cevi annual report fy 2009

8/19/2019 CEVI Annual Report FY 2009

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NUAL REPORT

ANNUAL REPORT 200

CEVICommunity Economic Ventures,

Quality

Integration&


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Introduction3.....General Introduction About Microfinance & VisionFund4.....Country Specific and MFI Introduction5.....Client Image with Accompanying Client Story

Summary6.....Fiscal Year MFI Highlights7.....Achievements for the Year8.....Endorsing Quote from MFI Senior Leadership Person

Overview9.....Who is VisionFund and How Does VisionFund Work?9.....Commentary on Global Network (including VFI and WVI)10...What is Microfinance?

Governance12....Message from Scott Brown

14....Message from Board Member Chairperson15....Message from MFI CEO16....Board of Directors

Operations19....Areas of Operation20....How Does the MFI Operate21....Product Portfolio22....General Introduction to Unique Holistic Model of Development24....Endorsing Quote from MFI Leader in Operations

Social Performance26....Client Story30....Overview of Typical Clients and Impact on Children

Financial Performance32....Auditor’s Report33....Balance Sheet34....Statement of Cash Flow35....Statement of Revenue & Expenditures40....Statement of Changes in Equity

T AB L E

OF CONT E NT S


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Quality and Integration 13

I N T R O

D U C T

I O N

GENERAL INTRODUCTION ABOUTMICROFINANCE & VISIONFUND

Microfinance is a proven, acclaimed method forhelping impoverished communities move towardeconomic self-sufficiency through the provision of

small loans and other financial services.

The United Nations named 2005 the ‘InternationalYear of Microcredit,’ recognising it as a vital elementin achieving the Millennium Development Goals.

In 2006, its importance was further recognised whenthe Nobel Peace Prize was awarded to MuhammadYunus and Grameen Bank for developing conceptof microcredit. The thriving global movement toprovide financial services to the poor has proven its

effectiveness. VisionFund is a leader in thismovement, particularly in the area of providingmicrofinance services in combination with holistic,development assistance.

Source: http://www.visionfundinternational.o


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INTRODUCTON

Introduction 4

COUNTRY DESCRIPTIONAND MFI INTRODUCTION

The Philippines is an emerging economy with a democratic systemof government. It is located in Southeast Asia, the archipelagoconsisting of more than 7,000 islands, of which over 800 areinhabited. The major island groupings are Luzon in the north, theVisayas in the center and Mindanao in the south. The country isconsidered one of the best in terms of strategic location, skilled

and highly trainable human resources and a potential market forenterprise development due to its fast growing population.

Community Economic Ventures, Inc. is a nonstock, nonprofitorganization in the Philippines. It is organized torespond to the needs of micro entrepreneursengaged in trading manufacturing, service-typedand agricultural businesses through provision of

financial and technical assistance. Aimedat developing sustainability and alleviatingpoverty, CEVI provides micro-

entrepreneurs better alternative to accesscredit, build up capital, micro-insuranceand generate savings. CEVI also

extends appropriate consultancyservices and training to its client aspart of its implementation of the CreditPlus Education Program.

Based in Bohol, the CommunityEconomic Ventures, Inc. (CEVI)

operates within 12 provinces and11 cities across the country.


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her to be their cluster Treasurer. She began to diversifythe products she sold to include dried fish, dry goodsand vegetables.

Unfortunately, her vertigo got the best of her and shehad to take a break from her business and hermembership with CEVI. Her husband began managingthe store and assumed responsibility for all the householdneeds while she rested and recuperated.

Once Cirila recovered she returned to her sari-sari store

and became an active member of CEVI once again. Shealso focused on her children’s education, looking for waysto lessen the school fees. Cirila happily shares herchildren’s achievements. Her daughter, Irish Villamor,received a scholarship from Nagao Natural EnvironmentFoundation and graduated Magna Cum Laude with adegree in Bachelor of Science in Environmental Science.She now works at the legal Department of PalawanCouncil for Sustainable Development (PCSD) whilestudying law at a university. She finds joy that her seconddaughter placed in the Top 10 of a drawing contest andher youngest child has dreams of becoming a policeofficer or an engineer.

Though Cirila is happy with her life, she has manydreams she has yet to accomplish. She would like toexpand her store and see her kids finish college withflying colors. She owes it all to CEVI, she says, “I haveto thank CEVI because it gave me the opportunity to bean active entrepreneur and at the same time learn throughBible Reflections. CEVI is something you can dependon. If you cooperate and pay your dues properly, youwill really appreciate the programs since they helpimprove how you handle and maintain your business.”

Cirila Lico Villamor, CEVI CLIENT

Cirila Villamor was born in the town of Calape, Bohol. In 1987,she moved to Puerto Princesa City, Palawan where she mether husband Rolly Villamor. She now has three childrennamed Irish, Irene Ruth and Iver Clarence. Before becomingan entrepreneur, she took a job as a cashier at PalawanDrug, a local drugstore in the city and as a sales representativein an appliance stores there. When she married Rolly, shebegan a business of buying and reselling rice to the market.She was happy to be adding some additional income tosupport her family and she was content with her family’sfinancial situation. However, soon some conflicts ensued at

her husband’s workplace, which resulted in him losing his job. They decided to move to Cebu with the prospect ofemployment and hoping to start a new life. They pawnedtheir house for travel fare and a few days’ worth of stay inCebu. Little Cirila know that she was about to experienceone of the hardest times of her life. Two days after giving birthto her third child, the baby passed away. She was in anunfamiliar place and her heart was torn into pieces- she couldbarely feed her family. To make matters worse, she alsodeveloped vertigo.

