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Annual Report 2015

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1. Introduction 3 2. ZOA’s context 5 3. Executive’s Report 7 4. Supervisory Board 11

5. Partnerships and Networks 12

6. Organisation 14

7. An integrated approach 17

8. Communication and Funding 21

9. ZOA Worldwide 25

Afghanistan 26 Burundi 28 DR Congo 30 Ethiopia 32 Liberia 34 Middle East Region 36 Myanmar (through CDN) 40 South Sudan 42 Sri Lanka 44 Sudan 46 Uganda 48

10. Disaster Response 50

Nepal 50

Philippines 51

11. Financial Report 53

Main trends 53 Balance sheet 56 Statement of income and expenditure 57 Cash flow overview 59 Explanatory notes to the annual accounts 60 Accounting principles for the balance sheet 61 Accounting principles for the statement of income and expenditures 63 Explanatory notes to the balance sheet 64 Explanatory notes to the statement of income and expenditure 72 Independent auditor’s report 82 Annex A – Comparison real 2015 with budget 2015 and real 2014 84 Annex B – Budget 2016 85

The eyes of the world were directed at the Middle East this year. The Syria crisis is cause for so much suffering and displacement and it challenges world politics as well as humanitarian organisations. The crisis also resonated within our organisation. In early 2015 we opened an office in Amman, Jordan, to coordinate the programmes in the Middle East from there. At the end of the year this premise was fully operational, and able to reach out to five countries in the region and to hundreds of thousands of people affected by violent conflict.

In the Netherlands our constituency responded generously to the outcry of suffering in the Middle East. Not only did people donate massively, many also opened their hearts and homes to welcome refugees who arrived in the

Netherlands. Though the tone of the public debate was sometimes shockingly harsh, I was deeply moved by so many who responded spontaneously and generously.

On the fringe of the world’s attention lay more crises, with millions of people in need, such as in South Sudan, Myanmar, Darfur and Burundi. Together with our donors we were able to stand by them and support them, both with necessary goods and services, as with the assurance they are not being forgotten. God never gives up on them, and that is why we, together with all our donors and partners, can and will continue our work, and not give up.

Thank you for your support and commitment in 2015.

1 IntroductionContents

Yours sincerely,

Johan MooijChief Executive Officer

The storiesJoy and income – Onesta from South Sudan 4 Happy with the bridge – Recovery in Myanmar 9On the run – Awareness raising in The Netherlands 20Urban refugees – Eden from Eritrea 86

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2 ZOA’s context

ZOA’s agricultural programme in South Sudan has great potential. The land is fertile, and the climate is good to grow many crops. However, due to the long lasting civil war, young people have hardly learned how to farm. ZOA’s approach to working with groups also contributes to improved social cohesion. One of the people participating in the programme, is Onesta, who explains about the programme while peeling cassavas.

“Together with a number of female farmers we are an agricultural group, growing cassava on a communal field. ZOA supports and monitors us. Since I am part of this group, a lot has changed in my life.

Before, I had my own garden, and about once every two years there was some harvest. You can imagine I could not live from that. For instance, school fees for my children were impossible for me to pay. So when I was introduced to this agricultural group by ZOA, we were given training on how to grow cassava, and how to increase the yield. We also bought tools together. And indeed, we do harvest a lot more than before. And I earn enough to make a living and to buy everything my children need to go to school. But it is not only the income, it is the joy and satisfaction too. In our own group we have many plans to expand. It is also good to see we have inspired others, and that new groups are starting.”

Joy and incomeWhy we serveInspired by our Christian identity and the biblical message of reconciliation and restoration of a broken world, we serve those affected by violent conflict and natural disasters. We do so by contributing to the realisation of signs of hope and restoration. We see this coming about where people can once again experience peace, justice and mutual trust, and where they regain personal dignity and confidence. We act in line with, and contribute to the biblical perspective of God’s Kingdom, which is to advance reconciliation and restoration to its full potential, as visible signs of God’s call to do justice and be faithful to those who need our support.

ZOA’s missionIn a world full of conflict, injustice, poverty and disaster, ZOA supports those who suffer because of violent conflicts and natural disasters in fragile states, irrespective of race, gender, ethnicity, religion or age. Through our long-term commitment, we attend to the needs of those we serve, at different stages, from

relief to recovery, in a variety of sectors. By working alongside communities, we contribute to signs of hope and restoration, and we ensure people’s dedicated participation in rebuilding their lives so as to have a lasting and sustainable impact. We also call on our constituency and partners worldwide to take responsibility and become involved.

ZOA’s key valuesIn all that we do and at every level of the organisation, ZOA’s staff is united worldwide by a set of common values. We strive to adhere to these values in our attitudes, words and deeds:• human dignity• faithfulness• stewardship• justice

• Start of office for the Middle East Region (see page 36).• Start relief earthquake Nepal (see page 51).• End of programme Dutch Consortium for Rehabilitation 2011-2015 (see page 12).• Start of Dutch Relief Alliance and ZOA leading the Syria Joint Response

(see page 12).• Start of pilots for urban refugees in Ethiopia, Jordan and Afghanistan.• Awareness– and fundraising event ‘On the Run’ in the Netherlands on World

Refugee Day (see page 20).• 16,342 volunteers collecting over € 850,000 for ZOA’s work during the

national door-to-door collection• 5,000 children participating in Walk for Water, raising € 140,000 for water

projects in Afghanistan.• 90,341 bags of the Dutch treat ‘spice nuts’ sold by school children, churches

and others, raising one euro per bag for ZOA’s work.• Total income 2015 (excluding consortia partners’ income): 47,329,797 Euros, an increase of 31% (see chapter 11).

Highlights 2015

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3 Executive’s Report2015 has been a year in which we were able to reach out to ever more people affected by violent conflict and natural disaster. It is a regrettable fact that there is an increasing number of people in need of assistance. However, we are therefore all the more grateful for our loyal donors – from very small to very large - who made financial growth possible and enabled us to offer hope to those who might have otherwise have felt lost and without hope.

Organisational developments 2015To be abIe to respond adequately to current and future crises, we have initiated several organisational developments in order to achieve greater flexibility. An important step was the move towards urban contexts, where nearly half of the worldwide refugee population is trying to survive, often out of sight and out of reach of humanitarian organisations. We started three pilot projects, in Addis Ababa (Ethiopia), in Kabul (Afghanistan) and in Irbid (Jordan), to acquire knowledge and experience. We also joined the Urban Refugees platform, to share our findings and gain access to a knowledge sharing network in this relatively new field.

The opening of a ZOA office in Amman, Jordan, in early 2015, provided many opportunities to connect with a wide

range of stakeholders in the Middle East – (inter)governmental agencies, national and international NGOs and knowledge platforms -, creating more flexibility, stronger cooperation and ultimately better impact on the lives of our beneficiaries. Three regional programmes are coordinated from the office in Amman: in the Kurdistan Region of Iraq, in Yemen and in and around Syria.

Our constituency has donated generously for the people in the MiddleEast who suffer from violence and displacement. During the summer we were approached and challenged by our constituency in response to the influx of refugees into Europe and their suffering. We have considered starting assistance on the European borders, but decided against it. Our knowledge and expertise is on assisting the millions of people who find refuge in cities and camps in their areas of origin. Their needs are huge, so our work continues to be essential. However, we were very aware of the suffering and needs of people arriving in Europe, and we were part of a nationwide appeal from several organisations to support people fleeing war and conflict, whether they are in one’s own city or on other continents.

humanitarian assistance to our target groups, we are partnering with colleague organisations from all over the world – an exciting and motivating experience.

Programmatic developments 2015With the start of the new strategic period 2015 – 2018, peacebuilding became one of the five sectors ZOA is focusing on. Peace is not only the absence of personal and direct violence, but also the presence of justice, social cohesion and mutual acceptance. These aspects require specific attention and will not come about automatically. With the support of Peace Nexus we organised a conference with attendants from all of our programme countries on peacebuilding and the transformative approach, to ensure a shared and well-founded view on peacebuilding. In programming we have been building up experience especially on the issue of land rights. If land rights are not secure, it is a huge barrier in developing sufficient and sustainable livelihoods, and a continuous potential cause of new conflicts.

An evaluation of the Disaster Response Unit, operational since 2012, pointed out that there are many unaddressed humanitarian needs and many opportunities for the organisation to

We were part of the formation of the Dutch Relief Alliance, a unique cooperation of twelve (later fourteen) Dutch humanitarian organisations. DRA-members are eligible for funding from the Dutch Relief Fund available from the Ministry of Foreign Affairs. Since the start of this alliance in April 2015, ZOA participated in several joint responses: the Ebola response in West-Africa, and joint responses in Yemen, Ethiopia, South Sudan, North Iraq and Syria.

We came to the end of the five year programme by the Dutch Consortium of Rehabilitation. This consortium of four organisations (see also page 12) implemented recovery programmes in Liberia, the Democratic Republic of Congo, Burundi, Uganda, South Sudan and Sudan. It has been a challenging but rewarding process to cooperate so intensively. Especially at field level we found opportunities to reinforce each other and work effectively and efficiently towards stability and economic growth in these (post-)conflict countries.

We were very pleased with our membership of the Integral Alliance, a global network of Christian relief and development agencies. Based on our firm conviction that cooperation is crucial for effective

Chapter 3

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expand our work in that direction. Further expansion of the disaster response capacity is therefore planned for 2016.

Our work on the Ebola crisis response has been very important. Liberia was one of the first countries to be announced Ebola free, and our intensive programme aimed at prevention of further spreading and support to people in isolation played a considerable role.

At the end of April we could start relief assistance in Nepal after the devastating earthquake, in cooperation with our partners from the Christian Relief Cluster.

Chapter 7 provides more information on the strategic decisions and programmatic objectives for 2015 – 2018.

Strengthening constituency relationsin 2015ZOA is strongly rooted in a committed constituency base. Our more than 40,000 private donors, companies, Business Ambassadors, schools and churches warmheartedly donate to and pray for our work. Many invest their time and efforts in organising all kinds of campaigns to raise money for our target groups, such as the door-to-door collection and the spicy nut campaign.

To maintain and expand these relationships, we are continuously looking for how we can support and increase

their involvement and commitment. In that sense, the On the Run event, with 173 people living as a refugee for 24 hours, was an impressive new way for participants to experience some parts of a refugee’s life.

Dealing with fraud risks in a complex environmentZOA has a well-developed system of control measures in place, in order to ensure optimally effective and efficient use of resources. We realise that the complex and fragile contexts we work in are often characterised by conflict and extreme poverty, which brings with it an increased risk for misuse of resources. ZOA therefore devotes specific attention to the prevention and detection of fraud and corruption.

A zero tolerance approach to fraud and corruption is followed and we expect that all staff and partners maintain the highest standards of conduct and integrity. In case irregularities are suspected or detected, staff have a duty to report these directly to the Audit and Evaluation department at ZOA Netherlands. The person reporting may decide to remain anonymous and appropriate measures are taken to protect their position.In 2015, nine cases of fraud were reported, of varying nature and volume of resources. Disciplinary action was taken against staff or partners, ranging from a formal warning to termination of contracts and legal action. In a number of cases, part of the damage could be recovered from persons

well informed and provides appropriate platforms for claiming access.

OperationsInsecurity for staff and assets might force us to withdraw from a certain area. We mitigate the risk by maintaining an up-to-date security policy and monitoring systemAlso lack of competent staff might create an operational risk. Making optimal use of local capacities and paying attention to continuous staff development helps mitigating the risk.

FinanceThe risk of funding shortage is mitigated by investing in donor diversification, at the same time reducing dependency on too few donors. Also our 25 percent of own funding makes us resilient for sudden funding setbacks and enables us to pre-finance projects.

Financial reporting and complianceAll country offices fall under supervision of and monitoring by ZOA Netherlands. The Audit and Evaluation department monitors the financial reporting and underlying management systems in the country offices and can discover deviations in an early stage. Staff in the Netherlands has built up specific donor knowledge and supports the country offices in complying to specific donor requirements.

2016 and beyondThe organisational developments as described above – focusing on urban refugees, increasing our peacebuilding programming and expanding the disaster response capacity – will be followed up in 2016.

However, continuation of the programmes depends largely on the availability of qualified and experienced staff who are willing and able to work in fragile and volatile contexts. Seven country directors will end their contract in 2016. Finding suitable replacements and being able to continue the programmes is an important challenge that faces us in 2016. Another aspect in 2016 will be the departure of the current Chief Executive Officer, who has been in office since 2007. The process to find a successor started early 2016.

involved. In one case, a more extensive investigative audit at field level was conducted, involving external and internal auditors.

Analysis of these fraud cases revealed that existing procedures were not always complied with, sometimes pressured by people or situations in the environment, or simply for personal gain. We discuss the results of the fraud monitoring with managers in all ZOA countries, to maintain transparency and to promote alertness for fraud risks in the fragile contexts we work in. In discussions with staff and partners we also pay additional attention to compliance with procedures and to values and ethical dilemmas.

Other risks and mitigation measuresStrategyThe tendency of institutional donors is to work with just a few larger contracts, instead of smaller contracts with a number of implementing partners. It could cause the risk that ZOA is seen as a too small partner. The mitigation measure is to cooperate more and more in consortia, which we successfully do. Another risk threatening the implementation of our strategy is limited access to our target groups, which is a result of our choice to work in fragile contexts. We mitigate the risk by building good relationships and cooperation with governments, and by participating in country networks of similar international organisations, which keeps us

9

For returnees to Myanmar, restarting their lives is not always easy. We are supporting them with infrastructural improvements and vocational training to get back on track. The difference sometimes is between life and death, as Sandi Mya Aung (not her real name) explains:

“My name is Sandi Mya Aung. I live in a small village on the west bank of the Daylo river, together with my son. We used to live on the east side, but when the conflicts broke out, we could not stay there.

We have been on the run for more than fifteen years. Three years ago it was safe enough to go back home. Sadly enough, my husband was not there anymore to come home with us. He died in 2006, after suffering from a serious disease.

Now, together with my son, I am trying to get back on our feet. But it is not easy to live on this side of the river. All of the facilities and services are on the other side of the river, but on the other side there is not enough land to grow food.

To earn an income I was trading crops across the riv-er. It was very dangerous to cross the river, it was a shaky bamboo bridge that often broke. Many villag-ers drowned while trying to cross the river. However, I had no choice. So, we were so glad when ZOA built this sturdy bridge. It is so much easier, faster and safer!”

So happy with the bridge

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4 Supervisory BoardThe Supervisory Board responsible for the supervision of the policies and plans of ZOA and for monitoring the identity of the organisation. In that sense, the Supervisory Board advises and assists the Chief Executive Officer (CEO) in finding an appropriate course of action in line with ZOA’s statutory obligations. The members of the Supervisory Board contribute their expertise from various fields to the best interest of the organisation. Besides their supervisory duty, the members also have more formal responsibilities such as appointing and assessing the CEO and approving the budget and annual report. Moreover, the Supervisory Board represents the constituency of ZOA and represents society within the organisation.

The CEO is the only Managing Board member, and is responsible for the executive decisions and daily management. Through this separation of powers, ZOA meets Dutch governance guidelines for charitable organisations as established in the Wijffels Code which prescribes a proper relationship between ‘management’ and ‘supervision’.

The Supervisory Board met five times in 2015, with the CEO attending. Regular topics such as the annual report 2014, the quarterly reports, meetings with the Works Council and the evaluation of the CEO

In the year 2015, again millions of people suffered from violent conflict, displacement and natural disaster. We are grateful that ZOA was able to provide relief, hope and recovery to so many in need. Especially, the developments in the Middle East throughout 2015 have had a huge impact on the humanitarian sector, on ZOA as an organisation, and most of all on the people affected by these conflicts. The Supervisory Board actively monitored these developments and analysed their consequences for ZOA. The strategy document Signs of Hope 2015 – 2018 outlines a clear direction for the immediate future. However, we will have to continuously contemplate on emerging needs in a changing world and on how to be prepared for adequate response. One of the dilemmas we face is the balance between emergency relief in crisis situations and rehabilitation programmes in post-conflict areas. Without letting go of recovery programmes, the capacity to provide emergency relief is and will be expanded, for instance through the Disaster Response Team and through partnerships with the Dutch Relief Alliance and Integral. As Supervisory Board, we have the formal responsibility to approve the annual budget and to appoint and appraise the CEO. The audit processes were positive and did not reveal any major weaknesses

in the organisation, the internal audit work and risk management system. We are convinced that the income was spent effectively and efficiently. In view of this, the Annual Report 2015, including the financial statements, as prepared by the CEO, was approved as submitted in a meeting on 7 June 2016.

Once more we have been impressed by the commitment of ZOA’s staff, donors and board. We would like to express our gratitude for the difference they have made in the lives of so many. A special word of appreciation for CEO Johan Mooij, who will be leaving ZOA in 2016, is in place here. For nine years he has led this organisation through major internal and external developments, always aiming at better assistance to more people in need. We sincerely thank him for his work and commitment.

Above all we express gratitude to God, who is faithful and gives us the strength to continue this important work. Harry PaulChair Supervisory Board

were scheduled as usual. Specific topics that were discussed are the new strategic plan for 2015 – 2018, the positioning of the organisation in The Netherlands, the ties to the Dutch constituency, the follow-up on the results of the Employee Satisfactory Survey, and strategic partnerships with other NGOs. The Supervisory Board also evaluated the additional offices held by the CEO. In 2015, these additional offices were:• board member of Prisma;• board member of the Bakker –

de Jong Fonds.

The Supervisory Board concluded that these additional offices are compatible with his work as CEO of ZOA.

The audit committee discussed subjects such as the annual report, the audit plan, audit outcome, and annual budget.

The remuneration committee assessed the functioning of the CEO and, based thereon, advised on his salary at the beginning of each year.

The findings and recommendations of the remuneration and audit committees were discussed and decided upon in the general meetings of the Supervisory Board.

In determining the CEO’s salary and additional benefits, the Supervisory Board adheres to the Advisory Scheme for Remuneration of Management of Charitable Organisations (Adviesregeling Beloning Directeuren van Goede Doelen), set by the branch organisation for charities Goede Doelen Nederland, and to the Good Governance code, also known as the Wijffels Code.1

Mr. Jaap Kamphorst en mr. Jan van Putten visited ZOA’s programmes in Sri Lanka.

The members of the Supervisory Board serve for a term of five years and are eligible for reappointment one time. They are selected based on criteria indicated in the general and specific profile of the Supervisory Board. In 2015 the existing vacancy was filled by Mrs. Olij – Haak.

The members of the Supervisory Board receive no financial compensation for their work. They can claim expenses incurred during the course of their duties as Supervisory Board members. The same rules apply to such claims as to those that apply for ZOA employees.

1See Chapter 11, page 81 for more information on the CEO’s salary

Mr. H. Paul MPA• Function in Supervisory Board: Chair,

Remuneration Committee• Period of service: 2010 -2020 (2nd period)• Professional function: Head of Agency

Netherlands Food and Consumer Product Safety Authority

Mr. B. Brand• Function in Supervisory Board: Audit Committee• Period of service: 2008 – 2016 (2nd period)• Professional function: Chair of the

Executive Board of De Meerwaarde Barneveld – a secondary school

Mr. J. Kamphorst• Function in Supervisory Board: Audit Committee• Period of service: 2011 –2017

(1st, extended period)• Professional function: Interim manager

and management consultant

Mrs. Drs. J.J.A. Olij - Haak• Function in Supervisory Board: member• Period of service: 2015 – 2020• Professional function: Chair of Executive

Board of Timon – a youth welfare organization

Mr. B.J. van Putten LL.M• Function in Supervisory Board:

Remuneration committee• Period of service: 2011 – 2017

(1st, extended period)• Professional function: Mayor (retired)

Statement

Report 2015 Members

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5 Partnerships and NetworksThe changing global landscape and rapid dynamics in the humanitarian sector mean that active engagement with the world outside our own organisation is highly important. As ZOA we cannot, and do not want to achieve our objectives of dignified and resilient lives for people affected by conflict and natural disaster on our own. We greatly value our donors, implementing and strategic partners. Both in the field, in the Netherlands and worldwide, we consider partnerships and collaboration essential elements of our work.

