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Annual Report 2012
World Education Australiabuilding skills, changing lives
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Our Vision is a world without poverty wherepeople have access to resources and opportunities toimprove their own lives.
Our MissionThrough micronance and skillsdevelopment we enable the poor to improve theirincomes and change their lives forever.
Micronance is the provision of nancialservices to the poor. Micronance services are notjust loans (microcredit), but include savings, microinsurance and money transfer products. The desireand capacity to save represent a critical step towardseconomic self-sufciency.
Skills BuildingLiteracy and numeracyare essential if human beings are to extend theirnatural capability. Those who want to run any typeof enterprise also need basic nancial literacy, tounderstand book keeping, budgeting, borrowing andsaving options. Livelihood skills are the vocationaland technical know-how that enhances a personsproductivity.
We believe no one deservesa lie o poverty.
Contents
Our Mission 2From the Chair & CEO 4
Where We Work 6
Good Return 8
Our MFI Partners 9
Sustainable Livelihoods 10
Sustainable Energy 12
Social Performance Management 14
Update on Vanmai SCU, Laos 16
Our First Field Ambassador 17Australian Programs 18
Board of Directors 19
Governance 20
Concise Financial Report 21
Thank You to Our Supporters 26
The objective of the Australian Government aid program,
delivered by the Australian Agency of International Development
(AusAID) is to assist developing countries to reduce poverty and
achieve sustainable development, in line with Australias national
interest. World Education Australia is one of 42 non-government
organizations accredited with AusAID.
World Education Australia is a member of the Australian Council
for International Development (ACFID). We are a signatory to
the ACFID Code of Conduct and committed to upholding it. Our
summary nancial reports comply with the standards set out by
the ACFID Code of Conduct. The Code requires non-government
development organizations to meet high standards of corporate
governance, publicaccountability, and nancial
management.
More information about the
Code can be obtained from
ACFID. Visit
www.acd.asn.au.
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Haydee Molenos StoryHaydee runs a sari sari (variety) shop in thePhilippines, and her husband is a rickshaw driver
in the local village. Theyre a typical family inthe Philippines that only needed a small loan togreatly improve their lives.
Haydee took out a $75 loan through Good Returnto plant a rice paddy and buy fertiliser. She usedsome of her prots to help pay for her eldest sonscollege tuition.
While repaying her loan, Haydee participated in anancial literacy class provided by Good Return.
She learned how to track her expenditures andincome and manage her debt. Her loan is nowrepaid, and she is sharing her knowledge with herdaughter and daughter-in-law.
Haydee also heard about Good Returnssustainable energy program, and has startedselling solar lamps to her customers as anadditional source of income.
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Letter rom the Chair & CEOConsolidation and growthAs we look back on 2012, it was pleasing to see our
organisation come of age. Now nine years since
incorporation, this report shows World Education Australia
(WEAL) has consolidated both its nancial position and
operational capabilities. And in a year of solid growth, our
agship program Good Return further extended its delivery
of sustainable training and micronance solutions to the
poorest in our region. The milestone in March of having
supported 2,000 vulnerable women across the region was
one we are proud to have achieved.
This maturity was rewarded at the end of the year when
the Commonwealth agency AusAID accorded WEAL
full accreditation status. In addition to endorsement of
high standards of operation and governance, this means
WEAL is eligible for signicantly more government grant
support than before. With this extra leverage, we are betterresourced than ever to lend a hand to those striving to
escape a life of poverty.
Good Return deliversWhile WEAL remains our corporate name, Good Return
is now rmly our public face. Its website provides a highly
effective means of engaging with the Australian public. This
ability to rally so many to the war on poverty in turn attracts
corporate partners, who are making the Good Return brand
and its message a core part of their social responsibility
effort.
WEAL is committed to education, in basic and nancial
literacy and vocational skills, as the key to empowering
people. Donations and donated loans supported our
Sustainable Livelihoods program to deliver training to
6,215 women in East Timor, Nepal, Tonga, Laos and the
Philippines.
An all too common feature of economic hardship is energy
poverty. Our Sustainable Energy initiative operates in six
countries, where it has encouraged supply chains that
allow the rural poor to access solar power and re-designed
cooking stoves. While still in its build phase, our green
loans have already helped nearly 1,000 households
acquire these renewable and energy efcient appliances.
During the year, we continued to work with MFI partnersto extend their focus from simply nancial outcomes to
include social performance and environmental benchmarks.
To that end, WEAL has become a signatory to The Smart
Campaign, a global agenda to improve transparency
and accountability in the micronance sector. This report
provides further information on our achievements this past
year.
Thanks to the teamAusAIDs positive feedback during the accreditation
process was a well-earned boost to the team. It reectsthe progress of recent years, and the effort of staff, paid
and volunteer, in helping build a professional management
framework. So to all our volunteers and supporters, as
well as our corporate partners, we offer grateful thanks.
We appreciate and look forward to their continuing support
as together we pursue a shared vision of a world without
poverty.
Neild McIntoshChairman
Guy WinshipChief Executive Ofcer
I am so pleased that the Foundationhas been able to support a project that hashad as much impact as Skills or Lie, aninitiative which is truly transorming thelives o thousands o people across AsiaPacic, helping them to ght poverty and
environmental degradation by teachingthem skills, sustainable arming practicesand providing access to micronance.
Derek Young, Accenture Australia Foundation
Thank you to our corporate partnersWorld Education Australias corporate partners have
provided us with invaluable support. And not just in funding,
but with pro-bono personnel, promotional opportunities,
new partnership opportunities, and employee engagement.
We would like to extend a particular thank you to:
Accenture Australia Foundation
Origin Energy Foundation
Westpac Group
Clayton Utz
Deloitte Foundation
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Mary Ann and her husband were in debt and had difcultysupporting their family. He didnt have a regular income andshe was caring full time, for her kids and for her bedriddenmother-in-law who lives with them.