Cirila and her husband decided there was no life for them inCebu and moved back to Palawan. Rolly began driving toearn small amounts of money for his family and slowly, butsurely, Cirila began saving so she could start a buy & sellbusiness so she could sell rice to the market. In 2003, whileat a relative’s house, she came across CEVI. She immediatelyinquired and prepared the documents to apply for membership.She decided to open a sari-sari store in front of the houseshe rented in San Pedro, a barangay next to hers- she chosethat location because her cluster association met in thatbarangay. Cirila enjoyed attending cluster meetings- she wasable to learn business tips from other members and earnedtheir trust and respect which was evident when they elected


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Social Performance 11

S U MM

AR Y

Enhanced Integration with World Vision AreaDevelopment Project (ADP) and Partners

Involved in the formulation of the World VisionDevelopment Foundation Economic DevelopmentStrategy both at national and ADP programming levels.CEVI commitment to ADP is that at least 60% of its clientsreside within ADP areas, of which 20% are sponsoredfamilies.

CEVI has partnered with the Heavenly Treasures, anNGO based in California,which helps provides aninternational market of the handicrafts products of CEVIclients.

CEVI implemented a Christian Witness IntegrationProject. CEVI has collaborated the church leaders, fromboth Catholic and Evangelical Churches in order torealize and integrate a Christian nurturing program toCEVI cluster meetings, which is being attended regularlyby its clients. The partnership was being carried out with

the Basic Ecclesiastical Communities (BEC) in IsabeLeyte, members of Metro Tagbilaran EvangelicalAssociation of Ministers (MTEAM) in Bohol, and DavaoMinisterial Interfaith (DMI) and local churches in DavaoCity.

FISCAL YEAR HIGHLIGHTS AND ACHIEVEMENTS


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Maintained Quality and Growth

CEVI maintained a status as a category 3 MFI atVFI network with increased number of clients andloan portfolio. CEVI ranked 2nd in Asia and one of

the top 10 among 47 countries in the VFI family.

Early of 2009, CEVI has rolled out the group – expanded methodology (GEM). The new approachis a shift from a solidarity group to a familyguarantee loan that helps improve monitoringsystem, competitiveness, and productivity. GEMhas attracted and gained the loyalty of the clientsthat reduced the number of exit clients from 46%last year to 26% this year.

CEVI also enhanced and re-launched its individual

loan product called Asenso Loan to its clientele. Itis designed to cater existing clients who graduatedfrom group loan and needed bigger capitalizationto expand their businesses. It is also offered to thosequalified non-CEVI clients who need larger loans.

CEVI has established a team that focus on productdevelopment and standardization of businessprocesses. The VFI Business DevelopmentManager actively supported the relaunching ofglobal standardization at CEVI.

CEVI became the first Filipino MFI to go active inKiva partnership. CEVI was also being featured inthe July 2009 issue of Entrepreneurs magazine,highlighting its KIVA partnership andimplementations.

The VisionFund has chosen CEVI to pilot the WorldVision Micro funding project together with Rwandaand Mexico.

CEVI received recognition from the ConsultativeGroup to Assist the Poorest (CGAP) fortransparency in social performance reporting.

CEVI achieved a green rating based on the VFIglobal standards.

Capacity Building

CEVI institutionalized its managerial strengthe

program. Appropriate leadership trainings wprovided to the department heads, branch manag

area managers and area accountants to strengtthe organization.

VFI Asia Director and Business DevelopmManager conducted supervisory training to the midand senior managers of CEVI.

PlaNet Rating conducted an institutional and soperformance assessment at CEVI.

CEVI conceptualized new strategies for 2010

enhanced its vision and mission statement.

CEVI piloted the use of Progress out of Poverty In(PPI) based from 2004 Annual Poverty IndicSurvey (APIS), a poverty assessment tool develoby Mark Schreiner for Grameen FoundatConsultative Group to Assist the Poor (CGAP) athe Ford Foundation.

VisionFund International also piloted a SoPerformance Assessment (SPA) tool at CEVI. Ttool will assess and identify the areas that need to

strengthened to effectively fulfill the mission.

CEVI established a Service Quality Assurance and re–assessed staff through performaappraisal, which is done yearly to help maximize members’ potential and work effectiveness.

CEVI allocated a training fund for clusmanagement and leadership trainings for Cmembers.


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Summary 8

“I joined CEVI since 1998 and I witnessed its growth, the ups and downs and felt the pain when we started it.

I was a new graduate in the field of Agriculture when I joined CEVI. I have no idea about microfinance

and never expected that it would expand to Luzon, Mindanao and other parts of Visayas region.

I thought it would only operate in Bohol in partnership with the two ADPs but the call

for CEVI is to provide a boundless microfinance services. One unique quality of CEVI is its emphasis on

Christian Witness in every aspect of its operation.

CEVI is not just a microfinance. It is a Christian organization that aims people to attain fullness of life.

The way it provides services is sincere. It has touched so many lives of people by also bringing credit plus education in the community.

Through its efforts, people learned how to generate savings in their own, and were given an opportunity to start

a livelihood to raise their children well.”

