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ANNUAL REPORT 2013

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Watoto Annual Report 2013

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annual report 2013

TABLE OF CONTENTS

2 ANNUAL REPORT 2013

14545868

SPONSORSHIP

FINANCIALS

WATOTO CHOIRS

THE WATOTO MODEL

8 | MESSAGE FROM OUR FOUNDERS

40 | LIVING HOPE

66 | WATOTO CHURCH

6 | VALUES4 | VISION

20 | WATOTO VILLAGES16 | BABY WATOTO

62 | VISIT WATOTO

10 | MESSAGE FROM THE EXECUTIVE DIRECTOR12 | SUPPORT OFFICES

46 | DEVELOPMENT AND SUSTAINABILITY

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VISION

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Watoto is a holistic care program that was initiated in response to the overwhelming number of orphaned children and vulnerable women in Uganda. Its aim is to rescue individuals and raise each one as a leader in his or her sphere of life so that, in turn, each individual will help rebuild the nation.

The Watoto model incorporates physical care, medical intervention (including HIV treatment), education, trauma counselling and spiritual discipleship. Our aim is to raise the next generation of African leaders. We encourage each child to pursue excellence in academic and practical skills as well as integrity in conduct and moral values, so that each one becomes a responsible Christian and a productive citizen.

Watoto’s goal is to replicate the model throughout Africa to fast-track the rescue of orphaned children and vulnerable women across the continent.

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VALUES

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CHRIST We exist to honour Christ and model every aspect of life on His character.

LOVE Based on God’s love for us, we focus on open communication and transparency.

We value people and recognise them as gifts.

CHARACTER We strive to maintain the highest standards of integrity and morality.

WORDWe are guided by the Holy Scriptures of the Bible.

FAITH Our trust is in God alone. We take and manage risk with freedom to make mistakes.

COMMUNITY

We exist to serve the community holistically: spirit, soul and body.

VISIONWe are a vision-led organisation, valuing leadership based on godly principles and goals.

EXCELLENCEWe do everything over and above the call of duty to the very best possible outcome.

JUSTICEGod tells us to “Seek Justice. Help the oppressed. Defend the cause of orphans.

Fight for the rights of widows.”

WORSHIPWe believe that all of life is a sacred act of worship.

Whatever we do is for the glory of God.

UNITYWe believe that, in unity with other like-minded churches, organisations and individuals,

we will be able to transform community.

GENEROSITYWe value an attitude of generosity, which is reflected in the way we give our time,

finances, resources, heart, praise, servanthood and encouragement.

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Watoto Church is proud and blessed by what Jesus has done through Watoto Child Care Ministries and Living Hope in 2013.

One of our major highlights was seeing first hand what Jesus is doing in the lives of almost 3,000 women that we have come along side in Watoto’s Living Hope initiative.

Not only have they been embraced by Jesus and other women that have supported them to make sure that their medical and physical needs are met, but they have actually become empowered with life skills, enabling them to engage with their families and communities. The best part is that they have become successful businesswomen and pillars of influence in their communities and because of this; the nation of Uganda is being rebuilt through these vulnerable women.

We were also privileged to see 152 babies graduate from our Baby Watoto facilities into their new homes in the Watoto villages. These once abandoned and now rescued babies are living testimonies of Jesus’ saving grace.

Next year, we are celebrating 20 years of Watoto Child Care Ministries. We have rescued and raised 4,000 abandoned and forgotten children since we started. Thankfully, Jesus did not forget them and has used the willing hearts of our partners around the world to change their story.

None of what is happening here at Watoto would be possible without the faithful support of people like you coming alongside us to carry out this exciting mission that Jesus has given us.

We can’t wait to see what He is going to do in the future.

Thank you and God bless you.

Gary & Marilyn Skinner Founders: Watoto Ministries

A MESSAGE FROM OUR FOUNDERS

8 ANNUAL REPORT 2013

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In 2013, God continued to confirm His faithfulness in accomplishing what He starts. We were able to sufficiently steward our resources to meet the needs, despite the continuing global economic downturn. God’s faithfulness presented itself in a 14% net increase in sponsorship, and for that we are absolutely grateful.

We had the privilege to rescue 416 children during the year. These additions to the ever-growing Watoto family brought the total

number of children in our care to 2,970. 62 students graduated from high school and 21 graduated from tertiary institutions (6 from technical schools and 15 from university).

Our sustainability farms provided food and milk worth US$ 160,000 for the Watoto villages and Baby Watoto. In addition, our faithful partners supported us in completing more than 50 infrastructural development projects, ranging from walkways to buildings.

One major highlight in 2013 was the Watoto alumni party hosted at the home of our founders, Gary and Marilyn Skinner. Watoto currently has 219 graduates. Of these, 168 attended the event to celebrate the goodness of God in their lives. It was such a joy to see the transformation in their lives. We praise the Lord for His provision and for these achievements.

By the close of the year, some of the planned activities were incomplete

or were deferred until 2014 due to certain financial and structural constraints. This presented us with an opportunity to begin a process of evaluation of our programs. The preliminary findings have led to the unlocking of great ideas, creativity and innovation that will see us achieve a greater impact in the future.

We will celebrate our 20th anniversary this coming June! The last 20 years has been a period of sowing and developing a new

A MESSAGE FROM THE EXECUTIVE DIRECTOR

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breed of leaders. To date, a total of 219 young men and women have graduated across various disciplines in practical and academic skills. These represent the seeds of transformation we have planted in this nation and we believe that they will bear fruit.

On behalf of our founders, Gary and Marilyn Skinner, I would like to take this opportunity to thank you, our partners, for your continued trust, committed support and belief in the vision God has called us to

fulfil. To the Uganda and global team, thank you for your dedicated service and hard work, which continues to make the vision a reality.

The Lord bless you and reward you.

Arora MajugoWatoto Chief ExecutiveGlobal Community

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Canada Office

Canada

Europe Office

England, Scotland, Wales, Ireland, Germany, Spain, France,

Estonia, Italy, Switzerland, Poland, Ukraine, Turkey, Albania

and all other European countries apart from Scandinavia, the

Netherlands and Belgium

Netherlands Office

The Netherlands and Belgium

Scandinavia Office

Norway, Sweden and Denmark

Americas Office

the USA, Brazil, Mexico, Colombia, Haiti, Venezuela, Argentina and all other countries in South America

To facilitate the support of international partnerships, Watoto has established eight representative country offices including Uganda around the globe, i.e. Asia, Australia, Canada, Europe, Netherlands, Scandinavia and USA.

Each country office is regulated by a specific Board of Directors. The country specific Boards are the overall policy and regulatory organs of Watoto in each country and ensures good practice at all levels.

