SF annual report 2013

STRØMME FOUNDATION ANNUAL REPOR T 2013

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Contents

A word from the Secretary General 3Vision and Mission 4-5 2013 Programme information 6-7The Money Flow in Strømme Foundation 8-9Support to projects / where we work 10-11International Section 12-13A good year for Communication and Fundraising 14-15The importance of Creating Jobs 16-17A working mother sends her children to school 18-19Activities in Norway 20-21 I learn (Education) 22I work (Microfinance) 23The fight against corruption 24Other programmes 25 The Strømme Foundation Roadmap for the Next 5 Years 26-27Report from the Strømme Foundation Board 28-30Activity account and Balance sheet 31-32Cashflow 33Accounting principles 35-41Auditors report 42Board and council members 43How we use the money 43

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Word from the Secretary General

Strømme Foundation is a development organisation with an ambitious goal: We want to eradicate poverty! We are very conscious about the ways in which we contribute towards a world free from poverty.

Strømme Foundation wants to underline Human Dignity as one of our fundamental values. We do not believe in charity, a centralised organisational model or nurturing a dependency syndrome. We believe in the very resources inherent in each and every human being, community and nation.

Strømme Foundation wants to have a catalytic function in mobilising local resources through sharing knowledge and creating ideas, and if need be to bring about an incentive to realise ideas and dreams. Thus we want to build ladders on which people themselves can climb out of poverty; ladders that are made in Mali, Uganda, Bolivia, Bangladesh or elsewhere outside of Norway.

These efforts are not anchored in “kindness” or charity, but they are based on a moral obligation, simply the quest for Justice. There is an obligation between the “duty bearer” and the “rights holder”. Millions of people are deprived of their basic human rights to food, health and education. It is our moral responsibility to work towards erasing the injustice between “the haves” and the “the have nots”.

In our resource mobilisation efforts in the communities, we will advocate for a more just distribution of resources and

power, and we seek to build local bridges between civil society networks and sustainable (Government) structures. We aim at minimising polarisation and encouraging common efforts both within and between local communities.

Strømme Foundation wants to give a voice to the voiceless both through our words and our actions. There is a cry for Solidarity with those who are marginalised and discriminated against. Marginalisation, discrimination and corruption are amongst the root causes of poverty, and solidarity with these vulnerable groups is vital in order to empower and include them in the development process.

Based on our core values – Human Dignity, Justice and Solidarity –, we strive to leave lasting ‘footprints’ in all the contexts in which we are present.

Øyvind Aadland Secretary General


Great things can happen when many share one common vision! In Strømme Foundation our Vision is:

A World Free From PovertyStrømme Foundation is inspired by the Christian view of God´s creation and absolute dignity of man. We strive to approach people with openness and respect, regardless of religion, ethnicity, caste, gender, disability or other minority status. Strømme Foundation is committed to empowering people so that they overcome the root causes of poverty.

In Strømme Foundation our Mission is:

To Eradicate PovertyWith a deep respect for human dignity and a conviction of the value of equitable partnership, Strømme Foundation works to empower the poor so that they take charge of their own lives and communities. We strive to facilitate change, not only by providing material needs, but also by creating opportunities for people to utilise their talents in a value-based development process.

Strømme Foundation works trough local partners and through two intervention lines – microfinance and education. A major focus for our work is to facilitate for people so they can create their own jobs.

Human DignityWe believe in the inherent, inalienable rights of every individual. At Strømme Foundation, this is considered to be the most important human right from which all other fundamental human rights are derived.


A World Free From Poverty

Our Values

Microfinance and Community Managed Microfinance (CMMF) Microfinance creates access to sustainable income sources and provides a means by which the poor can act upon these decisions. The focus here is to provide access to financial services such as loans, a place to save, insurance etc. Capacity building of the participants and clients is also an important component of the programmes in question. The microfinance intervention will use the methods of both institutional MF as well as Community-Managed Microfinance.

Microfinance creates access to sustainable income sources and provides a means by which the poor can act upon these decisions. Focus is to provide access to financial services such as loans, a place to save; insurance etc. Capacity building of the participants and clients is also an important component of the programs. The microfinance interven-tion will use the methods of both institutional MF as well as Community Managed Microfinance.

EducationEducation helps people develop the attitudes, skills and knowledge needed to make informed decisions for developing themselves and their communities. Our main focus is on facilitating poor children at risk by strengthening the fostering environment within the local community. Interventions are carried out within primary education, adult literacy, vocational skills/life skills and awareness building, and with a special, paramount focus on education for girls.

JusticeWe have a drive to fulfil not only legal, but also social rights of communities and individuals in creating a more just distribution of society’s resources and power.

SolidarityWe identify empathically with the plight of marginalised and discriminated groups.


2013 Programme information

In West Africa, Strømme Foundation focused on three objectives: 1) getting out-of-school children and adolescents into school 2) increasing the literacy level and skill set of illiterate women; and 3) increasing women’s standards of living and financial security.

In East Africa we focused on four objectives: 1) improving primary school enrolment, attendance, performance and completion rates2) increasing the literacy level and life and technical skills of adolescents, youth and adults with little or no formal education 3) reducing the vulnerability of children at risk; and 4) increasing families’ standards of living and financial security.

What?

How?

Examples of what was achieved

• Speed Schools• Speed Schools 2 • Active Literacy • Community Managed Microfinance

• Primary and pre-primary school support • Teacher training • Alternative Education in South Sudan • Functional Adult literacy • Bonga• Vocational training • Rehabilitation centres• Children and youth clubs • Community Managed Microfinance• Institutional Microfinance

• 87% of the 21,382 children enrolled in Speed Schools successfully transferred to primary school • 44% of the 554 adolescents enrolled in the Speed Schools 2 pilot passed the 6th grade exam• 64% of tested Active Literacy learners can read, write and do basic calculations • Total savings of groups: CFA 1 474 361 579 – a little more than 3,6 million USD

• Classroom to pupil ratio reduced to 1:74• 40% of adolescents/youth and 95% of children completed the Alternative Education courses • 70% of adolescent girls and adults in Bonga and Functional Adult Literacy courses can read and write • 73% of adolescents/youth completed vocational training courses • 81 children removed from the street• 70% of youth have increased understanding of HIV/AIDS • Total savings of CMMF groups: USD 5 963 535

WEST AFRICA

EAST AFRICA


In Asia, our programmes aimed to target the same households with multiple pro-grammes in order to maximise impact. The four main objectives were: 1) improving school enrolment and performance; 2) socially and economically empowering adolescent girls; 3) strengthening poor communities’ ability to demand and secure their rights; and 4) increasing families’ standards of living and financial security.

In South America, Strømme Foundation focused on four objectives: 1) improving the quality of basic education and pupil performance; 2) reducing the vulnerability of children and adolescents at risk; 3) increasing women’s literacy levels and technical skills; and 4) increasing families’ standards of living and financial security.

In Norway, Strømme Foundation’s main objectives are to raise money, to increase knowledge about poverty and poverty eradication, and to contribute to people’s education about poverty. We also work to advocate for the poor among politicians and decision makers, and contribute to the national debate about issues related and connected to development aid.

• Shonglap, Samvad and Prottoy• Basic education • Strengthening Community Based Organisations • Institutional Microfinance

• Improving the quality of primary school education• Early childhood development• Children and youth clubs • Rehabilitation centres• Life skills training • Strengthening child care organisations and networks• Adult literacy• Technical training • Community Managed Microfinance• Institutional Microfinance

We work to raise funds through working with schools, organisations, groups, institutions and individual donors. We also work with several corporate and institutional donors, and through different campaigns and fundraising events.

Media and its use through editorials and opinion articles were prioritised in order to create awareness, knowledge and interest for development work.

• 62% of 20,869 adolescent girls are involved in family decision making processes • Drop-out rate in targeted primary schools reduced to 4.5%• 85% of issues identified by CBOs in Sri Lanka have been advocated for • 77% of microfinance clients in Bangladesh have an income generating activity

• The percentage of children in Quechua communities with communication and mathematics skills sufficient for their grade increased from 13% to 32%• 78% of 4,444 at-risk children and youth recognise and apply self-protection measures• 421 out of 430 children improved their personal and artistic skills

• Successful “Job Creator” campaign recruiting new donors and attracting media attention• Cooperation with 52 companies and corporates• Videos produced, opinion articles published • Help for Self-help award to a CBO in Sri Lanka. • Cooperation with several primary and secondary schools and folk high schools.• Elected by the public - the corporate of the year in our region.

ASIA SOUTH AMERICA

NORWAY


The Money Flow in Strømme Foundation

At home1) 20 000 private donors, 53 corporations and several schools, groups and networks donate on a regular basis, and occasionally money for the work. 2) Institutions and official donors (NORAD – Ministry of foreign affairs).

Internationally Funds are also raised by Institutional donors

These are some of the activities done at the Kristiansand office:

• Fundraising and close follow-up of donors• Budgeting and accounting• Campaigns• Strategic planning of programmes • Anti-corruption work• Monitoring and evaluation • Applications for support• International department section work • Media and information • People’s education• Advocacy towards the Norwegian public• Training

MICROFINANCE(a daughter company of SF) MF is financed by other institutions, both internationally, locally and by the Strømme Foundation. The money goes to our Regional Offices which distribute funds to partners according to agreements.

Strømme Foundation carries out development work in 12 countries around the world. Our total income in 2013 was 140 million NOK. Where does the money come from – and where does it end up? In this graph we will show how the money flows through the Strømme Foundation.

KRISTIANSAND OFFICE

REGIONAL OFFICESThese are some of the activities done at regional offices

• Following up partners• Quality assurance • Monitoring and evaluation• Reports• Educating local NGOs so that they become sustainable and reliable presences in the society in question• Making the important choice of partners • Control • Training • Implementing and following up programs in field • Anti-corruption work• Information


LOCAL MFIs - CMMFWe have, in total, more than 440 000 microfinance customers and clients. Almost 150 000 of them are members of Community Managed Microfinance and CBOs.

These institutions prepare clients for financial services like loans and savings through:• the training of clients• assisting in creating ideas for jobs• creating secure environments for saving and borrowing money

Giving loansReceiving development aid

MICROFINANCE(a daughter company of SF) MF is financed by other institutions, both internationally, locally and by the Strømme Foundation. The money goes to our Regional Offices which distribute funds to partners according to agreements.

LOCAL PARTNERSIn total Strømme Foundation works with 93 partners implementing our development work in the field:• They implement our work• Make reports and do monitoring of programs• Local training

Youngest girl: “I went to kindergarten, and my parents will also send me to school and give me education. They see how important this is.”

The recipient in the villagethis is the family of five – mother father and three children.

Father and husband: “I have taken a loan – this has improved my earnings as a carpenter and farmer. In my carpentry shop I have to employ more people. My wife has also taken a loan and contributes to the sustainable development of our family - I am really proud of my wife.”

Mother and wife: “I can now read and write. I have attended literacy classes. I am a member of a community-managed microfinance group. I save money and I can take a loan to improve our household. I have money if our children get sick or when we need something extra for school. And our food is better - we have better nutrition. My husband is proud of me – our neighbours come to us for ad-vice and we have a much better life.”

Eldest daughter: “I went to Shonglap. I got educated about my rights, and I now know my rights in the society and also what I have to contribute. My class prevented several early childhood marriages, and also stopped a girl from being trafficked to brothels in India. I have taken a loan and have started a tailoring shop together with some of my Shonglap class-mates. Now I will not marry before I am old enough and my mother and father will not tolerate dowry payments. I now have a better future for my life.”

Son: “I got a second chance to begin school. I started at Speed School and can – if I am doing things right - start at state school and complete my education. This opens for me a whole new future.”


PERU

MALINIGER

BURKINA FASO

BOLIVIA

Support to projects 2013 by country and sector. Including regional office cost distributed onto all areas.

TotalEdu-cation

Micro-finance

No.of partners

No.of projects

Figures in 1000 NOK

Burkina Faso 4 716 3 164 1 552 5 7Mali 18 115 14 573 3 542 17 22Niger 2 255 1 276 979 2 4West Africa 25 086 19 013 6 073 24 33

TotalEdu-cation

Micro-finance

No.of partners

No.of projects

Figures in 1000 NOK

Bolivia 4 232 4 116 116 4 7Peru 6 291 5 482 809 8 12South America 10 523 9 598 925 12 19


NIGER

SOUTH SUDAN

KENYA

TANZANIA

UGANDASRI LANKA

NEPAL

BANGLADESH

Grand total - support to projects in 2013 NOK 89 250

Total number of beneficiaries in 2013 659 825

Total 72 693 16 056 501 - 93 138

Edu-cation

Micro-finance

No.of partners

Disasterresponse

CultureDevelop.

