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Integration
&
CEVI
Community Economic Ventures, Inc.
NUAL REPORT
TABLE OF CONTENTS
Introduction
3.....General Introduction About Microfinance & VisionFund
4.....Country Specific and MFI Introduction
5.....Client Image with Accompanying Client Story
Summary
6.....Fiscal Year MFI Highlights
7.....Achievements for the Year
8.....Endorsing Quote from MFI Senior Leadership Person
Overview
9.....Who is VisionFund and How Does VisionFund Work?
9.....Commentary on Global Network (including VFI and WVI)
10...What is Microfinance?
Governance
12....Message from Scott Brown
14....Message from Board Member Chairperson
15....Message from MFI CEO
16....Board of Directors
Operations
19....Areas of Operation
20....How Does the MFI Operate
21....Product Portfolio
22....General Introduction to Unique Holistic Model of Development
24....Endorsing Quote from MFI Leader in Operations
Social Performance
26....Client Story
30....Overview of Typical Clients and Impact on Children
Financial Performance
32....Auditors Report
33....Balance Sheet
34....Statement of Cash Flow
35....Statement of Revenue & Expenditures
40....Statement of Changes in Equity
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INTRODUCTION
Source: http://www.visionfundinternational.org/
Introduction
COUNTRY DESCRIPTION
AND MFI INTRODUCTION
The Philippines is an emerging economy with a democratic system
of government. It is located in Southeast Asia, the archipelago
consisting of more than 7,000 islands, of which over 800 are
inhabited. The major island groupings are Luzon in the north, the
Visayas in the center and Mindanao in the south. The country is
considered one of the best in terms of strategic location, skilled
and highly trainable human resources and a potential market for
enterprise development due to its fast growing population.
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11 Social Performance
SUMMARY
Capacity Building
8 Summary
GAUDIOSO B. CALIBUGAN
Quality and Integration Officer
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OVERVIEW
10 Overview
WHAT IS MICROFINANCE?
Microfinance refers to the practice of providing
microloans, generate microsavings, and microinsurance
to the poor to foster small scale entrepreneurship. It
breaks the cycle of poverty by addressing the fact that
most poor do not have a credit history and are therefore
ineligible for traditional financial services.
Small loans provide the working capital to grow a
business, which allows the poor to create a sustainable
livelihood and exert greater control over their financial
future. As a business generates profits, recipients build
assets, save money and can provide food for their
families, while sending their children to school. From
these first steps, hope is born. In addition, as their
businesses expand and they hire employees, the overall
communitys economy is lifted.
Microfinance leverages donations to provide additional
lending resources from initial donated capital. For
example, a persons initial donation can be multiplied
four to seven times, and then recycled to multiple
borrowers as many as 25 times. That is the multiplying
power of microfinance.
Microfinance leads to more education, better health,
improved diet and nutrition, and greater resilience to
disasters for poor families. In addition, it lays a foundation
that allows other humanitarian interventions to be
effective while providing the economic engine that allows
the transition from dependency to sustainability.
Additional financial options lead to increased average
household earnings and the ability to save for times when
a business slows, a child gets sick, or a crisis occurs. In
addition, communities are able to pay for services like
schools, clinics and water wells, moving from
dependence on aid to self- sustainability. As businesses
thrive, people move from a survival-only style of living
to a position where their hopes and dreams, particularly
for their children, can become reality. Thus children are
the primary beneficiaries of microfinance, albeit
indirectly.
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GOVERNANCE
13
Scott Brown
President & CEO, VisionFund International
14 Governance
15
MESSAGE OF THE
CEVI EXECUTIVE DIRECTOR
Welcome,
Our dream is, we want people to attain fullness of life. This
is our driving force why we continue to think how to best
way present and offer our products and services.
Reminiscing the years that passed, starting from the day
of its inception until today, I am very amazed and proud
that CEVI has already gone far in fulfilling its mission and
vision. CEVI today is a far cry of what I previously
remembered it is. We are now considered as a big MFI
based from the VisionFund International standards. This
proves that God is truly at work in His ministry of
transforming families and communities.