The country offices are directed by an advisory International Board of Directors.

SUPPORTOFFICES

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Netherlands Office

The Netherlands and Belgium

Scandinavia Office

Norway, Sweden and Denmark

Africa Office

(with headquarters in Uganda): Uganda, Tanzania, Kenya, Democratic Republic of Congo (DRC), Egypt, Rwanda, Senegal, Ghana, South Africa, Nigeria, the United Arab Emirates (UAE), South Sudan, Ethiopia, Saudi Arabia, Benin, Morocco and Mozambique.

Australia Office

Australia, New Zealand, Vanuatu, Fiji and Papua New Guinea

Asia Office

Hong Kong, India, Pakistan, Indonesia, Singapore, Malaysia, Japan, Philippines, Taiwan, Thailand, South Korea and China

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THE WATOTO MODEL

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BABY WATOTOBaby Watoto is a home for abandoned and vulnerable babies. Tiny preemies to toddlers, found on rubbish heaps, in trash cans or abandoned in hospitals and police stations, are brought to their new home where they find acceptance and unconditional love.

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BABY JACK

Baby Jack was born premature. Unfortunately, his mother died shortly after giving birth to him. He weighed 0.93 kg (2.05lbs) when he first came to us. Now he is thriving under the love and care of the Baby Watoto family. He has since gained 3.21 kg (7.08lbs).

BeFore

aFter

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Many vulnerable babies in Uganda are abandoned or orphaned due to poverty, a lack of education and the HIV/AIDS crisis. The vast majority fail to make it to their fifth birthday because they require intensive care and medical attention that their immediate relatives cannot provide. It is common for these infants to be premature, abused or to have serious medical complications.

At Baby Watoto, care is given to destitute babies aged between 0 and 2, giving them the best start in life. Once they are well enough or are older than two, they are reunited with relatives or are transferred to a Watoto village.

Baby Watoto was able to rescue a total of 103 babies and toddlers in 2013. Capacity remained at 250 babies between the 3 facilities, and all 3 facilities remained at or near capacity for most of the year. The increase in babies obviously translated into an increase in staff (and staff salaries), utilities, medical care and supplies (especially formula and nappies). Our partners have continuously catered for these.

Our heartfelt thanks go to our generous donors, whose financial contribution has had a huge impact on the wellbeing of the babies and staff.

It was a joy to experience an increase in the number of teams travelling from various countries to help out at Baby Watoto throughout the year. Project funds raised by these teams helped to provide many of the items that could not be covered by our operational funding.

Major improvements were made in furnishing, decorating and landscaping. This has greatly improved aesthetics and functionality, not to mention the boost it has given to the morale of the team that works with the babies day in, day out.

Baby Watoto plans to increase the number of social workers who will focus on the tracing and resettlement of babies as well as creating an early child development team that will monitor American Society for Quality (ASQ) guidelines. These social workers will carry out continuous assessments.

In addition to a focus on training and further development of the staff and volunteers, we also aim to redecorate and carry out maintenance at the Kampala and Suubi facilities.

The key objectives for 2014 are to construct a preemie (prematurely born infant) room in Baby Watoto Kampala and a perimeter wall for Baby Watoto Gulu.

0.93kg (2.05lbs)AT BIRTH

NOW

WE

IGH

T IN

KG 3.21kg (7.08lbs)

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The Watoto model is designed to meet not only the physical needs of a child, but to provide everything the children we support require in order to grow up healthy and whole, with purpose and meaning.

Watoto responds to Africa’s orphan crisis by placing orphaned and vulnerable children in new families. Each Watoto family consists of 8 children aged 2 and above, and a mother who takes care of them.

Here, they are given the opportunity to grow up in a safe and loving environment. Watoto is not an orphanage in the traditional sense. Real homes are built to cater for children who have lost their family or are vulnerable for many reasons.

Watoto homes are constructed in the form of small, vibrant communities we refer to as villages. The village setting is representative of a familiar traditional dwelling for many people in Africa. The houses are positioned in clusters and contain all the essentials of any basic home in a developed country.

Each village contains a nursery school, kindergarten (pre-school), primary school, high school, vocational training centre, water project, medical clinic and a multi-purpose hall for use as a church and community centre. The villages provide safe and open outdoor spaces with beautiful vegetation and plenty of space in which to live and play.

Watoto currently runs 3 villages in Uganda: Bbira and Suubi in Kampala, and Laminadera in Gulu.

Physical Needs Children are placed in homes, so that clothing, food and shelter are provided. We purposefully create a family setting so that they will learn love and respect as they live with their mother and siblings. This allows them to live a healthy, functional life. Each child has his or her own bed and space to manage their belongings, helping to build a sense of ownership and responsibility.

WATOTO VILLAGESa place called home

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Education Each Watoto village contains a school for the education of the village children and those from the surrounding community. Our education is of a good standard and we work with parents and guardians to foster interaction with their children. Technical and vocational training is also provided for older children, whose gifting naturally gravitates towards these.

Healthcare Each Watoto village has a medical clinic that is used by those living in the Watoto villages and the surrounding community. The onsite clinic meets the everyday healthcare needs of the village and community and regular missions from medical teams help to take care of their special medical requirements.

Social and Spiritual Development Every Watoto village has a multipurpose centre that provides the site for a local church for the village residents and the surrounding community. A Watoto Church pastor oversees this ministry and the home cell groups: smaller fellowships that meet once a week.

During the week, the centre is used to facilitate many extra-curricular activities, which help with the psycho-social development of the children. Operating under the social work umbrella, youth workers organise activities (interpersonally and in groups) to help the children deal with and overcome any trauma and brokenness from the past.

A total of 253 new children were settled into the Watoto village homes from Baby Watoto and from the community. Fifty new mothers joined the homes to care for and nurture the children.

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physical needsAbandoned children are rescued and placed in loving families with a mom who cares. A home is provided with food, clothes and all they need to grow up well.

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All Watoto homes in the 3 villages received a fresh coat of paint, and other maintenance work, such as electrical and plumbing work, was carried out. Funds were provided for the materials needed to carry out the work.The new gift policy made many gifts from sponsors available. These were used to award exceptional conduct among the children, which motivated the children in the villages to behave well.

Each of the 2,800 children in the homes was provided with UGX 200,000 ($78.50) to shop for clothing. As well as enabling the children to dress well, the experience enabled our teenagers to go out into the markets and experience what happens beyond the village in the clothing markets and shopping areas. Mothers accompanied the younger children while they did their shopping.