She decided to take out a loan to help earn money for thefamily. Mary Ann started with a Php 2,500 loan ($60 AUD),which she ploughed into creating a business, a small shopout of her house selling herbal medicines. She also protedby selling food in her village, repackaging crackers bought inbulk into smaller quantities.
Life was hard for us since my husband did not have a regularjob and we had a hard time making ends meet, she saysabout life before the loan.
But even while they were struggling, Mary Ann believed theycould live a better life. I really wanted to do something to
help improve our situation, she says.
Once she had the loan, things became more hopeful. I feltthat life got better. Having a loan helped me to work harder,especially as I need to pay for it every week, she says.
That start in business from a loan, and the need to pay it off,changed Mary Anns life. She was able to make a nancialcontribution to her family. Life is different I became morecreative in looking for new ways to earn money, she says.
Alongside the micronance loan, Mary Ann participated innancial literacy education offered by Good Return, given
through a number of lively sessions which include practicalknowledge and experiential learning. For Mary Ann, the mostuseful lesson was debt management training, which helpedher to understand what it meant to be in debt and how tobe more astute about money. I was struck by the story ofSara and I kind of reected to myself that I dont want to be
like Sara, who was drowning in debt. I felt that way becauseduring that time, I realized I had lots of debts. I told myselfafter that day, that I will pay off my loans, she says. TodayI am happy that I paid some of it and I can sleep soundly atnight. Though I still have debt and borrowed money, I only
borrow when really needed and I only take out a loan to usefor business so I can earn more income.
Mary Ann also learned to pay attention to cash ow, how tokeep records, and to identify expenses that can be reduced.What she learned, she passed on to her husband and twochildren. Every time I got home from the training, I would tellmy husband and my kids what happened, what I learned andrealized from the training. Then I was surprised one day whenmy husband gave me some money out of his savings, shesays.
Now that shes repaid several loans and has a successful
business, Mary Ann has become a nancial literacy trainer inher own village, coaching women on budgeting. She has alsobecome a village agent and sells solar lamps and fuel efcientstoves. It greatly helped me to pay for the school fees of mydaughter in college. I also look at it as a business opportunity.So whenever I do the budgeting sessions, I bring with mesample products so I can present it to potential buyers, shesays.
For someone who only nished high school, the ability tobecome a trainer has enriched Mary Anns life, boosting hercondence and affording her the social status that comes
with teaching. I never had thought about being able to teachothers Its great to see and hear other clients tell you howthey appreciated the training sessions you conduct and thatthey have learned something from the training. And some ofthem call me Maam!
Mary Ann Arevalos Story
Mary Anns cashow diary.
Mary Ann in red, leading a warm-up
activity at a nancial literacy class. 5
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Nepal Laos
Cambodia
Philippines
East Timor
Kalimantan,Indonesia
Australia
NepalPrograms Good Return, Skills for Life,
Sustainable Energy
Partners Nirdhan Utthan Bank Limited,
World Education Nepal
Key Activities Micronance, skills building, nancial
literacy, renewable energy technologies,
social performance management, basic
literacy and numeracy
Where We Work
West Kalimantan, IndonesiaPrograms Good Return, Skills for Life,
Sustainable Energy
Partners Credit Union Keling Kumang, Solidaridad,
World Education Indonesia, Stichting
Doen Foundation
Key Activities Micronance, skills building, nancial
literacy, renewable energy technologies,
social performance management
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Tonga
Fiji
LaosPrograms Vanmai Savings & Credit Union
Partners World Education Laos
Key Activities Financial literacy, skills building,MFI capacity building
AustraliaPrograms ConnectEd
Partners Traditional Credit Union, World
Education International, YWCA New
South Wales
Key Activities Financial literacy, skills building,
MFI capacity building
Tonga & FijiPrograms Good Return, Sustainable Energy
Partners South Pacic Business Development
Micronance Ltd.
Key Activities Micronance, nancial literacy,renewable energy technologies
East TimorPrograms Good Return, Skills for Life,
Sustainable Energy
Partners Moris Rasik, Hivos, INFUSE / UNCDF,
Irish Aid
Key Activities Micronance, skills building, nancial
literacy, renewable energy technologies,
MFI capacity building
PhilippinesPrograms Good Return, Skills for Life,
Sustainable Energy
Partners Saint Elizabeth Community
Development Program (SECDEP)
Key Activities Micronance, skills building, nancial
literacy, renewable energy technologies,
social performance management
CambodiaPrograms Good Return, Skills for Life,
Sustainable Energy
Partners Thaneakea Phum Cambodia,
World Education Cambodia
Key Activities Micronance, skills building,
nancial literacy
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Good Return: Our Major InitiativeThe Good Return website is designed to engage
Australians to learn more about poverty in our backyard
the Asia Pacic, where two thirds of the worlds poor live.
We connect Australians to individuals who need loans to lift
themselves out of poverty.
This year has seen signicant growth of the Good Return
community. We reached the milestone of fully funding
2,000 loans to women by the end of March. We ran
four major campaigns, which were: Anti-Poverty Week,
Christmas gifts, International Womens Day, and Mothers
Day gifts. Good Return was featured in media such as ABC
Radio, mX, and the Big Issue.
We strive to educate and engage Australians on topics
such as micronance, poverty, sustainable energy, nancial
literacy, and other topics around poverty alleviation. We
do this through our blog, Facebook, Twitter, LinkedIn, and
other social media channels. We also maintain a YouTubechannel which features videos about what, where, and with
whom we work.
Good Return has become a meaningful and personal way
for Australians to make a difference in ghting poverty.
Visit the Good Return Website:
www.goodreturn.org
Good Return Highlights 2,591 ully unded loans to women
12,955 amily and community membersbenetted through low-on eects
6,215 individuals participated in skills trainingand nancial literacy classes (98% women)
654 micronance institution sta participatedin capacity building training (55% women)
99.9% repayment o all loan unds
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Our Micronance Institution PartnersWorld Education Australia and Good Return work with
micronance institution (MFI) partners to ensure funds
raised through Good Return assist the working poor.
