* The capacity to produce a desired or intended result

A N N U A L R E P O R T 2 0 1 4

efficacy*

Page 1

CEO’s Report 2

Efficacy Study 4

Academic Results 16

The Christel House Model 15

Principals’ Report 8

Contents

College & Careers Programme 13

NPO Number: 017-044 NPO

Christel House South Africa is a registered Non-Profit Organisation in terms of Section 18A of the SA Income Tax Act 58 of 1962.

Christel House is an accredited Level 2 B-BBEE contributor.B-BEE Certificate Number: ADJGEN/171214/01

Ourpurpose...to help children break the cycle of poverty and become contributing members of society.

“Every child deserves a seat at the table of life.”

CHRISTEL DEHAAN Founder - Christel House South Africa

Social Services Report 22

How You Can Help 20

Giving Back 24

Chairman’s Statement 26

Financial Report 28

Map of Communities Served 32

CEO’s Report

After 30 years in the corporate sector, I found joining Christel House last year especially meaningful. Energised from day one by the staff’s passion to end the cycle of poverty, I count myself fortunate to be a part of this amazing organisation.

Key to the success of Christel House is its holistic model, which develops the “total person”. Our first challenge is to help learners build the character and self-esteem necessary to resist the endemic social pressures in their communities. This starts in Grade R and continues throughout the educational process. Next we must ensure that every child stays in school and graduates matric. And finally, every Christel House graduate is expected to be gainfully employed.

From an early age, learners are encouraged to envision their futures. Our remarkable educators teach relevant skills for today’s economy – collaboration and teamwork, problem solving, complex communication and critical thinking – to give students the tools and “grit” to succeed in the workplace.

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teamwork:Christel House Grade 2’s making postersfor a Women’s Day event. Collaboration and communication are fundamental to the development of the “total” person.

After matric, learners participate in our unique College and Careers Programme, which supports, mentors and guides alumni through university, college or apprenticeships, and into gainful employment.

Last year’s Annual Report measured our “Impact” on learners, their families and communities. This year we examine the “Efficacy” of our model. To this end we commissioned EY (formerly Ernst & Young) to conduct a study to test the effectiveness of the Christel House model. We believe it provides data-driven evidence that our programs are making a profound difference.

Today, as we review our “Efficacy” from 2014, there is much of which to be proud. But a great deal still remains to be done. Ultimately the success of Christel House relies on the strength of our model, dedication of our teachers and support of our donors. With your help, we can confront poverty and transform lives. I thank you most warmly for helping us fulfil our mission.

NICKY SHERIDANChief Executive Officer

THE EFFICACY STUDY Christel House commissioned EY to test the efficacy of its transformative education model. Using school records, interviews, surveys and benchmark data from national institutions and data repositories, this is a summary of what they found.

KEY FINDINGS - EffectChristel House significantly outperforms public schools in Mathematics and English at Grade 3, 6 and 9 levels and achieves markedly higher NSC pass rates. More importantly, Bachelor admission rates are significantly better - 64% vs the Western Cape public school average of 39% and the national public school average of 28%.

Christel House graduates are much morelikely to be enrolled in tertiary institutions (40% vs the national average of 16%), are less likely to drop out and are much more likely to find employment than those coming from the public school sector - 84% vs the 32% Western Cape youth employment average.

Christel House clearly contributes togreater socio-economic opportunity for thecommunities it serves, providing both learners and their families with a better sense of self, hope and safety.

Based on their accomplishments to date, Christel House children are expected to have opportunities for higher lifetime earnings and increased socio-economic impact.

KEY FINDINGS - CauseResearch shows that the superior performance of Christel House is largely attributable to:

Its holistic model of education.

The focus on employability fostered throughout their schooling and in particular the College and Careers Programme after graduation.

The passion and commitment of the Christel House educators.

Christel House learners are on a trajectory toward self-sufficiency.

The EY report goes on to recommend further investment and expanded partnerships to develop the critical College and Careers Programme further and continued focus on maths and science education - areas of skills shortage nationally - to build on the successes already achieved and further enhance quality employability.

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Sibusiso Mandongana

Currently in her last semester for a BSC Degree in Med-ical Biosciences, Sibusiso is also pursuing an internship and works as a tutor at the University of the Western Cape. She’s building to a career in Forensic Science.

