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Quality

Integration

&

CEVI
Community Economic Ventures, Inc.

ANNUAL REPORT 2009

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

Quality and Integration

13

Microfinance is a proven, acclaimed method for


helping impoverished communities move toward
economic self-sufficiency through the provision of
small loans and other financial services.
The United Nations named 2005 the International
Year of Microcredit, recognising it as a vital element
in achieving the Millennium Development Goals.
In 2006, its importance was further recognised when
the Nobel Peace Prize was awarded to Muhammad
Yunus and Grameen Bank for developing concept
of microcredit. The thriving global movement to
provide financial services to the poor has proven its
effectiveness. VisionFund is a leader in this
movement, particularly in the area of providing
microfinance services in combination with holistic,
development assistance.

INTRODUCTION

GENERAL INTRODUCTION ABOUT


MICROFINANCE & VISIONFUND

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.

O
R
N
D
TIU
C
IT

Community Economic Ventures, Inc. is a nonstock, nonprofit


organization in the Philippines. It is organized to
respond to the needs of micro entrepreneurs
engaged in trading manufacturing, service-typed
and agricultural businesses through provision of
financial and technical assistance. Aimed
at developing sustainability and alleviating
poverty, CEVI provides microentrepreneurs better alternative to access
credit, build up capital, micro-insurance
and generate savings. CEVI also
extends appropriate consultancy
services and training to its client as
part of its implementation of the Credit
Plus Education Program.
Based in Bohol, the Community
Economic Ventures, Inc. (CEVI)
operates within 12 provinces and
11 cities across the country.

Quality and Integration

Cirila Lico Villamor, CEVI CLIENT


Cirila Villamor was born in the town of Calape, Bohol. In 1987,
she moved to Puerto Princesa City, Palawan where she met
her husband Rolly Villamor. She now has three children
named Irish, Irene Ruth and Iver Clarence. Before becoming
an entrepreneur, she took a job as a cashier at Palawan
Drug, a local drugstore in the city and as a sales representative
in an appliance stores there. When she married Rolly, she
began a business of buying and reselling rice to the market.
She was happy to be adding some additional income to
support her family and she was content with her familys
financial situation. However, soon some conflicts ensued at
her husbands workplace, which resulted in him losing his
job. They decided to move to Cebu with the prospect of
employment and hoping to start a new life. They pawned
their house for travel fare and a few days worth of stay in
Cebu. Little Cirila know that she was about to experience
one of the hardest times of her life. Two days after giving birth
to her third child, the baby passed away. She was in an
unfamiliar place and her heart was torn into pieces- she could
barely feed her family. To make matters worse, she also
developed vertigo.
Cirila and her husband decided there was no life for them in
Cebu and moved back to Palawan. Rolly began driving to
earn small amounts of money for his family and slowly, but
surely, Cirila began saving so she could start a buy & sell
business so she could sell rice to the market. In 2003, while
at a relatives house, she came across CEVI. She immediately
inquired and prepared the documents to apply for membership.
She decided to open a sari-sari store in front of the house
she rented in San Pedro, a barangay next to hers- she chose
that location because her cluster association met in that
barangay. Cirila enjoyed attending cluster meetings- she was
able to learn business tips from other members and earned
their trust and respect which was evident when they elected

her to be their cluster Treasurer. She began to diversify


the products she sold to include dried fish, dry goods
and vegetables.
Unfortunately, her vertigo got the best of her and she
had to take a break from her business and her
membership with CEVI. Her husband began managing
the store and assumed responsibility for all the household
needs while she rested and recuperated.
Once Cirila recovered she returned to her sari-sari store
and became an active member of CEVI once again. She
also focused on her childrens education, looking for ways
to lessen the school fees. Cirila happily shares her
childrens achievements. Her daughter, Irish Villamor,
received a scholarship from Nagao Natural Environment
Foundation and graduated Magna Cum Laude with a
degree in Bachelor of Science in Environmental Science.
She now works at the legal Department of Palawan
Council for Sustainable Development (PCSD) while
studying law at a university. She finds joy that her second
daughter placed in the Top 10 of a drawing contest and
her youngest child has dreams of becoming a police
officer or an engineer.
Though Cirila is happy with her life, she has many
dreams she has yet to accomplish. She would like to
expand her store and see her kids finish college with
flying colors. She owes it all to CEVI, she says, I have
to thank CEVI because it gave me the opportunity to be
an active entrepreneur and at the same time learn through
Bible Reflections. CEVI is something you can depend
on. If you cooperate and pay your dues properly, you
will really appreciate the programs since they help
improve how you handle and maintain your business.