GAUDIOSO B. CALIBUGANQuality and Integration Officer


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O V E R V I E W

VisionFund is the microfinance arm of World Vision. In 1993,World Vision began to implement microfinanceprogramming through the creation and development ofmicrofinance institutions to benefit the economically activepoor. In 2003, World Vision created VisionFund as themicrofinance subsidiary of World Vision, to oversee and

manage the network of microfinance institutions.

VisionFund is one of the world’s largest microfinancenstitution networks managed by a Christian nonprofitorganisation. Impacting over two million children and theiramilies each year in 43 countries, and in over 500 World

Vision area development programmes, these microfinancenstitutions serve in every region where World Vision works.

The network of microfinance institutions, affiliated withVisionFund, integrate microfinance into existing World

Vision development programmes. The combination of WorldVision’s humanitarian and development services coupledwith microfinance provides long term sustainability in thesecommunities. In essence, VisionFund provides theeconomic ‘engine’ that helps these communities andamilies overcome poverty. As a team, the two

organisations, VisionFund and World Vision, couplemicrofinance services, sound financial principles andmanagement with transformational developmentnterventions.

Since VisionFund focuses primarily on rural areas, the initialsupport and development of microfinance institutions bydonors is important. Without this support, these microfinancenstitutions would not be able to become sustainable due tohe difficult markets where VisionFund focuses.

Like World Vision, VisionFund is a Christian non-profitorganisation. As part of the World Vision partnership,VisionFund serves people in need regardless of race,eligion, gender, or ethnicity.

WHO IS VISIONFUND AND HOW DOES VISIONFUND WORK?

World Vision, founded in 1950, is a Christian humanitarian organisation worin 96 countries. It serves children, their families and communities in conditof poverty, primarily through programmes of transformational developmdisaster management, and promotion of justice. In fiscal year 2009, genedonors gave $2.575 billion in cash and goods, enabling 40,000* employee

offer physical, social, emotional and spiritual support.

*Includes full-time, part-time and temporary staff and microfinance institution empl

Source: VisionFund Annual Report 2009


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Overview 10

Microfinance refers to the practice of providingmicroloans, generate microsavings, and microinsurance

to the poor to foster small scale entrepreneurship. Itbreaks the cycle of poverty by addressing the fact thatmost poor do not have a credit history and are thereforeineligible for traditional financial services.

Small loans provide the working capital to grow abusiness, which allows the poor to create a sustainablelivelihood and exert greater control over their financialfuture. As a business generates profits, recipients buildassets, save money and can provide food for theirfamilies, while sending their children to school. From

these first steps, hope is born. In addition, as theirbusinesses expand and they hire employees, the overallcommunity’s economy is lifted.

Microfinance leverages donations to provide additionallending resources from initial donated capital. Forexample, a person’s initial donation can be multipliedfour to seven times, and then recycled to multipleborrowers as many as 25 times. That is the multiplyingpower of microfinance.

Microfinance leads to more education, better health,improved diet and nutrition, and greater resilience todisasters for poor families. In addition, it lays a foundationthat allows other humanitarian interventions to beeffective while providing the economic engine that allowsthe transition from dependency to sustainability.

Additional financial options lead to increased averagehousehold earnings and the ability to save for times whena business slows, a child gets sick, or a crisis occurs. In

addition, communities are able to pay for services likeschools, clinics and water wells, moving fromdependence on aid to self- sustainability. As businessesthrive, people move from a survival-only style of livingto a position where their hopes and dreams, particularlyfor their children, can become reality. Thus children arethe primary beneficiaries of microfinance, albeitindirectly.

WHAT IS MICROFINANCE?

“I was in need of additional capital so I inquired

my old cluster members about CEVI. I was ab join because of my existing transportation busUsing my loan, I was able to buy an old motorc

JANET BUCOY, CEVI Client andTricycle Operator and Store Owner



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“After I joined CEVI, my business prospered which also means progfinancially and most significantly my spiritual life grew and strengthebecause of the biblical reflections done every meeting.”

MICHELLE ESCOTIDO with husbCEVI Client and Balut Vending Ow

“The success of my restaurant business lies with my food recipes.Customers keep coming in my restaurant because the food we

serve tastes better than others.”

HELEN MATEMATICO, CEVI Client

and Restaurant Owner


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GOV E R NANC

E

Community Economic Ventures (CEV) demonstrate

both economic strength and organizational purposduring 2009 in light of a global economic crisis that lemost of the financial world stunned and shaken. CEVquality leadership, sound fiscal decisions and drive excellence resulted in a banner year for the VisionFun(VFI) and World Vision (WV) affiliated microfinancinstitution (MFI).

At the close of fiscal year 2009 CEV experienced25% gain in outstanding portfolio, whilst reducing th

level of loan and increasing the number of activborrowers served by more than five thousand individumicro entrepreneurs. Furthermore, nearly 15,00additional children were positively impacted by the woof CEV compared to the previous year.

MESSAGE FROM SCOTT BROW


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In 2009, through a network of 43 affiliated MFIs,

VFI focused most of its micro lending to areaswhere WV has ongoing area developmentprogrammes. In partnership with both VFI andWVI, CEV coupled microfinance services,sound financial principles and management withtransformational development interventions.VFI’s total loan portfolio for 2009 was $381million USD while serving roughly 624,000active borrowers.