EFFICACY...

Egoli Informal Settlement

3500 Households90% UnemploymentSocial Problems: Chronic poverty, food insecurity,substance abuse, violence, unsafe housing, poorsanitation, disease.

Our learners are born into abject poverty.

They arrive in Grade R speaking no English and with many developmental deficits.

Their families cannot afford school fees or transport and sometimes not even food..

95% of Christel House graduates are either working, studying... or doing both.

SIMPLIFIED

Page 6 Page 7

Principals’ Reports

To each individual and every organisation that supported Christel House last year, thank you. Your support enables us to attract the most talented teachers, provide excellent programs and technology, and deliver life-changing results.

For the past 5 consecutive years, Christel House has attained an impressive 100% matric pass rate. This year we again expect a 100% pass rate after one student retakes exams in April. Our goal was also to improve the quality of those passing marks. I am pleased to report that 64% of our matriculants earned a Bachelor’s pass with success in 11 of the 14 NSC subjects, including Physical Science. Impressive scores were also earned on the WCED systemic tests, with 86% of our Grade 9 learners passing the exam, and 73% passing the mathematics portion.

A new strategy for exam preparation was piloted in September. We opened doors to “The Farm,” a dedicated facility where Grade 12 learners can prepare for final exams. Supervised by live-in teachers, students have access to safe accommodations and a conducive study environment. It has been an unqualified success.

Technology is an integral part of effective learning. Dell, a key Christel House partner, empowers our teachers and learners by providing them with the latest ICT technology. And Microsoft, through their Innovative Schools programme, helps our educators innovate, share and scale best practices.

With your support, Christel House is committed to reversing inequality and giving impoverished children the tools they need to thrive.

RONALD FORTUNE Principal - Christel House Secondary School

Senior School Report

Big NEWS: Doors Open at "the Farm"Last September we opened the doors to our Matric Study Farm, a dedicated home where Grade 12 learners live and study in a safe environment in the lead up to final exams.

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There is an enormous need for programmes like ours across South Africa. Each year over 200 applicants compete for only 60 seats in our grade R classrooms. All these children are deserving, but we choose those whose needs are greatest.

Upon arriving at Christel House everything is new - the English language, teachers, toilets, uniforms, desks, books, canteen, grass, a playground - the list goes on. It is quite overwhelming - in a wonderful sort of way.

Over the next two weeks, our first-timers learn structure through repetitive procedural learning activities. They practice toilet drills, line-up protocol, dining etiquette and classroom rules. Teachers’ assistants translate for the children, who as yet have no English skills, and soon they begin to feel a sense of safety and belonging.

Grade R learners develop gross and fine motor skills through exercises that build strength and coordination. Also taught are Life Skills, like

Junior School Report

CAROL KRIELPrincipal - Christel House Primary School

making good choices and working well with others.

In Grade 1, the Character Building Programme expands. Learners perform drama, song and dance at weekly assemblies and in the process assimilate our core values of Respect, Responsibility, Integrity and Independence. A values-based curriculum equips students with character and confidence, traits that will give them a competitive advantage later in life.

Starting in Grade 7, the Junior Leadership Programme strengthens important qualities like listening skills, teamwork, trust and communication. Learners practice leadership roles through participating in the Peer Mediation programme, hosting international guests, organising sporting events and speaking publicly at assemblies.

With your continued support, more children will get the chance to break free from a life of abject poverty and become meaningful and productive citizens of South Africa.

Grade 3: interactive LearningInvaluable partnerships with Dell and Microsoft enable our educators to develop and share new methodologies that ensure our learners quickly make up early learning deficits and go on to out-perform the national and Western Cape averages for literacy and numeracy across all grades.

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Khanyo Bavuma

Christel House valedictorian for 2013, Khanyo is studying for a BSC in Mathematical and Statistical Sciences. He achieved distinctions in 3 of the 4 modules in his first semester. He hopes to join Statistics SA - a valued Christel House partner - after completing his honours degree.

The College & Careers Programme

Fulfilling our mandate...To realise our vision of breaking the cycle of poverty, Christel House graduates must secure meaningful employment. Matric is a stepping stone to the final phase of learner development – the College and Careers Programme, which supports graduates until they are firmly established in the workforce.