The mothers (380 of them) were taken out on a 3-day retreat to a prestigious hotel. This was very motivating for the mothers, as it helped them realise that their contributions to the lives of the children are highly valued. It also gave credence to our claim that: “Mothers are our most important partners in raising the children.”

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education

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Each Watoto village contains a school for the education of the village children and those from the surrounding community. Our education is of a good standard and we work with parents and guardians to foster interaction with their children. Technical and vocational training is also provided for older children, whose gifting naturally gravitates towards these.

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At the end of 2013, Watoto had reached 2,780 children with formal education and practical skills through Watoto schools and had supported 157 students through university and college education. 19 of these graduated at the end of the year with certificates, diplomas and degrees in various disciplines.

The highlight of 2013 was seeing 38 students graduate with certificates from Watoto’s Vocational School at Suubi village. 44 S.6 students (senior secondary) from the 2012 class were admitted to universities to do various courses that would lead to degrees. 18 graduated in 2013 with diplomas and degrees from Makerere University Kampala (MUK), Makerere University Business

School (MUBS), Uganda Christian University (UCU) and Datamine Technical Business School. In total, 268 candidates were presented for Uganda National Examination Board (UNEB) exams at P.7 (the final year of primary school), S.4 (junior high) and S.6 levels.

A total of 118 students from the community surrounding the Watoto villages are benefiting from formal and practical education, and 69 students pay fees to attend the Watoto Hope Senior School at the Suubi village.

31 new teachers were recruited at the beginning of 2013, bringing the total number of teachers to 162. As well as providing formal training, they provide counselling and guidance for their students.

We were also able to open Hope Senior School in Laminadera. With the help of our support offices, we purchased 29 computers with N-computing technic (a multi-layered virtual desktop that allows multiple users to work from the same operating system) for the school. We held our first careers fair. We also hosted our first joint dedication service for all UNEB candidate classes at Suubi, which was attended by students from the Laminadera school.

The highlight for 2013 was the evaluation carried out for Watoto’s Education Department. This helped the department develop a proactive improvement plan for the next 3 years.

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Thursday, April 11, 2013, will forever be remembered in the history of Hope Senior School, Laminadera. On this day, Caleb House (a building that houses 4 classrooms, built in memory of Caleb Koke) was dedicated to the Lord. Caleb was killed in a tragic accident after leading a youth service at a church in the US. This was the first block to be constructed within the senior school, enabling vulnerable Ugandan children to fulfil the dreams God has placed in their hearts to change nations.

Caleb House is home to the Physics, Chemistry and Home Economics laboratories that are being used to shape the next generation of doctors, engineers and nutritionists. The Laminadera classroom block was made possible by Pastors Rob and Laura Koke from Shoreline Church in the US, who raised the necessary funds for its construction.

At the event, students showcased their great talent in music, drama and speech-giving. The dedication was a time filled with emotion and joy as Laura Koke stood to hug the children. In a passionate thank you to the Koke family – and particularly Laura – one of the children said:

“You are a mother who lost her precious son Caleb. We are children who have lost our beloved mothers. The Bible teaches me that unless a grain of wheat falls to the ground and dies, it remains alone. But its death produces many new grains that will produce a plentiful harvest of new kernels.

“Auntie Laura, Caleb’s death has led to new lives… many of them. We are some of those children who now have hope for a brighter future. Today, what the devil meant for evil, God has turned for good. You have become our mother.

“Thank you for recognising that each life is terribly special, and for understanding that the spurious definitions of social standing, or party affiliation, or race, or age or sex do absolutely nothing whatsoever to diminish how terribly special each life is.

“Thank you for adding to the grand drama of humanity rather than seeing life as a ‘one-man show’ within which you play the leading role. In all of that and so much more, thank you for loving the children!”

REMEMBERING CALEB

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HEALTHCARE Each Watoto village has a medical clinic that is used by those living in the Watoto villages and the surrounding community. The onsite clinic meets the everyday healthcare needs of the village and community and regular missions from medical teams help to take care of their special medical requirements.

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MEDICAL INTERVENTION

eye care

Last year, check-ups were conducted by the Uganda Protestant Medical Bureau

(UPMB) for our mums and children at a highly

subsidised rate. A number of them needed glasses that we were unable to afford, but we received a donation of 737 pairs of glasses from Lions International through

the Watoto USA office. These were tested and

matched by UPMB for 62 of our mums and children,

all of whom have really benefited.

dental servicesWith the help of a local volunteer dentist, we were able to set up a

dental unit in Suubi, which provides basic dental care

for children and mums. The unit is around 70%

functional; however, there is still a need to equip

and staff it fully. For more complex dental issues, we were able to work out a

partnership with the dental clinic at Mengo Hospital, which provides us with

a quality service at more affordable prices.

healthcare

With the help of procurement, we were able

to successfully lobby for insurance provider UAP to take on our village clinics

as health service providers for our staff. This has

benefited us tremendously by making healthcare easily

accessible for all resident Watoto staff members who

are insured with UAP.

pharmacy stocksmanagement. In 2013, we were able to manage our

stocks more effectively and efficiency was improved.

There are now fewer untimely out-of-stock

instances and there is less unnecessary hoarding of drugs, which previously

ended up exceeding their expiry dates. There is now greater transparency and accountability among the

clinic staff.

The financial contribution of Watoto donors, sponsors, partners and friends has had a huge impact on the medical services we’re able to provide to all the individuals in our care, as well as to the extended community.

new projects

We were able to successfully complete our Reconstructive Surgery Project. The aim of the project was to restore health and dignity to those who were victims of the LRA war. By the end of the project, we had provided surgical rehabilitation to 169 people with injuries from the war in northern Uganda.

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equipmentWe purchased hospital

beds, examination couches and mattresses using funds

from Jackson Rhodes (US). We were also able

to purchase some capital items from our budget,

including furniture, curtains, a Gulu generator,

oxygen cylinders and nebulisers.

We were able to launch a computerised patient

record system in the Suubi clinic. The system is now

operational and will help us to manage our patient data

more effectively.

internet access

The Suubi clinic acquired internet access. This has

improved communication between Suubi and head office, so the submission

and receipt of reports and feedback is now more

efficient.

screening programs

A public health focus was implemented through village-wide screening in Gulu and Suubi, HIV

support groups, cervical and breast cancer

screening programmes, and health education

programs.

mosquito nets

We received 76.5 billion shillings ($30,060) for

the purchase of mosquito nets for all the mums’

and children’s beds. This is part of our malaria

mitigation project, which will commence in 2014.

clinic registration

All 3 Watoto village clinic registrations were renewed and the majority of staff practicing licences were also renewed. Registration

is a mandatory requirement for us to operate within the legal framework of the Ministry of Health (MoH).

government initiativesWe were able to implement government health initiatives, such as childhood immunisations and child health days.

