretary General feel it is correct to present the annual report under the going concern assumption. The organisa-tion is in a good economic and fi nancial position with its footing in the Norwegian fundraising market and its good relations with NORAD and the Ministry of Foreign Affairs.

Working environment and Staff The working environment in SF is considered to be good. The cooperation with the employees’ unions has been constructive and has contributed positively to the development work.

Absence due to illness at the head offi ce was approximately 5 % (2.7 % in 2007) of the total working time including sickness related to maternity. The organization has a company doctor agreement. There were no serious accidents at work resulting in material damages or personal injuries during the year.

In 2008 there were 4 (4) women and 3 (3) men in the Board. Among the employees at the head offi ce at the end of the year there were 13 (14) women and 22 (21) men, and 26 (23) women and 51 (46) men worked in the regions (including all microfi nance and projects). SF strives for a balance of gender at all levels and is conscious about this when employing new staff.

The organisation’s contamination of the external environment will mostly be of an indirect nature. The Board considers this to have minimal contamination effect on the external environment. The organization has no order from the public authorities that has not been complied with.

Financial Risk The Board continue to monitor SF’s fi nancial risk, which is fi rst

REGION COUNTRIES OFFICESWest Africa Mali, Burkina Faso, Niger

East Africa Uganda, Sudan, Tanzania and Kenya

Asia Sri Lanka Bangladesh, Nepal and Myanmar(Burma)

South America Peru and BoliviaRegional Offi ce in Lima, Peru.

Regional Offi ce in Bamako, Mali. There is a possibility that SF will need a satellite offi ce in Ouagadogo, Burkina Faso.

Regional Offi ce in Kam-pala, Uganda, and satellite offi ce(s) in Sudan.Regional Offi ce in Colombo, Sri Lanka, and satellite offi ce in Dhaka, Bangladesh.


and foremost tied up in currency variations. SF’s expenditure is largely in currencies linked to the US dollar or the Euro and with most income in Norwegian kroner exchange rates play a large part in what SF is able to deliver to partners in the South. However, given the nature of SF’s agreements with these partners it is not SF that takes the fi nancial risk but the partners themselves. During 2008 SF entered into fi xed exchange rate contracts in order to secure the 2008 and 2009 budgets at the favourable exchange rate between the Norwegian kroner and the US dollar.

The organisation has no external borrowing, so there will be no serious consequence for the organisation if the interest rates should increase considerably. The credit risk is tied up to the mi-crofi nance business and the decision has been taken during 2008 to transfer the assets of the microfi nance operations into SMF AS, a fully owned subsidiary of SF.

Future Perspective – Finance Crisis?SF has successfully renegotiated a fi ve year framework funding agreement with Norad and the future perspectives are consid-ered to be good for public funding. The board expects the private income to be impacted by the global fi nance crisis and SF has taken steps to diversify sources of private funding by starting a new partnership with Geneva Global, a US based fund for philan-thropists interested in international development work. Having

Kristiansand, 14 May 2009

worked with Geneva Global for the last two years and received signifi cant funding; SF is now entering into a joint venture to seek funds directly from the US and UK. Using Geneva Global’s respected brand name and networks wealthy individuals, trusts and foundations will be targeted at relatively little cost and the early indications are

encouraging. Matching US dollar income to expenditure will also reduce currency risk.

Conclusion The Board would like to thank the leadership team and all the employees for the results in 2008. Collaboration with local part-ners has been extremely good and through continual competence building at all levels of the organization we have reason to believe that even more people have been given the chance they deserve to come out of poverty.

Allocation of the result • SFs surplus of NOK 8 592 145 is allocated to unrestricted retained earnings. • The surplus of NOK 37 460 797 generated within the Microfi nance operation is allocated to restricted Mirofi nance Equity within SF.

Geir Magnus NyborgChairman of the BoardSvein Ove Faksvåg

Joanna Ilbouudo Kabore

Olaf Gundersen

Egil Gjesteland

Gunvor K. Andresen

Liv Næss


Strømme Foundation Activity Account

Note

Acquisition of funds 1 54 546 112 56 315 374 Public Sector grants 54 546 112 56 315 374 2 53 379 785 53 477 990 Private Donations 53 379 785 53 477 990 6 434 959 7 484 389 Corporate Sector 6 434 959 7 484 389 3 10 232 784 8 772 326 Contributions from other organisations 10 232 784 8 772 326 129 979 295 667 Other Income 129 979 295 667 6 5 157 431 798 529 Financial Income 4 979 883 663 769 129 881 050 127 144 275 Total Acquisition of funds 129 703 502 127 009 515 -14 990 381 -12 212 048 Cost of funds acquisition -14 990 381 -12 212 048 114 890 669 114 932 227 Gross Available funds 114 713 121 114 797 467 -9 201 816 -9 042 335 Administration costs -9 289 195 -9 124 445 105 688 853 105 889 892 Available for purpose activities 105 423 926 105 673 022 Purpose Activities 14a -69 291 850 -63 842 662 Project Support - Education -69 291 850 -63 842 662 14b -25 009 533 -22 029 649 Project Support - Microfi nance -6 481 070 -8 849 445 14c -9 582 197 -9 574 043 Information work in Norway -9 582 197 -9 574 043 -103 883 580 -95 446 354 Total purpose activities -85 355 117 -82 266 150 1 805 273 10 443 537 Result before change in restricted equity 20 068 809 23 406 871 8 6 786 872 -9 554 184 Change in Restricted Equity 6 786 872 -9 554 184 8 592 145 889 353 Result after Change in Restricted Equity 26 855 681 13 852 687 15 29 107 131 797 808 Result Micro Finance 19 197 261 -5 564 851 37 699 276 1 687 161 Result 46 052 942 8 287 836 Allocations 8 8 592 145 889 353 Transferred to unrestricted reserves 8 592 145 889 353 29 107 131 797 808 Transferred to restricted MF reserve 37 460 797 7 398 483 37 699 276 1 687 161 Total Allocations 46 052 942 8 287 836