Students going on to tertiary studies receive assistance in securing bursaries and get a monthly stipend to cover transport to college and one meal daily. Regular contact with the institutions’ lecturers helps Christel House monitor learners’ progress. When intervention is necessary, counselling and mentoring are arranged.

Christel House has built a diverse network of prospective employers – companies that offer learnerships, apprenticeships and full-time employment. We continually explore and expand partnerships with new employers, because enabling students to pursue their passions enhances prospects of career success.

Career exploration starts in primary school. Each learner maintains a Career Portfolio which includes teachers’ feedback about individual strengths and challenges. This allows Christel House to help students plan for a career path that leverages their unique aptitudes. At Career Days guest speakers discuss their varied professions. Open days at tertiary institutions expose students to the campus environment. Job-shadowing and job-readiness workshops give students the opportunity to visualize themselves in the workplace.

Through the College and Careers Programme, Christel House stays the course until our graduates become self-sufficient, productive South African citizens. It is thanks to our partners – the institutions, companies and individuals who share our vision – that such commitment is possible. Thank you!

CHRIS HANSONCollege & Careers Programme Manager

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A holistic programme deliveringa values-based curriculum.

THECHRISTELH O U S EM O D E L

Over 200 families apply for the 60 places available in Grade R.

We allocate places to those most in need.

Motor Skills

Life Skills

English

Numeracy

Creative play

L if e Sk ills

Char ac terBuilding

P ublicSpe ak ing

E ar l yL e ader ship

C ar e er Guidanc e

Giving B ack

Leadership

PeerCounselling

Sex / GenderEducation

Career &SuccessPlanning

Giving Back

Higher Education

VocationalTraining

BursaryApplications

InterviewTraining

Learnerships

Job Placement

Giving Back

EMPLOYED

A C T I V E

C I T I Z E N S

true gritCharacter Building is a cornerstone of the Christel House model. It is reinforced throughout the school programme.

“A child’s success cannot be measured by IQ scores, standardized tests or quizzes alone. Success also depends on young people developing character and ‘grit’!”Warren Jacobs - Dean of Students

Page 15Page 14

100%

Attendance rate amongst students and teachers

Students receiving breakfast, lunch and a snack daily

Students transported to and from school each day

64%

ACADEMIC EFFICACY

of graduates are either working,studying or doing both

are at technical college

are in learnerships

are gainfully employed

are still to be placed

are at university

The College & Careers Programme supports Christel House graduates until they are gainfully employed.Of the 191 graduates from 2009 to Year End 2014:

Matric pass rate, 6 years running

Year-to-year student retention rate98%

98%

100%

100%

EMPLOYMENT EFFICACY

57

33

24

68

9

95%

Bachelor pass rate

Page 17Page 16

The Holistic Cost per Learner

R43 207*Budgeted Numbers:

EDUCATIONR 25 901

(60%)

TRANSPORT2 Trips per day

plus extra-curriculaactivitiesR 4 488

COLLEGE & CAREERS

PROGRAMME R 710

HEALTH CARE& Social Services

R 1 694

LEARNING MATERIAL,

UNIFORMS & SUPPORT SERVICES

R 3 010

NUTRITION2 Meals and a snack per day

R 3 152

OUTREACH & Community Upliftment

R 265

h o wy o uc a nh e l p

Page 19Page 18

SPORTS & Extramural Activities

R 453 FACILITIES R 3 534

* All general and administrative expenses arecovered by our Founder, so that every rand of your donation directly benefits the children.

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t

t

tt

TECHNOLOGY PARTNERSHIPSJoin DELL and Microsoft in helping us deliver innovative learning, giving our students the technology skills they need to compete.

How you can help. . .

tTRANSPORT

Sponsor a learner’s travel costs - R25 a day - or sponsor a bus.

MEALSContribute to our learners’ nutrition - R20 a day - or sponsor a vegetable garden. t

LEARNING MATERIALSSponsor a learner’s books and stationary... or sponsor a class.

ADOPT-A-LEARNERVisit us and see how you can change a life by sponsoring the costs - in part or total - of one learner’s schooling.

IN-KIND DONATIONSLibrary books, equipment, stationary - what you can give, we can use.

