Annual Report 2014

World Education Australiabuilding skills, changing lives

2

About Us

Letter from Chair and CEO ..................................... 3Where We Work & Key Activities ........................... 4Our Partners .......................................................... 5Update on Good Return ......................................... 6Skills Development ................................................ 7Responsible & Inclusive Microfinance ................... 9Trek to End Poverty 2014 ....................................... 10CAFE Initiative ....................................................... 11

Vanmai SCU Update .............................................. 11Field Support Officer Program .............................. 12ConnectEd Update ................................................ 13Environmental Impact .......................................... 14Board of Directors ................................................. 15Governance ........................................................... 17Concise Financial Report ...................................... 18Supporters, Management, & Staff ......................... 22

We believe no one deserves a life of poverty.Our Vision A world without poverty where people have access to resources and opportunities to improve their own lives.

Our Mission Through responsible microfinance and skills development, we enable people living in poverty to grow their incomes and change their lives sustainably.

Microfinance The provision of financial services to the poor. Microfinance services are not just loans (microcredit) but include savings, micro insurance, and money transfer products. The desire and capacity to save represent a critical step towards economic self-sufficiency.

Skills Development Literacy and numeracy are essential if people are to extend their natural capability. Those who want to run any type of enterprise also need basic financial literacy, to understand book keeping, budgeting, borrowing, and savings options. Livelihood skills are the vocational and technical know-how that enhance a person’s productivity.

Contents

Our AccreditationThe objective of Australian Aid is to assist developing countries to reduce poverty and achieve sustainable development. World Education Australia has full accreditation from Australian Aid.

We are a member of the Australian Council for International Development (ACFID), the peak body for organisations involved in overseas aid, and are committed to upholding its Code of Conduct. We ensure our financial reporting complies with the standards set out by the Code.

The Australian Charities and Not-for-profits Commission (ACNC) is the regulator for the sector. We are registered with ACNC and comply with all requirements.

Because World Education Australia remits funds overseas, it is required to meet the reporting and compliance requirements of the Anti-Money Laundering/Counter Terrorism Funding Act 2006. To do this, we report regularly to AUSTRAC, the Commonwealth Agency responsible for administration of the Act.

Guy Winship, CEONeild McIntosh, Chair

3

Letter from Chair and CEOBy any standards, 2014 has been a remarkable year for World Education Australia (WEAL) and our flagship microfinance program Good Return. We have worked on many fronts as we pursue our vision of a world without poverty, and are pleased to highlight here some of our successes.

Responsible microfinanceAs microfinance becomes a global industry, there is more need than ever for lenders to deal fairly and responsibly with their disadvantaged clients. WEAL has positioned itself at the leading edge of this initiative. Our specialists coach microfinance institution (MFI) partners’ senior management on building their social performance agenda, and on best practice in areas like client protection and poverty tracking. We believe these measures are essential if microfinance is to become a respected and effective tool in helping people escape poverty.

Hand in hand with responsible lending is responsible borrowing. If people are to use micro-debt prudently, they must understand the basics of interest rates, budgeting, and money management. Good Return partners with MFIs across the Asia Pacific to deliver financial capability and livelihood skills training. Last year 6,500 people benefited from these programs, strengthening their capacity to earn a living and build a path out of poverty for themselves and their families.

Improved services and more training options for their clients is now a priority for leading MFIs around the world. WEAL is proud of our leadership role in extending this initiative across the Asia Pacific region. An important part of this is developing use of the Progress out of Poverty Index, an objective measure of the extent of hardship among the poor, enabling us to better track the impact of our work.

Working in Laos While Good Return is our public face with the Australian public, WEAL continues to participate in additional regional programs. WEAL was chosen by the Department of Foreign Affairs & Trade (DFAT) to manage a sub-component of the Laos-Australia Rural Livelihoods Project. As part of this major effort to enhance economic security for the rural poor, WEAL will work with 1,000 vulnerable families in rural Salavan province over the next two years. Projects such as this enable us to share our insights and experiences across countries and partners.

Thanks to the teamOur strong year-end financial position is most comforting. Its purpose is to assure the sustainability of our mission, and continue to give those in need access to the resources and opportunities by which they can improve their lives.

WEAL is fortunate in being able to access the skills and enthusiasm of our staff, volunteers, directors, and supporters. To all of you, we offer thanks.

1. A training participant with drawings of her savings goals, Cambodia

2. Counting repayments at a centre meeting, Fiji

3. Financial booklets, which form the backbone of our Financial Education Program in the Pacific

3

2

1

Nepal

Sri Lanka

China

Bangladesh

Philippines

Cambodia

Vietnam

Indonesia

East Timor

Papua New Guinea

SolomonIslands

Australia

Fiji

Tonga

Current Programs

Past Programs

Laos

Australia Cambodia Fiji Indonesia Laos Nepal Philippines Tonga

PROGRAMS

Good Return

Skills for Life

Sustainable Livelihoods

Sustainable Energy

ConnectEd

Microfinance Capacity Building

KEY ACTIVITIES

Financial literacy

Training team capacity building

Microfinance

Renewable energy technologies

Social performance management

Sustainable agriculture

Small business management

Youth employment building

4

Where We Work

,

5

Our PartnersMicrofinance PartnersWorld Education Australia and Good Return partner with microfinance institutions (MFIs) in the Asia Pacific to invest funds raised in Australia directly to helping the poor in our region.