It is with celebration that VFI congratulates CEVon last year’s fiscal and social success. CEV’sfiscal approach coupled with soundmanagement provided an environment thatallowed the MFI to grow and flourish. I join VFIin anticipating many future years of growth andsuccess for this exceptional institution.

To learn more about VFI, the microfinancesubsidiary of WV, please visitwww.visionfundinternational.org.

Scott BrownPresident & CEO, VisionFund International


The quality of programming at CEV was noted by

external institutions as well. CGAP, Consultative Groupto Assist the Poor, awarded seven VFI affiliated MFIswith the MFI Silver Certificate for the 2009 SocialPerformance Reporting Award. CEV was among theVFI affiliated MFIs receiving this reporting award. Theaward recognized CEV’s transparency in socialperformance reporting through key indicators. Inaddition, the VFI board recognized the CEO, JonarDorado for his excellence in leadership.

Over the past year CEV successfully partnered withKiva, an organization that connects individual investorswith micro borrowers supported through CEV whichled to over $500,000 in zero interest lending to CEV.


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Governance 14

Praise God from whom all blessings flow!

Over the past few years, I became a witness ofhow God abundantly and continually poured outHis blessings to the Community EconomicVentures Inc. (CEVI).

And despite the growing apprehension due toeconomic recession and its impact on the poor,2009 was a testimony of God’s faithfulness toCEVI as evidenced by its growth in resources,

scope and its quality of operation.

CEVI played and will continue to play a verysignificant role in the holistic development ofWorld Vision’s Area Development Programs.Committed not only by providing loans toentrepreneurial poor but also credit, educationand values formation. Many families through theenabling of CEVI can now see the hope that willbring about a better future for their children.

In partnership with World Vision and otherorganizations we will continue to be channels ofhope and contribute in the transformation of thosewhom we serve.

I would like to express my deepest appreciation to all of you at CEVI for your great achievements thisyear. We have so much to thank the Lord for – dedicated leadership, hardworking staff, but most of allHis manifold blessings for greater ministry. Much is given, much is required. Continue to be faithful tothe calling God has for each of you and for CEVI.

ELNORA BAILEN- AVARIENTOS

MESSAGE OF THE BOT PRESIDENT


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MESSAGE OF THECEVI EXECUTIVE DIRECTOR

Welcome,

Our dream is, we want people to attain fullness of life. Thisis our driving force why we continue to think how to bestway present and offer our products and services.

Reminiscing the years that passed, starting from the dayof its inception until today, I am very amazed and proudthat CEVI has already gone far in fulfilling its mission andvision. CEVI today is a far cry of what I previouslyremembered it is. We are now considered as a big MFIbased from the VisionFund International standards. Thisproves that God is truly at work in His ministry oftransforming families and communities.

The recent global economic recession and calamities that

stroked our nation made our faith stronger and becameresilient undeterred by these circumstances. We grew by 28% in loan portfolio and very pleased tosee the good trends of our operations.

Embarking on a new tact to face industry challenges, we are also happy that we keep partnered andmaintained good relationships with the local and international networks, with special mention to WorldVision and VisionFund International.

Every year we are becoming better!

Service is indeed a privilege especially to a heart that is willing. And this is true to all of us because

God called us to serve.

I would like to thank you for your earnest efforts and generous support and guidance. We have full faiththat God will always bless the works of our hands.

Warmly,

JONAR B. DORADO, CPA


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Governance 16

BOARD O

Elnora B. AvarientosWVDF Executive Director

Eduardo C. JimenezMicrofinance Consultant of the Bangko Sentral ng Pilipinas

Florelyn Plaza TiuWVI Sponsorship Operations Manager

Liberty B. Rigor

Program Group Manager

Mr. Eduardo C. Jimenez is presently working as Microfinance Consultant of the BangkoSentral ng Pilipinas. Looking at policy issues affecting the practice of microfinance inthe banking sector, he is also the Housing Microfinance Consultant of the AsianDevelopment Bank. Mr. Jimenez has previously worked as consultant of United Nation

(UN) and other UN attached agencies as well as with other bilateral organizations.

Florelyn Plaza Tiu is the Sponsorship Operations Projects Manager of World VisionInternational. She supports the Associate Director Sponsorship Operations to enhancethe effectiveness and efficiency of field based sponsorship operations with the aim toenhance program impact on children, their communities and donors through improvedsponsorship service performance, programming and related work processes.

Liberty Rigor is World Vision’s Program Group Manager since 1995. She is a CertifiedPublic Accountant. Prior to her present position, she has worked as Regional Coordinator,Chief Accountant and Semi-Senior Auditor in World Vision Manila area.

Elnora Avarientos is the National Director of World Vision

Development Foundation in the Philippines. She has 25years of work experience in World Vision and onceresponsible for giving support and guidance to nationadirectors and leadership teams in countries such asCambodia, Indonesia, India, China and Papua New Guineain enhancing their capacity to lead, manage and deliverquality ministry, through coaching and mentoring.


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DIRECTORS

Rommel Peter D. CaringalVFI Regional Director, Asia Pacific Region

Ardy Roberto

Chairman Salt and Light Foundation

Remedios N. GeraldesADP Program Quality Specialist for WVI-Asia Pacific Region

Rommel Peter Caringal is the VisionFund International Regional Director, in Asia PacRegion. He provides leadership in the execution of Vision Fund strategies involvingcountries of Asia Pacific region. He has more than 15 years of extensive experiencemicroenterprise / microfinance sector in the areas of setting up commercial companiorganizational management, product and services development, human resourorganizational development, Management Information System (MlS), capacity buildi

board development, various program innovations for greater sustainability.