UNIFORMSSponsor uniforms, shoes, or help fund our laundry service.

VOLUNTEERTeach music or coach a sport - your time and skills help develop new talents .

BECOME A MENTOR Your expertise can help our learners find their place in the world. t

t

SPECIAL EVENTS Help sponsor one of our fundraising events.

SPORTS FACILITIES Sporting activities from netball to cricket, soccer to rugby are a big part of our extended school day. Help fund equipment, uniforms or our sports facilities.

t

BURSARIES & GRANTS We support our graduates until they find employment. Help fund our graduates in tertiary institutions.t t

INTERNSHIPS & JOBS Help our graduates - who have achieved so much - become contributing members of society.

t

FINANCIAL SUPPORTFulfil your charitable intentions with a gift specifically structured to reflect your wishes.

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CONTACT US or visit www.christelhouse.givengain.org andclick the Donate Now! link to make a donation.

Social Services support is a unique and essential part of the Christel House model. In-house social workers, counsellors and nurses address student challenges immediately, rather than depending on the availability of third-party support.

Our Dean of Students and Culture focuses on strengthening school culture, encouraging constructive behaviours and advancing community outreach and parental services. The Dean oversees the work of social workers, nurses, and counsellors to ensure best practices.

Programmes and initiatives in the Social Services area are designed specifically to promote character development amongst learners so that they are equipped to become upstanding citizens and productive members of society. Christel House South Africa 2013 graduate, Khanyo, said it best. “In my community, Christel House students stand out above the others in terms of dress, conduct, behaviour and education. . . .The Christel House values will remain with me for the rest of my life.”

Family and Community Upliftment

Social Services Report

In 2014:

1 256 social and health interventions were conducted with learners and families to address challenges. These included medical exams and treatments, individual, family, and group counselling, telephonic contact, as well as court support and home visits.

215 home visits were conducted to assess home environments and counsel families.

2960 family members attended workshops teaching parenting and language skills, basic entrepreneurship, computer skills and hair-dressing.

WARREN R. JACOBSDean of Students and Culture

Family & Community UpliftmentFamilies from Freedom Park attend a weekend Good Parenting workshop

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All Christel House parents are financially distressed and most cannot pay school fees. They gave back to the school in other ways in 2013.

GIVING BACK

Active Citizens...

All Christel House students participate in our Service Learning programme. Giving of their time through a number of community upliftment projects during the year teaches them to become active, community-minded citizens.

PARENTS VOLUNTEERED

10 407 Hours of service learning

25 Community Upliftment Projects

Christel House learners distribute food and clothing hampers to residents of Pooke se Bos Informal Settlement

12 000 Hours

455 Parents

Volunteered last year

Parents contribute in a number ways:Escorting learners • Classroom assistants • Maintaining school books, uniforms and other property • Laundry services • Assisting supervision of excursions • Cleaning, sealing and painting school facilities

1 495 Labour Days

8 Communities received the benefits

STUDENTS COMPLETED

Page 25Page 24

Brian Stocks Audit Committee

Experience:Business, Finance, Infrastructure Development

Wayne Grews

Audit CommitteeExperience:

Business, Finance, Infrastructure Development,

Marketing & Public Relations

Nicky Sheridan

Experience:Business, Finance, Public Relations

Stewart Van GraanExperience:

Business, Information, Com-munication and Technology,

Marketing & Public Relations

Shaun Lamont Audit Committee

Experience:Business, Finance, Infrastruc-ture Development, Marketing

& Public Relations

Stephen RossChairman

Nominations CommitteeExperience:

Business, Marketing & Public Relations

Charles AbrahamsNominations CommitteeRemuneration Committee

Experience:Business, Governance and Law

Board of DirectorsChristel DeHaan (USA)

Experience:Business, Education, Fundraising, Marketing & Public Relations

Elspeth Donovan Education Committee, Remuneration Committee

Experience:Education, Social Development

Chairman’s Statement

Lulu GwagwaNominations Committee

Experience:Business and Finance

We have concluded 2014 with another successful graduation in terms of students’ pass rate and bachelor’s eligibility. We measure our success relative to our own year on year performance and also against the same indices of a cross section of public and private schools. The metrics continue to show that the Christel House experience is a formula for success in preparing childrento join the ranks of the employed or those in higher education. Considering the communities we serve this is more remarkable when you factor unemployment rates that are up to three times the published national unemployment rate. One of the most fundamental measures of success, commitment and efficacy is attendance and retention. Of all Christel House admissions over the last 12 years, 93% are still in school. The attendance of both learners and teachers is an impressive 98%. That equals more education to more children more of the time and a reason we stand out in our total results.