We conduct a thorough selection and due diligence
process with all in-country partners. We assess the integrityof the micronance institution and look for partners who
share our commitment to transparency.
This year saw the start of two new partnerships with MFIs
in Cambodia and Indonesia. All our partners undertake to:
Push the frontiers of micronance by reaching out to
poorer, marginalised clients
Consider client satisfaction and adjust services to
meet client needs
Strive to improve their efciency and effectiveness
and to pass on cost savings to clients
Share knowledge and be transparent in theirdealings with clients, staff, and community
SECDEP, PhilippinesIn the Philippines, our partner is St. Elizabeth Community
Development Program (SECDEP) who currently serves its
primarily women members from 6 branches on the island
of Panay. From its start as a food program, SECDEP has
evolved to provide micronance, education and health-
related programs to its members. Good Return helps
SECDEP deliver sustainable farming and small business
training, and nance for sustainable energy products.
SPBD, Tonga and FijiSouth Pacic Business Development (SPBD) is part of a
network of micronance institutions working in Fiji, Samoa,
and Tonga. It is committed to eradicating poverty by
giving women in villages the opportunity to start and grow
sustainable enterprises. SPBD also provide its clients with
a range of services to support home improvements and
education. Of all loans distributed, 99% go to women, 80%
to clients in rural areas, and some 40% to single mothers.
This year marked our Sustainable Energy Programs
expansion into Fiji.
Nirdhan Utthan Bank, NepalNirdhan Utthan, the bank for uplifting the poor, was
established in 1998 and is now a regulated micronance
bank. It aspires to be a bank with a social conscience, that
enables the poor to contribute equally to a prosperous,
self-reliant rural society. Nirdhan is now Nepals largest
micronance development bank, with some 125,000
clients, primarily from rural villages.
Moris Rasik, East TimorMoris Rasik means independent and dignied life in
Tetun, and it works exclusively with women savers and
borrowers. Moris Rasik was established in 2000 as a
specialised micronance institution, and has grown by
offering saving services and loans to micro-entrepreneurs
in the district capitals as well as rural areas without banks.
It is now the largest MFI in East Timor.
CUKK, West Kalimantan, IndonesiaWe began a relationship with Credit Union Keling Kumang
(CUKK) this year. Keling Kumang refers to a folk story
about a strong husband and strong wife who work
together to build a resilient community. From humble
beginnings, the members of Keling Kumang have made
their own folk story growing to a community of over
110,000 strong. It is based in West Kalimantan, Indonesia.
TPC, CambodiaAnother new partner, Thaneakea Phum Cambodia (TPC)
is a credit union that has a social vision and a business
orientation that provides poor women with the economic
opportunities to transform the quality of their lives and
communities. Established in 1994, TPC now has 40
branches and 95% of its clients live in rural areas. More
than 40% of its clients are under the national poverty line,
and 85% of loans go to women.
All the best to Moris RasikWe are pleased to announce that Moris Rasik has begun
its transformation to a regulated nancial institution. It
has received funding from the World Banks International
Finance Corporation (IFC) to do so. Funding from NZAid
means the nancial literacy program, piloted by Good
Return, will continue as well.
It has been our pleasure to have worked with Moris Rasik
over the past three years. Together we funded 530 loans to
women who wanted to start or grow a small business, and
provided 1423 participants with nancial literacy training.
As it takes the next step in its development, we wish Moris
Rasik well in its mission to serve families in East Timor.
I would like to thank GoodReturn or all the great supportprovided to Moris Rasik inpreparing our institution ortransormation to a regulatednancial institution. I learned
a lot personally rom ourpartnership, especially thanksto the huge contribution o Guy[Winship].
Lola dos Reis, ManagingDirector o Moris Rasik
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Sustainable LivelihoodsGood Return strives to ensure that access to nance leads
to positive outcomes for the poor. Money used well can
help a family escape poverty, whereas money used badly
can lead to further indebtedness and despair. To succeed
in a market economy, one needs the basic skills and
competencies to manage money effectively. Good Returnsupports the clients of our micronance partners to develop
these skills.
We help to establish a client training unit within the partner
micronance agency, build the training and management
skills of the staff, conduct assessments of training needs,
and develop training programs based on identied needs.
By building local capacity in this way, the micronance
partner can continue to deliver training to its members long
after Good Return support has ended.
We develop practical courses that focus on crucial skills
such as:
Basic literacy and numeracy
Household nance: budgets and cash ows
Introduction to savings and credit
Understanding interest rates
Debt management
Converting loans to income requires many skills. Good
Return works with local partners to help the poor to
develop the vocational and business skills, knowledge and
experience needed to improve their livelihoods. We provide
training in:
Small business management including how to assess
the market, create a business plan, manage nances
and market products and services;
Sustainable agriculture using proven methods to
improve yeilds and returns in an environmentally
sustainable manner.
A client who participates in a nancial literacy orsmall business management course will develop an
understanding of how to calculate prots from their
business. They also learn how to make a savings plan
for the future, including setting aside a portion of money
for emergencies. In practical terms, borrowers are better
able to manage their money from both a household and a
business perspective meaning they are more informed
and can utilise MFI services effectively to lift themselves
out of poverty.
Program Highlights Active in 5 countries: East Timor, Nepal,
Philippines, Tonga, and Laos
627 MFI sta trained, 58% women
6215 borrowers completed training, 99%women
A group of women after a nancial literacy
class in the Philippines.
Following the basic numeracyclass I know how to count andhow to write numbers and howto save money. Now, before I buysomething new I make a list and aplan. I have a plan to save moneyfor emergencies and school fees. Ican list expenses and income frommy kiosk business.