11 Social Performance

FISCAL YEAR HIGHLIGHTS AND ACHIEVEMENTS


Enhanced Integration with World Vision Area
Development Project (ADP) and Partners

SUMMARY

 Involved in the formulation of the World Vision


Development Foundation Economic Development
Strategy both at national and ADP programming levels.
CEVI commitment to ADP is that at least 60% of its clients
reside within ADP areas, of which 20% are sponsored
families.
 CEVI has partnered with the Heavenly Treasures, an
NGO based in California,which helps provides an
international market of the handicrafts products of CEVI
clients.
 CEVI implemented a Christian Witness Integration
Project. CEVI has collaborated the church leaders, from
both Catholic and Evangelical Churches in order to
realize and integrate a Christian nurturing program to
CEVI cluster meetings, which is being attended regularly
by its clients. The partnership was being carried out with
the Basic Ecclesiastical Communities (BEC) in Isabel
Leyte, members of Metro Tagbilaran Evangelical
Association of Ministers (MTEAM) in Bohol, and Davao
Ministerial Interfaith (DMI) and local churches in Davao
City.

Quality and Integration

Maintained Quality and Growth

Capacity Building

 CEVI maintained a status as a category 3 MFI at

 CEVI institutionalized its managerial strengthening

VFI network with increased number of clients and


loan portfolio. CEVI ranked 2nd in Asia and one of
the top 10 among 47 countries in the VFI family.

program. Appropriate leadership trainings were


provided to the department heads, branch managers,
area managers and area accountants to strengthen
the organization.

 Early of 2009, CEVI has rolled out the group


expanded methodology (GEM). The new approach
is a shift from a solidarity group to a family
guarantee loan that helps improve monitoring
system, competitiveness, and productivity. GEM
has attracted and gained the loyalty of the clients
that reduced the number of exit clients from 46%
last year to 26% this year.

 CEVI also enhanced and re-launched its individual


loan product called Asenso Loan to its clientele. It
is designed to cater existing clients who graduated
from group loan and needed bigger capitalization
to expand their businesses. It is also offered to those
qualified non-CEVI clients who need larger loans.

 CEVI has established a team that focus on product


development and standardization of business
processes. The VFI Business Development
Manager actively supported the relaunching of
global standardization at CEVI.

 CEVI became the first Filipino MFI to go active in

 VFI Asia Director and Business Development


Manager conducted supervisory training to the middle
and senior managers of CEVI.

 PlaNet Rating conducted an institutional and social


performance assessment at CEVI.

 CEVI conceptualized new strategies for 2010 and


enhanced its vision and mission statement.

 CEVI piloted the use of Progress out of Poverty Index


(PPI) based from 2004 Annual Poverty Indicator
Survey (APIS), a poverty assessment tool developed
by Mark Schreiner for Grameen Foundation,
Consultative Group to Assist the Poor (CGAP) and
the Ford Foundation.

 VisionFund International also piloted a Social


Performance Assessment (SPA) tool at CEVI. This
tool will assess and identify the areas that need to be
strengthened to effectively fulfill the mission.

Kiva partnership. CEVI was also being featured in


the July 2009 issue of Entrepreneurs magazine,
highlighting its KIVA partnership and
implementations.

 CEVI established a Service Quality Assurance Unit

 The VisionFund has chosen CEVI to pilot the World

 CEVI allocated a training fund for cluster

Vision Micro funding project together with Rwanda


and Mexico.

 CEVI received recognition from the Consultative


Group to Assist the Poorest (CGAP) for
transparency in social performance reporting.