No.of projects

TotalEdu-cation

Micro-finance

No.of partners

No.of projects

Figures in 1000 NOK

Bangladesh 11 831 11 034 797 8 12Sri Lanka 6 043 5 067 976 8 8Nepal 5 796 5 796 - 4 4Asia 23 670 21 897 1 773 20 24

TotalEdu-cation

Micro-finance

No.of partners

No.of projects

Figures in 1000 NOK

Kenya 2 091 1 096 995 3 3South Sudan 10 209 9 439 770 7 16Tanzania 3 181 2 419 762 7 9Uganda 11 817 7 059 4 758 17 27East Africa 27 298 20 013 7 285 34 55

TotalEdu-cation

Culture & Developm.

No.of partners

No.of projects

Figures in 1000 NOK

Act Now 1 847 1 847 1 1Myrada - FK 488 488 1 1MIMETA 501 501 1 5Net currency gain -163 -163 Global 2 673 2 172 501 3 7


Strømme Foundation contributed to changing the lives of almost 700 000 poor and vulnerable individuals and their families in 2013. Highlights include contributing to increased income, financial security, more children going to school, better school performance, improved living conditions for girls, and a rise in community engagement and advocacy efforts.

70% of the girls participating in Shonglap, Strømme Foundation’s educational programme for adolescent girls in Bangladesh have become aware of 10 learning issues (such as gender equality and sanitation) and 74% are now practicing and relating to these areas in their daily lives. The girls have also become more involved in family decision-making processes and are taking an active role in their families. New skills and income generation are two of the factors that have helped contribute to this change. In fact, 36% of Shonglap participants are reported to be engaged in income generation activities such as tailoring, running shops, duck farms, owning goats, and so on. SF’s partners have also documented – thanks to Shonglap and the sister programme Samvad in Nepal – at least 291 cases in which dowry-free marriages were arranged, 1089 cases where an early marriage was stopped, and 76 actions taken against eve teasing and sexual harassment of young girls.

Similarly, through Strømme Foundation’s Speed School programme in West Africa (a nine-month accelerated learning course for out-of-school children), 87% of the 21,382 children enrolled in a Speed School Centre from October 2012 to June 2013 had successfully transferred to formal school by October 2013. The experience of previous cohorts suggests that these children are likely to remain in and graduate from Primary School. In fact, some of them will likely receive the highest marks in their class.

In South America, a key area of focus continues to be reducing the vulnerability of children and adolescents at risk. Even in comparison with other, much poorer regions in the world, the social risks that children and youth face in Peru and Bolivia are vast. South America is, for example, “home” to at least 40 million street children, compared to 10 million in Africa (with twice the population). The cultural tolerance of violence and a skewed understanding of masculinity are the background of many of the social problems of the region. Children, youth and women are the main victims of these risks that include violence, sexual

International department More education – better income

abuse, human trafficking, neglect and abandonment. Through one of Strømme Foundation’s prevention programmes, at-risk children and teenagers have successfully improved their personal and social skills (“life skills”) to recognise, avoid or deal with situations of high risk.

Through participation in Microfinance programmes in Bangladesh, Sri Lanka and East Africa, many households have started or expanded an income generating activity and increased their incomes and level of savings. In Bangladesh, for example, data gathered by partners indicates that 77% of participants have undertaken different income generating activities, like farming, handicrafts, restaurants and so on, and 59% have increased their savings by 10% or more. In addition, income increased on average by 42% amongst these families. This has improved living conditions, and parents are then better able to afford to send their children to school, rather than hiring them out as day-labourers. This means better food, better housing, better health and dignity.

Strømme Foundation’s Community Managed Microfinance programmes are in East and West Africa (whereby women and sometimes also men in poor communities are given the tools and knowledge to collectively save and lend to one another), and have also contributed to increasing living standards and reducing vulnerability.

According to data gathered by partners and external evaluators, the CMMF programme contributed to a range of results at individual, family and community levels. This included increasing income and savings, establishing and enhancing existing Income Generating Activities and improving housing. It also included enhancing food production and security, improving household power-relations and social relations, increasing parents’ ability to pay for school fees and empowering communities to address their own development needs. More than 113 000 women and 35 000 men are members and take part in a CMMF savings and loan programme, and almost 300 000 women and men take part in Strømme Foundation’s microfinance programs.

Comprehensive data on income increase is not available. However, data gathered by one of our partners, the CMMF partner TAHEA in Tanzania indicates that daily income increased from USD 0.3 in 2009 to USD 1.94 in 2013.



The year 2013 ended with a total result of 74.4 million NOK. We are pleased, and would like to thank all our donors, partners and staff for making this possible.

Strømme Foundation is honoured by the extraordinary generosity of our donors and partners who provide financial resources for our programmes around the world. 2013 turned out to be a good fundraising year for Strømme Foundation, with a result of 74.7 million NOK. 10.6 million NOK came from Operation Day’s work. This is an unusually high amount, partly as a result of receiving payments last year from both the 2008 and the 2012 campaign.The biggest achievement from the 2013 results, however, is how we managed to reverse a negative trend whereby fixed term donors were being lost. For the first time in a decade, Strømme Foundation had more fixed term donors at the end of the year than it did at the start. This was our main focus and goal last year, and it is very gratifying to reach that goal.We raised close to NOK 2 million above the original budget. We would like to point out that we reached the budget on fixed term donations. An area where we achieved better than expected was in single donations in the course of the Job Creator (jobbskaper) campaign.We experienced a reduction of staff in the department, which resulted in extra effort from our existing staff. It is therefore particularly pleasing and encouraging to see that the year’s end result is so positive.

Recruitment of private donorsA major event for Strømme Foundation was the aforemen-tioned ‘Job Creator’ campaign in September. The campaign aimed to secure fixed-term donors, as well as promoting our work in the local community. In total the campaign generated 599 new donors. The campaign finally managed to turn around the negative trend of decreasing numbers of donors. There were also more than 90 companies which donated to the campaign. In its aftermath, Strømme Foundation was voted Company of the Year in the Southern region of Norway.

In 2013, the Friend at Heart fundraising programme moved its focus from Peru to Uganda, changing the focus from street children in South America to the area of early childhood development in Africa. The competition in the market for child sponsorship programmes is still tough, but we are pleased to see that we maintain our position in the market. We are among the top three organisations in Norway in terms of the average amount of money given per donor.

Last summer, we had good results from our summer recruitment campaign and 288 new donors were recruited. This work has been led by former Act Now students, and they have also been great ambassadors for our organisation throughout the summer.

Major Donor Our work towards the corporate sector and trusts continues with vigour. The loyalty and enthusiasm we experience from our partners is very encouraging.An important part of our work for youth is our close collaboration with schools and Folk High Schools. Many of these schools have been partners of the foundation for years, and we see a high level of commitment among pupils, students and teachers alike.

In 2013 several major partners that we have cooperated with for a decade have signed new three-year contracts with Strømme Foundation. Contracts of this size are of enormous importance to us, and it is encouraging that partners decide to continue their cooperation with Strømme Foundation.Media & Public RelationsOne of Strømme Foundation’s tasks is to educate Norwegian people about global development. In order to create media interest about development issues, we work strategically with different media channels. Press releases, debates, opinion articles and interviews are among our chosen approaches. Our media coverage in 2013 includes more than 20 opinion articles and debates in different local and national newspapers.

A good year for Communication and Fundraising




Unemployment is, in fact, the root of all evil. And we can do something about it. If you are a young person from a poor country, there are not many who will work for you. There is a high probability that you will be one of many from your age group forced into a corner – with lost schooling, insecurity at home, a paucity of adult role models, suspicion and closed doors. Childhood does not give you a platform to stand on, and adulthood is not something of which you have a clear image. What reality brings is perhaps a much too early marriage, a violent gang, or, in the very worst case, people trafficking and systematised abuse. And what you needed most of all was simply a normal job.

Increasing numbers of young people; increasing numbers without workIn 2013, the International Labour Organization (ILO) reported the existence of 73 million unemployed youth worldwide. Of these, many have never had a job, and there are in addition many millions set to work in insecure jobs with low productivity and very low wages. 85% of all young people between the ages of 15 and 24 live in developing countries. Africa has the youngest population of all regions. And it is growing. According to African Economic Outlook, the proportion of young people in Africa will double by 2045. Today’s youth are a harshly tested generation, and there is a great danger that this situation will simply explode in the years to come. Very little will be more important than ensuring that young people will get the opportunity to participate in developing their countries instead of destroying them.

Jobs are developmentILO makes it clear what employment means. It is not just about the welfare of the individual and the family, but equally about its repercussions, such as poverty reduction, economic growth and social cohesion. Unfortunately, the alternative for many is the complete opposite – violence, substance abuse, loneliness, depression and suicide. Many are forced into lifecycles where they destroy themselves, whilst others have their lives brutally destroyed by the people around them. Child marriage, trafficking for slavery or the sex trade, recruitment to fundamentalist groups – many are ready and waiting to exploit children and young people who do not have a safety net beneath them.

Young people lack practice and professional experience What can create jobs in poor countries? It is a challenging ques-

The importance of Creating JobsBy Margrete Kilde Nes and Asle Stalleland

tion, which must be answered on many different levels. “The Strømme Foundation cannot solve all employment problems in the project countries, but we can meet the business community half way on a number of very important points. Even if the general level of education has improved in Africa, there is still much too little education practically oriented towards subjects that employers need. In the report, “Africa at work” (McKinsey Global Institute 2012), employers are asked about the most important reasons that they do not employ more. One factor is, simply enough, a lack of work training. Small businesses in particular in the least developed countries find that potential employees lack basic knowledge about what is required to be able to work. One of the report’s important points concerns the need for practical work training in the form of internships, apprenticeships and other service programmes which can contribute towards developing the qualities that the labour market requires. Results from South Africa shows that even just a few months of work experience can triple the chances of securing a permanent job.

The Strømme Foundation has many years of experience within education and microfinance, and has seen thousands of young people acquire an income with their own help, and Secretary General Øyvind Aadland in Strømme Foundation wants to expand this area of focus: “Both the Strømme Foundation and young people with whom we work see that another component is needed. The connection to the established labour market has been too weak, and we need more contact between keen young people and companies that need labour,” says Aadland. The Strømme Foundation therefore wishes to focus more on connecting young people to the business world, particularly through apprenticeship schemes.

The Strømme Foundation’s vision is a world without poverty, and Aadland believes that jobs for young people are the key to achieving this: “We believe in young people who many have given up, and who very often do not have faith in themselves. We believe that there is another way forward, that there will be a job, an income, a place where somebody needs what they have to contribute. Therefore, creating jobs is a big focus area for the Strømme Foundation today, and will be even more important in the years to come,” says Øyvind Aadland.



“I have five children aged 10-20 years old - two girls and three boys. The four youngest would not have attended school if I had not managed to create a job,” Djénéba explains. Djénéba and her family live in N’Pagnala, a rural village 250 km south of Bamako in Mali. Their main source of income is agriculture - cultivating peanuts and different types of grain.

Being a farmer in Mali can be a challenge. Seasonal drought sometimes destroys the crops, challenging the farmers’ abilities to generate sufficient income. In the case of Djénéba, the family’s field did not produce sufficient crops to meet their needs, so they could not afford to send all of their children to school when they reached school age, at 6 – 7. Today Djénéba is the leader of a Community-Managed Microfinance group (CMMF group) of 25 women in her local community.

“Joining the CMMF group gave me a chance to create a more sustainable income from our crops and secure the future of my children. Once I got a job, my children could join the Speed School program and catch up with their peers,” she explains.

The CMMF group provides rural women with the opportunity to save and to get small loans, and in turn run their own income generating activity, even if they do not have access to banks or other financial institutions. The members meet once a week ensure they have a safe place to save their money, and also take loans, when and if they need to do so.

“The loans I get from my CMMF group vary from 75 000 to

A working mother sends her children to school

As a child, Djénéba Keita (40) never learnt to read or write. Her children would never have gone to school either had it not been for Djénéba’s drive to generate her own income.

By Jérémi Traore, N’Pagnala, Mali

125 000 CFA” (between 150 and 250 USD), Djénéba says.Parts of her loans are invested in her field, buying fertilizers to increase the food production. “Before I bought fertilizers, I could only harvest 5 to 6 bags of crops. Now that has more than doubled. During the last harvest, I got 18 100 kg bags of maize and 16 bags of peanuts. After sell-ing a portion of this produc-tion, I earned 125 000 CFA (250 USD) that I invested in an ox for plowing.

Today, Djénéba is a thriving businesswoman in her local community, selling maize, peanuts and clothes in a market close to her village. In return she brings herbs and condiments, which she resells in her village. With the money she earns through different IGAs, Djénéba helps her husband sending their children to school. “I am very happy and proud to see my wife contributing to the economy. Together we can manage to give our children an education. I am thankful to be able to provide our children with opportunities that me and my wife never had,” says Gassou Traoré, Djénéba Keita’s husband.

FACTSThe CMMF group “Korodiya” was created in 2009, under the supervision of the NGO Jeunesse et Développement, a partner of Strømme Foundation in Mali. Djénéba’s CMMF group is named “Korodiya”, which means “to do something good”.Three of Djénéba’s children started their education in a Speed School, an accelerated learning program initiated by Strømme Foundation. Speed School aims to offer a second opportunity to children between 8 and 12 years old that has dropped out of school.