Training participant from
Liquica, East Timor
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Financial diary mentoring in Tonga.Nepalese women at a class.
Llanie in the Philippines
teaches her rst module of
nancial literacy. Her class
is pictured left.A nancial literacy class in
East Timor. 11
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Sustainable Energy ProgramOne fth of the population of the Asia Pacic region do
not have access to electricity, and many more have only
intermittent access. Additionally, 3 billion people worldwide
still rely on traditional, biomass solid fuels (wood, charcoal)
for their basic cooking and heating needs.
Energy poverty is closely related to economic poverty. Not
only does it impinge on normal human wants such as the
ability to cook, light or heat a home, it represents a real
barrier to social and economic development. The pressure
to nd fuel absorbs hours of time, usually that of women,
and can be highly damaging to the natural environment.
Sustainable energy refers mainly to renewable sources
(solar, biogas, wind, micro-hydro), but also energy efcient
products, such as stoves that reduce the amount of fuel
needed for cooking.
Good Returns Sustainable Energy Program aims to helppoor families gain access to affordable, sustainable energy
products. Our approach is connecting the dots. We
assess the needs of our MFI partners clients; we identify
potential distributors and suppliers of appropriate products;
and nally we connect our partner with the distributor and
work with them to develop nancial and technical tools to
develop a sustainable distribution network over the
long term.
By combining sustainable energy with micro-loans, Good
Return is able to target poorer segments of the population,
who are usually more vulnerable to energy poverty or
energy hardship. Many of these clients would not be able
afford these technologies without a loan.
On top of that, micronance clients most of them women
are able to generate an additional income by selling
renewable energy products in their communities. Through
training and continuous support, we help them to build theirskills and develop a new green business.
The Sustainable Energy Program is now active in
six countries in different stages. We have seen good
momentum in the Philippines and progress in Nepal over
this nancial year. More sales are expected during the next
nancial year as the program is fully implemented with our
newer partners and additional products are included in the
supply chain.
Program Highlights Active in 6 countries: Nepal, Philippines, East
Timor, Indonesia, Tonga, and Fiji
350 products sold
Products include solar lamps, in-builtimproved cook stoves, biogas systems, andsolar home systems, and movable uel-ecient stoves
85 women trained as village agents (includesknowledge on use, maintenance, afer-salesservice, and marketing)
A solar lamp provides a home in Indonesia
with affordable and effective lighting without
any air pollution.
I was using a kerosene lampbefore switching to the solar lamp.It has allowed me to save moneyby reducing how much keroseneI use. Before, I was using 1 litreof kerosene a week, and now it isonly 1 litre per month. Also thereis no smoke or soot with the solarlamp, so it is better for my asthma
and my kids health!
Village agent in the Philippines
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Launching a new fuel efcient
stove in the Philippines.
A newly installed biogas system in Nepal.
Elias is mixing animal dung with water to
provide his home with clean energy.
Conducting an Energy Needs Assessment inIndonesia and visiting a micronance-funded,
community-managed micro-hydro plant.
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Social Perormance ManagementWe strive to be an effective non-prot that creates real
benets in the lives of the MFI borrowers with whom we
work. It is sometimes difcult to measure exactly what
the outcomes are of our programs, and to empirically
demonstrate positive results.
Social Performance Management (or SPM) provides Good
Return and our partners with a framework in which to
set social goals and targets which can be monitored and
managed just as more traditional accounting data are
used to measure nancial performance.
Good Return partners with MFIs with whom we share a
common social mission: to enable the poor to improve their
incomes and change their lives forever. Our SPM program
will help ensure that our support is creating positive change
in the lives of the poor.
As the micronance sector develops, an increasing numberof institutions are reaching protability, thereby ensuring the
provision of services can be sustained well into the future.
We are also working with partners to introduce the concept
of environmental performance management as part of a
triple bottom line approach to management.
Good Return is aligning its work with industry-wide
initiatives such as The Smart Campaign, the Universal
Standards for Social Performance Management and
the use of the Progress out of Poverty Index for poverty
measurement, tracking and reporting.
Where were piloting SPMThis year marks the launch of our SPM program. We have
recruited a Social Performance Specialist who works with
us on implementing projects in-country. We have also
developed partnerships with the Smart Campaign, national
micronance networks and associations, the Social
Performance Task Force Asia working group, and other
industry stakeholders.
We are focusing on several specic initiatives with our MFI
partners:
Conducting in-depth Client Protection Assessmentsand social audits (using the Cerise Social
Performance Indicators tool) to inform targeted
capacity building initiatives.
Assisting to dene social and environmental goals
and targets, and embedding these in the planning
processes of the institution.
Supporting the implementation of poverty scorecards
such as the Progress out of Poverty Index to
measure the poverty level of clients and make
business and strategic decisions to reduce client
poverty and target new clients under a certain
poverty level. Promoting the adoption of the Client Protection
Principles and Universal Standards for Social
Performance Management through staff trainings,
industry briengs and targeted initiatives.
About the SMART CampaignGood Return has signed a partnership agreement with the
Smart Campaign (ACCION International, USA) to:
Promote the endorsement and implementation of the
Client Protection Principles amongst our partnersand their peers in the countries in which they work
Undertake in-depth Client Protection Assessments of
partners
Build awareness and strengthen capacity of our
partners in client protection
The 7 Client Protection Principles are:1. Appropriate product design and delivery
2. Prevention of over-indebtedness
3. Transparency
4. Responsible pricing
5. Fair and respectful treatment of clients
6. Privacy of client data
7. Mechanisms for complaint resolution
Universal Standards or SPMThe micronance sector, with the participation of
stakeholders representing MFIs, donors and NGOs,
has agreed on the following standards. Good Return is
working with its partners to work towards achieving these
standards:
1. Dene and monitor social goals
2. Ensure board, management, and employee
commitment to social goals
3. Treat clients responsibly
4. Design products, services, delivery models and
channels that meet clients needs and preferences
5. Treat employees responsibly
6. Balance nancial and social performance
For more information, see the Good Return website.