Ardy Roberto aside from being an author, he is also a producer of international award-

winning seminar. He is a co-founder and CEO of Salt & Light Ventures, Inc., which is alearning event organizer that have won both local and international awards for the seminarsand conferences.

Remedios N. Geraldes is an ADP Program Quality Specialist for World Visioninternational Asia Pacific Region since 2003. She provided support to the improvementof transformational programming through the implementation of TransformationaDevelopment Indicators, building capacities for design, monitoring and evaluation ofprograms and facilitates intentional learning for quality. She has been working with WorldVision for 23 years and has been into different roles and responsibilities prior to herpresent position.


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CEVI CurrentlyOperates in12 Provinces

and 11 CitiesAcross thePhilippines

O

P E R A

T I ONS


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Agusan del Sur

South Cotabato

Zamboanga

Agusan del Norte

Davao

Bohol

Cebu

Leyte

Negros Oriental

IloiloPalawan

Cavite

Provinces and Cities Served


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Operations 20

VisionFund manages external debt fundingand World Vision donated resources for thebenefit of micro enterprise lending andsavings programmes. The funds are investedin the network of microfinance institutions in43 nations worldwide. VisionFund seeks tohave each microfinance institution becomeoperationally and financially sustainable so

that the lending and social impact are ableto carry on well into the future. VisionFundstrives to provide strong governance, solidinternal controls, robust risk management,and deep integration with other World Visionministries. The microfinance institutions, inturn, are then empowered to extend creditand savings services to individual and groupentrepreneurs, primarily in World Vision areadevelopment programmes. The institutionsendeavour to allow borrowers to self selecttheir own groups and their own businessventures. As businesses succeed, loans arerepaid, and microfinance institutions areable to lend those funds to other clients.

Loans made by VisionFund-affiliatedmicrofinance institutions are handled in thefollowing three methods:

Community Banks

These loan circles create an opportunity forthe poorest entrepreneurs to obtain credit.Self-selected groups of 20–30 borrowers

HOW DOES THE MFI OPERATE?

agree to guarantee one another’s loans. Thisallows VisionFund to reduce costs andprovide small loan amounts (loans typicallyrange from $50 to $500).

The group screens potential borrowers andtracks each repayment, building its members’leadership skills and sense of pride along the

way. Weekly meetings offer accountabilityand support, and also build business skills.

Solidarity Groups

Designed for more experiencedentrepreneurs with larger enterprises,solidarity groups have fewer members thancommunity banks, with an average of three-to-six people guaranteeing each other’sloans. Members who make repayments ontime become eligible for larger individualloans (loan sizes typically range from $300to $800).

Individual Loans

Borrowers who have grown their businessessuccessfully through a solidarity group or whohave their own collateral qualify for individualloans, typically ranging from $500 to $5,000.

Individual loans usually require either twoguarantors or collateral. Borrowers oftencreate a multi year business plan inconsultation with their loan officer.



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CEVI offers four loan products catering to economically active poor namely Yaman, CROP,

BABE and Asenso loan. Yaman loan product, which targets micro-entrepreneurs involved in

trading and commerce, covers majority of the portfolio and is offered in almost all of the branches

nationwide. Crop Loan on the other hand, is second that targets micro-entrepreneurs involved

in farming, highly availed in Mindanao Areas (Trento and Surallah Branches). Then BABE

Loan is exclusively offered in Bais, Estancia and Sara Iloilo Branches that targets micro-

entrepreneurs involved in hog raising while Asenso Loan the least, targets small and medium

scale entrepreneurs, existing or new clients with greater need for capitalization has just beenrecently launched in Talibon branch.

Product Distribution %

Loan Product

CEVI PRODUCT PORTFOLIO

%

% %

%


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Operations 22

GENERAL INTRODUCTION TO UNIQUE HOLISTICMODEL OF DEVELOPMENT

Area Development Programmes (ADPs) lay a secure foundation on which small businesses canbuild. In conjunction with clean water, health care, stable food sources, and education, communitiescan turn to income generating ventures. VisionFund’s network of microfinance institutionsintegrates microfinance into World Vision’s programmes. This unique combination of immediateaid and long-term development leads to sustainable developmental changes. The result is atruly holistic, integrated approach to community development that empowers poor families andcommunities to solve their own problems in innovative ways.


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Education and Literacy

Educating children and families is critical for thefuture of a community. For example, published

studies show that when girls learn to read at theeighth grade level, benefits to the community includereduced mortality rates and increased income percapita. World Vision’s integrated approach helpscommunities build their own schools and providetheir own teachers.

Water

Communities often have access only to dirty,disease-infested water that spreads diarrhoea and

deadly parasites. Simply providing access to cleanwater and improving sanitation can cut child deathrates in half. World Vision serves communities bydrilling new wells, protecting existing water sources,and piping water from safe springs. This water issafe for drinking, cooking, bathing, and nourishingcrops and livestock.

Health Care

Studies show increased family income oftentranslates into better health, and health services forfamilies, including children. Microloans provide theworking poor with the additional resources theyneed to provide health care for their families. Bybeing able to access health care and increase thefrequency between clinical visits, mortality rates forchildren drop.