Media and Public Relation Media attention and public education on development issues is a prioritized part of our work. We work to inform the public about poverty, root causes of poverty and what is being done to fight poverty. One of our aims is to change people’s perceptions of people living in developing countries. Our information work is also about bringing forward the hope, prosperity, development, economic growth and the changes taking place in these countries. But at the same time it is also about the fact that the majority of poor people are now living in middle-income countries, are exposed to climate change, and have to relate to all the new and difficult challenges this brings forward.

We write opinion articles, participate in debates, do press re-leases, advocate and raise our voice for people living in poverty. We want to advocate for people when injustice is being done, and raise our voice in solidarity with the poor. It is still necessary to challenge people, the decision makers and our politician’s on decisions taken, and on global and international politics.

To raise attention on development issues, Strømme Foundation awards the annual Help for Self-help award. This is an interna-tional award given to a person or an organization that has done outstanding work in the battle against poverty and promotes the Help for Self-help ideology.

Individual donorsStrømme Foundation has a large number of people supporting us; people who share our ideas, believe in our goals, and trust in our approach to achieving our goals and reaching our vision: a world free from poverty. One important group of individuals, and one of our main income sources for SF, are people providing a regular fixed term donation, donors who every month donate a fixed amount of money to our work. Most of these people have never met the recipients of their donations, and yet they have chosen to take part in our common vision to see a world free from poverty. It is incredible to see what a fantastic group of donors we have.

The individual donor section works to motivate, inform and take care of the interest of the individual donor. Newsletters, website, magazine, direct mail, facebook and different social media are some of the communication channels we use to communicate.

We also believe in face to face communication and encourage our donors and friends to recruit and engage people to take part in our vision. The individual donor group also campaign to recruit new donors.

We have four different fixed term donation products: Hjertevenn, Fattigdomsbekjemper, Brobygger and Jobbskaper. We also have a variety of other ways to engage and to donate, including; occasionally gifts, anniversaries, concerts, artists, bazaar, and so on. We have people who donate regularly, and people who donate now and again. All of them make a difference.

Activities in Norway


Strømme Business Partner All the work Strømme Foundation does on a daily basis is aimed at eradicating poverty. Based on our vision, “A world free from poverty”, we invite the corporate sector to take part in this important mission.

Working with the corporate sector we wish to strengthen involvement and commitment between the corporate sector and Strømme Foundation. Important values in the program are partnership, cooperation and sustainability. When we strengthen each other, we all grow.

Corporate Social Responsibility (CSR) is all about a company’s ability to incorporate their social responsibility in all levels of the organisation. Being a CSR-partner, Strømme Foundation wants to establish an understanding and close relation to the added value and economic growth that takes place within the development projects with which they are linked. Our experience is that this adds value to the companies themselves, values that generate engagement, motivation and pride. With this, the businesses see their initial investments returned, and at the same time development and growth is achieved in our projects. Here lies the sustainability of this partnership.

In our experience something positive happens in companies who succeed in putting these values to use. The employees encounter a workplace, leaders and owners that demonstrate attitudes and dedication beyond the day-to-day business tasks. At the same time, Strømme Foundation is able to offer more opportunities for a better future for children and adults alike in our projects.

Network group Strømme Foundation’s Network Group’s target market is mainly young people. The group’s long-term goal is to create involvement for adolescents that will persist beyond adolescence and into adulthood. The network also does fundraising through schools, and has a strong focus on public education to the Norwegian groups, schools, institutions and so on.

The network’s main objective is to engage schools, kinder-gartens, associations / clubs and churches in North / South issues. We do this through lectures and seminars, help with fundraising campaigns, and arranging study abroad trips to our projects in the South. We also visit schools together with our exchange students from the program Act Now from both South and North. The Network Group is also the bridge between Strømme Foundation and our youth organization, Re: Act. The Group helps with guidance, seminars, tutorials and inspiration for the youth organization’s international work. Re: Act itself is also very engaged in public education in Norway.


Education is one of the key instruments in development, and Strømme Foundation has been recognized for our work focusing on education, especially on our programs for young girls and for women’s education.

Strømme Foundation (SF) believes that the right to education is life long, and it begins at birth. In addition to having a value in itself, education is also decisive for promoting economic growth, social change and sustainable development. Yet many people are still denied their right to a quality education.

In response, Strømme Foundation works closely with local governments and communities to improve access to, and the quality of, education. This inclusive approach is essential for both local ownership and sustainability. It ensures that each program is designed in response to context and needs, and that the results continue to materialize even after the program come to an end.

I learn(EDUCATION)

The main areas of focus are: early childhood development, improving primary school infrastructure and governance, teacher training, accelerated learning for out-of-school children (Speed Schools), vocational training and literacy and life skills development. The primary target group is vulnerable, poor and hard-to-reach communities, with a particular focus on women and girls.

Strømme Foundation also defines education to include strengthening civil society and reducing the vulnerability of children at risk. To this end, a key objective – particularly in Asia – is to provide grass-roots civil society organisations with the knowledge, skills and confidence to demand and secure their communities’ rights. Strømme Foundation also works with children at-risk and childcare institutions to prevent manage and overcome situations that adversely affect children’s well-being.

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Globally, the world needs 600 million jobs over the next few years. This is a huge number and an enormous challenge for national governments and the international community. But it is necessary – both in order to lift families out of poverty and to give people – particularly young people – the chance of a better life. This is why it is so important to “create” jobs so that young people can look to the future with hope for something better than the situation their parents grew up with. That is why the need to creating jobs - environmentally friendly and sustainable jobs -is probably one of the most important issues to focus on in the years ahead.

Millions of families are kept poor because they do not earn enough money. They are dependent upon low-paying and uncertain day-labour or seasonal work. And many members of the family – particularly women and youth – lack a paid job at all. Key reasons for this include their lack of technical and

business skills and the difficulty they have

accessing financial services and markets.

Strømme Foundation works to combat this by supporting

I work(MICROFINANCE)

microfinance institutions to provide individuals with loans and skills training so that they can start up or expand an income-generating activity. We believe in Microfinance as an important tool for empowering poor people in their fight against poverty. Strømme Foundation also promotes the establishment of self-managed savings and loan groups through community managed microfinance (CMMF) and community-based organisations (CBO). These groups are an opportunity not only for members to access loans at reasonable rates, but also to receive technical training and to come together as a group to jointly purchase supplies and sell their goods.

As much of the economy and welfare of poor families depends on women, women are a prioritised target group.

Poverty is about being concerned; it is about insecurity, about lack of rights, an inability to be able to choose and to make important decisions for yourself and your family, and a lack of education. Poverty is not actually about earning more than 1.25 USD a day – it is about dignity, about human rights and about being able to choose. That is why our Microfinance and education come together as they do – to provide competence and knowledge.

23


Strømme Foundation (SF) works with local partners in 12 countries in Africa, Asia and South America. Many of these countries are constantly working to overcome corruption in all areas of society. As a development organisation, we have to be prepared to handle these challenges in our countries of operation, as well as in Norway.

Our staff in Norway, as well as at all four of our regional offices, work continuously to make sure there is no misuse of funds, and that the money does in fact reach the poor. An important part of this work is to educate and help our partners to strengthen their organisational structure, and assist in the development of their anti-corruption work in order to enable them to prevent corruption in their organisation as well as in the community. As part of our sustainability strategy we also carry out capacity building in local communities in order to enable themto work pro-actively against corruption.

Strømme Foundation’s anti-corruption regulations can be found on the internet site www.strommestiftelsen.no/en/whistleblowerand show how our policy emphasises our zero-tolerance of corruption and the misuse of funds.

The fight against corruption

In 2013, an anonymous whistle-blowing channel was launched on our internet where suspected cases of corruption, discrimination or any other unwanted events can be reported. We believe in increasing transparency and accountability both towards our donors, partners and towards people in their own community. SF has a zero-tolerance policy concerning corrup-tion, and its prevention has a high priority within the organi-sation. Strømme Foundation encourages all its partners in ensuring transparency and openness.

The total confirmed financial loss due to corruption in 2013 is 31.300 NOK. This is related to one case in East Africa. Compared to previous years, the number and size of corruption cases has been reduced. A systematic approach and increased transparency, the close follow-up of our partners, capacity building and controls have reduced the risk and the financial losses of corruption.

Strømme Foundation will continue to strengthen financial control and to develop the capacity of our partners and offices to fight and prevent corruption also in the future.


Youth Exchange ProgrammeHald International Centre is a school owned by the Strømme Foundation, the Norwegian Missionary Society and Laget. The school offers a one year study programme in cross-cultural understanding and international work. There is a good mixture of theory and practice, and all the students have a 6-7 month placement with one of the partners related to each organisa-tions’ work. Our exchange programme, Act Now, is for youth aged 19 to 25.

The students are offered an academic approach to topics such as global understanding, aid, combating poverty, culture and the environment. Act Now aims to contribute to a greater understanding of the concept of poverty, its causes, and how to combat them. Through the programme, our students learn about develop-ment by getting to know another culture personally and experiencing another reality first hand. In addition the programme includes teaching on topics such as culture, aid, development, religion, HIV/AIDS, teambuilding, personality, information work, communication, conveyance, and practical issues regarding travel.

Centre for Culture and DevelopmentMimeta has been working with culture and development since 2006. Its aim is to provide people with access to free artistic expressions created on independent terms, in the support of The Universal Human Rights Declaration.

Through its fund, Mimeta is involved in culture sector development in more than twenty countries. It also coordinates international co-productions, promoting art and design to Nordic audiences.Activists from the arts sector have demonstrated their ability

Other programmes

to address issues of artistic freedom and democratic change. The notion of the “creative class” has nourished self-esteem, and we see this as an important part of new civil society structures that arise post dictatorships. Also in this regard, the sector has become increasingly known for its contributions to job creation and economic development, and many of the sector’s repre-sentatives are acclaimed secular role models to the public.

Mimeta was incorporated as a legal entity by its owners Strømme Foundation and Vest-Agder Fylkeskommune in 2008. Mimeta is based in Kristiansand and Stockholm.

(FK – Norway)Strømme Foundation has been engaged in 2013 in all three main programs operated by the FK-Norway: the South-to-South program, the youth exchange program and the North-to-South program.

The South to South program facilitated partner staff exchanges within five countries, Uganda, Mali, South Sudan, Kenya and Bangladesh.

Our youth exchange program Act Now is run by the Hald international Centre. In 2013 / 14 we had exchange students between Norway and Uganda, Tanzania, Peru and Bolivia. The students from abroad stayed in Norway for six months while the Norwegian students stayed with a local development partner in one of the four countries for six months. The pro-gram gives young people the unique opportunity to become acquainted with development work and a new culture, and to make friends with youths living in different cultures.

Strømme Foundation also participated in the FK-Norway program for persons up to the age of 35 years. This program emphasizes the exchange of experienced persons who are able to work directly with our local partners and their staff. In 2013 we had one person from South Sudan working here in Kristian-sand, and one from Norway taking part in the daily work with one of our partners in South Sudan. This program has been a very useful way of strengthening the work of our partner.

Strømme Foundation has a close collaboration with the FK-Norway, and we see these programs as an instrument for dialog and a tool for cross-cultural communication and understanding.

ACT NOW

Mimeta

The Fredskorpset


The Strømme Foundation Roadmap for the Next 5 YearsBy 2013, the former five year Master plan, also known as the Strategic Plan, has come to an end. But in fact it is definitely not an end, as we are already proceeding into the new 5 year plan with yet another Road Map for The Strømme Foundation.

The Ethiopian legendary long distance runner Haile Gebre Selassie says: “No race starts at the starting line”. Strømme Foundation is hopefully on a dynamic way forward. Fighting poverty is a very noble, but a very challenging task, and hopefully we are learning from the past, and will move forward based on experiences of failures and successes.

During the next 5 years, we want to consolidate the organi-zation, and go for even greater achievements! In Strømme Foundation we do not offer charity, but as duty bearers we are under a moral obligation to contribute towards a more just world for our fellow men and women, who are equal rights holders like you and me!

We believe that one of the strengths of Strømme Foundation is its decentralised structure. Thus we want to strengthen our capacity building in our Regional Offices, and thereby also build capacity to strengthen our partners. Strong and well organised partners are the “hands and feet, and the ears and the mouth” of a support organisation. We have to make our partners good at finance management, and this involves continuing to develop the anti-corruption control and our results reporting at impact level. We believe that the closer we get to the “right holders”, the better placed we

will become to listen to their thoughts, their challenges and aspirations for the future. We must make efforts, and make sure that we take time to listen to all the questions being asked before we start “answering” them.

We believe in community-owned solutions, and Strømme Foundation believes strongly in close co-operation with the civil society and local and national government structures, sometimes with a strong advocacy role. Only with local owner-ship, and when there is involvement and a critical view of the NGO’s role, can we be successful, - addressing the danger of a dependency syndrome.

