CORDAID ANNUAL REPORT 2015

Transcription

CORDAID NAAM BU
CORDAID
ANNUAL REPORT 2015
GLOBAL GOALS, LOCAL SOLUTIONS
CORDAID 2015 ANNUAL REPORT
CONTENTS
message from the ceo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
about cordaid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
what we did in 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Humanitarian and emergency relief. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Healthcare. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Security & Justice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Results Based Finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Economic opportunities and work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Building resilience: sustainable development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Lobby & advocacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Cordaid in the Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
how we work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
What our clients want. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Flourishing Community Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Working with partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Communication, raising awareness & engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
How we manage setbacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Learning from complaints. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
how we did in 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Organizational aims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Fundraising & spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
strategy for continuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
our people. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
supervisory board report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
how we are governed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
global reporting initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
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message from the ceo
MESSAGE FROM THE CEO
It has been quite a year. Conflict has continued in countries like Syria and we have
seen the eruption of violence in Burundi and the Central African Republic. In spite of
a cease-fire, South Sudan remains volatile. And in northern Cameroon insurgents
continue to terrorize local communities. The Netherlands-based Cordaid is working
in all these and many other fragile and conflict-affected states, bringing humanitarian relief and essential services like healthcare and education to millions of people.
At the end of 2015, the Millennium Development Goals gave way to the 17 Sustainable
Development Goals (SDG) or Global Goals that aim at a more inclusive approach to
ending poverty, promoting peace and security and tackling climate change. The
United Nations has put its full support behind these Global Goals. Last summer,
agreements were reached in Addis Ababa on financing mechanisms for development
with explicit provisions for fragile and conflict-affected situations and states (FCAS).
With a strong endorsement from Pope Francis in the Laudato si’ Encyclical, climate is
now also recognized as a major challenge and, in addition to the most recent agreements in Paris, has now been included in the Global Goals. Cordaid will be partnering
with the Dutch Ministry of Foreign Affairs on climate-related issues from 2016.
G4-1
It has been quite a year for Cordaid as well. A new development cooperation landscape, including the Global Goals and the ending of guaranteed government funding,
stimulated a strong response from us. We have created a strategy based even more on
what we do best – working with local people in fragile and conflict-affected states and
situations. We have right-sized the organization into a focused and flexible implementing partner for international and governmental donors, making the transition
from grant-giver to grant-seeker, and retained the loyalty of close to 300,000 individual donors in the Netherlands. We feel recognized as the professional implementing
power that gets the job done. All our private, governmental and institutional donors
understand the unique proposition we bring to the table – our ability to combine
humanitarian and emergency relief with real, long-lasting development cooperation
on security, healthcare, education and the economic growth essential to creating jobs.
Organizations like Cordaid are often the only support present in fragile and conflictaffected areas. So we will continue to provide help and opportunities for people in the
most vulnerable situations and communities. Our goals remain to continue and scale
up our work by seeking and finding the funding necessary to help local people resolve
local challenges and build their own flourishing communities.
As we strengthened our focus on fragile and conflict-affected states during 2015,
we tied our programs and projects to the Global Goals. The organization has emerged
from this process more motivated than ever as we make a difference to the lives of
millions of people. Our goals are global, our solutions are local.
However, this greater focus has also meant withdrawal from a significant number
of programs and countries although we remain present in many of those countries
through our investment funds. Sadly, we have had to say goodbye to a large number
of colleagues who have worked tirelessly to eradicate poverty and put in place such
basics as healthcare and education. Our wholehearted thanks go to all of them.
There was good news from Sierra Leone following the terrible Ebola epidemic
during which Cordaid served as the action president on behalf of the Netherlands
Cooperating Aid Organizations (SHO). Although the epidemic is officially over,
Cordaid is still there, working on recovery projects to help with food security and
getting healthcare and education back on track (see page 10). As noted, the news is
less good from Burundi (see page 27) and the Central African Republic where new
violence meant hundreds lost their lives and we were forced to evacuate our office in
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3
the capital, Bangui. We are now back at work, building hopefully on the Pope’s visit
and attempts at reconciliation. In December in Ethiopia, I saw for myself the effects of
drought. Millions of people are trying to manage on the 20 liters of water per family
per day that with our support, partner APDA is able to truck in. More must be done
now – these people cannot wait.
The Syrian humanitarian disaster is driving millions of refugees to Europe and has
also brought home very clearly that (the results of) conflict cannot always be kept far
away from our own backyards. On the Greek-Macedonian border, our Caritas partners
are distributing basic essentials, such as soap, tarpaulins and other emergency goods,
and including diapers for the babies. Following my visit that was given extensive
media coverage, we received numerous calls and emails from people asking how they
could help. Their contributions also enabled us to increase and broaden the support
we are giving to refugees (and host communities) in Northern Iraq, Lebanon, Turkey,
Jordan and in Syria itself. Once again, all our close to 300,000 Dutch individual
donors came through for people in need. We are very grateful to them.
With our Caritas partners, we also provided much-needed help in Nepal following
two devastating earthquakes. Our focus is on education and sanitation in some of
Nepal’s most remote rural areas. Besides our humanitarian programs that provided
relief to over 1.2 million people, during 2015 Cordaid was involved in more than 1,200
projects in 46 countries. I would like to thank all of our partners for their professionalism and commitment because together we have achieved some incredible results.
Another 50,000 children in the Central African Republic will benefit from education
through our Results Based Finance program, joining close to 200,000 children in
other countries in Africa. We have made basic healthcare services accessible to over
six million people in seven African countries. The next step is to add other life-saving
components, such as the cervical cancer screening that will help eradicate this killer
in Ethiopia. Throughout the annual report we offer a lot of information on what our
programs can achieve. Our pioneering Open Data available to all via the website
monitors each individual project. I hope all this information helps readers understand what we do. There are certainly challenges ahead. We are ready for them.
Simone Filippini
Chief Executive Officer
The annual report and financial statements were drafted by the Board of Directors
and adopted by the Supervisory Board on May 25, 2016.
G4-32
Over 2015, we are reporting according to the G4 ‘in accordance “core”’ standard.
G4
Throughout the annual report, you will find the G4 label
that shows where we
have included G4 compliant information. At the end of this annual report (page 83),
you will also find an overview of the G4 Index that lists all aspects covered and our
compliance with them.
In line with G4 requirements, we state that: ‘This report contains Standard
Disclosures from the GRI Sustainability Reporting Guidelines.’
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About Cordaid
ABOUT CORDAID
G41/3
Cordaid, the Netherlands-based Catholic Organization for
Relief and Development Aid, has been providing emergency
relief and fighting poverty and exclusion in the world’s most
fragile and conflict-affected situations for more than a
century. All our actions are rooted in and inspired by Catholic
social teachings: human dignity, solidarity, subsidiarity and
care of the common good. Based on these points of departure,
we have added social and economic justice and the promotion
of peace to help us achieve in our mission: building flourishing communities.
‘The urgent challenge to protect our common home includes a concern
to bring the whole human family together to seek a sustainable and
integral development, for we know that things can change… Young
people demand change. They wonder how anyone can claim to be
building a better future without thinking of the environmental crisis
and the sufferings of the excluded. I urgently appeal, then, for a new
dialogue about how we are shaping the future of our planet…’
Pope Francis, Laudato si’ Encyclical, May 2015.
What we do
Through our work we invest in the capacities and talents of
people who are marginalized, excluded and often discriminated against. We believe that peace, security, social and
economic development go hand-in-hand and reinforce each
other. We are usually active and present in regions that have
been shattered by (geopolitical) conflict or natural disaster.
Humanitarian aid (shelter, food and clean water) is therefore
one of Cordaid’s long-standing areas of expertise. There are
three cornerstones for our involvement in systemic change
and institution building in fragile and conflict-affected areas:
▪▪ providing a stable and secure environment (security and
justice);
▪▪ restoring basic public services (health, education,
government services); and
▪▪ creating sustainable economic opportunities.
We work with local civil society organizations to create and
implement programs based on equal rights and opportunities,
both legal and in practice. Our programs are designed to give
access to services and economic opportunities, especially for
women and young people. Cordaid is active across the globe
and we do a lot of work on poverty and exclusion in the
Netherlands, our home base. Through our focus on fragile
and conflict-affected countries combined with our work in
the Netherlands, we are a unique organization.
How we work
Today, one quarter of the world’s population, or 1.2 billion
people (World Bank), lives in societies affected by fragility,
conflict and violence. We engage with local people in these
societies so that we can create programs based on what is
important for them. Then we design and implement programs
to have a significant and long-lasting effect on families,
communities and societies. Cordaid works closely with client
beneficiaries, funding and implementing partners to increase
the resilience and self-reliance of local communities. As a
founding member of the International Catholic organization
for social justice (CIDSE) and Caritas Internationalis, we can
also count on the support of local parishes in the poorest places
on earth. In addition to providing emergency and humanitarian relief, in 2015 we focused on healthcare, education, security
and justice, women’s leadership, food security, investments,
entrepreneurship, extractives and projects in the Netherlands.
Raising awareness and engagement
For more than 100 years, we have been able to rely on the
continuing and long-lasting support of the Dutch people.
Communication, raising awareness and engagement among
our support base is key here. We are very active in developing
information tools, providing the latest news and communica
ting via social media. Accurate, up-to-date information for
our support base on programs and projects is increasingly
published online using the standard developed by the
International Aid Transparency Initiative (IATI). In 2015, close
to 300,000 Dutch people supported our work. We raise funds
from government bodies, such as the Dutch Ministry of Foreign
Affairs, the World Bank, the Global Fund, the United Nations
and the European Union. Other institutional donors also
finance our programs.
CORDAID IN NUMBERS - 2015
>1,200
€145.4 MLN
>1.2 MLN
projects funded
total amount spent directly on programs
people received humanitarian relief
46
6 MLN
countries
people with access to basic healthcare and
>1,000
>220,000
number of partners
with access to education through our programs
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What we did in 2015
WHAT WE DID IN 2015
G4-4
A flourishing community offers its members access to opportunities so that they can realize their potential to participate in
social, economic, cultural and spiritual life. There is peace and
a social contract between citizens and the state. In fragile and
conflict-affected situations (FACS), some or even all of these
factors are absent. In other words, the social contract between
citizens and the state is broken. Cordaid’s mission is to contribute to the structural social change and transformation needed
to build and/or fix that social contract. That is why we have
built decades of experience in sectors that are indispensable
for flourishing communities: Healthcare, Security & Justice,
Child & Education, Food Security, Urban Matters, Women’s
Leadership, Extractives, Investment in entrepreneurship and,
importantly, Disaster Risk Reduction.
In practical terms, this means we are there when disaster,
either man-made or natural, strikes, providing humanitarian
relief, for example in countries that are managing the inflows
of refugees from Syria and other conflict areas. This requires
G4-8
specific and immediate responses. However, we are also there
for the longer haul once the initial emergency is over. Cordaid’s
programs are providing long-term support in recovery efforts,
known as ‘build back better’ and ‘resilient recovery’, in countries
like The Philippines, which is still recovering from typhoon
Haiyan, and Nepal following two devastating earthquakes. We
lay foundations for recovery by supporting healthcare, education
and security. Economies need stimulation so we are there to
help entrepreneurs with finance so that they can help provide
jobs. Strong governance is essential to re-establish trust
between citizens and the state. And we work on building
resilience so that the underlying infrastructure is strong
enough to prepare for, manage and overcome future setbacks.
HUMANITARIAN AND EMERGENCY RELIEF IN 2015
>1.2 MLN
45,000
19,000
people benefitted from Cordaid
humanitarian aid/disaster risk reduction
through:
hot meals per week in besieged Aleppo,
Syria
families provided with drinking water
delivered every day in drought-striken
Afar State, Ethiopia
>700
14,000
projects in
food and emergency packages per week
to refugees on Greek/Macedonia border
22
15,000
countries
victims of the Nepal earthquake provided
with temporary homes, schools and
health centers, including clean water and
sanitation
700
partners
300
typhoon-proof homes and community
buildings completed in Coron,
the Philippines
WHERE WE WORK
GREECE
AFGHANISTAN
INDIA
NEPAL
BANGLADESH
SYRIA
LEBANON
HONDURAS
GUATEMALA
HAITI
CENTRAL
AFRICAN REP.
SOUTH
SUDAN
PHILIPPINES
ETHIOPIA
KENYA
UGANDA
EL SALVADOR
DEM. REP. OF
THE CONGO
MALAWI
INDONESIA
ZAMBIA
Total spent in 2015:
>€42 MLN
(2014: >€26.3 mln)
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What we did in 2015
Syria: We are supporting refugees from the Syrian conflict in
Greece, Macedonia, Serbia and Austria by providing food,
sleeping bags, rain protection and personal hygiene basics,
such as soap and diapers. Just as important is the psychological
support we are offering to victims of trauma. As experts in
conflict-affected regions, unsurprisingly, Cordaid is also
working with Caritas on the reception of refugees from the
conflict in host communities in Northern Iraq, Lebanon, Jordan
and Turkey. We are also just as engaged in Syria itself which is
‘A s large gatherings could easily become a target for armed groups,
meals are delivered through a network of local partners…’
a field-kitchen worker in Aleppo, Syria.
now entering its sixth year of civil war and having suffered
through a hunger winter, especially in besieged cities. To
alleviate suffering in the governorate of Aleppo, one the most
conflict-ridden zones of Syria, Cordaid-supported kitchen
teams provide 6,300 hot meals a day. The focus is on the most
vulnerable: people who are displaced, families headed by
widows, the disabled and households with many children.
‘Before, 5% of students brought water from home; the rest of them did
not drink at all during the day. Now, 2,461 students and 185 teachers
have access to clean drinking water. Fantastic!’
Shiva Rama Chalise, Nikkanta Higer secondary school, Nepal.
Nepal: Within days of the earthquake, Cordaid had made
emergency humanitarian funds available to partners Caritas
Nepal and Caritas India. Our focus was on education and
providing clean water. The earthquake damaged 1,500 schools.
To continue classes, temporary buildings had been erected
without toilets or water supply. Cordaid Mensen in Nood has
ensured more than 20 schools have been equipped with clean
drinking water and lavatory facilities. The Caritas Nepal team
headed into rural areas, bringing emergency shelter to families
in some of the more remote villages.
‘When the earthquake struck the roof of our house collapsed. I was
with my four-year old son. We were trapped in the rubble and waited
until the shocks subsided when the neighbors came to rescue us. For the
first few days after the quake my son remained terrified – he could not
eat or sleep… We were sleeping under a small piece of plastic. I think
the tarpaulins are God Sent – I hope there are enough for everyone…’
Surmala Cholagai of Panchkal, Nepal.
Resilient recovery
Philippines: Following typhoon Haiyan in November 2013, a
Cordaid team went to Coron, in the eastern province of
Palawan. Working with local communities we started what we
call a ‘resilient recovery’ program. The village now has 201
typhoon-proof houses that were co-designed with villagers and
built by them. Using the same approach, community halls, rain
retention systems and dozens of other community structures
have been erected. People who used to be controlled by middle-
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men and companies have been trained in management and
bookkeeping and have set up their own enterprises, determining their own prices and creating new market opportunities. In
this traditionally fishing-based region, fishermen and women
have successfully taken up vegetable farming, improving their
diets as well as their income. For more details on this project,
please visit Open Data, www.cordaid.org/en/projects/resilientcommunities-in-coron/update/13774/
‘We turned the humanitarian system upside down: locals were in
charge, we only facilitated. And they bounced back just like bamboo,
after utter devastation…’
James Morgan of Cordaid’s Haiyan Resilient Recovery Program,
The Philippines.
Disaster dilemmas
Climate change, intensified by El Nino, has caused the worst
drought in Ethiopia in 30 years. The last real rain fell two years
back. Since then, drought has destroyed harvests and forced
many of the local people to migrate. Those that remain are
completely dependent on water aid. CEO Simone Filippini visited
Cordaid partner APDA that organizes the water supply in the
Kori district of Afar State. Every four days, a water truck visits a
number of communities, bringing 150,000 liters of water that
are then desposited in a reservoir. A woman guard watches over
the distribution: every family receives 20 liters in a jerry can
each day. The Ethiopian government is doing what it can to
prevent the oncoming catastrophe. But to turn the tide of
widespread famine, similar to that of the 1980s, the international community will rapidly need to lend a hand. It requires
a major international shift on climate change and extensive
support on the ground in Ethiopia. Half measures are not enough.
‘Drought is a slow onset disaster and usually attracts attention too
late. Humanitarian response often also follows late. That’s why it is
necessary to continue to try and link relief with development and
recovery and to prepare for contingency activities. And that’s why ten
years ago Cordaid and partner organizations developed the Drought
Cycle Management approach, now expanded into the Community
Managed Disaster Risk Reduction approach. This allows communities
to take ownership of project activities that will reduce their vulnerability to threats like a drought and that will strengthen their resilience…’
Ton Haverkort, Country Director, Cordaid Ethiopia.
Risk Reduction
The Luvungi area of the Democratic Republic of Congo (DRC)
has the opposite problem to Ethiopia: flooding. With local
partners, including Caritas Uvira, Cordaid is developing a
Community Managed Disaster Risk Reduction program in
eastern Congo to tackle recurrent flooding. Working together,
local people – many of them long-term internally displaced
– have dug 1,700 meters of rainwater runoff canals. Small trees
have been planted close to houses and on the surrounding hills
to prevent further soil erosion, the main cause of flooding in
the area. Local partners will provide local people with information and support on preventing erosion in the long-term to
ensure sustainability of the new flood defenses.
7
What we did in 2015
Sharing track-record
Community Managed Disaster Risk Reduction (CMDRR) is a
process of bringing people together within the same community, or between neighboring communities. This enables them to
collectively address a common disaster risk and to develop risk
reduction measures together. The Cordaid disaster risk reduction program in South Sudan is aimed at building disaster
resilient communities, especially on issues such as inter/
intra-community conflict, drought and flood risk reduction,
depending on context. In South Sudan, where we have been
working for two decades, we currently have projects in the
G4-8
Upper Nile, Unity, Western Bahr el Ghazal, Western Equatoria,
Central Equatoria and Eastern Equatoria States and in the
Abyei Area. In 2015, we put all this expertise and experience
together in: Our Peace, Our Future: experiences from Community
Managed Disaster Risk Reduction approaches in South Sudan. The book
can be freely downloaded from our website: www.cordaid.org/
media/publications/Cordaid_CMDRR_in_SSudan.pdf
These are only some of our more than 700 humanitarian/
disaster risk reduction programs and projects. A full overview
can be found on Open Data.
HEALTHCARE IN 2015
6 MLN
165
30,000
people* have access to basic healthcare
through Cordaid’s RBF programs
partners
women now receiving SRH services in
Zimbabwe and a
2 MLN
people in Africa’s Great Lakes Region
receive Sexual and Reproductive Health
Services from
450
health centers
600%
increase in safe deliveries in Burundi
following the introduction of RBF
15%
increase or
30 to 50%
18,000
increase in the number of people with
access to healthcare in Central African
Republic
more women giving birth either in
hospital or with a trained birth attendant
226
projects
*calculation based on populations in countries where Cordaid has introduced RBF
WHERE WE WORK
AFGHANISTAN
BANGLADESH
SUDAN
SOUTH
CENTRAL
SUDAN
AFRICAN REP.
HAITI
SIERRA LEONE
GHANA
CAMEROON
CONGO
DEM. REP. OF
THE CONGO
ZAMBIA
ETHIOPIA
UGANDA
RWANDA
BURUNDI
TANZANIA
MALAWI
ZIMBABWE
>€57 MLN
(2014: €68.6 mln)
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What we did in 2015
Universal healthcare (UHC) is a primary goal for Cordaid.
The challenge is how it can be achieved in fragile and conflictaffected regions. In late 2014 and based on our experience in
seven countries where Results Based Finance (RBF) has been
adopted as national health policy, we published an extensive
report that identifies ways and means. It can be downloaded
via: www.cordaid.org/media/publications/Cordaid_Universal_
health_coverage_in_fragile_states__Research_report_2014.pdf.
One thing is clear: there is no ‘one size fits all’. Each country
has to start with its existing health systems and make assessments of what works and what does not, identify improvements and upscale progress. RBF is an ideal tool to support this
development (see sidebar), as we have demonstrated in a
number of countries.
RESULTS BASED FINANCING
Results Based Financing (RBF) is designed to improve access
and quality of healthcare and other services, such as education and security, for the poorest and most vulnerable people,
the majority of whom are to be found in fragile and conflict-affected areas. Cordaid pioneered this approach whose
point of departure is a direct link between funding and
results. Contrary to more traditional approaches, where
funding goes into a general financing system, RBF service
providers receive payments only after their output and
outcomes have been verified. But RBF is more than just a
change in the way healthcare and other service providers are
paid - it is a reform strategy that is built on many years of
experience in strengthening initially healthcare and now
other systems. It introduces checks and balances, accounta
bility, motivates staff, promotes entrepreneurship and
involves private not-for-profit, private for profit and public
sector parties, as well as the communities themselves.
In fact, in most of our RBF programs, ‘customer satisfaction’
is a key quality indicator.
G4-8
footprint of cordaid rbf in africa
AFGHANISTAN
SIERRA LEONE
CENTRAL
AFRICAN
REPUBLIC
(CAR)
SOUTH
SUDAN
ETHIOPIA
CAMEROON
REPUBLIC OF CONGO (RC)
DEMOCRATIC REPUBLIC
OF CONGO (DRC)
UGANDA
RWANDA
BURUNDI
TANZANIA
MALAWI
ZIMBABWE
n
n
n
n
n
Cordaid
Health RBF
Next generation
In addition to RBF aimed as furthering UHC, we focus specifically on women’s and young people’s health often through
Sexual and Reproductive Health Services (SRHS) programs. For
example, our ‘Next Generation’ program on rights and services
provides an integrated approach for (young) women and men in
Burundi, Rwanda and DR Congo. One of the main goals is to
reduce the staggering number of unwanted teenage pregnancies, unsafe abortions and maternal deaths, which is a massive
problem for women and girls in all three countries. To date, the
program has reached two million people who are now receiving
improved quality care from 450 health institutes. As part of the
Next Generation program, we continue to work with Healthy
Entrepreneurs, a young, creative and innovative company fully
RBF in summary
▪▪ Innovative financing method
▪▪ Performance related financing
▪▪ Stimulates social entrepreneurship
▪▪ Controls performance
▪▪ Cost efficient
▪▪ Helps more people
Results from RBF
Cordaid first launched RBF in sub-Saharan Africa 15 years
ago and we now work on RBF for healthcare in more than 10
countries, introducing the concept most recently in Malawi.
Over that time, we have been able to achieve significant
positive impacts. These are only some of the highlights –
please see www.cordaid.org/en/topics/healthcare.
▪▪ In the two years since its introduction in the Central
African Republic, the number of people with access to
healthcare has increased 30 to 50%, depending on location,
while the cost has fallen 25-50%.
▪▪ In Rwanda, a World Bank impact study showed that the
number of safe deliveries in healthcare facilities was 23%
higher in RBF districts than in districts without RBF,
while child preventive care visits increased a staggering
132%. In addition, out of pocket expenditures decreased by
62%, indicating that RBF makes healthcare more accessible
for the poor.
▪▪ In the Democratic Republic of Congo, safe deliveries rose
97% in RBF facilities compared to non-RBF facilities while
in Burundi this number increased between 100 and 600%
in just 10 months of RBF implementation in three
provinces.
▪▪ A recent review of the Zimbabwean RBF program shows
clear upward trends in RBF districts for antenatal care and
institutional deliveries. The full program focuses on better
access to good quality medical care for mothers and
children at 1,500 hospitals and health clinics. The total
target group is 3.2 million people. Results so far show
30,000 women receiving Sexual and Reproductive Health
services and a 15% increase or 18,000 more women giving
birth either in hospital or with a trained birth attendant.
Education RBF
Health and Education RBF
Health, Education and Security RBF
MAY 2016 © CORDAID
2015
9
What we did in 2015
focused on business development with social impact. In
Rwanda, DC Congo and Burundi, Healthy Entrepreneurs and
Cordaid support young people to provide peer education on SRH
in market places and youth centers. The idea is to help young
people protect themselves against HIV/Aids and unwanted
pregnancy – Burundi has one of the highest teenage pregnancy
rates in the world.
6 MONTHS, 6 FACTS & FIGURES
“Results Based Financing in Sierra Leone”
During and now in the aftermath of the Ebola crisis,
Cordaid is working to reinforce health systems through
our RBF PLUS program, and with considerable success.
THE IMPACT OF INTRODUCING SHR SERVICES
Before
implementation
After first
18 months of
implementation
(2013-2014)
Results
Young people that
received sexuality
education
76,000
526,000
5x increase
Girls/young
women that have
used any SRH
service
309,000
436,000
40%
increase
‘Deaths related to Sexual and Reproductive Health & Rights out
number deaths from other causes in fragile settings. Over half of all
maternal, newborn and child deaths occur in around 50 countries
categorized as fragile states.’
Yvonne Stassen, Deputy Director for the Social Development at the
Dutch Ministry of Foreign Affairs speaking at first symposium on
‘Sexual and Reproductive Health and Rights in fragile environments:
turning challenges into opportunities’, co-sponsored by Cordaid in
December 2015.
441,180
260
Number of patients treated, tested,
vaccinated and referred.
Number of health professionals
trained to improve and strengthen
the health system.
x8
x2
Investment increase in health facilities
(€268,000 total Results Based Finance
payments).
Quality of ‘hygiene, infection control
and waste management’ doubled,
reaching an 84% satisfaction rate.
Confidence
Transparency
In the Ebola context, the population
did not trust the formal health system.
That led to low levels of utilization
of services. The RBF program reestablished confidence as the number of
general consultations increased 135%.
The RBF program improved data
quality and therefore transparency.
For example, the gap between ‘reported’
and ‘actual’ consultations fell from
30.5% in May to only 0.3% in September.
‘The RBF PLUS here in Bombali has helped us immensely to get
patients back to the clinics after the drop in services during Ebola,’
Christiana Daphne Decker, midwife and clinic supervisor,
Bombali, Sierre Leone.
Conflict care
Although there is a lot of positive progress to report in 2015,
we have also had to deal with a number of major issues. In the
extreme north of Cameroon, our healthcare services have been
seriously disrupted by the Boko Haram terror organization.
It is estimated that one quarter of all healthcare centers and
hospitals in the far north no longer functions because of the
ongoing violence. Using RBF, Cordaid and its local partner
organization, APROSEN, supports dozens of small healthcare
centers and a number of hospitals in this area. Until early 2015,
the numbers of assisted births, child inoculations and pre- and
postnatal consultations in these healthcare centers had been
increasing. More recently, they have been decreasing. Pregnant
women are afraid to come to the centers, preferring instead the
old-fashioned way of giving birth at home, often in unsafe and
unsanitary conditions. We have set aside additional funding
for APROSEN so that it can improve security of the healthcare
centers, although one has already been forced to close. Schools
and markets have also closed. Around 32,000 people have fled
to a refugee camp and thousands of others have sought refuge
elsewhere. Cordaid, APROSEN and local Caritas organizations
are looking for ways to contribute to providing shelter for the
victims of the violence, refugees and malnourished children.
People with HIV need extra care. The violence is making it
difficult to keep track of these people whose medication is of
life-or-death importance.
10
‘We put a lot of effort into gaining the trust of the communities,
keeping open lines of communication. Ideally we want it to be a logical
step for everyone to have their babies vaccinated. It should come
naturally. And sometimes we even have to gain the trust of rebel
groups. We have to show them we do not pose a threat when we
transport vaccines. Medical goods can be mistaken for other things,
like weapons. People in Afghanistan, for example, have been killed by
rebels during such transport’
Remco van der Veen, Director Programs, Cordaid.
Innovations update
During 2015, we began the pre-clinical trials of the ‘Baby
Viewer’, a low-cost, portable ultrasound aimed at radically
reducing maternal mortality. Usually, ultrasound technology
can cost anywhere between US$ 10,000 and US$ 100,000. Delft
Imaging Systems, that developed the Baby Viewer, has already
created a prototype and estimates that in the longer term it
could be manufactured for around US$ 500 by using recycled
plastic waste.
MAY 2016 © CORDAID
What we did in 2015
MALARIA AND CHOLERA EPIDEMICS
CONTROLLED IN SOUTH SUDAN
In spite of a peace agreement, the fighting in the vulnerable South Sudanese state of Upper Nile continues and
whole areas are cut off from access to food aid and medical
care. A cholera outbreak in mid-2015 put further pressure
on the limited healthcare services but is now under control
only to be followed by a malaria epidemic. At the height of
the crisis, November, over 700 people made their way to
our first-aid post, three times more than usual. We were
able to treat all comers and only one life was lost. Patients
were able to return home with durable mosquito nets;
the primary recipients were pregnant women and children
under five. A malaria testing program has now been put
in place.
Innovation: Bliss4Midwives
The risk of losing both mother and baby is higher in rural
northern Ghana than in the rest of the country. Health clinics
are few and far between; only 12% of mothers-to-be are able to
access pre and post-natal care. That is where Bliss4Midwives
comes in. With TNO Delft and Simavi in the Netherlands,
Cordaid has developed this easy-to-use device that includes
multiple test options in a single, portable machine. Using the
device, midwives in rural and remote areas will be able to run
tests and make diagnoses, enabling them to reach women who
cannot travel the great distances to regular clinics. We are
working with local partners. A total of 20 midwives and nurses
are scheduled for training in February 2016. A pilot group of
500 mothers-to-be will test Bliss4Midwives. The midwives will
keep the prototype devices after the pilot and it is estimated
that 500 to 1,000 mothers-to-be will benefit every year. A
business case has already been developed based on up-scaling
that will keep the device affordable and available elsewhere.
Innovation: Screening for cancer in Ethiopia
‘Cervical cancer is one of the most important causes of death for women
after maternal mortality in my country. If I can diagnose and treat all
women in time with simple and low cost methods, then I prevent so
many families with young children losing their mother, their wife,
their sister.’
Worldwide, one woman dies of cervical cancer ever two minutes.
Around 85% of women affected live in developing countries.
And in Ethiopia, breast and cervical cancer are the biggest and
usually silent killers. Unlike many cancers, cervical cancer can
be prevented quite easily. A woman can be screened and treated
at minimal cost and maximum impact on a single visit on a
single day. So that is what we are doing in six regions in
Ethiopia. The introduction of cancer screening represents a
next step up from basic healthcare. With the support of the
Bristol Myers Squibb Foundation, the Global Leaders’ Council
and Pink Ribbon Red Ribbon, Cordaid launched a program at
the start of 2015. The goal is to reduce mortality from breast
and cervical cancer by 25%.
This is how we are working:
IMPACT
SEE
vin
?
TREAT
egar
N2O
TELL
?
?
?
?
Results so far
▪▪ raised awareness in all six implementing sites;
▪▪ 28 nurses and midwives trained in screening and treatment;
▪▪ 240 women screened during the training program;
▪▪ 10 cryo devises procured.
Follow progress through Open Data: https://www.cordaid.org/
en/projects/ethiopia-female-cancer-initiative/112243/
Dr. Manenti, Gyneacologist in Wolisso hospital, Ethiopia.
MAY 2016 © CORDAID
11
G4-8
What we did in 2015
EDUCATION IN 2015
>192,000
166
>90,000
children in
RBF schools in CAR with
children
>400
60,000
>16,000
RBF schools
kids participating in our purposedesigned Respect Education program
for conflict regions
projects in
children in CAR achieving 15% increase
in pupil retention, a 12% increase in
girls’ attendance rate and more than 68%
improvement in successful exam results
4
196
countries now using RBF in education
primary and secondary schools in
DR Congo educating
79
34
7,000
disabled kids now have access to
education in Bangladesh
partners
WHERE WE WORK
INDIA
BANGLADESH
CENTRAL
AFRICAN REP.
PHILIPPINES
ETHIOPIA
CAMEROON
DEM. REP. OF
THE CONGO
UGANDA
BURUNDI
MALAWI
>€5.4 MLN
(2014: €7.3 mln)
One in ten of the world’s children of primary school age
(roughly 57 million children) are not in school (UN). It is
estimated that 781 million adults and 126 million young people
aged 15 to 24 worldwide lack basic reading and writing
skills. More than 60% of them are women. Education is believed
to be one of the best ways to help people escape poverty. The
more educated people are, the more likely they are to get a job,
to start their own business, to save, and to improve their
quality of life and that of their families. Educating girls is one
of the best ways to improve a society’s socioeconomic development. In many developing countries, education gives girls a
voice. Girls who receive an education are more likely to marry
later, to have their children at a later age, and enjoy better
health. Educated mothers are more likely to have their children
vaccinated and know how to prevent and treat potentially
life-threatening diseases, such as diarrhea and pneumonia.
Their children are also less likely to be malnourished. Above all:
children with educated mothers are more likely to be in school.
Positive outcomes
Cordaid has invested heavily in education programs in nine
countries, introducing RBF in four of them. The most recent
addition is the Central African Republic (CAR). In mid-2015, the
Minister for Education announced RBF would be incorporated
12
into government policy. Cordaid has already reached 166
schools through RBF across CAR, providing education to
around 60,000 children at an annual cost of USD 8.34 per child.
On average, primary schools with RBF contracts have increased
access and pupil retention by 15% (between 2012 and 2014
– most recent figures available); the attendance rate among
girls is up 12%. Over 68% of children are successfully taking
examinations in spite of only 35% of classrooms being fully
equipped (see more on the independent edu.pbfsudkivu.org/
data). In DR Congo, we have expanded the RBF education
program to include additional modules, including radio-based
support to teachers. In the future, DR Congo, Burundi, CAR and
Malawi will be the focus countries for our education programs.
Respect Education
The quality of education is to a significant extent dependent on
the quality of teaching. Training teachers is, therefore, a key
component of our RBF education programs. Part of the program enables teachers to follow remote learning courses via
radio to improve their skills and expand educational theory
and techniques. In 2015, we introduced this component of the
program in DR Congo in cooperation with Respect Education.
The Respect Education program (REP) was co-developed by
Cordaid specifically for use in conflict-affected areas. According
MAY 2016 © CORDAID
What we did in 2015
to researchers from the Universities of Groningen in the
Netherlands and Mindaneo State in the Philippines, at least
3,000 children on the conflict-prone island of Mindanao have
already been reached and the program is set to reach almost
7,000 children nationwide before the end of next year, also
through the 194 teachers who have been trained. And it works.
Researchers found that schools that participate in the REP
report significantly fewer cases of peer victimization.
The results
Children taking part in Respect Education in 2015-2016:
Burundi: 1,000 DRC: 1,000 Philippines: 14,000
73 schools participated in 2015, 63 in the Philippines,
10 in Burundi and DRC
234 Teachers were trained in 2015, 194 in the Philippines and
40 in Burundi and DRC
‘These (refugee children) have often already been through a lot and are
sometimes traumatized by war, conflict and the dangerous journey to
get here. They deserve to find peace here, stability and to be a child
again…’
Karin Kloosterboer, chair of the Werkgroep Kind in AZC
(Dutch Workgroup Child in Asylum Centers).
Access for all
Many of the children missing out on the benefits of education
are from vulnerable indigenous or minority groups. They are
disabled, are orphans or homeless, and run the risk of being
abused or exploited. Cordaid has a long track record on support
for inclusive education and our policies, programs and practices
are aligned to UNESCO. Part of our approach is to build the
capacity of small, local inclusive educational organizations
through projects and advocacy. In Bangladesh, over 7,000
children with disabilities now have access to education.
G4-8
The arrival of refugees in Europe has brought specific challenges
close to home. Currently, there are more then 10,000 refugee
children in asylum centers in the Netherlands. They are
relocated frequently and have no consistent access to education. On the International Day for the Rights of the Child
(20 November), Cordaid joined with 158 Dutch NGOs to call for
a more child-oriented reception of refugee children in the
Netherlands.
These are only some of the education programs and projects
we worked on in 2015. All can be found through Open Data.
Throughout 2015, we worked closely with our partner
BlueSquare on integrating verification and community
feedback systems into our RBF education projects, aligning
our inputs with those of Healthcare and Security & Justice.
For more on RBF and education, see the independent site:
http://edu.pbfsudkivu.org/data
SECURITY & JUSTICE IN 2015
56
120
1,500
projects
Community Security Architects trained
in DRC
countries
200
locally-led security and justice initiatives
in DRC while community satisfaction with
policing services increased from 20.6% in
2013 to
54
women trained in peace building in
South Sudan
>58%
10
partners
300
female judges trained in Afghanistan
Cordaid presented the co-developed
Global Acceleration Instrument to
the UN review on Resolution 1325
in 2014, also due to increased
surveillance
WHERE WE WORK
AFGHANISTAN
ISRAEL
HAITI
SUDAN
SOUTH
CENTRAL
SUDAN
AFRICAN REP.
SOMALIA
DEM. REP. OF
THE CONGO
BURUNDI
>€5.6 MLN
(2014: €12.1 mln)
MAY 2016 © CORDAID
13
What we did in 2015
COM
AGE MON
N
201 DA
4 -2
015
community security architects
An estimated 1.5 billion people live without security (World
Bank). Most of them live in fragile and conflict-affected areas.
Their communities endure constant security threats, ranging
from armed conflict, theft of harvest to sexual violence.
Security forces and judicial systems offer them little or no
protection. Fragile and conflict-affected regions, such as Syria,
Afghanistan, South Sudan and the Democratic Republic of
Congo, and most recently the eruption of violence in countries
like Burundi and CAR, lack even basic security. Civilians,
particularly women and children, are the most vulnerable.
Yet at the same time, women have a vital role to play in peace
building. Often, peacekeeping missions and formal judiciary