The recent global economic recession and calamities that
stroked our nation made our faith stronger and became
resilient undeterred by these circumstances. We grew by 28% in loan portfolio and very pleased to
see the good trends of our operations.
Embarking on a new tact to face industry challenges, we are also happy that we keep partnered and
maintained good relationships with the local and international networks, with special mention to World
Vision and VisionFund International.
Every year we are becoming better!
Service is indeed a privilege especially to a heart that is willing. And this is true to all of us because
God called us to serve.
I would like to thank you for your earnest efforts and generous support and guidance. We have full faith
that God will always bless the works of our hands.
Warmly,
16 Governance
BOARD OF
Elnora Avarientos is the National Director of World Vision
Development Foundation in the Philippines. She has 25
years of work experience in World Vision and once
responsible for giving support and guidance to national
directors and leadership teams in countries such as
Cambodia, Indonesia, India, China and Papua New Guinea
in enhancing their capacity to lead, manage and deliver
quality ministry, through coaching and mentoring.
Elnora B. Avarientos
WVDF Executive Director
Mr. Eduardo C. Jimenez is presently working as Microfinance Consultant of the Bangko
Sentral ng Pilipinas. Looking at policy issues affecting the practice of microfinance in
the banking sector, he is also the Housing Microfinance Consultant of the Asian
Development Bank. Mr. Jimenez has previously worked as consultant of United Nation
(UN) and other UN attached agencies as well as with other bilateral organizations.
Eduardo C. Jimenez
Microfinance Consultant of the Bangko Sentral ng Pilipinas
Florelyn Plaza Tiu is the Sponsorship Operations Projects Manager of World Vision
International. She supports the Associate Director Sponsorship Operations to enhance
the effectiveness and efficiency of field based sponsorship operations with the aim to
enhance program impact on children, their communities and donors through improved
sponsorship service performance, programming and related work processes.
Liberty B. Rigor
Program Group Manager
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DIRECTORS
Rommel Peter Caringal is the VisionFund International Regional Director, in Asia Pacific
Region. He provides leadership in the execution of Vision Fund strategies involving 11
countries of Asia Pacific region. He has more than 15 years of extensive experience in
microenterprise / microfinance sector in the areas of setting up commercial companies,
organizational management, product and services development, human resource,
organizational development, Management Information System (MlS), capacity building,
board development, various program innovations for greater sustainability.
Remedios N. Geraldes
ADP Program Quality Specialist for WVI-Asia Pacific Region
Ardy Roberto aside from being an author, he is also a producer of international awardwinning seminar. He is a co-founder and CEO of Salt & Light Ventures, Inc., which is a
learning event organizer that have won both local and international awards for the seminars
and conferences.
Ardy Roberto
Chairman Salt and Light Foundation
OPERATIONS
CEVI Currently
Operates in
12 Provinces
and 11 Cities
Across the
Philippines
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20 Operations
Loan Product
Product Distribution %
CEVI offers four loan products catering to economically active poor namely Yaman, CROP,
BABE and Asenso loan. Yaman loan product, which targets micro-entrepreneurs involved in
trading and commerce, covers majority of the portfolio and is offered in almost all of the branches
nationwide. Crop Loan on the other hand, is second that targets micro-entrepreneurs involved
in farming, highly availed in Mindanao Areas (Trento and Surallah Branches). Then BABE
Loan is exclusively offered in Bais, Estancia and Sara Iloilo Branches that targets microentrepreneurs involved in hog raising while Asenso Loan the least, targets small and medium
scale entrepreneurs, existing or new clients with greater need for capitalization has just been
recently launched in Talibon branch.