In 1963 Martin Luther King Jr. delivered his famous speech “I have a dream”! Strømme Foundation`s vision sounds like a dream, “A world free from poverty “! The Millennium Develop-ment Goals (MDGs) have definitely yielded some positive

The Strømme Foundation Roadmap for the Next 5 Years

results, and brought us forward. However, as we in a few months approach 2015, we are at a crossroads of evaluating the status of the world from a perspective of the obtained targets of the MDGs. In that regard we may very well use the picture of a glass half full of successes or a half full of failures. Both can be factually correct related to the ambitions of the MDGs. How-ever in Strømme Foundation we want to stick to the “half full” glass of success and optimistically move from there.

The next initiative is the global drive to define the “sustainability goals” which the world aims to fulfil by 2030. More than 20% of the world`s population, a total of 1.7 million individuals, still live in extreme poverty! 50 % of the global population is under 25 years old, and 57 million people have no access to education, while 250 million only obtain a very low quality education.

Strømme Foundation will in the next five years continue to take on a certain responsibility when it comes to education. Education is essential for all of us and for all development to take place. Knowledge broadens our minds! Based on education, knowledge and development of skills, we want to play a catalytic role. In synergy with capacity building and education, we want to offer financial incentives and to develop appropriate financial products for the poor through micro-finance and engage communities through community managed microfinance. We want to empower people to have their dreams, aspirations and innovations realised. Education and access to income generating activities is one of the key incentives for development, and for job creation.

We believe in our metaphoric slogan that we developed a few years ago that we are “building ladders”, so that people can climb out of poverty. These ladders are not made in Norway, but in Mali, Burkina Faso, in Peru, Nepal, South Sudan, and so on. Our ladders simply imply local solutions to local challenges.

2013 is behind us and inspires us to get started on new challenges and look for new opportunities, guided by the “Roadmap 2014-2018”. We will define Strømme Foundation`s niche within the global “sustainable goals” that follows the shortcomings of the Millennium Development Goals by 2015, and still we will strive for “A world free from poverty” by 2030. Education + Financial incentives through microfinance and savings and loans groups = Job creation!

Øyvind Aadland, Secretary General

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Report from the Strømme Foundation Board of Directors for 2013

Strømme Foundation (SF)s identity is based on Christian values emanating from the life and teachings of Jesus Christ. Thus, SF, inspired by the Christian view of God´s creation and absolute dignity of man, strives to approach people with openness and respect, regardless of religion, ethnicity, caste, gender, disability or other minority status. With a deep respect for human dignity and a conviction of the value of equitable partnership, SF works to empower the poor to take charge of their own lives and communities.

SF intervenes through the sectors of education and micro-finance. Whereas education helps people develop the attitudes, skills and knowledge needed to make informed decisions for the development of themselves and their communities, microfinance creates access to sustainable income sources and provides a means by which the poor can act upon these decisions. It is our firm conviction that, when combined, education and microfinance can enable our target group to hold duty bearers accountable for the realisation of their rights to a greater extent than is possible through isolated education or microfinance interventions alone.

SF has its co-ordinating/facilitating office in Norway (Kristian-sand) and four regional offices in West Africa (Mali); East Africa (Uganda); South America (Peru) and Asia (Sri Lanka), plus four satellite offices in South Sudan, Bangladesh, Nepal and Burkina Faso.

THE BOARD The Board has had 3 ordinary board meetings in 2013 and dealt with 32 issues.

The Board members who served during 2013 were; Svein Ove Faksvåg (chairperson), Torill Selsvold Nyborg (deputy chairper-son), Knut Vollebæk, Olaf Gundersen, Anna Minj, Hege Wallevik, and Ansgar Gabrielsen. Substitute members were; Trond Backer, Ann Midttun and Cecilie Wathne.

STRATEGIC PLANNING 2013 was an important year for the organisation as the strategic plans for the next five years (2014 to 18) were finalised. Our main goal for this strategic plan period is to strengthen the organisation’s contribution to bringing people out of poverty in a lasting way. We believe we can make the most impact by:

• Enhancing the quality of our programmes to address the root causes of poverty• Influencing public opinion and government policy by raising awareness on the issues of global poverty and injustice• Making available long-term funds and resources for our programme operations• Running an efficient and effective organisation.

SF’s mode of operation is unique in our combination of a decentralised structure and our partnership model, which ensures that the solutions to poverty are locally defined and always tailored to the local context. SF also seeks to strengthen the civil society by facilitating our partner networks to influence government policy through conducting more direct advocacy

work towards the Government(s), and building the capacity of partner organisations to undertake such advocacy in our intervention countries. To this end SF seeks to maintain and reinforce our role in thematic and strategic networks that will strengthen our joint potential for advocacy. The focus of SF’s fundraising efforts is on making available new funds and resources for our programme operations. To the greatest extent possible, SF seeks to raise funds that will increas-ingly facilitate a move from implementing isolated projects to a more integrated and long-term programme approach. This necessarily demands a thorough integration of funding in programming work, and vice versa.

SIGNIFICANT ACHIEVEMENTS IN FUNDRAISING Two major achievements during 2013 were the successful renewal of SFs co-operation agreement with Norad and the ‘Jobbskaper’ private fundraising campaign in Kristiansand.

The renewal of the Norad agreement will mean an increase of 40% increased from 2009, 40.7m NoK in 2009 and 57m NoK from 2014. This is the largest increase that any of the organisations due for renewal in 2014 received and the Board is extremely happy with this result.

The ‘Jobbskaper’ campaign was also very successful, raising the awareness of SF in our home town to unprecedented levels through involving key ambassadors from business, education, sport and local politics, and creating over 5000 job opportunities in SFs countries of operation.

PROGRAM RESULTS 2013 was a year of consolidation at the end of the five year planning period and phasing out of some partnerships in preparation for the new strategic plan.

These are some highlighted results:

Through the Speed School program in West Arica, during the year 21,384 children were given a second chance for an education, 87% of which completed the course and success-fully transferred to primary school. The experience of previous cohorts suggests that these children are likely to both con-tinue and excel in school: Of the transferred children from the 2008/2009 cohort for whom we have data, 82% have already completed primary school. This figure is striking and a great achievement when situated against the backdrop of the low completion rates in the region.

In microfinance, we continued to focus on finding ways of measuring the social results of our activities in addition to remaining financially viable. In Sri Lanka, for example, we have gathered information on social indicators for a selected number of partners since 2011. As of 2013, we are happy to report improved living conditions for the individuals our partner institutions serve. Improvements include better housing, building of permanent toilets, and access to electricity.

CULTURE SF also has a controlling Interest (65%) in Mimeta AS, the first Norwegian organization specializing in the sector of culture and development. During the year Mimeta has had


three focus areas; democratization, building an independent platform for promotion of the arts, and building capacity for income generation from the arts.

Financial Headlines STRØMME FOUNDATION The total income in 2013 was 140.5m Nok compared to 131.2 m Nok in 2012. This is the high-est income that SF has ever raised in one year. Public Sector in-come increased from 52.9 m Nok in 2012 to 55.8 m Nok in 2013, mainly due to increased support from Norad. Private donations have increased slightly from 52.9 m Nok in 2012 to 53.3 m Nok in 2013, income from Business partnerships also showed a small increase from 9.5m Nok in 2012 to 9.7 m NoK in 2013. Contri-bution from other organizations increased more significantly from 14.8 m NoK in 2012 to 20.0 m Nok in 2013. This is due to good results from institutional fundraising and that we have been successful with Operasjon Dagsverk, and are running two programs funded by them concurrently in Asia.

Financial support to purpose activity decreased from 109.3 m Nok in 2012 to 106.4 m Nok in 2013. This is mainly because 2013 was a year of consolidation, planning and some phasing out of partners for the new strategic plan. The result for the year after change in earmarked capital was a surplus of 10.8 m Nok compared to a surplus of 1.0 m Nok in 2012. This will allow SF to build up reserves in preparation for the new strategic plan.

Consolidated AccountsThere was a consolidated surplus of 25.3 m NoK compared to a 0.4m NoK in 2012. The big difference between the years is the income in SF which has increased in all areas and the currency gain in Microfinance.

Total equity increased from 155.1 m NoK in 2012 to 185.0 m Nok in 2013. The cash flow from operational activities is satis-

factory; total liquid funds at the year end incl. Mimeta were 51.0 m NoK in the accounts, but this excludes SMF AS that has been consolidated using the Equity method. Liquid funds in SMF AS total 22.6 m NoK.

The key figures for SF as a percentage of total costs in 2013 were: Administration 5.3% (4.5 % in 2012); Fundraising 12.1% (10.9% in 2012); and Purpose 82.6% (84.6% in 2012). In addition the Norwegian Fundraising Control Board have introduced a measure of the amount of private funding that goes to purpose costs which is 78.8% (79.2% in 2012).

WORKING ENVIRONMENT AND STAFF The working environment in the SF is considered to be good. The coopera-tion with the employees’ unions has been constructive and has contributed positively to the development work.

In 2013 there were 4 (4 in 2012) men and 3 (3 in 2012) women in the Board. Among the employees in the Kristiansand office at the end of the year, there were 15 women (14 in 2012) and 18 men (19 in 2012). In the regional offices there were 30 women (28 in 2012) and 76 men (69 in 2012). On the leader-ship team, comprising the senior managers in the Kristiansand office plus the regional directors, there were 5 men and 3 women. SF strives for a balance of gender at all levels and is conscious about this when employing new staff.

Absence due to illness in the Kristiansand office was approximately 5.8 % (5.1 % in 2012) of the total working time. The organization has a company health service agreement. There were no serious accidents at work resulting in material damages or personal injuries during the year.

The organizations contamination of the external environment will mostly be of an indirect nature. The Board considers this to have minimal contamination effect on the external environ-ment. The organization has no order from the public authori-ties that has not been complied with. Strømme Foundation


Kristiansand, 15th June 2014

Svein Ove Faksvåg Chairman of the Board

Anna MinjBoard Member

Torill Selsvold NyborgBoard Member

Knut VollebækBoard Member


Hege Wallevik Board Member

Ansgar GabrielsenBoard Member

Olaf GundersenBoard Member

has an international staff, and recruitment processes and working environment in all offices are intended to ensure that there is no discrimination on the grounds of race or disability.

RISK PERSPECTIVE The Board continues to monitor SFs risk through quarterly reporting, focus has continued during 2013 on deviation reporting to the Board and on preventing corruption in SF and its partners. The organisation has estab-lished good systems and had good dialogue with donors when suspected corruption cases are uncovered. The security situa-tion in West Africa has had an impact on operations with one partner in the north of Mali, and has restricted travel for locals and especially Kristiansand office staff travelling to the region. However, the office in Bamako has remained operational and there are well established security plans. During the year there have also been disturbances in Bangladesh and South Sudan. The Board is monitoring the security situation closely, especially in Dhaka and Juba.

SFs expenditure is largely in currencies linked to the US dollar or the Euro, and with most income in Norwegian kroner, exchange rates play a large part in what SF is able to deliver to partners in the South. However, given the nature of SFs agreements with these partners, our exposure is limited to the Norwegian kroner budget. During 2013 SF entered into fixed exchange rate con-tracts in order to secure the budgets at a favourable exchange rate between the Norwegian kroner and the US dollar.

Strømme Foundation has no external borrowing, so there will be no serious consequence for the organization if the interest rates should increase considerably. The credit risk is restricted to the microfinance operations in SMF AS.

Microfinance operations are exposed to credit risk and country risk. Due to the monitoring system and diversification of the portfolio, the Board believes that the credit risk is reduced to an acceptable and manageable level. The specific country risk cannot be influenced directly by the company, but the sum of country risks has been reduced through the company’s strate-gic decision of spreading its activities over several countries.

FUTURE PERSPECTIVE SF has clear plans to continue its work of empowering poor communities to climb the ladder out of poverty. The need is clear and urgent, and the organisation is in a good position to make a substantial impact.

The Board has good reason to believe that Strømme Foundation is a going concern. The results from 2013 show steady growth in regular income. The Board would like to thank the administration for the good results achieved in 2013. SF is in a good position to respond to changes in the market for funds, whether they come from competitors or from general economic circumstances.