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SOCIAL AND SPIRITUAL DEVELOPMENT Every Watoto village has a multipurpose centre that provides the site for a local church for the village residents and the surrounding community. A Watoto Church pastor oversees this ministry and the home cell groups: smaller fellowships that meet once a week.

During the week, the centre is used to facilitate many extra-curricular activities, which help with the psycho-social development of the children. Operating under the social work umbrella, youth workers organise activities (interpersonally and in groups) to help the children deal with and overcome any trauma and brokenness from the past.

A total of 253 new children were settled into the

Watoto village homes from Baby Watoto and from the community. Fifty new mothers joined the homes to care for and nurture the children.

All Watoto homes in the 3 villages received a fresh coat of paint, and other maintenance work, such as electrical and plumbing work, was carried out. Funds were provided for the materials needed to carry out the work.

The new gift policy made many gifts from sponsors available. These were used to award exceptional conduct among the children, which motivated the children in the villages to behave well.

Each of the 2,800 children in the homes was provided with UGX

200,000 ($78.50) to shop for clothing. As well as enabling the children to dress well, the experience enabled our teenagers to go out into the markets and experience what happens beyond the village in the clothing markets and shopping areas. Mothers accompanied the younger children while they did their shopping.

The mothers (380 of them) were taken out on a 3-day retreat to a prestigious hotel. This was very motivating for the mothers, as it helped them realise that their contributions to the lives of the children are highly valued. It also gave credence to our claim that: “Mothers are our most important partners in the raising of the children.”

Last year, a great deal of emphasis was placed upon helping children with behavioural difficulties. We explored various ways that we could help our children make responsible choices and change the direction of their lives.

Due to poor behaviour, Fred Kamukama was resettled with his only existing relative, his aunt. It was heartbreaking for Watoto, as his aunt’s living conditions are

so severe that she was unable to adequately care for him. However, Fred was a chronic thief, disrespected authority and was violent towards his friends in the village. For the safety of the other children and mums in the village, this decision had to be made. In spite of consistent counselling and discipleship, Fred failed to change.

However, having stayed with his aunt for 7 months,

Watoto decided to give him a second chance and he was welcomed back. On returning to Watoto, Fred was placed under the care of Betty Nakiwala, his housemother, who welcomed him lovingly and offered him a fresh start. With the help of the village manager, Timothy Nyangweso, Fred was able to overcome some of the challenges he had. He completed his education and is now a car mechanic.

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Julius Mutebi is a seven-year-old boy who lives in house 46, Suubi Village. He joined Watoto on April 30, 2012. At the time, he walked on all fours because of a contracture (deformity) in his left knee, which was the result of a burns injury.

In May 2012, he was referred for surgical rehabilitation at CoRSU. He underwent a series of operations to release the contractures, the wound site was grafted, the limb was immobilised in a splint and crutches were provided to aid his mobility. He also had physiotherapy.

After approximately 1 year of rehabilitation, there was still a small degree of deformity. Knee fusion and fixator adjustment took place and screw replacement was carried out a couple of months later to lengthen the left leg further. He was also given shoes and new crutches. He is currently mobile with the aid of crutches and his legs are almost the same length. He will continue to be reviewed at CoRSU.

A SEcoND cHANcE

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LIVING HOPEEmPowEriNg womEN

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Initiated in 2008, Living Hope exists to restore dignity to vulnerable women in Africa. Most of the women at Living Hope are HIV-positive single mothers who are struggling to take care of their children. Some of these women were forced into marriage as young girls.

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The goal is to restore dignity to these women in the following ways

• Improving quality of life, assisting them with basic necessities such as food, clothing, shelter and medical care • Providing comprehensive HIV/AIDS care, including counselling and psychosocial support • Empowering and equipping the women with vocational skills that will enable them to become productive members of their communities • Setting up self-sustainable, income-generating projects using microfinance loans • Providing spiritual and moral discipleship

Following the graduation of the first intake of Living Hope, enrolled in 2008, Watoto’s Living Hope initiative welcomed 538 ladies in 2013. Each of these women had the opportunity to receive trauma rehabilitation. The main aim of these classes was to help the ladies understand trauma and its effects on their lives and to learn how to overcome it in their own circumstances.

At the end of the course, ladies who had been very bitter due to unforgiveness were able to forgive and let go of the past. Many attested to having been set free after speaking to people who had wronged them in the past and asking for forgiveness. Relationships were

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mended and families that had not spoken to each other for a long time began to do so.

The ladies also went through a discipleship and counselling course, which continued throughout the year. They each came in once a week and topics covered included: salvation; living the character of Christ; financial stewardship, including the principles of tithing and giving; and water baptism, among others.

The ladies, many of whom had not had the opportunity to receive any formal education, were offered classes that focused on character. These classes covered a range of topics, including what it means to be a hospitable person, a person of integrity and a woman of influence. The ladies really appreciated the practical issues that were addressed during these classes. They were also encouraged to practise the things they had learnt, as well as passing them on to their children and neighbours. By doing this they will become agents of transformation in their communities.

We had 3 main services during the year and 111 ladies gave their lives to Christ as Lord and Saviour. Six babies were dedicated during the year. This was because the women understood the teaching that only a person who

is old enough to profess Christ should be baptised.

As a number of the ladies are HIV positive, one of the goals of the Living Hope ministry is to keep them alive so that they can look after their own families. In a bid to support these women, we provide emergency food relief, food subsidies and rent in cases where the women have fallen ill and have not been in a position to work.

In 2013, 310 ladies received medical support from either the dispensary in Gulu or in Kampala. A total of 96 ladies were supported with rent. The majority were from Gulu, as many huts were burnt down as a result of wildfires during the dry season. A total of 43 ladies were given food subsidies when they were too ill to work. This is not a routine activity, but it allows the ladies to take their medication without missing any doses.

Ten ladies underwent reconstructive surgery to have their ears fixed through the Constructive Rehabilitation Services in Uganda (CoRSU). These procedures were carried out by a team of surgeons from France, led by the renowned Dr Firmin. The ladies were also given food subsidies for their families while they were having surgery. While the ladies were in hospital, they were looked after by fellow Living Hope ladies who had already been

empowered and were in a position to provide this support.

During the year, the ladies undertook various types of training, which enabled them to gain income that could be used to sustain their families. A total of 35 ladies were trained in soap making at the Uganda Industrial Research Institute (UIRI). These ladies learnt how to make different types of soap, such as laundry soap, liquid soap, bath soap and baby soap. Six ladies were trained to make products out of cow horn, also at UIRI, and 31 ladies were taught how to make paper bags.