We conduct a thorough selection and due diligence process for all partners. We assess their financial and social performance, to confirm their viability and that they share our vision of helping the poor – sustainably.

CUKK, West Kalimantan, IndonesiaWe began our relationship with Credit Union Keling Kumang (CUKK) in 2012. Keling Kumang refers to a local folk story about a “strong husband and strong wife” who work together to build their community. From humble beginnings, the members of Keling Kumang have made their own story – and now number over 110,000.

TPC, CambodiaThaneakea Phum Cambodia has a vision of providing the poor with the opportunity to transform the lives of their families and communities. Established in 1994, TPC now has 54 branches and 95% of its 180,000 clients live in rural areas. More than 40% of them have incomes below the national poverty line, and 85% of loans go to women.

SECDEP, PhilippinesIn the Philippines, our partner is St. Elizabeth Community Development Program (SECDEP) whose women members live on the island of Panay. From its start as a food program, SECDEP has evolved to provide microfinance, education, and health-related services. Good Return helps SECDEP deliver financial literacy and business training to its clients, and also finance for sustainable energy products such as home solar power systems and fuel efficient cook stoves.

SPBD, Tonga and FijiSouth Pacific Business Development (SPBD) is part of a network of microfinance institutions in Fiji, Samoa, Tonga, and the Solomon Islands. They are committed to eradicating poverty by giving rural women the opportunity to start and grow sustainable enterprises. SPBD also provide clients with a range of services to support home improvements and education. Of the total loans distributed, 99% go to women, 80% to clients in rural areas, and some 40% to single mothers.

Major Corporate PartnersWorld Education Australia received significant monetary and/or pro bono support from these organisations in the last year. We are most grateful for their assistance.

Industry Partners & AffiliationsAustralia: YWCA NSW

Cambodia: Cambodia Microfinance Association

Indonesia: Solidaridad, Stichting DOEN Foundation, Hivos

Nepal: Regional Microfinance Development Centre, Centre for Microfinance

Responsible Microfinance: Microfinance Centre of Poland, Smart Campaign, Social Performance Task Force, Grameen Foundation Progress out of Poverty Index

World Education Inc: We are pleased to work in Cambodia, Indonesia, Laos, and Nepal with affiliated units of our founding member, World Education Inc.

6

Update on Good ReturnGood Return was established in 2009 to connect Australians to the working poor in the Asia Pacific who need a small loan to grow their income and lift themselves out of poverty. Combined with financial education and livelihoods training, this has ensured long-term benefits for many.

Continued growth of the Good Return program has prompted some changes in the way we communicate with the Australian public. As more of our work goes beyond providing interest-free capital to our partners, we needed to explain this to Australians. During the year we have developed a new value proposition, creative direction, and website to engage and educate our supporters.

Australians will now be able to follow the working journeys of a Village Trainer and Community Banker in each of the countries where our Field Support Officers are based. Our Field Support Officers themselves will also provide regular updates on their work and what daily life is like in a developing nation. These insights will provide a meaningful experience for donors, as well as educating them on microfinance, financial education and inclusion, Social Performance Management, and other tools for combating poverty.

The new brand was launched at our annual fundraiser in August 2014, and the new website went live in November 2014.

Good Return continues to be a practical and personal way for Australians to make a difference in fighting poverty in the Asia Pacific.

2,025 fully funded loans this financial year for a total of 7,081 to 30 June 2014

AUD $1,717,650 loaned with a 99.99% repayment rate

30,522 family members benefit from flow-on effects

Program Highlights

SUPPORTCommunity Bankers

to achieve theirsocial mission

ADOPTa Country

and be part of the development

FUNDSmall Loans

to people living in poverty

VISITOur Programsto see our work

first hand

FOLLOWVillage Trainers

to develop skills in their communities

GROWOur Mission

to break the poverty cycle for good

SUPPORTCommunity Bankers

to achieve theirsocial mission

FUNDSmall Loans

to people living in poverty

FOLLOWVillage Trainers

to develop skills in their communities

ADOPTa Country

and be a part of the development

VISITOur Programs

to see our work first hand

GROWOur Mission

to break the povertycycle for good

7

Skills DevelopmentTraining and Skills DevelopmentLack of education and a life of poverty form a vicious circle. Many of the rural poor in the countries where we work do not have the education or the skills to find a job or start their own enterprise. And so they in turn can’t afford more than a few years of school for their children. To break this cycle, people need access to practical training that enhances their skills, enabling them to earn a living, manage money, and build financial and personal assets.

Good Return works with our partners to assess training needs in their communities, design interventions and learning materials, start train the trainer programs, and provide ongoing monitoring, coaching, and support.

Financial Capability Financial education and capability development strengthen the capacity and well-being of those living at the margins of the economy.

Effective financial capability goes beyond just understanding – to being ready, willing and able to act on the new knowledge. A key goal is to enable participants to close the gap between what they might want to do – and what they actually do in practice. Equipping people with the capacity to act flows from letting them experiment and rehearse, and build the confidence to move forward and apply positive behaviours.

Good Return has moved toward a greater emphasis on understanding the drivers of behaviour and creating opportunities for clients to experiment with and practice positive financial behaviours. This greatly increases the likelihood they will apply the learning in their day to day lives.

Sustainable LivelihoodsWe focus on helping people grow sustainable and diversified income streams, through resilient enterprises that can survive both the good times and the bad. We also raise environmental awareness, reducing the use of pesticides and chemical fertiliser, and promoting recycled products where possible.