ALLOCATION OF THE RESULT Out of SFs overall surplus of 13.7 m NoK, 2.9m NoK is added to the restricted purpose capital, and 10.8 NoK is transferred to other purpose capital. The consolidated accounts show a net surplus of 25.2 m NoK, of which 14.4 m NoK is added to restricted purpose capital and 10.8 m NoK to other purpose capital.s


Funds acquired Public sector grants 55 836 964 52 948 319 59 546 732 56 751 246 Grants from other organisations 20 015 697 14 831 958 22 025 871 15 728 723 Private donations 53 276 960 52 854 564 53 374 029 52 854 564 Corporate sector 9 697 971 9 538 873 9 697 971 9 538 873 Financial income 1 178 376 616 705 914 373 525 093 Other income 505 714 386 494 658 665 413 574 Total funds acquired 140 511 682 131 176 913 146 217 641 135 812 073 Funds spentCost of fund acquisitionDirect fundraising cost -11 540 460 -10 539 869 -11 540 460 -10 539 869 Other fundraising cost -4 094 834 -3 547 862 -4 881 029 -4 242 399 Total cost of fund acquisition -15 635 294 -14 087 731 -16 421 489 -14 782 268 Purpose cost Support to development partners -67 919 083 -70 023 744 -66 347 146 -61 199 674 Disaster response - -624 556 - -624 556 Program follow up at regional offices -21 330 748 -20 148 692 -21 424 594 -20 148 692 Program follow up from Kristiansand -10 076 055 -9 951 048 -11 648 443 -10 890 121 Information and public education -7 117 795 -8 593 218 -7 117 795 -8 593 218 Project support - Mimeta -3 917 620 -2 529 129 Total purpose cost -106 443 681 -109 341 259 -110 455 599 -103 985 390 Administration cost -6 767 821 -5 788 105 -7 554 015 -6 482 643 Total funds spent -128 846 796 -129 217 095 -134 431 103 -125 250 301 VAT compensation 2 072 954 1 514 712 2 072 954 1 514 712 Result Microfinance (MF) 11 403 030 -11 697 562 The year’s activity result 13 737 840 3 474 530 25 262 522 378 922 Hereof minorities’ share (Mimeta) -299 754 212 760 Additions/reductions in purpose capital Change in purpose capital with restrictions 2 911 709 2 505 755 2 055 271 3 113 639 Change in purpose capital with restrictions (MF) 12 381 121 -3 703 491 Transferred to / (from) other purpose capital 10 826 130 968 775 10 826 130 968 774 Total additions/reductions in purpose capital 13 737 840 3 474 530 25 262 522 378 922

Strømme Foundation Activity Accounts

Strømme Foundation Balance 31.12.2013

Strømme Foundation 2013




Consolidated 2012

Consolidated 2012

Note

Consolidated 2013

Consolidated 2013

Long term assets Fixed assets Property 7 720 579 8 018 671 7 720 579 8 018 671 Property development 3 289 109 3 275 809 3 289 109 3 275 809 Office furniture and equipment 532 959 492 827 618 343 733 920 Total fixed assets 11 542 647 11 787 308 11 628 031 12 028 400 Financial assets Investment in subsidiaries 37 459 847 37 459 847 - - Investment in other companies 705 000 305 000 748 583 605 354 Investment in microfinance - - 132 037 021 114 767 824 30Loan to subsidiaries 72 210 100 72 210 100 - - Total financial assets 110 374 947 109 974 947 132 785 604 115 373 178 - - Total long term assets 121 917 594 121 762 255 144 413 635 127 401 578 - - Receivables - - Trade Debtors 1 403 317 2 239 385 1 403 317 2 239 385 Inter company receivables 436 860 218 610 0,00 - Other receivables 1 270 363 668 408 1 439 441 743 278 Total receivables 3 110 540 3 126 403 2 842 758 2 982 663 - - - - Investment in current financial assets 9 396 928 13 057 590 9 396 928 13 057 590 - - - - Bank and cash 39 314 247 18 839 418 41 623 891 21 965 960 Total current assets 51 821 716 35 023 411 53 863 578 38 006 213 - - - - TOTAL ASSETS 173 739 310 156 785 665 198 277 213 165 407 791

ASSETS

Svein Ove Faksvåg Chairman of the Board


Hege WallevikBoard Member

Ansgar GabrielsenBoard Member

Olaf GundersenBoard Member

Anna MinjBoard Member

Torill Selsvold NyborgBoard Member

Kristiansand 15th June 2014

Knut VollebækBoard Member

PURPOSE CAPITAL AND LIABILITY

Purpose capital (PC) Founding capital 3 326 092 3 326 092 3 326 092 3 326 092 - - Acquired purpose capital PC with restrictions (SF projects) 11 854 950 8 943 241 11 854 950 8 943 241 PC with restrictions (Microfinance) 106 882 512 106 882 512 103 023 169 87 026 638 Restricted equity (Mimeta) - - 690 877 1 247 563 Minority interests - - 372 011 671 765 Other purpose capital 39 117 268 28 291 138 65 737 473 53 933 252 Total acquired purpose capital 157 854 731 144 116 891 181 678 481 151 822 459 Total purpose capital 161 180 823 147 442 983 185 004 573 155 148 551 31 Liability Long term debt Pension obligations 757 900 232 371 757 900 232 371 Staff gratuities in regional offices 2 251 122 2 282 207 2 251 122 2 282 207 Legacy obligations 150 000 150 000 150 000 150 000 Other long term debt 505 000 105 000 505 000 105 000 Total long term debt 3 664 022 2 769 578 3 664 022 2 769 578 Short term debt Creditors 1 997 447 1 696 568 2 157 320 1 720 201 Public duties & taxes 1 994 082 1 758 284 2 098 404 1 847 560 Owed to employees 1 774 364 1 741 927 1 774 364 1 796 159 Inter company debt 778 478 776 696 0 - Deferred project income 2 150 000 450 000 3 378 436 1 976 112 Other account payable 200 094 149 630 200 094 149 630 Total current liability 8 894 466 6 573 105 9 608 618 7 489 662 Total liability 12 558 488 9 342 683 13 272 640 10 259 240 - - TOTAL PURPOSE CAPITAL AND LIABILITY 173 739 310 156 785 666 198 277 213 165 407 791

Strømme Foundation 31.12.2013



Consolidated 2012

NoteConsolidated 2013


(The indirect method)

The year’s activity result 13 737 840 3 474 530 25 262 522 378 922 Adjustment Microfinance - - -12 675 696 4 570 321 Unrealised loss on investments, i.e. current financial assets - - 304 012 125 176 Ordinary depreciation 16 516 699 529 349 672 408 542 038 Disposal of fixed assets 16 4 200 2 100 4 200 2 100 Difference between pension cost and payments 525 529 -274 480 525 529 -274 480 Posts in the activity account without liquidity effect 1 046 428 256 969 1 506 149 394 834 - - Acquisition of fixed assets -262 939 - -262 939 -253 782 Acquisition of shares in subsidiaries -400 000 - -447 241 - Acquisition of other long term shares - - - -382 590 Property development Lillesand 17 -13 300 -8 332 -13 300 -8 332 Changes in loan to subsidiary - - - - Changes in long term debt 368 915 299 680 368 915 299 680 Investments, disposals and financing -307 324 291 349 -354 565 -345 023 - - Change in receivables/other current assets 15 863 101 192 139 905 5 680 Change in creditors/other short term debt 621 361 261 954 716 632 -527 668 Change in deferred project income 1 700 000 -473 868 1 402 324 1 052 244 Other changes 2 337 224 -110 722 2 258 861 530 256 - - Total changes in liquidity during the year 16 814 168 3 912 125 15 997 271 5 529 309 - - Opening balance of cash and current financial assets 1.1. 31 897 008 27 984 883 35 023 550 29 494 240 Closing balance of cash and current financial assets 31.12 48 711 175 31 897 008 51 020 819 35 023 550 - - Specification: - - Investment in current financial assets 20 9 396 928 13 057 590 9 396 928 13 057 590 Bank and cash 21 39 314 247 18 839 418 41 623 891 21 965 960 Closing balance of cash and current financial assets 31.12 48 711 176 31 897 008 51 020 819 35 023 550

Strømme Foundation Cashflow 2013

Strømme Foundation

2013

Strømme Foundation

2012

Consolidated 2012

Note Consolidated 2013



The financial statements of the Strømme Foundation (SF) are prepared in accord-ance with the Norwegian Accounting Act and the “Accounting Standard for Not-for-Profit organisations”, produced by The Norwegian Accounting Standards Board in 2006 (updated in 2008). This means that, in place of a traditional Profit and Loss Account, there is an Activity Account which is meant to give the reader a better understanding of how Strømme Foundation has used the resources at its disposal. SF is not liable for direct taxation.

Allocation of costsPurposeStrømme Foundations purpose is:

To lift people out of poverty;To manage raised funds and public grants, and by doing so to ensure that recipients gain real influence over their own situation through participation in the developmental process, to strengthen human dignity, and to stimulate the ability of recipients to help themselves.To engage in dissemination and awareness activities in a a North-South perspec-tive, with the aim to create increased interest in development through co-opera-tion; andTo provide aid and assistance through local partner organisations, and other regional organisations in co-operation with local authorities.

The Regional OfficesStrømme Foundation has four regional offices; in West Africa (Mali); East Africa (Uganda); South America (Peru) and Asia (Sri Lanka), plus three satellite offices in Sudan, Bangladesh and Nepal.The full cost of these offices is allocated as purpose cost.

Support for programme work from Head OfficeAll the costs of the “International Department” are allocated to activity and are purpose costs. The department’s function is to co-ordinate, support, evaluate and monitor all programme work, as well as liason with public and institutional funding bodies such as NORAD, The Norwegian Peace Corps, Operation Dayswork and Eriks Foundation.

Other support functions at Head OfficeThese consists of “Secretariat of the General Secretary”, Administration-, Finance- and ICT department. The basis of allocation starts with salaries, which are allocated according to an estimate of the amount of time spent on different activities. Costs that cannot be reasonably and consistently allocated to activity, are classified as administration costs. Thus, support costs relating to the Board of SF, audit costs, general memberships, consultancy, finance costs and about 50% of staff costs in the secretariat, administration and finance departments are classified as administra-tion costs. Note 1 below shows in summary how the allocation has been made.

Fundraising and InformationAll expenditure directly connected to personnel employed as fundraisers, and to solely fundraising activity, is classified 100% as a fundraising cost. This includes all direct marketing costs and other costs associated with our main fundraising products “Friend at Heart” and “Bridge Builder”.

All expenditure on personnel and activity whose prime purpose is connected to information and public education is allocated to purpose activity.

Transactions in Foreign currencyCosts outside Norway are recorded at the exchange rate relating to the cor-responding transfers from Head Office. All regional offices’ accounts are recorded at Head Office monthly, using the same rates. SF is in the process of incorporating the regional offices into the accounting software package that is used at the head office. The conversion of the regional accounts from local currency to Norwegian kroner will then be an ongoing process as the exchange rates are updated in the system. The net currency gain/loss due to currency differences is allocated to pro-ject support to implementing partners in the activity accounts, because the gains/losses are connected to transfers to the regions from head office.

SF enters into forward exchange contracts in foreign currency to reduce the currency exposure connected to money transfers abroad. The currency hedging is classified as securing of cash flow according to the NRS 18 “Financial assets and obligations”. The cash flow securing is reflected through not applying realised or unrealised profit and loss on the security instrument in the result before the under-lying security product affects the activity account. Foreign currency income is recorded at the spot rate on the day of receipt.

Income Income is entered in the accounts according to the gross method. Costs are entered as they accrue, and income when it is realised. Bequests or donations are recorded as income when there is indisputable confirmation of receipt.

SF follows special guidelines concerning earmarked funds, which ensures that these funds cannot be used for activities other than those for which they were donated without specific approval. The Board has set regulations for the handling of earmarked funds when a project is closed. Unused earmarked funds are shown as purpose capital with restrictions in the balance sheet.

Accounting Principles applied

Classification and Valuation of Balance Sheet ItemsCurrent assets and short-term liabilities contain items due for payment within one year after acquisition. Other items are classified as fixed / financial assets or long-term liabilities.

Current assets are valued at the lowest of procurement cost and actual value. Other accounts receivable are included in the balance sheet at face value. Items in foreign currency are valued at year end exchange rates. Short-term liabilities are recorded at the nominal amount at the time of accrual.

Fixed / financial assets are valued at procurement cost, but are depreciated to actual value if the fall in value is not expected to be temporary. Long-term debt is entered at the nominal amount at the time of establishment.

Fixed assetsThe fixed assets are entered in the balance sheet and depreciated over their life span if the life span is more than 3 years and the cost is higher than NOK 50 000. Maintenance of fixed assets is charged to operating costs, while renovation or upgrading is added to the cost value and is depreciated along with the asset.

At the regional offices all fixed assets are charged to result at the time of procure-ment.

All leasing contracts are classified as operational and accounted for as costs.

Shares in Subsidiaries and other CompaniesShares in subsidiaries and other companies are recorded at historic cost.

Short-term InvestmentsShort-term investments (shares and share units considered to be current assets) are valued at the lowest of average procurement cost and actual value in the balance sheet. Received interest and dividend from the companies are entered as other financial income.

PensionsPension costs and the pension obligations are calculated according to the principle of linear earning based on estimated factors for the discount rate; future regulation of salary, pensions and contributions from Social Security, future earnings on the pension fund as well as the actuarial conditions concerning death rate, voluntary resignations, etc. The pension fund is valued according to actual value and is deducted from the net pension obligations in the Balance Sheet. Changes in the obligation due to changes in the pension plans are allocated over the expected re-maining contribution period. The same applies to estimate deviations to the extent they exceed 10% of the greater of the gross pension obligations and the pension funds. Arrangements with net obligation are shown as liability and arrangement with net over-financing is shown as financial asset.