Strømme Foundation

2008

Strømme Foundation

2007

Consolidated 2008

Consolidated 2007


Note ASSETS

Long term assets Fixed Assets 9 203 985 9 303 018 Property 12 152 687 12 282 435 597 944 337 999 Offi ce furniture and equipment 597 944 337 999 5 9 801 929 9 641 017 Total fi xed assets 12 750 631 12 620 434 Financial assets 9 900 000 700 000 Investment in subsidiaries 220 400 220 400 15 120 879 789 92 057 971 Investment in microfi nance 141 473 819 101 087 652 9 3 000 000 3 000 000 Loan to subsidiaries - 10 1 071 737 1 514 751 Pension scheme (overfi nanced) 1 071 737 1 514 751 125 851 526 97 272 722 Total fi nancial assets 142 765 956 102 822 803 135 653 455 106 913 739 Total long term assets 155 516 587 115 443 237 11 2 994 852 2 992 624 Property development 2 994 852 2 992 664 Receivables 3 823 318 1 836 164 Trade debtors 3 823 318 1 836 164 234 500 234 500 Prepaid expenditure 234 500 234 500 805 041 824 861 Public duties 805 041 824 861 941 253 840 614 Intercompany receivables - 588 362 463 663 Other receivables 588 362 811 432 6 392 474 4 199 802 Total receivables 5 451 221 3 706 957 7 2 002 000 1 936 400 Investments in shares and bonds 2 002 000 1 936 400 12 23 828 498 23 271 471 Bank and cash 24 065 501 23 295 070 35 217 824 32 400 297 Total current assets 34 513 574 31 931 091 170 871 279 139 314 066 TOTAL ASSETS 190 030 164 147 374 289

Strømme Foundation Balance Sheet 31.12

Strømme Foundation

2008

Strømme Foundation

2007

Consolidated 2008

Consolidated 2007

Note EQUITY AND LIABILITY EQUITY 8 3 326 092 3 326 092 Founding Capital 3 326 092 3 326 092 3 326 092 3 326 092 3 326 092 3 326 092

Acquired equity

8 14 757 627 21 544 499 Restricted equity (SF projects) 14 757 627 21 544 499 15 92 454 707 91 676 308 Restricted Equity (MF) 101 618 434 97 679 162 8 7 179 969 6 290 646 Unrestricted retained earnings 6 611 291 6 073 776 8 592 145 889 353 Result for the year (unrestricted) 8 592 145 889 353 29 107 131 797 808 Result for the year microfi nance 37 460 797 7 398 483 (78 651) (19 409) Currency differences & Donated Equity 2 330 713 (3 811 049)

152 012 928 121 179 205 Total Acquired equity 171 371 007 129 774 224

155 339 020 124 505 297 TOTAL EQUITY 174 697 099 133 100 316

LIABILITY Long Term Debt 10 2 023 484 2 406 080 Pension obligations 2 023 484 2 406 080 150 000 150 000 Legacy obligations 150 000 150 000 1 475 507 762 917 Staff Gratuities in Regional Offi ces 1 475 507 762 917 279 744 350 000 Other Long term debt 279 744 350 000 3 928 735 3 668 997 Total long term debt 3 928 735 3 668 997 Short term debt 3 972 605 2 877 355 Creditors 3 972 605 2 877 355 2 839 000 3 419 584 Unused public grants 2 839 000 3 419 584 1 002 448 912 550 Unpaid Project transfers 1 002 448 912 550 1 711 708 1 817 838 Employees tax, social security 1 711 708 1 817 838 211 196 1 067 688 Intercompany debt - 1 866 567 1 044 757 Other accounts payable 1 878 567 1 577 648 11 603 524 11 139 772 Total current liability 11 404 329 10 604 975 15 532 259 14 808 769 TOTAL LIABILITY 15 333 064 14 273 972 170 871 279 139 314 066 TOTAL EQUITY AND LIABILITY 190 030 164 147 374 289

Strømme Foundation Balance Sheet 31.12

Strømme Foundation

2008

Strømme Foundation

2007

Consolidated 2008

Consolidated 2007

Olaf Gundersen Liv Næss

Geir Magnus NyborgChairman of the BoardSvein Ove Faksvåg

Joanna Ilbouudo Kabore

Egil Gjesteland

Gunvor K. Andresen


Kristiansand, 14 May 2009


The fi nancial statements of the Strømme Foundation (SF) are prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles. The fi nancial statements have also been prepared in accordance with the “Accounting Standard for Not-for-Profi t organisations”, produced by The Norwegian Accounting Standards Board. This means that, in place of a traditional Profi t and Loss Account, there is an Activity Account which should give the reader a better understanding of how Strømme Foundation has used the resources at its disposal in 2008.