748 trainers trained this year for a cumulative 1,302 to 30 June 2014 - Gender participation: 8% ♂, 92% ♀

8,222 people participated in training this year for a cumulative 24,797 to 30 June 2014 - Gender participation: 3% ♂, 97% ♀

Program Highlights

Master Trainer Kamrang Tith is one of the leaders in skills development with our partner Thaneakea Phum Cambodia (TPC). TPC’s financial education program, developed with Good Return, is available for all village members, not just clients.

“This job with TPC is my dream job. Not only do I get to help community members improve their financial situation, I also get to mentor others who have a similar passion. One of the most enjoyable things about my job is seeing members smile and participate fully in the training. Although travelling to the rural classes can be difficult, I really enjoy getting out of the office to see the beauty of the rural areas, and chat with the participants of the financial education courses.”

Kamrang Tith

1

2

34

8

Case Study: Mao Rin

Mao Rin (41) has received a certificate earlier this year for completing a Good Return savings course to help manage her loan.

After dropping out of primary school in grade 4, Mao Rin says that she can “read and write only a little.” Now a mother of three, two of her children have had similar educational experiences. Her eldest child, now 22, was forced to drop out of school in grade 7 after an illness affected his hearing. Her second child dropped out to work in a garment factory so that she could help earn money for the family.

Mao Rin and her husband have always relied on their rice crop and small well-boring business for income. However, the rice crop hasn’t always been successful, and the family has struggled to afford basic living costs let alone the expensive maintenance of their equipment.

Things changed when Mao Rin was granted a micro loan. The funds from the loan meant that Mao Rin and her husband were able to purchase fertiliser for their rice crop, which resulted in a higher yield than ever before. They were also able to afford the cost of fuel and maintenance for their well-boring business, which now earns the family up to USD $200 for each well.

Mao Rin says that thanks to the savings course, “I now understand the differences between income and expenses, and the importance of saving money now for things for in the future and emergencies.”This means that Mao Rin’s youngest daughter, just 13, will be able to continue her studies. The family’s extra income and improved financial stability also means that Mao Rin’s granddaughter (her son’s first child) will also stay in school longer.

1. Left to right: Mao Rin, her granddaughter, her sister, her youngest daughter, and her husband.

2. Family of all ages are welcome at training sessions.

3. Participants who also received completion certificates from the savings course.

As a banker and trainer for our partner SECDEP in the Philippines, Luigi is on the ground delivering responsible microfinance to the women of Guimaras Island. Reaching these remote rural clients means hours on a motorbike on dirt roads, but his passion for community development makes it all worth it.

For Luigi, the most difficult part of his job is motivating clients who have faced significant hardship, affecting their confidence and outlook. But this also provides his greatest source of satisfaction; when they apply the skills they have learned and are able to change their lives.

Recently, his team has opened a new centre, so Luigi has been busy conducting orientation training. “I enjoyed giving the training and getting to learn about the new clients,” he says. “Listening to the hardships they have faced and their dreams for the future is really moving. I had never really understood how much the clients appreciate the savings training. I am always inspired when I see the client’s savings increase, and withdrawals decrease. I’ve also noticed that the clients are using their cashflow diaries to record their weekly expenditure.”1. Counting repayments back at the office.2. Do you like your banker this much? Luigi with clients at a meeting.

Luigi Dela Cruz

1

2

9

Responsible & Inclusive MicrofinanceMicrofinance loans can be a powerful tool to fight poverty, when delivered responsibly. But they can cause harm if made to already indebted people, or are just not suited to their needs.

That’s why Good Return works with institutions that share our social mission. They must believe in an integrated approach, delivering responsible, inclusive microfinance services alongside accessible capability development programs. Our goal is to help them deliver products that are responsible – safe, affordable, and reliable; inclusive – available to all in the community, particularly the poorest and most vulnerable; and responsive to their needs.

Good Return’s work on Social Performance Management (SPM) has yielded positive results as we build the expertise of our partners. Looking ahead, we will continue to develop the Progress out of Poverty Index (also known as the PPI, an objective country-specific scorecard for tracking poverty levels), and promote better client protection practices (based on the Smart Campaign’s Principles) and the Universal Standards for Social Performance Management (USSPM).

USSPM provide a guide to help financial service providers improve their social, environmental and financial performance. Working with our partners and their national microfinance associations, we encourage them to apply these standards in shaping a client centred, community based, poverty alleviation agenda.

Visit the Good Return website to see our plans for 2015.

Relationship established with five association partners: Rural Microfinance Development Center in Nepal, Center for Microfinance Nepal, Microfinance Center of Poland, Cambodia Microfinance Association, and Microfinance Pasifika 396 MFI board, management, & staff trained this financial year for a cumulative total of 1,354 to 30 June 2014 - Gender participation: 55% ♂, 45% ♀

Progress Out of Poverty Index development in Nepal and Fiji

Program Highlights

10

Trek to End Poverty, March 2014In March 2014, eleven participants boarded their flight to the Philippines on our inaugural trip, the Women of the World: Trek to End Poverty. The team spent 10 days visiting remote villages in the Philippines to see our financial education and microfinance programs first hand. The trip culminated in a trekking challenge – three days climbing Mt Madjaas.

The trip was a wonderful experience for everyone involved, and we were delighted by the success of the participants’ fundraising. We are looking forward to our next trip, the Pedal to End Poverty in Cambodia in March 2015.