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22 Operations
23
24 Operations
EDWIN P. CRESCENCIO
Operations Manager
86%
Job Sustained
25,992
Children Impacted
75,579
SOCIAL PERFORMANCE
Women Outreach
26 Social Performance
Helens dream is to have her children complete their studies and start businesses of their own. At the moment, her
business plans include creating an extension near her restaurant so she can maintain her competitive advantage and serve
a larger customer base. She is excited to continue on as a CEVI member.
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28 Social Performance
Michelle Escotido
As a CEVI client for almost seven years, Michelle N.
Escotido reminisces on her short beginnings as a microentrepreneur. She is the wife of Orlando M. Escotido,
who is also a micro-entrepreneur, and a mother of one
child. She vividly recalls the days when their balut
(unhatched duck egg) vending started in the 1994, before
she became a member of CEVI. The business started
when her husband, Orlando, would sell balut via bicycle.
Within a few months, Michelle and Orlando saw that there
was a high demand for balut, which helped them continue
to persevere and prosper. To fulfill the increasing demand,
they realized they needed more capital to cover the costs
of purchasing additional balut and materials and hiring
labor for the production of balut. In 2002, Michelle was
informed of CEVI by her neighbors and saw the chance
to raise capital for her business. With the encouragement
and support of her husband, she decided to join CEVI.
She was one of the pioneer members of CEVIs cluster
association in Sto. Nio, South Cotabato. With her first
loan cycle of PhP 6,000, she purchased additional
materials, such as baskets, needed for balut vending.
When the balut vending business first started, they only
had one basket and one bicycle to sell the balut within
the barangay and to nearby barangays. With additional
capital borrowed from CEVI, their business grew and they
were able to expand their business to include balut
making and the buying/retailing of fresh duck eggs. They
were also able to purchase motorcycle and sidecar to
more efficiently deliver fresh eggs. In fact, Michelle and
Orlando have been so successful that they have now
established outlets in Davao and Tagum to sell fresh eggs.
Because of the substantial growth, they have an average
daily income of PhP 5,000- 6,000 and, as of December
2009, an annual profit of PhP 600,000. The additional
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Janet Bucoy
A true-blooded Zamboangean, at the age of 16, Janet moved
from Mindanao to Palawan with her parents. Leaving familiar
faces and places behind, she had no choice but to adapt to
her new home. School greatly helped her to make new friends
and get accustomed to the new environment she was dwelling
in. Years passed by, unnoticed, and soon Janet was marching
to get her college diploma.
Janet met her ex-husband in Babuyan, a barangay of Puerto
Princesa City that she called her second home. She had two
children with him, Ryan and Weljane, but when her youngest,
Weljane, was in the first grade, Janet and her husband decided
to live separately due to conflicts. From that point on, Janet
worked very hard to be able to feed her kids and send them to
school. She worked for the city as a Coordinator of Women in
City Hall for ten years, however once she sensed there were
issues within the department, she resigned to avoid tension.
Janet did not want to begin the job hunt again so she registered
to an Avon outlet and began to sell beauty products. Soon
after, she met Alvin Cardejon, her current partner. Being with
Alvin eased the burden of being a single mother who was
constantly faced with challenges.
In 2003, Alvin, Janet and the kids moved to Roxas, a town in
north Palawan. She continued to sell Avon products and soon
began to sell Natasha products, while Alvin focused on
mechanical work fixing motorcycles. That same year,
Community Economic Ventures, Inc. opened in Roxas and
Janet was one of the first members to join. She used her loan
as additional capital to support her and her partners
businesses. As she recalls, she and her co-members in the
cluster enjoyed meeting and paying their dues. Her house
was near the sea so she decided to use her next loan to
begin a fishing business. With her loan and savings, she was
able to buy a boat and other fishing equipment. Her son, Ryan,
and Alvin would go fishing and she would sell their catch.
Although they had begun their fishing business, Janet
continued to sell Avon and Natasha products and Alvin
continued to be a mechanic in his spare time. After some
time, their fishing business grew and required more help- Janet
hired six people from her town.