structures are top-down and they often do not take local
knowledge and requirements sufficiently into account. So we
work with local communities from the bottom-up and always
include stimulating women’s participation in everything
relating to security and justice. In 2015, we were gratified to see
the conclusion of a project in Afghanistan designed to increase
the number of women in the judiciary. If female judges are
better qualified and skilled, women are more likely to access
the justice system and face a fair trial. Now, 300 female judges
have been trained and the project reinforced the Afghan
Women Judges Association (for more on this project, see
www.cordaid.org/en/projects/strengthening-afghan-femalemagistrates/111322/.
Community security
One of our most successful multi-country security & justice
programs is 4x4justice. It formed part of the Justice for Sale
campaign in Eastern Congo aimed at improving access to justice,
medical and psychosocial assistance for women. The campaign
is still ongoing and uses a mix of communication media, such
as radio spots, a TV-series and comic books to reach people
in remote areas. All these activities are aimed at creating a
shift in mindset in a society that traditionally holds women
responsible for the sexual violence perpetrated against them.
Our Community Security Architects (CSA) program is proving
increasingly effective.
CSA has now been rolled out in two regions of the DRC –
Batembo and Bahutu – where armed groups are active.
Long-running conflicts on land issues is a major problem here.
We believe collective action can make significant contributions
to resolving the issues.
14
2014 -2015
MON
COM NDA 5
AGE -201
2014
1. Community Security Architects are people from within
communities
2. Community Security Architecture is customised by the
architect and the community, who know the context best
3. Designing security & justice action plans is a group
process preferably including police and judiciary actors
4. All stakeholders are engaged in implementing Security &
Justice Action Plans
5. We provide powerful insights to improve the
effectiveness of (inter-)national policies and programs,
based on best practices in communities worldwide.
X
OLBO
CSA TO
O
CSA T
COM
AGE MON
N
201 DA
4 -2
015
X
OLBO
'There is no peace without forgiveness, without tolerance. Regardless
of ethnicity, social status, we are all brothers... arm yourselves with
justice, love, mercy and authentic peace.'
Pope Francis during his historic visit to the Central African Republic,
December 2015.
Getting results
We have now trained 120 Community Security Architects
(CSAs), operationalized eight community platforms and six
security & justice action plans were agreed upon and partly
implemented. This program has also been launched in
Afghanistan and South Sudan. In Afghanistan we undertook a
successful pilot that identified and trained four CSAs and did
two participatory research studies on the conflict dynamics
and security and justice in two provinces. In South Sudan we
operationalized six community platforms and organized the
discussion of a monitoring report on the disarmament process
among 60 community and government representatives.
Looking ahead to 2016, next steps are the ramping-up of
Community Security Architecture to include two additional
provinces in DR Congo, and expand activities in South Sudan,
Afghanistan, Mali and Somalia. In DRC, 150 communities will
each have developed a security & justice action plan and 1,500
locally-led security and justice initiatives will be in place. In
both Afghanistan and South Sudan, 12 community platforms
will be operationalized and 12 security & justice action plans
will be implemented. In Mali and Somalia two pilots have been
scheduled.
Women, violence and justice
During the more than two decades of armed conflict in South
Sudan women have experienced high levels of violence. At the
end of 2013, violence spiraled to many parts of the country
leading to the displacement of thousands of people to Magwi
County. The majority were women who are specifically vulnerable to gender-based violence (GBV) and have no access to the
most basic safely nets. Local justice institutions, such as the
police, judiciary, chiefs, hesitate to address violence against
women. Some women also perceive certain forms of violence by
male family members as ‘something normal’. Cordaid is now
working to combat violence by strengthening communities
MAY 2016 © CORDAID
What we did in 2015
and local justice structures. In 2015 and working closely with
partner Women for Women International (Wf WI), we have
organized peace-building training for 200 women. Today,
many of them are already playing critical roles as proponents
of peace in their community. Bi-monthly family courts are
now organized in collaboration with local court officials to
scale-up the legal services to GBV victims.
‘There are numerous drivers of conflict in South Sudan. But there’s one
overlooked factor that perhaps could have prevented a resurgence of
violence: a peace table that included women.’
▪▪ Communities’ satisfaction with policing services increased
from 20.6 % in 2013 to 58.1% in 2014, also due to increased
surveillance.
▪▪ In Walungu, the peace tribunal’s mobile courts increased
from 27 in 2013 to 79 in 2014.
‘All security actors of our society, including the judiciary, administration, civil society and the police, must be motivated and work together
to resolve our identified problems.’
Local administrator and chairman of the security committee in Idjwi,
South Kivu.
Jennifer L. Windsor, CEO of Women for Women International (WfWI).
Experience shows that RBF is an ideal tool to improve all
aspects of security and justice in fragile and conflict-affected
areas (see also page 9). This is how we apply RBF:
In Burundi the government, with Cordaid assistance, established six local ‘mixed security committees’ in which the
judiciary, the police, the municipal administration and societal
organizations discuss security problems and solve them at
municipal level. Cordaid had been supporting and improving
their effectiveness through RBF. However, in light of the current
instability in Burundi (see page 27), this activity is on hold.
In May 2015, Cordaid published a position paper on RBF in
security & justice. It can be downloaded at www.cordaid.org/
media/publications/Cordaid-10076-04-4pager-SJ_RBF-ENnew1.pdf.
TRACK RECORD AND TRAINING IN RBF
‘The World Bank has made RBF a major priority. For them and
other donors it is a promising solution with visible though not
always spectacular results. Many countries failed to reach the
Millennium Development Goals. They need stronger health
systems but are dealing with constraints on resources. And RBF
is seen as a solution to overcome those constraints.’
Professor Donald S. Shepard who has evaluated RBF programs
in Haiti and several African countries including Zimbabwe and
participated in the 10-day RBF training course.
Results on security & justice
To date, Cordaid has RBF Security & Justice programs in the
Democratic Republic of Congo (DRC) and Burundi. In the DRC
province of South Kivu, the application of RBF has significantly
improved the performance of the local administration and the
police and judicial systems. It has also led to the revival of local
security councils, which were set up to encourage dialogue.
The impact on security and justice indicators in South Kivu
(DRC) has been positive (most recent confirmed impacts to
year-end 2014):
▪▪ The number of female participants in meetings of local
security committees tripled from 96 to 290.
▪▪ The number of patrols in Shabunda district increased from
1,441 in 2013 to 5,937 in 2014.
▪▪ The number of cases dealt with by the office of the
prosecutor increased from 379 in 2013 to 648 in 2014.
▪▪ Communities reported that police behavior improved and
communities experienced 15% less harassment in 2014.
MAY 2016 © CORDAID
Cordaid has extensive track record in both RBF healthcare
and education and increasingly in security in Africa and
Asia. But as more funds are becoming available for RBFrelated initiatives, notably from the World Bank, the need
for formal training in the relatively new financing
approach is growing among policy-makers in developing
countries. Only a handful of organizations offer this kind
of training. Cordaid is one of them. Our most recent RBF
training course took place in Zimbabwe, where Cordaid
and the University of Zimbabwe gave a 10-day course for
senior policy-makers and implementers from several
African countries. We are also committed members of the
Open RBF platform. A fundamental aspect of Open RBF
(http://openrbf.org) is that, once validated, all data entered
into this independent system are displayed on the internet
for everyone to see and accessible through easy-to-read
dashboards. This encourages everyone to engage with vital
development issues and shows how resources are allocated.
This commitment is fully in line with our pioneering and
state-of-the-art Open Data transparency.
15
What we did in 2015
ECONOMIC OPPORTUNITIES AND WORK IN 2015
116
>2 MLN
17,664
projects in
total direct clients reached through our
RURAF fund since 1998 and
clients, including
27
7,987
440,000
countries
women, benefited from Stability Impact Fund
finance
loans made to entrepreneurs (65% women)
65
partners
Impact investment 1998 - 2015
Since inception, Cordaid has financed over 230 partners and made 430 investments with a mix of equity and debt instruments.
€ mln
200
172
179
156
160
120
128
117
134
143
105
91
80
78
40
29
0
0
1998
6
11
39
51
63
20
1999 2000 2001
2002 2003 2004 2005 2006
Inclusive economic growth is a vital condition for reducing
fragility, fighting poverty and transitioning following conflict.
Cordaid advances private sector development in fragile areas by
supporting local entrepreneurship and small and medium-sized enterprises (SMEs). This support helps to create jobs
and fight poverty but also to build trust, reduce inequalities
and increase social cohesion within and between communities.
Private sector development is also an important strategy for
peace. Widespread youth unemployment is one of the most
pressing social challenges facing fragile areas. Jobs and
opportunities for entrepreneurship are extremely important
and can help to draw young people away from conflict. Specific
constraints faced by female entrepreneurs must be addressed.
Women play a key role in agriculture, trade and microbusinesses. Empowering women economically is an effective strategy
for reducing fragility and rebuilding livelihoods.
Access to finance
Cordaid has been investing in scalable, sustainable financial
models in rural Asia, Africa and Latin America since 1997. To
date, more than two million direct clients have been reached
through our biggest fund under management: the Rural and
Agricultural Fund (RURAF). RURAF’s investees are mainly
microfinance institutions (MFIs) that offer loans, guarantees
and equity to people and businesses that have few options. They
serve farmers and rural microenterprises. SMEs are indirectly
16
2007
2008
2009
2010
2011
2012
2013
2014
2015
supported via dedicated local funds. RURAF provides equity,
guarantees, and subordinated and senior debt. Grants are
provided for capacity building and the development of innovative financial products, services, and methods. In 2015, RURAF’s
activities looked like this:
KEY RURAF FIGURES
Total committed
€48.1 mln
Total outstanding
€45.1 mln
Portfolio at Risk
2.7%
Write-offs
1.4%
Female clients
65%
Rural clients
440,000
Return in 2014
4.5%
Access to finance
45 investees
Impact investment for the future
Cordaid Investments, the asset management branch of
Cordaid, believes that impact investing is the next stage in
development cooperation. If fragile communities are to
flourish, the need for economic development is just as urgent
as the need for security and justice and good public services.
MAY 2016 © CORDAID
What we did in 2015
G4-8
STABILITY IMPACT FUND FOOTPRINT
GUATEMALA
MYANMAR
HAÏTI
SOUTH SUDAN
ETHIOPIA
SIERRA LEONE
LIBERIA
COLOMBIA
NIGERIA
BURUNDI
DEM. REP OF
THE CONGO
SIF focus countries: Sierra Leone, Ethiopia, DRC, Guatemala
Other target countries: South Sudan, Burundi, Nigeria, Myanmar, Haïti, Colombia, Liberia
Fragile and post-conflict countries are prone to relapsing into
cycles of violence. The younger generation is eager for change,
but many of them are uneducated and have few job opportunities. The Stability Impact Fund aims to stimulate entrepreneurship and create jobs in fragile contexts as a means to
achieve economic development and stability. Since its inception in 2014, SIF has been an impact-first fund serving all
segments of micro, small and medium- sized enterprises
(MSMEs). Particular focus is placed on small companies at the
lower end of the segment; the underserved ‘missing middle’
that has the potential of becoming a powerful contributor to
economic growth. SIF provides its investees with access to
loans and patient capital. It is directly linked to Cordaid’s
grant-funded Business Development Services (BDS) to make the
MSMEs investment ready and better equipped to achieve their
social and business goals.
KEY SIF FIGURES
Health finance
In 2015, Cordaid’s Health Fund began piloting improvements to
the quality and quantity of health services in sub-Saharan
Africa by providing health institutions with much-needed
access to finance. The Health Fund specifically targets health
institutions participating in Cordaid’s Results Based Finance
(RBF) system. Healthcare providers receive their grant-based
payments only after their output has been verified. However,
the financial capacity of these health centers remains limited.
Loans provided by the Health Fund enable recipients to access
larger amounts of funding to further improve their services.
Loans are typically used to purchase medical equipment or
supplies, renovate or build facilities, and improve medical
services. Health clinics in Rwanda and Burundi participated in
the pilots. Roll-out will take place in Rwanda in 2016. Although
early days, this is what the Fund looked like in 2015:
KEY HEALTH FUND FIGURES
Total committed 2015
€5.7 mln
Targeted fund size
€20 mln
Total outstanding 2015
€5.0 mln
Loans issued
17
Portfolio at Risk
0%
Focus countries
Write-offs
0%
Rwanda, DR Congo, Zimbabwe, Cameroon,
Kenya, Ethiopia, Burundi
Number of investees
6
Micro-entrepreneurs
17,664 (of whom 7,987 women)
Targeted fund size
€40 mln (€30 mln first closing)
Targeted impact, jobs created
1 ,500 (of which 50% women and
35% youth)
MAY 2016 © CORDAID
17
What we did in 2015
CREATING OPPORTUNITIES THROUGH INVESTMENT
Sierra Leone’s missing middle
Sierra Leone’s financial sector has only enjoyed limited
development since the violent civil war ended in 2002. Small
enterprises have a hard time getting access to capital. Only a
few commercial banks are willing to invest in SMEs due to
the considerable costs and risks involved. Following the Ebola
epidemic, the situation is even more challenging. In mid2015, we published an impact report on the post-Ebola
landscape in Sierra Leone. It can be downloaded at
www.cordaid.org/media/publications/Cordaid-4pager-Ebola_
juni_2015.pdf. Despite the negative impact of the Ebola crisis
on businesses, clients managed to survive the crisis period by
demonstrating a remarkable display of risk management
strategies and entrepreneurship. This confirms why micro
and small entrepreneurs deserve to be supported through
various financial instruments, including loans, coaching and
business development services during and after crisis periods.
Clean water enterprise
Jobs and opportunities to build their own livelihoods are
extremely important, especially for young people (75% of
Sierra Leone’s population is younger that 35 years). One
example of how local entrepreneurs are building opportunities is the James family's Foods and Drink Ltd. (pictured
above). It distills, bottles and sells spring water from a local
source in Sierra Leone under the brand name AquaClean. To
grow its business, which includes a water plant at the source,
the family enrolled in Cordaid’s BDS program in 2015. They
became eligible for Sustainable Impact Fund financing and
their loan was approved in early 2016.
G4-8
RURAF support for small-scale farmers
In Bolivia’s predominantly rural economy, partner Sembrar
Sartawi is one of the few financial institutions to develop
loan products and training tailored to small-scale agricultural production and trading. Sartawi is highly committed to
organizing small-scale farmers to improve their position in
the production chain. In 2011 and 2014, RURAF extended two
significant loans to strengthen Sartawi’s capital position and
consolidate its portfolio. A grant of US$ 20,000 was provided
to introduce four new agricultural financial products,
including village banking and micro-savings products. Dairy
farmer Filomena Nieves is one of the clients to benefit from
Sartawi’s products and services. Her milk production has
increased seven-fold as a result of several microcredit loans
and Sartawi’s technical training. With Sartawi, she has since
been able to negotiate an output contract with a large dairy
factory, generating a stable income for this farmer.
FOOD SECURITY IN 2015
63
7,290
90,000
projects
dairy and apiary farmers in Teso, Uganda
trained in farm management;
farmers in Uganda and conflict-torn South
Sudan will benefit from the manufacture of high
numbers of Wakatis, a sterile solar-powered
microclimate cooler that stores up to 150 kilos
of produce
64
partners
35
farmers' cooperatives in Sierre Leone
supported to re-open local market
WHERE WE WORK
AFGHANISTAN
SOUTH
SUDAN
HAITI
SIERRA LEONE
GHANA
DEM. REP. OF
THE CONGO
UGANDA
BURUNDI
INDONESIA
>€3.2 MLN
(2014: €11.6 mln)
18
MAY 2016 © CORDAID
What we did in 2015
Access to food is always a challenge in fragile and conflictaffected areas. That is why we work with small-scale farmers.
The key aim is to help produce food for local communities and
to create market access to generate income. Organizing
farmers around a common economic goal and integrating the
food value chain potentially reduces tensions. In post-Ebola
Sierra Leone, people are dealing with low food production and
high post-harvest losses. We launched a project that would
offer young people jobs in farming in areas where the only
employment is very dangerous mining work.
After a long period of instability, the Teso region in northeastern Uganda is slowly recovering. As many of the poorest
inhabitants work in dairy and apiary production, partner
SOCADIDO (Soroti Catholic Diocese Integrated Development
Organization) set up a project to improve local farmers’
productivity and incomes. The project targeted dairy and apiary
farmers and it reached a total of 7,290. The latest evaluation
concluded that more than 90% of the target households had
improved their living conditions. One of the many positive
results has been the focus on ‘farming as a business’. Farmers
were both trained in technical issues (i.e. forage for bees, pest
and disease control, apiary management and catching swarm
colonies) and in marketing their produce. Through collective
negotiation, the apiary farmers have already been able to agree
favorable prices on the purchase of 943 new hives.
CORDAID SERVICES FOOD SECURITY
context analysis & planning
productivity
post-harvest
market access
Training &
Education
Training &
Education
Training &
Education
Preparation
of land; Access
to inputs; Seed
governance
Smart solutions
for storage and
processing:
Wakati &
Warrantage
Market
information/
linkage: ICT
organization of farmers
MAY 2016 © CORDAID
Significant funding
A successful combined Disaster Risk Reduction/Food Security
proposal to the EU will enable us to roll out Pro Act, an integrated approach to building resilience, livelihood and food
security in troubled South Sudan.
The Dutch National Postcode Lottery (NPL) donated €2.28
million to further fund the exciting Wakati innovation we
reported on last year. This amount is over and above the €2.7
million regularly given to Cordaid by the NPL. The Wakati is
aimed at farmers without refrigerators in developing countries
where a great deal of produce - and therefore profit - can
be lost through spoilage. It is an innovative device that
increases the short-term storage time for fruit and vegetables.
The solar-powered Wakati stores up to 150 kilos of produce in a
sterilized microclimate. It is estimated that around 90,000
people in Uganda and conflict-torn South Sudan will benefit
from this donation that will enable the manufacture of high
numbers of Wakatis.
In mid-2015, Cordaid published a position paper on food
security. It can be downloaded at: www.cordaid.org/media/
publications/Cordaid-Position_paper_FoodSecurity-LR.pdf.
Building resilience: sustainable development
Disasters hit the poorest the hardest. Those who are destitute
often live in the most dangerous locations and are most
susceptible to recurring hazards, such as floods or droughts.
They are also the people destined – time and again - to lose
their homes, jobs and farmland when fleeing from acts of war.
Disasters can destroy years of investment and hinder further
development. This means that the most effective disaster
response is resilience. This requires a combination of humanitarian aid, rehabilitation and sustainable development.
Although for reporting purposes, we separate out the various
components essential to tackling all three, our long track
record means we are strongly placed to help communities
achieve resilience through an integrated approach.
Track record
Building resilient communities is an ongoing process. In
disaster-prone regions, resilience programs can be part of
humanitarian aid. However, programs can also help local
communities develop capacity to mitigate the impact and
reduce the risk of hazard. Resilience building can also be
supported by lobbying and advocacy in specific focus areas. In
the period 2011 through 2015, Cordaid was part of the Dutch
Partners for Resilience consortium funded by the Netherlands’
Ministry of Trade and Development Cooperation. During that
period, 45 projects in nine countries were implemented. Based
on this experience, we were gratified to be selected to form a
Strategic Partnership with the Dutch Ministry of Foreign
Affairs for the period 2015-2020. For more on resilience, see
www.cordaid.org/en/news/?&topic=resilience
19
What we did in 2015
URBAN MATTERS IN 2015
EXTRACTIVES IN 2015
7 13
35 34
projects partners
projects partners
>€2.3 MLN
>€3.6 MLN
(2014: > €2 mln)
(2014: €6.2 mln)
As part of our new strategy, our Urban Matters business unit
has been integrated into other activities, including our
economic opportunities and resilience focus. However, some of
our Urban Matters programs are still ongoing, aimed at:
▪▪ Improving the living conditions of the people living in the
slums of seven metropolises in South America and Africa;
▪▪ Initiating collaboration and managing all relevant
stakeholders: inhabitants, governments, companies and
investors;
▪▪ Giving priority to the inhabitants’ point of view in all plans;
▪▪ Using our international contacts and networks such as
investors, knowledge centers, companies and NGOs;
▪▪ Stimulating co-financing by all parties involved;
▪▪ Providing sustainable solutions based on sound business
cases;
▪▪ Ensuring that as many inhabitants as possible benefit from
our efforts by broadening the scope of its initiatives (scaling
up) or by copying for use at other locations.
Women promote peace
In addition to establishing projects that promote women’s
participation in civil society, our Women’s Leadership business
unit is tireless in its lobbying and advocacy activities across the
world. In 2015, the focus was very much on the 15th anniversary of
UNSCR 1325 and its disappointing results to date. Resolution 1325
was the first formal and legal document from the United Nations
Security Council (UNSC) that required parties in a conflict to
prevent violations of women’s rights, to support women’s
participation in peace negotiations and in post-conflict
reconstruction, and to protect women and girls from sexual
and gender-based violence in armed conflict. It was also the
first United Nations resolution to specifically mention women.
Public transport Cape Town on track
For the past three years Cordaid has supported the Cape Town,
South Africa, administration in developing the Integrated
Public Transportation project. The €55 million project is now
ready to take off. Through improved transportation, people
from the townships will have better access to employment,
healthcare systems and higher education.
The resolution has since become an organizing framework for
the women, peace and security agenda. The issue is that 1325 has
failed consistently to find the funding needed to pursue its goals.
WOMEN’S LEADERSHIP IN 2015
46 49
projects partners
>€5.5 MLN
(2014: €9.3 mln)
Lobby & Advocacy in fragile contexts
Cordaid has a proven track record in lobby and advocacy in
fragile and conflict-affected situations. Our success lies in an
inclusive approach. Efforts start at community level, centered
on the perspectives and priorities of local women and men.
Through local partnerships based on expertise and trust,
Cordaid works towards restoring confidence and social cohesion, also building strategic relationships to ensure that the
agendas of fragile communities are connected to national and
international policy levels where decisions are taken.
Throughout 2015, we worked hard on various lobby and advocacy
activities. In education, our lobby supported the decision in the
Central African Republic to adopt Results Based Finance as the
funding mechanism for their national education policy. Our
Extractives team is closely involved in lobbying activities in
Kenya, South Sudan and Nigeria to redress the negative social
and environmental impact of and corruption in the oil sector.
Cordaid is a member of the board of EITI, the Extractives
Industry’s Transparency Initiative, aimed at lobbying for and
advocating the ‘Publish What You Pay’ approach to preventing
corruption and increasing transparency in the industry.
GAI speeds up peace funding
At the UN High-Level Review in the fall of 2015, this situation was
acknowledged, also through the presentation of the Global
Acceleration Instrument (GAI). This instrument was co-developed by Cordaid’s Security & Justice and Women’s Leadership
teams and aims to increase funding to women’s organizations
promoting peace around the world. GAI is already having an
impact. Both the UK and Spain have pledged $ 1 million, the
Australian government increased its initial pledge from $ 1 to
$ 4 million, and Ireland has committed at least $ 200,000.
‘UNSCR 1325 gives us the political framework to get women on board
and to change the perception of women from victims to agents of
change in conflict resolution processes. Yet 15 years later, donor
countries invest billions in their own (military) security, but fail to
allocate the resources to implement UNSCR 1325 and hence to
implement measures to improve the security situation of women.
This lack of political will to generate adequate funding deprives the
world of a most effective response to radicalization.’
CEO Simone Filippini, writing in the UK’s The Guardian newspaper.
20
MAY 2016 © CORDAID
What we did in 2015
G4-8
CORDAID’S FOOTPRINT IN PROJECTS RELATED TO WOMEN
AFGHANISTAN
LEBANON
PAKISTAN
ISRAEL
PALESTINE STATE
GUATEMALA
HAITI
CENTRAL AFRICAN REPUBLIC
HONDURAS
NIGERIA
SIERRA LEONE
EL SALVADOR
COLOMBIA
GHANA
CAMEROON
CONGO-BRAZZAVILLE
BOLIVIA
DR OF CONGO
ZAMBIA
VIETNAM
SUDAN
SOUTH SUDAN
ETHIOPIA
KENYA
UGANDA
RWANDA
BURUNDI
TANZANIA
BANGLADESH
PHILIPPINES
INDIA
INDONESIA
MALAWI
ZIMBABWE
SOURCE Cordaid IATI activity file - http://iatiregistry.org/dataset/cordaid-activities
‘Peace and development cannot happen without us, women. We need
the international community to support us with policies but also with
sustainable funding. Policies and funding that are put in place
in consultation with us. Because what is the purpose of political
declarations if it doesn’t match the realities on the ground.’
Hasina Safi, Afghan Women’s Network (AWN).
Cordaid in the Netherlands
Poverty and exclusion are realities in the Netherlands.
According to the poverty report (Armoedesignalement) published
annually by the Dutch government, more than 544,000 or >10%
of households in the Netherlands are living in relative poverty.
This figure is down on the previous year (10.3%), also as economic
recovery stabilizes. However, this still means that more than a
million of the Netherlands’ total 16.8 million people find
making ends meet a struggle, especially in the larger cities.
What is most alarming is that the number of households that
have been under the poverty line for more than four years is
increasing: 217,000 in 2015. Of the people who live in long-term
poverty, 131,000 are children (Armoede en sociale uitsluiting 2015/
Poverty and social exclusion 2015, The Netherlands’ Central Bureau for
Statistics, December 2015). At year-end 2015, the number of food
banks had increased to 163 (2014: 157).
Giving back to the community
People clearly need help. Cordaid is convinced that care for the
vulnerable in society is essentially a government responsibility.
But we are also aware that there are countless community
initiatives from people who want to change their situation
themselves. What they need is help to help themselves. This
MAY 2016 © CORDAID
is where Cordaid Bond zonder Naam (literally: Nameless
Association) that was set up during the 1930s Depression,
comes in. We invest in community empowerment by bringing
together parties that can help initiatives, such as local authorities, companies and social organizations. By creating a support
‘community’, we can help get these initiatives off the ground.
And by joining forces, we can help disadvantaged people, often
the long-term unemployed, take an active part in their local
communities so they can ultimately help themselves. And that
is exactly what they are doing. In 2014, Cordaid supported a
group of nine women in setting up the ‘Our cooperative’ in
Breda in the south of the Netherlands. The original cooperative
now has a total of 59 members, interns and volunteers. Many of
the members were long-term unemployed. They were allowed
to retain their social-security benefits for a specific period of
time. In the meanwhile, eight members have found paid work
or have gone on to further education, saving the local authority
a massive €100,000 on benefits. Moreover, the cooperative is
profitable and has been able to pay out part of its profits
- €2,000 - to the local authority.
Winning ideas
Cordaid in the Netherlands also works on stimulating Dutch
ingenuity that can be applied at home and exported to fragile
and conflict-affected areas. For the second successive year, we
organized the Social AdVenture Challenge. We are looking for
bright, smart and viable ideas. The 2015 participants did not
disappoint. The first prize in the national category (€7,500)
went to Ubuntu, a social cooperative in Amsterdam, made up
almost exclusively of single mothers. By pooling their skills,
experience and energy into Ubuntu, they have created work for
themselves and others. Both the international and popular
21
What we did in 2015
prizes (€7,500 and €750, respectively) went to LegBank, an
ingenious prototype machine that produces leg prostheses
economically and quickly. The LegBank has already won a
significant award from our (donor) partner ASN Bank. The
Social AdVenture Challenge win will enable further development. For more on the challenge: www.cordaid.org/nl/nieuws/
nederland-onderneemt-sociaal/ (in Dutch only) or on Twitter:
#SocialAdventure.
Open Data - commitment to transparency
At any given time, Cordaid is developing, implementing
and executing hundreds of programs and projects in over
40 countries. All our projects are aimed at specific outcomes but often impact over time is harder to quantify, not
least because we work in the world’s toughest and most
volatile regions. What we can do is provide a clear and
transparent accounting of what we are doing, how funds
are deployed and what progress has been made. In practical terms, this means everyone – clients, partners, donors
– can follow each and every Cordaid program and project
(www.cordaid.org/en/vision-open-data/). Cordaid publishes
and updates its projects on a quarterly basis using the
internationally recognized IATI open data standard
(www.iatistandard.org). We work on the basis that all
project information should be published; internal reporting and updating processes are streamlined under the
‘single entry, single source and multi-use’ principle.
Progress can be reviewed during rather than at the end of
activities. And because data in itself is not knowledge, our
open-data project files further provide narrative information and background about the vast majority of projects. At
present, the data and information generated must be
considered as outcomes rather than verified sustainable
impacts. We are still working on this next step. However,
Cordaid’s approach is considered pioneering and state-ofthe-art and we are frequently invited to provide workshops
and training on Open Data to a wide variety of organizations, including regulators and government auditors. In
early 2015, we rolled out interactive visual tools that help
users to produce insightful graphs, maps and charts based
on open data information. Partners in Uganda were offered
training for trainers on project reporting using open data
during 2015.
22
MAY 2016 © CORDAID
how we work
HOW WE WORK
Cordaid works in the most high-risk fragile and conflict-affected areas in the world. Our mission is to help transform those
areas into flourishing communities. We cannot do that alone.
Nor do we work in a vacuum. Cordaid is not a single-issue NGO.
We take the view that there is little point in securing
high-quality basic healthcare if women are still unsafe and
exploited, children malnourished and unschooled, and communities divided and insecure. So we work with our clients (local
communities and people), our partners and our donors to ensure
the support offered is what local communities really need.
CORDAID - BUILDING FLOURISHING COMMUNITIES IN FRAGILE STATES
In flourishing communities, people are able to satisfy their fundamental human needs when social structures and institutions
function inclusively and sustainably. In fragile contexts, this is a fundamental challenge.
Cordaid’s intiatives contribute to peace and nation building in fragile contexts, leading to strengthened social contracts,
resolved power imbalances and structural social change.
security and justice
opportunity
governance and services
Security structures and institutions respond
to vulnerable communities need for protection,
justice, and improved resilience against natural or
man-made disasters
The private and public sectors
function in a manner whereby once
excluded entrepreneurs can actively
participate in the economy
Governing institutions are responsive to the needs
of all people living in fragile contexts, including
access to social services
IMPACT
CORNERSTONES
OUTCOME
Empowerment: All people are able to speak out and influence in the decision-making processes that shape their society
PROBLEM
ACTIVITY
OUTPUT
Fragility: Weak governance structures; delegitimized
social contracts, damaged social cohesion
Rebuild social contracts through performance based
finance (PBF) to support effective justice and rule of law,
health care and education
Justice expanded through a widened magistrate;
access to timely, quality and efficient health care;
girls and children stay in school
Globalization: global common goods unfairly distributed,
neglected, overused and abused.
Apply risk reduction techniques and action plans to
empower citizens mitigate and manage challenges to
productive land, clean water and safe shelter
Loss of life and property is reduced; community
continuity is improved
Power imbalances: power is employed not for the
good of an entire society, but in favor of elites and
special interest groups
Convene and build the capacity of civil society to
constructively participate in peace building platforms
Citizen engagement and social accountability is
enhanced; unusual suspects are drawn together to
support social processes and goals
Gender inequality: a cross-cutting fundamental power
imbalance and root cause of fragility
Use PBF and convening power to ensure that women and
girls needs in fragile contexts, are articulated and met
Women gain access and participate in peace processes;
access to appropriate sexual and reproductive health;
women are free to exercise economic rights
Global socio-economic changes: widening wealth
gap lack of political will to combat poverty or find
innovative solutions to structural problems
Invest in funds that deliver much needed capital and in
conflict sensitive business development training
A thriving Small and Medium-Size Enterprise (SME)
sector gives rise to inclusive jobs, skills and
spring-up industry
What clients want
At Cordaid, we are convinced that power imbalances and the
exclusion of people, whether economic, through lack of
security, through gender or religion, are among the root causes
of fragility. That is why we involve communities at every stage
of our programming and projects. The people concerned know
the situation best; they know what is going right or wrong. We
have worked hard on developing tools that give communities a
voice. The withdrawal of NATO troops from Afghanistan at the
end of 2014 gave rise to real concerns among women there.
Working with local partners the Afghan Women’s Network
(ANW) and the Afghanistan Public Policy Research
Organization (APPRO), we launched the Transition Monitor, a
periodic survey among local women that tracks and documents
MAY 2016 © CORDAID
impacts in three areas: overall security and access to justice,
access to work and public life, and mobility and access to
services. The Transition Monitor continues to be used to
understand community concerns and priorities. The Women’s
Peace and Security Barometer is another Cordaid innovation.
It has now been further expanded from three to four countries.
Women in DR Congo, Columbia, India and South Sudan define
what security means for them. They then provide data on the
daily reality of peace and security issues for local women. This
information is valuable for policy makers, governments and
donors. The added value is that the analyses are reported back
to the local women, empowering them at negotiating tables
at all levels of policy development and implementation.
23
how we work
‘Cordaid is well-placed to provide critical views and recommendations to internal actors involved in Afghanistan, such as NATO. The necessity to
continue to liaise with civil society and be informed by independent research initiatives on women’s security and their perceptions of the ANSF
(Afghan National Security Forces) in guaranteeing their security, will be as important and relevant as ever.’
Mari Skare, Former NATO Secretary General’s Special Representative for Women, Peace and Security.
G4-8
BAROMETER FOOTPRINT 2015
Palestine
A barometer initiative is
empowering Palestinian women
from both stories of the Green
Line to tell their Stories, analyze
them collectively and provide
specific recommendations for
action and policy change to
audiences internationally and
in the region.
Afghanistan
Four cycles of Monitoring Women in Transition
were completed. Lobby and advocacy on the
basis of the transition monitor informed the
policies of NATO and other bodies. A new
barometer initiative has been developed to
continue to monitor Afghan women’s security,
and also support implementation of the new
National Action Plan for UNSC 1325.
South Sudan
Community consultations
helped to open up dialogue
on a previously silent subject
of women’s security.
Women’s stories of insecurity
in Western Bahr al Ghazal
state have been documented
and analyzed, and will be
used not only for policy
advocacy but also a series of
community radio programs.
Colombia
Collaboration among Colombian women’s networks and
organizations successfully produced tools and indicators to capture
the experiences of over 2,000 women regarding violence and
discrimination affecting political participation and economic
autonomy. The outcomes of the first cycle of data collection were
analysed in a series of participatory workshops to produce policy
analysis and follow-up actions.
Northeast India
The first cycle of monitoring has been
completed in two states, Manipur and
Assam. The barometer has generated
awareness and actions at communitylevel, and the consolidated evidence base
has been used in policy advocacy and
multi-stakeholder engagement.
Burundi
Exploratory discussions are
underway to gauge
possibilities for Barometer
development.
Democratic Republic of Congo
The Femme au Fone initiative is using mobile
phones and radio to promote the protection,
empowerment and participation of women.
Women use SMS to report security issues. This
information is being used in regular radio
reports and also for advocacy. 1,000 stories
were collected in the pilot phase and published.
Israel
Bedouin women in the Negev
Desert have completed a first
round of gathering women’s
perceptions regarding
personal safety and security,
economic prosperity,
equality and ability to
influence decision-making
processes. Results have been
presented to the Bedouin
community and to local,
national and international
stakeholders and dutybearers. Indicators for
ongoing monitoring of the
situation are being
developed.
EXPANDING THE FLOURISHING COMMUNITY INDEX
Cordaid’s innovative new methodology for assessing the
priorities of local communities – the Flourishing Community
Index or FCI – has been further extended.
The technology-based FCI helps us reach client beneficiaries
in an objective and inclusive way – through story-telling.
This is a simple, easily applicable and replicable approach that
can be used on a large scale in local communities in different
countries. In 2015, a number of ‘train the trainers’ workshops
were given to local partners in South Kivu, DRC. We had
started an FCI pilot in Burundi at the end of 2014, however due
to rapid deterioration of the political situation (see page 27)
24
it had to be put on hold. As part of our expansion plans, we
are currently developing a number of FCI apps for specific
purposes. Colleagues working on Lobby & Advocacy are
already using a tailored app. A ‘Resilient Community Index’
app for Cordaid’s Disaster Reduction and Resilience team will
be available in 2016. In Uganda, we also trained local partners
in collecting data on how people perceive their own and
the community’s capacities to address a hazard. Again,
story-telling combined with quantitative data is used to
gain a fuller understanding of community needs.
MAY 2016 © CORDAID
how we work
Working with partners
G4-16
In 2015, we listed over 1,000 partners on www.cordaid.org.
There are implementing partners that are firmly rooted locally,
and funding partners that finance the projects. Finally, we also
list the networks and alliances we are part of. Our implementing partners are by far the largest group because we are not a
single-issue organization. The prospect of the post-2015
funding situation and our commitment to the Global Goals
mean we will be focusing almost exclusively on fragile and
conflict-affected areas. Of the current 46 countries where we
worked in 2015, 22 (including the Netherlands) will become
priority regions from 2016; Cordaid has offices in 12 of these 22
countries.
However, this does not mean we will sever ties with existing
partners in, for example, countries that are no longer a priority
focus for us. We will continue to maintain relationships as
fragile and conflict-affected situations can arise at any time
and in any place, as the experience in Burundi demonstrates.
From 2016, we will also be revisiting strategic partnerships and
have opted to cut back the current 83 to 53 of the most relevant
to our fragility and conflict-affected regional focus. Our most
strategic partners, Caritas Internationalis and CIDSE, obviously remain crucial to our future. We are intensely grateful to all
our partners for the cooperation and good work they (continue)
to do around the world.
However, partners believe we could further improve on the
advice and guidance we provide. So partner comments are
generally positive about Cordaid but also critical. We are now
looking at ways to improve our partner dialogue as, in summary,
the message is: Cordaid needs to become a better listener.
MFS II – EVALUATED
Over a five-year period, more than 70 countries received
€1.9 billion in Dutch government MFS II funding through
67 Dutch development organizations, including Cordaid.
One of the preconditions for this funding was that all
projects funded through MFS II would be carefully and
independently evaluated. That evaluation was completed
in September 2015 and is the largest endeavor of its kind
ever undertaken. The results included in an 8,000-page
report, also collected by not-for-profits such as Cordaid,
show that Dutch development cooperation organizations
deliver excellent work. And that tax-payers’ money
has been well spent on pursuing the Millennium
Development Goals. The full report and summary versions,
also per country, can be reviewed and downloaded at
https://www.partos.nl/joint-MFSII-evaluations.
‘There has been a lot of criticism of the sector in recent years. The
government has also made serious cutbacks on subsidies to NGOs.