1. Sarah Paparo with Filipino women on International Women’s Day.

2. Nicole Jamison, Kate Fabian, and Di Ryall are welcomed by Mary Ann (far right) and her centre members.

3. The group on top of Mt Madjaas.

“It confirmed in my mind and my heart that Good Return has a powerful and life changing role to play to alleviate poverty.”

– Kate Jordan, Board Member & Trip Participant

1 2

3

11

Vanmai Savings and Credit Union (SCU) was established in response to the lack of savings and credit services available to rural households in Laos. It was launched in late 2010 by WEAL and our affiliate World Education Inc. The meaning of ‘Vanmai’ is ‘new day,’ and it represents the dawn of an effort to help the rural poor of Salavan province access financial tools essential to escape poverty.

Starting with a small group of motivated community leaders, and seed funding of $10,000 provided by WEAL, Vanmai SCU has gradually increased its membership, savings base, and loan portfolio to become a sustainable member-owned financial institution with total assets of $100k. Vanmai achieved financial self-sufficiency in 2011, and WEAL’s five year support to this initiative ended in June 2014. We have negotiated with the German development agency GIZ to continue to provide technical support through its extensive rural banking support program in Laos.

We are pleased that Vanmai is able to access this support to grow and thrive.

Program highlights• Increase in membership to 822 members• 50 participants in sustainable agriculture and financial literacy training• Increase in total assets to approx. $100k, and loan portfolio to approx. $80k• Dividends distributed to members following Annual General Meeting in

February 2014• 13 Board & staff members received training on topics such as credit and

delinquency management, compliance reporting, and financial literacy.• Negotiated ongoing technical support from German development agency GIZ

CAFE InitiativeOver the years, we have observed that giving the poor access to financial products and services is not always enough to break the cycle of poverty. Many do not understand how to use these services, and as a result, valuable financial tools for poverty alleviation are being bypassed by the very people they are designed to help.

CAFE (Consumer Awareness and Financial Education) is targeted at two levels: MFIs, and their clients. For MFIs, it responds to recent calls for more responsible lending and client protection standards in the sector. We work with national microfinance associations and financial service providers to strengthen their consumer awareness and financial capability development efforts.

At the client level, CAFE aims to improve the power of financial education to change personal behaviours. It recognises that financial knowledge by itself is not enough. To have long term impact, training must provide people with the confidence to change their mind set and behaviours. It is these capabilities that enable low income households to improve their livelihoods – and their lives – in a truly sustainable way.

CAFE is currently in a pilot phase with our partners in Cambodia and Nepal.

Vanmai SCU Update

12

Field Support Officer Program

This year marked the beginning of our Field Support Officer (FSO) program. It was launched through the placement of four full-time, skilled volunteers with partners in Fiji, Tonga, Cambodia, and the Philippines for a period of 12 months. It is the first year of a program which we know will provide great benefits to our work in the region.

The program has provided invaluable support for project management and coordination, relationship management, technical assistance, and creating marketing and communications material. We intend to grow the program in the future according to partner and program needs.

2014 Field Support Officers

Esther Bates

SPBD, Suva, Fiji

Background: Commercial Management

“One of my favourite things about being an FSO is meeting SPBD’s clients and hearing how even small amounts of resources and basic financial training can have a huge impact on their lives. The gratitude and warmth of the ladies I meet makes the hard work worthwhile!”

Zac Colborne

SPBD, Nuku’alofa, Tonga

Background: Economics, Applied Finance

“Being part of a partnership that aims to provide women with the opportunity to pull themselves out of poverty and improve their own lives and those of their family is why I love this role and being here in Tonga.”

Zena Van Bemmel

SECDEP, Iloilo City, Philippines

Background: Arts, International Development

“I enjoy working for an organisation that sees the value in supporting the disadvantaged. I love knowing that our work is valued and appreciated, through the genuine smiles that always greet me, and the overwhelming generosity of the women we work with.”

TPC, Phnom Penh, Cambodia

Background: Program Management, Training

“I really enjoy being an FSO. It’s challenging, rewarding, and I’m learning a lot. One day I will be helping TPC with some aspect of its client protection agenda, the next I will be on the back of a motorbike visiting a client, and the next I will be presenting to a room of branch managers. There is never a dull moment!”

Jason Weise

13

ConnectEd UpdateWorld Education Australia in partnership with YWCA NSW, World Education Inc, and the Alcatel Lucent Foundation implemented the ConnectEd program in regional NSW over the past three years.

The program utilised a range of interventions to equip students with life skills to enter the world of work. The training covered topics including financial literacy, basic IT and internet safety, health and nutrition, rights and responsibilities at work, safe consumerism, vocational skills training, and personal development. In conjunction with the training courses, youth have participated in mentorship and career workshops with Alcatel-Lucent staff.

Alcatel-Lucent staff have also provided support by acting as mentors in financial literacy workshops, to equip young people with knowledge on day-to-day financial considerations from financial scams to mobile phone plans, as well as a range of other volunteer activities. The program has also provided work experience and work placement opportunities for out of school youth.

The program’s target of 600 was later stretched to 800, and reached over 1,200 youth. The three year program ended in March 2014.