We cooperate with other NGOs wherever possible, sharing knowledge and experience on implementation and security, lobbying among policymakers, complementing each other in the implementation of programmes, raising awareness among the public, as well as soliciting for funds.

During 2015, highlights in cooperation were:

Dutch Relief AllianceIn April 2015 twelve Dutch NGOs active in relief settings united in the Dutch Relief Alliance. The Dutch Ministry of Foreign Affairs made available a Dutch Relief Fund of which a total of 120 million Euros is to be spent through this Dutch Relief Alliance during 2015-2017. The new cooperation mechanism contributes to more effective spending of available emergency funding,

and a swifter process once humanitarian crises occur. The following organisations are part of the Dutch Relief Alliance: CARE Nederland, Cordaid, Dorcas, ICCO / Kerk in Actie, Oxfam Novib, Save the Children, Tear, Terre des Hommes, Stichting Vluchteling, War Child, World Vision and ZOA. Later in 2015, Plan Nederland also became a member of the Dutch Relief Alliance. In 2015 joint responses were implemented in Ethiopia, Nigeria, Northern Iraq, West-Africa because of the Ebola crisis, South Sudan, Syria, Ukraine, Yemen, Vanuatu, the Central African Republic and Nepal. ZOA was involved with the joint responses in Ethiopia (El Niño related crisis), Northern Iraq (displaced Yezidis), Liberia (Ebola), South Sudan (civil war), Syria (war affected populations in and around Syria) and Yemen (conflict affected population). End of Dutch Consortium forRehabilitation 2011 – 2015The Dutch Consortium for Rehabilitation ran its programme called ‘Pamoja’ from 2011 – 2015. The programme had a budget of € 63 million. It was a collaboration between four Dutch NGOs, CARE Nederland, Healthnet TPO, Save the Children and ZOA in Burundi, DR Congo, Liberia, South Sudan, Sudan and

Uganda. Together these organisations implemented activities around the provision of basic services, health, livelihoods and community governance. From a results perspective DCR can clearly be called successful. Despite a number of setbacks (mainly logistical in nature, or due to prolonged conflict) practically all programmatic targets have been achieved. Working in a consortium at this scale was a unique experience for ZOA. Many valuable lessons have been learned, in particular in regard to the pros and cons of collaborations at such a large scale, but also about issues to take into account in possible future collaborations. In December 2015 a learning event marked the end of the collaboration.

Membership of Integral AllianceIn September 2015 ZOA became a member of Integral, a global alliance of 23 Christian relief and development agencies, working together to present a more effective response to poverty worldwide. Integral’s goal is to see holistic transformation for more poor people, through providing collaborative opportunities for its members in the areas of disaster management and collaboration and innovation. Its members work in 85 countries, across 40 sectors, and through over 600 partners.

Integral’s main focus is on working together when disasters occurs, and to find opportunities to avoid duplication in the work of its members. ZOA’s membership of Integral offers great opportunities to share knowledge and cooperate when disaster strikes.

Core Humanitarian Standard AllianceZOA was a member of the Humanitarian Accountability Partnership (HAP) from 2011 – 2015 and applied the HAP Standard in the country programmes. In 2015, the HAP Standard together with the SPHERE process standard and the People in Aid code, was combined into the Core Humanitarian Standard (CHS). The HAP as an organisation ceased to exist, and ZOA became a member of its successor, the CHS Alliance. We accepted the CHS standard in our strategic plan 2015 – 2018.

In 2015 we worked on mapping ZOA’s policies and procedures in the light of this newly developed Core Humanitarian Standard. Meanwhile the countries continued to apply the Humanitarian Accountability Partnership Standard, because the CHS had no practical tools available as yet. In 2016 the country teams will start with self-assessments, and a plan will be developed accordingly for which actions have to be taken to become CHS compliant.

National networks• Partos - Association of Dutch NGOs in

international development - Member• Prisma - Association of Dutch Christian

NGOs in international development - Member

• Goede Doelen Nederland - Branch As-sociation of Dutch charity organisations - Member

• Dutch Security Network - Knowledge platform on security of Dutch NGOs in humanitarian assistance and/or devel-opment aid - Member of the Steering Committee

• AgriProFocus - An international network with Dutch roots that promotes and drives farmer entrepreneurship among farmers and their organisations. - Member

• Platform Humanitarian Action Nether-lands - Platform of Dutch NGOs active in emergency relief - Participant

European networks• EU-CORD - Platform of European Chris-

tian NGOs in relief and development - Member, and ZOA’s CEO is member of the Board

• VOICE - Voluntary Organisations in Cooperation in Emergencies; the main NGO interlocutor with the EU on emer-gency aid and disaster risk reduction - Member

• CONCORD - European NGO con-federation for relief and development - Member

• ICVA - International Council of Vol-untary Agencies. A global network of NGOs that advocates for effective and principled humanitarian action in coor-dination with UN agencies - Member

International networks• ECOSOC - Economic Social Council of

the United Nations - Special Consulta-tive Status

• CHS Alliance - Humanitarian and development actors working on quality, accountability and people management initiatives. Merged from People in Aid, Humanitarian Accountability Partner-ship and SPHERE - Member

• Integral Alliance - Global alliance of Christian relief and development agen-cies - Member

• Urbanrefugees.org - Global network of academics and NGOs helping the humanitarian community to adapt to the challenges of protecting refugees in cities - Member

Partnerships• Dutch Relief Alliance - Cooperation of

Dutch NGOs in humanitarian action. • IS-Academy on Human Security in

Fragile States - Collaborative research project between Disaster Studies at Wageningen University and the NGOs Cordaid, ICCO, Netherlands Red Cross, Oxfam Novib and ZOA.

• Christian Emergency Relief Cluster - Cooperation between Dutch Christian aid organisations Dorcas, Tear, Red een Kind, Woord en Daad and ZOA.

• Dutch Consortium for Rehabilita-tion - ZOA was the lead agency for this consortium of Save the Children, CARE, HealthNet TPO and ZOA, funded by the Dutch Ministry of Foreign Affairs, imple-menting rehabilitation programmes in six African countries from 2011 – 2015.

• Consortium of Dutch NGOs - ZOA and Red een Kind cooperate through this consortium in Myanmar.

• Walk for Water Steering Committee - Together with Aqua for All, AKVO, Simavi and Amref Flying Doctors, organ-ising ‘walk for water’ fundraising events in Dutch primary schools.

Memorandum of Understanding• World Renew - Canada / United States

of America• Medair - Switzerland• Stromme Foundation - Norway• CASA - India

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Organisational structureZOA’s formal, statutory name is ‘Stichting ZOA’, with the Dutch word ‘stichting’ meaning ‘foundation’. Its domicile is in Apeldoorn, the Netherlands. ZOA has twelve branch offices, in the eleven programme countries in Africa, Asia and the Middle East, and one in the Philippines.Each country organisation has its own Country Management Team. The teams operate largely autonomously, enabling them to accommodate local developments, however, within an agreed organisational strategy and annual planning.

ZOA Netherlands supports the country organisations with policy cohesion and continuity, quality control, exchange of knowledge, financial management, fundraising, communication and staff recruitment.

The International Management Team consists of the management team of ZOA Netherlands, combined with all country directors, including the director of the Disaster Response Team. They meet twice annually, during the Interregional Meetings in March and October.

ZOA’s Audit and Evaluation department assesses all staff related processes, programme and project design, as well as

6 Organisationsystems for monitoring and evaluation of project progress and results, as part of ZOA’s integral auditing.

StaffIn 2015, ZOA Netherlands employed 69 people (approximately 58 fte), with a male-female ratio of 49/51. There were 41 expats (trainee and junior staff excluded) working in fourteen countries in 2015. In total ZOA had 883 staff worldwide.

VolunteersVolunteers are an integral part of the organisation and add considerable value. Voluntary commitments come in various forms, from volunteering during a single event, teaching at schools, organising the door-to-door collection, working at the office on a regular basis, to unpaid internal audits in the programme countries offered by an accountancy firm in our constituency.

Volunteers who work in the office on a regular basis are given a volunteer contract. Remuneration depends on the situation, from for nothing, to a bouquet of flowers, to a volunteer compensation of maximum 150 Euros per month or 1,500 Euros per year.

Quality standards and codesZOA has committed itself to the following codes of conduct and standards:• Code of Conduct for the International

Red Cross and Red Crescent Movement and NGOs in Disaster Relief

• Core Humanitarian Standard• The Good Governance Code for

Charities (Wijffels code)• The Goede Doelen Nederland code

of conduct (formerly the VFI code of conduct).

ZOA’s system is compliant with the ISO 9001:2008 standard for quality management systems. ZOA holds the certification mark of the Central Bureau of Fundraising (CBF).

Additionally, ZOA commits itself to its own internal ZOA Code of Conduct, including the ZOA Child ProtectionPolicy. These staff codes describe standards of behaviour and promote good practice.

In 2015, ZOA also established policy and procedures on ethical relations with corporate donors, to ensure that commercial activities of corporate donors do not conflict with ZOA’s values and standards, and do not negatively impact our target group, for instance socially or environmentally.

Volunteers who are active during events, in teaching or organising the door-to-door collection are supported and motivated through personal contact with account managers.

Statement of accountabilityZOA subscribes to the following principles:• Within the organisation, supervision

(adopting or approving plans and carefully reviewing the organisation and its results) is kept separate from governance i.e. execution.

• The organisation continuously strives to allocate resources optimally so to enable ZOA to operate effectively and systematically in achieving its objectives. This is set forth in our quality and control model.

• The organisation aims to optimize relations with stakeholders. ZOA focuses on information provision to gather and register wishes, questions and complaints. Both in the Netherlands and in the areas where ZOA operates, the entire organisation is in constant contact with stakeholders to make ZOA’s work possible.

The detailed statement of accountability can be found in full on our website www.zoa.nl (in Dutch).

Organisational chart

ProgrammeCountries

Afghanistan

Myanmar (CDN)

Burundi DR Congo Ethiopia

Sri Lanka Sudan South Sudan Uganda

Liberia

CEO

Management Support

Audit and Evaluation

Funding, Awareness Raising and

Communication

Human Resources

Finance

SupervisoryBoard

Programme Support Unit

Fundraising and Awareness Raising

Communication and Fundraising

Support

Institutional Donors & Partners Finance and IT Finance Support

Philippines Nepal

Disaster Response Team

Middle East

Programmes

The Works CouncilThe Works Council represents ZOA staff members with a Dutch employment contract and advocates theirinterests. The Works Council regards members of the management teams in the programme countries asconstituents as well, regardless of whether they hold Dutch or local employment contracts.

The Works Council has the right to be informed on issues concerning the organisation, as well as the right to approve or reject measures concerning staff policy. In other aspects it has an advisory role.The Works Council consists of six members. Four are employed at ZOA Netherlands, two work abroad (Sri Lanka and Ethiopia).

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7 An integrated approachToday’s complex issues cut across sectors and geographies, resulting in an overwhelming scale of natural and human-made disasters, increasing vulnerability and fragility, more problematic operating environments, and an increasingly constrained funding landscape.

ZOA works in countries known as fragile states, where the government’s institutional and technical capacities are limited. These fragile states are more vulnerable to internal and external shocks than more stable countries. The number of devastating crises worldwide is increasing, especially affecting the countries involved and their inhabitants.

Fragility, as understood by ZOA, is characterised, in different degrees, by the following elements: • States lack authority due to which they

cannot assure basic security, rule of law and justice;

• States lack or have limited legitimacy and representation;

• States are not willing or able to provide adequate basic services to its citizens, particularly to the most vulnerable;

• Local civil societies have limited capacities and humanitarian space is restricted.

Within the category of countries affected by fragility, ZOA specifically focuses on countries with conflict-related fragility.

A dual mandateWe have a dual mandate, providing both relief and (early) recovery to the people we serve. In the complex environments we work in, emergency relief and rehabilitation sometimes take turns or even exist next to each other. Our overall approach is deeply entrenched in our drives and values, and characterised by a long term commitment to the people we serve.

Our work at community level is facilitated by our local presence in all the areas in which we work. This enables us to have direct contact with those we serve and build sound knowledge of, and sensitivity to the specific context, culture and dynamics between the actors present. It also enables us to work with relatively small and weak local organisations and governments. We can strengthen the capacities at local level, while at the same time learning from their insights and experiences.

Our guiding principlesIn 2015 we started working in accordance with our new strategy document Signs of Hope 2015 – 2018. Our developed strategy builds on lessons learned, and integrates clear choices with a flexible, innovative and open focus that allows us to adjust to changing circumstances.

Key principles in our relief and recovery approach are: • Inclusion; within our target group, we

include all people affected. • Ownership; we work side-by-side

with communities to support them to develop their own strategies to increase their independence and build better futures.

• Participation; we ensure the active involvement of all people affected in the different stages of the programme.

• Accountability and transparency; we show who we are, what we do and how we do it, and demonstrate that we do what we promise.

• Sustainability; we strive to employ lasting interventions that do not negatively affect the communities or the planet we live on.

• Do no harm; we seek to work in a conflict-sensitive manner, so to prevent unintended negative consequences to relationships and long term development processes.

Positive change at community levelIn essence, ZOA works to ensure positive change at community level by supporting women, men, girls and boys to realise dignified and resilient lives. To achieve that, we focus our attention on realising the following specific goals: • Sustainable access to basic services and

resources. ZOA supports communities in attaining lasting access to basic services and resources, such as water, education, health care, infrastructure, public security, a decent living environment, income, food, shelter and clothing, which are crucial for living dignified and resilient lives. We are aware that we cannot contribute to ensuring all basic services and resources. However, through the five sectors we work in, and by using different implementation strategies, we strongly believe we can make a significant contribution.

• Good community governance. Good governance is essential in order to minimise corruption, ensure that the voices of all are heard in decision-making and to hold decision makers accountable. By following our six guiding principles, we try to reach the entire community, especially the most vulnerable, and truly respond to the needs of all its members. However, ZOA plays a supporting role in this process. In the end, in order to realise

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lasting change, efforts need to be driven by the community and its members themselves, by the (local) governments and by the other actors present. • Peaceful and stable communities. Social

disintegration, scarcity of and unequal access to resources, gender inequality, tribal conflicts, cultural differences, and poverty can all lead to conflict, and deny people the chance to lead dignified and resilient lives. To improve the situation, it is crucial that underlying and root causes are tackled. Through our work in the five sectors, we address these causes and enable communities to resolve their conflicts without resorting to violence and so build peaceful and stable communities.

Our sectorsTo achieve the three goals, a range of interventions in various sectors can be applied. To be effective and efficient, we limit ourselves to five sectors, in which we have developed specific and extensive expertise. The emphasis on these sectors changes throughout a programme, due to our dual mandate of relief and (early) recovery.

Livelihoods and food security To enable people to provide for their needs. We focus on four

main areas: generation of income, market support, agricultural production, including livestock, and conditions for rural and urban economic development.

Water, sanitation and hygiene Essential for living healthy and dignified lives. However, these

are often public facilities and therefore prone to social dynamics and even conflicts at community level. Additionally, the sector is highly vulnerable to external factors such as climate change and environmental degradation. We implement an integrated approach, not only taking into account the needs of the different stakeholders, but also the social, economic and ecological factors that play a role.

Basic educationBesides being a basic need and right, literacy and numeracy

are also important preconditions for community governance and economic development, and brings people from different background together. It therefore significantly contributes to our other sectors. We therefore focus on basic education, both formal and informal, which includes primary education, lower secondary education, functional adult literacy and numeracy, and vocational training.

Peacebuilding Peace is not only the absence of personal and direct violence,

but also the presence of justice, social cohesion and mutual acceptance. By applying a conflict transformation approach, we aim to transform attitudes,

behaviour and (local) causes of conflict, instead of only mitigating or resolving conflicts. Changing the conflict dynamic is necessary for a community to be resilient and to disengage from wider conflicts. Our relief programmes, however, will limit ambition to the ‘do no harm’-approach. Their limited time frame (maximum of three years) and specific character does not always permit aiming at wider peace-building goals.

Shelter ZOA may engage in shelter support, often during

emergencies. In the longer run, there is often a need for transitional shelter: a basic form of shelter that provides protection, privacy and safety. We strive to make the design either re-usable or expandable. We may also provide assistance in repairs to permanent houses.

A broadened horizon 2015 - 2018Building on our knowledge and experience from the past, in the strategic period we broaden our horizon within each of the sectors, by on the one hand concentrating more on the social aspects within each sector, and on the other hand focusing on relevant issues that originate in the complex global challenges the world faces today. Due to the heightened relevance of peace-building within the contexts in which we work, we will increase our efforts to work towards peaceful and stable communities. That is, among other, made

visible in the fact that peace-building now is one of our sectors, while before it was not mentioned as such.

We will also increase our efforts on economic development, with a special focus on vocational training and adult literacy interventions, and on land tenure systems and land rights. Our work in urban areas will also receive more emphasis, and we will develop a specific ZOA-approach to assist the forcibly displaced in these settings. In the current context of rising number of crises, either by natural or human-made disasters, emergency response is becoming more pressing. We will expand our disaster response capacity, and strengthen our position as an effective and reliable emergency relief organisation.

Finally, we will intensify our attention for our constituency. We will connect them to the people we serve through our publications and events, and will enable them to be more involved. We will also raise awareness of the underlying causes of inequality and conflict, the position and conditions of the people we serve, and the influence of our daily behaviour on the lives of ZOA’s target group.

Our cross-cutting issuesThe people we serve are confronted with a variety of common issues that go beyond specific sector areas of attention. ZOA pays specific attention to two such

issues: gender and disaster risk reduction. These cross-cutting issues are vital to the realisation of dignified and resilient lives and to achieving specific goals and programmatic results, and therefore need to be mainstreamed throughout the programmes.

Regarding gender relations, in 2015 we have paid special attention to our organisational standards, considering that the gender balance in management positions was weak. Based on the conviction that diverse teams generally speaking are better equipped, a working group at ZOA Netherlands has looked into existing perceptions and possible directions to achieve gender balance, and has made recommendations. These recommendations will be followed up in 2016. The process has already led to the first female member of the Management Team in the person of the new Head of Fundraising and Communication. The number of female country directors has also risen from one in 2014 to three in 2015.

Raising awareness, connecting peopleAwareness raising is defined as ‘being moved by victims of conflicts and disaster, gaining understanding of the context they live in, and getting into action to help them’. This definition makes clear that awareness raising goes beyond providing information, and that the objective is to really touch the hearts

and minds of people in the Netherland and provide them with opportunities to help. ZOA wants to facilitate an ongoing and sustainable connection between our constituency and the people we serve. Important to note is that the connection is not aimed at a connection with ZOA, but at connecting people in the Netherlands to victims of armed conflict and natural disaster. However, ZOA can be a ‘tool’ for people to come into action on causes that are important to them, with ‘action’ being a broad term, varying from donating to volunteering to prayer.

In 2015 we developed several possibilities for people to come into action for refugees. For example, a training centre for Dutch Christian women has been connected to a project for teenage mothers in East Congo, and the Driestar high school has for more than ten years been connected to educational projects in Uganda. In a Facebook chat session with the country director of the Middle East office, people in the Netherlands could directly communicate with our staff. We also participated in a prayer application – iPray2Day – offering people a weekly prayer point for our target group and/or colleagues. Moreover, we are providing several opportunities for volunteering – for many volunteers it is satisfying that they contribute their time and knowledge and keep costs for ZOA low, so more can be spent on projects.

People only feel the drive to act if they are aware of the situation of refugees and IDPs. Therefore, several fundraising activities are combined with awareness raising activities too, such as Walk for Water at primary schools, focusing on the importance of clean drinking water and responsibility of careful use of this scarce resource, and the spicy nuts campaign, focusing on food security for our target group. A new event on World Refugee Day 2015, was ‘On the Run’. During 24 hours participants could experience how it is to be a refugee. Participants were sponsored by family and friends for at least 50 Euros per person – but on average much more. The experience also illustrated certain aspects of refugee life: dependency, insecurity, boredom, and loss of control. It was only 24 hours, but these intense experiences resonated clearly in the reaction of the participants afterwards.

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On World Refugee Day 2015, ZOA organised a 24-hour event, called On the Run (in Dutch: Op de Vlucht). From 5 pm on Friday to 5 pm on Saturday, 172 participants faced the challenge of experiencing what it is like to be on the run. Though it is never possible to imitate life-threatening circumstances and mortal agony, other aspects made a huge impression on the participants.