The benets o SPMSocial Performance Management is a powerful tool which
ensures that our partners clients are truly benetting from
MFI services. Consumer protection is central, and includes
mandates such as do no harm, and creates feedback
channels for clients to have a voice.
With effective Social Performance Management, MFIs can
prove that they are meeting their social mission, and invest
in reaching more clients who live below the poverty line.
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James Le Compte delivering a training session
in Nepal on social performance management.
Carmelita Bacasand her husband didnt earn enough to supportthree children and save or emergencies. Now,they can.
Its difcult to meet a familys needs on just $5 a day.Thats what Carmelita and her husband earn. She receives$2 a day working as the secretary to her local council,paid monthly. Her husband makes deliveries and carriespassengers on his motorcycle, and makes about $3 on agood day.
But what happens when the motorcycle breaks and schoolfees come due? Without any savings to meet these needs,Carmelita turned instead to Good Return, and took out a$125 loan. This boost means that her husband can makerepairs and keep working, and her son can stay in college.
Carmelita has fully repaid her loan, and a second one tostart a piggery. She just received a third loan to buy anotherpig, a good sign that her business is thriving!
In Nepal with Nirdhan Bank
management working on their social
performance management strategy.
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Update on Vanmai Savings & Credit Union, LaosIn late 2010, after several years of ground work by WEAL
and our afliate World Education Inc. Vanmai Savings &
Credit Union (SCU) was ofcially launched in the southern
province of Salavan, Laos. The meaning of Vanmai is new
day, and it represents the dawn of an effort to help the rural
poor of Laos access the nancial tools essential if they areto escape poverty.
Vanmai SCU was conceived in 2006 in response to the lack
of savings and credit services available to rural households.
Recognising the importance of access to nance for
economic development and poverty reduction, the goal was
to create a robust, locally owned and managed institution
that offered those in rural villages a safe place to save and
access funds to invest in their livelihoods.
The Lao central bank approved the concept, and WEAL
and World Education Inc. raised initial funding from various
sources, including AusAID, the Morawetz Social JusticeFund and the Australian public.
Vanmai SCU achieved nancial self-sufciency in 2011,
and we expect that it will soon qualify as a Good Return
partner. This will allow Australians to support Vanmai
directly with loans to its rural clients and with donations to
cover the cost of nancial education for its rural members.
Mrs Ka, Vanmai SCU memberMrs Ka (pictured below) recently took a loan for preparing
her land to plant sweet potato and peanuts, which she will
sell at the Lao Ngam market. This is the third loan she has
taken from Vanmai SCU, and having turned a prot each
time, she has expanded her plantation to cover her growing
familys living costs.
She is also saving to build a new house on her land. The
new house will be roomier and built from better materials.
Mrs Ka and her husband have 8 children.
Before Vanmai was in Mrs Kas village the only option was
money lenders who charged 10-15% interest per month.
Beyond her nancial services needs she has asked Vanmai
if they could provide agricultural training, particularly how to
reduce the pests that attack some of their crops.
Program Highlights 657 members across 42 villages in Lao Ngam
District
211 loans disbursed to the value o 341.1million kip ($41,000 AUD)
Fully covering its own operational expenses
Seventeen training courses completedby multiple members o the Vanmai SCU
sta, Board o Directors, and committeeson leadership, eective management,credit management, customer relations,gender awareness and social perormancemanagement
194 members participated in gender awarenesstraining
172 members participated in animal husbandrytraining
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Anthony Back was World Education Australia / Good
Returns rst Field Ambassador. He travelled Nepal for
several weeks during December 2011.
While in Nepal, Anthony met and interviewed Good Return
clients, hearing rst-hand how micronance and educationhad given women in small, remote communities the
opportunity to improve their own lives.
We hope to grow the Field Ambassador program over the
next few years, and this rst trip marks a positive start.
On the road in Nepal: December 21, 2011The past 2 weeks have been lled with travel. I have
crossed a large part of the Nepal visiting a number of
districts where our Good Return clients are situated from
the Terai plains which are made up of at farmlands to the
mountainous Ilam district. It required two days alone totravel up to the west of Nepal on a bus, an experience that
I will not forget any time soon!
The two main methods of transportation so far have been
motorbike and local bus. At times conditions have been
tough, but Ive been spurred on by the client feedback that
Im receiving.
Shirbati Rajbansi lives in a small village in the eastern part
of Nepal. At the end of our meeting I asked her if she had
any comments or suggestions. She said, The loan has
improved my familys life, if I did not have access to this
loan I would have to go to money lenders who only givesmall loans at extremely high interest.
Sag Rajbansi offered similar comments, saying, Without
this loan I would have to go to money lenders who have
a 36% to 45% interest fee. These and other similar
sentiments are widespread in Nepal.
Rina Majhi said that she is very happy with Nirdhan [Good
Returns MFI partner in Nepal] as they are the only bank
around. She also said that the loan was helping to make
her life a little easier and more hopeful for the future.
Wherever I have been so far with no exception I have beenwelcomed with warmth. I have now met with 43 clients. The
aim of these meetings is to monitor a section of our clients
to assess how our programs are progressing.
I think it is important for us in Australia and the developed
world to imagine what our lives would be like without
access to a bank or similar institution. How would you
buy your house or apartment? Where would you put your
savings? How would you start that business you have been
dreaming of? Life would be a lot harder.
These Good Return clients are now able to get much
needed funding so that they have the opportunity to beginto save their money safely, construct their family home
and start a business which will support their family. It is an
important step towards lifting themselves out of poverty.
The loan that Good Return gives also provides livelihood
training so that their improvements are sustainable.