Program highlights• 1,211 youth participated in the program• 836 in-school-youth completed training courses and life skills programs• 375 out-of-school youth completed vocational training and work experience

Lina is a trainer with Good Return’s partner in Tonga, SPBD. When we met, she was telling the class a story about Frank Lowy. How he came to Australia with nothing and went on to build the Westfield shopping empire. Her message – if you work hard, no matter how little you start with, you can achieve your dream.

This prompted discussion about the challenges in running any enterprise. As the participants shared their experiences, Lina offers advice and encouragement. She notes the women often lack confidence. “In Tongan culture, once you’re an adult, you should make your own money and not rely on others.” This lack of support discourages many women, and so a key part of her job is to encourage them to believe in themselves.

Why did she become a credit centre manager? “I’d separated from my husband and needed to support my kids.” But she soon began to relish the job. “It really hits me when we do the vision lesson. I ask the class to exchange their drawings, and many start to cry when they share their dreams.”

Lina practices what she preaches. “I keep my vision on the wall so I see it every morning when I wake up.” And she concludes with this thought. “My passion is working with people, and these women inspire me. I learn from them and they motivate me to follow my dreams too.”

Lina Atamai

1. ConnectEd graduate with her certificate

2. Lina with Jessie, our Program Officer

3. Lina conducting a training session

1

2

3

14

Environmental ImpactWe are committed to promoting sustainable, environment friendly practices with all of our global partners, and improving our own environmental performance.

World Education Australia has made a commitment to be carbon neutral by 2017 and we have been making progress towards this goal. Due to the nature of our work and in particular, the requirements of air travel for our international staff, carbon neutrality will be achieved through investing in ethical carbon offsets.

This year we have chosen to balance 50% of our total carbon emissions from air travel (111 tonnes CO2 in the financial year) with offsets that support energy efficiency projects in two of Good Return’s partner countries. These include the Cambodian Cookstove Project, which is developing and distributing improved, energy-efficient cookstoves, and the Indonesian Musi Hydro Project, to generate energy and employment in the upper reaches of the Musi river in Sumatra. We believe these contribute to a more efficient and cleaner energy future.

By facilitating access to energy efficient technology among poor households, our Sustainable Energy Program achieved an average reduction of 617 tonnes of CO2 per year. Although the Program is now finished, the technologies that we facilitated are still in use, so reduction in emissions continues.

2011-12 2012-13 2013-14

CO2 Emissions (tonnes)

Electricity 10.4 13.8 19.0

Air Travel 53.4 55.9 111.2*

Scope II Energy Consumption

Electricity (kWh) 11,790 15,730 21,615**

* This year’s CO2 emissions include flights from staff who are based outside of Australia. This data was not included in 2012-13 and earlier.** The World Education Australia offices relocated in February 2013 to premises nearly double in size to accommodate our growing team, thus the increase in electricity usage.

50% electricity is renewable GreenPower

from Origin Energy

100% recycled paper used in office

720 litres of paper diverted from landfill

15

Board of Directors

Neild McIntosh, Chair B.A. (Actuarial Studies), M.A. (International Development)Neild contributes as a non-executive director of equigroup (a subsidiary of CBA), and also for Can Assist, a charity helping cancer patients in NSW.

William PigottB.S., M.B., formerly FRACPBill is a former education and public health practitioner, working with WHO for 21 years, latterly in Nepal and Cambodia. He is now involved in community support with Landcare in NSW.

Margaret Wright, TreasurerB.Com., FCAMargaret is a strategic advisor who brings her executive background in accounting, audit and IT roles at KPMG and Macquarie Bank to consult on a variety of technology and business process issues.

Kate JordanB.Com, LL.B, LL.MKate is a Corporate and Mergers & Acquisitions lawyer. She is the Deputy Chief Executive Partner of Clayton Utz.

Pam JonasB.A. (Hons), M.A. (Public Policy & Management)Pam worked for more than two decades in education, training, and employment policy. She applied this expertise as an education and community consultant, and now splits her time between Australia and France.

Guy Winship, CEOB.Soc.Sc., B.Com (Hons), M.Sc. (Town & Regional Planning)Guy is a development expert who has worked in Africa and the Asia Pacific. He consults on behalf of the organisation, advising on microfinance, institutional governance and livelihoods training. He is the only executive director.

David KahlerB.Sc, M.A., M.Ed, Ed.D.David is an organisational development and education specialist with over 40 years of international practice. From his base in Normandy he maintains oversight of World Education Inc’s European programs.

D. James MacNeil, AlternateB.A., M.Ed., Ed. D.James has worked for World Education Inc. (WEI) on education and livelihoods development programs in Indonesia, Cambodia, Nepal and India. He is based in Boston where he is Vice President of WEI’s Asia Division.

Gordon CairnsM.A. (Hons)Gordon’s career spanned leadership roles with several global companies, including as CEO of Lion Nathan Ltd. He chairs Origin Energy and its Foundation, is a non-executive director of Quick Service Restaurants, and a senior advisor to McKinsey.

Damien WoodsB.Sc., MBADamien has worked for more than 25 years as a management consultant, mostly with Accenture, specialising in the healthcare field. He is a director of Accenture Australia Foundation, Smile Dental, and Australian Agricultural Technologies.