“It was tough. It was tough waiting for 105 minutes to get a stamp. To lose personal possessions. It was tough spending the night in a ramshackle tent, being cold and wet. It was desperate, boring, I was hungry and felt the threat of things that might happen. It was confronting to realise that for millions of people this is not a 24-hour experience, but years of reality,” as a 26-year old participant explained.

Another participant, 44 years old, said: “Once we were in the ‘camp’, we were relieved. But not for long, because we were intimidated by officials and soon enough we realised not all refugees were to be trusted.” “I felt fear, grief, some anger and total powerlessness. The guards shouted in my face and I was too afraid to do anything,” a 17-year old teenager summed up her emotions adequately.

The objective of this event was to raise awareness, and we were pos-itively surprised by the reactions we received afterwards. Many of the participants started to do volunteering work with refugees in their local communities, with ZOA, and/or became donors. Others reported that they had experienced a change in attitude towards asylum seekers and refugees.

On the run – experiencingthe life of a refugee

8 Communication and FundingCommunicationCommunication with ZOA’s stakeholders is a challenging but satisfying task. It is challenging because our stakeholders are located in many different countries, each with their own languages, and from a wide range of professional and personal backgrounds. It is also satisfying, because we are blessed with very committed and motivated people and organisations: staff, beneficiaries, private donors, institutional donors, schools, churches, governments, beneficiaries, partner organisations and suppliers. They all are - in one way or the other – committed to ZOA’s cause of working towards dignified and resilient lives for people affected by conflict and disaster. We are excited to be connected with all these different groups and to involve them in our work.

Communication with beneficiaries is of course crucial and requires capability from staff and a well-considered approach from the very beginning. Besides our local presence and intensive manner of cooperating with people in the communities, we adhere to the accountability principles as formulated in the Core Humanitarian Standard (before the Humanitarian Accountability Partnership). That means clear explanation of the organisation, the objectives of the intervention, and clear communication

and complaint channels, accessible to anyone in the community.

Communication with governments and (local) partners is mainly the responsibility of the country teams. Account managers in ZOA Netherlands build and maintain relationships with institutional donors, in order to inform them on the progress and results of the funded programmes, as well as to comply with the requirements of every specific donor. The international website is supportive to these contacts, in providing organisational information and our track record.

Communication with staff, including office volunteers is provided through a weekly internal newsletter, sent from ZOA Netherlands, with programmatic and personal input from all other offices. The aim is to engage staff worldwide with the organisation and to share knowledge on donors or sectors. Programmatic successes and challenges are also shared, as are personal situations for prayer.

Communication with our private donors in the Netherlands is done through a monthly email newsletter, a bi-annual ZOAmagazine, our website, Facebook and Twitter, and face-to-face through events and constituency meetings. Volunteers also receive the ZOActief newsletter twice

a year, and they each have their personal contact persons.

Both Christian and secular media know where to find ZOA if a crisis situation occurs in one of our programme countries. During 2015 we communicated in newspaper specials on World Refugee Day (June 20) and International Children’s Rights Day (November 20).

Complaints ZOA has a formal procedure for dealing with complaints from Dutch constituents. In general we will try to respond by telephone, because we strongly believe in the power of personal contact. We also believe that people complain because they are committed to our mandate, so we take the opportunity to learn from complaints. Explanation of a situation, swift resolution of a problem and apologies in case of mistakes can usually satisfy the concerns of the complainer. In 2015 we registered 58 complaints, a substantial decrease from the year before with 123 complaints. The major reason is accurate address database maintenance that is now bearing fruit.

FundingZOA is grateful to receive funding from many donors, large and small. Together we can reach out and support so many people in need. We have several funding channels.

One is institutional donors, such as the Dutch Ministry of Foreign Affairs, other governmental donors from Australia, the United States of America and the United Kingdom, EU-donors EuropeAid and ECHO, and United Nations agencies such as the UNHCR, WFP and UNICEF.

As the lead agency in the Dutch Consortium for Rehabilitation and the Syria Joint Response, during 2015, ZOA was legally responsible for the funding received for the consortia partners as well. The funds were received for these partners and subsequently transferred. In 2015 this was the case for 17.3 million Euros in total. Therefore, from the total income of 64.7 million Euros, 47.3 million is income to be spent by ZOA itself. That means a significant increase of 11.3 million compared to 2014.

Another funding channel are the so-called ‘third parties’. These are external fundraising organisations such as Deputaatschap Bijzondere Noden, EO-Metterdaad and Happy Gift. This funding channel saw a decrease in 2015, mainly because two ‘third parties’ did not contribute in that year.

The third funding channel are our private donors in (mainly) the Netherlands: individual donors, business ambassadors,

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churches, schools, funds and companies. They are committed in several ways. Many people donate monthly or quarterly; others donate according to the needs and requests they receive through mailings. Churches organise collections, schools organise fundraising events, companies donate part of their profit or donate on the occasion of an anniversary or the opening of a new plant. At the end of March, a huge effort by some 700 volunteers throughout the country enables a door-to-door collection, implemented by about 16,600 collectors. Besides the immense amount collected – 845,000 Euros in 2015 -, it is a moving experience to see so many people come into action for victims of violent conflict and natural disaster. In the second half of the year the annual spice nuts campaign was an immense success, this time with more schools participating than ever. Thousands of enthusiastic pupils succeeded in selling out the entire stock two weeks before the actual end of the campaign. Revenues neared 100,000 Euros.The income from own fundraising increased considerably, from 8.4 million in 2014 to 11.1 million in 2015. Partly it was the emergency campaigns for Nepal and Syrian refugees that were responsible for an increase in income, but also reconstruction projects and non-earmarked donations increased. We were very grateful to receive several legacies, of which the amount doubled in 2015.

In 2015, the cost of own fundraising (the ‘CBF-percentage’) decreased significantly from 17.5% in 2014 to 13.4% in 2015. While maintaining the same level of expenditure we were able to realise significantly higher income.

Emergency campaignsIn April we started an emergency relief campaign for the victims of the earthquake in Nepal, together with the other members of the Christian Emergency Relief Cluster.

Mid 2015 news reached us that the World Food Programme could not provide Syrian refugees in Jordan with food aid any longer, due to shortage of funding. We were able to start a funding campaign for food, and could provide 1,760 families with food packages.

In August the news in Europe began to be dominated by refugees arriving in southern Europe, crossing the Mediterranean Sea in horrible and dangerous situations. Heart-breaking footage touched the hearts of millions across Europe, and many came into action in a very practical way. ZOA decided not to start humanitarian assistance in Europe, but to keep on calling attention for those people in dire situations far from cameras and European borders. We participated in the campaign with the partners in the Christian Emergency Relief Cluster to call for support for refugees, wherever they were.

Our constituents responded generously and from the heart, thus providing in the needs of many. For that we are exceedingly grateful.

Chapter 8

Expenses ZOA 2015

Income ZOA 2015

Spent on objectives: 92,9%Fundraising costs: 4.2%Costs of management and administration: 2.9%

Project grants from institutional donors: 73.2%Income own fundraising: 23.4%Income from third party campaigns: 1.3%Other income: 2.1%

92,9%

4,2%2,9%

73,2%

23,4%

2,1%1,3%

24

Afghanistan

DR Congo

Sri Lanka

Sudan

Middle East

South Sudan

Burundi

Liberia

Ethiopia

Myanmar Philippines

Nepal

Uganda

9 ZOA Worldwide 25

2726

Supporting IDPs in a harsh environment

Since 2002, millions of refugees have returned to Afghanistan from Pakistan.

And that at a time when Afghanistan is extremely unsafe due to continuous fighting between armed opposition groups and government forces. As a result, many Afghans are now displaced within the country.ZOA supports these IDPS as well as those who live in the communities where they have sought refuge . In Sar-e Pul and Jawzjan ZOA supports IDPs who have fled conflict, as well as the host communities with a water, sanitation and hygiene project. Besides providing safe drinking water, the promotion of hygiene and sanitation makes a huge difference in the lives of these people.People in Jawzjan were badly affected by spring floods in 2014 and 2015. Many lost their homes as a result. Through a shelter construction project ZOA was able to provide people with shelter in a harsh and hostile environment.

Peace building is a major part of ZOA’s work here as well. Through peace building projects funded by the Dutch Ministry of Foreign Affairs, men, women and youth learn to apply methods for peaceful conflict mitigation.

Refugees tend to move to urban areas, where they have greater opportunities to find work and where they have access to health care, education and other basic services. ZOA has started the Urban Refugees Project to help these refugees settle. As part of that project, participants acquire marketable skills that allow them to better support themselves and their families.

It is expected that fighting will increase in the coming year, with an increase of displacement as a result. As these displaced people tend to move more and more to the larger cities, ZOA’s approach will shift partly to the more urban zones.

ZOA Afghanistan

Shelter (Jawzjan)

WASHLivelihood and food security

In cooperation with

With funding fromDutch Ministry of Foreign Affairs, USAID, Ministry of Rural Rehabilitation and Development (MRRD / Afghanistan), other, ZOA Netherlands, EO-Metterdaad.

Community Development Committees, SDO, AREA, AWEC, ARPD, AOAD, ADVS, PAC, OSID, SHPOUL, PESCO.

Programme areas and target groupsNorthern Sar-e Pul and Jawzjan provinces, targeting conflict IDPs and host communities as well as flood affected IDPs.

The Kabul area, targeting urban refugees with the Urban Refugee Pilot project and the partner support project.

Southern province of Uruzgan, targeting conflict IDPs and host communities, as well as poor and vulnerable rural communities.

Expenditures 2012 4,348,014

2013 3,561,685

2014 3,091,929

2015 2,954,122

Number of staff as of 31 December

2012 161

2013 233

2014 174

2015 68

Sectors

Sar-e Pul

Pakistan

Iran

Jawzjan

Uruzgan

Kabul

since 2000

Peacebuilding(Jawzjan and Sar-e Pul)

Gender

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2928

Contributing to peace in instable Burundi

Burundi faced increased instability during 2015, the national economy

was hit hard, and everywhere people were affected by threat of violence. Due to the political crisis, the farmer associations in Cibitoke encountered shrinking commercial opportunities and the cross-border activities with the Congolese ZOA program area had to be modified.

Despite the situation, the stories of progress and success at the community level are numerous and encouraging. In Cibitoke an active peacebuilding program involving the political youth groups contributed to peaceful elections in the province. During 2015, ten local peace committees in Cibitoke were active and resolved many civil conflicts, and households reported fewer on-going conflicts which is an encouraging trend. A seed multiplication centre and its irrigation system were rehabilitated and it promises to be self-sufficient very soon. Community roads to the Congolese border were rehabilitated and administrative buildings constructed to

encourage trade and cooperation between Burundi and DR Congo.

In Makamba the registration of 40,000 pieces of land in the 39 villages progressed well. Land tenure registration not only reduces conflict within and between families, but also encourages small-hold farmers to invest in their land knowing that their tenure is secure. The increase in agricultural production due to a five year project to improve small-holder farmer skills continued into 2015. We were pleased to see the seed-multiplication centre that we supported since 2012 became self-sustaining in 2015.

In 2016, ZOA Burundi will open a new program area in Rumonge. We will continue the support of small-holder farmers, focusing on increase of productivity and reduction of land tenure conflicts, and expand the program with WASH-interventions in schools and public places.

ZOA Burundi since 2010

Peacebuilding

Basic education Livelihood and food security

Shelter (Cibitoke only)

Programme areas and target groupsMakamba, targeting returnees and host communities, among them small-hold farmers, farmer associations andland owners.

Cibitoke, targeting communities affected by violence and displacement, and specifically vulnerable women and youth, small hold farmers and farmers associations.

Expenditures 2012 622,869

2013 1,377,750

2014 2,477,905

2015 3,052,709

Number of staff as of 31 December

2012 82013 21

2014 35

2015 32

Cibitoke

Makamba

Bujumbura

In cooperation with

With funding fromDutch Ministry of Foreign Affairs, Royal Netherlands Embassy Burundi, World Food Programme, International Fertilizer Development Center (IFDC), NWO-WOTRO Science for Global Development, ZOA Netherlands, ZOA Business Ambassadors, Stichting Pharus, Stichting Majoh.

Miparec, Réseau Burundi 2000+, CONSEDI, PREFED.

Sectors

Chapter 9Chapter 9

DR Congo

3130

Peacebuilding at grass roots level

Since 2008 ZOA supports returned refugees, IDPs and host communities

to rebuild their lives. ZOA’s beneficiaries face many challenges. The country is still extremely fragile, with armed groups and government forces fighting for control, especially in the eastern part of the country. Tensions run high as the country prepares for presidential elections in late 2016.ZOA supports beneficiaries at grass roots level to live together peacefully, by supporting peace committees in Baraka and the Ruzizi Valley which resolve community level conflicts.

Life in the DRC is especially challenging for children and youth. Due to lack of food and clean water, the morbidity and mortality rate of children under the age of five is very high. Older boys who have missed school due to conflict, and who are now unemployed, are at risk of being recruited by armed groups, whereas girls are often forced to marry. Child mothers suffer from poverty and discrimination.

ZOA focuses on the most vulnerable: children, child mothers, youth and small hold farmers.Small hold farmers struggle to grow crops as the quality of farmland is poor, they have access to neither fertilizer nor good quality seed. These farmers are also badly affected by climate change which causes drought, floods and irregular seasons.ZOA supports farmers to improve productivity and introduces models of good governance to farmers’ associations. In these associations farmers learn to collaborate and trust each other by managing barns together.

ZOA Republic of Congo since 2008Democratic

Programme areas and target groupsSouth Kivu - Baraka and the Ruzizi Valley, targeting small hold farmers and farmers’ associations. In Baraka also children who have missed primary school due to conflict. In the Ruzizi Valley also unemployed youth and child mothers. North Kivu - Lubero and Kasindi, targeting small hold farmers and farmer’s associations. In Lubero also unemployed youth. In Kasindi improving the nutritional status of malnourished pregnant and lactating women, as well as toddlers.

Expenditures

2012 2,483,735

2013 2,987,476

2014 2,890,723

2015 3,731,241

Number of staff as of 31 December

2012 41

2013 62

2014 54

2015 60

In cooperation with

With funding fromDutch Ministry of Foreign Affairs, ZOA Netherlands, ZOA Business Ambassadors, Turing Foundation, 4U2 Develop Foundation, EO-Metterdaad.

Fizi: ASMAKU, BDR, CEPAC-FIDA, GEADES, CEPROF. Lubero Beni: ACPDI, APADER, CADIMR, CEAPRONUT, COOCENKI, EPVI, SOFEJEP, SYDIP. I Uvira: ADED, IJED SANGE, ASCODER.

Sectors

Peacebuilding

Basic education(Baraka)

Livelihood and food security

Chapter 9Chapter 9

KinshasaSouth Kivu

North Kivu

Angola

3332

Supporting vulnerable conflict-affected

No other African country has had such a large influx of refugees in the last few

years as Ethiopia. Currently there are over 700,000 refugees. Protracted crises in Eritrea, Somalia and South Sudan draw refugees to camps in Ethiopia, among them many unaccompanied minors.

At the same time, the Ethiopian population is often deprived of proper basic services. The needs of IDPs, refugees and host communities alike are very high. Food and water are scarce or unattainable, especially in times of drought, and large populations of Ethiopians have no access to education and health care. ZOA Ethiopia positions itself to support IDPs, refugees and host communities in areas where other international NGOs do not often work. As other NGOs or government facilities are not always available, ZOA does what is needed for its beneficiaries: whether it is to work in the sectors of WASH, nutrition, livelihoods, psychosocial support, energy/environment or education.

In Gambella, Hudet, Jijiga and Dollo Ado, ZOA constructed permanent schools, training facilities and water points/reservoirs. In Akobo and Wanthoa, ZOA worked with the government on capacity-building, peacebuilding, livelihoods and access to basic services.

The effects of El Niño, which cause severe drought, are felt in Ethiopia. By acting to combat drought ZOA is working with the government, a local NGO and community leaders to provide water and food security where the needs are the greatest.

Peacebuilding through community cohesion is a focal point for ZOA in all regions. Discussion groups, coaching and sports activities are all focused on refugees and communities living and working together peacefully. In 2016 ZOA will continue to focus on peacebuilding, as well as on supporting its beneficiaries in rebuilding livelihoods.

ZOA Ethiopia

WASHLivelihood and food security

since 1993

Basic educationPeacebuilding

And also in nutrition, energy/environment and psychosocial support.

Programme areas Dollo Ado, Gambella, Hudet, Jijiga, Shire.

Target groups Refugees, IDPs and Ethiopian populations in need, especially youth.

Expenditures 2012 2,425,155

2013 2,318,448

2014 2,855,403

2015 4,322,674

Number of staff as of 31 December

2012 71

2013 92

2014 103

2015 133

In cooperation with

With funding fromDutch Ministry of Foreign Affairs, Royal Netherlands Embassy Ethiopia, UN Office for the Coordination of Humanitarian Affairs, UNHCR Ethiopia, FAO, UNICEF Ethiopia, USAID, AusAID, Woord en Daad, ZOA Netherlands, ZOA Business Ambassadors, Dutch Millennium Foundation, Help2Change Foundation.

ARRA, UNHCR, Regional Bureaus: Justice - Women, Children and Youth Affairs – Education - Disaster Risk Management and Food Security - Agriculture and Livestock - Disaster Preparedness and Prevention - Water - Finance and Economic Development, Woreda Agricultural Bureaus, Woreda Administration, Ethiopian Orthodox Church Development, Inter-Church Aid Commission, Ethiopian Evangelical Church Mekane Yesus, ICCO, IDURUS, Don Bosco Technical Institute.

Sectors

IDPs

Chapter 9Chapter 9

Addis Ababa

Gambella

GambellaHudet

Jijiga

Shire

SomaliaKenya

3534

Building trust in fragile communities

ZOA has been working in Liberia since 2003, supporting returning refugees

as well as IDPs in the aftermath of the civil war. When in 2014 Liberians were hit by the Ebola epidemic, ZOA increased its efforts and reached even more people. Now that the epidemic has subsided, many households have to rebuild their lives. Rural communities have found it hard to restart agricultural production and sell their crops to make a living. People in and around Monrovia lost temporary jobs (such as Ebola awareness raisers). They now have to find new ways to make a living.

In 2015 ZOA was able to help quite a number of rural communities in substantially increasing their cassava production. The farmers learn simple and straight forward technologies and practices which they can easily adopt and sustain. ZOA also helped these cassava farmers to add value to their produce by developing cassava products and to sell these at the markets.

In Monrovia ZOA introduced low cost manual drilling techniques to provide safe drinking water to schools and communities. This method is not only cheap, it also provides people with year-round drinking water from an unpolluted source.

After many years of civil war and conflict, it is hard to live together peacefully again. ZOA’s socio-therapy groups programme aims to build trust at individual, family and community level. In small groups people learn to solve problems and conflicts in a constructive manner, laying a sound basis for cooperation. As communities, local authorities and donors are starting to show interest in this programme, ZOA intends to further expand this socio-therapy programme in 2016.

ZOA Liberia

WASHLivelihood and food security

since 2003

Peacebuilding

Programme areas Western Liberia – Bong, Montserrado, Margibi, Bomi, Grand Cape Mount and Gbarpolu counties.

Target groups Conflict-affected and ebola-affected communities, both rural and urban.

Expenditures 2012 1,215,720

2013 1,179,310

2014 1,396,391

2015 3,304,363

Number of staff as of 31 December

2012 22

2013 23

2014 29

2015 41

In cooperation with

With funding fromDutch Ministry of Foreign Affairs, Royal Embassy Netherlands Liberia, EuropeAid, FAO, UNICEF Liberia, Mercy Corps, Red een Kind, World Renew, other, ZOA Netherlands, ZOA Business Ambassadors, Hofstee Foundation, EO-Metterdaad, Läkarmissionen, Eriksjhälpen, Turing Foundation.

SHIFSD, NAEAL, DEN-L, CODA, Manneka, WASH-contractors Gucda, Becon, Eagle Company, Coastline.