Change in Accounting Principles - ConsolidationSF’s microfi nance operations have been included in the accounts for the fi rst time in 2008 having previously been dealt with in a note. The reason for this change in accounting policy is that the majority of the capital at work in the system was generated through the recycling of grants given to SF by Norad which was lent to microfi nance institutions (MFIs). Until 2008 no written confi rmation had been given that the resulting equity belonged to SF but this has now been clarifi ed; Norad will not require any repayment of their grants that have been used in SF’s microfi nance as recirculating loan capital.The microfi nance operations are partly within SF and partly within daughter companies in East Africa (Strømme Microfi nance East Africa Ltd (SMEA Ltd)) and Sri Lanka (Strømme Microfi nance Asia (Guarantee) Ltd (SMAGL)).Those elements of the operations that are within SF comprise the Strømme Microfi nance Department (SMF Dept), which has a co-ordination function for all microfi nance within SF and provides loans to microfi nance partners in West Africa, South America and Bangladesh.As the nature of microfi nance is from an accounting viewpoint fundamentally different from the rest of SF, the decision has been taken to consolidate the microfi nance operations using the equity method. This means that the results from microfi nance are presented net in the activity accounts as income and as restricted equity in the balance sheet. These fi gures appear both in SF’s accounts and in the consolidated accounts because the microfi nance operations within SF have not previously been included for the reasons given above, whereas the con-solidated accounts include SMEA Ltd and SMAGL.

Transactions in Foreign currencyCosts in the regions are recorded at the exchange rate relating to the most recent transfer from head offi ce, all regional offi ce accounts are recorded at head offi ce using these rates. During 2008 SF entered into forward exchange rate contracts for the US Dollar, more details are shown in note 6. Foreign currency income is recorded at the spot rate on the day of receipt. Principles of allocating costs to Purpose ActivitesFundraising and InformationAll expenditure directly connected to personnel employed as fundraisers and to solely fundraising activity is classifi ed 100% as a fundrais-ing cost. This includes all direct marketing costs and all costs associated with our main fundraising products “Friends at Heart” and “Bridge Builders”.All expenditure on personnel and activity whose prime purpose is connected to information provision is allocated to purpose activity.

The Regional Offi cesStrømme Foundation has four regional offi ces in West Africa (Mali); East Africa (Uganda); South America (Peru) and Asia (Sri Lanka) plus two satellite offi ces in Sudan and Bangladesh.SF works very closely with partner organisations through these regional offi ces so that the vast majority of our partner-facing work is con-ducted by staff in these offi ces and they are therefore considered primarily purpose costs. This includes salaries for all programme staff and the majority of salaries for the regional directors and the accountants who spend most of their time building the capacity and competence of partner organisations and performing audit work to ensure that the money is properly utilised.We have allocated 12.5% of the regional offi ce costs to administration to allow for the costs of administration and accounts for the offi ce itself.

Support for program work from head offi ceEducation and microfi nance specialists are employed to build capacity and competence at the regional offi ce level and ensure quality, they are 100% purpose.Other head offi ce program department activity is related to report writing and applications with a smaller capacity building role, this is 25% purpose, 75% administration. There is also a monitoring role that is split 50:50.

Other support functions at head offi ceThe basis of allocation starts with salaries, which are allocated according to an estimate of the amount of time spent on different activities. Other costs are allocated on the same percentage basis as the salaries within each department. IT costs are allocated on the same basis as the overall salaries allocation, since the primary driver of IT costs is personnel; quality assurance is split 50:50 in line with salaries allocation in the department. The general secretariat is allocated 40% to purpose based on the overall split of the time spent working with the regional directors, partners and advocacy with government in Norway and the countries in which SF operates, compared to administration related to the leadership team and the board and council. Expenses relating to the board meetings and travel for board members are 100% admin costs. We allocate a small percentage of admin and fi nance salaries to purpose in proportion to time spent with regional staff in fi nancial and ad-ministrative competence so that they can pass this knowledge on to the partners. Admin and fi nance staff that do not travel from the head offi ce are 100% admin.

Note 2008 2007Result 8 592 145 889 323Profi t/Loss from sale of securities - -316 103Ordinary depreciation 5 586 300 477 994Adjustment in the value of securities 7 -35 600 -37 600 Change in long term debt 642 334 Changes in accounts payable 670 411 538 319 Difference between pension costs and payments 10 60 417 352 304 Non cash income 7 -30 000 -99 919 Changes in restricted equity -6 786 872 9 554 184 Changes in other current assets and liabilities -2 192 672 1 877 599 Net cashfl ow from operational activity 1 506 463 13 236 101 Acquisition of fi xed assets 5 -757 106 -93 278 Property Development Lillesand 11 -2 228 Proceeds from sale of property 9 895 3 095 Proceeds from the sale of securities 1 591 223 Acquisition of shares in subsidiary -200 000 Net cashfl ow from investment activities -949 439 1 501 040 Cashfl ow from fi nancing activities 0 0 Opening balance of cash and cash equivalents 23 271 471 8 534 330 Net change in cash and cash equivalents 557 024 14 737 141 Closing balance of cash and cash equivalents 13 23 828 495 23 271 471 The balance consists of bank deposits and cash holdings Unused overdraft facility 1 000 000 1 000 000 Cash per balance sheet 23 828 495 23 271 471

Consolidated Cash in SMF AS 25 006 23 599 Cash in Senter for Cultural Development 212 000 - Cash per Consolidated Balance Sheet 24 065 501 23 295 070

Strømme Foundation Cashfl ow(The indirect method)

Accounting Principles


Income Income is entered in the accounts according to the gross method. Costs are entered as they accrue, and income when it is realised. Bequests or donations are recorded as income when there is indisputable confi rmation of receipt. SF follows strict guidelines concerning earmarked funds, which ensures that these funds cannot be used for activities other than those for which they were donated without specifi c author-ity. The Board has set regulations for the handling of earmarked funds when a project is closed. Unused earmarked funds are shown as restricted capital in the balance sheet.