A total of 128 ladies in Gulu were trained in agro-livestock production (the rearing of goats and pigs, and crop production) and have been encouraged to put these skills into practice. Eight ladies were given piglets to get them started.

A total of 77 ladies were taught tailoring skills during the year. These ladies did not know how to tailor at all at the start, but they were able to learn. They will continue to sharpen their skills in the coming year so that they are proficient enough to join the production unit.

Living Hope also teaches ladies how to engage in income-generating activities. Six ladies were involved in the making of paper bags, which are

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supplied to Watoto Child Care’s medical department.

A further 133 were engaged either in the tailoring unit or in the making of jewellery within the production units of both the Kampala and Gulu Living Hope centres. These products were either sold locally to visiting teams who come to the centres or are taken abroad by the various Watoto choirs that went on tour. The products generated a gross income of more than UGX 200 million ($78,585). We were also able to make uniforms

for the Watoto schools, earning a gross income of more than UGX 45 million ($17,682).

Eleven ladies were employed in the making of peanut butter, which was supplied to Watoto homes throughout the year, earning the department a gross income of more than UGX 51 million ($20,039). Some of the remaining peanuts were sold to members of the congregation.

Six ladies were involved in looking after the 62

beehives that were colonised. We were able to harvest 62 kg (137lbs) during the year, and this was supplied to Baby Watoto. A total of 50 ladies were employed in the production of shea butter. More than 14,000 kg (30,865lbs) of shea cream was produced during the year and each of the ladies earned a monthly income of between 180,000 and 230,000 shillings ($71-90).

Keep a Girl in School (KAGIS) is one of the interventions that is geared towards empowering the

girls while they are still young. A total of 1,027 girls in 10 schools were given sanitary towels, soap and underpants during the year. A total of 973 others were mentored and discipled throughout the year.

A total of 32 ladies from the previous intake were retained as community leaders and are involved in the visitation and identification of new ladies. They have exhibited great leadership qualities and are mentoring the younger ladies.

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The income each of the ladies received from the various units they worked in during the year enabled them to meet their basic needs for food, shelter and clothing. Most of them attested to the fact that they could afford to pay school fees for their children as opposed to begging.

All the above activities were possible as a result of the various partners who have supported us throughout the year, both locally and internationally. We had 2 medical teams carrying out outreaches in Kampala and Gulu. Various other teams also ministered to the ladies; carrying out pampering, manicures and pedicures, and teaching them how to bake and make simple crafts.

Our Return to Dignity (RTD) tour launched during the year. The aim is to raise awareness about Living Hope and to market the book of the same name that was written by Living Hope founder Marilyn Skinner. In 2013, she visited various cities in Australia, Canada and the US, selling products the ladies had made and raising funds for the ministry.

At the age of 14, Lucy was abducted by rebels from the Lord’s Resistance Army (LRA). She lived in captivity as a commander’s wife and a soldier for 8 years. When she was finally able to escape and return home, Lucy was rejected by her family, who feared that the community would harm them if they welcomed a former child soldier into their home.

Lucy also discovered she was HIV positive when she returned. She was forced to move in with an aunt, who introduced her to the man she married. However, without an education, Lucy had no way of supporting herself and her 6 children after the death of her husband in 2011.

Lucy joined Living Hope in June 2013. She had no skills to speak of, but she now works in our tailoring department and is able to make aprons and dolls. She is also able to provide for her children. “I give glory to God, because now I can stand on my own,” Lucy says.

She also appreciates the camaraderie at the centre and feels she is on equal footing with the other women. “We work as a team and there is no segregation,” she continues. “We encourage each other with our testimonies and it gives me hope.”

Partner with us to empower women like Lucy, who have experienced abuse, rejection and terrible loss. Together we can offer them the skills and knowledge they need to stand on their own again and to give their children a better chance in life.

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DEVELOPMENT ANDSUSTAINABILITY

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DEVELOPMENT ANDSUSTAINABILITY

Our sustainability approach exists to:

• Generate additional income through profit made from external sales. Watoto has established small-scale farms to generate funds that support some of our operating costs

• Provide training and education opportunities to Ugandan producers that will have a national and regional impact

• To create markets and storage facilities to benefit Watoto as well as the local community

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A ForwArD THiNkiNg APProAcH

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AGRICULTURE

In 2013, approximately 15 more acres (60,000 square-metres) of land was cleared for ploughing. Only 5 acres were ready for planting ahead of the rainy season, and corn was planted on this land. Rice will be planted across the rest of the acreage during the first rainy season of 2014.

A new toilet block and pole barn was built at the farm. The pole barn provides shade and clean surfaces for the purpose of storage and harvesting. It also provides shade for some of the equipment. A new container was purchased to provide storage space for farm supplies.

Equipment breakdown was the greatest challenge in 2013. At the end of the year, all of the tractors had broken down, which slowed work on the farm and increased the workload on the manual labourers. Some of the parts needed to fix the equipment have to be imported as they are too expensive in Uganda. We hope that funds can be raised to buy newer and better equipment such as tractors, planters and fertiliser spreaders, among other things.

An average of 40 acres of fruit and vegetables were planted during the 2 cropping seasons in 2013, including tomatoes, eggplant, bitter African tomato, cabbages, beetroot, carrots, onions,

pawpaw and watermelons. A steady supply of tomatoes, beetroot, carrots, sweet potatoes and pumpkins was made to the villages and to markets around the city, as well as to Watoto staff and church members.

Of the 60 acres of rice planted during the year, 36 tons were harvested from the first 30 acres and the remainder was to be harvested in January 2014. The first harvest provided rice for the Watoto homes for 2 months and rice porridge for Baby Watoto for 3 months. The January 2014 harvest will supply rice to the villages and seed for subsequent fields. Of the 105 acres of maize planted in 2013, the first 50 acres yielded 50 tons. This was processed into flour for the Suubi and Bbira villages and for the staff on all the farms.

The remaining 55 acres were to be harvested in February 2014 and moved to Buloba for drying and processing. The harvest will contribute to maize flour processed for the villages and feed for livestock at other farms. Approximately 17 acres of soya bean were planted in September and the crop was set to be harvested in February. The soya bean will be processed into chicken feed at the chicken farm.

The greatest challenge in crop production in 2013 was a lack of irrigation equipment. We decided to cut the number of

vegetable types grown on the farm in 2014 to 4 to focus more on the crops with the highest productivity. These will be tomatoes, onions, sweet potatoes and pumpkins. We will continue to cultivate 2 types of fruit: melons and pawpaw. We intend to have at least

15 acres of sweet potato growing and ready to harvest at any given time in order to maintain a constant supply of sweet potato to the Watoto villages and to the open market.