 CEVI achieved a green rating based on the VFI


global standards.

and reassessed staff through performance


appraisal, which is done yearly to help maximize staff
members potential and work effectiveness.

management and leadership trainings for CEVI


members.

8 Summary

I joined CEVI since 1998 and I witnessed its growth,


the ups and downs and felt the pain when we started it.
I was a new graduate in the field of Agriculture
when I joined CEVI. I have no idea about microfinance
and never expected that it would expand to
Luzon, Mindanao and other parts of Visayas region.
I thought it would only operate in Bohol
in partnership with the two ADPs but the call
for CEVI is to provide a boundless microfinance services.
One unique quality of CEVI is its emphasis on
Christian Witness in every aspect of its operation.
CEVI is not just a microfinance.
It is a Christian organization that aims people to attain fullness of life.
The way it provides services is sincere. It has touched so many lives
of people by also bringing credit plus education in the community.
Through its efforts, people learned how to generate savings
in their own, and were given an opportunity to start
a livelihood to raise their children well.

GAUDIOSO B. CALIBUGAN
Quality and Integration Officer

WHO IS VISIONFUND AND HOW DOES VISIONFUND WORK?

Quality and Integration

13

VisionFund is one of the worlds largest microfinance


institution networks managed by a Christian nonprofit
organisation. Impacting over two million children and their
families each year in 43 countries, and in over 500 World
Vision area development programmes, these microfinance
institutions serve in every region where World Vision works.
The network of microfinance institutions, affiliated with
VisionFund, integrate microfinance into existing World
Vision development programmes. The combination of World
Visions humanitarian and development services coupled
with microfinance provides long term sustainability in these
communities. In essence, VisionFund provides the
economic engine that helps these communities and
families overcome poverty. As a team, the two
organisations, VisionFund and World Vision, couple
microfinance services, sound financial principles and
management with transformational development
interventions.
Since VisionFund focuses primarily on rural areas, the initial
support and development of microfinance institutions by
donors is important. Without this support, these microfinance
institutions would not be able to become sustainable due to
the difficult markets where VisionFund focuses.
Like World Vision, VisionFund is a Christian non-profit
organisation. As part of the World Vision partnership,
VisionFund serves people in need regardless of race,
religion, gender, or ethnicity.

OVERVIEW

VisionFund is the microfinance arm of World Vision. In 1993,


World Vision began to implement microfinance
programming through the creation and development of
microfinance institutions to benefit the economically active
poor. In 2003, World Vision created VisionFund as the
microfinance subsidiary of World Vision, to oversee and
manage the network of microfinance institutions.

Source: VisionFund Annual Report 2009

World Vision, founded in 1950, is a Christian humanitarian organisation working


in 96 countries. It serves children, their families and communities in conditions
of poverty, primarily through programmes of transformational development,
disaster management, and promotion of justice. In fiscal year 2009, generous
donors gave $2.575 billion in cash and goods, enabling 40,000* employees to
offer physical, social, emotional and spiritual support.
*Includes full-time, part-time and temporary staff and microfinance institution employees

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.

Source: VisionFund Annual Report 2009

I was in need of additional capital so I inquired from


my old cluster members about CEVI. I was able to
join because of my existing transportation business.
Using my loan, I was able to buy an old motorcycle.
JANET BUCOY, CEVI Client and
Tricycle Operator and Store Owner

Quality and Integration

13

After I joined CEVI, my business prospered which also means progress


financially and most significantly my spiritual life grew and strengthened
because of the biblical reflections done every meeting.
MICHELLE ESCOTIDO with husband,
CEVI Client and Balut Vending Owner

The success of my restaurant business lies with my food recipes.