Classifi cation and Valuation of Balance Sheet ItemsCurrent assets and short-term liabilities contain items due for payment within one year after purchase. Other items are classifi ed as fi xed/fi nancial assets or long-term liabilities. Current assets are valued at the lowest of procurement cost and actual value. Other accounts receivable are included in the balance sheet at face value after deduction of provision for expected loss. Items in foreign currency are valued at year end exchange rates. Short-term li-abilities are recorded at the nominal amount at the time of accrual. Fixed/fi nancial assets are valued at procurement cost, but are depreciated to actual value if the fall in value is not expected to be tempo-rary. Long-term debt is entered at the nominal amount at the time of establishment.

Furniture and EquipmentThese fi xed assets are entered in the balance sheet and depreciated over their life span if the life span is more than 3 years and the cost is higher than NOK 50 000. Maintenance of fi xed assets is charged to operating costs, while renovation or upgrading is added to the cost value and is depreciated along with the asset.

Shares in Subsidiary Companies and Affi liated CompaniesShares in subsidiary companies and affi liated companies are recorded at historic cost.

Short-term InvestmentsShort-term investments (shares and share units considered to be current assets) are valued at the lowest of average procurement cost and actual value in the balance-sheet. Received interest and dividend from the companies are entered as other fi nancial income.

PensionsPension costs and the pension obligations are calculated according to the principle of linear earning based on estimated factors for the discount rate; future regulation of salary, pensions and contributions from Social Security, future earnings on the pension fund as well as the actuarial conditions concerning death rate, voluntary resignations, etc. The pension fund is valued according to actual value and is deducted from the net pension obligations in the Balance Sheet. Changes in the obligation due to changes in the pension plans are allocated over the expected remaining contribution period. The same applies to estimate deviations to the extent they exceed 10% of the greater of the gross pension obligations and the pension funds. Arrangements with net obligation are shown as liability and arrangement with net over-fi nancing is shown as fi nancial asset.

These grants are earmarked to specifi c projects and are shown gross including the administrative support element. Settlement with the do-nor is made in arrears once a year. Unused capital must be returned. The current framework agreement with NORAD (2003/2008) requires a minimum contribution of 10 % from Strømme Foundation, and allows up to 8% administration support on the project cost. For MFA funded programmes, the self-contribution requirement varies from 0 to 30% and the administration support varies from 0 to 8%.

The average number of employees at the head offi ce was 35 (34). This amounts to 32 man-labour years in 2008, compared to 30 in 2007. In the Regional offi ces the average number was 54, equivalent to 52 man-labour years, compared to 46 in 2007. In addition there were 11(10) employees in microfi nance in the South, their salaries are shown in Note 15, and 11 (8) employees in total in Sudan and Myanmar, the cost of whom is allocated directly to the program.The total salary cost for the Secretary General in 2008 was NOK 591 977 plus life insurance of NOK 3 620 and pension contributions of NOK 83 890. The Board members have received no remuneration other than travelling costs.

Audit Fees:The cost of the annual statutory audit was NOK 160 000. Fees for certifi cation services primarily connected to NORAD and MFA fi nanced projects were NOK 107 700.Other non-audit services primarily connected to restructuring were NOK 57 300.All amounts are excluding VAT.

Note 1 – Public Sector Grants

Donor Purpose

Norwegian Agency for Dvlpm. Coop. (NORAD) Framework Agreement - Development Programs 36 620 000 35 300 000Norwegian Agency for Dvlpm. Coop. (NORAD) Framework Agreement - Information Activities 1 045 000 962 500Norwegian Ministry of Foreign Affairs (MFA) Education Programs - Sudan 3 200 000 4 699 777Norwegian Ministry of Foreign Affairs (MFA) Improvement of Livelihood - Myanmar (Burma) -64 143 2 000 000Norwegian Ministry of Foreign Affairs (MFA) Restoration and Recovery - Sri Lanka (tsunami) 5 000 000 4 900 000Norwegian Ministry of Foreign Affairs (MFA) Flood and cyclone rehabilitation - Bangladesh 3 334 875Norwegian Ministry of Foreign Affairs (MFA) Flood Rehabilitation - Myanmar (Burma) 495 300Norwegian Ministry of Foreign Affairs (MFA) Disaster Relief for Victims of Ethnic Riots, Kenya 2 000 000 Norwegian Ministry of Foreign Affairs (MFA) Infrastructure projects, African Cultural Sector 500 000 United Nations Development Program (UNDP) Education Intervention - Sudan 1 187 629 Swiss Agency for Develop. & Co-oper. (SDC) Speed School Program - Mali 366 885 Fredskorpset - Young Act Now Exchange Program - Hald International Centre 2 341 827 2 200 000Fredskorpset - Norway South/South Exchange Program - East Africa 1 073 834 1 377 210Fredskorpset – Norway South/South Exchange Program - Asia 810 080 946 712Regional Governments, Agder Lighthouse at Ilha de Goa, Mozambique 165 000 Cultiva, Kristiansand Cultural Initiative Strømme Foundation 300 000 100 000Total 54 546 112 56 315 374

2008NOK

2007NOK

Note 2 - Private Donations

Individual donations 9 449 896 9 434 276Fixed-term donations 38 337 225 39 156 275Events, schools and artists 4 671 391 3 513 664Testamentary donations 714 598 1 271 695Disaster Relief & Rehabilitation 206 675 102 080Total 53 379 785 53 477 990

Friend at Heart-sponsorship, registered under fi xed-term donations, represents the largest source of income with MNOK 31.2 in 2008 compared to MNOK 32.0 in 2007.