In May 2013, a team of Australian farmers visited Watoto and took an interest in the agricultural work Watoto is doing. They recognised our need for water supply and generously raised money to build a 20-acre dam. The dam was built in August and was completed as the rains started. This will allow it to fill to at least a quarter of its capacity. The development of the dam is most significant as it will have a direct impact on the farm’s productivity throughout the year and, in turn, on the income generated through agriculture. A decision was also taken to move the pump to a new location on the dam during the first quarter of 2014, and that more irrigation lines would be laid to sustain the crops grown during the dry season.

In July 2013, we participated at a school fair in Bbira Village in a bid to enlighten children in the village about agriculture. Many children came to ask questions and to learn. We have since experienced an increased interest in our agricultural projects from the children.

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Okello Sunday is one of our Watoto children from Gulu. He was abducted by the LRA in 2002 and managed to escape in 2003. Watoto welcomed him in 2007 and he was able to return to school as a result of our care. He is currently pursuing a diploma in Agriculture at an agricultural institute in Uganda. Sunday came to stay for 3 months in September to train on our tractors and to oversee corn shelling.

Okello is very hardworking and teachable, and he is always looking for

something new to learn. Our relationship with Okello has helped in developing a relationship between Watoto’s Sustainability Department and the institute where he is studying. He recently brought his lecturers and classmates on a study tour to the farm. In the future, he intends to use his extension work knowledge to help farmers in Uganda’s Northern region to improve their skills.

At present, 54 community members are employed at the farm, and we have seen tremendous social, moral

and economic changes in their lives. They have set up small groups, through which they each give one member an agreed monthly sum to help them in a business venture or to achieve a certain goal.

As a result, several new businesses have launched, including piggery and poultry keeping enterprises. Some have been able to buy land and others have built better homes for their families. One very significant change for these members of staff has been their commitment to giving their

children a better education with the money they are earning, giving them access to better schools.

The farm staff also set up the Watoto Farm Football Club. The club competes regularly with other teams in communities around the farm. This has given us a platform to interact with the wider community around the farm and we will continue to use this opportunity to share the love of Jesus in 2014.

BuilDiNg oN NEw SkillS

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GOAT/DAIRY FARMWatoto operates a goat farm to provide milk for Baby Watoto. There are currently 101 goats on the farm, producing an average of 630 litres per week.

A daily average of 53.2 litres of milk was supplied to the Baby Watoto Suubi facility. At 2573.8 litres, July was recorded as the highest monthly milk production the goat farm has ever experienced.

The farm began the year with 115 does, 5 bucks, 2 weaned kids and 11 nursing kids. It ended the year with 97 mature does, 8 young does, 3 bucks, 6 weaned kids and 7 nursing kids.

Fifteen does were purchased in April 2013. The does were healthy upon arrival, but did not acclimatise well. They struggled with worms, in particular. Overall, the does were

small for their age and most did not breed for several months. As a result, the decision was made not to purchase any more does for the time being. Instead, we will focus on raising replacements within our own herd.

From January to mid-November, a feed concentrate of whole corn, roasted/milled soybean and cotton seedcake was hand mixed at the farm, which was not ideal. However, from November, all the feed ingredients were mixed at the feed mill at Watoto’s Poultry Farm in Buloba, which produced better-quality feed. There has been an improvement in health, and thus an increase in milk yield from the goats.

Elephant grass is fed daily to all the goats in the barn at the end of each day, as well as to adult does in their paddocks every morning. The plan is to plant more legumes during the next rainy season in order to maintain a constant feed supply of legumes. These legumes add protein to the animals’ diet at a low cost.

An improvement in the health of our milking does was seen after the feed change, most noticeably in that there were fewer diarrhoea-related issues. Milk production slowly increased towards the end of the year as a result of the better feed supply.

The plan for 2014 is to continue with the feed implemented at the end of the year. Long-term storage (which allows us to buy in bulk) and corn bran production at the feed mill will further decrease costs.

A new buck barn was constructed in 2013. It is a great improvement compared with the previous barn,

which was dilapidated and caused various issues with the bucks. The new barn features 5 individual stalls.

Eleven Watoto teenagers were involved in work on the farm during the second school break, with 5 helping out during the third school break. They are very helpful at the farm, taking part in activities such as slashing, planting grass, and collecting forage and feed for the goats. The primary 6 class also visited the goat farm for a lesson in dairy farming, and it was exciting for them to see in practice what they had been studying in class.

The farm employs 9 full-time staff from the community around Suubi Village. They are very committed people and take their work seriously. One lady is HIV positive, and her earnings help her to look after herself and her children.

We hold weekly staff devotions and they are attended by all staff. Spending this time together every week has allowed staff to develop closer relationships with each other and with God. This has had a positive impact on the work at the farm.

Throughout the year, excess goat kids were donated to 2 Uganda-based outreach programs – the Joy Goat Development Programme and Destiny Orphanage – to help with their projects.

Excess goat kids were also donated to 3 staff members to allow them to begin their own programs. One staff member was given literacy lessons by the farm supervisor.

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POULTRY FARM

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Energy distributor UMEME finished running electric lines to the farm and internal wiring was completed for the mill houses and the existing barn. A solar pump was installed, water lines were laid and running water is now accessible on the farm.

Most of the fencing was finished by the end of the year and the plan was that it would be fully completed by the end of February 2014. The manager’s house was completed and was to be fully furnished by the end of April 2014.

The first barn was completed in July 2013 and an engineer from Big Dutchman in Germany came to help install all the equipment we needed. This was completed in early September and the first batch of chicks arrived later that month. Of the 8,300 birds we bought, there was a mortality rate of approximately 2%. This left us with just over 8,100 birds in the barn. The birds have grown and responded well to feeding and watering. Eggs will be laid from early February 2014, at an average of 250 trays a day.

The feed mill building was completed in August 2013. Equipment for the building was installed and is currently running well. A backup generator was purchased to back up the national grid electricity, and this allows processing to continue even if power shortages occur. Average production at the mill

is 6 to 8 tons of feed a day. This will become an income-generating project for Watoto as we attract clients from around the country. The mill has been processing feed for the goat/dairy farm, poultry farm and other clients since November 2013 and will continue to do so in 2014.

The maize mill was bought and installed in November. However, there were a few challenges when we started to mill maize into flour, as testing and making the necessary changes took a lot longer than we anticipated. Testing and fixing was set to be completed by mid-January 2014 so that we would be able to mill flour for the children, farmworkers and other clients by the end of January.