CashFlow The cash flow is calculated using the indirect method. Cash and cash equivalents consist of cash, bank deposits and other short term liquid investments which can immediately be converted to cash without material exchange risk.

Consolidation principlesThe consolidated accounts includes those companies where Strømme Founda-tion directly or indirectly has deciding influence. The consolidated accounts are prepared as if the group was one economic unit. Transactions and outstanding balances between the companies in the group are eliminated. The consolidated accounts are prepared according to uniform principles. Purchased subsidiaries are accounted for in the consolidated accounts based on SF’s procurement costs. The costs of acquisition are linked to identifiable assets and debt in the subsidi-ary, which is stated at actual value in the consolidated accounts at the time of purchase.

Investments in microfinance are valued according to the equity method in the consolidated accounts. The equity method requires that proportion of the relevant companies result, reduced by depreciation on possible excess values, is charged to the activity account in the consolidated accounts. Both the purpose capital and the mother company’s lending to the microfinance activity are incorporated in the account line “Investments in microfinance”.

Minority interests are shown as a separate post under the purpose capital. This means that assets and debt are stated inclusive of the minorities share. In the activ-ity account, the minorities share of the result is calculated.


Notes for 2013 Note 1 – Principles for allocating costsDepartment Total Admin Fundraising Purpose Comments/Allocations basisGeneral Secreteriat, Administration, Finance & ICT 16 767 6 047 3 571 7 148 Some direct allocation to admin, rest allocated on HO salary basisCommunication/Marketing 17 592 721 11 540 5 331 Allocation on the basis of activityInternational department 5 239 0 524 4 715 All purpose activities & institutional fundraisingTransfers to development projects, regional offices and partners 89 250 0 0 90 797 All activity outside Norway and with external partners is defined as purpose.Total 128 847 6 768 15 635 106 444

Note 2 – Key Indicators 2013 2012 2011 2010 2009Percentage spent on purpose 82,6 % 84,6 % 84,1 % 81,5 % 84,4 %Percentage spent on administration 5,3 % 4,5 % 4,3 % 5,1 % 5,0 %Fundraising percent 78,8 % 79,2 % 75,1 % 76,4 % 77,9 %

The percentage spent on purpose shows how much of the total expenditure that has gone to fulfil Strømme Foundations purpose. The percentage spent on administration shows how much of the total expenditure consists of unallocated administrative costs (general admin, accounts, ICT, audit, board/council expenses). The fundraising percentage shows how much of the money SF raises from private donors that goes to purpose costs, after the cost of raising the funds is deducted. Public Sector grants, grants from foreign organisations, financial income and other income are excluded from the calculation. In 2012 and 2013, contributions from Norwegian organisations are included in the basis.

Note 3 – Public sector grantsStrømme Foundation has a five year core funding agreement with the Norwegian Agency for Development Co-operation (NORAD) which runs to the end of 2013. The framework agreement of NOK 1 mill per annum to support information work runs to the end of 2014. The agreement with Norwegian MFA to support rehabilitation in Sri Lanka was renewed, and the Swiss agency for development co-operation renewed its support for Speed Schools in West Africa. A new five year agreement to provide education for girls has been signed with UK Aid.

Donor Purpose 2013 2012Norwegian Agency for Dvlpm. Coop. (NORAD) Development Programmes 45 000 000 42 650 070Norwegian Agency for Dvlpm. Coop. (NORAD) Information Activities 1 000 000 1 000 000Norwegian Ministry of Foreign Affairs (MFA) Rehabilit. and Developm. for conflict affected people – North Sri Lanka 2 000 000 2 000 000United Nations Children’s Fund (UNICEF) Speed School Programme – Mali 214 350Swiss Agency for Development & Coop. (SDC) Speed School Programme - Mali 2 208 070 2 149 909EU/Danish Church Aid (DCA) Food Security and Livelihood - South Sudan 199 946 372 848The Norwegian Peace Corps – Young Act Now Programme - Hald International Centre 1 850 000 1 850 000The Norwegian Peace Corps South/South Exchange Programme - East Africa 2 121 227The Norwegian Peace Corps Exchange programme, HTPV – South Sudan 670 994 575 326UK Aid Education for girls, South Sudan 379 065 US Aid Hydroponic Green Forage, Peru 60 515 UNHCR Pilot study, out of school children (East Africa) 91 091 UNICEF Pilot study, out of school children (East Africa) 60 727 International Labour Organisation Program follow up, Mali 14 589Total 55 836 964 52 948 319

These grants are earmarked to specific projects and are shown gross including the administrative support element. Settlement with the donor is made in arrears once a year. Unused capital must be returned. The core funding agreement with NORAD (2009/2013) requires a minimum contribution of 10 % from Strømme Foundation, and allows up to 8% administration support on the project cost. For programs financed by other public sector donors the amounts spent on programme follow up are agreed in the budget.

Note 4 – Contributions from other organisations Donor Purpose 2013 2012Operation Dayswork, Norway Empower girls to become masters of their own life – Bangladesh 6 600 433 5 155 350 Operation Dayswork, Norway Empower girls to become masters of their own life – Nepal 4 042 566 Läkarmissionen, Sweden Saving- and credit groups capacity building – Uganda 1 927 749 1 673 845 Eriks Foundation, Sweden Speed Schools, Mali 1 166 492 1 583 704 Eriks Foundation, Sweden Rehabilitation of conflict affected children, Sri Lanka 275 450 Eriks Foundation, Sweden Education and community development, Bangladesh 2 302 514 2 745 925 Eriks Foundation, Sweden Local community Development, South Sudan 1 905 000 1 781 734Eriks Foundation, Sweden Pilot Study; out of School Children, East Africa 36 345 Geneva Global, USA Girls empowerment programme, Nepal 851 406 431 963 Turing Foundation, The Netherlands Speed Schools, Niger 189 124 The Millennium Promise Allicance, USA Speed Schools, Mali 319 514 Waterloo Foundation, England Active literacy for women, Mali 307 936 469 125 Futuro Bolivia, Norway Occupational training for women, Bolivia 68 875 91 543 Tear Fund, Switzerland Program Follow up of Peruvian partner 171 014 114 681Bernhard van Leer Foundation, The Netherlands Safe families & protected childhood, Peru 220 000 Copeinca, Peru Healthy families and local community, Peru 358 467 Save the Children, international Pilot Study; out of School Children, East Africa 56 900 Total 20 015 697 14 831 958

The Shonglap programme in Bangladesh financed by Operation Dayswork continued in 2013 in addition to the Samvad Program in Nepal which strated in 2013. Läkarmis-sionen have expanded their support for savings and credit groups in East Africa abd programs with Eriks Foundation continued as planned. There were several new smaller agreements signed in different countries.

Note 5 - Private donationsDonor Category 2013 2012Individual donations 8 609 971 8 829 693 Fixed-term donations (Friend at Heart, Bridge Builder, Poverty Buster etc.) 39 686 372 39 230 884 Events, schools and artists 3 816 076 3 632 768 Testamentary donations 1 164 541 805 859 Disaster Relief & Rehabilitation 355 359 Total 53 276 960 52 854 564


In total there was a 1% increase in private donations from 2012 to 2013. During the year a new campaign called “jobbskaper” was launched to recruit new private donors.

Note 6 – Corporate sectorThis income comes from our cooperation with the corporate sector and sports clubs. We define the cooperation within three categories. A ”Main partner” contrib-utes NOK 500 000 or more, a ”Plus partner” between 100 000 and 499 000 and a ”Partner” from 15 000 to 99 000. In 2013 we had three Main partners, Agder Energi, Skagerak Energi and the Kavli Foundation. Their accumulated donations comprise more than NOK 6 mill. Our largest sports cooperation partner is IK Start through their organisation Start Life Support.

Note 7 – financial income/expenditure 2013 2012Other interest income 846 467 582 339 Other financial income 331 908 77 241 Other interest cost -586 Other finance cost -42 290 Totalt 1 178 376 616 705

Foreign currenct accounts in the balance sheet have used the following exchange rates: USD/Nok 6.06 and Eur/NOK 8.36. The gain is shown in other financial income.

Note 8 – private fundraising costs The costs of fundraising in the Norwegian private market are shown here, both the direct costs and the indirect support costs allocated to fundraising. Indirect costs are shown under ‘Other fundraising costs’, and this also includes costs in Norway of fundraising from other organisations. Overall the private fundraising costs have increased from 2012 due to the first “Job Creator” campaign launched in the city of Kristiansand.

Note 9 – Programme support to partners

Country/Region 2013 2012Bangladesh 9 762 041 11 614 883 Sri Lanka 4 417 555 4 433 348 Nepal 4 445 893 2 102 661 India 488 007 Asia 19 113 496 18 150 892 Uganda 8 346 055 7 848 253 Tanzania 2 762 718 2 817 334 South Sudan 7 046 757 7 627 638 Kenya 1 973 652 4 255 988 East Africa 20 129 181 22 549 212 Mali 13 601 466 13 596 214 Burkina Faso 3 314 974 2 506 190 Niger 1 512 969 1 703 197 West Africa 18 429 408 17 805 601 Peru 4 616 184 4 238 590 Bolivia 3 564 249 3 920 584 South America 8 180 433 8 159 174 Act Now 1 847 467 1 858 396 Culture – MIMETA 500 638 1 280 000 Global 2 348 105 3 138 396 Net currency gain/loss -281 540 220 470 Total 67 919 083 70 023 744

In Asia there is a significant increase in activity due to the Operation Dayswork grant. India appears again due to Peace Corps exchange with East Africa. The Jami Bora project in Kenya received less than planned due to delays in the purchase of loans to 2014. Support for Mimeta has been significantly reduced now that the start up phase for the company is over. Total support to projects is a little lower than in 2012. In addition to the reasons mentioned above this is also because of phasing out of partners in West Africa in preparation for the new strategic plan, security issues hampering the impemenmtation and currency gains.

Net currency gains/losses included in purpose costs 2013 2012Currency gain 1 479 406 458 735 Currency loss -1 101 019 -679 205 Total 375 387 -220 470 Allocated to Project Support 281 540 Allocated to Regional Office 93 847 Total allocated 375 387 Due to the implementation of the Agresso accounting system in East Africa and Asia currency differences are accounted for on a monthly basis. Holding in foreign currency is recalculated to the average rate given by Oanda at the year end.

Note 10 – disaster reliefCountry (event) 2013 2012Niger (drought/flood) - 220 067 Uganda (drought) - 275 899 Tanzania (drought) - 42 863 Sudan (drought) - 85 727 Total - 624 556 There were no specific campaigns in 2013 for disaster relief.

Note 11 – Programme follow up at regional officesRegion 2013 2012Asia (Bangladesh, Sri Lanka, Nepal) 5 231 811 5 813 826 East Africa (Uganda, Tanzania, South Sudan, Kenya) 7 063 928 6 287 501 West Africa (Mali, Burkina Faso, Niger) 6 675 362 5 715 807 South America (Peru, Bolivia) 2 359 646 2 331 558 Total 21 330 748 20 148 692

The costs of the office in South Sudan have increased significantly and more resources have been allocated to the office in Burkina Faso.

Note 12 – Programme follow up at regional officesDepartment 2013 2012International department 4 714 712 4 123 324 Microfinance department (SMF AS) - 545 458 Shared support services 5 361 343 5 282 266 Total 10 076 055 9 951 048

Direct support to the microfinance company ceased in 2013 as the operations are now self-financing.

Note 13 – Information and public education workThe communication department has two purposes: fundraising, and information and public education work. In addition to reports from the projects in the South to donors through our magazine Help for Selfhelp, this part of our work includes activities particularly targeted towards schools, the corporate sector, the press and social media. The primary focus is development issues rather than fundraising. The Norad grant of NOK 1 mill for information work covers part of the costs of such activities.

Note 14 – Vat compensationThe current legislation relating to VAT provides a facility for voluntary organisations to apply in arrear for compensation of VAT paid. Received VAT compensation in 2013 is based on the total funds spent in 2012, and is recorded as income in the ac-counts, but stated on a separate line as extraordinary supply of funds in the activity account. No claim of outstanding VAT is recorded in the balance sheet for 2013. The accounts are charged inclusive of VAT, and compensation for VAT will be recorded as income in 2014.


Note 15 Changes in purpose capital (PC)Strømme Foundation 31/12/2012 Change During 2013 31/12/2012Founding Capital 3 326 092 - 3 326 092 PC with restrictions (SF projects) 8 943 240 2 911 709 See specification in note 15B 11 854 949PC with restrictions (Microfinance) 106 882 512 106 882 512 Other purpose capital 28 291 139 10 826 130 Result for SF 2013 39 117 268TOTAL PURPOSE CAPITAL 147 442 983 13 737 839 161 180 822

A substantial part of fundraised capital is linked directly to projects. Many of these are also financed through public sector grants and grants from other organisations. After the allocation of public sector and institutional grants according to the terms of the cooperation agreements, the fundraised capital is used to cover SF’s own share. From year to year the usage of fundraised capital for specific purposes will vary, leaving remaining balances on running projects. Balances of closed projects will be reallocated to other projects according to agreed guidelines. After covering the project costs for 2013, the purpose capital with restrictions increased by NOK 2.9 mill. Purpose Capital with restrictions (microfinance) represents capital earned in the microfinance operations from the second half of 1990 until the first quarter of 2009. In 2009 the capital was formally transferred to Strømme Microfinance AS and its daughter companies.