2008NOK

2007NOK

Institution Purpose

Geneva Global, USA Speed Schools and Women’s Savings Groups, West Africa 4 726 130 4 760 493 Geneva Global, USA Primary Education and Vocational skills, Bangladesh 2 406 030 2 423 524 Geneva Global, USA Education and Empowering adolescents, Peru 429 648 432 772 Läkarmissionen, Sweden Business Development Services, East Africa 1 513 002 1 113 061 Oak Tree, Australia School construction & restoration, East Timor 504 294 - Disaster Response RLF, Sri Lanka Restoration and Recovery - Sri Lanka 616 180 - HALD international Centre ACT NOW partner admin support 37 500 34 500

Total 10 232 284 8 772 326

Note 3 – Contributions from Other Organisations 2008NOK

2007NOK

Salaries Norway 14 424 283 12 746 236Social Insurance Payment 2 246 403 1 990 007Pension Costs 895 543 1 498 116Other Costs Norway 815 580 747 330Salaries and allowances Regional Offi ces. 5 515 615 4 934 457Total 23 896 424 21 916 146

Note 4 – Salaries and Personnel Expenses /other allowances

All fi gures in NOK Property Business Premises Total

Cost price 01//01/08 413 810 14 336 016 651 434 15 401 260Acquisitions/Disposals 2008 -9 895 58 277 698 829 747 211 Cost price 31/12/08 403 915 14 394 293 1 350 263 16 148 471 Accumulated depreciation 31/12/08 -25 325 -5 568 899 -752 319 -6 346 543 Book value 31/12/08 378 590 8 825 395 597 944 9 801 929 The year’s ordinary depreciation 0 292 551 293 749 586 300Depreciation rate 0 % 2 -10% 20-30 %

Note 5 – Fixed AssetsFurniture

and equipment


Strømme Micro Finance AS is titleholder for the building site and part of the business premises. Since Strømme Foundation operates with an accounting principle to expense all equipment under NOK 50 000, the majority of the inven-tory is not included under fi xed assets in the balance sheet. For the same reason fully depreciated assets do not appear here. All equipment in the Regional Offi ces is shown as project cost.

Consolidated Fixed AssetsThere is additional Property in the consolidated accounts with a cost price of 3 076 690 NOK, and a book value of 2 948 702NOK.

During the year SF made the decision to purchase forward exchange rate contracts for the US dollar in order to secure the budget for the end of 2008, all of 2009 and the start of 2010. Towards the end of the year, as the global fi nance crisis started to have a signifi cant impact on the value of the Norwegian kroner against the US dollar and at the same time there were some uncertainties about income from private sources SF sold the 2010 contracts. All of the 2009 contracts remained in place in order to secure the whole of the 2009 budget but the view was taken that it was more prudent to take the gain and liquidity from the sale of 2010 contracts.

Consolidated Financial income/expenditure.The net fi nancial income is reduced within the consolidated accounts by small losses in SMF AS to 4 797 883 in 2008 and 663 769 NOKin 2007.

Investments are only made with a view to getting a better return on unused funds, and are all placed in such a way that they can be easily realised if necessary. Strømme Foundation takes a very cautious approach with regard to risk in such investments. The bond holdings and the other market based fi nancial instruments are guaranteed minimum repayment of invested amount at the date of expiry.

Financial Income 2008 2007Other Interest income 534,920 385,355 Net Financial Income in the South 175,344 97,071 Other fi nancial income 316,103 Sale of forward exchange rate contracts 4,447,167 5,157,431 798,529 Net curr gains/loss in purpose costsCurrency Exchange Gains 1,428,909 476,427 Currency exchange losses -46,484 -274,764 Net gains shown in purpose costs 1,382,425 201,663

Note 6 – Other Financial income/expenditure

A substantial part of fund-raised capital is linked directly to projects. Many of these are also fi nanced through public sector grants. After the allocation of public sector grants according to the terms of the cooperation agreements, the fund-raised capital is used to cover Strømme Foundation’s own share. From year to year the usage of fundraised capital for this purpose will vary. Balance of closed projects will be reallocated to other projects according to agreed guidelines. After covering the project costs for 2008, the capital earmarked for projects decreased by MNOK 6.79.

Strømme Micro Finance AS (SMF) with its main offi ce in Kristiansand is a wholly-owned subsidiary company of Strømme Foundation. A long-term loan without a specifi c instalment plan of 3.0 MNOK as been given to SMF. This has been utilized for purchase of offi ce premises in Skippergata 3 – 5, Kristiansand, Norway. At the year end there is MNOK 3.0 outstanding.