Storage bins that hold up to 450 metric tons of grain are in place. The bins were fully installed and ready to hold grain by the end of 2013; however, we only managed to store a maximum of 50 tons at any given time from October onwards. This grain storage capacity will be increased to 1,000 metric tons in 2014 and the sale of grain will become an income-generating project for Watoto.

Watoto children were involved in setting up the chicken barn and mill houses and are currently involved in running operations at the farm.

Francis mubiru, a Watoto graduate, is being trained as a feed mill supervisor and some of our Watoto children volunteer time during their school breaks to be involved in different activities around the farm.

The farm has provided employment opportunities for men and women living in the neighbourhood. Some work as full-time staff, while others are drafted in on contract for a particular job. As we provide work for the community, we believe that we are making an impact in the lives of the people around us.

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WATOTO CHILDREN’S CHOIRA SWEET AROMA OF PRAISE

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WATOTO CHILDREN’S CHOIRA SWEET AROMA OF PRAISE

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For the past 19 years, Watoto Children’s Choirs have impacted thousands of lives in a light-hearted way with the message of hope and love they have found in Jesus Christ.

In the latest dynamic concert, ‘Beautiful Africa: A New Generation’, children between the ages of 7 and 13 share the devastating stories of their past with a stronger voice than ever before, enthralling audiences all over the world with their energetic African movements, melodic voices and radiant smiles.

In 2013, 6 choirs – each comprising of 22 children and 10 adults – were sent out to Australia, Brazil, Canada, Hong Kong, Norway, Malaysia, Singapore, Sweden, the UK and the US to raise awareness and support for the plight of orphaned children in Africa.

As a result of their efforts, more than 4,000 people from around the world joined Watoto’s sponsorship family and thousands of dollars were raised for Watoto’s work in Northern Uganda, Southern Sudan and in Uganda’s Central region.

One of the major highlights of 2013 was the choir’s performance at the Global Grand Gathering of Boys and Girls in Beijing, China. This was a great learning experience for the children as they interacted with other kids from around the world and learned about the cultures of the many different countries they represented. The choir also had the opportunity to sing about the love of Jesus to thousands of people on CCTV within a nation in which the name of Jesus is not publicly proclaimed.

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One of the major highlights of 2013 was the choir’s performance at the Global Grand Gathering of Boys and Girls in Beijing, China. This was a great learning experience for the children as they interacted with other kids from around the world and learned about the cultures of the many different countries they represented. The choir also had the opportunity to sing about the love of Jesus to thousands of people on CCTV within a nation in which the name of Jesus is not publicly proclaimed.

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Sponsorship is the foundation upon which Watoto Child Care Ministries provided holistic care and support for almost 3,000 members in 2013. Our sponsors commit to support the program on a monthly basis and, by combining the funds of these sponsors and other donors, all Watoto members can be cared for.

Without the partnership of sponsors, the work of Watoto cannot be sustained or move forward. Sponsorship enables the vision to rescue, raise and rebuild.

The funds generated from nearly 32,000 valued sponsors enabled discipleship, education, home care and medical care in a safe and secure setting for more than 3,600 babies, children and mothers.

The 647 sponsors in Uganda – including 271 new sponsors who committed to partnering with Watoto in 2013 – are valued partners in realising the vision for Uganda. The behind-the-scenes administrative support of our sponsorship department keeps sponsors informed and

engaged by demonstrating the value of their commitment.

Sponsorship creates a relationship between the sponsor and the sponsored member. The photo and story of each child or member who needs sponsorship becomes both an invitation and an introduction for sponsorship.

In 2013, the sponsorship department:

Processed and delivered 8,624 letters from sponsors to their sponsored members

Facilitated and mailed 43,749 letters written by sponsored members to their sponsors

The aim is always to deepen these relationships and to inform sponsors about progress and growth. An annual update and photo of the sponsored individual is sent each year.

SPONSORSHIP

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When we saw the Watoto Children’s Choir perform at our church in May 2012, we had no idea that Watoto would have such an impact on my four-year-old daughter. We drove home that night and my daughter already had our family adopting a Watoto child and flying to Africa for our family vacations.

From that day forward, Africa was the topic of her conversation. It is incredible to see the passion God places in a child’s heart. As requested over and over, we threw an African birthday party for our daughter that November, and we decided to sponsor a girl called Sunday Ayoo as a very special birthday gift for Eva.

Sunday – Eva’s ‘African sister’ – is part of our family now, and we had the very unique privilege of meeting her when she came over on tour as part of the Watoto Children’s Choir this year. Eva and her 2 brothers experienced the blessing of spending an hour with Sunday, and that experience has changed my daughter forever.

We know that one day Eva will fulfil her childhood dream of seeing Sunday in Uganda, and are pretty sure mission work is in her future. Praise God for an awesome avenue to teach our daughter the fundamental principles of our faith in God. Thanks to all the people serving with Watoto who made this happen.

HOW PEOPLE HAVE SUPPORTED US PRACTICALLY

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VISIT WATOTOWAYS YOU CAN HELP

In 2013, Watoto hosted 1,710 guests; 727 of them making up the 56 build and ministry teams that travelled from 14 different countries around the world. There was a noticeable increase in the number of guests visiting from Africa (namely Burundi, Kenya, South Africa and Tanzania), many of whom expressed a desire to see and replicate the Watoto model.

The visiting teams participated in construction projects, and/or contributed to various ministry activities. While some teams participated in the children’s camp and the youth ministry, others came as medical outreach teams that catered not only to Watoto children and Living Hope ladies, but also carried out local outreach activities around the villages. Physical projects included work on classrooms, staff houses, basketball courts, playgrounds and house painting, to name but a few.

Many of the individual visitors came to visit their sponsored children in the homes and this afforded us an opportunity to host a traditional lunch for them with a mother and her 8 children. This often turns into an opportunity for more sponsorship as our guests interact with these families in such an intimate manner.

The number of village tours (usually impromptu) has also increased. As guests come to visit other ministries in Uganda, they hear about Watoto and suddenly request a tour of the villages. Once again, this opens up avenues for replication and/or sponsorships and donations.

The sustainability projects also act as a great magnet when it comes to guests and have resulted in many teams choosing to partner with us in an effort to increase self-sufficiency and our ability to take care of the vulnerable.

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In 2013, Watoto hosted 1,710 guests; 727 of them making up the 56 build and ministry teams that travelled from 14 different countries around the world. There was a noticeable increase in the number of guests visiting from Africa (namely Burundi, Kenya, South Africa and Tanzania), many of whom expressed a desire to see and replicate the Watoto model.