Anthony Back, Good Return Field Ambassador
Our First Field Ambassador
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World Education Australias Board sets policy and strategic goals that guide our operations. The Boardis made up of not less than ve persons who are elected by the members for a renewable two-year term.Elections for the Board take place at the AGM.
Neild McIntosh, ChairmanB.A. (Actuarial Studies), M.A. (International
Social Development)
Neild has extensive executive
experience in business, and now lls
non-Executive Director roles in both
the corporate and charitable sectors.
He is on the board of equigroup
(a subsidiary of CBA), and a Vice
President of Can Assist, a charity
helping cancer patients in NSW.
David KahlerB.Sc., M.A., M.Ed, Ed.D.David is an organisational
development and training specialist
with over 42 years relevant
experience. He is a Vice President
of World Education Inc. (WEI),
overseeing new program development
and management in Europe.
Guy Winship, CEOB.Soc.Sc., B.Com (Hons), M.Sc. (Town &
Regional Planning)
Guy is a seasoned development
practitioner. He has worked with and
advised NGOs, governments and
others in the areas of micronance,
livelihoods, institutional development,
public policy and vocational training
across Africa, Asia and the Pacic.
Margaret Wright, TreasurerB.Com., FCA
Margaret is a strategic advisor with
focus on IT and business. She has run
consulting for KPMG and was a CIO
within Macquarie Bank. She currently
works for Helmsman, an IT consulting
company, and is on the board of the
National Breast Cancer Foundation.
Pamela Jonas
B.A. (Hons), M.A. (Public Policy &Management)
Pam has over twenty years of
experience in education, training, and
employment policy. Her expertise
is from industry, education and
community sectors and applied in a
variety of leadership, management,
research, and public policy positions.
Pam has spent the last year in France.
Gordon CairnsM.A. (Hons)Gordon has extensive experience
as a senior executive, most recently
as CEO of Lion Nathan Ltd. He now
serves as a non-executive director of
Westpac, Origin Energy, and Quick
Service Restaurants, is Chairman
of Origin Foundation, and acts as
a senior advisor to McKinsey &
Company and Greenhill Caliburn.
William PigottB.S., M.B.Bill is a retired international civil
servant, having worked for over 20
years with WHO as an educationalist
and international health practitioner
in Nepal and Cambodia. He is now
involved in community work, especially
Landcare, at many different levels.
James MacNeil, AlternateEd. D.
James is Vice President of WEIs
Asia Division. He has 20 years
experience in education and
livelihoods development. With WEI
since 1999, he has had oversight of
school governance and sustainable
agricultural programs in Indonesia and
India. James lives in Boston.
Board o Directors
Kate JordanB.Com, LL.B, LL.M
Kate is a corporate lawyer withextensive corporate advisory,
commercial and M&A experience.
She is Sydney Managing Partner of
Clayton Utz, a leading law rm.
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Legal statusWorld Education Australia (WEAL) is a private, voluntary,
not-for-prot company limited by guarantee. WEAL has
charitable status as a registered Public Benevolent
Institution (PBI) and has the authority to fundraise in all
States of Australia.
World Education Australia OverseasRelie FundWEAL is the Trustee of controlled entity World Education
Australia Overseas Relief Fund (WEAORF), which holds
Deductible Gift Recipient status from the Australian Tax
Ofce. The objective of WEAORF is to support economic
and social development programs to improve the lives of
the poor in the Asia Pacic region.
World Education Inc.WEAL shares its name and philosophy with its Founding
Member, World Education Inc (WEI), a not for prot,
secular, voluntary organisation based in Boston, USA.
WEI was founded in 1951 and provides training and
technical assistance through non-formal education in
over 60 countries. WEI and World Education Australia
operate independently of each other, and all dealings are
conducted on arms length terms.
ACFID Code o ConductWEAL strives to maintain the highest possible standards
of governance. WEAL supports and is committed to
adherence to the ACFID Code of Conduct as a minimum
standard for integrity, governance and reporting. All
directors, paid staff and volunteers are expected to adhere
to and uphold the Code of Conduct.
Board o DirectorsThe Board has seven members. Meetings attended during
this period: Neild McIntosh, Guy Winship, Margaret Wright,
Gordon Cairns, and James MacNeil attended four; Bill
Pigott and Pam Jonas attended two; and David Kahler
attended one.
Board meetingsThe Board met four times in the nancial year: inSeptember and December 2011, and March and
June 2012.
Board committeesThe Board has three sub-committees: the Audit Committee,
the Nominating Committee, and the Remuneration
Committee. These Committees meet as needed.
Governance
A proud shop owner in Cambodia.
Llanie, a village agent in the Philippines.
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IndependentAudit Report
Auditors IndependenceDeclaration
Concise Financial ReportFor year ended 30 June 2012
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Consolidated Statement o Financial PositionConsolidated Group
2012
$
Consolidated Group
2011
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 1,319,030 1,465,872
Trade and other receivables 34,455 21,830
Other current assets 72,827 24,347
Other nancial assets (loans) 138,114 116,135
TOTAL CURRENT ASSETS 1,564,426 1,628,184
NON-CURRENT ASSETS
Property, plant and equipment 11,816 11,641
Intangibles 41,758 80,412
TOTAL NON-CURRENT ASSETS 53,574 92,053
TOTAL ASSETS 1,618,000 1,720,237
LIABILITIESCURRENT LIABILITIES
Trade and other payables 101,112 157,170
Special purpose funding 817,639 1,210,639
Other nancial liabilities (loans) 304,305 139,416
Provisions 40,275 31,603
TOTAL CURRENT LIABILITIES 1,263,331 1,538,828
NON-CURRENT LIABILITIES
Provisions 47,073 16,465
TOTAL NON-CURRENT LIABILITIES 47,073 16,465
TOTAL LIABILITIES 1,310,404 1,555,293
NET ASSETS 307,596 164,944
EQUITYContributed equity - -
Reserve for designated purpose 306,895 227,569
Retained earnings 701 (62,625)
TOTAL EQUITY 307,596 164,944
Revenue Expenditure
Donations &Gifts 16%
AusAID
Grants 16%
Australian
Grants 32%
Overseas
Grants 20%
Investment andother income
17%
International
Programs
69%
Accountabi lity and
Administration 8%
Fundraising 6%
Community
Education 2%
Domestic Programs 15%
World Education Australia LimitedABN 39 106 279 225. The full audited nancial statements are obtainable atwww.worlded.org.au
Ratios based on the Consolidated
Statement of Comprehensive Income.