Sectors

Chapter 9Chapter 9

Monrovia

Western Liberia

Ivory Coast

Sierra Leone

3736

Middle Eastern Region

Shelter

WASHLivelihoods

Programme areas and target groupsYemen, targeting conflict-affected IDPs and host populations.

Syria, Jordan and Lebanon, targeting conflict affected populations, IDPs, refugees and host populations.

Kurdistan Region of Iraq, targeting displaced people and host communities.

Expenditures 2012 86,646

2013 771,480

2014 1,287,327

2015 3,548,235

Number of staff as of 31 December

2012 12013 4

2014 8

2015 20

Sectors

since 2012Afghanistan

Jawzjan

Sar-e Pul

And also in emergency relief (food and non-food items distributions) and psychosocial support.

Chapter 9Chapter 9

Regional office in Amman

ZOA set up an office in Amman, Jordan in 2015. However, work in the region started

back in 2012, responding initially to the humanitarian crisis in Yemen. In 2013 the first emergency relief activities were carried out in Jordan, aimed at Syrian refugees. In 2014, we started a water supply programme in Aleppo, inside Syria. Also in 2014, a programme started in the Northern part of Iraq reaching out to Yezidis on the run for IS terrorism.

The crises in the region cause immense suffering and do not seem to be over in the nearby future. Our programmes expanded along with the continuing conflict and the

ever increasing numbers of displaced people. Therefore, we decided to start a regional office, which enables us to build up good relationships with donors and partners, and provides us with the local contacts and knowledge to respond swiftly and adequately.

Three separate programmes are managed from the office in Amman. The first is the programme aimed at people affected by the conflict in Syria, residing in Lebanon, Jordan and Syria. The second is the programme in Yemen, and the third is the programme in Northern Iraq.

Iraq

Saudi Arabia

Syria

Jordan

Lebanon

Yemen

In cooperation with

With funding fromDutch Ministry of Foreign Affairs, UNDP, Woord en Daad, EO-Metterdaad, Stichting Mitswah, Happy Gift, Aqua for All, Deputaatschap Bijzondere Noden, EO/Eva, Koppert BV, Stichting De Pagter Fonds, RV Fund, stichting Alfa Omega and ZOA Netherlands.

Jordan World Renew, Arab Center for Consulting and Training Services / Arab Woman Today, Local churches and mosques, Zarqa Life Center.

Kurdistan Region of Iraq MedEast, SALT Foundation, Partners from Dutch Christian Emergency Relief Cluster.

LebanonLSESD

Syria Lebanese Society for Educational and Social Development (LSESD), The Fellowship of the Middle Eastern Evangelical Churches (FMEEC).

Yemen UNDP, Enmaa Corporation, NFDHR.

Basic education

3938

Syria’s civil war is the worst humanitarian disaster of our time and it now entered its sixth year of bloodshed. 7.6 Million people are internally displaced within Syria and almost 4.6 million have fled the country.

ZOA’s target groups in Syria face a myriad of challenges: houses and infrastructure are destroyed or damaged and people have no access to water, education and health care. Most people have lost their sources of income as well. We support IDPs and other conflict affected people in the cities of Aleppo, Al Hassakah, Damascus and in the Hama governorate with food and non-food items. Our partner created Child Friendly Spaces, where children can play and parents from different religious and ethnic background can meet in peace. In Aleppo our partner has drilled boreholes in three neighbourhoods after the destruction of the water supply piping system.

Jordan is currently home to approximately 630,000 registered Syrian refugees, and Lebanon hosts about 1.2 million Syrian refugees. They are vulnerable to violence, political restrictions, eviction, forced relocation, exploitation and extortion. The majority of refugees lives in or near urban areas, in sub-standard shelters with little or no access to water, sanitation, health and education.

Syrian Response Programme

In Jordan we support refugees and host populations in the cities Irbid and Hoson with distribution of food and non-food items. We continued our successful trauma counselling workshops for women. We provided winterisation aid to the Syrian refugees and poor Jordanians, such as heaters and fuel, blankets etcetera. When the World Food Programme announced funding shortage and cut food distributions, a special fundraising campaign in the Netherlands enabled food assistance to 1,760 families. This not only helped them survive, it also provided hope and encouragement that people in the Netherlands noticed their suffering and acted upon it. In 2016, we expand our activities to vocational and life skills training, to strengthen their resilience.

In Lebanon, we support Syrian refugees in 21 locations throughout Lebanon – in the Bekaa valley, the North, Beirut, the Chouf mountains and South Lebanon, meeting urgent needs in food and livelihoods. We started working there in late 2015. Even in this short time span, we were able to improve nutritional status as well as hygiene for Syrian infants by the distribution of powdered milk and diapers.

The conflict in Yemen, rooted in the Arab spring in 2011, developed into an international conflict during 2015, when a coalition of nine Arab states started bombing Houthi-held areas, in support of the Yemeni government. The situation led to a humanitarian catastrophe, with now 2.5 million people being internally displaced, often hosted by very poor communities with little access to water and food. Currently, the great majority of the Yemenis need humanitarian assistance for bare survival.

ZOA works in Sana’a governorate and Sana’a city, and Hajja governorate in Abs, Ash Sheghaderah, Bania Al Awam and Bani Qais districts, supporting IDPs and host communities. We provided winterisation, hygiene kits and kitchen sets for IDPs. We also provided water supply through water trucking, and provided household water filters for drinking water. The water cisterns ZOA constructed in villages in the Sana’a governorate saved lives during the war, as these were the only available source of water. ZOA also implemented a vocational skills training for 304 students (34% female) in plumbing, installation and maintenance of water tanks and water filtering.

In 2016 we continue with the relief activities such as the distribution of winter aid, water filters and water trucking. We also start again with the support of rainwater catchment systems at household level in Hajja governorate: five villages will be provided with improved roofs, pipes and a water storage tank in order to collect all the rainwater to be used as drinking water.

Yemen Programme Kurdistan Region of Iraq ProgrammeMid 2014, when IS captured Sinjar and Mosul and its surrounding towns and villages, over 1 million people in Northern Iraq became displaced. The majority of these IDPs now live in harsh conditions, in empty buildings without access to basic facilities, and hardly any available employment. At the same time, host communities have to deal with the influx of large numbers of IDPs seeking education for their children, access to health care and work.

ZOA supports both IDPs (Yazidi’s, Christians and Iraqi Arabs) and host communities in Erbil, Kahlifan and Al Qosh. Our livelihood projects provide agricultural supplies to rural host communities as well as short-term employment for IDPs. Additionally, we meet the urgent needs of IDPs by installing toilets, distributing insulation materials and blankets to help endure the harsh Kurdish winter.

In 2016, ZOA will focus on resilience and early recovery programmes, through livelihood projects and vocational education training.

Chapter 9Chapter 9

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Dutch potatoes in Myanmar fields

People in Myanmar face many challenges. Many suffer from decades of oppression

and violence, ethnic strife and religious clashes. Myanmar is regularly hit by floods which have a devastating effect on agriculture in this water-rich country. In July and August 2015 extreme heavy monsoon rains destroyed towns and farmlands, which impacted heavily on the food security of thousands of people.

CDN-ZOA supports vulnerable groups in Myanmar with projects to improve livelihoods and food security. A particular success in 2015 was the establishment of the first national potato producers association. Potato farmers started to use good quality potato seed imported from the Netherlands. The farmers realised an extra potato cultivation season, and subsequently considerably improving their chances on increased harvests and income. One farmer, at his own initiative, even imported newly introduced varieties from the Netherlands, even though importing procedures in Myanmar are challenging.

CDN-ZOA has been training farmers to cooperate within farmer groups. Many of these groups are now self-sufficient and have improved access to markets and financial services.

CDN-ZOA also provides safe drinking water and sanitation facilities, so to prevent waterborne diseases. Hygiene conditions and water quality have improved substantially in Sittwe IDP-camps supported by the programme: child open-defecation rates dropped from 45% in 2014 to 8% in 2015. This decrease of open defecation has resulted in a decrease of waterborne diseases.

CDN-ZOA intends to build bridges between ethnic groups in Myanmar. That happened quite literally in 2015 when we supported different groups to work together to build a bridge in a (post-)conflict area (see also page 9). The construction of the bridge brought people together in more ways than one.

CDN-ZOA Myanmar

WASHLivelihood and food security

since 2008

Peacebuilding

Programme areas Rakhine: Sittwe, Mrauk-U, Kyauktaw, Mimbya and Buthidaung Townships.

Kayin: Thandaunggyi Township.

Bago: Kyauckkyi.

Shan: Taunggyi and Hopong Townships (until 2015).Ayeyarwaddy Region (until 2015).

Target groupsConflict-affected people, IDPs and host communities, returnees and flood-affected people.

Expenditures 2012 1,570,159

2013 920,564

2014 580,342

2015 1,672,893

Number of staff as of 31 December

2012 18

2013 2

2014 3

2015 50

In cooperation with

With funding fromEuropeAid, UN for the Coordination of Humanitarian Affairs, WFP, USAID, Cordaid, International Rescue Committee, ZOA Business Ambassadors, EO-Metterdaad, ZOA Netherlands.

Karen Baptist Convention.

Sectors

Chapter 9Chapter 9

NaypyidawRakhine

KayinBago

Shan

India

4342

Self-sufficiency for former IDPs

South Sudan continues to be a politically unstable country, even though a peace

agreement was signed. Many South Sudanese are afraid the war might re-ignite and do not dare to return home. Several non-state armed groups contribute to the general feeling of insecurity. Large parts of the population are food insecure.

In 2015, ZOA completed a five year project in Limbe, Central Equatoria. Livelihoods improved through assistance in food production and income generation. Access to basic services also improved and these communities are now better able to govern their own affairs.

Returnees in Pibor (Jonglei State) are rebuilding their lives from scratch. In 2016 ZOA will support ex-child soldiers in Pibor through an agricultural project – teaching these young people to be farmers.

ZOA South Sudan supported vulnerable IDPs and returnees in 2015 several times through emergency responses. The objective was to not only alleviate immediate needs, but to also lay the basis for communities to become self-sufficient again.

We expect 2016 to bring a stronger focus on food security and livelihoods recovery programming, so to contribute to food and nutritious-secure farming households. Subsequently these households will be able to produce surpluses for the market. We expect to further engage the private sector in our projects and in doing so build a value chain of inputs, production, and marketing.

ZOA South Sudan

WASHLivelihood and food security

since 1998

Peacebuilding Basic education

Programme areas Jonglei/Terekeka, Central Equatoria, Eastern Equatoria.

Target groups IDPs, returnees and host communities.

Expenditures 2012 2,673,902

2013 2,672,015

2014 2,758,910

2015 4,291,192

Number of staff as of 31 December

2012 74

2013 74

2014 55

2015 71

In cooperation with

With funding fromDutch Ministry of Foreign Affairs, FAO, UNICEF South Sudan, Niras International Consulting, TEAR Australia, Woord en Daad, ZOA Business Ambassadors.

COMPASS, Tali Youth Association, Rural Development Initiatives, Agency for Social Transformation and Development, SALT, Nile Hope, CMA, IAS.

Sectors

And also in emergency distributions of food, non-food items, seeds and tools and rehabilitation of water points.

Chapter 9Chapter 9

Juba

Jonglei

CentralEquatoria

EasternEquatoria

DR Congo

4544

Supporting Sri Lankans to stand strong and make a living

Ever since the war ended in 2009, displaced Sri Lankans are returning home. ZOA has

supported returning refugees to resettle. Returning refugees and IDPs face many difficulties when trying to rebuild their lives. For small hold farmers en fishermen it is hard to make a living; they do not reap the fruits of their hard work, as they have to catch up with thirty years of development in their profession, also processors and companies higher up the value chain make most of the profits. ZOA supports groups and cooperatives of farmers and fishermen to gain a more equitable share in the value chain. Due to ZOA’s efforts, hundreds of fisher families could refinance debts, allowing them to increase their monthly income by up to 25%. Additionally, groundnut farmers are now trading on the regional markets.

Another big challenge for farmers and fishermen are the effects of climate change. Droughts and floods occur regularly. As a result, farmland and harvests are destroyed, and infrastructure is washed away. An

important part of ZOA’s work is Disaster Risk Reduction (DRR): projects and activities to reduce the vulnerability of people to disasters. DRR-activities in 2015 contributed to the fact that over 1500 families did not have to be evacuated during the monsoon season, and that access roads to schools remained clear.

For women in Sri Lanka, widows and single mothers in particular, it is even harder to make a living. They are badly represented politically and they often face violence and inequality. ZOA supports women in self-help groups, who work together to make positive changes in their lives by investing in their economic and social future.ZOA also supported female peanut farmers to cultivate three times a year, thereby significantly increasing their income.

In 2016 ZOA will remain focused on supporting Sri Lankans in rural areas, with extra attention for women. ZOA will also be assisting refugees from Afghanistan and Pakistan who have stranded in Sri Lanka.

ZOA Sri Lanka

Livelihoods, food security & economic development

since 1995

Peacebuilding Disaster RiskReduction

Education

Programme areas Northern Sri Lanka: Jaffna, Mullaitivu, Mannar, Vavuniya, Kilinochchi and Anuradhapura.

Eastern Sri Lanka: Batticaloa, Ampara, Trincomalee and Polonnaruwa.

Target groupsReturnees, both returned IDPs and returned refugees. Especially: female headed households, vulnerable families due to disability or mental health issues. Women Self Help Groups and ex-combatants. Also groups, societies and cooperatives of (dairy) farmers or fishermen.

Expenditures 2012 4,571,662

2013 5,008,940

2014 3,790,984

2015 2,265,216

Number of staff as of 31 December

2012 168

2013 177

2014 127

2015 105In cooperation with

With funding fromEuropeAid, ECHO, UNHCR Sri Lanka, UNICEF Sri Lanka, USAID, AusAID, Japanese Embassy in Sri Lanka, Catholic Relief Service, Habitat for Humanity Sri Lanka, ICCO/Kerk in Actie, World Renew, other, ZOA Netherlands, ZOA Business Ambassadors, Happy Gift, MM Foundation, Amicitia, Ockenden International.

SAFE Foundation, YGRO, Women’s Bank, Farmer, women’s, fisheries, livestock and cooperative societies, the Ministries of Agriculture, Fisheries, Education and Livestock, SOND, FOSDOO, Women Development Cooperative Society.

Sectors

Chapter 9Chapter 9

Colombo

NorthernSri Lanka

EasternSri Lanka

India

4746

Supporting poor and vulnerable conflict-affected IDPs

Hundreds of thousands people are on the move in Darfur, seeking refuge

from fighting between government forces and rebel groups and other armed groups. Hundreds were killed in South-Darfur. More than 450,000 people have fled violence in Darfur in the past two years. The arrival of IDPs and returnees in already overloaded host communities causes tension and conflict. There are few options for re-establishing livelihoods, as resources are limited. High levels of inflation and limited access to hard currency lead to shortages in basic commodities. Besides these challenges, climate change causes additional suffering. El Nino – the climate phenomenon that causes extreme warming up of ocean waters – has led to a prolonged period of extreme drought in the country. As a result, millions of people are hungry and there is a huge shortage of water, subsequently causing harvests to fail and cattle to die.

In this harsh environment ZOA supports IDPs and host communities in Darfur, as well as small-holder farmers in Gederaf. ZOA’s interventions aim to involve communities in every aspect of project implementation. An example of this approach is the implementation of the Integrated Water Resource Management Programme in Eastern Sudan. In this programme, communities learn to self-manage their water resources.

In Gederaf the introduction of new technologies, including precision agriculture, as well as the use of improved seed varieties, have helped small-hold farmers to dramatically increase their yields. Sorghum farmers produced 3 to 4 times as much as in other years, whereas many other farmers in the project area failed to plant.In 2016, ZOA will focus even more on household resilience and sustainable livelihoods.

ZOA Sudan since 2004

Livelihood and food security

WASH

Basic education

Peacebuilding Shelter

Programme areas and target groupsNorth, South and East Darfur, targeting conflict-affected IDPs.

Gederaf State, targeting small holder farmers.

Expenditures 2012 2,757,025

2013 2,848,188

2014 2,968,305

2015 4,878,991

Number of staff as of 31 December

2012 92

2013 93

2014 96

2015 106

In cooperation with

With funding fromDutch Ministry of Foreign Affairs, EuropeAid, ECHO, UNDP, UNOPS, UNICEF Sudan, USAID, Department for International Development (DFID) of the United Kingdom.

PODR, CDF, JMCO, Voluntary Network, WHDO, SOLO, Zenab, Plan, Practical Action, Islamic Relief, IAS, GPWO.

Sectors

Chapter 9Chapter 9

Karthoum

Darfur

Gederaf

Chad

South Sudan

4948

Building sustainable livelihoods in Uganda

After two decades of civil war between the government of Uganda and the Lord’s

Resistance Army in Acholi, Uganda has been relatively stable and peaceful since 2007. However, ZOA’s target groups in Northern Uganda still face many challenges. The people ZOA supports have few means of making a living. Over 70% of Ugandans in rural areas depend on agriculture as their main source of livelihood. Access to markets is limited, as well as access to credit and financial services. As a result of climate change, farmers are facing increasingly unpredictable weather conditions, including erratic rainfalls, floods and prolonged dry spells, all of which contribute to crop failure.

ZOA supports smallholder farmers in Acholi, West Nile and Amudat. Farmers learn and apply modern farming and marketing practices and build resilience against adverse weather conditions and unstable markets. The Farmer Field School approach in particular has proven to be successful, with almost 70% of the targeted farmers in Nwoya significantly increasing their crop production and income from crop sales.

In addition to working with over forty public

primary schools in the post-conflict region of Acholi, ZOA also supported community schools in Amudat and Nwoya. These schools, which are initiated and led by parents, do not receive government support. ZOA invested in the facilities and strengthened the management of these schools, while the parents remain responsible for running the schools and paying the teachers. One and other has led to more sustainable results and impact.

Limited availability and/or access to fertile farm land, pasture and water for livestock is fuelling competition, mistrust and increasingly conflict between farmers and pastoralists. ZOA’s interventions to improve access to water for production in Amudat and increase land security through collective conflict resolution, demarcation and certification in Nwoya are contributing to more peaceful, stable and prosperous communities.

In 2016, ZOA will strengthen its focus on land security as an integral strategy to build sustainable agricultural livelihoods and peace. ZOA will also increasingly target South Sudanese refugees and their host communities in West Nile to provide durable solutions for the persisting refugee crisis.

ZOA Uganda

Livelihood and food security

since 2007

Peacebuilding and land security

WASH

Basic education, vocational training, adult numeracy &

literacy

With funding fromDutch Ministry of Foreign Affairs, EuropeAid, UNDP, FAO, Diakonia, ICCO/Kerk in Actie, Koornzaayer Foundation, ZOA Netherlands, ZOA Business Ambassadors, Stichting Dioraphte, Stichting Pharus, Driestar, Stichting Wees een Kans, Hartman Marine.

In cooperation with Kwal Ryeko, Fokapawa, CEFORD, CCF, POZIDEP, AIDI, Vision Care.

Programme areas Karamoja (Amudat).

Acholi (Nwoya, Pader & Agago).

West Nile (Arua, Koboko, Moyo, Zombo, Nebbi).

Target groups Returnees/former IDPs, refugees (South Sudanese) and host communities in and around refugee settlements.

Expenditures 2012 2,233,234

2013 2,643,982

2014 2,606,211

2015 2,538,918

Number of staff as of 31 December

2012 137

2013 137

2014 95

2015 105

Sectors

Chapter 9Chapter 9

Kampala

Karamoja

AcholiWestNile

DR Congo

Kenya

5150 Chapter 10 51

10 Disaster ResponseSince typhoon Haiyan (2013) caused devastation in the Philippines, ZOA has been supporting people who lost their houses and livelihoods in Eastern Samar. When ZOA completed its Shelter Assistance project in September 2015, a total of 562 houses were constructed.

ZOA constructed each house to be more resistant to typhoons by using diagonal beams, cement footing and hurricane straps to secure the roof. For partially damaged houses, ZOA provided 853 shelter repair kits, enabling house-owners to rehabilitate and strengthen their houses.