Customers keep coming in my restaurant because the food we
serve tastes better than others.
HELEN MATEMATICO, CEVI Client
and Restaurant Owner

MESSAGE FROM SCOTT BROWN

GOVERNANCE

Community Economic Ventures (CEV) demonstrated


both economic strength and organizational purpose
during 2009 in light of a global economic crisis that left
most of the financial world stunned and shaken. CEVs
quality leadership, sound fiscal decisions and drive to
excellence resulted in a banner year for the VisionFund
(VFI) and World Vision (WV) affiliated microfinance
institution (MFI).
At the close of fiscal year 2009 CEV experienced a
25% gain in outstanding portfolio, whilst reducing the
level of loan and increasing the number of active
borrowers served by more than five thousand individual
micro entrepreneurs. Furthermore, nearly 15,000
additional children were positively impacted by the work
of CEV compared to the previous year.

Quality and Integration

13

The quality of programming at CEV was noted by


external institutions as well. CGAP, Consultative Group
to Assist the Poor, awarded seven VFI affiliated MFIs
with the MFI Silver Certificate for the 2009 Social
Performance Reporting Award. CEV was among the
VFI affiliated MFIs receiving this reporting award. The
award recognized CEVs transparency in social
performance reporting through key indicators. In
addition, the VFI board recognized the CEO, Jonar
Dorado for his excellence in leadership.

In 2009, through a network of 43 affiliated MFIs,


VFI focused most of its micro lending to areas
where WV has ongoing area development
programmes. In partnership with both VFI and
WVI, CEV coupled microfinance services,
sound financial principles and management with
transformational development interventions.
VFIs total loan portfolio for 2009 was $381
million USD while serving roughly 624,000
active borrowers.

Over the past year CEV successfully partnered with


Kiva, an organization that connects individual investors
with micro borrowers supported through CEV which
led to over $500,000 in zero interest lending to CEV.

It is with celebration that VFI congratulates CEV


on last years fiscal and social success. CEVs
fiscal approach coupled with sound
management provided an environment that
allowed the MFI to grow and flourish. I join VFI
in anticipating many future years of growth and
success for this exceptional institution.
To learn more about VFI, the microfinance
subsidiary
of
WV,
please
visit
www.visionfundinternational.org.

Scott Brown
President & CEO, VisionFund International

14 Governance

MESSAGE OF THE BOT PRESIDENT


Praise God from whom all blessings flow!
Over the past few years, I became a witness of
how God abundantly and continually poured out
His blessings to the Community Economic
Ventures Inc. (CEVI).
And despite the growing apprehension due to
economic recession and its impact on the poor,
2009 was a testimony of Gods faithfulness to
CEVI as evidenced by its growth in resources,
scope and its quality of operation.
CEVI played and will continue to play a very
significant role in the holistic development of
World Visions Area Development Programs.
Committed not only by providing
loans to
entrepreneurial poor but also credit, education
and values formation. Many families through the
enabling of CEVI can now see the hope that will
bring about a better future for their children.
In partnership with World Vision and other
organizations we will continue to be channels of
hope and contribute in the transformation of those
whom we serve.
I would like to express my deepest appreciation to all of you at CEVI for your great achievements this
year. We have so much to thank the Lord for dedicated leadership, hardworking staff, but most of all
His manifold blessings for greater ministry. Much is given, much is required. Continue to be faithful to
the calling God has for each of you and for CEVI.

ELNORA BAILEN- AVARIENTOS

Quality and Integration

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,

JONAR B. DORADO, CPA

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.

Florelyn Plaza Tiu


WVI Sponsorship Operations Manager
Liberty Rigor is World Visions Program Group Manager since 1995. She is a Certified
Public Accountant. Prior to her present position, she has worked as Regional Coordinator,
Chief Accountant and Semi-Senior Auditor in World Vision Manila area.

Liberty B. Rigor
Program Group Manager

Quality and Integration

17

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.

Rommel Peter D. Caringal


VFI Regional Director, Asia Pacific Region
Remedios N. Geraldes is an ADP Program Quality Specialist for World Vision
international Asia Pacific Region since 2003. She provided support to the improvement
of transformational programming through the implementation of Transformational
Development Indicators, building capacities for design, monitoring and evaluation of
programs and facilitates intentional learning for quality. She has been working with World
Vision for 23 years and has been into different roles and responsibilities prior to her
present position.