The Centre for International Cultural Co-operation AS was established in 2008 and as of the 31st December is a wholly owned subsidiary but has not started trading. The intention is for the local government in Kristiansand to take a 35% stake and for the company to start trading during 2009.

Connected PartiesWith the exception of salaries and travel claims, there are no fi nancial transactions with employees or connected persons in Strømme Foun-dation Norway. Outstanding loans to employees in the Regional Offi ces totalled NOK 328 663 at the year end compared to NOK 275 811 at the end of 2008. These are included in other assets in the balance.

All fi gures in NOK

Market based shares 0 30 000 0 0 30 000 30 000Market based bonds 1 936 400 0 63 600 -28 000 1 972 000 2 069 000Total 1 936 400 30 000 63 600 -28 000 2 002 000 2 099 000

Note 7 – Investments in Shares and Bonds

Book value 31/12/07

Netchanges

2008

Changerevaluation

2008

Accumulatedwrite-downs

31/12/08

Book value 31/12/08

Marketvalue

31/12/08

Note 8 Changes in Equity

Strømme Foundation Founding Capital Retained Earnings TotalUnrestricted equity as of 31/12/2007 3,326,092 7,699,724 11,025,816 Prior year adjustment -519,755 -519,755 Revised balance as of 31/12/2007 3,326,092 7,179,969 10,506,061 Result of the year ex MF 8,592,145 8,592,145 Unrestricted equity as of 31/12/2008 3,326,092 15,772,114 19,098,206 Restricted Equity 14,757,627 MF Donated Equity 92,454,707 92,454,707 MF Result for the year 29,107,131 Currency fl uctuations (78,651) TOTAL EQUITY 155,339,020 Consolidated Accounts Founding Capital Retained Earnings TotalUnrestricted equity as of 31/12/2007 3,326,092 7,699,724 11,025,816 Prior year adjustment -519,755 -519,755 Revised balance as of 31/12/2007 3,326,092 7,179,969 10,506,061 Result for SMF AS -568,678 -568,678 Result of the year ex MF 8,592,145 8,592,145 Unrestricted equity as of 31/12/2008 3,326,092 15,772,114 18,529,528 Restricted Equity 14,757,627 MF Donated Equity 101,618,434 101,618,434 MF Result for the year 37,460,797 Donated Equity and currency fl uctuations 2,330,713 TOTAL EQUITY 174,697,099

Change in capital earmarked for projects Region 2008 2007 Change 2008/2007Asia 4,792,135 8,812,424 -4,020,289 East Africa 7,384,969 7,493,539 -108,570 West Africa 84,530 - 84,530 South America 2,495,993 5,238,536 -2,742,543 Total 14,757,627 21,544,499 -6,786,872

All fi gures in NOKName Number Nominal value Book value Result 2007 Equity 31/12/08Strømme Micro Finance AS 500 1 000 500 000 -264 927 -333 605 Centre for International Cultural Co-operation AS 40 5 000 200 000 0 200 000

Note 9 a – Investments in Subsidiary Companies


Hald International Centre (HIS) was in 2004 offi cially registered as a company with limited liability with its Head Offi ce in Mandal. Strømme Foundation’s share in ownership and votes is 1/3. The objective of HIS is giving courses and training for work within missionary organisations, for evangelism and development work, as well as for exchange-programs in different parts of the world. HIS is a Not-for-Profi t organisation and cannot give dividends to the owners. Strømme Foundation had accounts receivable of NOK 96 688 from HIS as of 31/12/2008.

Consolidated AccountsInvestments in subsidiaries in the consolidated accounts comprise HALD International Centre BA, 200 000 NoK and Kolibri Capital 20 400NOK.

Strømme Foundation has a pension scheme that is comparable to the State pension fund. For 2008, the scheme covers 35 (35) people. The Foundation has also signed an agreement for an AFP-plan. This agreement applies for 34 (34) people and is included in the list below.Actuarial calculations have been applied for calculating the obligations and costs in connection with the payment plans. The following as-sumptions have been used for the calculations:

2008 2007Discount rate 5.80 % 5.50 %Expected dividend 5.80 % 5,75 %Salary adjustments / year 4.00 % 4,50 %Yearly G-regulation / infl ation 3.75 % 4,25 %Expected pension escalation 3.75 % 2.00 %Withdrawal probability AFP 25.0 % 30,0 %

The amount is included in Salaries and personnel expenses in the accounts

In 2002 Strømme Foundation took over a property in Lillesand which had been left to us as a legacy gift. The property was valued and en-tered into our accounts at MNOK 2.5 in 2004. Strømme Foundation has chosen to retain the property and seek to regulate it for residential use. In 2005 a portion of land was sold, reducing the book value by MNOK 0.2. Up to this point the cost of the planning work has been MNOK 0.71.