Note 15 B – Changes in PC with restrictionsSpecification of earmarked contributions / gifts that have either opening or closing balances.

Country / project / donor Rehab. and developm./Northern Sri Lanka/MFA 1 510 222 2 000 000 -2 469 153 1 041 069 Shonglap, Bangladesh/Operation Dayswork - 5 896 904 -4 986 253 910 650 Unspent funds to be returned after the auditShonglap, Bangladesh/Corporate Sector and private donations 1 070 025 1 520 343 -1 441 765 1 148 765 Unspent funds belong to the programmeEducation and community developm./Bangladesh/Eriks Foundation 251 969 2 309 126 -2 409 028 152 067 Belong to the Shonglap ProgrammeSamvad, Nepal/Operation Dayswork. - 3 902 806 -3 442 212 460 594 Belongs to agreed partners/projectsDevelop. programme for girls/Nepal/Geneva Global 150 613 851 406 -925 266 76 753 Unspent funds belong to the programmeSum Asia 2 982 830 16 480 585 -15 673 678 3 789 738 Belongs to agreed partners/projects Region AsiaSavings and credit groups/Uganda/Läkarmissionen 306 412 1 927 749 -1 901 701 332 460 South/south exchange programme/Peace corps 1 521 763 2 316 556 -2,863 858 974 462 Belongs to agreed partners/projectsHoly Trinity Peace Village/South Sudan/School 126 262 227 010 -209 256 144 016 Unspent funds to be returned after the auditEducation/Savings and credit groups/ South Sudan/Eriks Foundation 122 641 1 905 000 -2 002 658 24 982 Belongs to agreed partner/projectFood security South-Sudan/EU – DCA 207 018 199 946 -273 346 133 618 Unspent funds to be returned after the auditInclusion of handicapped in South Sudan / Norad. - 1 620 370 -766 590 853 780 Unspent funds to be returned after the auditNorth/south/north exchange/Sudan / Peace corps - 630 734 -369 404 261 330 Unspent funds to be returned after the auditJamii Bora Kaputiei building/Corporate partners 1 543 901 3 288 910 -961 468 3 871 342 Unspent funds to be returned after the auditChild Restoration Outreach/Sports grounds/ Start Life Support 47 771 470 600 -518 370 - Belongs to agreed partner/projectChild Restoration Outr. Uganda/Schools & events. - 234 001 -69 083 164 917 Belongs to agreed partner/projectMiles 2 Smiles Nursery School, Uganda/corporates and schools - 699 756 -151 039 548 717 Belongs to agreed partner/projectVocational training for women, Uganda/Schools. - 116 769 -37 835 78 922 Belongs to agreed partner/projectSum East Africa 3 875 768 13 637 400 -10 124 609 7 388 559 Belongs to agreed partner/project Region East AfricaAdult literacy/Mali/Waterloo Foundation 237 659 307 936 -314 941 230 941 Speed Schools/Mali/Swiss Co-operation 547 497 2 208 070 -2 755 567 - Belongs to agreed partners/projectsSpeed Schools/Mali/Eriks Foundation 28 829 1 166 492 -1 063 954 131 367 Belongs to agreed partners/projectsSpeed Schools/Mali/Millenium Promise Alliance 75 970 - -75 970 - Belongs to agreed partners/projectsSpeed Schools/Burkina Faso/Kavlifondet 500 000 1 020 000 -1 520 000 - Belongs to agreed partner/projectSum West Africa 1 389 955 4 702 498 -5 730 432 362 021 Belongs to agreed partners/projects Region West Africa Youth culture house/Peru/Corporate partners 299 122 104 475 -403 597 - Healthy local comm. and families, Peru/Copenica - 358 467 -328 987 29 480 Belongs to agreed partners/projectsSum South America 299 122 462 942 -732 585 29 480 Belongs to agreed partners/projects Region South AmericaGeneral Secretary’s disposition / Individual gift 350 511 - -65 359 285 153 Unspecified purpose costs / Corporate partner 45 054 - -45 054 - Reserved for special needsSum Global 395 565 - -110 413 285 153 Awaiting clarification of purpose GlobalTotal 8 943 240 34 924 958 -32 042 729 11 854 950

Note 16 – Fixed assets

Property Business Premises Furniture and equipment TotalCost price 01/01/13 290 000 14 449 700 1 855 726 16 595 426Acquisitions 2013 0 0 262 939 262 939Disposals 2013 4 200 4 200Cost price 31/12/13 290 000 14 449 700 2 114 465 16 854 165Accumulated depreciation 31/12/13 0 7 019 113 1 581 506 8 600 618Book value 31/12/13 290 000 7 430 587 532 959 8 253 547The year’s ordinary depreciation 0 298 092 218 607 516 698Depreciation rates 0 % 2 -10% 20-30 %

Strømme Micro Finance AS (SMF AS) is titleholder for the building site and business premises, with exception of one unit for which SF is the titleholder. SF has an agreed overdraft limit of NOK 2.0 mill on behalf of SMF AS. The security for this is connected to book value NOK 7.3 mill deriving from the business premesis shown above. At the year end we had not made use of this facility.SF also has a credit line of NOK 24 mill for foreign exchange hedging. This is secured on the total property value NOK 7.4 mill plus SMF AS property with a book value of NOK 2.8 mill.

Since SF operates with an accounting principle to expense all equipment under NOK 50 000, the majority of the inventory is not included under fixed assets in the balance sheet. For the same reason, most fully depreciated assets do not appear here. All equipment in the Regional Offices is recorded as project cost.

Opening Balance

2013

Funds received

2013

Funds spent 2013

Closing balance

2013 Type of restriction


Note 17 – Property under developmentIn 2002, the Strømme Foundation took over a property in Lillesand which had been left to us as a legacy gift. The property was valued and entered into our accounts at NOK 2.5 mill. in 2004. SF has chosen to retain the property and seek to regulate it for residential use, and costs have been incurred in connection with creating these plans. The regulation was approved by Lillesand Community Council in December 2010, but there are still challenges with regard to the access roads in the area. SF entered into an agreement in 2010 with Kaspar Stømme Eiendom to create a jointly owned company (Luntevika Eiendom AS) with the purpose of developing the property for sale.

Note 18 – Investments in subsidiares

Strømme Micro Finance AS 10 500 1 000 100 37 329 847 8 732 282 52 210 537 Mimeta AS 26 5 000 65 130 000 -856 439 1 062 888 Total investment in subsidiaries 37 459 847 7 875 843 53 273 425

Strømme Micro Finance AS (SMF AS), with its main office in Kristiansand, is a wholly-owned subsidiary of SF. The company conducts the microfinance activities on behalf of SF and submits its own annual report. In 2013, SMF AS has received refund of project support of NOK 1,0 mill compared to 5.2 mill in 2012.

Mimeta AS, Centre for international culture development, has also got their office in Kristiansand, and is owned together with Vest-Agder County. The company manages SF’s efforts in international culture development. Mimeta got grants of altogether NOK 0.5 mill from SF in 2013 compared to 1.3 mill in 2012.

Note 18 b – Investments in other companies

Hald International Centre SA 200 1 000 33 200 000 93 496 3 754 297 Luntevika Eiendom AS 500 1 000 50 505 000 -184 361 237 849 Total 705 000 -90 865 3 992 146

The joint venture Hald International Centre (HIC) was in 2004 officially registered as a company with limited liability, with its Head Office in Mandal. During 2012 HIC’s legal structure was changed to a Co-operative Society. Strømme Foundation’s share in ownership and votes is 1/3. The objective of HIC is giving courses and training for work within mission organisations, evangelisation and development work, as well as for exchange programmes in different parts of the world. HIC is a Not-for-Profit organisation and cannot give dividends to the owners. HIC is responsible for the Peace Corps grant of NOK 1 850 000 in 2013 for SF’s exchange programme Act Now.

Luntevika Eiendom AS, with office in Kristiansand, is owned in fellowship with Kaspar Strømme Eiendom AS. The company is established for facilitating a commercial sale of the residential housing property in Luntevika, Lillesand. In addition to share capital, SF has covered foundation costs of NOK 5,000. The owners will inject 0.8m capital in 2013.

Note 19 – Inter company outstandingsThe «Loan to daughter company» of NOK 72 210 100 is an interest free subordinated loan to Strømme Micro Finance AS with no repayment schedule.Inter company receivables and debt pr. 31.12.13 and 31.12.12 are related to the microfinance operations.

Note 20 – Investments in current financial assets

Market based shares 30 000 30 000 0 0 0 0 30 000 45 900Primary Capital certificates 953 436 857 324 0 0 84 579 -11 534 941 902 941 903Market based bonds 8 046 155 8 046 155 378 871 0 0 0 8 425 026 8 440 925Market based interest fund 4 124 111 4 124 111 0 -4 124 111 - 0 Total 13 153 702 13 057 590 378 871 -4 124 111 84 579 -11 534 9 396 928,0 9 428 728

Note 21 – Liquidity and Restricted Assets

2013 2012Free funds at the Head Office 26 724 252 9 384 184 Free funds at the Regional Offices 6 451 956 4 531 926 Sum free funds 33 176 207 13 916 110 Employees tax deducted account 496 069 671 510 Project/Grant accounts with restrictions 1 047 061 122 489 Memorial Fund 156 142 150 627 Restricted funds at the Regional Offices 4 438 768 3 978 682 Sum restricted funds 6 138 040 4 923 308 Total 39 314 247 18 839 418

Note 22 – Pension ObligationsThe Strømme Foundation has a pension scheme that is comparable to the State pension fund. For 2013, the scheme covers 32 (33) people. In addition comes the remaining obligation in the phased out regular AFP scheme.

SF has signed an agreement for a new AFP-plan through the Common National scheme of AFP’s. This agreement also applies for 32 (33) people, and in 2013 payments were made both to the old (transition period) and new AFP scheme. In 2010 a statement was issued about measuring and accounting treatment of the new AFP. Till now nothing is decided in regard to how or whether an obligation should be calculated.Actuarial calculations have been applied for calculating the obligations and costs in connection with the payment plans. The following assumptions have been used for the calculations:

2013 2012 Discount rate 4,00 % 3.8 %Expected dividend 4,40 % 4.0 %Salary adjustments / year 3,75 % 3.5 %Yearly G-regulation / inflation 3,50 % 3.25 %Expected pension escalation 2,00 % 2.0 %

2013 2012Cost Price 01/01/13 3 275 809 3 267 477 Additions 2013 13 300 8 332 Write Downs/disposals - - Cost Price 31/12/13 3 289 109 3 275 809 Depreciation 0 % 0 %

Equity in subsidiary 31/12/13

Name Number Nominal value

Owner share

Book value in SF

Equity in the company 31/12/13

Number Nominalvalue

Owner share

Book value in SF

Result in the company 2013

Change in value

Category Cost Price 01.01.13

Book value 01.01.13

Additions 2013

Disposals 2013

Devaluation pr 31.12.13

Book value 31.12.13

Market value 31.12.13


Gross pension obligations at 31.12 calculated at 22 170 060 33 525 21 195 764 138 000- Value of pension funds at 31.12 calculated at -17 108 341 0 -15 500 131 0+ Deferred obligation in case of (loss) / profit -4 495 091 64 089 -5 631 221 1 244= Calculated net pension obligations at 31.12 566 628 97 614 64 412 139 244+ Social Insurance contributions 79 894 13 764 9 081 19 634= Pension obligation as at 31.12 646 522 111 378 73 493 158 878Net over-financing 0 0 0 0Net obligations - Sum 31/12/12: 232 371 646 522 111 378 73 493 158 878The year’s pension accrual 1 716 999 0 1 547 985 0+ interest cost 864 579 4 370 687 769 9 567+ administration cost 130 438 0 122 659 0- Return on capital -642 258 0 -603 921 0= Net pension cost 2069 758 4 370 1 754 492 9 567+ Social Insurance 291 836 616 247 383 926+ Actuarial loss (gain) 232 413 0 176 903 -18 250= Total pension cost 2 594 007 2 178 778 4 986 -7 757

The amount is included in Salaries and personnel expenses in the accounts. (Note 25). Actual yield on the pension funds was 4,5 % in 2013 (6.1% in 2012).

Note 23 – gratuity payments at the regional offices At all the regional offices SF as well as the employees make regular deposits into public gratuity funds. In addition to that, in Asia and East Africa contributions are set aside to make a final payment to employees when they leave. The sum on the balance sheet refers to these two regions. In most cases both SF and the individual employee make contributions according to the local legislation.

In West Africa there is a legal obligation to make a payment on termination, depending on the years of service, that is not included as a liability in the accounts. In South America there are no liabilities above the social security costs already accounted for.