The typhoon-proof houses stood the test when in December 2014 typhoon Hagupit and in January 2015 typhoon Amang hit the same areas. None of the ZOA-built houses collapsed. In January 2015 the team completed an emergency relief project after typhoon Hagupit hit Samar on 5 December 2014.

Most farmers in ZOA’s programme area were totally dependent on coconut farming, which made them vulnerable to typhoons. We worked hard to change this dependency through a crop diversification programme which focused on cultivation of fast growing vegetables and root crops. ZOA organised community based farmer trainings and distributed farmer kits including adequate tools and seeds. This benefited over a thousand farmers. In 2016 ZOA will partner with local organisation CCT which will continue the programme after the close of the ZOA Philippines office. The long term objective is to enable coconut farmers to derive 10 to 30 percent of their income from non-coconut farming.

PhilippinesAs a result of the devastating earthquakes that hit Nepal on April 25th and May 12th 2015, many of the already poor communities around Kathmandu lost their houses, livestock and livelihoods. Clean water sources and water distribution systems were also damaged or destroyed, as well as latrines. The affected people needed quick support to survive the monsoon season between June and September. In November, when winter set in, communities needed support to get through the very cold months.

In the Netherlands we started a fundraising campaign together with the other four partners within the Christian Emergency Relief Cluster. We were able to respond quickly in the districts of Nuwakot, Sindhupalchok and Ramechhap,

by distributing materials for temporary shelter and non-food items to replace essential items that were lost during the earthquake. Later in the year, clothes, blankets and mattresses were distributed to communities high up in the mountains, to survive the cold winter.

In 2016 ZOA will continue to support poor communities in the hills around Kathmandu, focusing on restoring livelihoods through improving access to clean water, improving hygiene through building latrines and promoting use of latrines and handwashing. The biggest need is to restore houses and ZOA would like to get further involved in this.

In 2011 ZOA committed itself to increase its disaster response capacity by setting up a Disaster Response Unit (DRU) that would implement disaster response in countries where ZOA has neither a regular programme nor a team. Since then, relief programmes were started in Haiti, Pakistan, Yemen, Jordan, Philippines and Nepal, and support was provided to existing country teams in Ethiopia, Liberia and Afghanistan in case of occurring emergencies.

The Disaster Response Unit was evaluated in 2015 by an external consultant who recommended several adjustments on both policy– and strategic level:

• Increase the annual budget spent on Disaster Response

• Reduce the time to respond to disasters• Increase the Disaster Response capacity

of ZOA

• Increase surge capacity to respond to a disaster

• Further develop the training programme for DRU staff and surge capacity staff to ensure they are ready for a rapid response

• Update all operating procedures

To increase DRU’s effectiveness and efficiency, it was also advised to appoint a director at the same seniority as a country director. In response to these recommendations, the recruitment was initiated of a Director of Disaster Response with the status of a country director and reporting to the Programmes Director. The Director of Disaster Response will lead the fulfilment of the recommendations in 2016.

Nepal

Chapter 10

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11.1 MAIN TRENDS

The financial year 2015 resulted in a very strong increase in income from € 44 million in 2014 to € 65 million in 2015. We were successful in realising growth in all income categories: fundraising from individuals, subsidies from institutional donors and project grants for consortia led by ZOA. We are very thankful for the growing financial means entrusted to us; this has truly increased our capacity to make a difference for our beneficiaries. As a consequence of increased income, also expenditure on our objectives increased significantly (in percentage from 91% to 93% of total expenditure), while we managed to keep expenditure for fundraising and for management and administration at the same cost levels.

We insist on responsible spending by project proposals of good quality and on only contracting projects for which income has been secured already. Therefore, there is an unavoidable delay between the date income is received and the date of actual expenditure. This delay is reflected in the surplus of income over expenditure in any year. For 2015, this surplus of income over expenditure was, due to increased income, relatively high at € 3,8 million. For € 3,5

million, this surplus will be used for future project spending in 2016. The remaining € 0,3 million is added to risk and continuity reserves. We feel privileged to present these financial accounts of 2015; they reflect the increased trust of our financial donors and our capacity to have greater impact in all the unstable countries and remote villages we work in.

Long range key figures and summaryGiven the fact that we work in unstable countries with insecure funding, the long range key figures are remarkable stable but with a steep increase in income and expenditures in 2015. Income from own fundraising was and is at the desired level of 25% of total income over a longer period of years. Institutional project grants remain around € 26 million but peak in 2015. The total % spent on objectives moves within the range at the high percentage of 91% to 93%; The % of costs spent for own fund raising was stable at around 17% but shows a considerable decrease in 2015 to 13,5%. The costs for management and administration show a gradual decrease to slightly under 3% in 2015.

Total income reached € 65 million After some stable years, the total income of ZOA increased with € 20.6 million to € 64.7 million in 2015. All income components showed an increase. The income and expenditure that is handled and administrated by ZOA for consortia partners showed an increase of € 9.3 million. The income project grants from institutional donors showed an increase of € 8.4 million in 2015 due to new funding and still the last year of implementation of the big MFS-2 programme. The private fundraising increased by € 2.1 million. Including other income increase of € 0.8 million, these four components make up the total increase of € 20.6 million. In order to achieve a balanced income pattern without being too dependent on one source, ZOA aims to have at least 25% of total income , excluding consortia partners, from own fundraising activities. This aim was met in 2015.

Emergency relief campaignsIncome from private fundraising was higher for both earmarked as well as non- earmarked funding. Earmarked funding fluctuates with emergency relief campaigns. In 2015 there were major

campaigns for refugees in Syria and earthquake victims in Nepal. In 2014 there were fundraising campaigns for Iraq, Sudan, Uganda and the Ebola crisis.

Surplus in 2015The year 2015 ended with a surplus of income over expenses of € 3.8 million against a budgeted shortfall of € 2,0 million. In ZOA, the budget is starting point. However, the nature of our work makes it difficult to predict the income from private fundraising and institutional donors since income depends on the actual natural disasters that emerge within the year and on the willingness and possibilities of institutional partners to commit for these emergencies and rehabilitation projects during any year. The actual income in 2015 ended 50% higher than budget. The budget was however effectively used and kept for managing and controlling the cost levels of all indirect costs. There is a natural delay between receiving monies and responsibly spending them, even more so when monies received are higher than originally budgeted and peak in the last quarter of the year, as was the case in 2015. Therefore, these financial accounts

11 Financial reportChapter 11

These are the financial accounts of Stichting ZOA, Sleutelbloemstraat 45, Apeldoorn.

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Long range key figures and summary

INCOME (X € 1.000.0000) Actual 2012 Actual 2013 Actual 2014 Actual 2015 Budget 2016Income own fundraising activities 6,8 8,9 8,4 11,1 9,0Income from third party campaigns 1,5 0,6 1,2 0,6 1,1

8,3 9,5 9,6 11,7 10,1As % of total income (excluding consortia and other) 24% 27% 27% 25% 26%

Income from institutional project grants 25,7 25,9 26,3 34,7 28,9Income for consortia partners 8,1 8,2 8,1 17,4 12,8Other income 0,4 0,5 0,1 0,9 0,1

TOTAL INCOME 42,5 44,1 44,1 64,7 51,9

EXPENDITURESSpent on objectivesSpent in programme countries 27,8 28,2 26,9 36,7 37,3Spent in disaster response countries and other 1,9 0,7 0,9 1,2 0,4Spent on preparation & coordination from The Netherlands 2,0 2,2 2,1 2,1 2,4Spent on education and awareness raising 1,0 0,6 0,4 0,5 0,5

92% 32,7 91% 31,7 91% 30,3 93% 40,5 93% 40,6

Expenditure through consortia partners 8,1 8,2 8,1 17,4 12,8Spent on own fundraising (CBF) 17,4% 1,2 17,4% 1,5 17,5% 1,5 13,5% 1,5 15,4% 1,4Spent on fundraising third party and institutional 0,3 0,3 0,3 0,3 0,4Management and administration 3,4% 1,2 3,6% 1,2 3,2% 1,1 2,9% 1,2 3,0% 1,2

TOTAL EXPENDITURES 43,5 42,9 41,3 60,9 56,4

SURPLUS/ - DEFICIT IN THE YEAR -1,0 1,2 2,8 3,8 -4,5

ADDED TO/ WITHDRAWN FROMProgramme funds 1,1 0,8 2,8 -3,5Continuity and allocated reserves 0,1 2,0 1,0 -1,0

show that of all monies received in 2015, a surplus of € 3,8 million remained at the end of 2015 to be spend in 2016.

Of monies received, 92% was spent in 2015From the income of € 47.3 million excluding the income for consortia partners, € 43.5 million or 92% was spent within the same year 2015. This is what happened with the remaining € 3.8 million:• Added to programme funds (to be spent

on projects in countries): € 2.8 million. • Added to allocated reserves related to

programmes/ countries (to be spent based on specific proposals to be received from countries): € 0.7 million.

• Added to allocated reserve for financing assets and continuity reserve (to be assigned for specific purposes in 2016): € 0.3 million.

Of monies spent, 93% was spent directly on ZOA objectivesAccording to RJ 650, ZOA categorises its expenses in two categories: the first category is spent on Objectives and the second is spent on Fundraising and Management / Administration. ZOA aims to spend at least 88% directly in the first category. This first category Objectives consists of three objectives which are: all expenditure in ZOA countries, expenditure for (programme) preparation and coordination, and expenditure for the statutory ZOA objective Education

and Awareness raising. Of course, ZOA continued to carefully monitor whether the costs in the second category, Fundraising and Management / Administration, also contribute sufficiently to the three objectives.

As can be seen in the table the percentage spent on the three objectives of total expenditure of € 43.5 million excluding the expenditure by consortia partners, increased further to 93% in 2015 ( (2014: 91 %). The remaining 7% was spent on Fundraising for 4.1% (2014: 5.4%) and Management and administration for 2.9% (2014: 3.2%).

Costs own fundraisingThe Dutch Central Bureau Fundraising (CBF) prescribes to express the costs of own private fundraising as % of income from own private fundraising. The CBF percentage for 2015 decreased considerably to 13.5% (2014: 17.5%). The income from own private fundraising increased with € 2.1 million, but the costs remained at the same level; thus a firm decrease in %.

The total expenditure for 2015 can also be broken down differently, for example according to cost category (direct expenditure in projects, personnel costs, etcetera). Please refer to the paragraph ‘attribution of costs’ under the notes to the statement of income and expenditure for a different break down.

Sufficient cash and revised reservesAs per the end of 2015, the balance sheet shows sufficient liquidity for ZOA to meet its short-term obligations: the balance of cash and receivables minus short-term liabilities and provisions increased to € 16 million nett (end of 2014: € 12 million). This nett ‘available’ cash of € 16 million, together with the € 2 million that is invested in fixed assets, are represented in the programme funds, allocated reserves and continuity reserve which total € 18 million. According to RJ650, ZOA distinguishes between continuity reserves and allocated reserves for specific purposes. Yearly, ZOA reassesses its increasing programmatic risks in countries (reservation remained at € 0.5 million), reassesses its increasing need to be able to pre-finance essential projects in existing countries (reservation remained at € 2.0 million) and adjusts the financing assets reserve for ZOA-financed fixed assets that usurp liquidity (reservation down to €1.5 million). The general continuity reserve, which was substantially reduced in 2014, has a € 2.0 million minimum required level. The actual balance end of 2015 is €2.5 million, and therefore considered sufficient.

5756

11.2 BALANCE SHEET

ASSETS 31 Dec 2015 31 Dec 2014Tangible fixed assets 1 Land 349,000 349,000Building 842,825 878,019Inventory & Equipment 133,148 199,291Vehicles in programme area's 212,516 292,173 1,537,489 1,718,483

Stocks 2 0 88,202

Receivables 3 7,074,522 6,900,287

Marketable securities 4 100,000 0

Cash and cash equivalents 5 18,770,034 19,460,208

TOTAL ASSETS 27,482,045 28,167,180

RESERVES AND LIABILITIES 31 Dec 2015 31 Dec 2014Reserves and funds Continuity reserves General 6 2,573,360 2,063,312

Allocated financing- and risk reserves:Pre-financing 7 2,000,000 2,000,000Financing fixed assets 8 1,537,614 1,718,483Programme financing 9 500,000 500,000

4,037,614 4,218,483Allocated reserves for future project spending:Country programme reserves 10 966,918 499,120Programme development & innovation 11 685,606 700,000Disaster Response 12 1,183,507 961,091Other allocated reserves 13 267,529 268,925

3,103,560 2,429,136

Programme funds 14 8,009,474 5,238,882

17,724,008 13,949,813

Provisions 15 519,351 326,983

Short-term liabilitiesTaxes and social security contributions 16 199,271 174,532Accruals to donors 17 6,449,139 9,903,728Other liabilities and other accruals 18 2,590,276 3,812,124

9,238,686 13,890,384

TOTAL RESERVES AND LIABILITIES 27,482,045 28,167,180

11.3 STATEMENT OF INCOME AND EXPENDITURE

INCOME Actual 2015 Budget 2015 Actual 2014Income own fundraising activities 19 Door to door collection 845,303 855,000 856,714Legacies 1,027,835 300,000 552,183Contribution, donations, gifts 9,187,627 6,480,000 6,973,419

11,060,765 7,635,000 8,382,316

Income from third party campaigns 20 619,666 1,000,000 1,213,790

Project GrantsProject grants for consortia partners 21 17,351,953 7,686,330 8,073,743From institutional donors 22 34,666,488 32,374,381 26,260,358

52,018,441 40,060,711 34,334,101

Interest 137,092 100,000 91,566

Rate differences and other income 23 845,786 45,394

TOTAL INCOME 64,681,750 48,795,711 44,067,167

EXPENDITURES Actual 2015 Budget 2015 Actual 2014Spent on objectives 24 Spent on Objectives in CountriesProject grants to consortia partners 21 17,351,953 7,686,330 8,073,743Own spending on objectives 37,860,034 37,279,233 27,839,860

55,211,987 44,965,563 35,913,603

Preparation and Coordination from the Netherlands 25 2,093,093 2,259,888 2,092,959

Education/Awareness raising 26 519,809 532,112 453,858

57,824,889 47,757,563 38,460,420

Spent on fundraising 27 Expenses own fundraising 1,487,599 1,455,873 1,467,313Expenses participation in external campaigns 60,315 69,689 49,667Expenses received project grants 286,334 297,342 276,625

1,834,248 1,822,904 1,793,605

Management and Administration 28 1,248,418 1,246,992 1,061,805

TOTAL EXPENDITURES 60,907,555 50,827,459 41,315,830

SURPLUS/-DEFICIT 3,774,195 -2,031,748 2,751,337

ADDED TO/WITHDRAWN FROM Actual 2015 Budget 2015 Actual 2014Programme FundsAdded for future project spending 2,770,590 -2,252,073 736,783

Allocated reservesAdded for future project spending: Disaster Response 222,414 - 284,638Programme development & innovation -14,394 - 600,000Country programme reserves 467,798 10,000 242,892Other -1,391 - 1,396

674,427 10,000 1,128,926Added to financing- and risk reserves:Program financing - - 500,000Financing assets -180,869 - 1,718,483pre-financing projects - - 2,000,000

-180,869 - 4,218,483

Continuity reservesAdded to general continuity reserve 510,047 210,325 -3,332,855

TOTAL CHANGE IN

RESERVES AND FUNDS3,774,195 -2,031,748 2,751,337

After appropriation of the surplus

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11.4 CASH FLOW OVERVIEW

CASH FLOW ACTUAL 2015 ACTUAL 2014Cash flow from operating activities excluding consortia partners

ReceivedOut of own fundraising 10,495,765 8,082,316Out of third party campaigns 189,519 1,213,790Out of project grants 32,280,766 32,513,559Other income 981,277 262,863

43,947,327 42,072,528

PaymentsProgramme and coordination costs -41,169,861 29,886,467Fundraising, management and administration costs -3,082,666 2,809,852

-44,252,527 -32,696,319

Cash flow from operating activities -305,200 9,376,209

Cash flow into investments:Assets bought -373,176 -539,606Assets sold - 14,560Stocks 88,202 -88,202Change in marketable securities and cash equivalents -590,174 8,762,961

Balance 31 december 18,870,034 19,460,208Balance 1 januari 19,460,208 10,697,247

CHANGE IN MARKETABLE SECURITIES

AND CASH EQUIVALENTS-590,174 8,762,961

The cash flow statement is according to the direct method. The cash receipts for project grants stayed the same at € 32 million. Income, excluding grants for consortia partners, was higher at € 35 million but after deduction of the change in the net receivable position of € 3 million the

resulting cash flow was € 32 million. Similarly, the payments for all programme and coordination costs increased to € 41 million, excluding grants for consortia partners .

The net cash position stayed stable at a level of € 19 million.

RATIO LIQUIDITY ACTUAL 2015 ACTUAL 2014Liquidity expressed by ACID ratio 266% 185%Receivables and Cash 25,944,556 26,360,495Short-term liabilities and provisions 9,758,037 14,217,367

The cash position should be analysed as part of the overall liquidity ratio including receivables and short-term liabilities.

ACID ratio measures the ability of ZOA to use its near cash or quick assets to extinguish or retire its current liabilities and current provisions immediately. Based on the liquidity ratio of 266%,

ZOA has sufficient funds available to cover all obligations on the short term. The remaining € 16 million represent the reserves and programme funds and are expected to decrease during 2016 when programme funds are expected to decrease because of more expenditure from this fund in countries.

Cash Flow Ratio Liquidity

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11.6 ACCOUNTING PRINCIPLES FOR THE BALANCE SHEET

GeneralThe annual accounts have been prepared in accordance with Guideline 650 of Fundraising Organisations (RJ 650).

Income and expenditures of consortia partners are excluded from indicator percentages unless indicated otherwise.

The annual accounts have been prepared on historical cost basis. Unless indicated otherwise, assets and liabilities are presented at face value. Income and expenditure are allocated to the period they relate to. The annual accounts are presented in euros.

Reporting periodThese annual accounts have been prepared based on a review period of one year. The financial year coincides with the Gregorian calendar year.

Transactions in foreign currenciesTransactions in foreign currencies are converted against the exchange rate that is applicable at the time of the transaction. Monetary assets and liabilities in foreign currencies are converted at balance sheet date in the functional currency against the rate applicable on this date. Non-monetary assets and liabilities in foreign currencies that are presented at historical cost are converted into euros at the exchange rates applicable on the transaction date. Differences in exchange rates appear as a result in the statement of income and expenditures.

Use of estimatesThe preparation of the annual accounts requires the Chief Executive Officer to make judgements, estimates and assumptions that influence the application of accounting principles, as well as the reported value of assets and

liabilities and income and expenditure. The actual outcome may deviate from these estimates. The estimates and underlying assumptions are continually assessed. Revised estimates are used in the period that the estimate changes and in future periods where revision may have consequences.

ImpairmentIf the book value of an asset exceeds the value of the direct sales value and/or the estimated present value of the future cash flows, impairment is charged which is the difference between the book value and the recoverable amount.

Financial instrumentsDuring the normal course of business, ZOA uses various financial instruments that expose the organisation to market and/or credit risks. These relate to financial instruments that are included on the balance sheet. Receivables on the balance sheet relate mainly to donor receivables and are mainly from large institutional parties. The credit risks on these receivables are therefore limited. ZOA has a very limited interest rate risk, as ZOA has no interest-bearing loans. The market value of the financial instruments stated on the balance sheet is approximately equal to their carrying amount. ZOA does not trade in financial derivatives.

Tangible fixed assetsThe buildings, refurbishments, fixtures and equipment and means of transport in programme areas are valued at acquisition or manufacturing cost minus the cumulative depreciations and/or accumulated impairment losses, if any.

Partially or fully depreciated fixed assets will only be removed out of the fixed assets registers when they have been sold or officially decommissioned. Maintenance expenses will only be capitalised as assets if these extend the economic life of the object.

Depreciations are calculated as a percentage of the acquisition price according to the straight-line method based on the estimated useful life of the assets. Land and tangible fixed assets for sale are not depreciated.

Land: 0 %Building: 3 1/3 %Refurbishments: 10 %Inventory and equipment: 25 %Vehicles in programme areas: 33 1/3 %

StocksStocks are valued at acquisition price. The acquisition price comprises the purchase price and additional costs, such as import duties, transport costs and other costs that can be directly allocated to the

acquisition of stocks. The valuation of the stocks takes into account any downward value adjustment on balance sheet date.