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

Quality and Integration

19

Provinces and Cities Served


Agusan del Sur
South Cotabato
Zamboanga
Agusan del Norte
Davao
Bohol
Cebu
Leyte
Negros Oriental
Iloilo
Palawan
Cavite

20 Operations

HOW DOES THE MFI OPERATE?


VisionFund manages external debt funding
and World Vision donated resources for the
benefit of micro enterprise lending and
savings programmes. The funds are invested
in the network of microfinance institutions in
43 nations worldwide. VisionFund seeks to
have each microfinance institution become
operationally and financially sustainable so
that the lending and social impact are able
to carry on well into the future. VisionFund
strives to provide strong governance, solid
internal controls, robust risk management,
and deep integration with other World Vision
ministries. The microfinance institutions, in
turn, are then empowered to extend credit
and savings services to individual and group
entrepreneurs, primarily in World Vision area
development programmes. The institutions
endeavour to allow borrowers to self select
their own groups and their own business
ventures. As businesses succeed, loans are
repaid, and microfinance institutions are
able to lend those funds to other clients.

agree to guarantee one anothers loans. This


allows VisionFund to reduce costs and
provide small loan amounts (loans typically
range from $50 to $500).
The group screens potential borrowers and
tracks each repayment, building its members
leadership skills and sense of pride along the
way. Weekly meetings offer accountability
and support, and also build business skills.
Solidarity Groups
Designed for more experienced
entrepreneurs with larger enterprises,
solidarity groups have fewer members than
community banks, with an average of threeto-six people guaranteeing each others
loans. Members who make repayments on
time become eligible for larger individual
loans (loan sizes typically range from $300
to $800).
Individual Loans

Loans made by VisionFund-affiliated


microfinance institutions are handled in the
following three methods:
Community Banks
These loan circles create an opportunity for
the poorest entrepreneurs to obtain credit.
Self-selected groups of 2030 borrowers

Source: VisionFund Annual Report 2009

Borrowers who have grown their businesses


successfully through a solidarity group or who
have their own collateral qualify for individual
loans, typically ranging from $500 to $5,000.
Individual loans usually require either two
guarantors or collateral. Borrowers often
create a multi year business plan in
consultation with their loan officer.

Quality and Integration

CEVI PRODUCT PORTFOLIO

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.

21

22 Operations

GENERAL INTRODUCTION TO UNIQUE HOLISTIC


MODEL OF DEVELOPMENT
Area Development Programmes (ADPs) lay a secure foundation on which small businesses can
build. In conjunction with clean water, health care, stable food sources, and education, communities
can turn to income generating ventures. VisionFunds network of microfinance institutions
integrates microfinance into World Visions programmes. This unique combination of immediate
aid and long-term development leads to sustainable developmental changes. The result is a
truly holistic, integrated approach to community development that empowers poor families and
communities to solve their own problems in innovative ways.

Quality and Integration

23

Education and Literacy


Educating children and families is critical for the
future of a community. For example, published
studies show that when girls learn to read at the
eighth grade level, benefits to the community include
reduced mortality rates and increased income per
capita. World Visions integrated approach helps
communities build their own schools and provide
their own teachers.
Water
Communities often have access only to dirty,
disease-infested water that spreads diarrhoea and
deadly parasites. Simply providing access to clean
water and improving sanitation can cut child death
rates in half. World Vision serves communities by
drilling new wells, protecting existing water sources,
and piping water from safe springs. This water is
safe for drinking, cooking, bathing, and nourishing
crops and livestock.
Health Care
Studies show increased family income often
translates into better health, and health services for
families, including children. Microloans provide the
working poor with the additional resources they
need to provide health care for their families. By
being able to access health care and increase the
frequency between clinical visits, mortality rates for
children drop.
Food and Agriculture
By securing its own regular and sustainable sources
of food, a community is able to cut death rates
among vulnerable families in half again (when added
to water and health improvements). The right seeds
and tools, plus training in agriculture and animal
husbandry, enable a community to increase its
production of meats, vegetables and grains for
healthy diets. Improved storage capabilities enable
families to survive periods of food shortage.
Source: VisionFund Annual Report 2009

24 Operations

I thank God in CEVI.