1

2

3

416

1. Farmer Field School participants at a training session in West Kalimantan, Indonesia

2. Financial education under a mango tree in Cambodia

3. SECDEP staff assess damage caused by Typhoon Haiyan on Panay Island, Philippines

4. Shova, the General Manager of Manushi MFI in Nepal, helps survey a client as part of testing the new Progress out of Poverty Index

17

Governance

Mereani, 60, lives on the Coral Coast in Fiji and has recently been elected Centre Chief in her village. She joined SPBD, our partner in Fiji, two years ago. About life before the loans, she said, “My husband is just a fisherman and I had to work on the farm so we had enough to live on. There are not many jobs for the villagers.”

She has now received and repaid several loans. Mereani started baking, screen-printing and tailoring businesses through purchases of an electric oven, frames and paints for screen printing, and cloth for sewing. Instead of selling her goods in her village where there is little disposable income, Mereani takes her wares to high-end resorts where people can afford to buy her products.

Each centre in Fiji now has a voluntary Financial Education Facilitator, a program that Good Return helped to initiate. This teacher mentors other women in her community in using their financial diaries. “My facilitator teaches me about cashflow, money, expenses and profit.” She told us. “The cashflow diary is very helpful to learn about the financial side of the business.”

She says, “The village looks up at the ladies because of their businesses, because they are respected they are able to make more positive contributions to the community.” Mereani has personally led a centre project to donate two bus stops to her village, funded in part by their centre funds and the remainder through member fundraising. We are excited to see what is next for Mereani!

Mereani Uluimoala

Legal StatusWorld Education Australia Ltd (WEAL) is a public, voluntary, not-for-profit company limited by guarantee. WEAL has charitable status as a registered Public Benevolent Institution (PBI) and has the authority to fundraise in all states of Australia.

World Education Australia Overseas Relief FundWEAL is the Trustee of controlled entity World Education Australia Overseas Relief Fund (WEAORF), which holds Deductible Gift Recipient status from the Australian Taxation Office. The objective of WEAORF is to support economic and social development programs to improve the lives of the poor in the Asia Pacific.

World Education Inc.WEAL shares its name and philosophy with its Founding Member, World Education Inc (WEI), a not for profit organisation based in Boston, USA. WEI was founded in 1951 and provides training and technical assistance through non-formal education across the globe. WEI and World Education Australia operate independently of each other, and all dealings are conducted on arms length terms.

ACFID Code of Conduct WEAL strives to maintain the highest possible standards of governance. WEAL supports and is committed to adherence to the ACFID Code of Conduct as a minimum standard for integrity, governance and reporting. All directors, paid staff and volunteers are expected to adhere to and uphold the Code of Conduct.

Board of DirectorsThe Board currently has ten members (which includes the Chief Executive Officer and an Alternate Director).

Board Meetings The Board met four times in the financial year: in September and November 2013, and February and May 2014.

Board Committees The Board has three sub-committees: the Audit Committee, the Nominations Committee, and the Remuneration Committee. These Committees meet on an as-required basis.

18

Independent Audit Report

Auditor’s Independence Declaration

Concise financial report for year ended 30 June 2014

World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au

19

Concise financial report for year ended 30 June 2014

Consolidated Statement of Financial PositionConsolidated Group

2014$

Consolidated Group2013

$ASSETSCURRENT ASSETSCash and cash equivalents 1,320,361 1,294,561Trade and other receivables 11,710 3,172Other financial assets (loans) 229,154 273,708Other current assets 63,384 66,637TOTAL CURRENT ASSETS 1,624,609 1,638,078NON-CURRENT ASSETSProperty, plant and equipment 29,912 40,593Intangibles 60,711 23,556TOTAL NON-CURRENT ASSETS 90,623 64,149TOTAL ASSETS 1,715,232 1,702,227

LIABILITIESCURRENT LIABILITIESTrade and other payables 124,580 158,596Special purpose funding 409,895 470,904Other financial liabilities (loans) 476,511 465,237Provisions 66,697 35,747TOTAL CURRENT LIABILITIES 1,077,683 1,130,484NON-CURRENT LIABILITIESProvisions 11,107 56,410TOTAL NON-CURRENT LIABILITIES 11,107 56,410TOTAL LIABILITIES 1,088,790 1,186,894NET ASSETS 626,442 515,333

EQUITYContributed equity - -Reserve for designated purpose 624,881 514,355Retained earnings 1,561 978TOTAL EQUITY 626,442 515,333

World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au

2013-14 Revenue 2013-14 Expenditure

18% 22%

27%28%

5%

Donations & GiftsMonetary

DFAT AustralianAid GrantsAustralian

Grants

OverseasGrants

Grants for Domestic Programs, Investment

& Other Income

1%

11%

12%

69%

InternationalPrograms

DomesticPrograms

Accountability& Administration

Fundraising

CommunityEducation

8%

20

Consolidated Statement of Comprehensive IncomeConsolidated Group

2014$

Consolidated Group 2013

$REVENUEDonations & gifts: Monetary 443,746 400,853 Non-monetary 247,763 170,828Grants: Department of Foreign Affairs and Trade 554,689 377,726 Other Australian 581,023 612,238 Other overseas 101,650 135,659Investment income 26,805 31,832Other income 353,053 485,618TOTAL REVENUE 2,308,729 2,214,754

EXPENDITUREInternational Aid and Development Programs ExpenditureInternational Programs Funds to international programs 750,904 716,636 Program support costs 588,862 487,713Community education 28,040 30,996Fundraising costs Public 119,745 133,396 Government, multilateral and private 29,453 26,985Accountability and administration 207,825 164,129Non-monetary expenditure 247,763 170,828Total International Aid and Development Programs Expenditure 1,972,592 1,730,683Domestic Programs Expenditure 225,028 276,334TOTAL EXPENDITURE 2,197,620 2,007,017Excess of revenue over expenditure 111,109 207,737Income tax expense - -Surplus for the year 111,109 207,737

Other Comprehensive Income - -TOTAL COMPREHENSIVE INCOME 111,109 207,737

During the financial year, World Education Australia

had no transactions in Bequests and Legacies,

or in Political or Religious Adherence Promotion Programs categories.