All fi gures in NOKName Number Nominal value Book Value Result 2008 Equity 31/12/2008Hald International Centre BA 200 1 000 200 000 -242 060 2 467 149

Note 9 b – Investments in Associated Companies

Note 10 – Pension Obligations

All fi gures in NOK

Gross pension obligations at 31.12 calculated at 15 905 506 11 102 560 1 326 260 1 789 030- Value of pension funds at 31.12 calculated at -11 986 151 -12 681 576 0 0+ Deferred obligation in case of (loss) / profi t -4 858 651 64 266 447 168 318 917= Calculated net pension obligations at 31.12 -939 296 -1 514 750 1 773 428 2 108 747+ Social Insurance contributions -132 441 250 054 297 333= Pension obligation as at 31.12 -1 071 737 1 514 750 2 023 482 2 406 080 Net over-fi nancing 1 071 737 1 514 750 Net contractual obligation 2 023 482 2 406 080 The year’s pension accrual 1 169 768 1 413 988 72 005 172 628+ interest cost 599 971 528 601 85 235 80 868+ amortisation 0 0 0 -13 778+ administration cost 40 000 38 910 0 0- Return on capital -731 346 -641 940 0 0= Net pension cost 1 078 393 1 339 559 157 240 239 718+ Social Insurance 152 054 177 769 22 171 33 800- Employees pension deductions 0 0 0 0= Total pension cost 1 230 447 1 517 328 179 411 273 518

Secured system2008

Secured system2007

Un-secured system2008

Un-secured system2007

Part of the business premises and the building site are collateral for the overdraft facilities (limit MNOK 1.0). Book value as of 31/12/08 is MNOK 5.4.

Note 11 – Property under development

2008 2007Employees tax deducted account 645 604 576 273Restricted projects and public grant accounts 616 800 5 291 466Memorial Fund 196 968 185 884Restricted funds at the Regional Offi ces 3 810 848 4 474 024Total Restricted bank balance 5 270 220 10 527 647Free funds available in Norway 8 347 717 5 717 988Free funds available at Regional Offi ces 10 210 561 7 025 827Free available funds 18 558 278 12 744 815Total liquidity 23 828 489 23 271 462* See also note 7 for specifi cation of investments in shares and bonds.

Consolidated Liquidity 2008 2007SMF AS 25 006 23 599 Centre for International Cultural Cooperation AS 212 000 Total Consolidated Liquidity 24,065 495 23,295 061

Note 12 – Liquidity and Restricted Assets

Note 13 – Collateral Security

Note 14 Purpose Costs14a Support to education projects 2008 2007Madagascar 0 261,294Uganda 3,571,991 3,466,837Tanzania 1,305,324 1,304,275Sudan 9,313,925 6,046,775Kenya 5,424,653 4,689,602Rwanda 1,558,772 1,447,407East Africa 21,174,666 17,216,190 Mauritania 513,298 778,961Mali 14,237,982 15,307,379Burkina Faso 2,692,610 1,755,942Niger 1,037,217 437,385West Africa 18,481,106 18,279,667 India 169,359 196,049Bangladesh 9,369,744 7,463,723Sri Lanka 4,054,785 1,776,178Sri Lanka - Tsunami Rehab. 981,226 2,129,017East Timor 1,815,048 1,090,525Myanmar (Burma) 689,377 1,159,142Asia 17,079,539 13,814,634 Peru 4,750,263 5,695,782Bolivia 3,513,537 3,883,921South America 8,263,800 9,579,704 Global programs 5,911,893 5,154,131 Net reallocation to admin -236,729 Net Currency gains in ROs -1,382,425 -201,663 Total 69,291,850 63,842,662

Support to partners for Community Managed Microfi nance, also called Self Help womens savings groups, are included under education.


14c Information work in NorwaySF information work in Norway is a part of our purpose, specifi cally to engage the Norwegian public and business community in contributing to development work in the South, whether through fi nancial or other means and through whatever channels are appropriate. This includes 100% of our schools and youth work and 50% of the work of Strømme Business Partner, where information relating pro-poor ethical working practices and the promotion of these are a key element. It also includes all the costs for producing information on both the website and the HTS magazine and 100% of the cultural initiative which in 2009 will be included in a separate company as described in note 9.

14b Support to microfi nance projects 2008 2007Uganda 2,083,003 2,513,764Tanzania 1,811,916 1,592,128Sudan 639,114 306,537Kenya 3,874,422 3,223,749Rwanda 908,938 577,837East Africa 9,317,392 8,214,016 Mali 340,432 888,398Burkina Faso 67,900 0West Africa 408,332 888,398 Bangladesh 6,786,156 7,413,322Sri Lanka 6,208,517 2,215,942Sri Lanka - Tsunami Rehab. 0 2,338,825Myanmar (Burma) 1,195,837 771,381Asia 14,190,509 12,739,470 Peru 1,180,746 187,764South America 1,180,746 187,764 Net reallocation to admin -87,447 Total 25,009,533 22,029,649

Consolidated Accounts Microfi nance grants given for on-lending to MFIs are not accounted for as costs in the consolidated accounts because they become part of the loan portfolio. 2008 2007This reduces costs by -18,528,463 -13,180,204 Total Consolidated 6,481,070 8,849,445