Note 24 – operational costsEven though SF does not present a traditional profit and loss account, the guidelines for charitable organisations require the disclosure of additional information that would be shown if the expenditure were categories by type and not activity. Notes 24, 25 and 26 contain such a breakdown.

Cost type 2012Project support to partners 64 863 319 66 808 687 Salary and personnel costs (Note 25) 32 955 831 30 704 312 Depreciation 30 885 401 529 349 Other operational costs (Note 26) 516 699 30 954 278 Total operational costs 129 221 250 128 996 626

Note 25 – Salaries and Personnel Expenses /other allowances

Secured system 2013

Unsecured system 2013

Secured system 2012

Unsecured system 2012

2013 2012Salaries at Head Office 14 830 874 14 085 342Social Insurance Payments 2 391 278 2 326 165Pension Costs 2 272 137 1 747 199Other Personnel Costs at Head Office 965 312 1 058 320Sum salaries and personnel expenses at Head Office 20 459 601 19 219 038Salaries and allowances at Regional Offices 10 904 754 10 232 755Salary and personnel expenses external programmes 1 591 476 1 254 531Total 32 955 831 30 704 312

The average number of employees at Head Office was 31,5 (30,7). This amounts to 28,5 man-labour years in 2013, compared to 29,3 in 2012. In the Regional Offices the average number was 86 (79,5), equivalent to 85,3 man-labour years, compared to 78,3 in 2012.The total salary cost for the Secretary General in 2013 was NOK 717 046 plus accident insurance cost of NOK 5 641 and pension contributions of NOK 114 484. The Secretary General has no bonus scheme or agreement of benefits in case of dismissal.In Norway SF is obliged to have a pension scheme according to the Compulsory service pension Law. The existing pension schemes fulfils this requirement (Note 22). The Board members have received no remuneration other than travelling costs. With the exception of salaries and travel claims, there are no financial transactions with employees or connected persons in Strømme Foundation in Norway.Outstanding loans to employees in the Regional Offices totalled NOK 165 923 at the year end compared to NOK 40 897 at the end of 2012. These are included in other receivables in the balance sheet. The interest charge for the loans is 5%.

Note 26 – Other operational costs 2013 2012Office costs – Head Office 1 269 921 1 545 956Consultancy/Audit fees, memberships 5 137 165 1 157 982Media, communication, postage, bank fees etc. 1 173 641 2 673 612ICT costs – Head Office 2 645 025 4 211 262Travel costs – Head Office 2 880 792 3 774 829Fundraising campaigns – Head Office 5 533 587 5 165 547Total other operational costs – Head Office 18 640 131 18 529 188 Total office costs – Regional Offices 4 266 631 4 527 757ICT costs – Regional Offices 1 157 500 1 096 030Travel costs incl. vehicles – Regional Offices 3 512 641 3 503 833Total other operational costs – Regional Offices 8 936 771 9 127 620 Office costs – external programmes 1 953 414 1 815 417Travel costs - external programmes 1 355 085 1 482 054Total other operational costs – external programmes 3 308 499 3 297 471 Grand Total other operational costs 30 885 401 30 954 278

25 B – audit fees

2013 2012Statutory Audit Fees 442 978 366 604 Other certification 48 400 35 320 Other advising and assistance 44 300 35 000 Total 535 678 436 924 The fees are stated exclusive of VAT.


Note 27 - Currency hedgingThe net gain on currency contracts materialized in 2013 was NOK 1,5 mill, this is not shown in the accounts. From 2008 to 2013 the total net gain is NOK 10,8 mill.At the end of the financial year, SF had forward currency contracts with a face value of USD 12,5 mill. Of these contracts USD 7.5 mill terminate in 2014 and USD 4,8 mill in 2015. The handling of the security of these contracts is shown in the accounting principles note. The real value of the contracts was NOK 3,3 mill at the end of year. In accordance with the chosen accounting principles, the change in value of the contracts is not shown in the accounts.

consolidated accountsNote 28 – Consolidated salaries and personnel expenses/other allowances 2013 2012Salaries in Norway 16 771 541 14 935 880Social Security, Norway 2 679 559 2 459 667Pension Costs, Norway 2 380 477 1 808 157Other Personnel Costs, Norway 984 876 1 072 165Sum salaries and personnel cost in Norway 22 816 453 20 275 869Salaries and allowances in Regions / outside Norway 13 815 481 13 156 066Salaries and allowances in external programmes 1 591 476 1 254 531Total 38 223 410 34 686 465Audit Fees (exclusive of VAT): Statutory Audit Fees 657 940 553 720 Other certification Fees 53 400 38 420 Other non-audit services 119 590 86 223 Total 830 930 678 363

In addition to the employees stated in note 25, there are an additional 18 employees in the group, 3 of which are in Norway. T he salary of the Secretary General is disclosed in note 25.Fees paid to the auditors for all work in Norway in 2013 were NOK 391 700 excluding VAT. The audit fees in the regions totalled NOK 439 230.

Note 29 – Consolidated purpose activitiesThe total purpose cost in the consolidated accounts are reduced by the total grants of NOK 1.0 mill that was provided by SF to the microfinance activity. These costs are in the consolidated accounts presented as part of “Result Microfinance”.

Note 30 – Investments in microfinanceSF has organized the microfinance activities through the subsidiary group SMF AS. In the consolidated accounts SMF AS is included according to the equity method.

The year’s changes in the Microfinance investments:

2013 2012Book value 01/01 114 767 824 123 579 015Share of result 12 381 121 -3 703 492Currency exchange differences 4 593 501 -4 240 871Change in loan 294 575 -866 829Book value 31/12 132 037 021 114 767 823

Note 31 - Purpose capital (PC) - Group

The years resultFounding capital 3 326 092 3 326 092PC with restrictions (SF projects) 8 943 240 2 911 709 11 854 949PC with restrictions (Microfinance) 87 026 638 11 403 030 4 593 501 103 023 169PC with restrictions (Mimeta) 1 247 564 -566 685 690 897Minority interest with restrictions (Mimeta) 671 765 -299 754 372 011Other purpose capital 53 933 253 11 804 221 65 737 474TOTAL PURPOSE CAPITAL 155 148 551 25 262 521 4 593 501 185 004 572

Purpose Capital 31/12/2012

Purpose Capital 31/12/2013

Currency exchange difference



Independent Auditor’s Report - 2013 – Strømmestiftelsen (Stromme Foundation), page 2

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its financial performance and its cash flows for the year then ended in accordance with the Norwegian

Accounting Act and accounting standards and practices generally accepted in Norway.

Report on Other Legal and Regulatory Requirements

Opinion on the Board of Directors’ report Based on our audit of the financial statements as described above, it is our opinion that the

information presented in the Board of Directors report concerning the financial statements and the

going concern assumption, and the proposal for the allocation of the profit is consistent with the

financial statements and complies with the law and regulations.

Opinion on Registration and documentation Based on our audit of the financial statements as described above, and control procedures we have

considered necessary in accordance with the International Standard on Assurance Engagements ISAE

3000 “Assurance Engagements Other than Audits or Reviews of Historical Financial Information”, it is

our opinion that the foundation’s management has fulfilled its duty to produce a proper and clearly set

out registration and documentation of the company’s accounting information in accordance with the

law and bookkeeping standards and practices generally accepted in Norway.

Opinion on administration and distributions Based on our audit of the financial statements as described above, and control procedures we have



our opinion that the foundation is managed and distributions is made in accordance with law, the

foundations objectives and its constitution as a whole.

Kristiansand, May 15, 2014 PricewaterhouseCoopers AS Reidar Henriksen State Authorised Public Accountant (Norway)

Note: This translation from Norwegian has been prepared for information purposes only.

PricewaterhouseCoopers AS, Postboks 447, NO-4664 Kristiansand

T: 02316, www.pwc.no

Org.no.: 987 009 713 MVA, Member of Den norske Revisorforening

To the Board of Strømmestiftelsen (Stromme Foundation)

Independent auditor’s report

Report on the Financial Statements

We have audited the accompanying financial statements of Strømmestiftelsen (Stromme Foundation),

which comprise the financial statements of the Strømmestiftelsen (Stromme Foundation), showing a

profit of NOK 13 737 840, and the financial statements of the group, showing a profit of NOK 25 262

522. The financial statements of the Strømmestiftelsen (Stromme Foundation) and the financial

statements of the group comprise the balance sheet as at 31 December 2013, and the income statement

and cash flow statement, for the year then ended, and a summary of significant accounting policies and

other explanatory information.

The Board of Directors and the Managing Director’s Responsibility for the Financial Statements

The Board of Directors and the Managing Director are responsible for the preparation and fair

presentation of these financial statements in accordance with Norwegian Accounting Act and

accounting standards and practices generally accepted in Norway, and for such internal control as the

Board of Directors and the Managing Director determine is necessary to enable the preparation of

financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We

conducted our audit in accordance with laws, regulations, and auditing standards and practices

generally accepted in Norway, including International Standards on Auditing. Those standards require

that we comply with ethical requirements and plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free from material misstatement.

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

in the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and fair presentation of the financial statements in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of accounting estimates made by management, as

well as evaluating the overall presentation of the financial statements.

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

our audit opinion. Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the parent

foundation and the group Strømmestiftelsen (Stromme Foundation) as at 31 December 2013, and of


Independent Auditor’s Report - 2013 – Strømmestiftelsen (Stromme Foundation), page 2

(2)

its financial performance and its cash flows for the year then ended in accordance with the Norwegian

Accounting Act and accounting standards and practices generally accepted in Norway.

Report on Other Legal and Regulatory Requirements

Opinion on the Board of Directors’ report Based on our audit of the financial statements as described above, it is our opinion that the

information presented in the Board of Directors report concerning the financial statements and the

going concern assumption, and the proposal for the allocation of the profit is consistent with the

financial statements and complies with the law and regulations.

Opinion on Registration and documentation Based on our audit of the financial statements as described above, and control procedures we have



our opinion that the foundation’s management has fulfilled its duty to produce a proper and clearly set

out registration and documentation of the company’s accounting information in accordance with the

law and bookkeeping standards and practices generally accepted in Norway.

Opinion on administration and distributions Based on our audit of the financial statements as described above, and control procedures we have



our opinion that the foundation is managed and distributions is made in accordance with law, the

foundations objectives and its constitution as a whole.

Kristiansand, May 15, 2014 PricewaterhouseCoopers AS Reidar Henriksen State Authorised Public Accountant (Norway)

Note: This translation from Norwegian has been prepared for information purposes only.

Election committee; 1 January 2014Ansgar Gabrielsen Hilde M. Sæbø Fjeldstad Kurt Mosvold

Editor: Egil Mongstad, Strømme Foundation Lay-out and graphic design: Oddvar Paulsen, Strømme Foundation. All photo: © Strømme Foundation

The board; 31 December 2013Svein Ove Faksvåg (Chairperson) Torhill Selsvold Nyborg (vice Chairperson) Ansgar GabrielsenHege Wallevik Olaf Gundersen Anna Minj Knut Vollebæk

Deputy Representatives Trond M. Backer Cecilie Watne Ann Midttun

Strømme Foundation Board and Council Members 2013

Council members; 31 December 2013Kurt Mosvold (Chairperson) Kristin Andresen Rune Bratseth Ingunn Breistein Elbjørg Dahl Endre Glastad Svein Gunnar Gundersen Eli Beater Hillesund Aase Lill Kimestad Snorre Kjesbu

Strømme Foundation is member of the Norwegian Control Committee for Fundraising.Strømme Foundation is a signatory to the Code of Conduct for the International Red Cross and Red Crescent Movement and NGO’s in Disaster Relief.

For The Strømme Foundation the administration cost in 2013 amounts to 5,3 % off the total expenditure. The Fundraising cost is 12,1 % and the purpose cost 82,6 %. It means that 82,6 % of our total budget is used in our fight against poverty. Out of the amount for purpose cost – we use 84 % for project support internationally. This is program expenses related to our international operations, and money transferred to our international partners. 9 % of the purpose cost is used in Norway for monitoring, development of international programs, auditing, preventing corruption, evaluation and quality assurance.7 % of the purpose cost is used for information work, development education and for public education about development issues

Tor Knutsen Rannveig Rivedal Nilsen Dag Nordbø Njål Sævik Rishi Sethia Jan Oddvar Skisland Erik Solheim Gunleik Seierstad Hilde Strømme Rajeev Srivastava

Administration, Fundraising and Purpose cost, what is behind the figures

HOW WE WORK (PURPOSE)/ 2013

HOW WE USE THE MONEY/ 2013Purpose (82,6%)

International project work (84%)

Administration (5,3%)

Project support/follow-up in Norway (9%)

Fundraising (12,1%)

Information, development work/education - public (7%)

Skippergaten 3/5 • Box 414 • N-4664 Kristiansand Norway Tel +47 38 12 75 00 • Fax +47 38 02 57 10 • Org. no 952 002 139

E-mail: [email protected] • www.stromme.orgwww.strommestiftelsen.no

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SF annual report 2013

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