The visiting teams participated in construction projects, and/or contributed to various ministry activities. While some teams participated in the children’s camp and the youth ministry, others came as medical outreach teams that catered not only to Watoto children and Living Hope ladies, but also carried out local outreach activities around the villages. Physical projects included work on classrooms, staff houses, basketball courts, playgrounds and house painting, to name but a few.

Many of the individual visitors came to visit their sponsored children in the homes and this afforded us an opportunity to host a traditional lunch for them with a mother and her 8 children. This often turns into an opportunity for more sponsorship as our guests interact with these families in such an intimate manner.

The number of village tours (usually impromptu) has also increased. As guests come to visit other ministries in Uganda, they hear about Watoto and suddenly request a tour of the villages. Once again, this opens up avenues for replication and/or sponsorships and donations.

The sustainability projects also act as a great magnet when it comes to guests and have resulted in many teams choosing to partner with us in an effort to increase self-sufficiency and our ability to take care of the vulnerable.

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Scott and his wife Amanda visited Watoto in 2009. They returned home, but a piece of them remained behind and they were determined to revisit Uganda. Scott volunteered as a mechanic while Amanda served as a nurse at Watoto Suubi for 3 months.

The Watoto information pack helped the couple to prepare for their stay in Uganda. “Watoto is a great place to be; it provides good and safe homes to stay in,” says Scott.

While in Uganda, Amanda loved the sunny weather, the beautiful fruits, the matooke (green bananas) and rice, which she described as “delicious”. During his time at Suubi Village, Scott worked at the fabrication and mechanical workshop, where he helped fix cars, generators and other heavy machines. Unfortunately, Scott fell sick during his stay but, thank God, he underwent a successful appendicitis operation. He was grateful for the good care he received through Watoto.

Scott says that the children inspired him greatly, despite the traumatic backgrounds some had come from. He loved the fact that their hope was alive and that they are working hard towards obtaining a bright future.

The couple made precious friends and particularly cherish the moments in their cell group, when they had the opportunity to share the Word of God. The couple went on a safari at Murchison falls and the equator, and they both feel nostalgia when remembering Uganda’s most beautiful sights.

AN UNFORGETTABLE VISIT

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Watoto Child Care Ministries is a ministry of Watoto Church, which is based in Uganda, East Africa. Privileged with 29 years

of God’s favour, Watoto Church believes in being relevant to the community in which it resides by expediting love, justice and equity to a lost and dying world. This is done through holistic ministry to the whole man: spirit, soul and body.

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We are a cell-based community church, celebrating Christ,

growing and multiplying as each one reaches one, touching those around us with the

love of Jesus, bringing healing to cities and

nations.

OUR VISION STATEMENT

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REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF WATOTO CHILD CARE MINISTRIES

report on the consolidated financial statements

We have audited the accompanying consolidated financial statements of Watoto Child Care Ministries (‘’the Organisation”) and its subsidiary (collectively referred to as “the Group”), as set out on pages 9 to 33. These consolidated financial statements comprise the consolidated statement of financial position as at 31 December 2013 and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, together with the statement of financial position of the Organisation standing alone as at 31 December 2013 and the statements of comprehensive income, changes in equity and cash flows for the year ended, and a summary of significant accounting policies and other explanatory notes.

Directors’ responsibility for the consolidated financial statementsThe directors are responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibilityOur responsibility is to express an independent opinion on the consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated 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 internal control of the Organisation. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the consolidated financial statements.

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

OpinionIn our opinion, the accompanying consolidated financial statements give a true and fair view of the financial position of the Group and the Organisation as at 31 December 2013 and of the deficit and cash flows of the Group and the Organisation for the year then ended in accordance with International Financial Reporting Standards.

Certified Public Accountants Kampala, 2014

FINANCIALS

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Statement of comprehensive income for the Organisation

Notes 2013 2012 Shs’000 Shs’000 income 5 39,052,915 36,281,355 expenditure: operating expenses 9 (32,460,696) (29,547,883) administrative expenses 10 (7,949,447) (5,161,134) (40,410,143) (34,709,017) operating (deficit)/ surplus (1,357,228) 1,572,338 net finance (expenses)/ income 6 (83,051) 1,679,318 (deficit)/ surplus for the year (1,440,279) 3,251,656

other comprehensive income - -

total comprehensive (deficit)/ income (1,440,279) 3,251,656

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consolidated statement of financial position

2013 2012 Assets Notes Shs’000 Shs’000

Non-current assets property and equipment 11 43,893,724 40,308,090operating lease prepayments 12 472,552 487,796intangible assets 13 35,454 50,273 44,401,730 40,846,159 current assets inventory 16 301,553 361,276current income tax recoverable 20,578 -amounts due from related parties 17 204,862 49,440receivables and prepayments 18 1,312,577 917,341held to maturity investments 19 292,062 1,749,539Bank and cash balances 21 475,678 4,728,680 2,607,310 7,806,276 Total assets 47,009,040 48,652,435 Equity and liabilities capital and reserves accumulated surplus 44,951,458 46,512,756non-controlling interests 15 (12,337) (11,115)

44,939,121 46,501,641 current liabilities payables and accrued expenses 20 1,785,647 1,962,319amounts due to related parties 17 284,272 188,475

2,069,919 2,150,794 Total equity and liabilities 47,009,040 48,652,435

the financial statements on pages 9 to33 were approved by the Board of directors on 2014 and signed on its behalf by:

director director

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www.watoto.com

WATOTO UGANDApo Box 26366. kampala uganda

phone: +256 (0)414 313 561 email: [email protected]

WATOTO INTERNATIONAL OFFICES

WATOTO ASIArm 8e, capital trade centre, 62 tsun yip street, kwun tong, kowloon, hong kong

phone: +852 2639 9797 email: [email protected]

WATOTO CANADApo Box 98 victoria, Bc v8w 2m1

phone: 1-888-9watoto email: [email protected]

WATOTO EUROPEpo Box 64946 london, e4 0eF

phone: +44 (0)20 8592 1287 email: [email protected]

WATOTO JAPAN7-20-8-1201 roppongi minato-ku, tokyo 106-0032

tel / Fax +81(0)3-5775-3747 email: [email protected]

WATOTO NETHERLANDSsoestdijksekade 343, 2574 al den haag

email: [email protected] charity no: 1090810

WATOTO SCANDINAVIApostboks 200, 4303 sandnes

phone: +47 977 61 010 email: [email protected]

WATOTO USApo Box 1320, lutz, Fl 33548-1320

phone: +1-813-948-4343 email: [email protected]

WATOTO AUSTRALIApo Box 782 springwood qld 4127

phone: 07 3208 3500 email: [email protected]