Consolidated Statement of Changes in Equity

Retained earnings$

Reserve for designated purpose

$Total

$

Consolidated Group

Balance at 1 July 2012 701 306,895 307,596

Items of other comprehensive income - - -

Excess of revenue over expenses 207,737 - 207,737

Amounts transferred (to) / from reserve (207,460) 207,460 -

Balance at 30 June 2013 978 514,355 515,333

Items of other comprehensive income - - -

Excess of revenue over expenses 111,109 - 111,109

Amounts transferred (to) / from reserve (110,526) 110,526 -

Balance at 30 June 2014 1,561 624,881 626,442

The excess of revenue over expenses from operations of the controlled entity, World Education Australia Overseas Relief Fund, is transferred to a Reserve for Designated Purposes. This recognises that the net assets represented by this reserve cannot be used for any purpose other than providing relief to persons in a developing country certified as such by the Department of Foreign Affairs and Trade; or, on winding up, must be transferred to some other fund qualifying under the Overseas Gift Fund Provisions of the Income Tax Assessment Act 1997.

World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au

Concise financial report for year ended 30 June 2014

21

Consolidated Statement of Cash FlowsConsolidated Group

2014$

Consolidated Group2013

$CASH FLOWS FROM OPERATING ACTIVITIESDonations and grants 1,620,099 1,179,743Customers 352,219 549,441Suppliers and employees (1,970,562) (1,737,935)Interest 26,805 31,832Net cash provided by operating activities 28,561 23,081

CASH FLOWS FROM INVESTING ACTIVITIESProperty, plant and equipment - (35,120)Capital WIP, Good Return software and web-site (57,751) (21,170)Security deposit - (18,176)Net cash (used in) investing activities (57,751) (74,466)

CASH FLOWS FROM FINANCING ACTIVITIESGood Return - net loans movement with public 11,274 160,932Good Return - net loans movement with microfinance institutions 44,554 (135,594)Repayment of WEI loan (838) 1,578Net cash provided by financing activities 54,990 26,916

Net increase/(decrease) in cash held 25,800 (24,469)Cash at beginning of financial year 1,294,561 1,319,030Cash at end of financial year 1,320,361 1,294,561

Table of Cash Movements for Designated PurposesCash available at beginning of financial year

$

Cash raised during financial

year$

Cash disbursed during financial

year$

Cash available at end of financial

year$

DESIGNATED PURPOSESDFAT ANCP annual allocation - 554,689 (554,689) -Skills For Life 190,298 380,154 (329,374) 241,078ConnectEd 11,316 233,264 (244,580) -Education & Microfinance Expansion 212,188 200,000 (307,647) 104,541Small farmers livelihoods 57,102 45,239 (102,341) -Other - 185,212 (120,936) 64,276

470,904 1,598,558 (1,659,567) 409,895

Good Return 391,591 682,900 (638,699) 435,792Total for designated purposes 862,495 2,281,458 (2,298,266) 845,687

Total for other non-designated purposes 432,066 83,790 (41,182) 474,674TOTAL 1,294,561 2,365,248 (2,339,448) 1,320,361

Good Return: amounts indicated under cash raised include loans and donations from public lenders and cash disbursed include donations to Good Return and loans to partner microfinance institutions.

World Education Australia Limited ABN 39 106 279 225. The full audited financial statements are obtainable at www.worlded.org.au

Concise financial report for year ended 30 June 2014

22

Supporters, Management & StaffWorld Education Australia thanks our partners and supporters for their contributions. These organisations and people have been essential to the impact and sustainability of our work and we thank everyone for their time, funding, and talent.

Australia Adobe, Australian Aid, Australian Council for International Development (ACFID), Brown Box, Custom House, Fern Software Australia, Harvest the Net, Macquarie University, ME Bank, Miss Chu, Optimiste Wines, Salesforce.com, SmartGroup, Supporter360, Thinktank, Travel and Associates – Press & James, and XE.com.

Corporate PartnersAccenture Australia Foundation, Accenture, Clayton Utz, Deloitte Foundation, Deloitte, Origin Foundation, Origin Energy, and the Westpac Group.

Regional Asian Development Bank, International Fund for Agricultural Development, Microfinance Pasifika Network, World Education Inc.

Volunteers, Friends, and Donors Andrea Chang, Ann McDonald, Anne Bissaker, Alex Gonda, Anika Fletcher, Beck Rolls, Book of Giving / Gabby Cox, Caroline Armitage, Daryl Pilkington, David Weston, Eric Hamilton, Esther Bates, Fionnuala Maye, Glenn MacKrell, Jasminder Hayer, Jason Weise, Kate Fabian, Lauren Black, Leonard Kary, Lesley Hume, Loma Saker, Margaret Campbell, Natalie Sikand, Oliver Hoffmann, Paul Griffin, Peter Van Roekel, Rhett Brokenshire, Ron Wills, Sandrine Vullierme, Sharlene Dadd, Sheena Coupe, Stella Bray, Stephanie Moroney, Tasha Pain, Thomas Winship, Velvet-Belle Templeman, Vincent Cleary, Ware Kuo, Zac Colborne, Zena van Bemmel, the Australian Communities Foundation, the Cairns Family, the Elizabeth Ann Powney Charitable Trust, the English Family, the Family Frank Foundation, the Greatorex Foundation, John Cook, the McIntosh Family, the Morawetz Social Justice Fund, the Yom-Tov family, our online editors, and all our generous donors.