And now it seems that the sector is simply good. It’s effective and
efficient, although we cannot always find hard evidence for the
latter…’
What our partners say
Throughout the MFS II period from 2011 to 2015, we monitored
Cordaid partner perceptions on our working relationship.
Through a bi-annual survey (2011, 2013 and 2015), one of our
aims was to get feedback from partners on the support provided by Cordaid. In general, we scored relatively well on quality of
support. Cordaid is highly respected because we are seen as
showing respect to partners, their knowhow and expertise.
G4-6
Professor Wiebe Bijker of Maastricht University who oversaw
the MFS II evaluation.
WHERE WE WORK FROM 2016
THE NETHERLANDS
SYRIA
IRAQ
AFGHANISTAN
LEBANON
INDIA
BANGLADESH
CENTRAL
AFRICAN REP.
SOUTH
SUDAN
NIGERIA
HAITI
SIERRA LEONE
CAMEROON
PHILIPPINES
ETHIOPIA
KENYA
UGANDA
MYANMAR
BURUNDI
DEM. REP. OF
THE CONGO
MALAWI
ZIMBABWE
MAY 2016 © CORDAID
25
G4-26
COMMUNICATION, RAISING AWARENESS AND
ENGAGEMENT IN 2015
>42 MLN
views as Cordaid ad campaign goes viral
>500,000
visitors to our website
G4-24
Our communication team’s task is raise awareness of the
challenges facing people in fragile and conflict-affected
situations. People, our stakeholders – client beneficiaries,
partners, (institutional and individual) donors, personnel
- need information. We aim to provide it by making challenges
visible. And by explaining Cordaid’s approach to tackling them.
Sense of urgency
Relevant communication can help people understand what is
needed and how Cordaid’s propositions translate into programs
and projects to meet those needs. We have put in place a
communication strategy designed to maximize engagement
with all stakeholder groups, our colleagues around the world,
and civil society movements, especially Catholic organizations
like Caritas Internationalis and CIDSE. Our communication is
committed to keeping alive the sense of urgency around fragile
and conflict-affected regions. We do this by issue campaigning,
systematic engagement, online excellence, flexibility and
unifying our visibility through a centralized multi-label and
multi-stakeholder approach.
how we work
Communication in 2015
We began focusing on issue-campaigning in 2015. An issue
campaign is a series of coordinated activities around a specific
topic. One example is the refugee crisis in the Mediterranean.
CEO Simone Filippini visited camps in Greece and on the
border with Macedonia to learn at first hand about the plight
of the people fleeing conflict and economic problems. Caritas
Greece and Cordaid staff were distributing food packages to
around 2,000 refugees daily. Through media coverage, visits of
this kind help raise awareness on the issue but also on
Cordaid’s role in alleviating the humanitarian crisis. We
backed up the visit with an all media information and
fund-raising campaign, specifically through social media.
Thanks to close cooperation between the fundraising and
communications teams there was an immediate surge in
donations of close to €1 million from individual donors.
Overall, through our visible presence on the ground in conflict
and disaster hot spots, we are increasingly invited to provide
background and comments on crises, thereby reinforcing our
ability to inform and raise awareness among the general
public.
Providing information
Cordaid uses all types of media, both conventional and new, to
inform, raise awareness and engage support bases. We continuously publish and update daily topical news on our website
and through mass media. Involvement with our individual
donor base and interested parties is achieved through connecting with them on social media and at live events. We gain trust
AD CAMPAIGN GOES VIRAL
In February 2015, a few people in France and Canada shared
our 2007 ‘Small Change, Big Difference’ offline ad campaign
on Twitter. Although we have not used the campaign in
recent years, the images are still out there, online. And they
are now being found by people and organizations all over the
world. Within weeks, the images had gone viral and more
than 42 million people had viewed them, also through
publication by the Huffington Post and other authoritative sites.
There are indications that the campaign is partially responsible for a doubling of our website visitors to more than a
26
quarter of a million in the second quarter of 2015. Created by
Cordaid and Saatchi & Saatchi for Cordaid Mensen in Nood
(People in Need), the campaign won the Cannes Silver Lion
award. Saatchi & Saatchi auctioned off the award and
donated the proceeds to Cordaid. The campaign is still used
by art and advertising colleges for educational purposes. This
is a classic example of how Cordaid leads in thinking about
raising awareness – and it is still making people think today.
Check out #PeopleinNeed on Twitter.
MAY 2016 © CORDAID
how we work
THE WALK
More than 3,000 people have taken a real-time walk with
Chanceline, a 26-year old mother-to-be in the DRC, on our
website (www.cordaid.org/en/healthforall/youtube) and now
on YouTube. Chanceline has to walk 27 kilometers to the
nearest health clinic. It is some walk for a simple check-up
- over five hours and another five to get home again. And
Chanceline has done the return trip five times during each of
her three pregnancies. Walking is the only option; taxis are
too expensive for small-scale farmers. So she walks alone
by providing full disclosure on our projects through Open Data
(see page 22). As noted, (issue) campaigns are used to raise
specific awareness, also through the websites of our labels in
the Netherlands. For example, in 2015 following a Cordaid
Memisa campaign, we were able to fund training for 12,000
health workers. A key component of the campaign was our
estimate that a safe clinic birth costs around € 7. Information
like this gives donors a clear idea of what their money can do.
Mother’s Day in May 2015 was an opportunity to revisit the
series of television documentaries made in the Netherlands
and Uganda on becoming a mother. It highlights the high
number of deaths around pregnancy and birth in the poorest
countries. We have also set up a number of partnerships with
retailers who offer to donate a percentage of sales to Cordaid
Memisa at no additional cost to the shopper. All sales support
Cordaid Memisa and therefore our health programs. In
October, the popular television program RTL Boulevard helped
us raise funds, raise our profile and vastly improve our ranking
in brand preference.
Reaching people
During 2015, visitor numbers to our Dutch-language site was
stable, while the number of visitors to our English-language
site increased to 334,000, up from 172,674 in 2014. Our visitors
came from all over the world. Of our labels, Cordaid Memisa
was visited by the most people (>100,000). Our projects had
over 137,000 (2014: 110,000) visitors in both languages. And
more than 7,380 (2014: 11,300) unique downloads were made of
information posted on our site. All the social media we use
(Facebook, Twitter, YouTube, LinkedIn) achieved an average
real increase in followers, with Twitter now nearing 10,000
followers. YouTube has become an important medium for
Cordaid, with not only The Walk (see sidebar) and the 2007
MAY 2016 © CORDAID
through dry lands, in rain storms, under the burning sun. A
lot can happen on her walks. Both people and wild animals
can be dangerous. Why did Chanceline agree to make this file
and why did Cordaid show it in real-time? Because she knows
that healthcare should be a right not a privilege.
In January 2016, Chanceline gave birth to a healthy daughter,
Anne Emmanuelle. Both mother and baby are doing very well
ad campaign that went viral in 2015 attracting viewers.
Cordaid’s programs on youth gangs in El Salvador drew close
to 50,000 views.
How we manage setbacks
Many of the places we work are high-risk and volatile. How do
we deal with rapid changes? Burundi is a good example of the
dilemmas we often face. In our 2014 annual report, we wrote
optimistically about how our work in Burundi was progressing.
We have been present in this country for close to 20 years,
through civil war and unrest. Burundi is one of the poorest
countries in the world. It is densely populated, especially in
rural areas where the average farm size is no more than one
acre per family. This is subsistence farming at its most basic.
At the same time, Burundi’s 10.5 million population has one of
the highest birth rates in the world. Over time, Cordaid has set
up a multi-focus range of community-based programs and
projects throughout the country. With the government, we
were looking at developing Results Based Finance (RBF) health
programs into a national healthcare system. And - based on
positive experience - we had started RBF pilots in education
and security & justice. That was at the start of 2015 when the
political situation appeared relatively stable.
Breach of trust
That all changed in April 2015 when the incumbent president
opted to run for and ultimately won a third term in office. This
was followed by a failed coup and around 100,000 people
fleeing to neighboring countries. The situation now can best be
described as a humanitarian crisis. One further result of the
(political) instability is the withdrawal of international donors
from public-sector funding. The elections had been broadly
criticized by the international community and suspicions of
27
how we work
jobs
Building a business
CORDAID’S FOOTPRINT IN BURUNDI
Healthcare
jobs
Building a business
KIRUNDO
Education
RWANDA
jobs
Building a business
Healthcare
jobs
jobs
Building a business
Building
Healthcare
CIBITOKE
Education
Rule of Law
jobs
Rule of Law
DEM. REP.
OF THE CONGO
jobs
Education
KAYANZA
Healthcare
Healthcare
Rule of Law
Building a business
BUBANZA Education
Vocational &
Education
professional training
jobs
Healthcare
Building a business
Healthcare
Education
jobs
jobs
Building
aEducation
business
Vocational
& a business
Building
KARUZI
Rule of Law
Rule of Law
Rule of Law
MURAMVYA
BUJUMBURA
MAIRIE
CANKUZO
Building
a business
jobs
Healthcare
jobs
TANZANIA
MUYINGA
Healthcare
NGOZI
jobs
Vocational & Building a business
Building
a business
professional
training
Education
jobs
Vocational &
a business
Rule of Law
Building a business
Rule of Law
Healthcare
Healthcare
Healthcare
Building a business
BUJUMBURA
Education
Vocational &
Vocational
&& Healthcare
Vocational
professional trainingBuilding a business
jobs
Education
jobs
Vocational &
jobs
Building a business
Education
Building a business
Healthcare
professionalMWARO
training
Rule
of Law
GITEGARule of Law
Healthcare
Education
Rule of Law
BUJUMBURA
Healthcare
Vocational
&
RURAL
Education
Healthcare
professional
training
Rule of Law
Education
Education
Rule
Law
Rule
of of
Law
Vocational &
jobs
Education
RUYIGI
Rule of Law
Vocational &
Vocational
&
Vocational &
Building a business
professional training professional training
Vocational &
Education
BuildingRule
a business
of Law
BURURI
Vocational &
Healthcare
RUTANA
jobs
Rule
ofVocational
Law
Healthcare
&
Education
jobs
Building a business
Education
Rule of Law
Vocational &
Healthcare
Rule of Law
professional
training
MAKAMBA
Vocational &
TANZANIA
Vocational &
Education
Rule of Law
Vocational &
In Burundi, the peace following the civil war that ended in 2008 is still fragile. Apart from political instability, the country also suffers from poverty and land
shortage. This is one of the poorest countries in the world, ranking 180 out of 187 (UNDP’s Human Development Index, 2014). As the spread of Cordaid offices
and activities shows, we are working on (multi-focus) community-based programs and projects in the majority of Burundi’s provinces.
growing corruption have led to a breach between major donors
and the central government. The international donor community is now withholding funding for existing programs unless
NGOs and not-for-profits can guarantee there is no government
access or involvement in management or disbursement.
Emergency mode?
What is the alternative when the existing (healthcare and
education) infrastructure is owned by the State? As Cordaid,
we have to come up with solutions so that we can continue to
provide the support people and communities desperately need.
A possible solution is to manage the extensive RBF healthcare
network through civil society partners and local NGOs. This is a
huge undertaking. However, unless we can find a workable
solution, RBF as a concept is no longer viable. The original aim
had been to evolve RBF into a national policy. Now, it may have
to become a form of national insurance system but the (financial) infrastructure required to support a system of that kind is
far ahead in Burundi’s future. A more immediate band-aid
solution is to switch to emergency mode whereby projects are
funded directly by Cordaid. We have, meanwhile, reduced
operations in our RBF education and justice pilots until there is
more clarity; there is definitely no chance of upscaling pilots as
funding is frozen until we can come up with a solution.
However, emergency mode may be the only solution in the
medium-term, or until the current international efforts to
defuse the situation have achieved results.
28
‘Many countries get past civil war and other conflicts through reconciliation. Just look at South Africa and there are other examples even closer
to here. But not in Burundi itself. I believe we should also be thinking
about how to stimulate reconciliation here…’
Charles Gerhardt, Country Director, Cordaid Burundi.
Learning from complaints
G4-27
Cordaid has in place a comprehensive framework for responding to any complaints that may arise from our programs and
other activities, such as fund raising. Fast and transparent
responses to complaints are crucial both for retaining good
relationships and for our reputation. There is a clear process
for managing complaints. We set time limits on responses:
confirmation of receipt within two days, a maximum of four
weeks for assessment of the complaint, followed by response
to the complainant. If no satisfactory solution can be found,
the issue can be forwarded to the Complaints Committee
comprising the CEO, the Q&C Compliance Officer and the
Manager of the Donor Contact Center.
Lessons learned
We received a total of four complaints from partners in 2015.
Often complaints relate to lengthy time lapses between
submission of proposals and decisions by Cordaid. One such
complaint was received in the reporting year. In our view, the
MAY 2016 © CORDAID
how we work
complaint was valid and we took action to rectify. Another
complaint was designated what we call an ‘objection’. These
usually concern objections to funding decisions. The main
complaint was that we had not communicated the ending of
support in a timely manner, especially as this stipulation had
been included in contracts. Again, we considered the objection
valid. Processes will be put in place to ensure such oversights in
communication do not recur.
Individual donor complaints
Our individual donors are crucial to Cordaid. That is why we
aim for transparent and long-term relationships. We have put
in place an easy to use system for the relatively rare times
things go wrong. Donors can access a user-friendly, online form
on our website. In 2015, we received a total of 366 complaints
and queries from a donor base of close to 300,000, down from
484 in 2014.
‘I am so grateful to all the kind people who took care of me all the way,
from Chukudum to today.’
Lucia Nadai, a mother of seven who was admitted to Torit hospital,
South Sudan after a miscarriage in May 2015. She was referred to
Chukudum hospital with placenta carcinoma and taken there by
one of the ambulances donated by Cordaid to facilitate referrals of
complicated cases. The correct referral and the ambulance literally
saved her life.
MAY 2016 © CORDAID
29
How we did in 2015
HOW WE DID IN 2015
Organizational aims in 2015
At the beginning of 2015, Cordaid set a number of aims. This is
how we pursued them.
Aim: at the end of 2015 Cordaid will be ready for a future
without the Dutch co-funding framework (MFS II). In preparation we are finalizing plans for and implementing a streamlined and focused One Cordaid to meet the challenges of the
future. This includes a fully integrated and more effective
brand and communication strategy and a reinforced corporate
culture and behavior. Furthermore, it concerns how we
manage relationships – between head office and our country
offices and with our partners.
Throughout 2015, Cordaid worked on achieving and implementing all the goals set in this aim. Strategy has been framed, a
right-sized organization and structure have been put in place,
communication and brand strategies, specifically in issue-campaigning, have been implemented. We are gradually reducing
the number of partners to bring these relationships into line
with our future focus, program, product and geographic areas.
Aim: Cordaid continues to optimize funding, especially by
broadening its donor base to institutions, private foundations
and individual philanthropists.
Income from government and other funders, such as the
World Bank and the Global Fund, various UN organizations,
the EU and philanthropic foundations, etc, rose €25.3 million
compared to 2014 due primarily to improved tendering.
Aim: At least €28 million raised from individual donors in the
Netherlands.
In 2015, Cordaid was able to raise over €26.75 million from
individual donors, including legacies and other donations.
This is 3% under our target but almost €1 million higher than
in 2014. However, we see opportunities in greater acquisition
efforts among businesses and foundations. This effort has been
incorporated in our new team structure.
Aim: Cordaid further increases its tender success rate to 45%
(2014: 40%).
Of the 70 tenders submitted during the reporting year to
potential donors ranging from (the Dutch) government,
international bodies and philanthropic foundations, we were
awarded 40 or a 57% success rate compared to 40% in 2014. This
increase is an indication of our growing skill in the often
extremely complex and time-consuming tendering process and
the greater focus in our programming.
30
Aim: Continued strengthening of country offices to enhance
our local impact in fragile and conflict-affected areas. We will
be improving administration, finance, programming, reputation and local funding. At the same time, we will also rationalize our presence in certain countries and diversify the type of
presence.
In 2015, the number of personnel in country offices increased
from 254 in 2014 to 421 in 2015. There has been a rationalization
of our presence in some countries and we have diversified our
presence as we further focus on specific countries based on our
new strategy. Significant progress has been made in providing
country offices with the same access to administrative services
available at Head Office so that all have essential tools for
reporting on program and project progress.
Aim: Employee satisfaction >7.
Standard practice at Cordaid is to measure Employee
Satisfaction through twice-yearly surveys (ESS). During 2015,
dialogues on the restructuring process were so intense that
no separate surveys were undertaken. We will recommence
ESS in 2016.
Fundingraising and spending in 2015
G4-9
>€151.9 MLN
total funds raised
€145.4
MLN
total funds spent
€17.1
MLN
total donations from Dutch individual donors, excluding legacies
€6.1
MLN
spent on fundraising
€5
MLN
management and administration expenses
As part of our transparency and governance, Cordaid publishes
a full accounting of finances in the Financial Statements
(see page 42). Here follows a summary of that comprehensive
information.
What we spent in 2015
Cordaid spent a total of over €145.4 million (2014: €172.5 million)
on programs, projects and public information and awareness in
2015.
MAY 2016 © CORDAID
How we did in 2015
X €1,000
2015
2014
Healthcare
56,854
68,584
Child & education
5,394
7,313
Disaster response
41,929
26,346
5,554
9,345
Extractives
3,612
6,226
Security & justice
5,557
12,122
Entrepreneurship
1,711
3,967
2,273
2,074
Cordaid Netherlands
12,184
12,195
Investments
2,650
7,769
Food Security
3,198
11,613
- Public information / awareness campaigns
4,561
5,743
145,473
172,563
Women’s leadership
Urban matters
Total spending
Where our funding comes from
Cordaid’s funding comes from a combination of (Dutch)
government, institutional (the World Bank, the Global Fund,
the United Nations and the European Union), and close to
300,000 individual donors in the Netherlands.
X €1,000
2015
2014
Own fundraising
26,750
25,844
12,414
11,055
109,573
138,917
2,133
8,655
Investment income
211
3,517
Other income
773
467
Total income
151,855
188,455
Third party campaigns
Government grants
Gains on financial assets
Our individual donors
The Dutch people are generous and we are very grateful that
they donate in huge numbers and remember Cordaid in their
G4-4
wills through our labels: Cordaid Mensen in Nood (literally:
people in need) for disaster relief and resilience building;
Cordaid Memisa for healthcare programs; Cordaid Kinderstem
(literally: child’s voice) for Child & Education programs and
projects; Cordaid Microkrediet for microfinance; and Cordaid
Bond zonder Naam (literally: Nameless Association) to fight
poverty and exclusion in the Netherlands. The individual labels
have their own websites with topical information on actions
and events.
‘As a life-long supporter, I have decided to leave my estate to Cordaid
Memisa. I know much has changed over the years and that missionaries no longer travel distant regions on bicycles, but Cordaid Memisa still
has a personal involvement and commitment to local communities that
appeals to me. I feel that is important especially when otherwise my
estate would be fragmented over large numbers of relatives. Now, it will
have a clear and meaningful destination…’
Leo van Zelm, who has included Cordaid in his will.
Other spending
Cordaid could not implement and execute programs and projects
without the support of administrative, fundraising, campaigning and other essential activities in both our head office in
The Hague and in our country offices around the world.
Our non-program costs for fundraising in the Netherlands
are 17% of total income and within the maximum allowed (25%)
by the independent Central Bureau for Fundraising (CBF) that
oversees charitable organizations in the Netherlands.
In our search to build relationships and extend our reach into
the US, we have been fortunate in attracting a US Leaders’
Council composed of prominent individuals with an interest in
furthering the international relief and development efforts of a
leading global organization. This volunteer body plays a critical
role in raising awareness of Cordaid and its work within the
US. Behind their commitment is the powerful combination of
our focus on fragile and conflict-affected areas, our century of
experience, the global reach of our activity and our emphasis
on transparency.
MAY 2016 © CORDAID
31
G4-1
Our Strategy for the Future
STRATEGY FOR CONTINUITY
The context
In 2015, Cordaid had >1,200 programs and projects in 46 countries. Many of those projects were co-financed by the Dutch
Government’s MFS II program aimed at the Millennium
Development Goals (MDG) with funding until the end of 2015.
Cordaid had been organized and equipped to prioritize programming rather than funding needs. Human and financial resources
have been aimed more at program development than toward
generating income and diversification of donors. This is unsurprising as MFS and Cordaid’s success in attracting funds from
our own individual donors meant to some extent that value
propositions were supply driven. From 2016, Cordaid will be a
grant-seeker rather than a grant-giver. The challenge is formidable. We need to diversify our donor base drastically and acquire
new funding partners across the different donor segments:
Institutional Institutional Grant-making
Multilateral
Bilateral
foundation
Philanthropic
organizations
Private
sector
Private
Fundraising
Why fragility?
Cordaid’s mission remains the same: building flourishing
communities in the most difficult area of development
cooperation - fragile and conflict-affected situations (FCAS).
Why this difficult and high-risk focus? Today, around 1.2 billion
people, or 17 out of every 100 people in the world, live in
countries affected by fragility. In FCAS, fundamental human
needs go unsatisfied, women are unsafe and exploited, children
are malnourished and not in school, young people lack opportunities to build their own future, and communities are divided
and insecure. Poverty is increasingly concentrated in FCAS
– according to the World Bank, the UN and OECD, by 2030,
two-thirds of all poor people could be living in fragile situations.
If action is not taken now, global poverty will remain and
refugee and migration streams will continue to increase.
<$1,25/day
Total
7 billion
1.2 billion
FCAS
2015
2025
About 20% of the
1, 2
population live in FCAS.
2/3 of all poor people
live in FCAS.
Absolute poverty is
increasing in FCAS.
FCAS – Fragile and Conflict Affected Societies
1
2
32
Worldbank - http://www.worldbank.org/en/topic/fragilityconflictviolence/overview#1
OECD (2015), States of Fragility 2015
Theory of change
This is the working environment that Cordaid has made its own.
We know first-hand that fragility represents complex realities
and requires custom-built solutions. Fragility and poverty are
not just about material possessions. All authoritative bodies, such
as the World Bank, the African Development Bank and OECD,
confirm the importance of a combined focus on the income and
non-income dimensions of poverty. The MDG target to halve
extreme income poverty (less than USD 1.25 per day) overlooked
many other deprivations; those living in poverty certainly value
income, education and healthcare, but equally they want
freedom from fear and violence, social inclusion and honest
governance. The recently adopted Sustainable Development Goals
(SDGs) (UN, September 2015) reflect this recognition in concrete
terms. Cordaid’s FCAS focus dovetails closely with many of the
SDG through our income and non-income approach.
The fragility challenge
Cordaid works in different stages of fragile contexts, all of them
requiring specific approaches. When natural disaster strikes or
conflict erupts, there is an immediate need to provide those
affected with basic survival tools. Once those are met, humanitarian aid becomes the first step towards restoring broken
communities. It is the most logical starting point for an
integrated approach to much needed interventions in other
areas. An integrated approach for Cordaid means working to
put in place our three cornerstones:
▪▪ security and justice
Security systems that respond to vulnerable communities’
need for protection and justice – without these people and
communities lack the capacity to move beyond survival.
▪▪ governance and services
Public institutions have to be responsive to the needs of people
living in fragile contexts. This response ranges from granting
access to quality social services, such as healthcare and
education. By designing and providing services in a stable and
sustainable way, the social contract between people and
government is strengthened and government is legitimized.
▪▪ economic opportunities
Inclusive economic growth is a vital condition for reducing
fragility. It allows private and public sectors to function
in a way that means all can participate actively in healthy
economic activity. This requires capital to finance
entrepreneurs who will provide food, employment, health
and other services. People also need banking services, such
as savings accounts and insurance to cover setbacks.
Tough choices
During the reporting year, the shift in focus to the SDGs and
changes in the funding environment have meant that Cordaid
had to develop and implement a viable strategy that would
ensure continuity into the future. Tough choices had to be
made. Cordaid had to be right-sized in terms of organization
MAY 2016 © CORDAID
and personnel (see Our People) and we had to focus on those
activities where we could best deploy our expertise and
resources, both human and funding. This has meant we were
obliged to discontinue funding of certain programs and
projects and wind-down a number of partner relationships.
In terms of internal organization, we have moved from our
original 10 business units (BUs: Healthcare, Education,
Security & Justice, Food Security, Entrepreneurship,
Investments, Urban Matters, Women’s Leadership, Extractives
and Disaster Risk Reduction) to themes that bring together our
long-term expertise in a more integrated and efficient way:
Humanitarian aid, Healthcare, Economic Opportunities,
Education, Security & Justice, Resilience and Investments.
In this report we have covered the BUs as this approach best
reflects the (administrative and financial) year under review.
SWOT analysis
We started the strategic review with an incisive SWOT analysis
that maps our strengths, weaknesses, opportunities and
threats. This is what our SWOT looks like:
CORDAID’S STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
Strengths
Opportunities
▪▪ strong focus on fragile and conflict-affected contexts using a
▪▪ Sustainable Development Goals set clear global agenda to 2030;
multi-disciplinary approach based on long-standing,
professional experience in countries and a broad global and
local network (Caritas and partners);
▪▪ community-based and managed approaches and
implementing power;
▪▪ capacity to innovate and generate solutions and impact
through major, long-term systematic change across several
disciplines;
▪▪ availability of investment funds, enabling us to add value to
our products and programs and link up to innovative
financing for development;
▪▪ transparency (IATI, EITI) and open data to enable continuous
learning and co-creation;
▪▪ strong reputation as an innovative thought-leader with high
integrity, coherent principles and vast convening power;
▪▪ a firm base in Dutch society with close to 300,000 private
donors;
▪▪ membership of important Boards (Concord, CIDSE).
goals on financing of least-developed countries (LDCs) set in the
Financing for Development (FFD3) Action Agenda;
▪▪ Growing sense of urgency worldwide on tackling root causes
and consequences of conflict and fragility;
▪▪ Global for-profit sector more aware for environmental, social
and governance issues (ESG) – potential for partnerships and
innovative funding and instruments;
▪▪ Increasing importance of open-data driven transparency,
continuous learning and engagement with clients with a
view to co-creation;
▪▪ Growing demand for accountability on results and impact;
▪▪ New donors emerging, both institutional and private;
▪▪ Slowing of decline in support for large development
organizations by Dutch society with growing numbers of
individuals looking for engagement;
▪▪ New strategic partnerships with the Dutch government;
▪▪ Ability to reinforce multidiscipline programming and
linking relief to development for high value programming.
Weaknesses
Threats
▪▪ Perceived as grant-giving institution with related culture
▪▪ Less political support for social and economic development in
rather than implementing partner;
▪▪ Non optimized links between programs;
▪▪ Still building strategic and practical alliances/partnerships
to enhance programming power and fundraising capacity;
▪▪ Scattered and diffuse visibility of Cordaid Brand – both
proposition and awareness – represented by multiple
sub-labels.
Dutch parliament; and decreased budgets for overseas
development aid (ODA);
▪▪ Dutch budgets for overseas development aid (ODA) decreasing
while rising cost of the refugee crisis taken from ODA;
▪▪ Dutch development funds and decision-making transferred
to EU and European Commission redistributing aid budgets
to counter more ad hoc challenges;
▪▪ Grants and/or investments in fragile and conflict-affected
areas are high risk;
▪▪ Philanthropists and other private donors want to define
(at least the direction) how funding is used, making it more
difficult to attract unrestricted funding internationally,
hampering growth and innovation;
▪▪ Own contribution and restricted overhead recovery on large
institutional donor contracts;
▪▪ Inflated expectation among donors as to the role of the
private sector in solving financing for development,
especially in fragile and conflict-affected areas;
▪▪ International security-based thinking undermines
development budgets and security-related incidents/events
impact programs;
▪▪ Shrinking security and space for INGOs to operate in some
countries.
MAY 2016 © CORDAID
33
Based on our SWOT analysis, we have structured a strategy that
meshes with our deep expertise and knowhow but is also based
on the realities of future challenges in terms of programming,
fundraising, financial health and reputation. We have formulated a strategic framework for the coming years that will guide our
work and define all KPIs. Moreover, it is fully in line with nine of
the 17 Sustainable Development Goals (SDG) to 2030 that were
agreed by world leaders in September 2015.
We have selected nine as these are focused on areas where we can
increase specialization and impact. This is what that framework
looks like:
We strengthen our focus by:
▪▪ ensuring everything we do fits unequivocally with our
mission;
▪▪ prioritizing the top 21 fragile regions rather than the
current 46 countries;
▪▪ working on nine selected programs and products rather
than the 24 value propositions we had in 2015. This selection
is based on proven track record and reputation both in
fund-raising and execution. It looks like this:
We maximize the social impact of our work by:
▪▪ moving our programs/propositions/products to a maturity
level that enables us to realize innovations, large-scale
interventions and meaningful impact;
▪▪ broadening, growing and engaging our international and
local donors and investor base;
▪▪ increasing our expertise, experience, skills, competencies
and the diversity of our staff;
▪▪ building effective partnerships, positioning, funding
potential and by adding value to program quality and
implementation capacity;
▪▪ growing and strengthening our investment funds.
We reinforce our reputation by:
▪▪ excellent and demonstrable impacts;
▪▪ building a stronger Cordaid brand, endorsed by all our
consumer labels;
▪▪ a far-reaching use of open data and further linking up to the
open development movement;
▪▪ becoming a thought leader on building flourishing
communities in fragile contexts, both at international and
national level;
▪▪ reinforcing our evidence-based lobby and advocacy;
▪▪ continuing to enhance our relations, increase our
engagement with and grow our relevance to our donor base
and stakeholders in the Netherlands;
▪▪ combining fundraising and communications expertise into
issue-campaigning expertise;
▪▪ combining all online engagement expertise and reinforcing
our online outreach.
ALIGNING OUR PROGRAMS AND PRODUCTS TO THE SDGs
SUSTAINABLE
DEVELOPMENT
GOALS 2030
CORDAID
INVESTMENTS
ECONOMIC
OPPORTUNITIES
RURAL &
AGRICULTURAL
FUND
STABILITY
IMPACT FUND
HEALTH FUND
WOMEN
LEADERSHIP
INSTITUTE (WLI)
LOCAL FOOD
VALUE CHAIN
SEXUAL
REPRODUCTION &
HEALTH (SRH)
HEALTH SYSTEMS
STRENGTHENING
(HSS)
RBF HEALTH
SOLAR FOR
HEALTH
GOVERNANCE
AND SERVICES
RBF EDUCATION
UNLOCKING
YOUTH
POTENTIAL
FOOD SECURITY
NUTRITION
HEALTH
EDUCATION
BAROMETER
WASH
WASH
STRATEGIC
PARTNERSHIPS
AND
NETWORK
PARTNERS
BUILDING
DISASTER
RESILIENT
COMMUNITIES
URBAN
RESILIENCE
URBAN LINK
SHELTER2HABITAT
WOMEN
LEADERSHIP
INSTITUTE (WLI)
BAROMETER FOR
WOMEN
SECURITY
SECURITY
AND JUSTICE
HUMANITARIAN AID
HEALTHY WOMEN
AND GIRLS (HWG)
WOMEN
LEADERSHIP
INSTITUTE (WLI)
WATERSHOPS
N.A.
UNDERSTANDING
COMMUNITIES
4X4 JUSTICE
RBF
COMMUNITY
SECURITY
ARCHITECTS
TRUST BUILDING
SHELTER
PROTECTION
GIRO 555
GLOBAL INDEX
CLUSTERS
34
MAY 2016 © CORDAID
We enhance our funding activities by:
▪▪ managing our finances to enable building of reserves for
continuity and innovation;
▪▪ establishing and maintaining a result-oriented culture
based on openness, compassion, pride and determination.
G4-14
How we manage risk
A risk profile by country can be found on our website:
www.cordaid.org/en/countries. Furthermore, we have identified other risks over which we have some influence. These are
financial (see also Financial Statements, page 42), operational
and competence/cultural. More detail on risks and their
mitigation can be found on our website, www.cordaid.org.
Like all organizations, Cordaid is exposed to risk. Our international organization is big and complex. We operate in difficult
areas, which implies huge financial and reputational risks.
A solid risk management approach and structure are needed
to protect our work from these risks. Cordaid has chosen to use
of the three lines of defense model.
The revised strategy for the coming years takes the expanded
SWOT into account. An extensive analysis of related risks, our
risk appetite and how we identify, manage and mitigate those
risk is in the final phase of completion. It will be posted on our
website in late spring of 2016.
These three lines are:
1. Operational management, on a day-to-day basis, with
controls that are integrated into systems and processes. The
Control and Compliance unit has an important role in the
development of these systems and processes.
2. The second line is risk management and compliance
functions. As a single line of defense is often inadequate,
some specialized functions have been put in place, such as
a risk manager or a risk committee, compliance officers to
monitor specific risks such as noncompliance with
applicable laws and regulations, or for specific types of
compliance monitoring such as the health & safety, supply
chain (procurement), corporate social responsibility,
quality and controllers that monitor financial risks and
financial reporting issues.
3. The last line of defense is the internal auditors, who
provide assurance on the effectiveness of governance, risk
management and internal controls.
▪▪ Continue to enhance our local impact in fragile and conflictaffected areas, also by further improving administration,
finance, programming and reputation. Complete the
rationalization of our presence in certain countries and the
diversification of the type of presence. Attracting local
funding will be a priority.
▪▪ Further implementation of a streamlined and focused One
Cordaid to meet the challenges of the future. This includes a
fully integrated and more effective brand and communica
tion strategy, reinforced corporate culture and behavior.
▪▪ Further optimization of funding by broadening the donor
base to institutions, private foundations and individual
philanthropists.
▪▪ At least €26.25 million raised from individual donors in the
Netherlands.
▪▪ Maintain targeted tender success rate at 40%.
▪▪ Employee satisfaction >7, an aim that is especially important
given the great changes that have taken place in the
organization.
Organizational aims for 2016
Program-related risk
In light of our focus on the most dangerous regions of the
world – fragile states and conflict-affected areas – our program-related risks can be significant. We take all risks into
account when committing to a program or product. However,
the threat or presence of risk does not deter us from pursuing
our commitment to building flourishing communities because
we are convinced our work is vital. In practical terms, we have
in place comprehensive safety protocols for our personnel
working in high-risk countries. Safety training is always given
ahead of international deployment, a program that again
proved essential in 2015. We were again obliged to pull out our
team from the Central African Republic. In South Sudan our
offices were looted and two of our colleagues were shot. They
have since recovered and all teams were back in place by
year-end but on an ‘essential personnel’ basis only.
MAY 2016 © CORDAID
35
G4-9
OUR PEOPLE
OUR PEOPLE
The reporting year, 2015, was a transitional period for Cordaid’s
organization. During the period 2011 to 2015, Cordaid had
managed significant funding made available by the Dutch
government (MFS II) and aimed at the Millennium
Development Goals (MDG). The end of this kind of structural
co-funding through MFS II required Cordaid to make tough
choices. In terms of programs and projects and personnel, the
organization had grown to meet the needs of achieving the
MDG, with Cordaid often acting more as a grant-giver than a
grant-seeker. With future funding less certain, Cordaid began
transforming to a grant-seeker as early as 2013.
At the same time, Cordaid also began structuring the organization to meet the challenges of the post-MDG working
environment. The final phase of that right-sizing was carried
out during the reporting year. This was crucial so that Cordaid
could ensure the continuity of its programs and projects as an
integrated, flexible organization that is open to the development of new skills and behaviors.
Organizing for the future
The goal has always been to ensure continuity and effectiveness with specific focus on the most fragile and
conflict-affected areas. This focus is well in line with the
Sustainable Development Goals determined by the United
Nations in the fall of 2015. Throughout 2015, Cordaid and the
Human Resources team, has been engaged in creating and
embedding an organizational structure that meets future
needs and reflects future realities (see also the section on
Strategy that outlines Cordaid’s new focus). The process of
analyzing and ultimately building the right organizational
structure started at the beginning of 2015. The HR team
prepared a structured process. It was based on the premise that
without a clear process people would feel more anxious, morale
would not be at the high levels usual at Cordaid, and a process
would be more useful for the Works’ Council. This was always
going to be a challenging year. The process structure was
communicated in the early part of the year, informing personnel about what needed to happen and why. Obviously, the most
difficult issue for most colleagues was the essential reduction
in head count. At the same time, Cordaid people are well-educated professionals and the need for change and refocus of
resources was well understood. The majority of peer NGOs are
going or have gone through similar exercises.
THE NEW ORGANIZATIONAL STRUCTURE
Supervisory Board
Board
Management Team (MT)
Board
secretariat
CEO
CFO
HR
Positioning,
communication
& engagement
(PCE)
Country
offices
Media
Strategy
Security
officer
Brand
Management
& Traffic
Directors
of all ‘A’
country
offices
Advice &
Projects
Online team
Directors &
Reps of all ‘B’
countries
Programming
Strategy,
innovation &
funding (SIF)
Investments
Control &
compliance
Programs
Institutional
funding
Investment
management
Accounting &
financial
administration
Cordaid NL
Private
funding
Investor
relations
ICT &
Facilities
Strategy/
advocacy/
Open
Development
Mid- and
Back Office
Humanitarian
aid
Back Office
Quality
assurance
Program &
management
assistants
36
MAY 2016 © CORDAID
OUR PEOPLE
HEAD OFFICE
COUNTRY OFFICES
Number of FTEs 1-1-2016
186 (2015: 256; 2014: 247)
254 (2015: 254; 2014: 238)
Number of employees
197 including MFS II closing team, thereafter 175
254 (2015: 254; 2014: 49)
1-1-2016
(2015: 266; 2014: 282)
Composition staff:
2015: 62% F (165 employees) / 38% M (101 employees)
2015: 28% F (14 employees) / 72% M (36 employees)*
2014: 65% F (183 employees) / 35% M (99 employees)
2014: 26% F (13 employees) / 74% M (36 employees)*
Senior positions
2015: 38% (100 employees out of 266 in total) / F 28%
2015: 88% (44 employees) of which 12 employees F (27%)*
(salary scale 11+)
(62 employees out of 165) / M 38% (38 employees out of 101)
2014: 100% (49 employees)*
2014: in total 46% (131 employees out of 281 in total) / F 40%
(74 employees out of 183) / M 57% (57 employees out of 99)
* excludes local hires
AGE RANGE*
NATIONALITIES*
60
250
50
200
2%
10%
32
40
150
249
26
ia
Am
co eri
un can
tr
ie
s
tr
un
As
s
ie
a
n
co
n
er
th
13
8
*excludes local hires
EDUCATIONAL LEVEL (ALL EMPLOYEES)*
10%
2%
33%
1
>66
Academic education
H
igher professional education
Lower Vocational education
Secondary education
O
pe
ro
Female
Eu
Male
ad
>66
ca
56-60 61-65
an
46-50 51-55
U
36-40 41-45
an
26-30 31-35
29
2
14
ri
12
0
Af
1
/C
11
SA
11
ch
21-25
21
15
ut
<21
25
D
0
23
U
23
10
0
55%
50
12
8
33%
15
15
4
1
1
100
ni
on
Eu
r
co op
un ea
tr n
ie
s
20
12
ti
30
La
20
33
55%
Defining, analyzing and preparation
The first step was to analyze the current structure, the financial situation and current strategy. Starting points, guiding
principles, goals and results were formulated ahead of the
preparation phase that launched in the spring of 2015. By
working systematically through the structural options,
working groups created a proposed design that included how
Cordaid would be organized, what specific jobs would involve,
job descriptions and relevant training. Ultimately and following extensive dialogues with management and staff (the latter
specifically through interaction with the Works’ Council)
Cordaid opted for a functional organization.
Implementing the new structure
From mid-2015, the implementation phase began to right-size
Cordaid through a tightly orchestrated process. Upon completion at the end of 2015, Cordaid continues its focus on fragile
and conflict-affected regions. However, we reduced the number
of focus activities to those that have proved to have the most
impact and the number of countries where we work from
46 to 22. This changed business model requires a new way of