It is really a blessing working
in this ministry that provides both
spiritual and financial needs of
the people. The way CEVI handles
staff and clients are different.
It knows to value relationship.
And this relationship has been one
that held us unique from the rest.
Everybody in the organization cares.
This is the kind of culture that I am always proud at CEVI.

EDWIN P. CRESCENCIO
Operations Manager

86%
Job Sustained

25,992
Children Impacted

75,579

SOCIAL PERFORMANCE

Women Outreach

26 Social Performance

CEVI Client Success Stories


Helen Matematico
Helen Matematico lives in Moalboal, Cebu. She is
37 years old and is married to Reynaldo Matematico,
a sea diver. While Reynaldo he financially supports
his family by providing diving services to foreigners
interested in exploring the beautiful Cebu sea, he
also helps Helen to raise their children. However, the
busy lifestyle of these working parents only leaves
them the evenings to spend time together and with
their kids, Renalyn and Renann. Renalyn, 20, is a
college graduate while Renann, 19, just graduated
from high school. Both children enjoy and even prefer
working in the restaurant business, helping their
mother.
Helens restaurant started off small but has gradually
progressed and expanded over time, resulting in
increased profits. Although Helens restaurant faces
much competition from other restaurants, Helen has
been effective at maintaining a strong customer base by providing food and service far superior to others. She claims that
her business success lies with the quality and taste of her food. A large portion of her clientele consists of foreigners who
have settled in her town, and they claim that aside from the great food Helen serves, she offers great customer service. As
her restaurant became more successful, Helen was able to hire some of her relatives and friends to join her work force. An
added touch, Helens restaurant is situated on
the seashore, which allows her customers to
enjoy the view of the sea and the refreshing air.
Helen is now in her 17th cycle with CEVI and
has already availed two loans at PhP 25,000.
When she first began, she started with a loan
of PhP 6,000 to gain additional capital for her
business. She is thankful for CEVI and for the
loans that were granted to her- with the capital
she was able to expand her business a great
deal. In turn, the additional income generated
helped her provide for her childrens education
and to make a suitable house for her family to
live in. Helens daily profits now hover around
PhP 7,000 on average, but range from PhP
20,000 to 50,000 during the peak season. Her
annual profit is about PhP 450,000.

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.

Quality and Integration

27

Zenaida Pacurib Alegarbes


Zenaida Pacurib Alegarbes, a resident of Hubang Poblacion, Bunawan,
Agusan del Sur, has been a CEVI client for 2 years. Zenaida first learned
about CEVI from her neighbors. Upon hearing how the loans from CEVI
changed their lives, she did not hesitate to join their association,
especially since she needed capital to grow and improve her businesses
she runs a sari-sari (general) store, has a rice field, and is engaged in
hog raising. Zenaida has 4 children, three of whom have already
graduated from college; her youngest child is a first year at college and
is studying to be an accountant. Zenaida and her husband, Daniel
Magnifico, have worked very hard to be successful in their business
ventures so that they can fulfill their dream to have their children earn
college degrees.
Having a strong sense of determination to grow her businesses, Zenaida
never feared that her investments would fail. With her first loan of PhP
6,000 she was able to expand her product offering at her sari-sari store.
She was able to use a portion of the loan to invest in her piggery and to
also hire labor to plant in her rice fields that span 6 hectares. Zenaida is
now on her 5th loan cycle with a loan amount of PhP 14,000. Her
annual profit from her sari-sari store, hog raising, and rice farming is
PhP 18,000,150,000 and 150,000, respectively. Approximately 50% of
the income generated from her business ventures is re-invested into
her business and into her younger daughters education. With the support
of her children and husband, Zenaida is hopeful for success- she would
like to set an example within her cluster association and in her
community.
To further expand in her rice farming, Zenaida would like to purchase
more rice fields to multiply harvest in the coming years. She also would
like to expand her hog raising business. Zenaida believes
that with the right attitude and smart investment decisions,
she will be able to use each availed loan from CEVI to
accomplish all her dreams.
Zenaida is an active cluster chairman among the many
cluster associations in the Trento Branch. In fact, her
officer position enabled her to develop leadership skills
and strengthen her relationship with her neighbors in the
community. She is a disciplined leader and constantly
reminds her fellow cluster members to be responsible.
She expresses the highest praise of CEVI, saying that
the trust and values that CEVI have given her have molded
her to be a better person. CEVI has also given her the
opportunity to grow her businesses and, most importantly,
allowed her to pay for the education of her children. It
was through CEVI that she was able to learn how to speak
in front of people and become a leader. She values the
trust that the members of her cluster association have
given to her.
Zenaida is just one of the satisfied clients of CEVI who
lives life with contentment and fullness despite the
challenges she may face because her strong belief in
God makes anything possible.