Receivables, prepayments and accrued incomeReceivables are valued at actual value including a provision for non-recoverability if needed. Provisions are determined according to individual assessment of the collectability of the debts.

Marketable securitiesMarketable securities are valued at actual value.

Cash and cash equivalentsCash and bank balances are valued at face value. Non-euro cash and bank balances are converted against actual rate at end of book year.

Reserves and fundsThe reserves and funds of ZOA exist to achieve ZOA’s objectives. They can be summarised as follows:

Continuity reservesThe general continuity reserve enables the organisation to meet its commitments during an unforeseen (temporary) stagnation of income. Restrictions on spending continuity reserves is determined by the Chief Executive Officer.

Allocated reservesThe allocated reserves are earmarked by the Chief Executive Officer and consist of two groups. First reserves for (pre)financing and particular risks and secondly reserves for future project spending. The first group consists of the allocated reserves for pre-financing projects (to enable start or continuation of projects in countries before donor instalments are received), financing assets and programme financing (risk of unrecoverable expenses). The second group consists of country programme reserves , programme development and innovation, disaster response activities and other earmarked reserves related to assets in countries (vehicle replacement reserves).

Programme FundsProgramme funds concern funding acquired with a specific use designated by the donor , but not yet spent on these designations.

ProvisionsObligations relating to contributions to pension schemes based on defined contributions are presented as expenditure in the statement of income and expenditures, in the period that the contributions are due.In addition, a provision is included for existing additional commitments to employees, provided it is likely that

there will be an outflow of funds for the settlements of the commitments and provided it is possible to reliably estimate the amount of these commitments.

LiabilitiesZOA enters into obligations to donors in countries in which ZOA is implementing programmes. A donor obligation is recognised after the Chief Executive Officer has passed the resolution and has communicated this to the donor and the grant recipient, which leads to a legally enforceable or actual obligation to spend for the agreed project. The remaining obligation is presented in the balance sheet as a liability. Liabilities are valued at actual value.

LeasingAt the moment of contracting, the economic reality, including all facts and circumstances, will determine whether a contract is leasing. A contract is leasing when the fulfilment of the contract is dependent on particular use of a specific asset or on the rights to use a specific asset. In case of financial lease, the asset is activated and depreciated as part of the fixed assets. In ZOA, there is no financial lease. In case of operational lease, the lease terms are charged to the expenditure statement linear to the lease period. In ZOA, this applies to some office equipment in Netherlands (value future lease terms less than € 15,000).

11.5 EXPLANATORY NOTES TO THE ANNUAL ACCOUNTS

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11.7 ACCOUNTING PRINCIPLES FOR THE STATEMENT OF INCOME AND EXPENDITURES

Income and expenditure are attributed to the period to which they relate.All proceeds are entered as income for their gross amount, unless explicitly stated otherwise. Costs necessary to realise certain income are presented as expenditure in the statement of income and expenditures.

Income from own fundraising activitiesIncome from own fundraising activities is recognised as income in the year of receiving, or moment of signing a specific contract. It includes the income from the door-to-door collection, legacies, contributions, donations and gifts. Donations in kind are valued at actual value. Legacies are recorded as income in the year they can be reliably estimated, that is when the notary has communicated the ‘akte van scheiding en deling’. The estimation is based on prudent valuation. This accounting principle is valid from 2015. Until 2014, income from legacies was recorded only upon actual receipt (cash basis). The effect of this change is explained in the explanatory notes to the statement of income and expenditures. Donations and legacies still under usufruct by the donating party are recognised in the year that the usufruct ends; in these financial accounts they are presented as off balance sheet receivables.

Income recognition projects implemented by partnersIncome recognition related to projects implemented by partners is based on periodically received expenditure reports.

Income from third party campaignsContributions from other fundraising organisations are accounted for as ‘income from third party campaigns’ for the amount received by the organisation. They are recognised in the year that income from the campaign by third parties has been received or pledged by this third party. Campaigns by third parties only include campaigns for which ZOA does not bear any risk.

Project Grants from institutional donorsOperating grants are recognised in the statement of income and expenditure of the year that includes the subsidised expenditure. Losses are taken into account if they originate in the relevant financial year and as soon as these are anticipated.

Project Grants for consortia partnersProject grants for consortia partners are recognised, both as income and as expenditure, in the statement of income and expenditure in the year of the contractual spending obligation.

Project Grants in kindGrants received in kind, often food and relief supplies, are valued at the cost stated in the contract relating to the goods. If the contract does not provide for this, the goods will be valued at market value at place of delivery. If received goods are not based on a contract and a reliable valuation is lacking, the transaction will not be accounted for in the statement of income and expenditures.

CostsStakeholders also require insight into the level and breakdown of the costs of fundraising organisations; the notes provide a specification of these costs in accordance with model C of the RJ-650 guidelines.

Spending on objectivesExpenditures spent on objectives include amounts allocated for activities designed to meet the objectives during the financial year, as well as implementation costs. Expenditures include subsidies to local partners, relief goods and food purchased, cost of deployed personnel, transport costs, local accommodation costs and office expenses. It also includes the acquisition costs for means of transport and office inventory which might be made available to the local partner after the project has ended.

Costs of fundraising All costs, incurred for activities aimed at persuading people to donate money for one or more of ZOA’s objectives, are earmarked as costs of fundraising. This means that the costs for publicity and public relations are regarded as costs of fundraising, unless they are costs for education and awareness raising. It can often concern various activities: information and fundraising at the same time. In such cases, the part of the costs relating to the information activity will be allocated to that activity. Depending on the specific information objectives, the allocation formula is decided for each situation in advance.

Costs of management and administrationCosts of management and administration are costs that ZOA incurs for (internal) management and administration and are not directly allocable to ZOA’s objectives or to fundraising income.

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TANGIBLE FIXED ASSETS Land Building Inventory & Equipment

Vehicles Total2015

Total2014

At 1 January 2015Acquisition value 349,000 934,191 836,884 3,417,167 5,537,242 5,300,634 Cumulative depreciation - 56,172 637,593 3,124,994 3,818,759 3,300,549 Book value 349,000 878,019 199,291 292,173 1,718,483 2,000,085

Correction Myanmar / DR Congo / Ethiopia - acquisition value - - 27,113 154,680 181,793 - Correction Myanmar / DR Congo / Ethiopia - depreciation - - 27,113 142,991 170,104 - Corrections - - - 11,689 11,689 -

Changes in book valueInvestment - - 26,128 335,359 361,487 539,606 Desinvestment - - 21,552 195,900 217,452 302,997 Depreciations - 35,194 92,271 426,705 554,170 663,883 Depreciations desinvestment - - 21,552 195,900 217,452 145,672 Balance - -35,194 -66,143 -91,346 -192,683 -281,602

At 31 December 2015Acquisition value 349,000 934,191 868,573 3,711,306 5,863,070 5,537,243 Cumulative depreciation - 91,366 735,425 3,498,790 4,325,581 3,818,760 BOOK VALUE 349,000 842,825 133,148 212,516 1,537,489 1,718,483

11.8 EXPLANATORY NOTES TO THE BALANCE SHEET

The investments in 2015 were € 0.4 million, almost exclusively in vehicles needed in country programmes. The corrections are assets, mainly motor

bikes, that were not fully administered in previous year’s asset registers. Disinvestments of € 0.2 million relate mainly to vehicles in country programmes.

Disinvestments are assets sold by ZOA after they became redundant or economically too expensive to operate.Land and building were acquired in 2013;

there is no indication that the actual value at end of book year is materially higher or lower than the book value.

RECEIVABLES 31 Dec 2015 31 Dec 2014Receivables from institutional donorsEuropean Union 1,851,806 1,735,406USAID 1,016,515 1,772,243MRRD (Afghan government) 641,145 1,278,112UN-organisations 504,965 168,573Ministry of Foreign Affairs 317,148 144,507ICCO Kerk in Actie 73,093 -World Renew 44,770 55,555CORDAID 31,250 -Other donors 270 138,848The Border Consortium - 25,000

4,480,982 5,318,244 Receivables Christian Emergency ClusterWoord en Daad 1,400 -Dorcas - 120,800Red een Kind - 75,000

1,400 195,800Receivables from third partiesEO Metterdaad 43,610 37,205Other third parties 439,748 53,211

483,358 90,416

Project expense advances to local partners 865,396 650,571

Other debtors en receivablesLegacies 565,000 - Prepaid expenses Countries (mainly rent) 328,043 246,739 Debtors and prepaid expenses NL 255,848 305,623 Interest to be received 94,495 92,894

1,243,386 645,256

7,074,522 6,900,287

MARKETABLE SECURITIES 31 Dec 2015 31 Dec 2014Oikocredit EDCS U.A. 100,000 -

100,000 -

CASH AND CASH EQUIVALENTS 31 Dec 2015 31 Dec 2014In bank accountsEuro in Netherlands 13,589,194 10,909,175Euro in countries 873,551 2,806,583

14,462,745 13,715,758

US Dollar in Netherlands 223,524 2,020,258US Dollar in countries 1,518,248 1,493,128

1,741,772 3,513,386

Other currencies in Netherlands 583,751 -Other currencies in countries 1,850,410 1,982,109

2,434,161 1,982,109

Held in cash 131,356 248,955 18,770,034 19,460,208

Receivables from institutional donors relate to project grant installments still to be received by ZOA for projects that are im-plemented and pre-financed by ZOA. The position has decreased by the end of 2015 from € 5.5 million to € 4.5 million. Other receivables show a combined increase of

€ 1.3 million because of project instalments of third parties only received in 2016 (€ 0.4 million increase), legacies to be received in 2016 (€ 0.6 million increase) and advances paid for implementation of projects by local partners (€ 0.3 million increase). All receiv-ables are claimable within one year.

In 2015, ZOA started a direct membership in Oikocredit. Oikocredit supplies micro credit in developing countries and is therefore closely related to the mission of

ZOA. The investment in Oikocredit yields a fixed 1.55% per year, is valued at actual value and is available without restrictions.

ZOA aims to keep balances in euros wherever possible. US dollar contracts with institutional donors result in currency positions in US dollars that can lead to rate differences. In general, these do not influence programme activities, since most of the expenditures are also paid in or linked to US dollars.

At 31 December 2015, the other currency position in Netherlands consist of British Pounds.

Other currencies in countries are mainly local currencies.

Cash and bank balances are freely available without restrictions. The cash position should be analysed as part of the overall liquidity position, see the Cash flow overview and liquidity ratio.

Receivables

Tangible Fixed Assets

Marketable securities

Cash and cash equivalents

ASSETS

1

2Stocks

3 4

5

STOCKS 31 Dec 2015 31 Dec 2014 - 88,202

- 88,202

Stocks per 31 December 2014 were cooking stoves ready for distribution in Ethiopia.

No stocks per 31 December 2015.

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The net changes in reserves (added-to minus spent) correspond with allocations from the surplus over 2015 shown in the statement of income and expenditure (added to/withdrawn from box). ZOA policies for keeping reservesZOA needs to maintain reserves for general, financial and operational risks. In the year 2014, the reserve policy was revised to one that is more in line withwith ZOA’s risks of operation, within the framework of RJ 650. ZOA does not keep more reserves and funds than reasonably necessary to obtain the organizational goals. If the reserve is needed to cover a particular risk, the Chief Executive Officer and the Supervisory Board base the level of the reserve on a risk assessment and take precautionary measures to reduce risks.

Continuity reserveThe general continuity reserve covers all remaining risks that that are not addressed in any other allocated reserve. The general continuity reserve should, for example, compensate unforeseen, sudden and temporary stagnation of income or excessive expenses. The Chief Executive Officer and the Supervisory Board have set the general continuity reserve at € 2 million as the minimum necessary.

CONTINUITY AND ALLOCATED RESERVES 31 Dec 2015 Added to Spent 31 Dec 2014Continuity reservesGeneral 2,573,360 510,048 - 2,063,312 Total continuity reserves 2,573,360 510,048 - 2,063,312

Allocated financing- and risk reservesPre-financing 2,000,000 - - 2,000,000 Financing fixed assets 1,537,614 -180,869 - 1,718,483 Programme financing 500,000 - - 500,000 Total allocated financing- and risk reserves 4,037,614 -180,869 - 4,218,483

Allocated reserves for future project spendingCountry programme reservesSri Lanka 426,031 93,563 - 332,468 DR Congo 125,584 73,181 - 52,403 South Sudan - - 32,132 32,132 Uganda 223,433 192,126 - 31,307 Afghanistan 101,272 101,272 - - Burundi 33,547 33,547 - -Middle East Region 11,551 11,551 - -Other 45,500 - 5,310 50,810

966,918 505,240 37,442 499,120

Programme development & innovation 685,606 - 14,394 700,000

Disaster ResponseBalance start book year 961,091 - - 961,091 Spent on emergency project Myanmar -4,366 - 4,366 -From own fund raising (relief campaigns) 22,549 22,549 - -Reallocation reservation fundraising costs 2014 96,052 96,052 - -Allocation reservation fund raising costs 2015 89,317 89,317 - -From programme funds 18,864 18,864 - -

1,183,507 226,782 4,366 961,091

Other allocated reservesVehicle replacement fund 267,529 - 1,396 268,925

Total allocated reserves for future project spending 3,103,560 732,022 57,598 2,429,136

TOTAL 9,714,534 1,061,201 57,598 8,710,931

As fundraising institution, ZOA adheres to the VFI Guideline Financial management charities (Vereniging Fondswervende Instellingen, Richtlijn financieel beheer goede doelen) which prescribes a maximum level of the general continuity reserve per end of 2015. ZOA’s reserve is significantly lower than this maximum.

Allocated reservesThe restriction on spending of the allocated reserve has been determined by the Chief Executive Officer. Allocated reserves do not yet constitute an obligation; the Chief Executive Officer is able to change that restriction. These reserves are reviewed yearly.

Pre-financingClassified as allocated reserve, an amount of € 2.0 million is allocated to be able to pre-finance essential project expenses that either by contractual obligations or by delay in payment by donors require pre-financing by ZOA. Such prefinancing allows ZOA to continue execution of projects at the quality level and pace ZOA deems necessary despite delay in payments by donors. Above a certain threshold, pre-financing is only allowed after explicit consent from the Chief Executive Officer. The amount of this reserve is set by the Chief Executive Officer at € 2 million to be able to cover several prefinancing requests simultaneously.

Financing fixed assets The allocated reserve ‘Financing assets’ of € 1.5 million is meant to counterbalance the financial means that have been used for tangible fixed assets and are therefore not available in cash for other purposes.

Programme financing The allocated reserve ‘Programme financing’ of € 0.5 million is meant to cover increased programmatic risks of prepaid project expenses by ZOA that may be unrecoverable from donors.

Country programme reservesThe allocated reserve ‘Country Programme Reserves’ is meant for programs in the countries mentioned in the table. These reserves have been calculated based on the financial performance of these countries and may be used by these countries for specific projects. Due to positive financial performance over 2015, the allocated reserve has doubled to € 1.0 million.

Programme development & innovation The allocated reserve ‘Programme development & innovation’ was formed end 2014 to be able to invest more in country programme development at the start of these programmes and to finance programme innovation such as urban refugee pilot projects which have been developed and started in 2015 and will

lead to more spending from this reserve in 2016. This reserve is also meant for investments in country programme development at the (re)start of these programmes when cost coverage is still limited and recovery of these start-up costs in later years is uncertain. In 2015, this applied to Myanmar and the Middle East region. In 2016, it will apply to a new country.

Disaster ResponseThis reserve was established because disaster response is a core activity of ZOA. ZOA must be financially able to respond to requests for aid without delay. However, funding drawn from this reserve is considered to be a form of pre-financing that has to be compensated afterwards as much as possible through earmarked donations received through emergency relief campaigns. During 2015, almost all disaster response activities could be compensated afterwards by earmarked donations; therefore, this reserve saw little spending in 2015.

Other allocated reservesOther allocated reserves are created for specific purposes in the programme countries. Currently, this reserve is a reservation in a country to replace already depreciated tangible assets (mainly vehicles) in the near future.

Reserves and funds

RESERVES AND LIABILITIES

6

6

7

7

9 9

8

8

10

10

11

11

12

13

12

13

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The Programme Funds include available financial means that donors or contributors have earmarked for a particular programme or project, either emergency relief or rehabilitation. End of 2015, an amount of € 2.0 million has been added from the non-earmarked surplus over 2015 for which countries will submit project proposals in 2016.

Because private or institutional funding is not always regular, the pattern of income versus spend on projects may fluctuate. Surpluses and deficits will, where possible, be settled within the funds and within projects with a similar goal. The remainder will be added to or withdrawn from other reserves.

Below the explanation of the main balances of programme funds that total € 6.0 million per 31 December 2015 (€ 5.2 million end of 2014).

Ethiopia € 0.7 millionIn 2011, ZOA received € 1.7 million from own fundraising to help people in the Somalia region in Ethiopia. In 2015, another campaign related to the drought added another € 0.3 million. The € 0.7 million not yet spent end of 2015 will be spent in 2016 onwards.

Liberia € 0.4 million In 2014 ZOA started a campaign related to the Ebola crisis in Liberia. The remaining part will be spent in 2016.

Middle East Region € 2.2 millionThis programme fund includes several countries. In 2013 there was a campaign for Jordan and in 2014 for Iraq. In 2015 there was a campaign for Syrian refugees. In 2015 ZOA opened an office in Jordan to serve the country programmes in the Middle East region more effectively. The balance of € 2.2 million end of 2015 is contracted in 2016.

Nepal € 0.6 millionIn 2015 ZOA started a campaign for the victims of the earthquake in April 2015. In 2016, the remaining amount is allocated for earthquake proof housing.

Philippines € 0.5 millionIn November 2013 the Philippines were hit by a cyclone. ZOA, together with other members of the Christian Emergency Relief Cluster, started a campaign to raise money for the victims of this natural disaster. In 2014 we received additional funds from donors and a three year programme was started of which the remaining funds will be spent in 2016.

Uganda € 0.7 millionIn 2015, a large donation was received for a multi-year project; the remainder will be spent 2016 onwards.

PROGRAMME FUNDS 31 Dec 2015 Money received Spent on projects

Re-allocation Contribution reserves

31 Dec 2014

Third PartiesOwn

Fundraising

Afghanistan 69,872 5,139 8,566 56,340 - 14,308 98,199 Burkina Faso - - - 5,340 - - 5,340 Burundi 148,567 - 353,835 335,283 - 19,085 110,930 Congo 42,430 20,556 133,890 205,464 - 30,775 62,673 Ethiopia 733,292 25,000 267,792 482,125 -10,000 188 932,437 Haïti 55,428 - - - - -2 55,430 Liberia 442,288 137,896 159,732 526,427 - 300 670,787 Middle East Region 2,272,517 370,519 1,821,123 865,929 - - 946,804 Myanmar 110,319 5,139 58,809 103,792 -10,000 7,096 153,067 Nepal 612,509 - 1,126,562 514,053 - - - Pakistan - - - 27,925 - - 27,925 Philippines 467,491 - 604 711,579 - - 1,178,466 Sri Lanka 130,398 25,000 89,425 156,782 22,500 -18,775 169,030 South-Sudan 90,382 30,417 62,518 165,576 -139,020 2,347 299,696 Sudan 17,205 - 4,764 165,978 25,635 59,709 93,075 Uganda 656,239 - 786,806 647,892 134,020 61,621 321,684 Ukraine 24,064 - 64,062 40,000 - - - Subtotal 5,873,001 619,666 4,938,488 5,010,485 23,135 176,652 5,125,543

Education/WASH - - 2,500 - -1,983 -3,731 3,214RV Fund 99,858 - 50,000 - -22,500 -2,500 74,858JMB Fund 36,615 - - - 1,348 - 35,267

Subtotal 6,009,474 619,666 4,990,988 5,010,485 - 170,421 5,238,882

Allocated from surplus 2015 2,000,000 - - - - 2,000,000 -TOTAL 8,009,474 619,666 4,990,988 5,010,485 - 2,170,421 5,238,882

Programme funds 14

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Provisions for potential liabilities for costs and claims related to pensions and tax (re)payments in countries and in the Netherlands; it is not clear whether these costs must be paid but a provision is deemed necessary.