World Education Australia had no
transactions and therefore zerobalances in the following categories:
Current Assets inventories, assets
held for sale; Non Current Assets trade
and other receivables, other nancial
assets, investment property, other
non current assets; Current Liabilities
borrowings, current tax liabilities, other;
Non Current Liabilities borrowings,
other nancial liabilities, other.
Concise Financial ReportFor year ended 30 June 2012
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Consolidated Statement o Comprehensive IncomeConsolidated
Group
2012
$
Consolidated
Group
2011
$
REVENUE
Donations & gifts:
Monetary 286,749 220,528
Non-monetary 244,424 99,096
Grants:
AusAID 289,858 272,201
Other Australian 584,277 287,988
Other overseas 366,507 304,906
Investment income 57,670 14,676
Other income 264,363 126,723
TOTAL REVENUE 2,093,848 1,326,118
EXPENDITURE
International Aid and Development Programs Expenditure
International Programs
Funds to international programs 752,620 583,443
Program support costs 429,630 312,736
Community education 38,405 41,949
Fundraising costs
Public 87,928 103,910
Government, multilateral and private 11,047 23,339
Accountabi lity and administration 129,600 117,631
Non-monetary expenditure 244,424 99,096
Total International Aid and Development Programs Expenditure 1,693,654 1,282,104
Domestic Programs Expenditure 257,542 19,642
TOTAL EXPENDITURE 1,951,196 1,301,746
Excess of revenue over expenses 142,652 24,372
Income tax expense - -
Surplus for the year 142,652 24,372
OTHER COMPREHENSIVE INCOME - -
Total Comprehensive Income 142,652 24,372
Consolidated Statement o Cash FlowsConsolidated
Group
2012
$
Consolidated
Group
2011
$CASH FLOWS FROM OPERATING ACTIVITIES
Donations and grants 1,134,391 2,107,020Customers 206,951 259,439
Suppliers and employees (1,665,867) (1,069,763)
Interest 57,670 14,676
Net cash (used in) / provided by operating activities (266,855) 1,311,372
CASH FLOWS FROM INVESTING ACTIVITIESFurniture and equipment (4,959) (2,587)
Good Return software and website (22,395) (38,615)
Security deposit (597) (549)
Net cash (used in) / provided by investing activities (27,951) (41,751)
CASH FLOWS FROM FINANCING ACTIVITIESGood Return - net loans received from the public 164,889 107,632
Good Return - net loans paid to micronance institutions (21,979) (93,882)
Repayment of WEI loan 5,595 (69,936)
Repayment of equipment lease (541) (1,081)Net cash provided by / (used in) nancing activities 147,964 (57,267)
Net (decrease) / increase in cash held (146,842) 1,212,354Cash at beginning of nancial year 1,465,872 253,518
Cash at end of nancial year 1,319,030 1,465,872
World Education Australia had
no transactions and therefore
zero balances in the followingcategories: Bequests and legacies,
revenue from international political
or religious adherence promotion
programs, expenditure for
international political or religious
adherence promotion programs.
World Education Australia LimitedABN 39 106 279 225. The full audited nancial statements are obtainable atwww.worlded.org.au
Concise Financial ReportFor year ended 30 June 2012
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Cash Movements or Designated PurposesCash available at
beginning of year
$
Cash raised
during the year
$
Interest
$
Cash disbursed
during the year
$
Cash available at
the end of year
$
DESIGNATED PURPOSESGood Return development:
AusAID Innovations Fund 150,000 - (150,000) -
AusAID annual allocation 9,456 150,000 (139,858) 19,598
Skills For Life 99,597 335,000 (342,039) 92,558
Infuse 195,523 170,985 (366,508) -
ConnectED 6,063 293,537 (246,205) 53,395
Education & Micronance Expansion 750,000 19,500 (213,784) 555,716
Small farmers livelihoods - 83,826 - 83,826
Other - 41,000 (28,454) 12,546
1,210,639 1,093,848 (1,486,848) 817,639
Good Return - Net loans transactions 95,867 285,500 (4,716) 376,651
Total for designated purposes 1,306,506 1,379,348 (1,491,564) 1,194,290
Total for other non-designated purposes 159,366 126,883 57,670 (219,179) 124,740
1,465,872 1,506,231 57,670 (1,710,743) 1,319,030
Amounts indicated as cash raised and cash disbursed during the year for Good Return - Net loans transactions represents net cash
balance movements with the programs public lenders.
Consolidated Statement o Changes in Equity
Retained
earnings
$
Reserve for
designated
purpose
$
Total
$
Consolidated Group
Balance at 1 July 2010 107,577 32,995 140,572
Items of other comprehensive income - - -
Excess of revenue over expenses 24,372 - 24,372
Amounts transferred (to) / from reserve (194,574) 194,574 -
Balance at 30 June 2011 (62,625) 227,569 164,944
Items of other comprehensive income - - -
Excess of revenue over expenses 142,652 - 142,652
Amounts transferred (to) / from reserve (79,326) 79,326 -
Balance at 30 June 2012 701 306,895 307,596
The excess of revenue over expenses from operations of the controlled entity, World Education Australia Overseas Relief Fund, istransferred to a Reserve for Designated Purposes. This recognises that the net assets represented by this reserve cannot be used
for any purpose other than providing relief to persons in a developing country certied as such by the Department of Foreign Affairs
and Trade; or, on winding up, must be transferred to some other fund qualifying under the Overseas Gift Fund Provisions of the
Income Tax Assessment Act 1997.