Food and Agriculture

By securing its own regular and sustainable sourcesof food, a community is able to cut death ratesamong vulnerable families in half again (when addedto water and health improvements). The right seedsand tools, plus training in agriculture and animalhusbandry, enable a community to increase itsproduction of meats, vegetables and grains forhealthy diets. Improved storage capabilities enablefamilies to survive periods of food shortage.



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Operations 24

“I thank God in CEVI. It is really a blessing working

in this ministry that provides both spiritual and financial needs of

the people. The way CEVI handles

staff and clients are different.

It knows to value relationship. And this relationship has been one

that held us unique from the rest.

Everybody in the organization cares. This is the kind of culture that I am always proud at CEVI.”

EDWIN P. CRESCENCIO

Operations Manager


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S O C I A L P

E R F O R

M A N C E

Women Outreach

Job Sustained

Children Impacted

86%

25,992

75,579


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Helen Matematico

Helen Matematico lives in Moalboal, Cebu. She is

37 years old and is married to Reynaldo Matematico,a sea diver. While Reynaldo he financially supportshis family by providing diving services to foreignersinterested in exploring the beautiful Cebu sea, healso helps Helen to raise their children. However, thebusy lifestyle of these working parents only leavesthem the evenings to spend time together and withtheir kids, Renalyn and Renann. Renalyn, 20, is acollege graduate while Renann, 19, just graduatedfrom high school. Both children enjoy and even preferworking in the restaurant business, helping theirmother.

Helen’s restaurant started off small but has graduallyprogressed and expanded over time, resulting inincreased profits. Although Helen’s restaurant facesmuch competition from other restaurants, Helen hasbeen effective at maintaining a strong customer base by providing food and service far superior to others. She claims thather business’ success lies with the quality and taste of her food. A large portion of her clientele consists of foreigners whohave settled in her town, and they claim that aside from the great food Helen serves, she offers great customer service. Asher restaurant became more successful, Helen was able to hire some of her relatives and friends to join her work force. An

added touch, Helen’s restaurant is situated onthe seashore, which allows her customers toenjoy the view of the sea and the refreshing air.

Helen is now in her 17th cycle with CEVI andhas already availed two loans at PhP 25,000.When she first began, she started with a loanof PhP 6,000 to gain additional capital for herbusiness. She is thankful for CEVI and for theloans that were granted to her- with the capitalshe was able to expand her business a greatdeal. In turn, the additional income generatedhelped her provide for her children’s educationand to make a suitable house for her family tolive in. Helen’s daily profits now hover aroundPhP 7,000 on average, but range from PhP20,000 to 50,000 during the peak season. Her

annual profit is about PhP 450,000.

Helen’s dream is to have her children complete their studies and start businesses of their own. At the moment, herbusiness plans include creating an extension near her restaurant so she can maintain her competitive advantage and servea larger customer base. She is excited to continue on as a CEVI member.

CEVI Client Success Stories


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Zenaida Pacurib Alegarbes

Zenaida Pacurib Alegarbes, a resident of Hubang Poblacion, Bunawan,Agusan del Sur, has been a CEVI client for 2 years. Zenaida first learnedabout CEVI from her neighbors. Upon hearing how the loans from CEVIchanged their lives, she did not hesitate to join their association,

especially since she needed capital to grow and improve her businesses– she runs a sari-sari (general) store, has a rice field, and is engaged inhog raising. Zenaida has 4 children, three of whom have alreadygraduated from college; her youngest child is a first year at college andis studying to be an accountant. Zenaida and her husband, DanielMagnifico, have worked very hard to be successful in their businessventures so that they can fulfi ll their dream to have their children earncollege degrees.

Having a strong sense of determination to grow her businesses, Zenaidanever feared that her investments would fail. With her first loan of PhP6,000 she was able to expand her product offering at her sari-sari store.She was able to use a portion of the loan to invest in her piggery and to

also hire labor to plant in her rice fields that span 6 hectares. Zenaida isnow on her 5th loan cycle with a loan amount of PhP 14,000. Herannual profit from her sari-sari store, hog raising, and rice farming isPhP 18,000,150,000 and 150,000, respectively. Approximately 50% ofthe income generated from her business ventures is re-invested intoher business and into her younger daughter’s education. With the supportof her children and husband, Zenaida is hopeful for success- she wouldlike to set an example within her cluster association and in hercommunity.

To further expand in her rice farming, Zenaida would like to purchasemore rice fields to multiply harvest in the coming years. She also would

like to expand her hog raising business. Zenaida believthat with the right attitude and smart investment decisioshe will be able to use each availed loan from CEVaccomplish all her dreams.

Zenaida is an active cluster chairman among the macluster associations in the Trento Branch. In fact, officer position enabled her to develop leadership skand strengthen her relationship with her neighbors in community. She is a disciplined leader and constareminds her fellow cluster members to be responsibl

She expresses the highest praise of CEVI, saying tthe trust and values that CEVI have given her have moldher to be a better person. CEVI has also given her opportunity to grow her businesses and, most importanallowed her to pay for the education of her childrenwas through CEVI that she was able to learn how to spein front of people and become a leader. She values trust that the members of her cluster association hagiven to her.

Zenaida is just one of the satisfied clients of CEVI wlives life with contentment and fullness despite challenges she may face because her strong belie

God makes anything possible.