working: more flexibility, new skills and behavior.
MAY 2016 © CORDAID
37
OUR PEOPLE
Future-proofing
As part of the right-sizing process, during 2015, Cordaid also
put in place an integrated and integral Human Resources
policy. As part of this shift and to increase flexibility in
(international) deployment, Cordaid people will have the same
labor and employment conditions wherever they are based.
However, there are extra facilities (such as housing, hardship
allowance, cost of living allowance) for expats in order make it
possible to work abroad.
Training and career development
Training remains high priority at Cordaid. In line with
organizational shifts and focus, essential skills will be defined
and educational programs developed for all personnel. During
2015, around 165 or about 80% of all staff members participated
in various educational programs, including language courses
and Cordaid’s theory of change. Experts in Open Data gave
‘train the trainers’ courses and workshops to colleagues and
partner organizations in Burundi and Uganda.
Three main focus points have been identified, all related to and
contributing to the successful execution of Cordaid’s strategy.
These are:
Health & Safety
For personnel in the Netherlands, Cordaid meets all regulatory
requirements on health and safety relating to the workplace.
Our expats at international offices and colleagues who travel
regularly have frequent medical checks specifically designed
for their work place. On safety, we have comprehensive safety
protocols in place and dedicated plans for each individual
country where we work. We have a Safety, Security and Crisis
Committee and a Safety Advisor that develop related policies,
oversee their implementation and manage crises. These can
include evacuations. Safety training is always provided ahead
of international deployment and travel and for visiting staff,
with refresher courses every two years.
One integrated Cordaid, one staff
▪▪ One HR system for all personnel;
▪▪ One set of labor conditions. This structure has already been
put in place and will be further elaborated into the future;
▪▪ One team, more diversity;
▪▪ One labor policy.
Flexibility
▪▪ Flexible labor (shorter-term, diversity, geographic
flexibility);
▪▪ Flexible working (roles rather than ‘positions’, not confined
to a single ‘department’);
▪▪ Flexible working methods (projects).
New skills and behavior
▪▪ Development of necessary skills;
▪▪ Development of organizational culture of cooperation, cost
awareness, innovation, and motivational attitudes such as
company pride and sharing;
▪▪ Development of efficient processes.
These components have been incorporated into a number of
deliverables in the Business Plan for 2016. A report on progress
will be included in the 2016 Annual Report.
Flexible working
Work on a number of practical components had already started
before the organizational restructuring was launched. In 2014,
Cordaid began a ‘New Workplace’ pilot for about 80 participants
or 25% of our colleagues in The Hague and including the Board
of Directors. The aim was for our people to have a so-called
activity-related workplace rather than fixed offices. The idea is
to provide a more inspirational working environment and to
reduce the amount of office space needed, also as part of
reducing environmental footprint. The lessons learned here is
that less work places/square meters than originally anticipated
are needed. However, our people expressed a need for more
‘quiet spaces’ and these have been added so that people can
concentrate without distractions. Working more from home is
also an option although people seem to prefer to work in the
office. At year-end 2015, 54% of Cordaid people in The Hague had
moved to ‘new workplace’ environments.
38
Monitoring health
The Human Resources (HR) team is responsible for developing
and monitoring policy on working conditions. The results and
plans for the current year are reported annually to the Board of
Directors. Every two weeks, the ‘Cordaid company physician’
visits us to give advice to both employees who are absent due to
illness and to managers on how to monitor this process. Such
dialogues are part of the established process of helping staff
return to work, usually involving a so-called reintegration
process. Our goal is to keep absenteeism due to illness to below
3.5%. We are gratified to report that the average for 2015 was
stable and well below our target at 3% (2014: 3.02%).
What our people say
Communication is a key factor in all our activities and is even
more important during this transitional period. Cordaid has its
own intranet, ‘Coconut’, that is accessible for all personnel,
both in the Netherlands and around the world. ‘Policy weeks’
are organized regularly for colleagues from Country Offices and
management so that they can meet and discuss developments
and issues with personnel in the Netherlands. ‘Cordaid
Mornings’ are regular meetings for all staff and are well
attended. They are used to provide feedback on topical issues
and to inform staff on important issues. Normally, Cordaid
carries out regular randomly-sampled staff surveys. In 2015 the
dialogue on the organizational transition was so intense and
frequent that no formal surveys were carried out. However,
standard practice is to tackle minor issues emerging from
surveys immediately. Larger points can take more time to
resolve. Action to be taken is also posted by the Board of
Directors on the intranet. All personnel in The Hague are also
represented by an active and committed Works’ Council. It
meets at least twice a year with the Chairman and a member of
the Supervisory Board and has regular meetings with the CEO.
Cordaid’s Works’ Council provides major input on a variety of
topics and has been closely involved in the planning and
implementation phases of our ongoing transition.
MAY 2016 © CORDAID
SUPERVISORY BOARD REPORT
For Cordaid, 2015 was a period of profound change. At the end
of the reporting year, in some respects Cordaid was a different
organization than it had been at the start of 2015.
As Cordaid's Supervisory Board (SB), we can look back on a
well-managed and successful transition.
The year under review
At the start of the reporting year, Cordaid set a strategic aim:
‘at the end of 2015 the organization will be ready for a future
without the Dutch co-funding framework (MFS II)’. The
Supervisory Board (SB) is gratified to report that the essentials
required to achieve this aim had been put in place within the
timeline. At the end of 2015, the SB had reviewed and ultimately approved a clear plan for a future in profoundly changed
circumstances. The SB has overseen every aspect of this new
strategic approach. It has proved a demanding task especially
for the organization itself, its activities, financials and personnel. The challenge going forward relates to the main characteristic of the new strategy presented by the Board of Directors
(BoD) to the SB for approval: Cordaid must focus. This can mean
focus on specific countries. But also on the kind of activities
the organization undertakes based on the presence of qualifying expertise within Cordaid before competing for funding.
Hard decisions had to be taken. That is why it has reduced the
number of countries where it operates to 22 from 46. Activities
have been streamlined and, in some cases, integrated into the
One Cordaid approach that aims to stimulate an even more
focused approach to work on specific issues. Some activities
have been discontinued. There have been consequences for
those whose jobs could not be continued but also for those who
remained and have taken on new tasks and responsibilities.
Focus and flexibility
In spite of all the measures taken to prepare the organization
for what can only be described as a very different future
operating environment, ‘focus’ is still no absolute guarantee of
continuity. So it was essential to incorporate another element
into the new strategy and organization: flexibility. This is
imperative for the future of development cooperation itself and
most obviously for disaster relief. In this respect, it is extremely
helpful that some funders are still willing to provide donations
without preconditions. This contributes to the organization’s
ability to cover overhead costs and most importantly to
Cordaid’s ability to work flexibly. Priorities can change for
many reasons. The goals of a funding organization on which
Cordaid is dependent can shift. Situations in countries can
deteriorate making their need more urgent or obliging Cordaid
to discontinue activities. The uncertainty of what lies ahead
demands flexibility. With the new strategic plan, Cordaid is
much better placed and more equipped to address the challenges of the new development cooperation reality. For the SB,
the quality of the people, both in The Hague and in the country
offices, also gives hope for the future. Although fewer in number,
Cordaid is made up of committed and very professional men
MAY 2016 © CORDAID
and women who are able to deal with the needs of the time.
Although guaranteed funding is less than in previous years,
there are clear indications that cooperation with partner
organizations, such as Caritas Internationalis, CIDSE and
others, will ensure Cordaid is just as effective in its focus on
programs in fragile and conflict-affected countries.
Quality of supervision
Proper supervision of the changes in the financial, organizational and social working environment is a priority for the SB.
In 2014, this perception had already led to a review by the SB of
its approach to supervision. The SB takes the view that its
involvement should not be limited to monitoring financials
and organizational issues at given times of the year. Its role is
to monitor activities and the longer-term horizon. So super
vision should take the form of ongoing and comprehensive
monitoring of Cordaid’s continuity. During 2015 and based on
the supervisory backdrop and context that financial, organizational and social change has created, the SB has been proactive
in pursuing a relevant and appropriate supervisory model that
is more a continuous process than a periodic snapshot at key
times of the year.
Composition of the Supervisory Board
The SB comprised nine members until mid-2015 when Karien
van Gennip stepped down. We are very grateful for her seven-year commitment and contribution to Cordaid. We are just
as grateful to Susana Menendez who left the board at year-end
2015 after four years of service. Theresa Fogelberg had stepped
down at the start of 2015 according to rota. Our thanks to her
as well. Brigit van Dijk-van der Reijt joined the SB on January 1,
2015. The SB’s full profile is published on the Cordaid website.
In line with this profile, all members have specific experience
relevant to our activities. The SB’s composition is diverse
in terms of gender. Four of the nine members are women
(for full biographies of all SB members, please visit our website:
www.cordaid.org/organization). From 2013, SB members are
appointed for a maximum of two four-year terms.
Practical supervision
The SB comes together at least six times a year at prescheduled
meetings and additional formal meetings can be convened if
deemed necessary. Between meetings, there is significant
informal communication between SB members and the BoD;
the SB Chair and the CEO have regular monthly contact. This
enables SB members to remain up to speed on developments as
they occur and gives them the thorough information they need
to give approvals for action where needed. In 2015, the SB met
seven times and attendance at prescheduled meetings was 80%
(2014: 90%). The BoD is tasked with providing full information
to the SB so that it can carry out its supervisory responsibilities. Information and reporting flows to the SB are managed
by the BoD based on the CEO’s organizational responsible for
Cordaid’s staff departments and the COO (until September) and
39
CORDAID’S SUPERVISORY BOARD
BOARD MEMBER
APPOINTED
RETIRING
ELIGIBLE FOR
REAPPOINTMENT
Ernst Hirsch Ballin
(chairman)
2013
2021
2017
Karien van Gennip
(vice-chair until
15/7/2015)
2008
2016
-
Susana Menendez
2011
2019
2015
Kees Zevenbergen
(vice-chair from
15/7/2015)
2011
2019
2015
✔
✔
Michel van de
Coevering
2011
2019
2015
✔
✔
✔
Jolanda van Bussel
2013
2021
2017
Maarten van Beek
2014
2022
2018
Sjaak de Boer
2014
2022
2018
Brigit van Dijk
2015
2023
2019
AUDIT
COMMITTEE
REMUNERATION
COMMITTEE
DEVELOPMENT
COOPERATION
✔
✔
✔
JUSTICE/
HEALTHCARE
Supervisory Committees
The SB has established two permanent committees: the audit
and remuneration committees. If deemed appropriate and
useful, the SB also appoints temporary ad hoc committees for
specific purposes. The Audit Committee consists of three SB
members, two of whom have specific financial expertise – for
membership, see the table. The Audit Committee’s task is to
review annual and quarterly financial and audit statements
and performance against annual budgets. Subsequently these
are discussed and evaluated by the full SB. Recurring topics for
this committee include:
▪▪ audit plans and budgets;
▪▪ internal audit reports;
▪▪ continuity reserve policies and plans;
▪▪ guarantees and participations; and
▪▪ quarterly and full-year financial performance against
budgets.
The Audit Committee met three times in 2015 according to a
prearranged schedule, including one meeting with the
external auditors. The Remuneration Committee reviews policy
and advises the full SB on executive compensation and related
issues, including appointments. This committee met once in
2015. A temporary committee of three SB members and the CEO
was set up to develop the CFO profile, select and interview
candidates. Following full SB review, this resulted in the
appointment of Willem Jan van Wijk in September 2015.
He is a senior Dutch finance professional with an extensive
background as controller and financial director of both corporate
organizations, such as Shell and TNT, and development projects.
WOMEN’S
ISSUES
SUSTAINABILITY
(CLIMATE
CHANGE)
✔
✔
✔
✔
✔
CFO’s (from September) same responsibility for the Business
Units (BUs) and Marketing & Funding. Where relevant, heads
of departments or BUs present information directly to the SB.
As in 2014, during 2015 the SB requested regular updates on
particular topics at each prescheduled meeting. Specific focus
topics throughout the reporting year included developments
on the Ebola pandemic; the situation in Burundi and South
Sudan; and developments on the structure of Cordaid’s
Investment activities. However, the main recurring topic was
the development of Cordaid’s new strategy, including the Plan
to 2018 and the implications for both the organization itself
and the work it undertakes in fragile and conflict-affected
areas around the world (see above).
40
(INTERNATIONAL)
FINANCE/
ECONOMICS
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
As CEO of Shell Solar he started a rural electrification project for
50,000 homes in South Africa using autonomous solar systems.
He is also a board member of Bio Energy Resources Ltd., a
company in Malawi that produces sustainable biofuel from
Jatropha with a network of small-scale subsistence farmers.
Cordaid’s Chief Operating Officer, Henri van Eeghen left the
organization in September 2015 to take up a new challenge. We
are grateful for his contribution to Cordaid over the almost six
years of his tenure and wish him every success in his new role.
Remuneration at Cordaid
Cordaid has a remuneration policy for executives that is
evaluated and reviewed periodically by the SB, most recently in
2013. Current policy adheres to and is in line with the recommendations of the Association of NGOs and Charitable
Organizations (VFI) and well within the Wijffels Code and
Normalization of Top Incomes Act (WNT) parameters.
Remuneration of executive directors (BoD) is fully compatible
with VFI and Wijffels Code recommendations and is based on a
point-based weighting system that sets a maximum for each
director. According to policy, remuneration consists of a gross
salary, holiday allowance, social security contributions and
pension-cost expenses. In 2015, salaries paid to executive
directors amounted to €250,615 (2014: €243,075). Full details
can be found on page 42 the Annual Financial Statements. Staff
remuneration is governed by the Cordaid Conditions of Employment that also stipulates labor conditions. This Regulation
includes salary scales for specific roles and responsibilities within
the organization. The Eprom format is used for job descriptions;
these are weighed by external experts and allocated to a salary
scale. Cordaid is competitive in terms of working conditions and
compensation compared to the overall NGO sector; we apply VFI
guidelines to remuneration policy for the entire staff.
Remuneration of the Supervisory Board
All SB members donate their time and expertise. They receive
no remuneration for their work for Cordaid. Out-of-pocket
reimbursement of expenses is made to cover the cost of
attendance at meetings and travel although a number of SB
members also donate these to Cordaid. During 2015 and to
further improve transparency, the SB decided these costs
should be specified and published. In 2015, total SB-related
costs and travel expenses incurred were €11,029, of which
€2,437 can be considered reimbursements to SB members.
MAY 2016 © CORDAID
HOW WE ARE GOVERNED
HOW WE ARE GOVERNED
Cordaid’s funding comes from government grants, institutional funding and donations from private individuals. As the
recipient of public funds and the trust of hundreds of thousands
of individual donors, we have a clear duty of care. Moreover,
as governance is one of the cornerstones of everything we do,
Cordaid itself must be accountable. We must ‘practice what we
preach’. That is why governance is so important for Cordaid.
About Good Governance
G4-15
Good Governance covers how we are managed, how we are
supervised, how we work with constituents and how the
interests of those constituents are taken care of. Cordaid’s
governance is based on a two-tier system, with a Supervisory
Board (SB) overseeing the Board of Directors (BoD). Moreover, we
have in place an International Advisory Panel that supports
Cordaid’s strategic development and how we pursue our vision
and mission. Our governance is described in full in the Articles
of Association and in the Good Governance Code (both can be
found in Dutch and English on our website: www.cordaid.org/
governance). Cordaid has also received the Dutch Central
Bureau of Fundraising seal of approval that monitors fund
raising organizations and incorporates the so-called Wijffels
Code of Governance for NGOs and charitable organizations
– our certification was valid through 2015.
Codes of Conduct & Quality Standards
G4-56
Our staff adheres to a number of Codes of Conduct (please see
www.cordaid.org/codesofconduct) that set clear guidelines for
how we behave and interact with other constituents and our
working environment. The Code of Conduct was evaluated and
revised most recently in July 2013 and is applicable to everyone
who works at Cordaid. We also have in place policies and codes
on anti-corruption and sexual abuse. In terms of our social
responsibility, Cordaid has a CSR policy, updated most recently
in August 2014, and carries out an ISO 26000 self-assessment
every year In 2015, the Partos 9001 requirements were tested
at the same time. Partos is the Dutch association of NGOs
working in development cooperation. Cordaid has now received
the Partos 9001 seal of approval. From 2014, we have been
gradually moving to CSR accountability according to the Global
Reporting Initiative’s version 4.
MAY 2016 © CORDAID
Whistleblower Code
Cordaid adheres to the Whistleblowers’ Code. We encourage
and value any reports of suspected irregularities and there is a
clear and confidential reporting line. Employees who make
reports in good faith are guaranteed confidentiality and their
position shall not be disadvantaged as a result. We have a
counselor structure in place and both the Chief Executive
Officer and Chair of the Supervisory Board can be approached
directly with reports. Employees receive written feedback on
any report within eight weeks. Furthermore, Cordaid has a
well-established Code of Behavior. Three colleagues have been
designated as counselors who can be approached if employees
feel they have treated unfairly. The counselors act as confidential intermediaries.
Accountability
In line with our adherence to Central Bureau for Fundraising
(CBF) best practice and requirements, we report annually on
‘accountability’. In fact, this whole annual report is about our
accountability: what are we doing, where, why, with whom,
and how are we trying to get the best results and continuously
improve our outcomes and impacts. That is why we think that
the following quick-reference guide to the three guiding
principles of the CBF accountability report will be most useful
to readers:
▪▪ Governance: see page 41.
▪▪ Effectiveness of our programs: see pages 6 to 22.
▪▪ Stakeholders and our communication with them:
throughout the report, but especially see pages 22, 23 to 29,
and 38, including our pioneering ‘open data’.
41
FINANCIAL STATEMENTS
CONTENTS
annual accounts 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Balance sheet as of December 31, 2015 (after proposed appropriation of funds). . . . . . . . . . . . . . . 44
Statement of income and expenditure for the year ended December 31, 2015. . . . . . . . . . . . . . . . . 45
Appropriation of funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Performance indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Cash flow statement for the year ended December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
notes to the balance sheet and statement of income and expenditure . . . . . . . . . . . . . . . . . . . . . . 49
other information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Provision in the constitution governing the appropriation of balances. . . . . . . . . . . . . . . . . . . . . . . . 80
Appropriation of result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Country offices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Subsequent events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Independent auditor’s opinion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
42
MAY 2016 © CORDAID
CORDAID’S 2015
FINANCIAL
STATEMENTS
ANNUAL ACCOUNTS 2015
Introduction
Cordaid, the Catholic Organization for Relief and Development
Aid, has been providing emergency relief and fighting poverty
and exclusion in the world’s most fragile and confl ict-affected
situations for more than a century. All our actions are rooted
in and inspired by Catholic social teachings: human dignity,
solidarity, subsidiarity and care of the common good. Based on
these points of departure, we have added social and economic
justice and the promotion of peace to help us achieve in our
mission: building flourishing communities.
These fi nancial statements reflect a detailed accounting of
Cordaid’s activities in 2015 that are described in the previous
sections of this annual report. The annual accounts are an
integrated part of Cordaid’s annual report.
The reporting year was a transistional period for Cordaid.
The ending of the Millennium Development Goals and related
co-fi nancing system (MFS II) of funding from the Dutch
government to achieve them has led Cordaid to review its
activities and organizational structure. The new development
landscape without MFS II prompted Cordaid to drastically
restructure its activities and reduce its workforce by approximately 30%. At the same time, as it transitions from grant-giver
to grant-seeker, Cordaid is now challenged to fi nd new sources
of funding while ensuring MFS II activities are properly
fi nalized and projects still in progress are funded by other
donors. The related transitional phases determined for 2015
were implemented according to plan - all with the continuous
ambition of building flourishing communities in the most
fragile areas of the world.
Total income in 2015 stands at €151.9m, a decrease of €36.6m
compared to the previous year, due primarily to the decline in
MFS II income. Unfavorable macroeconomic factors for our
investment portfolio and a one-time write-off on outstanding
loans are the main reasons for lower income from fi nancial
assets.
MAY 2016 © CORDAID
Overall spending on objectives amounts to €145.6m. Th is is
€27.1m lower than in 2014. The larger share of this decrease is
due to lower spending on MFS II activities in 2015. Higher
spending on emergency programs in the Dutch Relief Alliance
(established in April 2015) partially compensated for the lower
spending on MFS II activities.
Costs of generating funds amount to €6.1m, which is €1.0m
lower than in 2014 and budget. During the year and given the
fact that project income would be below budget, placing the
budgeted fundraising percentage at risk, it was decided to
reduce spending on own fundraising.
Management and Administration costs grew from €4.2m in
2014 to €5.0 in 2015 (budget: €4.4m). The increase is due to the
addition of a €2.4m redundancy provision that has been partly
allocated to costs for management and administration.
The Statement of Income and Expenditure shows a negative net
balance of €4.7m. The negative balance is caused by a one-off
addition of the €2.4m redundancy provision, a net negative
result on the Loans and Guarantees fund of €0.6m, and €1.7m
in organizational costs not covered by organizational costs
allowances on donor contracts and income from fundraising.
An amount of €1.4m of uncovered organizational costs was
budgeted as negative balance for 2015.
Looking ahead and in terms of income and recovery of organizational costs, the fi nal phasing out of MFS II at year-end 2015
can currently only be partially offset by alternative funding.
Th is will put pressure on future fi nancial stability.Maintaining
expenditure on and quality of objectives (programs and
projects) means Cordaid still faces a very challenging task in
increasing income and recovering costs in the near future.
The Hague, May 25, 2016
43
3
CORDAID’S 2015 FINANCIAL STATEMENTS
BALANCE SHEET AS OF DECEMBER 31, 2015
(after proposed appropriation of funds)
X € 1,000
NOTE
DEC/31/2015
DEC/31/2014
Assets
Fixed assets
Tangible fixed assets
5
1,283
1,345
Financial fixed assets
- Issued in connection with the objectives
6
55,279
- Investments
7
19,825
52,179
35,024
75,104
87,203
96
411
Current assets
Stocks for emergency aid
8
Receivables
9
- Subsidies governments / organizations
22,593
- Receivable from legacies
- Other receivables
- Interest receivables
Cash and Bank
5,395
5,251
1,772
1,308
753
1,354
10
Total assets
X € 1,000
NOTE
46,321
30,513
54,234
73,128
67,680
180,124
210,873
DEC/31/2015
DEC/31/2014
Liabilities
Reserves
11
- Continuity reserve
9,875
12,275
- Earmarked reserves
8,795
10,915
- Other reserves
1,283
1,345
19,953
Funds
24,535
11
- Restricted funds
1,470
3,979
- Semi-restricted funds
8,859
5,798
- Loans & guarantees fund
93,323
Provisions
12
Non-current liabilities
13
- Project commitments
Current liabilities
93,964
103,652
103,741
2,456
1,269
1,176
474
13
35,155
54,853
- Other current liabilities
17,732
26,001
Total Liabilities
44
4
52,887
80,854
180,124
210,873
MAY 2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
STATEMENT OF INCOME AND EXPENDITURE 2015
X € 1,000
NOTE
2015
BUDGET 2015
2014
Income
- Own fundraising
15
26,750
28,983
- Third party campaigns
16
12,414
14,908
25,844
11,055
- Government grants
17
109,573
104,924
138,917
- Gains on financial assets
18
2,133
3,342
8,655
- Investment income
19
211
0
3,517
- Other income
20
773
Total incoming resources
1,350
151,855
467
153,507
188,455
Resources expended
Spent on objectives
- Program costs:
21
Healthcare
56,854
56,932
68,584
Child & education
5,394
7,003
7,313
Disaster response
41,929
24,608
26,346
5,554
7,688
9,345
Extractives
3,612
5,366
6,226
Security & justice
5,557
4,443
12,122
Entrepreneurship
1,711
4,891
3,967
Women’s leadership
Urban matters
2,273
2,811
2,074
Cordaid Netherlands
12,184
11,181
12,195
Investments
2,650
4,755
7,769
Food Security
3,198
8,221
11,613
4,561
5,395
5,743
-4
0
-734
- Public information / awareness campaigns
- Other expenditure
145,473
143,294
172,563
Cost of generating funds
- Cost of own fundraising activities
22
4,561
5,395
- Cost of securing government grants
22
538
745
5,789
552
- Cost of obtaining income from 3rd party
campaigns
22
898
900
730
- Investment Costs
22
90
140
53
6,087
7,180
7,124
4,966
4,447
4,197
156,526
154,921
183,884
-4,671
-1,414
4,571
7,195
PM
13,144
Management and administration
Management and administration cost
Total resources expended
Balance of funds
TBD: Reuse of resources from loans and guarantees fund
MAY 2016 © CORDAID
22
45
5
APPROPRIATION OF THE FUNDS
The funds were appropriated as follows:
X € 1,000
FOR THE YEAR ENDED
DECEMBER 31, 2015
FOR THE YEAR ENDED
DECEMBER 31, 2014
Reserves
- continuity reserve
- other reserves
- earmarked reserves
-2,400
0
-62
446
-2,120
183
-4,582
629
Funds
- restricted funds
- semi-restricted funds
- loans & guarantees fund
Income from operating activities
6
46
-2,509
-2,796
3,061
-3,230
-641
9,968
-89
3,942
-4,671
4,571
-4,671
4,571
MAY 2015
2016 © CORDAID
CORDAID’S 2015
FINANCIAL
STATEMENTS
PERFORMANCE INDICATORS
In 2015, the following performance indicators were derived from the statement of income and expenditure:
PERFORMANCE INDICATORS
2015
BUDGET 2015
2014
- Income-to-spending ratio (% charitable activities vs. total incoming resources)
95.8%
93.3%
91.6%
- Program-to-spending ratio (% charitable activities vs. total resources expended)
92.9%
92.5%
93.8%
- Program management cost ratio (% program management cost vs. total program costs)
10.0%
8.5%
7.6%
4.0%
4.7%
3.8%
18.0%
30.1%
43.6%
- Own fundraising ratio (% cost of own fundraising activities vs. own fundraising)
17.1%
18.6%
22.4%
- Management and administration ratio (% vs. total resources expended)
3.2%
2.9%
2.3%
- Fundraising ratio (% cost of generating funds vs. total incoming resources)
- Dependency on MFS II grant (% MFS II vs. total income)
▪ Income-to-spending ratio: 95.8%. Th is is higher than in
2014 (91.6%) and budget (93.3%). The main factor is the
spending of remaining balances in various prior-year funds
and additional funding for emergency projects resulting in
significantly higher expenditure in this area as well.
▪ Program-to-spending ratio: 92.9%. Th is ratio is marginally
above budget, but slightly below 2014. Total organizational
costs remained stable compared to 2014, while to
expenditure on objectives (programs and projects) decreased
due to the slowdown in MFS II activities in 2015.
▪ Program management costs ratio: 10.0% (budget: 8.5%).
Cordaid insists on maintaining this ratio as an efficiency
indicator, while the format of the Accounting Guideline 650
for Charities does not show direct program costs and
program management costs separately. Cordaid considers
this an important efficiency ratio. The program management
costs in 2015 were above budget, mainly due to the costs of
the reorganization announced in 2015, while direct program
costs were in line with budget. Compared to 2014, program
management costs increased, while direct program costs
decreased. The slowdown of activities for MFS II-funded
projects resulting in lower direct program costs. As all MFS II
activities still have to be fi nalized and reported properly,
program management costs could not yet be reduced.
MAY 2015
2016 © CORDAID
▪ Fundraising ratio: 4.0% (budget: 4.7%). The improvement in
this ratio compared to budget is the consequence of lower
spending on own fundraising and higher income from
government grants than budgeted. The drop in total income
compared to 2014 explains the higher ratio compared to
2014.
▪ Own fundraising ratio: 17.1% (budget: 18.6%). The ratio is
below budget as a consequence of the savings made in costs
of own fundraising, amply offsetting the decline in income
from own fundraising.
▪ Dependency on MFS II grant: 18.0% (budget: 30.1%). The
share of income in Cordaid’s total income sharply decreased
as activities were being wound down towards the end of the
MFS II period.
▪ Management and administration ratio: 3.2% (budget 2.9%).
The Management and administration cost was above budget
mainly as a consequence of the creation of the redundancy
provision, while other expenditures were mainly in line
with budget.
47
7
CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015
X € 1,000
NOTE
2015
2014
Cash flows from operating activities
Incoming resources
15-20
151,855
188,455
Resources expended
21-22
156,526
183,884
-4,671
4,571
Adjustments for:
- depreciation fixed assets
5
391
403
- changes in provisions
12
1,187
-507
1,578
-104
Changes in working capital:
- Stocks for emergency aid
8
315
-59
- Receivables
9
23,721
-16,604
- Financial fixed assets (connected to the objectives)
6
-3,100
-11,274
13
-18,996
9,000
- Investments
7
15,199
2,770
- Other current liabilities
13
-8,269
6,956
Cash flows from operating activities
8,870
-9,211
5,777
-4,744
Cash flows from investing activities
- Purchases of tangible assets
5
-329
Cash flows from investing activities
-849
-329
-849
Cash flows from financing activities
Receipts / repayments of long-term borrowings
0
Cash flows from financing activities
Net increase/decrease in cash
0
0
0
5,448
-5,593
The movement of cash and cash equivalents is as follows:
X € 1,000
Balance at January 1
Changes
Balance at December 31
8
48
2015
2014
67,680
73,273
5,448
-5,593
73,128
67,680
MAY 2015
2016 © CORDAID
CORDAID’S 2015
FINANCIAL
STATEMENTS
NOTES TO THE BALANCE SHEET AND STATEMENT
OF INCOME AND EXPENDITURE
1. GENERAL NOTES
1.1 Activities
Rooted in the tradition of Catholic Social Teachings, Cordaid
seeks to bring about a sustainable world and offer humanitarian
aid through professional and efficient international development
cooperation. Cordaid focuses on sustainable development
relationships with partner organizations globally, regardless of
faith, origin or political convictions. From this point of departure,
Cordaid works in the fields of healthcare, disaster risk reduction,
security and justice, education, economic opportunities, the
provision of public information, lobbying and fundraising.
Cordaid is open to cooperation with like-minded organizations.
G4-4
G4-3
G4-17
Cordaid is a foundation. Its objectives as described in its Articles
of Association (translated from the Dutch) are as follows:
‘In accordance with the evangelical message and inspired by the Catholic
community in the Netherlands, the purpose of the foundation is to carry out
activities focussed on:
a. providing emergency and refugee aid;
b. providing aid to specific groups, such as the elderly, the disabled and
children;
c. providing medical aid; and
d. all aspects related to structural poverty relief of subordinated groups,
especially in developing countries, and in Central and Eastern Europe and
the Netherlands.’
The consolidated annual accounts comprise the figures of the
following foundations:
▪ Stichting Cordaid, The Hague
▪ Stichting Cordaid Expats, The Hague
▪ Stichting Social Business Incubator, The Hague
▪ Stichting Cordaid Participaties, The Hague (established
February 12, 2015)
▪ Cordaid Investment Management BV, The Hague (established
June 10, 2015)
▪ Corpav BV, The Hague (established June 17, 2015)
Stichting Cordaid Participaties’ objective is to invest through
loans or participation in social enterprises worldwide. The
foundation has the same Board of Directors as Stichting Cordaid.
Cordaid Investment Management BV has the objective to act as
manager for one or more investment institutions. Currently
Cordaid Investment Management BV manages the social impact
investment portfolio of Stichting Cordaid. Stichting Cordaid
holds 100% of the shares of Cordaid Investment Management BV.
Corpav BV makes direct and indirect investments in social
enterprises all over the world. Stichting Cordaid Participaties is
the only shareholder of Corpav BV.
The street address of all foundations and BVs is as follows:
Lutherse Burgwal 10
2512 CB The Hague
The Netherlands
G4-5
The Board of Cordaid bears ultimate responsibility for the
general course of aff airs at Stichting Cordaid. With the
Supervisory Board, the Board is responsible for Cordaid’s
corporate governance structure and compliance with good
governance rules. The composition of the Supervisory Board is
such that its members are able to act critically and independently of one another, the Board and any particular
interests. The Supervisory Board is responsible for supervising
the Board and the general course of aff airs at Cordaid.
The Board is tasked with managing the foundation, including
running its day-to-day business and implementing its programs and activities. The budget, the Annual Report and the
annual accounts that are prepared by the Board are subject to
adoption by the Supervisory Board following advice from the
Audit Committee. The Supervisory Board also adopts the
strategic policy plan drafted by the Board, and approves the
Annual Plan.
Stichting Cordaid Expats’ objective is to employ expatriates
working for Stichting Cordaid and has the same Board as
Stichting Cordaid.
The board members of Stichting Cordaid at December 31, 2015 are:
▪ S.L.J.M. Filippini, CEO
▪ W.J. van Wijk, CFO
The Stichting Social Business Incubator’s objective is to fi nd,
stimulate and develop new ideas that provide sustainable
solutions for environment problems, aimed at improving the
quality of life of those people at the bottom of the income
pyramid. The Chief Financial Officer of Stichting Cordaid is the
chair of the Board of Stichting Social Business Incubator and
has the fi nal say in strategic decisions, according to the articles
of the foundation. At the end of 2015, the Board of Stichting
Social Business Incubator decided to terminate activities in
2016. Running projects will be fi nalized according to plan in
2016, but new activities will not be started.
During 2015, the Supervisory Board members of Stichting
Cordaid were:
▪ E.M.H. Hirsch Ballin, Chair
▪ C.E.G. van Gennip (until 15-07-2015)
▪ M.S. Menéndez
▪ J.J.A. de Boer
▪ M. van Beek
▪ B.L.J.M. van Dijk
▪ J.H.M. van Bussel, member Audit Committee
▪ L.C. Zevenbergen, member Audit Committee
▪ M.C.T. van de Coevering, member Audit Committee
MAY 2016 © CORDAID
49
9
The Board members of Stichting Cordaid Participaties and
Stichting Cordaid Expats are the same as for Stichting Cordaid
per December 31, 2015.
1.3 Changes in accounting estimates
Stichting Cordaid Participaties is the only shareholder and
Board member of Corpav B.V per December 31, 2015.
1.4 Estimates
At December 31, 2015, L.J.E. Chibrac is the only Board member
of Cordaid Investment Management BV. Stichting Cordaid is
the only shareholder.
The Board members of Stichting Social Business Incubator at
December 31, 2015 are:
▪ W.J. van Wijk, Chair
▪ B.P. Alberda, Treasurer
▪ B.P. Meijs, Secretary
▪ F.V. van der Have
1.2 Notes to the cash flow statement
The cash flow statement is prepared using the indirect method.
The funds in the cash flow statement comprise cash and cash
equivalents. Cash flows in foreign currencies are translated at
an average rate. Exchange differences affecting cash items,
interest paid and interest received are included in cash from
operating activities.
Cash flows from operating activities
The positive gross cash flow from operating activities was
mainly driven by the decrease in receivables of €23.7m and the
sale of an important part of the non-development investments
(€15.2m).
Other factors were:
▪ provisions for back donors and redundancy that increased
€1.2m. An actual cash outflow of €0.9m and a release of
€0.3m was offset by an addition to the provisions of €2.4m for
the redundancy provision;
▪ project commitments decreased €19.0m as a consequence of
high payments on liabilities related to MFS II projects, which
were all fi nalized at December 31, 2015;
▪ a net increase of the value of the portfolio of social impact
investments (fi xed fi nancial assets related to the objectives)
of €3.1m driven by new investments throughout the year
from revolved funds in earlier years;
▪ other current liabilities decreased €8.3m. Th is can be related
to the decrease in participations payable after fulfi lling
payment obligations for several participations. Additionally,
the amount of grants received but not yet spent decreased
€2.0m after spending a grant received at the end of 2014
during 2015.
Cash flows from investing activities
Purchases of tangible assets came to €0.3m in 2015.
Investments for new IT systems formed the greater part of this
cash outflow.
Cash flows from financing activities
Cordaid has no non-current liabilities for fi nancing its operations. The non-current liabilities on the balance sheet relate to
long-term project fi nancing, which are recognized as cash
flows from operating activities.
10
50
Cordaid made no changes to its policies for accounting estimates compared to the previous year.
In applying accounting policies and standards for preparing
annual accounts, the Board of Cordaid is required to make
estimates and judgments that might significantly influence
the amounts disclosed in the annual accounts. If necessary for
the purposes of providing the view required under Section
362(1), Book 2 of the Netherlands Civil Code, the nature of these
estimates and judgments, including the related assumptions,
are disclosed in the notes to the relevant items.
1.5 Consolidation
The consolidation includes the financial information of Stichting
Cordaid and the entities in which it exercises control or whose
central management it conducts. All entities in which Cordaid
exercises control or whose central management it conducts are
consolidated in full. The individual accounts of Stichting Cordaid
are not presented separately in these annual accounts because
the differences between the consolidated and individual accounts
of Stichting Cordaid are not significant. The total value of
eliminated intercompany positions in the consolidated balance
sheet amounts to €240k. This mainly relates to an outstanding
payment of part of the management fee from Stichting Cordaid
to Cordaid Investment Management B.V. The balance of income
and expenditure in the individual accounts of Stichting Cordaid
is the same as on consolidated level. Stichting Social Business
Incubator accounts for a negative result in 2015 of €307. All other
entities included in the consolidated annual accounts of
Stichting Cordaid present a financial result of 0 in 2015.
Intercompany transactions, profits and balances among
consolidated entities are eliminated, unless these results are
realized through transactions with third parties. Unrealized
losses on intercompany transactions are eliminated as well,
unless such a loss qualifies as an impairment. The accounting
policies of group companies and other consolidated entities
have been changed where necessary in order to align them to
the prevailing group accounting policies.
The consolidated entities are listed below:
February 12, 2015)
▪ Cordaid Investment Management BV, The Hague (established
June 10, 2015)
The Board of Stichting Cordaid and Stichting Cordaid Expats
and Stichting Cordaid Participaties is the same as the Board of
Stichting Cordaid.
The Chief Financial Officer of Stichting Cordaid is the chair of
the Board of Stichting Social Business Incubator and has the
fi nal say in strategic decisions, according to the articles of the
foundation.
Stichting Cordaid is 100% shareholder of Cordaid Investment
Management BV.
Stichting Cordaid Participaties shares its Board with Stichting
Cordaid and is 100% shareholder of Corpav BV.
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
2. ACCOUNTING PRINCIPLES
2.1 General
G4-28
The fi nancial statements have been prepared in accordance
with the statutory provisions of Part 9, Book 2 of the Dutch
Civil Code and the fi rm pronouncements in the Guidelines for
Annual Reporting in the Netherlands as issued by the Dutch
Accounting Standards Board. More specifically, the fi nancial
statements have been prepared in accordance with the Dutch
Accounting Standard for Fundraising Institutions (RJ 650).
The fi nancial statements are prepared in euros. Balances and
results in 2015 are compared with the budget as approved by the
Supervisory Board and 2014 results and balances. Assets and
liabilities are generally valued at acquisition cost, production
cost or at current value. If no specific valuation method is
indicated, the valuation is done at the acquisition price.
References are included in the balance sheet and statement
of income and expenses.
2.2 Comparison with previous year
The accounting principles used for valuation and recognition of
income and expenditure are unchanged from the previous year.
2.3 Foreign currency
Functional currency
The fi nancial statements are presented in euros, which is the
functional and presentation currency of Cordaid.
provisions considered necessary. These receivables are subsequently measured at amortized cost.
Participations are valued at cost taking into account possible
impairments at reporting date. These participations do not
involve a structural commitment for the purposes of Cordaid’s
own operations.
Investments:
Bonds and shares
Bonds and shares are stated at fair market value. Any changes
in value and transaction costs are recognized through income
or expenditure. Transaction costs are charged directly to the
statement of income and expenditure.
2.6 Non-current asset impairment
Cordaid assesses at each reporting date whether there is any
evidence of assets being subject to impairment. If any such