World Education Australia LimitedABN 39 106 279 225. The full audited nancial statements are obtainable atwww.worlded.org.au
Concise Financial ReportFor year ended 30 June 2012
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Kaushila Adhikaris StoryI visited the home of Kaushila in Durgapur, Jhapa, not toofar from the Nepalese-Indian border in the south east of thecountry. Let me preface this story by saying that Kaushila isone of the funniest old ladies I have ever met! She had us institches as she told us the story of her life.
Kaushila is 63 years old. She is illiterate and comes from alarge family of 8 sisters and 2 brothers. Growing up it wasonly her 2 brothers that were provided education. She openlyshares that she was married at the age of 7 and jokes that she
was so young she cant even remember her wedding day! Butthe issue of gender is very real in Nepal. She has 1 son and2 daughters of her own. Kaushila made an effort to give herown daughters a better start in life, and is proud that both ofthem were able to attend school thanks to her business (onereached 7th grade and the other 9th grade).
Before she had access to micronance, Kaushila used toborrow money from money lenders in her village theinterest rate she paid ranged from 60% to 120% per annum.She says that one of the biggest benets of being a client ofNirdhan Bank, our partner in Nepal, is that she can borrowat a reasonable interest rate (20%). She also gets access
to training opportunities, like the Good Return-sponsoredlivelihoods training program.
She smiles as she tells me that for the rst time in her life shelearnt how to write her own name during our training program.She also learnt how to grow her business and strengthen herown business management skills.
I told Kaushila that her story would be shared with people inAustralia so they can better understand the challenges anddreams of Nepalese women. She grins and says, I have heardsomething of Australia and when I make enough money frommy business I will be going there to visit!
Kaushila makes a meagre living from the milk of her 3 cows(which were bought with a micronance loan) and selling themilk within the community. Only one of her cows is producingmilk at the moment so she can sell 2 litres of milk a day for a
total of 64 Nepalese Rupees (about AUD$0.70). Most of us pay4 times that amount for a cup of coffee each day.
Her family manage their living requirements from day to dayby relying on her sons salary (he is a truck driver) and fromthe food they grow on a small plot of land they lease.
At the age of 63 Kaushila feels she should be afforded thesmall luxury of being able to visit some of Nepals religioustemples. Her income and the needs of her family keep herfrom doing so.
I nish my interview by asking her and her husband for aphoto. She smiles while I get the shot in focus and says to me,
even if I cannot visit Australia, my photo will go there!
Kaushila reminded me today of something very important asense of privilege for life and a good sense of humour makesyou a wealthy person. And clearly age is no barrier!
James Le Compte, Micronance Program Manager
Kaushila with three of her grandchildren, who
are also in school thanks to her business!
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SupportersWorld Education Australia would like to acknowledge and
thank our partners and supporters for their commitment
and contribution. These organisations and people have
been essential to the impact and sustainability of our work
and we thank everyone for their time, funding, and talent.
Australian SupportersAusAID, Australian Council for International Development
(ACFID), Cosway Australia, Customer Community, Custom
House, Downstream Marketing, Fern Software Australia,
Harvest the Net, Macquarie University, Nuffnang, PayPal,
Porter Novelli, Travel and Associates Press & James,
WiTH Collective, XE.com.
Corporate PartnersAccenture Australia Foundation, Accenture, Clayton Utz,
Deloitte Foundation, Deloitte, Origin Foundation, OriginEnergy, and Westpac Group.
RegionalINFUSE / UNCDF, Irish Aid, Micronance Pasika
Network, Solidaridad, Stichting DOEN Foundation, World
Education Inc.
Volunteers, Friends, and DonorsAnthony Back, Anne Bissaker, Australian Communities
Fund / David Morawetz Social Justice Fund, Bradley
Abbott, Claire Lagunzad, Damian Fuller, Fionnuala Maye,
Jose Hiquiana, Lesley Hume, Mark Dawson, Monique
Alfris, Peter Van Roekel, Rachel Mulholland, Rina
Budiawan, Stephanie Sheehan, Tahnee Card Company,
Ted Harnett, the Greatorex Foundation, the McIntosh
Family, the Cairns Family, Valentina Cerutti, our online
editors, and all our generous donors.
AmbassadorsAnn Devine, Heath Francis, Shrav Malkani, Andre
Karemacher, and Paul Mitchell.
ManagementIn 2012 World Education Australia had a team of full time
and volunteer personnel in Australia and overseas. The
management team at June 2012 comprised:
Guy Winship CEO
Diane Bowles Director - Marketing and
Fundraising
Shane Nichols Program Director
Mehul Patel Financial Controller
Nicole Stanmore Operations Director
Bob Cook Director - ITNorm Sturrock Risk Advisor
Credits
Annual Report
Joni Freeman, Norm Sturrock, Di Bowles, Guy Winship,
Shane Nichols, Celine Bachelet, Colette McInerney, James
Le Compte, Sandra Carvajal.
Photos in Annual Report
Celine Bachelet, Rose Ramilo, Colette McInerney, James
Le Compte, Shane Nichols, Melodie Buendida, Bradley
Abbott, Monique Alfris, Anthony Back, YWCA NSW.
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Financial literacy students return home after a
class in the Philippines.
Clients of SPBD in Tonga march intheir annual parade celebrating the
Woman of the Year Award.
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www.worlded.org.auwww.goodreturn.org
PO Box 479St Leonards NSW 1590
Address:Suite 1, Level 7
1 Chandos StreetSt Leonards NSW 2065
E [email protected] +61 2 9114 8111F +61 2 9419 6933
World Education Australiabuilding skills, changing lives
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