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Michelle Escotido

As a CEVI client for almost seven years, Michelle N.Escotido reminisces on her short beginnings as a micro-entrepreneur. She is the wife of Orlando M. Escotido,who is also a micro-entrepreneur, and a mother of one

child. She vividly recalls the days when their balut(unhatched duck egg) vending started in the 1994, beforeshe became a member of CEVI. The business startedwhen her husband, Orlando, would sell balut via bicycle.

Within a few months, Michelle and Orlando saw that therewas a high demand for balut, which helped them continueto persevere and prosper. To fulfill the increasing demand,they realized they needed more capital to cover the costsof purchasing additional balut and materials and hiringlabor for the production of balut. In 2002, Michelle wasinformed of CEVI by her neighbors and saw the chanceto raise capital for her business. With the encouragementand support of her husband, she decided to join CEVI.She was one of the pioneer members of CEVI’s clusterassociation in Sto. Niño, South Cotabato. With her firstloan cycle of PhP 6,000, she purchased additionalmaterials, such as baskets, needed for balut vending.When the balut vending business first started, they onlyhad one basket and one bicycle to sell the balut withinthe barangay and to nearby barangays. With additionalcapital borrowed from CEVI, their business grew and theywere able to expand their business to include balutmaking and the buying/retailing of fresh duck eggs. Theywere also able to purchase motorcycle and sidecar to

more efficiently deliver fresh eggs. In fact, Michelle andOrlando have been so successful that they have nowestablished outlets in Davao and Tagum to sell fresh eggs.Because of the substantial growth, they have an averagedaily income of PhP 5,000- 6,000 and, as of December2009, an annual profit of PhP 600,000. The additional

income has enabled them to purchase land, purchase a car andrenovate their house.

The business started with just the couple handling the operations,but now they have 3 drivers who deliver eggs to the outlets and 1assistant. Their business has made a considerable impact on

their community by generating employment.

Currently, Michelle is already in her 17th loan cycle and has acurrent loan of PhP 25,000. She has been able to launch anotherbusiness - she owns an outlet/office for the direct selling of Avon,Sara Lee and Natasha products. Though she initially realizedthat there was risk in starting such a venture, she continued tobelieve that hard work and time can make for a successfulbusiness, and she was right. She proudly claims, “After I joinedCEVI, my business prospered which means I made progress.Not only was I able to improve my financial standing, but moreimportantly, I was able to grow and become stronger spirituallythrough the Biblical Reflections that are done at every meeting.”

She and her husband believe that with the continuous financialsupport from CEVI and their trust in the Lord, their dreams fortheir daughter to finish her studies will come true.

Michelle, like many micro-entrepreneurs, can continue to availlarge loans from CEVI for business expansions because shehas a proven track record which is based on hard work,commitment and perseverance- values that are necessary foran entrepreneur to prosper. Indeed, Michelle is proof that acommitted and motivated person deserves the opportunity tohave access to services that will help them prosper in businessand in life.


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Janet Bucoy

A true-blooded Zamboangeñan, at the age of 16, Janet movedfrom Mindanao to Palawan with her parents. Leaving familiarfaces and places behind, she had no choice but to adapt toher new home. School greatly helped her to make new friendsand get accustomed to the new environment she was dwelling

in. Years passed by, unnoticed, and soon Janet was marchingto get her college diploma.

Janet met her ex-husband in Babuyan, a barangay of PuertoPrincesa City that she called her second home. She had twochildren with him, Ryan and Weljane, but when her youngest,Weljane, was in the first grade, Janet and her husband decidedto live separately due to conflicts. From that point on, Janetworked very hard to be able to feed her kids and send them toschool. She worked for the city as a Coordinator of Women inCity Hall for ten years, however once she sensed there wereissues within the department, she resigned to avoid tension.Janet did not want to begin the job hunt again so she registeredto an Avon outlet and began to sell beauty products. Soonafter, she met Alvin Cardejon, her current partner. Being withAlvin eased the burden of being a single mother who wasconstantly faced with challenges.

In 2003, Alvin, Janet and the kids moved to Roxas, a town innorth Palawan. She continued to sell Avon products and soonbegan to sell Natasha products, while Alvin focused onmechanical work fixing motorcycles. That same year,Community Economic Ventures, Inc. opened in Roxas andJanet was one of the first members to join. She used her loanas additional capital to support her and her partner’s

businesses. As she recalls, she and her co-members in thecluster enjoyed meeting and paying their dues. Her housewas near the sea so she decided to use her next loan tobegin a fishing business. With her loan and savings, she wasable to buy a boat and other fishing equipment. Her son, Ryan,and Alvin would go fishing and she would sell their catch.Although they had begun their fishing business, Janetcontinued to sell Avon and Natasha products and Alvincontinued to be a mechanic in his spare time. After sometime, their fishing business grew and required more help- Janethired six people from her town.

After two years, Janet became pregnant with her daughter

Yvennet. After giving birth, she decided to withdraw hermembership from CEVI and her family began to rely on thefishing business. Some more time passed and soon, Janetand Alvin decided to sell their boat and house so that Alvincould focus on his mechanical job. The boat was sold for PhP70, 000 and the profits were used to buy a lot with a nipahouse in Roxas. Alvin used his skills to restore an oldmotorcycle and assemble a sidecar to create a tricycle. Janetasked her relative to drive the tricycle, which results in hergetting a boundary of PhP 120 per day. Janet once againfound herself in need of additional capital so she got in touchwith her old cluster members to inquire about CEVI. She wasable to join because of her existing transportation business.