In 2015 these provisions have further increased with the potential liabilities over 2015. The provision for maintenance building is for the office in the Netherlands and based on its long-term maintenance plan.

PROVISIONS 31 Dec 2015 31 Dec 2014For liabilities local pensions and taxes 383,029 233,729 For potential tax repayment 111,322 61,254 For maintenance building 25,000 32,000

519,351 326,983

Provisions Short-term liabilities

SHORT-TERM LIABILITIES 31 Dec 2015 31 Dec 2014Taxes and social security Netherlands 199,271 174,532

Accruals to donorsRoyal Netherlands Embassy 2,685,920 949,309 Ministry of Foreign Affairs 2,068,368 5,666,584 DFID 402,626 -EU (ECHO/EUROPEAID) 279,963 1,485,450 ICCO Kerk in Actie 252,136 403,573 UN (OCHA/UNHCR) 146,407 678,096 NIRAS 113,874 -AusAID 88,563 282,428 USAID 81,762 -Japan Embassy 83,531 -Edukans 68,409 -Tear Australia 36,586 34,947 Woord en Daad 6,530 252,667 World Renew (CRWRC) 1,821 51,974 Other donors 132,643 98,701

6,449,139 9,903,728

Other liabilities and accrualsLiabilities countries related to staff 931,320 930,066 Creditors Netherlands 317,813 150,508 Provision annual leave Netherlands 236,278 243,967 Accrual holiday allowance 168,008 161,949 Payable to MF-2 partners - 1,201,261 Other liabilities and accruals countries 667,801 702,911 Other liabilities and accruals Netherlands 269,056 421,462

2,590,276 3,812,124

TOTAL 9,238,686 13,890,348

15

17

18

18

17

16 16

Taxes and social security contributionsDutch taxes and social security contributions due at 31 December 2015 and paid in 2016.

Accruals to donorsInstitutional donor contributions received in advance that will be spent after the year 2015 appear as liabilities. ZOA has received these payments based on programme proposals and contracts . ZOA is required to spend the money accordingly and to return the money to the donor if the commitment is not fulfilled.The total decreased by € 3.5 million, from € 9.9 million to € 6.4 million. This was mainly because the net position outstanding to the Dutch Ministry of Foreign Affairs decreased by € 3.6 million, the net position with Royal Netherlands Embassy increased by € 1.8 million and other positions including EU and UN decreased by net € 1.6 million.

Other liabilities and accruals Payable MFS 2 partnerThe figure end of 2014 was the instalment of MFS funding for the period 2015 already received in December 2014. End of 2015 there was no position.

Liabilities countries related to staffThese liabilities are liabilities towards local staff related to severance pay, pensions and income taxes. These liabilities differ per country and are based on government regulations or customary branch regulations.

Other liabilities and accruals countriesThese liabilities and accruals relate to creditors and costs to be paid in countries.

Off balance sheet liabilitiesLiabilities not presented in the balance sheet per end of book year relate to office rent contracts in countries for short-term (maximum one year) € 203.233 and long-term (between one and five years) € 154.631.

Off balance sheet receivablesIn 2013, a residential house was donated. The previous owner continues to use the house (usufruct). The estimated value of the house end of 2015 is € 0.2 million. 16

Chapter 11Chapter 11

7372

Total income in book yearThe total income of ZOA increased from € 44.1 million in 2014 to € 64.7 million in 2015, so a large increase of € 20.6 million. Excluding project grants for consortia partners, income increased from € 36 million in 2014 to € 47.3 million In 2015, so a substantial increase of € 11.3 million or 31% .

With the exception of income from third party campaigns, all income components saw an increase over 2015. The income components are detailed and explained below.

Income from own fundraising increased by € 2.7 million or 32% from € 8.4 million in 2014 to € 11.1 million in 2015. The increase for not-earmarked income was € 1.0 million and for earmarked income € 1.7 million.

11.9 EXPLANATORY NOTES TO THE STATEMENT OF INCOME AND EXPENDITURE

INCOME OWN FUNDRAISING ACTIVITIES Actual 2015 Budget 2015 Actual 2014Not earmarkedDoor to door collection 845,303 855,000 856,714

Legacies 1,027,835 300,000 552,183

Contribution, donations, gifts 4,174,090 3,519,600 3,681,341 6,047,228 4,674,600 5,090,238

55% 61% 61%EarmarkedContribution, donations, giftsFor reconstruction 2,716,883 2,210,400 1,824,384 For emergency campaigns 2,296,654 750,000 1,467,694

5,013,537 2,960,400 3,292,078 45% 39% 39%

TOTAL 11,060,765 7,635,000 8,382,316

Income own fund raising activities 19

Not-earmarked Door-to-door collection 2015 was in line with actual income in 2014 and the budget 2015. The main contributor to the increase was the income from legacies that again almost doubled in 2015 compared to 2014. As explaned in the accounting principles, legacies are recorded as income based on the ‘akte van scheiding en deling’ as per 2015. Until 2015, they were recorded only upon actual receipt. If recorded only upon actual receipt, the income figure for legacies 2015 would be € 565,000 lower at € 462,835. In addition, not only the earmarked (see below) but also the not earmarked general contributions, donations and gifts increased, also because there were effective not-earmarked emergency campaigns not directly earmarked for a specific country or project. This increased not-earmarked income

was one of the main contributors to the large overall surplus of ZOA over 2015. An amount of € 2.0 million of that surplus was earmarked at the end of 2015 by allocation to the Programme fund for future project spending in countries.

EarmarkedEarmarked income increased by € 1.7 million in both categories: reconstruction (€ 0.9 million increase) as well as emergency campaigns (€ 0.8 million increase).

Earmarked campaigns with high income in 2015 were those for refugee crisis in Syria (€ 1.8 million) and earthquake victims Nepal (€ 1.1 million), making up € 2.9 million or 60% of the total earmarked income of € 5.0 million.

INCOME FROM THIRD PARTY CAMPAIGNS Actual 2015 Budget 2015 Actual 2014EO Metterdaad 365,992 366,500 Happy Gift 100,000 60,000 Deputaatschap Bijzondere Noden 68,674 77,000 Aqua for All 25,000 13,334 Red een Kind -20,000 20,000 Lakarmissionen - 315,958 Draagt Elkanders Lasten - 245,000 Kerk in Actie - 44,920 Eriksjhalpen - 40,062 Kerkelijk Bureau Hersteld Hervormde Kerk - 22,516 Deputaatschap CGK - 7,500 Other 80,000 1,000

619,666 1,000,000 1,213,790

PROJECT GRANTS FOR CONSORTIA PARTNERS Actual 2015 Budget 2015 Actual 2014MFS-DCR with Healthnet TPO, Care en Save The Children 7,327,282 7,686,330 8,073,743 BUZA-DRA voor Syria Joint Response 9,672,516 - -DFID consortium in Sudan 352,155 - -

17,351,953 7,686,330 8,073,743

Income from third party campaigns Project grants for consortia partners20 21

These amounts concern income from campaigns by fundraising organisations in the Netherlands in support of ZOA programmes and projects. This income component was the only one that saw a decrease over 2015 for a total of € 0.6 million, mainly because

Låkarmissionen contributed € 0.3 million in 2014 for Ebola and Draagt Elkanders Lasten € 0.2 million in 2014 for specific campaigns. Neither contributed in 2015.

If and when ZOA is the lead partner in a consortium , ZOA has legal responsibilities for such a consortium as a whole and is obliged to report the full consortium income as well as expenses. Therefore, the amounts for consortia shown in the income appear also in the expenses.

The BUZA-DCR consortium under the lead of ZOA consists of the contractual income of the DCR partners CARE Nederland, Save the Children and Healthnet TPO. This consortium ended end of 2015.In 2015, new consortia were formed with ZOA in the lead. The BUZA-DRA

consortium ran up to January 2016 and saw a further extension in 2016 for one year up to 2017.The DFID consortium under the lead of ZOA Sudan started in 2015 for a period of four years.

Chapter 11Chapter 11

INCOME

7574

This income reflects contributions from the Dutch and international governments, the European Union and United Nations organisations, such as UNHCR, UNDP, UNICEF, WFP and others. Whether donors are willing to contribute to an emergency situation or reconstruction project during the year and for what amount is difficult to anticipate in the budget. However, actual figures 2015 of € 34.7 million were close to the budget for 2015 at € 32.4 million. Compared to 2014, income from institutional donors has increased considerably by € 8.4 million or 32% from € 26.3 million to € 34.7 million in 2015.

The part of income that was received from the Dutch Ministry of Foreign Affairs in The Hague, including Embassies, continued to increase to 51% in 2015 (2014: 49% and 2013: 45%). This part is expected to drop considerably in 2016 when both MFS-2 and Reconstruction will have finished and any replacement funding will be less.

Changes between donors can be explained by their change in priorities in the choice of geographical areas and sectors where they work. It is ZOA’s policy to partner with donors when their priorities meet the programme goals and mandate of ZOA.

PROJECT GRANTS FROM INSTITUTIONAL DONORS Actual 2015 Budget 2015 Actual 2014DMH/VG (Reconstruction) 5,890,210 5,251,824DMH/VG (MFS-2) 4,801,298 4,762,608DMH/VG (MFS-2 through CARE) 446,661 135,820DMH/VG (Protacted Crisis) 1,595,114 389,000DMH/VG (Other) - 82,967DSH-HH (Joint Response) 3,703,963 -DSH-HH (Emergency) 162,812 -Subtotal 16,600,058 9,271,855 10,622,218Royal Netherlands Embassy Burundi 813,582 635,654Royal Netherlands Embassy Ethiopia 236,460 282,461Royal Netherlands Embassy Liberia 51,750 72,981Royal Netherlands Embassy Yemen - 754,620Royal Netherlands Embassy Sudan - 410,165Subtotal 1,101,792 3,709,312 2,155,880Total Dutch Ministry of Foreign Affairs donors 17,701,850 12,981,167 12,778,098Europe Aid 3,453,771 3,056,649ECHO 455,115 -22,572Total EU donors 3,908,886 3,389,462 3,034,078United Nations Development Programme (UNDP) 719,160 895,958United Nations (OCHA) 123,419 -United Nations Office for Project Services (UNOPS) 118,015 -UNHCR - Ethiopia 1,820,662 783,203UNHCR - Sri Lanka 27,162 7,203UNHCR - Afghanistan - 12,156Food and Agriculture Organisation (FAO) 522,790 244,699World Food Programme (WFP) 201,617 11,643UN Emercency Relief Fund (ERF) - 106,219UNICEF - Liberia 482,045 -UNICEF - Ethiopia 479,841 49,445UNICEF - Sudan 395,635 155,882UNICEF - South Sudan 108,308 -UNICEF - Sri Lanka 74,482 -Total UN donors 5,073,136 4,216,515 2,266,406

PROJECT GRANTS FROM INSTITUTIONAL DONORS (CONTINUED) Actual 2015 Budget 2015 Actual 2014U.S. Agency for International Development (USAid) 1,777,201 3,331,084Australia Government Aid Programme (AusAid) 1,316,551 1,004,363Ministry of Rural Rebabiliation & Development (MRRD / Afghanistan) 881,060 1,204,173Department for International Development (DFID) of the United Kingdom 302,084 93,499Japenese Embassy 85,595 -Swiss Embassy - 13,442Australian Embassy - 22,222Total Governmental donors 4,362,491 5,346,780 5,668,783Catholic Relief Service 6,490 -Cordaid 125,000 -Diaconia 27,915 145,753Dorcas - 290,000Habitat for Humanity Sri Lanka (HFHSL) 24,780 -ICCO / Kerk in Actie 858,289 680,887International Fertilizer Development Center (IFDC) 67,336 -International Rescue Committee 26,474 -Koornzaaier 20,836 89,118Mercy Corps 108,569 -MWH Foundation - 10,626Niras International Consulting (NIC) 512,364 -NWO-WOTRO 156,635 -PLAN international Ethiopia - 59,286Red een Kind 20,000 150,028TEAR Australia 71,311 34,557Woord en Daad 785,057 426,264World Renew (CRWRC) 802,740 567,570Other 6,328 58,904Total Others 3,620,125 6,440,457 2,512,993

TOTAL PROJECT GRANTS 34,666,488 32,374,381 26,260,358

Project Grants from institutional donors 22

Chapter 11

7776

RATE DIFFERENCES AND OTHER INCOME Actual 2015 Budget 2015 Actual 2014Currency exchange and recalculation gains 703,423 - 159,783 Release of 2014 provision fund raising cost 96,052 - -Other 46,311 - -114,389

845,786 - 45,394

EXPENSE STRUCTURE OF THE ORGANISATION Actual 2015 Budget 2015 Actual 2014Spent on objectives in countries excl. consortia

86,9% 86,4% 83,7%

Education and awareness 1,2% 1,2% 1,4%Programme preparation and coordination in The Netherlands

4,8% 5,2% 6,3%

Total spent on objectives 92,9% 92,9% 91,4%

Fundraising costs 4,2% 4,2% 5,4%Costs of management and administration 2,9% 2,9% 3,2%TOTAL COSTS OF THE

ORGANISATION100,0% 100,0% 100,0%

SPENT ON OBJECTIVES Actual 2015 Budget 2015 Actual 2014Projects Spent through consortium partners 17,351,953 7,686,330 8,073,743

Own spent on objectives in countriesAfghanistan 2,954,122 2,481,871 3,091,929 Burundi 3,052,709 2,837,496 2,477,905 Congo 3,731,241 4,473,337 2,890,723 Ethiopia 4,322,674 4,063,003 2,855,403 Liberia 3,305,754 1,164,692 1,396,391 Middle East Region 3,548,235 1,272,479 1,287,327 Myanmar 1,672,893 1,973,000 580,342 Nepal 492,059 - - Pakistan 25,000 - 13,999 Philippines 731,570 569,248 892,323 Sri Lanka 2,265,216 2,689,743 3,790,984 South Sudan 4,291,192 4,107,296 2,758,910 Sudan 4,878,991 7,107,159 2,968,305 Thailand - - 122,246 Uganda 2,538,918 2,392,029 2,606,211 Ukraine 40,000 - - Other 9,460 2,147,880 106,862

37,860,034 37,279,233 27,839,860

Own spent on objectives from The NetherlandsPreparation and coordination Netherlands 2,093,092 2,259,888 2,092,959 Education and Awareness raising Netherlands 519,809 532,112 453,858

2,612,901 2,792,000 2,546,817

57,824,889 47,757,563 38,460,420

Rate differences and other income

Expense structure of the organisation

Spent on objectives in countries23 24

Spent on objectives in countriesThe figures for spent on objectives in countries show a considerable increase of € 10 million or 36% from € 27.9 million in 2014 to € 37.9 million in 2015.

This increase is caused by increases in almost all countries. The highest increase in expenditure was in Middle East Region (€ 2.3 million increase), followed by Sudan and Liberia ( both € 1.9 million increase) and Ethiopia and South Sudan (both € 1.5 million). There was only one country with expected, significant less expenditure: Sri Lanka with € 1.5 million decrease.

The budget of ZOA is drawn up in September and is based on contract portfolio and opportunities known at that time. During the financial year ZOA is dependant on the situation in the country, government approvals and approval of donors to start programme activities. The implication is that projects start later or with lower budget than initially planned. However, for 2015 the figures show that the budgeted total amount of € 37.3 million has been overreached by actual expenditure of € 37.9 million.

Projects spent through consortium partnersIf and when ZOA is the lead partner in a consortium, ZOA has certain legal responsibilities for such a consortium as

a whole and is obliged to report the full consortium income as well as expenses. Therefore, the amounts for consortia shown in the income above appear here as expenses.

The currency exchange and recalculation gains show a large increase over 2015. This increase is mainly caused by US dollar positions. Due to a stronger US dollar, the value of these positions expressed in Euros increased, leading to currency gains.

The provision for fund raising costs related to disaster response activities was stopped in 2015. The remaining balance up to 2014 was released and shown here as income previous years; the amount has been added to the disaster response reserve.

Chapter 11Chapter 11

Total expenses in book yearWhile income increased by a total of € 20.6 million, expenses increased by € 19.6 million from € 41.3 million in 2014

to € 60.9 million in 2015. The types of expenditure expressed in a % of the total, excluding expenditure through consortia partners, are shown in the table.

EXPENDITURES

PREPARATION AND COORDINATION NETHERLANDS

Actual 2015 Budget 2015 Actual 2014

Preparation and coordination cost Netherlands

1,577,419 1,735,817 1,579,234

MFS-2 coordination costs 406,136 302,542 325,283RECON coordination costs 98,385 182,390 188,442Protracted crisis coordination costs 11,154 39,139PREPARATION AND

COORDINATION NETHERLANDS2,093,093 2,259,888 2,092,959

Preparation and coordination from the Netherlands 25

Preparation and Coordination in The NetherlandsThis heading includes the costs of the Programme Department, Disaster Response unit and Audit & Evaluation. Partly included are costs of the unit Finance and Administration. Costs for MFS-2, RECON and Protracted crisis are also included and mentioned separately in the table.

MFS-coordination costs increased due to extra end of MFS activities that were charged to 2015, the last year of MFS. RECON coordination costs decreased due to postponement of RECON activities into the year 2016. The total costs in 2015 remained at the same level as 2014, at € 2.1 million.

7978

Standard for Costs of management and administrationBased on ZOA’s specific operations and the resulting managerial and administrative responsibilities, the Chief Executive Officer has set the standard for management and administration costs at 4.0%. In 2015, actual costs are 2.9% so almost 30% below the standard.Costs of management and administration are the costs the organisation incurs for

(internal) management and organisation paid in/ from the Netherlands that cannot directly be allocated to objectives or fundraising. These costs include a % of several cost categories as shown in the table ‘Cost allocation to management and administration’. As a percentage of total costs, the management and administration costs decreased from 3.6% in 2013 to 3.2% in 2014 and further to 2.9% in 2015.

MANAGEMENT AND ADMINISTRATION FROM THE NETHERLANDS

Actual 2015 Budget 2015 Actual 2014

Total costs management and administration

1,248,418 1,246,992 1,061,805

Total costs man. and admin. in percentage of total costs excl. consortia 2,9% 2,9% 3,2%

Management and administration from The Netherlands 28

Chapter 11Chapter 11

SPENT ON FUNDRAISING Actual 2015 Budget 2015 Actual 2014Expenses own fundraising (1) 1,487,599 1,455,873 1,467,313Expenses participation in external campaigns

60,315 69,689 49,667

Expenses received project grants 286,334 297,342 276,625Total spend on fundraising (2) 1,834,248 1,822,904 1,793,605

Total income own fundraising 11,060,765 7,635,000 8,382,316

Expenses own fundraising (1) in percentage of own fundraising income (CBF%)

13,4% 19,1% 17,5%

Total spend on fundraising (2) in percentage of total income excl. consortia 3,9% 4,4% 5,0%

Spent on fundraising 27

For 2015, the cost rate of fundraising (the ‘CBF-percentage’) decreased significantly to 13.4% from 17.5% over 2014. With the same level of expenditure, significantly more income was realised, thus leading to a decrease in the % to 13.4%. By this decrease, the policy to reduce the own

fundraising percentage gradually to 14% by 2018, has been realised already in one year.Costs for raising project grants refer to the Institutional Relations unit that assists countries to obtain institutional donor grants.

Education and awareness raisingEducation and awareness raising is one of the statutory objectives of ZOA. Costs include the costs for education and raising

awareness of young people at schools, the general public and of ZOA constituents in particular. Expenditure in 2015 was according to budget.