15a Microfi nance in Strømme FoundationBALANCE SHEET: 2008 2007ASSETS: NOK NOKCurrent Assets: Deposits in fi nancial institutions 16,861,586 14,740,407 Gross Loan Portfolio 110,340,507 83,884,023 (Loan loss reserve) -10,605,851 -3,918,144 Net loan portfolio external loans 99,734,655 79,965,879 Other short term assets 781,143 75,836 Total current assets: 117,377,384 94,782,122 Total non-current assets: 8,544,955 7,498,400 TOTAL ASSETS 125,922,339 102,280,522 LIABILITIES AND EQUITY Total current liabilities: 575,947 737,752 Total non-current liabilities: 4,466,603 9,475,798 TOTAL LIABILITIES 5,042,549 10,213,550 EQUITY: Donated equity 92,732,932 91,676,308 Retained surplus (defi cit) Current year 29,107,131 -8,894,489 Retained surplus(defi cit) -356,878 -19,409 TOTAL EQUITY 121,483,185 82,762,410 TOTAL LIABILITIES AND EQUITY 126,525,734 92,975,960 INCOME AND EXPENSES STATEMENT Total operating income 6,403,111 4,800,261 Total fi nancing expenses 1,460,513 1,115,655 Gross fi nancial margin 4,942,598 3,684,406 Provision for loan losses+Write-offs 6,744,481 1,749,913 Net fi nancial margin -1,801,883 1,934,493 Total operating expenses 3,761,859 3,098,764 Net income from operations -5,563,742 -1,164,271 Net income from operations after taxes -5,563,742 -1,164,271 Net income (defi cit) from non fi nancial services 19,604,032 -10,050,150 Total grants received 15,066,841 12,012,029 Net income after grants for the period 29,107,131 797,608

Note 15 – Microfi nance Activities


15b Microfi nance in consolidated accountsBALANCE SHEET: 2008 2007 NOK NOKASSETS: Current Assets: Deposits in fi nancial institutions 33,197,067 19,111,933 Gross Loan Portfolio 123,407,408 89,829,050 (Loan loss reserve) -9,800,000 -6,044,557 Net loan portfolio external loans 113,607,408 83,784,493 Other short term assets 969,278 806,944 Total current assets: 147,773,752 103,703,370 Total non-current assets: 3,758,894 3,293,909 TOTAL ASSETS 151,532,647 106,997,279 LIABILITIES AND EQUITY Total current liabilities: 782,499 1,249,962 Total non-current liabilities: 7,600,256 3,209,165 TOTAL LIABILITIES 8,382,754 4,459,127 EQUITY: Minority shareholder Capital from shareholders 543,611 477,098 Donated equity 108,256,125 97,918,492 Retained surplus (defi cit) Current year 19,121,271 -5,350,949 Prior years -2,840,994 1,896,202 Retained surplus(defi cit) -356,878 -5,188,723 TOTAL EQUITY 124,723,136 89,752,120 TOTAL LIABILITIES AND EQUITY 133,105,890 94,211,247 Intercompany eliminations* 18,426,757 12,786,030 Balance to reconcile 151,532,647 106,997,277 *SF grants for loans, intercompany loan loss provision, small trading balances

INCOME AND EXPENSES STATEMENT Income Interest income from loans (Except to SMF-dept) 9,667,213 6,972,213 Interest income from SMF Dept components) 175,810 Income from investments/deposits 1,143,565 790,482 Other operating income 233,576 111,518 Total operating income 11,220,163 7,874,213 Total fi nancing expenses 251,316 335,456 Gross fi nancial margin 10,968,847 7,538,758 Provision for loan losses+Write-offs 5,145,833 3,090,564 Net fi nancial margin 5,823,014 4,448,194 Operating expenses Personnel expenses 3,591,019 2,438,573 Other operating costs 3,628,669 3,339,067 Total operating expenses 7,219,688 5,777,640

Net income from operations -1,396,674 -1,329,446 Income tax 202,982 28,407 Net income from operations after taxes -1,599,656 -1,357,853 Income from non-fi nancial sources 21,714,806 961,341 Expenses from non-fi nancial services 2,096,518 11,070,876 Net income (defi cit) from non fi nancial services 19,618,288 -10,109,535 Total grants received 1,201,987 6,116,439 Net income after grants for the period 19,220,619 -5,350,949

15c Microfi nance Equity reconciliation

Change 2007 / 2008 Strømme Foundation Consolidated NOK NOKOpening Balance 2007 91,676,308 97,679,162 MF result 797,808 7,398,483 Donated equity and currency difference (19,409) (3,811,049) Add back Loss in SMF AS 351,838 Opening Balance 2008 92,454,707 101,618,434

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Board Members pr 31. desember 2008Geir Magnus Nyborg - Chairman Gunvor K. Andresen Solfrid Lind Egil Gjesteland – ny i 2008Joanna Ilboudo Kabore - ny i 2008Liv NæssOlaf Gundersen

Council Members pr 31. desember 2008Kurt Mosvold Vidar BlaksethDagrun EriksenAnsgar GabrielsenHanne-Grete Brommeland LarsenRannveig Rivedal NilsenGrethe RaddumGunnleik Seierstad – new in 2008Svein Ove Faksvåg - new in 2008Finn Arild StieHilde Strømme - new in 2008Per SævikGunnar ThelinKnut Vollebæk - new in 2008Hege WallevikArne Olav Øyhus

Strømme Foundation Board and Council Members

Strømme Foundation is member of the Norwegian Control Committee for Fundraising

Strømme Foundation is a signatory to the Code of Conduct for the International Red Cross and Red Crescent Movement and NGO’s in Disaster Relief.

Editor: Egil Mongstad, Strømme Foundation Lay-out and graphic design: Oddvar Paulsen, Strømme Foundation

All photos: Strømme Foundation + Per Fronth.

Skippergaten 3 • Box 414 • N-4664 Kristiansand Norway Tel +47 38 12 75 00 • Fax +47 38 02 57 10 • Org. no 952 002 139

E-mail: [email protected] • www.stromme.orgwww.strommestiftelsen.no

Strømme Foundation Annual Report 2008

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