ManagementWorld Education Australia has a team of full time, part-time, and volunteer personnel in Australia and overseas. The team at time of publication comprised:

Guy Winship CEOShane Nichols Program DirectorSujinda Hwang Social Enterprise DirectorNicole Stanmore Development DirectorNorm Sturrock Operations DirectorMehul Patel Group Financial ControllerIan Jackson Company Secretary

AmbassadorsAnn Devine, Diana Ryall, Francesca Rush, Heath Francis, Lisa Roberton, Paul Mitchell, Richard Grimmond, Shravran Malkani, and Tharani Jegatheeswaran.

StaffAnjana Retnasaba, Asim Jaweed, Bunthoeun Sao, James Le Compte, Jessie Fisher, Joanne Qian, Joni Freeman, Melodie Buendia, Muhammad Awais Butt, Nicole Stanmore, Rob Haggett, Robyn Robertson, Rose Ramilo, Sandra Carvajal, Sarah Webster, and Sesep Zainuddin.

Annual Report CreditsNorm Sturrock, Joni Freeman, Sarah Webster, Shane Nichols, and Ariana Neuman.

Design: Tracy Smith & Joni Freeman

Photos in Annual Report Jason Weise, Zac Colborne, Stephanie Moroney, Esther Bates, Kristen Briggs / Inspired Adventures, YWCA NSW, Jessie Fisher, Rob Haggett, Zena van Bemmel, and Budi Christiana.

Complaints ProcessPlease note that all complaints, questions or comments will in the first instance be actioned by a World Education Australia team member within 48 hours.

If this is not appropriate, or you are unsatisfied with their answer, please call us on +61 2 9114 8111 during business hours (9 am to 5 pm) Monday to Friday. Upon request, you can ask to speak to one of our senior executives. That manager will make sure your concern is addressed in an appropriate , discreet and confidential manner. You can be assured that every effort will be made to find a satisfactory resolution to your complaint.

ACFID Code of ConductWe are a signatory to the Australian Council for International Development (ACFID) Code of Conduct. Details of the provisions of the Code can be viewed in the ACFID website at www.acfid.asn.au. In the event that your issue entails a potential breach of the Code, you have the option of escalating it to the ACFID Code of Conduct Committee. Their contact details are in their website under the Complaints tab.

1

2

3

4

23

“Financial education has changed my family’s life”Not knowing how to manage your own finances means that when you have money, you spend it immediately. You don’t have savings to buy medicine for your son when he is desperately sick. You don’t always have enough food, and sometimes have to keep the children home from school so you can use that money for meals instead.

Not understanding interest rates means that you are at the mercy of moneylenders when these emergencies happen. They promise the world but instead create a burden of debt for life.

Eighteen months ago, this was the reality for Melania and her husband Unno, her son Romi (11) and daughter Oktavia (7). Their only income was from her small grocery store at home, and Unno’s daily wages as a farm hand on a rubber plantation.

She told us, “I did not know how to manage my family’s finances. If I got money, what happened in my mind was only how I could spend this money to buy something – whether it was important or not. Sometimes we earned enough for one month, and sometimes not. Our finances were terrible.”

That was why, in January 2013, when she heard about Good Return’s financial education program, she and her husband saw it for the opportunity it was, and signed up immediately and attended the training together.

There, they learned how to keep a financial diary, plan their family’s finances, and save for their children’s education. They took out a loan from Good Return’s partner, Credit Union Keling Kumang, and used their new knowledge to improve Melania’s grocery store and purchase their own small rubber plantation so Unno could earn more than just a daily wage.

But this change was only the beginning. When we visited them in March this year, they were even starting to build a new house.

“We had not planned to have a new house, but after our training we now know how to manage our family’s money, and we are able to build a new, better house for our family. We buy materials step by step, only when we have money. I build it myself because if we hire people it is expensive, and we can use the labour money for materials instead,” Unno explained to us.

Melania said that it was the financial training which helped her family start to build a better life for themselves.

“The training is useful for the community and can change the community, but many people have not realised this. Their life looks like our life in the past. Many people are very surprised what has happened to our family in just one year,” she said with a smile.

We are not surprised – this is what happens when people living in poverty get access to skills development opportunities. They begin to develop the confidence, knowledge, and capability to break the cycle of poverty for good.

Case Study: Melania Liana

1. The family in front of their old house and grocery shop

2. Inside the grocery shop

3. Melania and Unno proudly show their family’s financial diary

4. In front of the foundations of their new house

World Education Australiabuilding skills, changing lives

PO Box 479 St Leonards NSW 1590

Level 1, 174 Willoughby Rd Crows Nest NSW 2065

E info@worlded.org.au T +61 2 9114 8111

worlded.org.au goodreturn.org.au

This Annual Report is printed on recycled and carbon neutral paper. Copies of this and other World Education Australia Annual Reports can be obtained from our website.