26

COST ALLOCATION TO MANAGEMENT AND ADMINIS-TRATION

% Explanation

Allocation only from ZOA Netherlands departmentsDepartment Management & Finance -building and depreciation

pro rata Percentage for 2015 was 23% based on budget

Department Management & Finance - unit Fin Netherlands and IT

100

Department Management & Finance - other 50 Other 50% allocated to preparation and coordination

Unit Support and Communication 15 This part is allocated for corporate communciation

Department Human Resources pro rata Percentage for 2015 was 23% based on budget

Department CEO and management support 100Supervisory Board 100

Cost allocation to management and administration

8180

Remuneration Supervisory Board and Chief Executive Officer Remuneration external auditor

REMUNERATION CHIEF EXECUTIVE OFFICER

Actual 2015 Actual 2014

Name J. MooijFunction Chief Executive OfficerEmploymentKind (validity) permanent permanenthours / week 40 40PT-percentag 100% 100%period 1/1 - 31/12 1/1 - 31/12Remuneration (EUR)Gross salary 92,690 91,035Vacantion bonus 7,415 7,283End-of-year bonus 7,724 7,586Total gross salary 107,829 105,904Social premiums 8,588 8,693Pension premiums 14,716 15,092

131,133 129,689

REMUNERATION EXTERNAL AUDITOR

Actual 2015 Actual 2014

Remuneration (EUR)Consolidated financial accounts 54,804 49,083Other audit assignments 18,682 5,225Fiscal advisory servicesOther non audit services

73,487 54,308

ZOA’s Supervisory Board member’s receive no remuneration. They receive reimbursement for expenses on actual cost basis.

The remuneration of the CEO has been set guided by the BSD-scales for CEO’s of the VFI/Goede Doelen Nederland (GDN), the Dutch fundraising institutions association.

Based on his responsibilities and the scope of his work, the CEO belongs in scale J which is the second highest scale. The actual gross salary of € 107,829 is only 77% of the maximum norm gross salary of € 140,046 that is applicable for scale J until 2015 and only 74% of the maximum of € 145,000 that is applicable from 2016 onwards.

Other audit assignments are project audits that cannot be allocated to specific project budgets in countries. In countries, (local) project audit costs are charged to project or country budgets and are subsequently represented as programme costs in these financial statements ; these are not included in the table above.

Number of staffAs per 31 December 2015 ZOA employed 883 people based on headcount (2014: 865).

Appropriation of surplusThe surplus has been appropriated according to the breakdown indicated in the Statement of Income and Expenditures.

Chapter 11

Costs are allocated to the prescribed categories: Objectives, Fundraising costs and Management and administration costs according to the ‘Recommendation application of RJ 650 for costs management and administration’ of VFI / Goede Doelen Nederland, the Dutch branch organisation for fund raising institutions.

Costs have been allocated according to the following criteria:

A) Spent on objectives in programmes in countriesThis € 37.9 million is expenditure in the ZOA countries, related to direct project costs including personnel costs of posted fieldworkers and the office

expenses on location. The expenditure is directly related to the implementation of the projects in countries (outside the Netherlands). Costs of ZOA offices in countries are fully accounted for under this objective.

B) Spent on objectives in/from the NetherlandsCosts that are directly attributable to the implementation of the objectives or that contain a statutory objective of ZOA: • The preparation and coordination costs from The Netherlands for € 2.1 million. These costs contain mainly the costs of the Programme department, unit Finance support to countries and the Disaster Response Unit and a proportion of costs of other departments.

• The direct costs relating to information and awareness raising for € 0.5 million, which is a statutory ZOA objective.

C) Direct costs of own Fundraising, campaigns by third parties and raising projects grants for together € 1.8 million.

D) Costs allocable to Management & Administration. Expenditure in the departments in the Netherlands that cannot be directly allocated to either objectives or fundraising. These expenditures for in total € 1.3 million consist of so-called mixed costs that are allocated to Management and Administration for a specific % per department. These %% have been established based on prudency criteria

(number of work places, deployment of staff, etc.) and according to consistent policy. In 2014 ZOA implemented a structure with departments subdivided in units with a simplification in their budgeting structure per department. In 2015 this allocation structure was expanded to management and administration, as shown below.

Attribution of costs 2015

ATTRIBUTION OF COSTS 2015

Fundraising Programmes Education Coordination Own Third Parties Subsidies Costs of ma-

nagement and administration

Total 2015 Budget 2015 Total 2014

Own programmes/projects 28,163,332 166,087 - - - - - 28,329,420 27,186,067 20,134,952Personnel costs 9,235,516 307,909 1,625,763 618,604 48,493 178,619 866,821 12,881,724 13,653,201 10,848,657Direct costs - - - 540,812 8,750 96,414 - 645,977 778,000 779,943Accommodation costs - 5,851 39,730 12,316 1,047 3,863 19,081 81,888 77,500 72,018Office costs and other general costs - 33,314 382,455 301,872 835 3,049 253,903 975,428 763,811 669,413Audit Costs and Annual Report - - - - - - 86,995 86,995 81,550 73,221Depreciation and interest 461,186 6,648 45,144 13,994 1,190 4,389 21,619 554,170 601,000 663,883TOTAL 37,860,035 519,809 2,093,092 1,487,599 60,315 286,334 1,248,418 43,555,602 43,141,129 33,242,087

Project Spent through MFS-2 partners 17,351,953 - - - - - - 17,351,953 7,686,330 8,073,743TOTAL INCL. MFS 55,211,988 519,809 2,093,092 1,487,599 60,315 286,334 1,248,418 60,907,555 50,827,459 41,315,830

Chapter 11

8382 Chapter 11

Our opinionIn our opinion the accompanying financial statements give a true and fair view of the financial position of Stichting ZOA as at 31 December 2015, and of its result for the year then ended in accordance with the Guideline for annual reporting 650 ‘Fundraising Organ-isations’ of the Dutch Accounting Standards Board.

What we have auditedWe have audited the accompanying financial statements 2015 as set out on pages 56 - 81 of Stichting ZOA, Apeldoorn.

The financial statements comprise:

• the balance sheet as at 31 December 2015;

• the statement of income and expenditure for the year then ended;

• the notes, comprising the accounting poli-cies and other explanatory information.

The financial reporting framework that has been applied in the preparation of the financial statements is the Guideline for annual report-ing 650 ‘Fundraising Organisations’ of the Dutch Accounting Standards Board. The basis for our opinionWe conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those

standards are further described in the section ‘Our responsibilities for the audit of the finan-cial statements’ of our report.

We are independent of Stichting ZOA in accordance with the ‘Verordening inzake de onafhankelijkheid van accountants bij assur-ance opdrachten’ (ViO) and other relevant independence requirements in the Nether-lands. Furthermore, we have complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA).

We believe that the audit evidence we have obtained is sufficient and appropriate to pro-vide a basis for our opinion. Responsibilities of Executive BoardThe Executive Board is responsible for:

• the preparation and fair presentation of the financial statements and for the preparation of the annual report, both in accordance with the Guideline for annual reporting 650 ‘Fundraising Organisations’ of the Dutch Accounting Standards Board; and for

• such internal control as the Executive Board determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

As part of the preparation of the financial statements, the Executive Board is responsi-ble for assessing the organisation’s ability to continue as a going-concern. Based on the financial reporting framework mentioned, the

Executive Board should prepare the financial statements using the going-concern basis of accounting unless the Executive Board either intends to liquidate the organisation or to cease operations, or has no realistic alterna-tive but to do so. The Executive Board should disclose events and circumstances that may cast significant doubt on the organisation’s ability to continue as a going-concern in the financial statements.

The Supervisory Board is responsible for over-seeing the organisation’s financial reporting process. Our responsibilities for the audit of the financial statementsOur responsibility is to plan and perform an audit engagement to obtain sufficient and appropriate audit evidence to provide a basis for our opinion. Our audit opinion aims to provide reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assurance is a high but not absolute level of assurance which makes it possible that we may not detect all misstatements. Misstatements may arise due to fraud or error. They are considered to be material if, individually or in the aggregate, they could reasonably be expected to influ-ence the economic decisions of users taken on the basis of the financial statements.

A more detailed description of our responsibil-ities is set out in the appendix to our report.

Announcement with respect to the annual reportWe have read the annual report in order to identify material inconsistencies, if any, with the audited financial statements. Based on reading the annual report we confirm, to the extend we can assess, that the annual report is consistent with the information in the financial statements and that the annual report contains all information required by Guideline for annual reporting 650 ‘Fundraising Organ-isations’ of the Dutch Accounting Standards Board. We have not audited or reviewed the information in the annual report.

Utrecht, 23 June 2016PricewaterhouseCoopers Accountants N.V.Original signed by drs. W.A. van Ginkel RA

In addition to what is included in our auditor’s report we have further set out in this appendix our responsibilities for the audit of the financial state-ments and explained what an audit involves.

The auditor’s responsibilities for the audit of the financial statementsWe have exercised professional judgement and have maintained professional scepticism throughout the audit in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Our audit consisted, among others of the following:• Identifying and assessing the risks of material

misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, inten-tional omissions, misrepresentations, or the intentional override of internal control.

• Obtaining an understanding of internal control relevant to the audit 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 organisation’s internal control.

• Evaluating the appropriateness of account-ing policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Concluding on the appropriateness of the Executive Board’s use of the going-concern basis of accounting, and based on the audit evidence obtained, concluding whether a ma-terial uncertainty exists related to events and/or conditions that may cast significant doubt on the organisation’s ability to continue as a going-concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report and are made in the con-text of our opinion on the financial statements as a whole. However, future events or condi-tions may cause the organisation to cease to continue as a going-concern.

• Evaluating the overall presentation, structure and content of the financial statements, includ-ing the disclosures, and evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

INDEPENDENT AUDITOR’S REPORT To: the Supervisory Board and the Chief Executive Officer of Stichting ZOA

REPORT ON THE FINANCIAL STATEMENTS 2015

APPENDIX TO OUR AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS 2015 OF STICHTING ZOA

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In comparison to the budget 2015 and the real figures over 2014, the changes into the actual surplus of 2015 can be explained as follows.

Comparison to budget 2015The actual surplus over 2015 was € 5.8 million higher than budgeted for the following three reasons:

First, income from own fundraising was considerably higher than budgeted (€ 3.5 million). All income components

showed an increase with a large increase for emergency campaigns for Nepal and Syria that were obviously not budgeted for. The only component that showed a decrease was income from third party campaigns (€ - 0.4 million). Also project grant income increased with € 2.3 million above budget. This total increase of € 5.4 million income above budget was only spent for € 0.7 million above budget within the year 2015. So € 4.7 contributed to the surplus, to be spent in 2016.

Secondly, mainly rate difference income was € 0.9 million above budget due to favourable currency rates on US Dollar positions.

Thirdly, expenses related to Preparation and Coordination were € 0.2 million lower than budget. The € 4.7 million, € 0.9 million and € 0.2 million add up to € 5.8 million above budget.

Comparison to real 2014The actual surplus over 2015 was € 1.1 million higher than the surplus over 2014 for the following three reasons:

First, income from own fundraising was considerably higher than 2014 (€ 2.7 million). Also compared with 2014, all income components showed an increase with € 1.0 million increase unearmarked (of which € 0.5 million increase in legacies) and with € 1.7 million for earmarked reconstruction and emergency campaigns. The only component that showed a decrease compared to 2014 was income from third party campaigns (€ - 0.6 million).Project grant income in 2015 increased steeply with € 8.4 million above 2014. So the total increase of income 2015 above 2014 was € 10.5 million. The total increase of spent on objectives in countries for 2015 above 2014 was € 10.2 million. So net € 0.3 more was contributed more to the surplus of 2015 compared to 2014. Secondly, mainly rate difference income was € 0.9 million above 2014 due to favourable currency rates on US Dollar positions in 2015.Thirdly, expenses related to Management and Administration increased slightly compared to 2014 with € 0.1 million. The € 0.3 million, € 0.9 million minus € 0.1 million add up to € 1.1 million above 2014.

11.10 ANNEX A COMPARISON REAL 2015 WITH BUDGET 2015 AND REAL 2014

ACTUAL 2015 AGAINST BUDGET 2015 (* € MILLION) Actual 2015 Budget 2015 Deviation to budget

Actual 2014 Deviation to 2014

Income own fundraising activities 11,1 7,6 3,5 8,4 2,7 Income from third party campaigns 0,6 1,0 -0,4 1,2 -0,6

- - Project grants consortia partners 17,3 7,7 9,6 8,1 9,2 Project grants from institutional donors 34,7 32,4 2,3 26,3 8,4

- - Interest, rate difference and other income 1,0 0,1 0,9 0,1 0,9 Total income 64,7 48,8 15,9 44,1 20,6

- - Spent project grants consortia partners 17,3 7,7 9,6 8,1 9,2 Own spent on objectives in countries 38,0 37,3 0,7 27,8 10,2

- - Preparation and coordination 2,1 2,3 -0,2 2,1 - Education and awareness 0,5 0,5 - 0,5 - Spent on objectives 57,9 47,8 10,1 38,5 19,4

Spent on fundraising 1,8 1,8 - 1,8 - Management and administration 1,2 1,2 - 1,1 0,1 Total expenditure 60,9 50,8 10,1 41,4 19,5

SURPLUS 3,8 -2,0 5,8 2,7 1,1

Actual 2015 against budget 2015 (* € million)

11.11 ANNEX B BUDGET 2016

The consolidated budget for 2016 shows an expected decrease in income from total € 65 million realized in 2015 to € 52 million budgeted for 2016. The main reasons for this decrease are the ending of MFS-2 funding by BUZA end of 2015 and the ending of Reconstruction funding by BUZA during 2016. In general, actual income is difficult to predict because it depends on the income received for emergencies that evolve during the book year and upon the willingness of institutional donors to award contracts to ZOA.

The budgeted expenditure on objectives,

excluding consortia partners, remains with € 38 million at the same level as realized in 2015. Budgeted expenditure includes € 4,5 million for project spending in 2016 that has been received and reported as income already in 2015. These expenses will be reported as spent on objectives in 2016, thus leading to a budget deficit of expenses over income of € 4,5 million.

The costs for fundraising and for management and administration are budgeted at approximately the same level as realized in 2015.

Chapter 11Chapter 11

INCOME Budget 2016 Actual 2015 Actual 2014Income own fundraising activities Door to door collection 850,000 845,303 856,714Legacies 400,000 1,027,835 552,183Contribution, donations, gifts 7,750,000 9,187,627 6,973,419

9,000,000 11,060,765 8,382,316

Income from third party campaigns 1,100,000 619,666 1,213,790

Project GrantsProject grants for consortia partners 12,775,000 17,351,953 8,073,743From institutional donors 28,937,747 34,666,488 26,260,358

41,712,747 52,018,441 34,334,101

Interest 100,000 137,092 91,566

Rate differences and other income - 845,786 45,394

TOTAL INCOME 51,912,747 64,681,750 44,067,167

EXPENDITURES Budget 2016 Actual 2015 Actual 2014Spent on objectives Spent on Objectives in CountriesProject grants to consortia partners 12,775,000 17,351,953 8,073,743Own spending on objectives 37,721,835 37,860,034 27,839,860

50,496,835 55,211,987 35,913,603

Preparation and Coordination from the Netherlands 2,399,113 2,093,093 2,092,959

Education/Awareness raising 440,041 519,809 453,858

53,335,989 57,824,889 38,460,420

Spent on fundraising Expenses own fundraising 1,385,408 1,487,599 1,467,313Expenses participation in external campaigns 10,348 60,315 49,667Expenses received project grants 434,419 286,334 276,625

1,830,175 1,834,248 1,793,605

Management and Administration 1,229,389 1,248,418 1,061,805

TOTAL EXPENDITURES 56,395,553 60,907,555 41,315,830

SURPLUS/-DEFICIT -4,482,806 3,774,195 2,751,337

ADDED TO/WITHDRAWN FROM Budget 2016 Actual 2015 Actual 2014Programme FundsAdded for future project spending -3,500,000 2,770,590 736,783

Allocated reservesAdded for future project spending: Disaster Response -250,000 222,414 284,638Programme development & innovation -500,000 -14,394 600,000Country programme reserves -250,000 467,798 242,892Other -1,391 1,396

-1,000,000 674,427 1,128,926Added to financing- and risk reserves:Program financing - - 500,000Financing assets - -180,869 1,718,483pre-financing projects - - 2,000,000

- -180,869 4,218,483

Continuity reservesAdded to general continuity reserve 17,194 510,047 -3,332,855

TOTAL CHANGE IN

RESERVES AND FUNDS-4,482,806 3,774,195 2,751,337

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In Addis Abeba, we are implementing one of our three pilot projects to support urban refugees. More than half of all refugees worldwide find refuge in urban areas. Often their circumstances are hard: no papers, no ac-cess to healthcare or education, no social connections. As illegal persons they are vulnerable to exploitation, imprisonment and deportation. Many of these refugees need help. Like Eden and Tesfalem.

Nine years ago, Eden escaped from Eritrea, the country ‘ruled by fear’. Now she lives in a small street on the outskirts of Ad-dis Abeba, together with her husband Tesfalem. He was the one who fled the country first. When the Eritrean government wanted to know the whereabouts of her husband, Eden fled too, holding her six month old baby to her heart. It was very dangerous, and though the baby now is a healthy ten year old school boy, Eden‘s eyes still fill with tears when she re-counts the story. Her parents still live in Eritrea, but contact is impossible. The couple survive by doing odd jobs, very much welcoming the financial support they receive through one of ZOA’s partners.

Urban refugees

© 2016

ZOAP.O. Box 41307320 AC ApeldoornThe NetherlandsT +31 (0)55 36 63 339F +31 (0)55 36 68 799E info@zoa.nl

Supervisory BoardDr. ir. H. Paul MPA, chairmanDrs. B. Brand MPA MCMDrs. J. Kamphorst MPAMr. B.J. van Putten, LL.M

Chief Executive OfficerJ. Mooij MBA

ING account number (for transfers in The Netherlands): NL46 INGB 0000 0005 50

ZOA is registered with the Chamber of Commerce under number: 41009723

Text Xxx

Photography Xxx

Design IDD concept.communicatie.creatie I www.idd.nu

Printed by drukkerij De Bunschoter

The information in this report may be reproduced (exluding the photos), provided ZOA is notified and this Annual Report is acknowledged as the source, ZOA would like to receive a copy of the publication.

Colophon

The cover photo xxx

In Addis Abeba, we are implementing one of our three pilot projects to support urban refugees. More than half of all refugees worldwide find refuge in urban areas. Often their circumstances are hard: no papers, no ac-cess to healthcare or education, no social connections. As illegal persons they are vulnerable to exploitation, imprisonment and deportation. Many of these refugees need help. Like Eden and Tesfalem.

Nine years ago, Eden escaped from Eritrea, the country ‘ruled by fear’. Now she lives in a small street on the outskirts of Ad-dis Abeba, together with her husband Tesfalem. He was the one who fled the country first. When the Eritrean government wanted to know the whereabouts of her husband, Eden fled too, holding her six month old baby to her heart. It was very dangerous, and though the baby now is a healthy ten year old school boy, Eden‘s eyes still fill with tears when she re-counts the story. Her parents still live in Eritrea, but contact is impossible. The couple survive by doing odd jobs, very much welcoming the financial support they receive through one of ZOA’s partners.

Urban refugees

© 2016

ZOAP.O. Box 41307320 AC ApeldoornThe NetherlandsT +31 (0)55 36 63 339F +31 (0)55 36 68 799E info@zoa.nl

Supervisory BoardDr. ir. H. Paul MPA, chairmanDrs. B. Brand MPA MCMDrs. J. KamphorstMrs. Drs. J.J.A. Olij - HaakMr. B.J. van Putten, LL.M

Chief Executive OfficerJ. Mooij MBA

ING account number (for transfers in The Netherlands): NL46 INGB 0000 0005 50

ZOA is registered with the Chamber of Commerce under number: 41009723

Text Els Sytsma, Inge van der Weijden and Addie van Dalen, with regards to Bertil Moraal and Hetty Vonk.

Photography Hans en Lidy Fotografie: cover, p.17, p, 36/37, p.54/55, p.62 I Jaco Klamer: p.4, p. 42/43, p. 52 I Daan Meeusen: p.21 I Sumaya Agha: p. 38/39 I Wilma Steenbeek: p.79 I Grzegorz Litynski: back cover. Other pictures: ZOA or private collections.

Design IDD concept.communicatie.creatie I www.idd.nu

Printed by drukkerij De Bunschoter

The information in this report may be reproduced (exluding the photos), provided ZOA is notified and this Annual Report is acknowledged as the source, ZOA would like to receive a copy of the publication.

Colophon

The cover photo is made in Northern Iraq during distributions of non-food items to displaced Yezidi families, made by Hans en Lidy Fotografie.

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