After two years, Janet became pregnant with her daughter
Yvennet. After giving birth, she decided to withdraw her
membership from CEVI and her family began to rely on the
fishing business. Some more time passed and soon, Janet
and Alvin decided to sell their boat and house so that Alvin
could focus on his mechanical job. The boat was sold for PhP
70, 000 and the profits were used to buy a lot with a nipa
house in Roxas. Alvin used his skills to restore an old
motorcycle and assemble a sidecar to create a tricycle. Janet
asked her relative to drive the tricycle, which results in her
getting a boundary of PhP 120 per day. Janet once again
found herself in need of additional capital so she got in touch
with her old cluster members to inquire about CEVI. She was
able to join because of her existing transportation business.
With her loan, Alvin was able to assemble two more tricycles
and Janet hired more drivers. Janet was excited to be earning
an income again and simultaneously began to build a new,
bigger house. Janet was happy to provide transportation and
jobs to people in her community, while Alvin worked on
establishing his shop where he does overhaul, welding and
vulcanizing.
In May of 2008, Janet opened a small sari-sari store in front
of her house because she had time to manage the store and
wanted to earn a little extra money for her familys daily needs.
Life was becoming easier when suddenly, a tragedy happened
in their family. On January 24, 2009, her son Ryan, 27 years
old, got electrocuted and passed away. It was very tragic
experience for Janet and her family who felt that things were
just starting to improve for them. Two days later, Yvennet,
who was 5 years old, fractured her leg while playing with
other kids on a tricycle just outside their house. With all the
trials her family was facing, Janet broke down into tears one
afternoon- she was frustrated and felt like giving up. Yvennet
innocently told her mother, Kaya mo yan ma, malaki ka
naman eh. (You can do it Ma, youre an adult!) Janet couldnt
help but laugh and found strength and encouragement in her
daughters words. Janets faith in God and the comfort He
offers to Janet and her family allows them to deal with the
negative experiences and keep moving forward.
To date, Janet manages three tricycles and she has saved
money to purchase a brand new sidecar. She earns PhP 360
daily from renting tricycles. The sari-sari store and welding/
repair shop earn PhP 500 per day. Her most recent plans for
business growth and expansion include: improving Alvins
shop, buying a transformer valued at PhP 50, 000, and
expanding her sari-sari store. Janet shares, One thing I
learned from Biblical Reflection in our weekly cluster meetings
is to depend on God for everything. Prior, she depended on
her strength to help her through, but the trials she has faced
in her life have made her realize there is God who will be her
source of strength and give her the courage to go on.
30 Social Performance
IMPACT ON CHILDREN
Microfinance is an investment in the future, especially in regard to children. With new income
from micro enterprise, poor families invest in their childrens education. Studies show that
children of microfinance borrowers are more likely to go to school, stay in school longer, and
have lower dropout rates.
VisionFunds experience confirms these findings. As loans are repaid, the money is recycled,
giving donations increased impact. For example, in Rwanda, a donation of $75 can affect at
least 30 children over a five year period by providing access to food and education. Among
more than 800 Rwandan active borrowers, family income and assets doubled in 19 months.
Recipients benefit from better nutrition, improved living conditions, better health, better sleep,
increased education, and an improved outlook on life.
FINANCIAL PERFORMANCE
32 Financial Performance
We have audited the accompanying financial statements of Community Economic Ventures, Inc. (a nonstock, nonprofit
organization), which comprise the statements of assets, liabilities and fund balance as at September 30, 2009 and 2008,
statements of income and expenses, statements of changes in fund balance and statements of cash flows for the years then
ended, and a summary of significant accounting policies and other explanatory notes.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the Philippines applicable to NonPublicly Accountable Entities (NPAE). This
responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and
applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in
accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the entitys preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
FINANCIAL
PERFORMANCE
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Community Economic
Ventures, Inc. as of September 30, 2009 and 2008, and its financial performance and its cash flows for the years then ended
in accordance with accounting principles generally accepted in the Philippines applicable to NonPublicly Accountable
Entities (NPAE).
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34 Financial Performance
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