Such performance is underpinned by the strength, dedication and passion of our faculty, principals and supporting staff. Social work, the College and Careers programme, nutrition, physical education and service learning are all requisite components of a complete child, they are all available at CHSA and that is why our graduates have a head start to break the cycle of poverty forthemselves, their families and the broader community.

The year we have just concluded saw the arrival of our new CEO Nicky Sheridan. We all look forward to the maturation and success of his plans to bring the school to the next level of operational excellence and financial sustainability. We said farewell at the beginning of the year to our fellow Board member Melvin King as he took his new role as the head of the Oprah Winfrey Leadership Academy. We welcome Claudia Manning and Mteto Nyati as our newest members to the board. We have a wonderful board of involved, caring and effective people, they help make this dream a reality.

We had the privilege in 2014 of two visits from our founder Christel DeHaan as we hosted the Christel House Global Conference in February and then again when Christel attended our November board meeting. The magic that lights up the smiles of the children when she is on campus has to be seen to be understood. As a community I think we all know the challenges that beset the poorest children in South Africa, come visit our school or watch the videos that Nicky and the team distribute and witness the joy and accomplishment for yourself. Ask yourself what you can do to support our dream to reach as many deserving children as we can in our poorest communities in South Africa.

STEPHEN ROSSMarch 2015

* Claudia Manning and Mteto Nyati will join the Board in 2015

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R

2014R

R

2013R

STATEMENT OF CHANGES IN EQUITY

AccumulatedSurplus Total Equity

Balance at 1 January 2013 Changes in equity (Defecit) for the year

Balance at 31 December 2014

34 727 999

1 232 087

34 727 999

1 232 087

33 700 827 33 700 827

Balance at 1 January 2014 Changes in equity Surplus for the year

35 960 086

(2 259 259)

35 960 086

(2 259 259)

Note

*

STATEMENT OF CASH FLOWS

Cash flows from operating activities Cash receipts from donors Cash paid to suppliers & employeesCash (utilised by)/generated from operations Interest IncomeNet cash (to)/from operating activities

35 222 415

(40 679 824)

(5 457 409) 967 845

38 492 499(37 299 914)

1 192 585 757 075

(4 489 564) 1 949 660

Cash flows to investing activities Purchase of property, plant, equipment Sale of property, plant and equipmentNet cash to investing activities

Total cash movement for the year Cash at the beginning of the year

(4 709 284)

39 723(4 669 561)

(9 159 125) 18 230 823

(2 561 385)

(2 561 385) (611 725)

18 842 548

Total cash at the end of the year 9 071 698 18 230 823

Note to Cash, Deferred Income and Cash Flow:Due to the strengthening US dollar, Christel House International contributed 2015 operational

funding in 2014

*

*

The audited financial statements were compiled in accordance with the International Financial Reporting Standards for Small to Medium Sized Entities and in the manner required by the Companies Act of South Africa 2008.

The auditors were Henri Grove & Partners Registered Auditors, Bellville.

For the year ended 31 December 2014ABRIDGED FINANCIAL STATEMENTS

Christel House South Africa once again achieved an unqualified audit report. The complete set of audited financial statements is available on our website:www.sa.christelhouse.org.

STATEMENT OF FINANCIAL POSITION

ASSETS

2014R

2014R

2013R

2013R

Non-Current Assets Property, plant and equipment

Current Assets Cash and cash equivalents Temporarily restricted funds Trade and other receivables

Total Assets

36 107 247

9 071 698789 032

761 36810 622 098

46 729 345

EQUITY AND LIABILITIES

Equity Accumulated surplus

LiabilitiesCurrent Liabilities Deferred income Temporarily restricted funds held Trade and other payables

35 960 086

18 439 614769 007

2 258 38221 467 003

Total Equity and Liabilities 46 729 345 57 427 089

STATEMENT OF COMPREHENSIVE INCOME

Revenue Operating ExpensesOperating Surplus / (Deficit) Investment revenue

Surplus / (Deficit) for the year

41 843 065 (45 070 169) (3 227 104)

967 845

1 232 087(2 259 259)

Note

*

*

34 767 563

18 230 823 769 007

3 659 69622 659 526

57 427 089

33 700 827

9 483 902789 032

2 755 58413 028 518

38 220 145 (37 745 133)

475 012757 075

Page 29Page 28

Page 31

REVENUERelationships between Christel House South Africa and our local and international partners remain strong. Despite continued global economic challenges, CHSA total revenue increased by 12% over the previous year.