evidence exists, the recoverable amount of the relevant asset is
determined. An asset is subject to impairment if its carrying
amount is higher than its recoverable amount; the recoverable
amount is the higher of net realizable value and value in use. If
it is established that a previously recognized impairment loss
no longer applies or has declined, the increased carrying
amount of the asset in question is not set higher than the
carrying amount that would have been determined had no
impairment loss been recognized.
Transactions, receivables and payables
Transactions in foreign currencies during the period are
included in the fi nancial statements at the exchange rate on
the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into the functional
currency at the closing rate. The exchange differences arising
from the settlement and translation are credited or charged to
the statement of income and expenditure.
The net realizable value is determined based on the active
market. An impairment loss is directly expensed in the income
statement.
Translation differences on non-monetary assets held at cost are
recognized using the exchange rates prevailing at the dates of
the transactions.
Translation differences on non-monetary assets such as
equities held at fair value through income or expenditure are
recognized through income or expenditure as part of the fair
value gain or loss.
The amount of an impairment loss incurred on fi nancial assets
stated at amortized cost is measured as the difference between
the asset’s carrying amount and the present value of estimated
future cash flows, discounted at the fi nancial asset’s original
effective interest rate (i.e. the effective interest rate computed at
initial recognition).
2.4 Tangible fixed assets
Buildings, IT equipment, furniture and fittings, vehicles and
other assets are all valued at historical cost or manufacturing
price including directly attributable expenditure, less straightline depreciation over their estimated useful lives, and impairment losses. Grants are deducted from the acquisition or
manufacturing cost of the assets to which they relate.
2.5 Financial fixed assets
Issued in connection with the objectives:
Loans, guarantees and participations
Loans and guarantees disclosed under fi nancial assets are
recognized initially at fair value of the amount owed net of any
MAY 2015
2016 © CORDAID
Cordaid assesses at each reporting date whether there is
objective evidence that a fi nancial asset or a group of fi nancial
assets is impaired. If any such evidence exists, the impairment
loss is determined and recognized in the income statement.
If, in a subsequent period, the amount of the impairment loss
decreases and the decrease can be related objectively to an
event occurring after the impairment was recognized, the
previously recognized impairment loss shall be reversed. The
reversal shall not result in a carrying amount of the fi nancial
asset that exceeds what the amortized cost would have been
had the impairment not been recognized at the date the
impairment is reversed. The amount of the reversal shall be
recognized through profit or loss.
If an impairment loss has been incurred on an investment in
an equity instrument carried at cost, the amount of the
impairment loss is measured as the difference between the
carrying amount of the fi nancial asset and the present value of
estimated future cash flows discounted at the current market
rate of return for a similar fi nancial asset. The impairment loss
11
51
shall be reversed only if the evidence of impairment is objectively shown to have been removed.
2.7 Stocks
Stocks are valued at cost using the fi rst in, fi rst out method
(FIFO). As soon as stocks are assigned to a project the related
costs are recognized in the statement of income and expenditure as program costs. In case of obsolescence of stock costs are
recognized as program management costs.
2.8 Receivables
Receivables are initially recognized at fair value and subsequently carried at amortized cost. Allowances for doubtful
debts are deducted from the carrying amount of receivables.
2.9 Cash and cash equivalents
Cash and cash equivalents comprise cash and bank balances
and demand deposits falling due in less than 12 months. Cash
and cash equivalents are stated at face value.
2.10 Reserves and funds
The equity of Cordaid is divided into the following reserves and
funds:
▪ The continuity reserve is created to ensure that Cordaid can
meet its legal and moral obligations in case of a significant
fall in income in the future.
▪ The tangible fi xed assets reserve is created to set aside
capital to fi nance necessary tangible fi xed assets in the
future.
▪ Earmarked reserves are earmarked for future spending on
the objectives of Cordaid. The Board of Directors decides on
the actual purposes of the reserves, based on internally
agreed criteria.
▪ The restricted funds are earmarked for a specific project as
agreed with third-party donors.
▪ Semi-restricted funds are earmarked for activities related to
a certain topic, but not limited to specific projects.
▪ The loans and guarantees fund has been committed for
loans, guarantees and equities connected to the objectives of
Cordaid. The result on these fi nancial assets and the costs of
managing this portfolio reflect the changes in the fund in a
year.
12
52
2.11 Provisions
Provisions are recognized for legally enforceable or constructive
obligations existing at the balance sheet date, the settlement of
which will probably require an outflow of resources whose
extent can be reliably estimated.
Provisions are measured on the basis of the best estimate of the
amounts required to settle the obligations at the balance sheet
date. Unless indicated otherwise, provisions are stated at the
present value of the expenditure expected to be required to
settle the obligations.
A maintenance provision for the future cost of maintenance of
the building is not included in the fi nancial statements. If and
when costs for maintenance of the building occur, the costs
will be directly charged to the statement of income and
expenditure.
2.12 Liabilities
General
Liabilities are initially recognized at fair value. Transaction
costs directly attributable to the incurrence of the liabilities are
included in the measurement on initial recognition. Liabilities
are subsequently measured at amortized cost; this is the
amount received plus or less any premium or discount and net
of transaction costs.
Operational lease
Liabilities under operating leases (such as the lease of premises)
are accounted for in the statement of income and expenditure
equally over the term of the contract, taking into account
reimbursements received from the lessor.
Project commitments
Project commitments are recognized as soon as a contract is
issued or when a grant decision is communicated in writing or
otherwise; they are stated at the fair value stated in the
contract, net of any payments.
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
3. ACCOUNTING PRINCIPLES FOR
THE STATEMENT OF INCOME
AND EXPENDITURE
3.1 General
Income and expenses are recognized in the statement of
income and expenditure in the year to which they relate.
The allocation is made consistently with previous years. The
balance of funds is defi ned as the difference between income
and expenses. Income is accounted for in the year it was
realized and losses are accounted for as soon as they are
identified.
3.2 Income recognition
Income from own fundraising
Income from own fundraising involves gifts and donations,
mailings, collections, legacies and the sale of materials. Income
from gifts and donations, mailings and sales of materials are
accounted for in the year in which they are received/in which
the materials are sold. Exceptions are written undertakings
that have been received before year-end as these can be
accounted for in the current year.
Legacies are recognized based on a statement received from the
executor in the year in which the amount can be determined
reliably. The valuation of legacies with property is done based
on the most recent correspondence and receipts are included up
to the preparation of fi nancial statements. The valuation is
done prudently.
Income from third-party campaigns
Income from third parties is accounted as such when Cordaid
carries no risk in the fundraising campaign. The income from
third parties is recognized in the year in which the income is
received or pledged.
Income from government grants
Grants and subsidies are recognized in the statement of income
and expenditure in the year in which the subsidized costs were
incurred. The grants are recognized where it is probable that
they will be received and Cordaid will comply with all attached
conditions.
Interest income and income from investments
The line item interest income and income from investments
contains the (gross) interest, dividends and realized and
unrealized capital gains. Interest income and expense are
recognized time proportionally.
Interest income is recognized as investment income exclusive
of interest received on loans and guarantees issued in the
context of the Loans & Guarantees Program, which is recognized entirely as gains on fi nancial assets issued in connection
with the objectives.
Result of loans, guarantees and participations
The result of loans, guarantees and participations is made up
of interest received on loans and guarantees under the Loan &
Guarantee Program, realized and unrealized changes in the
MAY 2015
2016 © CORDAID
valuation of loans and participations, dividend and fees for
restructuring loans.
Gifts in kind
Gifts in kind are stated at their fair market value in the
Netherlands. Where items involving gifts in kind are sent
directly to emergency areas, their value is recognized as a gift
and as an expended resource. Cordaid accounts for gifts in kind
if the discount/gift has a connection with the nature of
Cordaid’s activities and objectives and Cordaid would have
purchased the services or goods if the gift/discount had not
been received.
3.3 Exchange rate differences
Transactions denominated in foreign currencies conducted
during the reporting period are recognized in the annual
accounts at the rate of exchange on the transaction date.
Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency at the
rate of exchange at the reporting date. Any resulting exchange
differences are recognized through income or expenditure.
Non-monetary assets and liabilities stated at cost and denominated in foreign currencies are translated at the rate of
exchange at the transaction date (or the approximate rate of
exchange).
3.4 Depreciations on tangible fixed assets
Tangible assets are carried at cost less straight-line depreciation over their estimated useful lives. Tangible assets are
depreciated from the time they are taken into use over their
estimated useful lives. Future depreciation is adjusted if the
estimate of future useful life changes. Gains and losses on the
sale of tangible fi xed assets are included in depreciation.
3.5 Employee benefits
Short-term employee benefits
Salaries, wages and social security contributions are recognized in the statement of income and expenditure based on the
pay and benefits package to the extent that they are payable to
employees.
Pensions
Cordaid’s pension plan is administered by the Zorg en Welzijn
Pension Fund, a pension fund for the health and welfare sector.
Employees’ retirement and partner pensions are based on their
pensionable salary for full-time employment, net of the
state-pension offset. The pension fund endeavors to index-link
any accrued pension entitlements and pensions in payment
based on general salary trends in the collective bargaining
agreements that govern its affi liated employers in a particular
year. The pension fund decides every year whether index-linking would be appropriate and, if so, what index to use given the
fi nancial situation and expected developments in that situation. In doing so, the pension fund uses nominal and realistic
coverage ratios as benchmarks. Although the pension fund may
decide to apply catch-up index linking, such a decision will not
have a retroactive effect and will not trigger subsequent
payments. Index linking is funded partially from contributions
and partially from the return on plan assets. The coverage ratio
was 97% at 31 December 2015.
13
53
Contributions are recognized as employee benefits expense as
soon as they are payable. Prepaid contributions are recognized
within prepayments and accrued income if they entail a refund
or a reduction in future payments. Contributions payable are
disclosed as liabilities in the balance sheet.
3.6 Financial income and expenses
Interest paid and received
Interest paid and received is recognized on a time-weighted
basis, taking into account the effective interest rate of the
assets and liabilities concerned. When recognizing interest
paid, allowance is made for transaction costs on loans received
as part of the calculation of effective interest.
Changes in financial instruments at fair value
Changes in the value of the following fi nancial instruments
are recognized directly through profit or loss:
▪ fi nancial assets and liabilities that are held for trading;
▪ purchased loans, bonds (unless held to maturity) and equity
instruments that are quoted in an active market;
▪ Decreases in value of fi nancial instruments at fair value are
recognized through profit or loss.
4. FINANCIAL INSTRUMENTS
AND RISK MANAGEMENT
4.1 Market risk
Currency risk
Cordaid operates in the European Union, Africa, Asia, LatinAmerica and the United States. The currency risk for Cordaid
largely concerns positions and future transactions in US dollars
and currencies whose rate is closely related to the US dollar.
Management has determined that the cost of hedging these
currency risks does not outweigh the benefits. Natural hedges
exist because receivables and liabilities are often related.
Price risk
Cordaid invests its temporary cash balances according to a
defensive to neutral strategy compared to a very conservative
policy in previous years. As a consequence Cordaid faces a
limited market risk related to its portfolio of bonds and shares
that is valued at market value.
Interest rate and cash flow risk
Cordaid incurs interest rate risk on interest-bearing receivables
(in particular those included in fi nancial assets and cash).
Credit risk
Cordaid does not have any significant concentrations of credit
risk. Receivables mainly relate to grants from solid governments or multilateral institutions.
Liquidity risk
Cordaid uses several banks in order to avail itself of a range of
overdraft facilities. Where necessary, further securities will be
furnished to the bank for available overdraft facilities.
14
54
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
5. TANGIBLE FIXED ASSETS
Movements of the tangible fi xed assets are as follows:
X € 1,000
BUILDINGS
IT EQUIPMENT
FURNITURE
AND FITTINGS
VEHICLES
OTHER ASSETS
TOTAL
Cost
1,895
4,537
1,470
28
283
8,213
Accumulated depreciation
-1,397
-3,838
-1,328
-22
-283
-6,868
498
699
142
6
0
1,345
Purchases
0
258
71
0
0
329
Disposals
0
0
0
0
0
0
-63
-284
-39
-5
0
-391
0
0
0
0
0
0
-63
-26
32
-5
0
-62
1,895
4,795
1,541
28
283
8,542
-1,460
-4,122
-1,367
-27
-283
-7,259
Carrying value at December 31, 2015
435
673
174
1
0
1,283
Depreciation percentages
10%
33%
20%
33%
33%
Balance at January 1, 2015
Carrying value at January 1, 2015
Changes
Depreciation
Depreciation on disposals
Total changes
Balance at December 31, 2015
Cost
Accumulated depreciation
Total investments in 2015 amounted to €329k. The main investments were related to investments in IT systems replacing the
current project administration, a new CRM system and the integration of the IT systems at all Cordaid country offices. In addition,
some small investments were made to complete the new Cordaid workspace, enabling staff to work more easily in project teams
worldwide.
All assets are held for business operations.
MAY 2015
2016 © CORDAID
15
55
6. FINANCIAL FIXED ASSETS ISSUED IN CONNECTION WITH THE OBJECTIVES
Outstanding loans, participations and guarantees are recognized as fi nancial assets issued in connection with the objectives.
Th is relates to loans issued to and a number of participations in partner organizations for the purposes of funding usually
small-scale economic activities (e.g. through microfi nance institutions), for which partner organizations fi nd it difficult or
impossible to secure fi nance from commercial banks. Interest rates on these loans are determined by country and by customer.
Movements in fi nancial assets were as follows in 2015:
X € 1,000
LOANS
GUARANTEES
PARTICIPATIONS
TOTAL
25,774
1,706
26,432
53,912
-1,733
0
0
-1,733
24,041
1,706
26,432
52,179
Loans and guarantees issued
12,126
2,000
0
14,126
Loans and guarantees repaid
-7,686
-1,333
0
-9,019
Participations acquired/committed
0
0
-471
-471
Participations sold/commitments withdrawn
0
0
-1,491
-1,491
-861
0
0
-700
0
0
-1,426
-1,426
1,383
108
1,218
2,709
30,736
2,481
24,262
57,479
861
0
0
861
-1,328
0
0
-1,328
Provision at December 31, 2015
-2,200
0
0
-2,200
Value of the portfolio at December 31, 2015
30,736
2,481
24,262
57,479
Provision at December 31, 2015
-2,200
0
0
-2,200
Carrying amount December 31, 2015
28,536
2,481
24,262
55,279
Value of portfolio at January 1, 2015
Provision at 1 January 2015
Carrying amount January 1, 2015
Changes in value of the portfolio
Impaired loans and guarantees (write-offs)
Revaluation of participations
Currency gains and losses
Value of portfolio at December 31, 2015
Changes in the provision
Impaired loans and guarantees (write-offs)
Allocated to/withdrawn from provision for loans and guarantees
The provision on loans and guarantees increased by €1.3m in 2015 as a consequence of one loan that was prudently valued at zero
after the discovery of a fraud case and resulting in an addition of €0.8m.
Loans and guarantees
Loans and guarantees will fall due in the following periods:
X € 1,000
< 1 year
1-5 years
> 5 year
16
56
LOANS
GUARANTEES
TOTAL
2,813
0
2,813
26,548
2,481
29,029
1,375
0
1,375
30,736
2,481
33,217
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
Participations
Cordaid takes a prudent approach to the valuation of its participations. They are carried at cost or at fair value if significantly
lower. Participations that have appreciated in value are measured at cost. Previously recognized impairments can be (partially)
reversed, if the original reasons for impairment are no longer valid as long as the value does not become higher than original cost.
Payments in foreign currencies are recorded at the current rate. Cordaid has the policy of selling all foreign currencies, besides US
dollars, directly upon receipt. At the end of 2015 there was no currency hedging.
List of participations (in €1,000):
NAME OF
ORGANISATION
CITY
COUNTRY
Aavishkar
Mumbai
India
PARTICIPATION
OPENING
BALANCE
2014
17.5%
1,292
10.4%
-
4.7%
569
PURCHASED /
COMMITTED
CURRENCY
GAINS AND
LOSSES
REVALUATION
SOLD
CLOSING
BALANCE
2014
1,292
Afrinut
Llongwe
Malawi
Bank Andarra
via Hivos
Triodos Fonds
Jakarta
Indonesia
0
Dia Vikas
Gurgaon
(Uttar
Pradesh)
India
0.0%
2,500
Dia Vikas
Gurgaon
(Uttar
Pradesh)
India
6.0%
1,447
Finance South
Sudan
Juba
South Sudan
74.0%
-
0
FPM SA
Kinshasa
DRC
17.2%
3,100
3,100
InReturn B.V.
Rotterdam
Netherlands
21.6%
349
Kuyichi
International B.V.
Den Haag
Netherlands
0.0%
-
0
Liberation
Londen
UK
19.9%
170
170
Oikocredit
Amersfoort
Netherlands
0.0%
330
PEAK II LP
Moshi
Tanzania
21.0%
722
-100
PEAK I
Dar-esSalam
Tanzania
0.0%
110
-110
PEF
Manila
Philippines
0.0%
-2
461
-106
95
-218
-36
-330
-30
67
-
Port Louis
Mauritius
PYME Capital
Panama City
Rabo Rural Fund
Investment fund in
MFIs India
313
Investment fund
SME Africa
SME
Nut producer
association
592
Leasing fund SME
Africa
0
Investment fund
SME Africa
-1,027
0
Investment fund
SMEs in the
Philippines
-9
3,362
Investment fund in
MFIs
1,381
Investment fund
SMEs Latin America
1,386
Utrecht
Netherlands
20.0%
2,454
2,454
SICSA
Panama City
Panama
15.2%
454
454
SIDI
Parijs
France
0.0%
89
SME Impact
Fund CV
Amsterdam
Netherlands
21.0%
Stromme
Microfinance
East Africa
Limited
Kampala
WAVF
Port Louis
Mauritius
25.0%
3,500
WMF
Accra
Ghana
26.0%
1,650
-261
26,432
-471
-382
-89
-57
0
923
980
19.4%
Small producers
trade finance fund
Investment fund in
MFIs Central
America
Investment social
investor
Investment fund
SME Tanzania
1,000
Investment fund in
MFIs Africa
-683
3,498
Investment fund
SME Sierra Leone /
Liberia
50
1,439
Investment fund in
MFIs Ghana
1,000
MAY 2015
2016 © CORDAID
Investment fund for
Financial
Institutions DR
Congo
Investment social
investor
62.4%
1,218
MFI
0
Panama
681
Loan related to
investment in
Indonesia
1,324
3,371
Uganda
Nut processor
Investment fund in
MFIs India
11.2%
377
Investment fund
SME in India
2,500
960
Progression
Capital Africa
LTD
ACTIVITIES
-1,426
-1,491
24,262
57
17
Debt investments carrying the same risk as equity participations are included in the list of participations. For these
investments the percentage of the participation is stated as
0.0%.
At December 31, 2015, the number of participations decreased
to 18 and the total value of the portfolio of participations
decreased from €26.4m in 2014 to €24.3m. Cordaid did not
invest in new participations in 2015.
Th ree participations have been decommitted:
▪ €101k in PEAK II was de-committed and a devaluation of
€30k was recorded because the investment period was
fi nished, disbursements were lower than the committed
amounts and through exchange rate differences.
▪ €110k was de-committed in PEAK I because of delays in the
set up of the fund and a change in fund structure that made
the Cordaid investment no longer necessary.
▪ €261k was de-committed from WMF and a revaluation of
€50k was recorded because of the close of the investment
period and currency gains resulting in a lower commitment
amount in euro.
InReturn paid back €35k from its exits.
The last part of the non-strategic participation in SIDI was sold
at cost price for €89k.
The last of two PEF outstanding loans with equity component
(interest rate payments are directly correlated to profit and
losses of the organization) were reimbursed for €1.0m, resulting in a currency gain of €67k and leaving no outstanding
balance on PEF.
Progression Capital Africa LTD paid €9k from its fi rst exits.
The Oikocredit participation was sold for €330k, including an
amount of €37k as stock dividend. At Oikocredit’s request it was
decided to keep a participation of one share (€200) to retain
voting rights as a like-minded investor.
A number of revaluations have taken place reflecting the
improvement or worsening of the situation of some of our
equity participations and the variations in currency rates.
The total revaluations of intrinsic values amounted to losses
of €1.4m:
▪ Cordaid sold its participation in the Indonesian Bank
Andarra to the Hivos Triodos Fund and no longer has a
direct connection with Bank Andarra. Instead, a loan has
been granted to the Hivos Triodos Fund. The valuation of
this loan is directly related to the performance of Bank
Andarra. To reflect this risk, the loan is included in the list
of participations and replaces the sold participation in Bank
Andarra. The intrinsic value of the loan has further
decreased by €106 kresulting in a closing value of €461k.
▪ The participation in PYME Capital was depreciated by €382k
to reflect the increased risk concerning one of its biggest
investments but benefited from a €377k currency gain,
leading to fi nal a valuation of €1.4m.
▪ Dia Vikas, a microfi nance investment fund in India: the
intrinsic value decreased by €218k and currency gains led to
an appreciation of €95k, resulting in a closing value of €1.3m.
At year-end 2015, the €2.5m convertible loan committed in
2012 had been disbursed, but had not yet been received in
Dia Vikas’ account Cordaid was not exposed to any fi nancial
risk on this additional participation at the end of the closing
period.
▪ Rabo Rural Fund, a global small producer’s fund in the
Netherlands: Cordaid founded this fund with the Rabobank
Foundation and has a 20% participation. In 2015, the
increased risk concerning one of its investments led to
depreciation in US dollars. Because the effect of the
appreciated dollar would more than offset the depreciation,
the valuation in euros was unchanged.
▪ The SME Impact Fund, offering funding to BDS-trained
SMEs in Tanzania, was depreciated by €57k to reflect the
slower-than-expected pace of realization of the investments,
leading to a valuation of €923k.
▪ West African Venture Fund, a SME fund targeting Sierra
Leone and Liberia, was heavily impacted by the Ebola
outbreak in West Africa, resulting in a revaluation of the
fund’s portfolio companies and a depreciation of the
intrinsic value by €683k in Cordaid’s books. As unrealized
currency gains of €681k mostly offset the depreciation, the
closing value of €3.5m equals the value recorded in 2014.
Cordaid reviewed and revalued all its participations at
December 31, 2015. However, unrealized gains and losses are
only included in the valuation of impaired participations.
The revaluations resulted in a currency gain in 2015 of €1.2m.
18
58
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
7. INVESTMENTS
8. STOCKS FOR EMERGENCY AID
Until June 30, 2015, Schretlen & Co and ASN managed Cordaid’s
investment portfolio according to a very defensive policy and
ensuring that the principal amount of a portfolio investment is
highly guaranteed.
In 2014 Cordaid kept stocks of emergency aid goods in Uganda
and South Sudan. The stocks are kept so Cordaid can act quickly
in case of an emergency in the region. During 2015, the stock in
Uganda was brought to 0. Cordaid now only maintains stocks
in South Sudan. Per December 31, 2015, the stock can be
specified as follows:
At the beginning of 2015, Cordaid decided to make some
changes in its investment policy, aiming at a higher return on
investments without exposing the invested funds to unacceptable risks.
From July 1, 2015, Cordaid selected ING and Van Lanschot as
their asset managers and reduced the invested portfolio from
approximately €35m to €20m. All investments under management with Schretlen and ASN were sold per the same date.
The remaining amount was kept in cash. The reduction in the
invested amount was made so that Cordaid would have more
cash directly available to pre-fi nance projects and to absorb
unforeseen cash outflows.
Both asset managers were instructed to invest following a
defensive to neutral profi le. The investment strategy has a
5-to-10 year horizon. Both asset managers receive a fee based
on the invested amount only and no performance based fee.
Portfolio investments must meet strict sustainability criteria.
Cordaid invests in businesses that have sound staff policies in
place, that protect the environment and that respect human
rights. Cordaid applies the UN Global Compact and the
Standard for Financial Management of Fundraising
Institutions of the Dutch Association of Fundraising
Institutions (VFI), as well as a range of supplementary product
and process criteria based on ASN Bank criteria.
31/DEC/2015
31/DEC/2014
49
111
9
130
- Sanitary Kits
38
88
- Kitchen sets
0
82
96
411
Stocks for emergency aid
- Tarps
- Khanga cloth, blankets, bed nets
& bags
During 2015, Cordaid only spent €77k on new items. The value
of distributed items in 2015 amounted to approximately €250k,
another €239k was sold to peer organizations. Although the
turnover rate of the stocks is relatively low, a provision for
obsolete stock was unnecessary as all items are non-perishable
and can be kept for several years without losing their value for
Cordaid’s operations.
9. RECEIVABLE
All receivables have a remaining maturity of less than one year.
31/DEC/2015
31/DEC/2014
- Dutch Government
6,548
31,083
- Other governments and
organizations
16,254
15,447
Receivables
31/DEC/2014
Bonds
Government bonds
31/DEC/2015
X € 1,000
The current portfolio investments can be specified as follows:
X € 1,000
X € 1,000
3,596
17,779
-209
3,382
- Provision uncollectable
receivables from governments
-209
7,216
Other bonds
2,484
13,863
- Receivable from inheritances
5,395
5,251
Shares
6,529
0
753
1,354
19,825
35,024
1,772
1,308
30,513
54,234
Corporate bonds
The portfolio is carried at fair value. The fair value of the portfolio
decreased €15.2m. An amount of €15m was turned into directly
available cash after the sale of all investments managed by
Schretlen and ASN. The originally invested amount of the
current portfolio is €20m. The fair value of the portfolio is
determined based on the known market prices for the specific
bonds and shares in the portfolio.
- Interest receivables
- Other receivables
Contracts with back donors lead to a receivable if subsidized costs
incurred are higher than advances received from the donor.
As a consequence of the slowdown of activities for the MFS II
program, the receivable on the Dutch government decreased by
€24.5m. The receivable for projects funded by other governments and organizations remained stable. For more details on
government grants refer to section 17.
The receivable from inheritances in 2015 was €5.4m (2014:
€5.3m). In 2015, a lower number of legacies was unsettled
compared to 2014 (141 vs 185). Th is was compensated by a higher
average amount receivable per legacy.
MAY 2015
2016 © CORDAID
59
19
10. CASH AND BANK
INTEREST RECEIVABLES
X € 1,000
31/DEC/2015
31/DEC/2014
229
355
40
497
484
502
753
1,354
Interest receivables
- Banks & deposits
- Bonds
- Loans & guarantees
(relief efforts)
Interest receivables relates to the bonds in the investment
portfolio, outstanding deposits, savings deposits and outstanding loans and guarantees relating to Cordaid’s objectives. The
receivable decreased €0.6m because the number of bonds was
significantly reduced after the change in investment strategy.
The continuous decrease in interest rates is another important
factor in the decrease of the receivable.
Cash and bank comprise cash and bank balances of the Cordaid
office in The Hague, in the country offices abroad and deposits
falling due in less than one year. Cash and cash equivalents
increased from €67.7m at December 31, 2014 to €73.1m at the
end of 2015. The reduction of the investment portfolio is the
main reason for the increase of cash, in spite of the negative
balance in 2015. The other main factors in changes in Cash and
bank are explained in section 1.2, Notes to the cash flow
statement.
All cash is at Cordaid’s free disposal, except for the guarantee
for the rent agreement of €0.2m (one guarantee).
OTHER RECEIVABLES
X € 1,000
31/DEC/2015
31/DEC/2014
55
55
630
310
1,087
943
1,772
1,308
Other receivables
- Security deposit
- Prepayments
- Other receivables
The other receivables increased €0.5m mainly as a consequence
of various small prepaid amounts.
An invoice of €0.7m for the Vastenaktie, prepaid rent of €0.3m
and donations receivable of €0.2m are the main receivables.
20
60
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
11. RESERVES AND FUNDS
X € 1,000
CONTINUITY
RESERVE
EARMARKED
RESERVES
OTHER
RESERVES
RESTRICTED
FUNDS
12,275
10,915
1,345
3,979
5,798
93,964
128,276
Extraction
-2,400
-2,120
-62
-2,509
0
-641
-7,732
Dotations
0
0
0
0
3,061
0
3,061
9,875
8,795
1,283
1,470
8,859
93,323
123,605
Opening balance
January 1, 2015
SEMIRESTRICTED
RESTRICTED FUND LOANS &
FUNDS
GUARANTEES
TOTAL
RESERVES
AND FUNDS
Changes
Closing balance
December 31, 2015
Continuity reserve
The continuity reserve is designed to create a sufficiently large
buffer to enable Cordaid to complete ongoing programs
appropriately, including staffi ng them with our own people, if
one or more key sources of funding were to dry up unexpectedly, and with due observance of existing legal and moral
obligations.
Due to the ending of the MFS II program after 2015, Cordaid
was obliged to cut its costs for 2016. As a consequence, staff was
reduced with approximately 30%. An amount of €2.4m was
withdrawn from the continuity reserve to create a redundancy
provision. Th is amount represents the total costs necessary to
compensate redundant staff according to the Social Plan
agreed between the Board of Directors and the labor unions.
A new addition to the continuity reserve was not made in 2015.
The necessary continuity reserve will be calculated again in
2016 based on a new analysis of the stability of income and
the cost levels of Cordaid following the reorganization.
The continuity reserve amounts to €9.9m at December 31, 2015.
This amount is well below the Centraal Bureau Fondsenwerving
(CBF) requirement of no more than 1.5 times total operating
expenses.
Earmarked reserves
Earmarked reserves are comprised of interest income, income
from investments fi nanced with temporary surpluses of
semi-restricted funds, other income and income which is not
earmarked for specific topics, but granted to Cordaid as an
organization. The reserves are earmarked for spending on
objectives. The allocation of these reserves to different themes,
programs and objectives is subject to a decision by the Board of
Directors. Decision-making is based on internally agreed
criteria.
MAY 2015
2016 © CORDAID
The total amount of earmarked reserves per December 31, 2015
is €8.8m. Net income from non-development investments,
unrestricted interest income and unrestricted donations
amounting to €2.0m was added to the earmarked reserves.
Program expenditure of €2.3m was deducted. Organizational
costs of €1.8m could not be covered from organizational cost
allowances from donors and semi-restricted funds. Therefore,
this amount was deducted from that part of the earmarked
reserves that came from non-program related income such as
interest and other income.
Other reserves
The only other reserve is a restricted reserve to enable replacement of current tangible fi xed assets when fully written off
and always has the same value as the tangible fi xed assets in
the balance sheet.
Restricted funds
Restricted funds are funds received for an earmarked purpose,
such as incoming resources for specific SHO campaigns or
other funds specifically allocated to one or more projects.
Restricted funds decreased €2.5m to €1.5m. The decrease is due
mainly to spending of funds raised for the SHO campaigns
Stop ebola! and The Philippines resulting in a decrease of funds
of €2.9m.
Incoming resources and expenditures through SAN! are also
disclosed in the restricted project fund. The partner payment
for 2015 was a gross amount of €500k. Net of €50k in overheads,
an amount of €450k was added to the SAN! fund. Program costs
for SAN! projects in 2015 amounted to €379k (2014: €674k).
21
61
X € 1,000
OPENING
BALANCE
JANUARY 1, 2015
INCOMING
RESOURCES
OVERHEAD
FEE
PROJECT
RESOURCES
EXPENDED
CLOSING
BALANCE
DECEMBER 31, 2015
SHO campaign Stop de ebola-ramp
808
210
-14
-1,004
0
SHO campaign Philippines
2,141
12
-177
-1,976
0
SHO Nepal
0
2.301
-161
-2,012
128
Adoptions
623
241
-27
-331
506
3,572
2.764
-379
-5,323
634
Adoptions
0
313
-36
-198
79
Personalized fund - van Kasteren
7
40
0
-43
4
7
353
-36
-242
83
549
117
-13
-300
353
20
0
0
-20
0
206
500
-50
-379
277
Mensen in Nood
Kinderstem
Memisa
Adoptions
Personalized fund - Local Heroes
Stop Aids Now!
Ineke Feitz Foundation
-375
986
-81
-407
123
400
1,603
-145
-1,105
753
3,979
4,720
-560
-6,669
1,470
Personalized funds
The item ‘personalized funds’ relates to:
▪ Local Heroes fund of originally €50k. The agreement was to use these resources in five annual installments. In 2015, the fi nal
€20k was committed for program activities that were partly executed in 2015 and will be fi nalized in 2016.
▪ Van Kasteren fund of €40k per year for the years 2014-2018. During 2015, the second €40k amount was received. An amount of
€43k was spent on objectives, resulting in a remaining balance of €4k.
22
62
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
SHO PHILIPPINES
X€1
2015
EMERGENCY AID
UP TO AND INCLUDING 2015
RECONSTRUCTION
Incoming resources from third party
campaigns
TOTAL
EMERGENCY AID
RECONSTRUCTION
TOTAL
-
6,731,594
11,646
14,486
11,646
6,746,080
Preparation and coordination costs
177,435
422,526
165,789-
6,323,554
Intrest
Total available for charitable activities
Resources expended
Commitments undertaken by
participant
- support offered through local relief
providers
(20,541)
-
(20,541)
1,019,459
-
1,019,459
- support offered through international
umbrella organisation
-
-
-
-
-
-
- support offered through participant
-
1,995,528
1,995,528
-
5,304,095
5,304,095
(20,541)
1,995,528
1,974,987
1,019,459
5,304,095
6,323,554
Available commitment capacity
0
X€1
2015
EMERGENCY AID
RECONSTRUCTION
TOTAL
EMERGENCY AID
RECONSTRUCTION
TOTAL
providers
-
-
-
1,019,459
-
1,019,459
-
-
-
-
-
-
-
3,107,708
3,107,708
-
5,286,895
5,286,895
Total transferred
-
3,107,708
3,107,708
1,019,459
5,286,895
6,306,354
providers
-
-
-
1,019,459
-
1,019,459
-
-
-
-
-
-
-
3,124,908
3,124,908
-
5,304,095
5,286,895
-
3,124,908
3,124,908
1,019,459
5,304,095
6,323,554
Breakdown of participant’s cash flows
Transfer by participant for:
Breakdown of resources expended
locally
MAY 2015
2016 © CORDAID
23
63
SHO STOP EBOLA!
X€1
2015
EMERGENCY AID
RECONSTRUCTION
Incoming resources from third party
campaigns
Intrest
TOTAL
EMERGENCY AID
RECONSTRUCTION
TOTAL
206,384
1,564,358
3,304
3,304
209,688
1,567,662
13,718
102,557
195,970
1,465,105
Resources expended
participant
providers
323,479
275,861
599,340
383,436
275,861
659,297
-
-
-
-
-
-
323,479
404,855
404,855
370,891
434,917
805,808
680,716
1,004,195
754,327
710,778
1,465,105
(808,225)
X€1
2015
0
EMERGENCY AID
RECONSTRUCTION
TOTAL
EMERGENCY AID
RECONSTRUCTION
TOTAL
383,436
275,861
659,297
383,436
275,861
659,297
-
-
-
-
-
-
342,194
404,855
747,049
370,891
434,917
805,808
Total transferred
725,630
680,716
1,406,346
754,327
710,778
1,465,105
383,436
275,861
659,297
383,436
275,861
659,297
-
-
-
-
-
-
361,762
404,855
766,617
370,891
434,917
805,808
745,198
680,716
1,425,914
754,327
710,778
1,465,105
providers
locally
providers
24
64
MAY 2015
2016 © CORDAID
CORDAID’S 2015
FINANCIAL
STATEMENTS
SHO NEPAL
X€1
2015
EMERGENCY AID
RECONSTRUCTION
Incoming resources from third-party
campaigns
TOTAL
EMERGENCY AID
RECONSTRUCTION
2,300,000
Intrest
TOTAL
2,300,000
548
548
2,300,548
2,300,548
161,000
161,000
2,139,548
2,139,548
Resources expended
participant
providers
756,849
50,000
983,597
1,740,446
1,740,446
-
1,740,446
50,000
50,000
-
50,000
96,012
124,777
220,789
220,789
-
220,789
902,861
1,108,374
2,011,235
2,011,235
-
2,011,235
128,313
X€1
2015
128,313
EMERGENCY AID
RECONSTRUCTION
TOTAL
EMERGENCY AID
RECONSTRUCTION
TOTAL
658,113
855,280
1,513,393
658,113
855,280
1,513,393
50,000
-
50,000
50,000
-
50,000
providers
96,012
124,777
220,789
96,012
124,777
220,789
804,125
980,057
1,784,182
804,125
980,057
1,784,182
providers
820,504
-
820,504
820,504
-
820,504
50,000
-
50,000
50,000
-
50,000
96,012
-
96,012
96,012
-
96,012
966,516
-
966,516
966,516
-
966,516
Total transferred
locally
The funds for activities in The Philippines and for Stop ebola! were fully expended in line with action planning. The amount of
resources expended for the action in Nepal is based on the report received from our partner organizations and the local Cordaid
Office.
For activities in Nepal a commitment capacity of €128k is available for reconstruction. The Reconstruction phase started in
November 2015, but per December 31 actual expenditure was not yet reported. Therefore, the expended amount is stated at zero.
A full report of expenditure and activities in the reconstruction phase can be found on the website of Samenwerkende
Hulporganisaties (www.samenwerkendehulporganisaties.nl).
MAY 2015
2016 © CORDAID
25
65
Semi-restricted funds
Semi-restricted funds are accruals on own fundraising that are
not earmarked for a specific purpose or are earmarked for a
broadly defi ned purpose (usually linked to program purposes).
The increase in semi-restricted funds is mainly a result of
unspent balances for Cordaid Mensen in Nood related to
income from unsettled legacies. The income is recognized, but
because the actual cash is not yet received, expenditure is
recorded later as well.
Loans & Guarantees fund
The Loans & Guarantees Fund comprises the resources that
have been accrued within the scope of the Loans & Guarantees
Program. The resources for the Loans & Guarantees Fund stem
from the co-fi nancing program and from own resources.
Because no new social impact investments were started with
MFS II funds in 2015, a net deduction was made from the fund
instead of an addition as in previous years. The addition to the
provision for bad loans is another reason for the negative result
on the Loans & Guarantees fund in 2015.
X € 1,000
TOTAL
Opening balance January 1, 2015
93,964
Income from financial assets issued for objectives
2,133
Investment income
-295
Income from cash and cash equivalents
92
Recharged overhead fee
60
Direct costs
Recharged indirect costs
Grant approvals
Closing balance December 31, 2015
-1,645
-934
-52
93,323
12. PROVISIONS
The composition of, and movements in, the provisions were as
follows:
X € 1,000
Opening
balance
January 1, 2015
REDUNDANCY
PROVISION
BACKDONOR
PROJECTS
JUBILEE
AND
FAREWELL
PROVISION
TOTAL
344
910
15
1,269
2,400
0
0
2,400
-344
-572
-15
-931
0
-282
0
-282
2,400
56
0
2,456
Changes
- Allocated
- Withdrawn
- Released
Closing balance
December 31,
2015
The fi nancial settlement of the reorganization that started in
2012 was fi nalized at the beginning of 2015. Based on the
fi nancial prospects for Cordaid without MFS II funding,
Cordaid decided on a new reorganization by the end of 2015.
The total estimated costs for transition, transition fees and
redundancy fees for the redundant staff is estimated at €2.4m.
In 2014, Cordaid identified four fi nished projects funded by
institutional donors where re-audits revealed omissions in
Cordaid’s compliance with the donor’s grant requirements. For
two projects these re-audits led to an actual repayment of
funds to the donor. The total amount repaid in 2015 amounts to
€572k and represents for the greater part costs incurred in line
with project objectives, but whose supporting documentation
was not in line with donor requirements. The other part related
to a possible fraud case where, due to circumstances, an audit
could not be carried out.
On the other two projects, the re-audits showed that all
supporting documents were in order, leading to a release of
€282k. A discussion on the validity of the supporting documents on a smaller amount of €56k is still ongoing.
The related project results are not under discussion. Cordaid
believes that the resources of the back donor were spent in line
with the original objectives of the projects concerned.
Compliance with formal rules, however, is under discussion.
The jubilee and farewell provision was formed to cover jubilee
and farewell benefits. Given the fact that the allowance for
jubilees is not part of the new collective labor agreement, a
provision for these costs is no longer necessary.
At present, no legal proceedings are pending for which a
provision should be formed.
All provisions are expected to be settled within one year.
26
66
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
13. CURRENT AND NON-CURRENT
LIABILITIES
The composition of, and movements in, the current and
non-current liabilities are as follows:
X € 1,000
Off-balance sheet rights
31/DEC/2015
31/DEC/2014
1,176
474
1,176
474
35,155
54,853
Deferred grants from Dutch
government
1,519
5,864
Deferred grants from other
governments
6,114
3,767
Accounts Payables
2,113
2,044
Taxes and social security
contributions
1,459
1,333
Reservation for leave days and
holiday allowance
1,664
1,712
Participations payable
4,454
10,607
408
674
52,887
80,854
Non-current liabilities
Project commitments
Current liabilities
Project commitments
Other accruals and deferred
income
14. OFF-BALANCE SHEET
COMMITMENTS AND
CONTINGENCIES
Financing contracts with donors
Cordaid signed several large fi nancing contracts or received
guarantees for carrying out specific projects in 2012-2015.
Cordaid recognizes the incoming resources from these fi nancing contracts and grant decisions in accordance with Dutch
Accounting Standard 274. Th is means that incoming resources
are recognized at the time resources are actually expended. The
difference between the income recognized and the actual
amount received in the form of contributions from donors is
recorded in the balance sheet. Th is results in a receivable if
more resources have been expended than received or in a
deferred grant if incoming resources are greater than those
expended. Therefore the full amount of the contract is not
disclosed in the annual accounts. Note: the Dutch accounting
standards and therefore the accounted cost can differ from
what was reported to the related donors as a consequence of
these differences in accounting standards.
Outstanding project commitments decreased €19.0m compared
to 2014 as a consequence of fi nalizing many projects within the
MFS II program. Only small fi nal payments related to MFS II
projects were included for 2015.
Deferred grants declined to €7.6m (2014: €9.6m). The main
reason was the receipt of an amount of €5.4m just before
year-end in 2014 and spent in 2015. Th is effect was partially
offset by the receipt of funding for the new phase of a project
in DR Congo from the Global Fund of which an amount of
€2.6m had not yet been spent at the end of 2015.
All current liabilities are payable within one year. All noncurrent liabilities fall due in less than five years.
MAY 2015
2016 © CORDAID
27
67
What follows is a list of fi nancing contracts and grant decisions where the amount to be spent is above €0.5m at December 31, 2015:
X € 1,000
FUNDING
ORGANISATION
DESCRIPTION OF
THE PROJECT
DURATION
Global Fund
Scale up HIV-AIDS
prevention, care and
treatment in 354 health
zones in DR Congo
Jul 2015 - Dec 2017
European Union
Enhancing the Food Security
and Disaster Resilience of
vulnerable communities in
Upper Nile State, South
Sudan
World Bank/Ministry of
Health Cameroon
CONTRACT INCOME INCOME INCOME INCOME
VALUE
2012
2013
2014
2015
CUMULATIVE BALANCE TO
INCOME
BE SPENT
72,501
-
-
-
9,250
9,250
63,251
Dec 2015 - Nov 2018
2,389
-
-
-
119
119
2,270
Results based financing of
public healthcare in
Cameroon
Jul 2012 - Jun 2016
8,188
224
1,687
3,116
998
6,025
2,163
European Union
Support of reconstruction of
basic health systems in
Bangassou and Bossangoa
Feb 2015 - Jul 2016
3,619
-
-
-
1,852
1,852
1,767
VNG International (1)
Interlinking peacebuilding,
decentralization and
development
Jul 2014 - Jun 2017
1,859
-
-
354
391
745
1,114
Dutch Ministry of
Foreign Affairs (2)
Provision of effective sexual
and reproductive health
services for next generations in Burundi, Rwanda
and DR Congo
Jan 2013 - Jun 2016
29,644
-
10,310
9,427
8,883
28,620
1,024
Royal Tropical Institute
(KIT) (3)
Reducing maternal
mortality and improving
accessibility of reproductive
health care in South Sudan
Jan 2013 - Dec 2015
1,953
-
15
23
903
941
1,012
European Union
Supporting resilience in
drought prone areas in
Borana Zone
Apr 2015 - Jun 2016
2,200
-
-
-
1,212
1,212
988
Adam Smith
International
Enhancing community
resilience through improved
access to education in
Samburu County
May 2015 - March
2016
1,122
-
-
-
225
225
897
European Union
Building resilience in
drought prone areas of Liben
zone
Apr 2015 - Jun 2016
1,600
-
-
-
792
792
808
Dutch Ministry of F
oreign Affairs
Monitoring Women's Peace
and Security in Afghanistan
July 2015 - Dec 2017
3,878
-
-
-
3,128
3,128
750
World Vision (4)
Dutch Relief Alliance: Joint
response Ethiopia
Nov 2015 - May 2016
787
-
-
-
55
55
732
Health Pooled Fund
Torit Hospital
Jan 2015 - Mar 2016
1,751
-
-
-
1,067
1,067
684
World Bank
Support for DRM framework
in Ethiopia
Sept 2015 - Dec 2016
602
-
-
-
-
-
602
World Bank
Reinforcing social
accountability of health
services in DR Congo
Nov 2014 - Oct 2018
642
-
-
-
70
70
572
Dutch Ministry of
Foreign Affairs (5)
Dutch Relief Alliance: Joint
response Centralafrican
Republic
May 2015 - March
2016
5,939
-
-
-
5,378
5,378
561
Dutch Ministry of
Foreign Affairs (6)
Results based financing of
government services in
Burundi and the DR Congo
Oct 2012 - Dec 2015
4,353
1,146
827
864
1,065
3,902
451
143,027
1,370
12,839
13,784
35,388
63,381
79,646
Grand total
1. VNG is the lead agent in a consortium of VNG, Cordaid and PAX for Peace. The grant was awarded by the Dutch Ministry of Foreign Affairs.
2. The proposal was made in an Alliance with Cordaid as lead agency. The other alliance members are Swiss TPH, I+ Solutions and HDP Rwanda.
3. The contract is part of a grant awarded by the Dutch Ministry of Foreign Affairs. The Royal Tropical Institute is the lead agency of the Alliance that made the project
proposal. Due to the ongoing civil war in South Sudan, project implementation was seriously delayed in 2013 and 2014. In 2015, the project came partially back up to
speed following the negotiation of an extension of the project period.
4. The Dutch Relief Alliance is a consortium of 13 Dutch NGOs including CARE, Dorcas, HealthNet-TPO, ICCO & Kerk in Actie, OXFAM-Novib, Stichting Vluchteling, TEAR
Foundation, Terre des Hommes, Save the Children, War Child, World Vision and ZOA working together in emergency situations. The Dutch Ministry of Foreign Affairs funds
the Dutch Relief Alliance. The consortium is led by a different lead agency per situation. For the response in Ethiopia, World Vision is the lead agency.
5. This project is also a grant for the Dutch Relief Alliance funded by the Dutch Ministry of Foreign Affairs. Cordaid is the lead agency for the response in the Central African
Republic.
6. The grant request was made in cooperation with Vereniging van Nederlandse Gemeenten (VNG) and the Center for International Legal Cooperation (CILC). Included in the
total awarded grant is an amount of €550k reserved for VNG and €568k for CILC.
28
68
MAY 2015
2016 © CORDAID
CORDAID’S 2015
FINANCIAL
STATEMENTS
At year-end, off-balance sheet liabilities for overheads were as
follows:
Other off-balance sheet rights
Cordaid has 17 legacies estimated at €0.5m which are still
subject to usufruct at the reporting date and therefore are
not reported as income in the statement of income and
expenditure.
X € 1,000
OFFICE LEASE
THE HAGUE
OFFICE LEASE
KINSHASA
TOTAL
996
110
1,106
2,822
0
2,822
0
0
0
3,818
110
3,928
Payable:
X € 1,000
USUFRUCT
Receivable:
- in less than 1 year
- between 1 and 5 years
- in less than 1 year
0
- between 1 and 5 years
527
- in more than 5 years
- in more than 5 years
Total
0
Total
527
Off-balance sheet commitments
At December 31, all project commitments were recognized on
the balance sheet. The last payments for the MFS II Alliance to
Alliance members are already recognized as a liability in the
balance sheet. No conditional project commitments exist. For
organizational costs, Cordaid’s policy wherever possible is to
avoid long-term contracts with suppliers that include fi xed
commitments. Almost all contracts can be terminated within
1 year or amounts payable are based on actual usage. Contracts
for office rent are the only exceptions.
During the reporting period, lease payments amounting to
€987k are included in the statement of income and
expenditure.
Cordaid has sublet a section of its office space to Mensen met
een Missie and Melania. The rent charged by Cordaid is in line
with current market prices for office rent. Transactions are
done at arm’s length.
15. OWN FUNDRAISING
X € 1,000
CORDAID
GENERAL
MENSEN IN
NOOD
KINDERSTEM
MEMISA
MICRO
CREDIT
BZN
TOTAL
2015
TOTAL
2014
302
5,511
4,389
6,252
308
372
17,134
18,447
0
124
2
84
10
0
220
260
1,518
3,251
90
4,518
0
9
9,386
7,058
0
0
0
4
0
6
10
79
Total 2015
1,820
8,886
4,481
10,858
318
387
26,750
25,844
Total 2014
1,321
7,625
4,897
11,171
387
443
Donations and gifts
Mailing campaigns
Legacies
Materials sold
25,844
Income from own fundraising amounted to €26.8m, €2.2m under budget, but €0.9m higher than in 2014.
The main cause for the increase compared to 2014 is the higher income from legacies and inheritances, offsetting to a significant
extent the decrease in donations and gifts. The number of legacies did not grow, but some high amounts made the average amount
per inheritance increase sharply.
Compared to budget, the results were below target especially on legacies and major donors. Income from individual gifts was in
line with budget, although the number of individual donors is still declining.
Net revenue from materials sold amounted to €10k; costs of materials sold were €34k, resulting in a net loss on sales of materials
of €24k.
MAY 2015
2016 © CORDAID
29
69
16. THIRD-PARTY CAMPAIGNS
17. GOVERNMENT GRANTS
X € 1,000
2015
2014
SHO – Nepal
2,300
-
206
1,358
SHO – Philippines
0
883
SHO – Haiti
0
17
Nationale Postcode Loterij
2,700
Stichting Bisschoppelijke Vastenaktie
2,509
SHO - Stop de ebola-ramp
Stop Aids Now!
Other organizations
Total income third-party campaigns
X € 1,000
2015
2014
Dutch Government - MFS II
27,335
82,162
2,561
4,595
39,997
10,933
World bank
528
9,382
2,700
Global Fund
16,483
10,633
2,258
European Union
4,794
706
Other
17,875
20,506
109,573
138,918
500
500
4,199
3,339
12,414
11,055
Dutch Government – Alliances
Dutch Government – Other
Total government grants
Incoming resources from third-party campaigns increased
€1.4m to €12.4m. Higher income from SHO campaigns, from
the Vastenaktie fund and more project adoptions are the
reasons for the rise. Compared to budget, the income for third
parties was under budget, due mainly to disappointing results
of fundraising in the US.
Government grants comprise programs income under the
Dutch government’s co-fi nancing program and project funding
provided by such bodies as the European Union, the Dutch
government, the Global Fund and various United Nations
organizations. Incoming resources from government grants
totaled €109.6m in 2015, down €29.3m on 2014. Compared to
budget the income from government grants was up by €4.7m.
Incoming resources via Stop Aids Now! (SAN!) amounted to
€0.5m (2014: €0.5m) and the contribution from the Dutch
National Postcode Lottery (NPL) was €2.7m in 2015 (2014: €2.7m);
Cordaid did not receive any additional contributions in 2015.
Part of the income in the amount of €2.5m (2014: €2.6m)
recorded in third-party campaigns came from the BU
Netherlands matching fund. Various Dutch public interest
organizations raise funds for this matching fund and Cordaid
matches their donations. Cordaid and the public interest
organizations then work together to donate these funds to
common charitable causes.
The lower income recognized from the Dutch government’s
co-fi nancing program is the main cause for the lower income.
The lower income is a consequence of lower expenditure
towards the end of the MFS II program.
Excluding this effect, income from government grants rose
€25.3m compared to the previous year, reflecting the relatively
high success rate Cordaid achieves in tenders. The increase is
due mainly to higher income from the thematic funding by the
Dutch Government (especially related to the Dutch Relief
Alliance), higher income from the Global Fund project in DR
Congo and more project funding from the European Union.
Cordaid has signed a number of very large contracts with other
institutional donors over the past three years. Income from
these grants is only recognized if subsidized costs are incurred
or if a legal payment obligation towards partner organizations
exists. An overview of income per contract or the contract with
a total value above €1.0m can be found in note 14.
30
70
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
18. GAINS ON FINANCIAL ASSETS
Gains and losses on fi nancial assets issued in connection with
objectives comprise interest and commission received on loans
and participations, as well as project income and currency
gains and losses.
X € 1,000
2015
2014
2013
-439
4,439
6,645
2,520
1,983
1,507
101
-136
189
Revaluation of participations
-1,426
228
-1,032
Currency gains and losses
2,705
2,861
-2,450
Allocated to/withdrawn from
provision for loans and guarantees
-1,328
-720
-715
2,133
8,655
4,144
Approved MFS II grants
Interest received on loans and
guarantees
Income from dividends/provision
guarantees
Compared to 2014, the income from investments decreased to
€0.1m. Th is disappointing result can be explained as follows:
The historically low interest rate throughout the year lowered
the income from bonds and liquid assets throughout the year.
In addition, Cordaid’s portfolio of bonds managed by Schretlen
decreased in value between January and the moment the
portfolio with Schretlen was sold in July 2015 by approximately
€0.7m. Given the low interest rates and disappointing market
for bonds (also in the longer term) Cordaid decided to adjust its
investment strategy towards a slightly higher risk profi le,
although still within the category defensive to neutral. ING
and Van Lanschot were appointed as asset manager to implement this new investment strategy. Unfortunately, the stock
market performed badly in the second half of the year, just
after the switch to a more stock-based portfolio, resulting in
€0.1m unrealized capital losses at the end of 2015.
20. OTHER INCOME
X € 1,000
Th is item comprises operating gains and losses on the Loans &
Guarantees program. The gains on fi nancial assets went down
from €8.7m in 2014 to €2.1m in 2015. As no new investments
were made with MFS II funding, the contribution from these
funds was €0.4m negative (2014: €4.4m positive). A negative
result on revaluation of participations and a net addition of
€1.3m to the provision for bad loans and guarantees are the
other reasons for the decrease in gains on fi nancial assets.
19. INVESTMENT INCOME
Investment income includes interest and other income from
bond loans, interest earned on the bank account and currency
gains and losses. What follows is a five-year summary of this
item:
X € 1,000
2015
2014
2013
2012
2011
Interest received on
bonds
551
954
1,385
1,104
1,077
Interest received on cash
and cash equivalents
457
508
810
969
973
-680
860
-157
-189
-129
Unrealized capital gains
and losses
-117
1,233
-1,189
869
77
Gross investment income
211
3,555
849
2,753
1,998
-90
-53
-51
-43
-38
121
3,502
798
2,710
1,960
Realized capital gains
and losses
Investment costs
MAY 2015
2016 © CORDAID
2015
2014
- VAT refund
193
0
- Consultancies
553
173
27
294
773
467
- Other
In 2015, Cordaid received a one-off VAT refund for the years 2011
and 2012. In its search for new sources of funding, Cordaid
performs more consultancy services in areas closely related to
development aid. The income from these consultancy services
grew to €553k in 2015. Cordaid aims to further increase income
from this source in the near future.
71
31
21. SPENT ON OBJECTIVES
Comparison of 2015 program costs and program management costs with the budget
ACTUAL 2015
X € 1,000
PROGRAM
COSTS
PROGRAM
MANAGEMENT
BUDGET 2015
TOTAL 2015
PROGRAM
COSTS
PROGRAM
MANAGEMENT
COST
TOTAL BUDGET
2015
COST
Healthcare
54,335
2,519
56,854
54,801
2,131
56,932
Child & education
4,735
659
5,394
6,137
866
7,003
Disaster response
39,743
2,186
41,929
22,652
1,956
24,608
Women's leadership
4,579
975
5,554
7,068
619
7,687
Extractives
3,232
380
3,612
5,160
206
5,366
Security & justice
4,789
768
5,557
4,038
406
4,444
Entrepreneurship
1,101
610
1,711
4,405
486
4,891
1,286
987
2,273
2,185
625
2,810
10,809
1,375
12,184
10,099
1,082
11,181
-72
2,722
2,650
2,222
2,532
4,754
2,258
940
3,198
7,445
777
8,222
-4
0
-4
0
0
0
126,791
14,121
140,912
126,212
11,686
137,898
Urban matters
Cordaid Netherlands
Investments
Food Security
Other expenditure
Total cost of programs
Program costs in 2015 amounted to €126.8m, €0.6m above
budget. The main difference is due to greater expenditure on
disaster response. The high number of crises-affected areas in
2015 made it necessary to increase efforts in this field. The
various programs implemented with the Dutch Relief Alliance
consortium, funded by the Ministry of Foreign Aff airs, boosted
expenditure further. Expenditure in other fields was behind on
budget. Lower spending on MFS II programs and limited new
other funds for themes like Entrepreneurship, Food Security,
Extractives and Urban Matters constrained expenditure
compared to budget.
32
72
Expenditure on Investments is negative due to the exclusive
use of reused funds for new investments as MFS II funds are no
longer available and MFS II program-related activities had to be
ended before December 31, 2015. Few contracts were cancelled,
resulting in a net negative expenditure. Expenditure with
reused funds amounted to €7.2m, but is not included in the
statement of income and expenditure.
Total program management costs in 2015 stood at €14.1m,
€2.4m above budget. Lower allocation of costs to direct program
costs and additional costs for the reorganization are the causes
for this overrun.
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
22. COST ALLOCATION TO THE DIFFERENT ACTIVITIES
Cordaid uses different allocation keys to allocate costs, making
allowance where possible for the recommendations of VFI, the
Dutch Association of Fundraising Institutions. Costs are
allocated in two stages.
1. First, costs relating directly to programs, fundraising and
management & administration are recognized directly
within these items. Th is involves the costs of the business
units (programs), marketing & communication (public
information and fundraising), the Board of Directors
(management & administration) and Finance & Control
(management & administration). Costs incurred by the
Tender Desk are fully allocated to costs to secure government
grants.
2. Other costs allocated to programs, fundraising and management & administration include the costs of the departments
defi ned as head-office departments, such as the Corporate
Strategy Unit, Corporate Communication and Services
(Human resource management, IT and Facility management). FTEs are used as allocation key here.
For instance: direct dialogue (street/door/verification calls),
online donor campaigns, emergency relief mailing,
partnerships (attracting business donors).
▪ Category 50% FR / 50% PI: Activities involving a request for
donations, where equal weight is attributed to the
fundraising and the public information components. For
instance: events, TV donor recruitment, Margriet magazine.
▪ Category 25% FR / 75% PI: Activities focusing primarily on
public information/awareness, but also involving a request
for donations. For instance: donor magazine, written ads/TV
and radio ads.
▪ Category 0% FR / 100% PI: Activities with no fundraising
aims and no request for donations. For instance: thank-you
campaigns, online information campaigns, Annual Reports,
TV information campaigns, education, public information
events.
▪ Activity-based category: Any costs incurred for an activitybased category are allocated to this category as soon as they
are incurred. For instance: house-style materials (e.g. design
in DM house style, donor magazine or Annual Report),
memberships (e.g. of VFI, DDMA), market research (e.g. donor
satisfaction survey, result analysis).
For the 2015 budget, public information and fundraising costs
were categorized and a list was prepared for each category
outlining the specifics of the percentage of costs that should be
allocated to fundraising (FR) and to public information (PI).
What follows is a list of key activities/costs.
▪ Category 100% FR / 0% PI: Fundraising activities focusing
fully on generating donations. For instance: door-to-door
collections, notarial deeds for legacies.
▪ Category 75% FR / 25% PI: Activities focusing on both
existing and new donors. These activities involve a clear
request for donations, with a limited public information
campaign about the programs/themes in question.
The above list of key activities/costs was used to decide on the
2015 budget for both fundraising costs and public information.
The relative division between the two activities was:
1. Fundraising Cost:
50.0% (2014: 50.2%);
2. Public Information:
50.0% (2014: 49.8%)
These percentages were used to allocate the total 2015 marketing
& funding budgets over the two activities.
Costs incurred by the Cordaid departments by the cost categories disclosed in the statement of income and expenditure:
PUBLIC
INFORMATION /
AWARENESS
CAMPAIGNS
PROGRAM
COSTS
COST OF OWN
FUNDRAISING
ACTIVITIES
COSTS OF
OBTAINING
INCOME
FROM THIRD
PARTY
CAMPAIGN
COST OF
SECURING
GOVERNMENT
GRANTS
INVESTMENT
COSTS
MANAGEMENT
AND ADMINISTRATION COST
ACTUAL
2015
BUDGET
2015
ACTUAL
2014
0
114,266
0
0
0
0
0
114,266
119,242
142,062
Publicity and
communication
2,532
336
2,532
898
10
0
67
6,375
9,087
8,867
Staff
1,703
19,972
1,703
0
451
0
3,177
27,006
20,943
24,742
11
2,018
11
0
8
0
118
2,166
798
2,236
Housing
88
799
88
0
24
0
158
1,157
1,411
1,365
Office & General
227
3,522
227
0
45
0
1,445
5,466
3,300
4,559
0
0
0
0
0
90
0
90
140
53
Total
4,561
140,913
4,561
898
538
90
4,966
156,526
154,921
183,884
Budget 2015
5,395
137,899
5,395
900
747
140
4,447
Actual 2014
5,743
166,820
5,789
730
552
53
4,197
RESOURCES
EXPENDED
(X € 1,000)
Grants and
contributions
Travel and
accommodation
Investment costs
MAY 2015
2016 © CORDAID
154,921
183,884
73
33
The overall costs in 2015 come in at €1.6m over budget and €27.4
below the previous year. The largest deviations from budget were:
▪ Grants and contributions were €5.0m below budget due to
lower spending on programs and a shift from nonoperational costs to operational costs.
▪ Costs for publicity and communication were €2.7m below
budget. During the year the decision was taken to reduce
spending on fundraising and communication to keep costs
in line with the income from own fundraising.
▪ Staff costs were €6.1m over budget. The main additional
costs came from costs for the redundancy provision and
costs for redundant staff paid throughout the year. The
slight decrease in average FTEs was offset by the increase in
salary costs in line with the new collective labor agreement.
Furthermore, a shift between non-operational program
costs and operational program costs caused a higher cost for
staff in 2015 compared to budget.
▪ Travel and accommodation costs are €1.4m higher than
budget. The number of monitoring and technical assistance
visits was increased and more journeys were made to
enhance cooperation between Country Offices and Head
Office as a consequence of the more important role of
Country Offices in Cordaid’s operations. Additionally, more
partners were visited in relation to the termination of the
relationship as a consequence of the end of MFS II.
Office, general and administrative expenses include costs
incurred for telecommunications, IT, advisory services and
field offices. In addition to these costs, office, general and
administrative expenses also include fees charged by
PricewaterhouseCoopers Accountants N.V., our independent
auditor. Total audit and advisory fees charged by
PricewaterhouseCoopers Accountants N.V. stood at €398k in
2015 (2014: €403k). These fees can be broken down as follows:
▪ audit fees for the Annual Report and annual accounts for
2015: €195k;
▪ audit fees for the execution of project audits: €98k;
▪ tax advisory fees involving VAT (refer to section other
income) and income tax: €105k;
▪ fees for other non-audit services: €0k
The fees above relate to all the work performed at Stichting
Cordaid and entities included in the consolidated accounts by the
audit firms and auditors mentioned in article 1, section 1 Wta
(Wet toezicht accountantsorganisaties) and the fees charged by
the network of the audit firm. The fees relate to the fiscal year
2015, although the related work can be executed in other years.
Additionally, €159k was spent on local audits and audits of
partner organizations. These audits were carried out by audit
fi rms other than PricewaterhouseCoopers Accountants N.V.
Fundraising activities
Own fundraising cost was under budget due to cost reductions
made throughout the year to keep the fundraising cost in line
with the projected income from own fundraising. The cost of
securing government grants is €0.2m below budget due to less
time spent on securing these funds than expected.
Management and Administration
The cost of management and administration was €0.5m over
budget. Costs relating to the reorganization, including the
addition to the redundancy provision, caused this overrun.
34
74
23. COST OF STAFF
TOTAL STAFF
2015
2014
Head count in The Hague
250.0
288.0
41.0
47.0
291.0
335.0
142.7
144.0
Head count expats at field offices
(working abroad)
Total head count
Program staff
Fundraising and awareness staff
28.5
31.9
Other departments
74.6
70.7
245.8
246.6
Total average number of FTEs in
The Netherlands
At year-end 2015, Cordaid had a headcount of 291 (2014: 335), of
whom were 168 women and 123 men.
X € 1,000
2015
2014
- Salaries and wages
19,565
18,633
- Social security contributions
2,293
2,095
- Pension costs
1,616
1,580
- Temporary staff
396
438
- Cost of training and education
520
561
- Other personnel expenses
2,617
1,435
27,007
24,742
Salary costs was relatively stable in 2015 compared to 2014,
except for the effect of additonal costs incurred through the
reorganization. The avarage number of FTE was only 0.8 FTE
below last year. The avarage salary costs rose somewhat
because of the general salary rise that was agreed upon in the
collective labor agreement. Th roughout the year additional
costs for the reorganization were made in preparation of this
reorganization and a few redundancy payments had already
been made. Furthermore, the creation of a redundancy
provsion of €2.4m increased other personnel costs considerably.
Cordaid’s pension plan is administered by the Zorg en Welzijn
Pension Fund, a pension fund for the health and welfare sector.
Employees’ retirement and partner pensions are based on their
pensionable salary for full-time employment, net of the
state-pension offset. The pension fund endeavors to index-link
any accrued pension entitlements and pensions in payment
based on general salary trends in the collective bargaining
agreements that govern its affi liated employers in a particular
year. The pension fund decides every year whether index-linking would be appropriate and, if so, what index to use given the
fi nancial situation and expected developments in that situation. In doing so, the pension fund uses nominal and realistic
coverage ratios as benchmarks. Although the pension fund may
decide to apply catch-up index linking, such a decision will not
have a retroactive effect and will not trigger subsequent
payments. Index linking is funded partially from contributions
and partially from the return on plan assets. The coverage ratio
was 97% at 31 December 2015.
Contributions are recognized as employee benefits expense as
soon as they are payable. Prepaid contributions are recognized
within prepayments and accrued income if they entail a refund
or a reduction in future payments. Contributions payable are
disclosed as liabilities in the balance sheet.
MAY 2015
2016 © CORDAID
CORDAID’S 2015
FINANCIAL
STATEMENTS
24. RELATED PARTIES
25. EXECUTIVE REMUNERATION/
’WET NORMERING TOPINKOMENS’
(WNT) REPORT
Introduction
As part of Cordaid’s transition to a more social entrepreneurial
approach, Cordaid wants to help develop new ideas for start-ups
aimed at social impact. In addition, Cordaid wants to professionalize the management of its social impact investments
further and aims to increase its impact by fi nding external
investors. To facilitate these changes Cordaid established two
foundations and two private limited companies (BVs). Stichting
Cordaid has full control of all these entities and they are
therefore classified as related parties. In addition, on December
31, 2014 Cordaid established a foundation to pay salaries to
expats working for Stichting Cordaid.
Cordaid identified the following related parties:
February 12, 2015)
▪ Cordaid Investment Management BV, The Hague
(established June 10, 2015)
Related party transaction:
During 2015, all transactions with related parties noted above
were done at arm’s length. The nature of the transactions is
mainly funding of the activities of the different entities by
Stichting Cordaid. The Social Business Incubator develops ideas
for social enterprises, Cordaid Investment Management BV
manages the Loans & Guarantees fund of Stichting Cordaid
and Stichting Participaties holds the shares of Corpav BV.
Corpav BV holds shares in one local investment in South Sudan
(Finance South Sudan), which is part of the fi nancial fi xed
assets on Cordaid’s consolidated balance sheet.
Executive remuneration
The Supervisory Board has adopted an executive remuneration
policy including the level of executive remuneration and other
pay and benefits. The policy is updated periodically and was
evaluated most recently in 2011. In determining the remuneration policy and adopting the remuneration level, Cordaid
follows the recommendations for fundraising institutions
issued by the VFI and the Wijffels Code (see www.vfi .nl). The
recommendations use weighting criteria to set a maximum for
an executive’s annual income. The most recent VFI standard
(January 1, 2012) is used to determine these weighting criteria,
which is a responsibility of Cordaid’s Controller. Th is has
resulted in a so-called BSD score of 496 points for the CEO, with
a maximum annual income of €140,046, and 456 points for the
COO/CFO, with a maximum annual income of €124,233. The
actual executive remuneration for 2015 stood at €121,210 per
year for the CEO, Simone Filippini (based 1 FTE for a full year);
at €122,939 per year for the COO until September 30, 2015, Henri
van Eeghen (based on 1 FTE for a full year); and €111,633 for the
CFO, who joined on September 1, 2015, Willem Jan van Wijk
(based on 1 FTE for a full year). In other words, their remuneration is well within the maximum amounts defi ned by VFI.
Executive remuneration is comprised of gross salary costs
inclusive of holiday allowance, social security contributions,
pension costs, expense allowances and year-end allowance. As
a rule, all employees receive a year-end allowance. The cost of
the Supervisory Board consists of expenses for general and
special meetings and travel costs. In 2015 these costs were
€11,029 (2014: €20,847).
At 31 December 2014, the members of the Board were:
S.L.J.M. FILIPPINI
CEO
H.L. VAN EEGHEN
COO
W.J. VAN WIJK
CFO
permanent
permanent
permanent
36
36
36
Employment contract
Duration
Number of hours
part-time percentage
Period
Gross salary
100
100
100
1/1 - 12/31
1/1 - 9/30
1/9 - 12/31
103,374
78,831
32,042
Holiday allowance
8,270
6,306
2,296
Year-end allowance
9,266
7,066
2,573
Variable pay
300
0
300
121,210
92,203
37,211
9,943
7,141
3,515
80
4,751
844
11,073
8,311
3,677
21,096
20,203
8,036
Total remuneration for 2015
142,306
112,406
45,247
Total remuneration for 2014
142,029
153,566
0
Total annual income
Social security contributions (employer’s share)
Taxable allowances (Public transport abonnement)
Pension costs (employer’s share)
MAY 2015
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35
Report for ´Wet normering topinkomens (WNT)´
Starting January 1, 2013, the Dutch ‘Wet normering bezoldiging
topfunctionarissen publieke en semipublieke sector (WNT)’ Act
applies for Stichting Cordaid. The report below is prepared in
line with the applicable regulation for Cordaid. As of 2015, the
WNT-maximum for development aid applies.
The maximum remuneration according to the WNT for Cordaid
in 2015 is €163,000 for executives. The reported maximum
amount per person and function is calculated based on the
full-time equivalent in the labor agreement of the executive
concerned. The full-time equivalent can never exceed 1.0. For
members of the Supervisory Board, a maximum of 15.0%
(chairman) or 10.0% (other members) of the maximum remuneration of €163,000 for executives applies.
EXECUTIVES
AMOUNT IN €1
EXECUTIVES
S.L.J.M. FILIPPINI
H.L. VAN EEGHEN
W.J. VAN WIJK
Chief Executive Officer
Chief Operations Officer
Chief Financial Officer
Duration employment in 2015 (days)
365
273
122
Full time equivalent during the year
1.0
1.0
1.0
Former executive?
No
No
No
(Fictive) employment
Yes
Yes
Yes
120,910
92,203
36,911
80
4,751
844
11,073
8,311
3,677
300
0
300
132,363
105,265
41,732
163,000
121,915
54,482
Employment
Function
Remuneration
Remuneration
Taxable allowances
Provisions for future payments
Variable pay
Total remuneration for WNT
Applicable maximum
The remuneration for Henri van Eeghen in 2015 concerns nine months. The remuneration of Willem Jan van Wijk concerns four
months in 2015. Henri van Eeghen was the Chief Operations Officer of Cordaid. Just before his departure he was replaced by
Willem Jan van Wijk who was appointed as Chief Financial Officer. The former COO, Henri van Eeghen, did not receive any
payment on termination of employment.
36
76
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
SUPERVISORY BOARD
AMOUNT IN €1
SUPERVISORY BOARD
E.M.H. HIRSCH BALLIN
B.L.J.M. VAN DIJK
C.E.G. VAN GENNIP
Chair
Member
Member
365
365
195
Remuneration
0
0
0
Taxable allowances
0
0
0
0
0
0
0
0
0
24,450
16,300
8,708
M.S. MENÉNDEZ
J. VAN BUSSEL
L.C. ZEVENBERGEN
Member
Member Audit Committee
365
365
365
Remuneration
0
0
0
Taxable allowances
0
0
0
0
0
0
0
0
0
16,300
16,300
16,300
M.C.T. VAN DE COEVERING
S. DE BOER
M. VAN BEEK
Member
Member
365
365
365
Remuneration
0
1.563
0
Taxable allowances
0
0
0
0
0
0
0
1.563
0
16,300
16,300
16,300
Function
Duration of function in 2015 (days)
Remuneration
Applicable maximum
AMOUNT IN €1
Function
Remuneration
Applicable maximum
AMOUNT IN €1
Function
Remuneration
Applicable maximum
No employees or temporary staff of Cordaid received remuneration above the WNT-maximum in 2015. Nor was remuneration
paid that was or had to be disclosed based on the WOPT or WNT in previous years. In 2015, Cordaid did not pay termination of
employment payments to former employees that should be reported in these annual accounts based on the WNT.
MAY 2015
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37
26. BALANCE SHEET AND STATEMENT OF INCOME AND EXPENDITURE
FOR BUSINESS UNIT INVESTMENTS
An important part of Cordaid’s activities is related to non-grant
projects. Instead of providing a grant to partner organizations,
Cordaid provides loans or guarantees to its partners or it
participates in social entrepreneurships with the same
objectives as Cordaid. The partner organizations involved are
different from Cordaid’s regular partner organizations. Rather
than NGOs or grass-roots organizations, Cordaid mainly
supports Microfi nance institutions, local banks or social funds.
Until June 30, 2015, these activities were managed by the
Investments Business Unit, which was an integral part of
Stichting Cordaid. In order to increase the impact of this social
impact portfolio, Cordaid decided to separate the management
of this portfolio from the regular activities of Stichting Cordaid
and founded Cordaid Investment Management B.V.. The main
objective of the separate entity is to further professionalize
fund management and to increase the impact of these social
impact investments by fi nding new external investors to
increase the scale of the activities.
Cordaid presents a separate statement of income and expenditure and balance sheet for activities related to the Loans &
Guarantees Fund.
All figures originate from the figures in Cordaid’s fi nancial
statements. The principles for valuation of assets and liabilities
and revenue recognition are the same in the statements below,
only the classification and presentation of several items differ.
The costs for managing the fund incurred by Cordaid
Investment Management B.V. are included in the statement of
income and expenditure and charged to the Loans &
Guarantees Fund in full as long as Cordaid is Cordaid
Investment Management B.V.’s only client.
All items in this fi nancial overview can be traced to items in
the figures presented above, except for cash and investments.
Cash and investments are allocated to the Loans & Guarantees
Fund based on the division made in Cordaid’s fi nancial
administration. The fund has separate and designated bank
accounts, and investments are administered separately.
As stakeholders interested in Cordaid’s social impact investment portfolio and the work of Cordaid Investment
Management B.V. can have information needs other than the
information disclosed in Cordaid’s fi nancial statements,
The right-hand column in the statements below refers to the
notes where the corresponding item can be found in Cordaid’s
full fi nancial statements.
BALANCE SHEET INVESTMENTS BUSINESS UNIT AS OF DECEMBER 31, 2015
X €1,000
NOTE
31/DEC/15
31/DEC/14
ITEM IN
CORDAID FS
Assets
Net financial fixed assets issued for objectives
- Debt
31,682
30,673
- Equity
24,262
26,432
- Guarantees
1
2,481
4,651
58,425
61,756
-7,844
- Undisbursed loans and guarantees
3
-946
- Loan Losses
4
-2,200
-1,733
-3,306
-9,577
Net financial fixed assets issued for objectives
5
55,279
52,179
6
Net financial floating assets
Current account Cordaid
6
Non-Development investments
Cash and bank
2,322
-750
9,915
18,838
7
30,609
34,315
10
Net financial floating assets
42,846
52,403
Total Assets
98,125
104,582
Equity and liabilities
Equity (Loans & Guarantees Fund)
Fund Loans & Guarantees until prior year
7
93,964
83,996
Capital contributions fiscal year
8
-439
4,439
Operating income fiscal year
9
-262
4,578
Recharged overhead fee fiscal year
10
60
11
951
93,323
93,964
11
Liabilities
Current liabilities
Undisbursed Equity participations
Total Equity and liabilities
1.
2.
3.
38
78
348
10
4,454
10,608
13
4,802
10,618
98,125
104,582
Total Debt, Equity and Guarantees: Gross amount of all Cordaid Investments commitments at year-end, distributed over various instruments. The overall level has decreased from €61.8m in
2014 to €58.6m in 2015. New commitments on all instruments did not surpass de-commitments, repayments and write offs in the year. Downward revaluation of equity was another factor
in the overall decrease.
Equity: Equity investments have decreased because no new fund participations were closed in 2015. The net revaluation of the equity led to a decrease in value of €0.2m and equity was
sold for an amount of €1.4m.
Undisbursed loans and guarantees: This refers to the undisbursed amounts of the debt and guarantee instruments.
MAY 2015
2016 © CORDAID
FINANCIAL
CORDAID’S 2015
STATEMENTS
Loan Losses: The amount of €2.4m loan losses equals total provisioning for loans and guarantees. Provisioning is made in line with the Provisioning and write-off policies of Cordaid
Investment Management B.V.
5. Total net financial assets issued for objectives: Total net financial assets, as per the table, increased €3.1m to approximately €55.3m, mainly because of the fall in undisbursed loans and
guarantees.
6. Current account Cordaid: This amount consists of interest receivables of cash held by Stichting Cordaid offset by costs paid by Stichting Cordaid on behalf of Cordaid Investment
Management B.V. As activities and transactions will be further separated in 2016, this current account will be settled during 2016.
7. Loans & Guarantees Fund until year-end 2014: Accumulated capital position of the fund at the beginning of 2015 amounting to €94.0m.
8. Capital contributions fiscal year: Outflow of de-committed ‘MFS’ investments and other Cordaid Funds over 2015 (see note 11 of the statement of income and expenditure).
9. Operating income fiscal year: Retained earnings over the reporting period (see note 10 of the statement of income and expenditure).
10. Recharged overhead fee fiscal year: The overhead fee allocated to the income of the fund is a percentage of the spending on ‘MFS’ objectives. The fee is a compensation for overhead costs
to manage the fund. With the end of MFS II and the separation of Stichting Cordaid and Cordaid Investment Management B.V. this overhead fee will not be added to the fund in the future
(see note 12 of the statement of income and expenditure).
11. Equity (Loans & Guarantees Fund): Total value of the fund is €93.3m, a small decrease in comparison to the previous year. The decrease is mainly due to the negative capital contributions
(€0.4m), a high addition to provision for bad loans (€1.3m) and relatively high operating expenses due to investments in new IT systems for Cordaid Investment Management B.V. (€0.3m).
12. Undisbursed equity participations: This refers to the undisbursed tranche of equity investment. It decreased by €6.1m because of the fulfillment of commitments of new participations
committed but not yet paid up in 2014. Please note that this has been considered a liability since 2010, in line with Dutch accounting principles.
4.
STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED DECEMBER 31, 2015 FOR
THE LOANS & GUARANTEES FUND
X €1,000
NOTE
2015
2014
ITEM IN
CORDAID FS
Financial income
Interest income & fees
1+2
2,520
1,983
Dividends
1+2
101
-136
Capital gains
3
0
0
Income from non-development investments and cash
4
-203
2,295
2,418
18
19
4,142
Financial expenses
Additions Loan Losses
5
1,328
720
18
Revaluation Investments
6
1,426
-228
18
Currency results
7
-2,705
-2,861
Margin on financial activities
18
49
-2,369
2,369
6,511
Operating expenses
Operating expenses direct
8
1,645
1,138
Operating expenses indirect
9
934
795
Financial result from investing activities
11
11
2,579
1,933
-210
4,578
Non-operating income
Capital contributions
10
-439
4,439
Recharged overhead fee
11
60
951
Net result Loans & Guarantees Fund
Approvals grant reserve
Net result
12
18
11
-379
5,390
-589
9,968
-52
11
0
-641
9,968
1+2. Interest Income & Fees + Dividends: These items refer to interest income on senior/subordinated debt, guarantee fees and dividends received. The overall level increased in comparison
to 2014.
3.
Capital Gains: This item relates to capital gains or losses on realized equity exits. No gains or losses were realized in 2015.
4.
Income non-development investments and cash/cash equivalents: This item refers to income on long and short-term excess liquidity, which is out of the scope of the managed
portfolio by Cordaid Investment Management B.V. More information on the disappointing result of non-development can be found in note 19 tot the financial statements.
5.
Additions loan losses: This reflects the net addition to the loan losses in the portfolio. The amount stated is the net result of the release of provisions and the actual impaired loans and
guarantees or write-offs. Due to a possible fraud case, a considerable addition to the provision was made at the end of 2015. As a consequence, the provision as a percentage of the
gross loan portfolio was 7.6% at the end of 2015, compared to 6.7% at the end of 2014.
6.
Revaluations Investments: This refers to the annual revaluation of the equity participations. Cordaid Investments values equity participations conservatively using the lower value of
a) acquisition price, or b) the value of the Cordaid share as per the end of 2015.
7.
Currency results: The euro weakened again against most currencies in 2015, most notably against the US dollar. This has resulted in a currency gain of €2.7m of which €1.4m relates to
unrealized currency gains on equities that were revalued downward in local currency in 2015.
8.
Staffing direct: This refers to the total salary costs of the Business Unit Investments and Cordaid Investment Management B.V. plus other operational cost (such as training, legal advice
and consultancy). The increase in cost compared to prior year relates to higher number of FTE and costs for the renewal of IT systems used by Cordaid Investment Management B.V.
9.
Staffing indirect: This refers to the Cordaid corporate overhead costs charged to Cordaid Investments which are allocated pro rata to Cordaid Investments’ FTEs in the total Cordaid
FTEs. In 2015, only 80% of the total allocated costs was charged to the Loans & Guarantees Fund; the other 20% is charged to grant activities of the Investments Unit, which are not
included in this statement of income and expenditure and administratively separated from the investment activities presented in this statement.
10. Capital Contributions: This refers to the inflow of funds as a result of de-commitments of MFS II projects and other Cordaid Funds. In order to enhance transparency on the
performance of Cordaid Investments this amount has been included as a separate source.
11. Recharged overhead fee: The overhead fee awarded to the fund is a fee for the management of MFS II activities within the Loans & Guarantees Fund. The fee is a compensation for
overhead costs. In order to enhance transparency in the performance of Cordaid Investments this amount has also been included as a separate source.
12. Net result Loans & Guarantees Fund: Net Income is negative mainly due to a disappointing result on non-development investments, the high addition to the provision for bad loans, the
negative capital contribution from MFS II funds and the costs for renewal of the IT systems.
MAY 2015
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39
OTHER INFORMATION
Provision in the constitution governing
the appropriation of balances
Country offices
According to article 11.4 of the constitution of Cordaid, the
Supervisory Board adopts the annual accounts drawn up by the
Board of Directors. Included in the annual accounts is a
proposal for the appropriation of positive or negative fi nancial
balances in the fi scal year concerned. The appropriation of the
balance takes into account the imposed restrictions on
spending by third parties.
Appropriation of result
Included in these annual accounts is the proposed appropriation of the negative balance of €4.8m as follows:
X € 1,000
FOR THE YEAR
ENDED 31
DECEMBER
2015
FOR THE YEAR
ENDED 31
DECEMBER
2014
Appropriation of funds
At the end of 2015 Cordaid had 13 branches in 12 countries. The
country offices monitor and/or implement the programs of
different Business Units in these countries. The branches are in
the following countries:
▪ Burundi
▪ Kenya
▪ Democratic Republic Congo (Kinshasa and Bukavu)
▪ Ethiopia
▪ Afghanistan
▪ Central-African Republic
▪ Haiti
▪ Zimbabwe
▪ Sierra Leone
▪ South Sudan
▪ Philippines
▪ Netherlands
Subsequent events
Cordaid did not identify any subsequent events affecting the
annual accounts as presented.
The balance of funds was
appropriated as follows:
Reserves
- continuity reserve
- other reserves
- earmarked reserves
-2,400
0
-62
446
-2,120
183
-4,582
629
Funds
- restricted funds
- semi-restricted funds
- loans & guarantees fund
Income from operating activities
40
80
-2,509
-2,796
3,061
-3,230
-641
9,968
-89
3,942
-4,671
4,571
-4,671
4,571
MAY 2015
2016 © CORDAID
CORDAID’S 2015
FINANCIAL
STATEMENTS
INDEPENDENT AUDITORS' OPINION
Independent auditor’s report
To: the board of directors and supervisory board of Stichting Cordaid
Report on the financial statements 2015
Our opinion
In our opinion the accompanying financial statements give a true and fair view of the financial position
of Stichting Cordaid as at 31 December 2015, and of its result for the year then ended in accordance
with the Guideline for annual reporting 650 ‘Charity organisations’ of the Dutch Accounting Standards
Board.
What we have audited
We have audited the accompanying financial statements 2015 of Stichting Cordaid, Den Haag (‘the
foundation’).
The financial statements comprise:

the statement of financial position as at 31 December 2015;

the statement of income and expenditure for the year then ended;

the notes, comprising a summary of the accounting policies and other explanatory information.
The financial reporting framework that has been applied in the preparation of the financial statements
is the Guideline for annual reporting 650 ‘Charity organisations’ of the Dutch Accounting Standards
Board.
The basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing.
Our responsibilities under those standards are further described in the section ‘Our responsibilities for
the audit of the financial statements’ of our report.
We are independent of Stichting Cordaid in accordance with the ‘Verordening inzake de
onafhankelijkheid van accountants bij assuranceopdrachten’ (ViO) and other relevant independence
requirements in the Netherlands. Furthermore, we have complied with the ‘Verordening gedrags- en
beroepsregels accountants’ (VGBA).
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Ref.: e0380164
PricewaterhouseCoopers Accountants N.V., Newtonlaan 205, 3584 BH Utrecht, P.O. Box 85096,
3508 AB Utrecht, The Netherlands
T: +31 (0) 88 792 00 30, F: +31 (0) 88 792 95 08, www.pwc.nl
‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V.
(Chamber of Commerce 34180284), PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V.
(Chamber of Commerce 51414406), PricewaterhouseCoopers Pensions, Actuarial & Insurance Services B.V. (Chamber of Commerce 54226368),
PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services are governed by General Terms
and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms and Conditions
of Purchase (‘algemene inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions
and the General Terms and Conditions of Purchase, which have also been filed at the Amsterdam Chamber of Commerce.
MAY 2015
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41
Responsibilities of the board of directors and the supervisory board
The board of directors is responsible for:

the preparation and fair presentation of the financial statements and for the preparation of the
directors’ report, both in accordance with the Guideline for annual reporting 650 ‘Charity
organisations’ of the Dutch Accounting Standards Board; and for

such internal control as the board of directors determines is necessary to enable the preparation
of the financial statements that are free from material misstatement, whether due to fraud or
error.
As part of the preparation of the financial statements, the board of directors is responsible for
assessing the foundation’s ability to continue as a going concern. Based on the financial reporting
framework mentioned, the board of directors should prepare the financial statements using the going
concern basis of accounting unless the board of directors either intends to liquidate the foundation or
to cease operations, or has no realistic alternative but to do so. The board of directors should disclose
events and circumstances that may cast significant doubt on the foundation’s ability to continue as a
going concern in the financial statements.
The supervisory board is responsible for overseeing the foundation’s financial reporting process.
Our responsibilities for the audit of the financial statements
Our responsibility is to plan and perform an audit engagement to obtain sufficient and appropriate
audit evidence to provide a basis for our opinion. Our audit opinion aims to provide reasonable
assurance about whether the financial statements are free from material misstatement. Reasonable
assurance is a high but not absolute level of assurance which makes it possible that we may not detect
all misstatements. Misstatements may arise due to fraud or error. They are considered to be material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
A more detailed description of our responsibilities is set out in the appendix to our report.
Announcement with respect to the directors’ report
We have read the directors’ report in order to identify material inconsistencies, if any, with the audited
financial statements. Based on reading the directors’ report we confirm, to the extend we can assess,
that the directors’ report is consistent with the information in the financial statements and that the
directors’ report contains all information required by Guideline for annual reporting 650 ‘Charity
Organisations’ of the Dutch Accounting Standards Board. We have not audited or reviewed the
information in the directors’ report.
Utrecht, 25 May 2016
PricewaterhouseCoopers Accountants N.V.
Original signed by M.H.A. Bauman RA
Stichting Cordaid – Ref.: e0380164
Page 2 of 3
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CORDAID’S 2015
FINANCIAL
STATEMENTS
Appendix to our auditor’s report on the financial statements
2015 of Stichting Cordaid
In addition to what is included in our auditor’s report we have further set out in this appendix our
responsibilities for the audit of the financial statements and explained what an audit involves.
The auditor’s responsibilities for the audit of the financial statements
We have exercised professional judgement and have maintained professional scepticism throughout
the audit in accordance with Dutch Standards on Auditing, ethical requirements and independence
requirements. Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error. Our audit
consisted, among others of the following:

Identifying and assessing the risks of material misstatement of the financial statements, whether
due to fraud or error, designing and performing audit procedures responsive to those risks, and
obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the intentional override of internal control.

Obtaining an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the foundation’s internal control.

Evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the board of directors.

Concluding on the appropriateness of the board of directors’ use of the going concern basis of
accounting, and based on the audit evidence obtained, concluding whether a material
uncertainty exists related to events and/or conditions that may cast significant doubt on the
foundation’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report and
are made in the context of our opinion on the financial statements as a whole. However, future
events or conditions may cause the foundation to cease to continue as a going concern.

Evaluating the overall presentation, structure and content of the financial statements, including
the disclosures, and evaluating whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with the supervisory board regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
Stichting Cordaid – Ref.: e0380164
Page 3 of 3
MAY 2016 © CORDAID
83
43
GRI CONTENT INDEX FOR ‘IN ACCORDANCE’ – CORE
GRI CONTENT INDEX FOR ‘IN ACCORDANCE’ – CORE
Global Reporting Initiative (GRI)
In our 2015 annual report, Cordaid has incorporated GRI, version 4 (G4) requirements in our reporting. The aim is to improve and
expand reporting in the coming years. Over 2015, we are reporting according to the G4 ‘in accordance “core”’ standard. Throughout
the annual report, you will find the G4 label G4 that shows where we have included G4 compliant information. In line with G4
requirements, we state that:
‘This report contains Standard Disclosures from the GRI Sustainability Reporting Guidelines.’
GENERAL STANDARD DISCLOSURES
General Standard
Disclosures
Page
Comments
G4-1
3-4, 5, 32-35
Vision, strategy, trends, key events, achievements, failures and aims for 2016.
G4-3
5 and 49
Name of organization
G4-4
6-22, 26-27, 31, 49
Brands, products and services
G4-5
49
Location headquarters
G4-6
25
Where we work
G4-7
49
Ownership and legal form
G4-8
6, 8-9, 12-13, 17-18,
21, 24-25
Markets served, geographic, activities
G4-9
30-31, 36-38
Scale of organization: people, net revenues, total capitalization, amount spent
G4-10
36
People in numbers
G4-11
-
Employees covered by CLAs: will be included in 2016
G4-12
-
Describe the organization’s supply chain: in progress
G4-13
32-35
Describe significant changes in size, structure, ownership, supply chain.
G4-14
35, 54
Risk management
G4-15
41
Charters
G4-16
25
Memberships
G4-17
49
Consolidated entities
G4-18/19
-
Materiality aspects: still in progress
G4-20/21
-
Still in progress
G4-22
Not applicable
Restatements
G4-23
Not applicable
Significant changes in reporting boundaries
G4-24
26
Stakeholders
G4-25
Not applicable
Basis for stakeholder identification/selection.
G4-26
26-28
Communication with stakeholders
G4-27
28-29
Topics/concerns raised by stakeholders
G4-28
51
Reporting period
G4-29/30
Not applicable
Date most recent report: Cordaid reports annually per calendar year
G4-31
Not applicable
Contact person
G4-32
4
In accordance option: ‘core’
G4-33
81
External assurance: Independent Auditor’s Report
G4-56
41
Ethics and integrity: values, principles, Codes of Conduct
84
MAY 2016 © CORDAID
contact
P.O. Box 16440
2500 BK The Hague
Lutherse Burgwal 10
2512 CB The Hague
The Netherlands
+31(0)70-31 36 300
cordaid@cordaid.nl
www.cordaid.org

CORDAID ANNUAL REPORT 2015

Transcription

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