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

income has enabled them to purchase land, purchase a car and


renovate their house.
The business started with just the couple handling the operations,
but now they have 3 drivers who deliver eggs to the outlets and 1
assistant. Their business has made a considerable impact on
their community by generating employment.
Currently, Michelle is already in her 17th loan cycle and has a
current loan of PhP 25,000. She has been able to launch another
business - she owns an outlet/office for the direct selling of Avon,
Sara Lee and Natasha products. Though she initially realized
that there was risk in starting such a venture, she continued to
believe that hard work and time can make for a successful
business, and she was right. She proudly claims, After I joined
CEVI, my business prospered which means I made progress.
Not only was I able to improve my financial standing, but more
importantly, I was able to grow and become stronger spiritually
through the Biblical Reflections that are done at every meeting.
She and her husband believe that with the continuous financial
support from CEVI and their trust in the Lord, their dreams for
their daughter to finish her studies will come true.
Michelle, like many micro-entrepreneurs, can continue to avail
large loans from CEVI for business expansions because she
has a proven track record which is based on hard work,
commitment and perseverance- values that are necessary for
an entrepreneur to prosper. Indeed, Michelle is proof that a
committed and motivated person deserves the opportunity to
have access to services that will help them prosper in business
and in life.

Quality and Integration

29

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

OVERVIEW OF TYPICAL CLIENTS


The majority of the worlds poor are self employed. Most people living in poverty, however, do
not have access to the capital needed to grow their small businesses and increase
profits.VisionFund affiliated microfinance institutions strive to serve the entrepreneurial poor
who are economically marginalised. This is especially true for the rural poor, who typically have
even less access and fewer options than others. VisionFund looks for borrowers primarily in
World Vision area development programmes with the following three characteristics:
Strong Work Ethic
Focuses on the hardworking, entrepreneurial poor who need access to capital to grow their
business to a level that will sustain themselves and their families.
Prior Business Experience
Provides microloans to the entrepreneurial poor who are willing to be trained as first-time
borrowers. Additionally, those with prior business experience are sought out because they are
more likely to repay their loans and become mentors to other entrepreneurs.
Women Caregivers
Majority of borrowers are women. In 2009 over 68 percent of all micro borrowers were women.
This is a staggering statistic in light of the reality that women control less than one percent of the
worlds assets. VisionFund focuses on women, as they are more apt to spend additional income
on health care and education for their children.

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.

Source: VisionFund Annual Report 2009

FINANCIAL PERFORMANCE

32 Financial Performance

REPORT OF INDEPENDENT AUDITORS


The Board of Trustees and Members
Community Economic Ventures, Inc.

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).

January 7, 2010 Makati City, Metro Manila

MANABAT SANAGUSTIN & CO., CPAs


Partner CPA License No. 0035026
SEC Accreditation No. 0047-AR-2
Tax Identification No. 112-071-561
BIR Accreditation No. 08-001987-11-2007
Issued July 10, 2007; Valid until July 9, 2010
PTR No. 1564064MB Issued January 5, 2009 at Makati City

Quality and Integration

33

34 Financial Performance

Quality and Integration

35

Community Economic Ventures, Inc.


Sarrabia-Co-Torralba Building 2, Espuelas Street, Tagbilaran City 6300, Philippines
Telephone: (038) 412-2356 | 501-0170 | 235-5463
Fax: (038) 412-2356
http://www.cev-inc.org