EXPENSESOverall costs increased by 19% this year, mostly due to facility improvements, an increased student count in the College and Career Programme, rising fuel costs and other inflationary pressures.

Local Contributions

Investment Income

International Funding

R 15 273 098

R 967 845

R 26 569 967

TOTAL REVENUE R 42 810 910 62%

International Funding US Contributions and Grants UK Contributions

36%2%

Investment Income

South African Funding

Operating CostsSchool ProgrammeFundraising CostsManagement Costs

R 40 624 399R 3 600 899R 844 871

TOTAL EXPENDITURE R 45 070 169 90%School Programme Costs

Management Costs

Fundraising Costs

Lydia DreyerCFO – Christel House South Africa

Page 30

8%

The Committee carried out its duties to stakeholders as required by the King Report and its own terms of reference in respect to the 2014 financial year.

The Committee is satisfied that it has considered and discharged its responsibilities in accordance with its mandate and terms of reference during the year under review. We are satisfied with the improving trend in the results of the management’s assessment of its internal control and risk environments as confirmed by the combined assurance model implemented. The Committee formed the opinion that at the date of this report there were no material breakdowns in internal control, including financial control that would result in any material loss. The Committee reviewed and recommended the approval of the annual financial statements to the board.

Brian StocksChairperson - Audit & Risk Committee

Remuneration Committee ReportThe Committee carried out its duties as required by the King Report and the Committee’s terms of reference to submit this report to stakeholders in respect of the 2014 fiscal year. The Committee reviewed the company’s general remuneration policy and specific packages for executive and senior management, educators and support staff.

The Committee also reviewed and endorsed the company’s policy not to remunerate non-executive directors.

The remuneration strategy for management and the workforce at CHSA is designed to:

Attract and retain individuals with the ability, experience and skill to 1. fulfill the mission of the organisation.Incentivise employees to deliver sustained performance and 2. appropriate risk management.Provide market-competitive compensation packages. 3. Encourage behaviour consistent with CHSA values4.

The Committee submits that it has considered and discharged its responsibilities in accordance with its mandate and terms of reference during the year under review.

Elspeth DonovanChairperson – Remuneration Committee

2%

Costs unrelated to school programmes are kept at 12% or lower.

Audit & Risk Committee Report

Zille-RaineInformal

SettlementPhumlani

VillageSettlement

EgoliInformal

Settlement

Strandfontein25 km

Philippi20 km

McClueseInformal

Settlement

SpringfieldInformal

Settlement

HanoverPark - 30km

Pooke se BosSettlement

Kewtown60kmBokmakierie

60km

Langa66km

Manenburg60km

Jim se BosSettlement

Brown’s Farm70km

Phola ParkSettlement

MitchellsPlain - 80km

Delft 80km

StrandfonteinInformal

Settlements

Cape Town

Christel HouseOttery

THE COMMUNITIES WE SERVE

F a l s e B a yPage 32

Transporting 728 Students...in these locations...twice a day.

Khayelitsha

Produced by Penga Productions

On behalf of our learners, teachers and support staff, we would like to thank our partners and sponsors for their ongoing support of Christel House.

Banking Details:NAME OF ACCOUNT: CHRISTEL HOUSE SOUTH AFRICANAME OF BANK: NEDBANKTYPE OF ACCOUNT: MONEY MARKET INVESTMENT ACCOUNTACCOUNT NUMBER: 1047 039 117BRANCH CODE: 104 709SWIFT: NEDSZAJJ

Phone: +27 21 704 9406 / 7 / 8Email: donor@sa.christelhouse.orgWebsite: www.sa.christelhouse.org

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