With her loan, Alvin was able to assemble two more tricycland Janet hired more drivers. Janet was excited to be earnian income again and simultaneously began to build a nebigger house. Janet was happy to provide transportation a jobs to people in her community, while Alvin worked establishing his shop where he does overhaul, welding avulcanizing.

In May of 2008, Janet opened a small sari-sari store in froof her house because she had time to manage the store awanted to earn a little extra money for her family’s daily needLife was becoming easier when suddenly, a tragedy happenin their family. On January 24, 2009, her son Ryan, 27 yea

old, got electrocuted and passed away. It was very tragexperience for Janet and her family who felt that things we just starting to improve for them. Two days later, Yvennwho was 5 years old, fractured her leg while playing wother kids on a tricycle just outside their house. With all ttrials her family was facing, Janet broke down into tears oafternoon- she was frustrated and felt like giving up. Yvenninnocently told her mother, “Kaya mo yan ma, malaki naman eh. (You can do it Ma, you’re an adult!)” Janet couldhelp but laugh and found strength and encouragement in hdaughter’s words. Janet’s faith in God and the comfort Hoffers to Janet and her family allows them to deal with tnegative experiences and keep moving forward.

To date, Janet manages three tricycles and she has savemoney to purchase a brand new sidecar. She earns PhP 36daily from renting tricycles. The sari-sari store and weldinrepair shop earn PhP 500 per day. Her most recent plans fbusiness growth and expansion include: improving Alvinshop, buying a transformer valued at PhP 50, 000, anexpanding her sari-sari store. Janet shares, “One thinglearned from Biblical Reflection in our weekly cluster meetinis to depend on God for everything.” Prior, she depended her strength to help her through, but the trials she has facin her life have made her realize there is God who will be hsource of strength and give her the courage to go on.


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OVERVIEW OF TYPICAL CLIENTS

The majority of the world’s poor are self employed. Most people living in poverty, however, donot have access to the capital needed to grow their small businesses and increaseprofits.VisionFund affiliated microfinance institutions strive to serve the entrepreneurial poorwho are economically marginalised. This is especially true for the rural poor, who typically haveeven less access and fewer options than others. VisionFund looks for borrowers primarily inWorld Vision area development programmes with the following three characteristics:

Strong Work Ethic

Focuses on the hardworking, entrepreneurial poor who need access to capital to grow theirbusiness to a level that will sustain themselves and their families.

Prior Business Experience

Provides microloans to the entrepreneurial poor who are willing to be trained as first-timeborrowers. Additionally, those with prior business experience are sought out because they aremore likely to repay their loans and become mentors to other entrepreneurs.

Women Caregivers

Majority of borrowers are women. In 2009 over 68 percent of all micro borrowers were women.This is a staggering statistic in light of the reality that women control less than one percent of theworld’s assets. VisionFund focuses on women, as they are more apt to spend additional incomeon health care and education for their children.

Microfinance is an investment in the future, especially in regard to children. With new incomefrom micro enterprise, poor families invest in their children’s education. Studies show thatchildren of microfinance borrowers are more likely to go to school, stay in school longer, and

have lower dropout rates.

VisionFund’s experience confirms these findings. As loans are repaid, the money is recycled,giving donations increased impact. For example, in Rwanda, a donation of $75 can affect atleast 30 children over a five year period by providing access to food and education. Amongmore than 800 Rwandan active borrowers, family income and assets doubled in 19 months.Recipients benefit from better nutrition, improved living conditions, better health, better sleep,increased education, and an improved outlook on life.

IMPACT ON CHILDREN



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F I N A N C I A L

P E R F O R M A N C

E


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FINANCIAL

PERFORMANCE

The Board of Trustees and Members

Community Economic Ventures, Inc.

We have audited the accompanying financial statements of Community Economic Ventures, Inc. (a nonstock, nonprofit

organization), which comprise the statements of assets, liabilities and fund balance as at September 30, 2009 and 2008,

statements of income and expenses, statements of changes in fund balance and statements of cash flows for the years then

ended, and a summary of significant accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with

accounting principles generally accepted in the Philippines applicable to NonPublicly Accountable Entities (NPAE). This

responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and

applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in

accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and

plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material

misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors

consider internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation

of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Community Economic

Ventures, Inc. as of September 30, 2009 and 2008, and its financial performance and its cash flows for the years then ended

in accordance with accounting principles generally accepted in the Philippines applicable to NonPublicly Accountable

Entities (NPAE).

January 7, 2010 Makati City, Metro Manila MANABAT SANAGUSTIN & CO., CPAs

Partner CPA License No. 0035026

SEC Accreditation No. 0047-AR-2

Tax Identification No. 112-071-561

BIR Accreditation No. 08-001987-11-2007

Issued July 10, 2007; Valid until July 9, 2010

PTR No. 1564064MB Issued January 5, 2009 at Makati C

Financial Performance 32

REPORT OF INDEPENDENT AUDITORS


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Financial Performance 34


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Community Economic Ventures, Inc.Sarrabia-Co-Torralba Building 2, Espuelas Street, Tagbilaran City 6300, PhilippinesTelephone: (038) 412-2356 | 501-0170 | 235-5463Fax: (038) 412-2356http://www.cev-inc.org

cevi annual report fy 2009

Documents