Oxfam novib Annual Accounts 2017-2018
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oxfam novib Annual Accounts 2017-2018
oxfam
novib
Annual
Accounts
2017-2018
In line with Oxfam International, our reporting period
covers the fiscal year April 1, 2017 to March 31, 2018.
The Annual Report and Annual Accounts are available
online at oxfamnovib.nl/jaarverslag.
2017/2018 3
CONTENTS
Oxfam Novib Annual
Accounts 2017-18
1 Directors’ Report 9
1.1 General Information 10
1.2 Activities and Financial Position 12
1.2.1 Core activities 12
1.2.2 Key financials 13
1.2.3 Fundraising 14
1.2.4 Policies 14
1.2.5 Risk and uncertainty 15
1.3 Information about the Board of Directors 17
1.4 Outlook 18
2 Board of Supervisors’
Report 21
3 Consolidated Financial
statements 24
3.1 Consolidated balance sheet as at March 31
after appropriation of net result 25
3.2 Consolidated statement of income and
expenditure 26
3.3 Consolidated cash flow statement 27
3.4 A ccounting policies for the valuation
of assets and liabilities 28
3.4.1 General 28
Joel van Houdt
3.4.2 Consolidation 28
3.4.3 Tangible fixed assets 28
2017/2018 5
3.4.4 Financial fixed assets 28 3.7 Notes to the statement of income
3.4.5 Inventories 28 and expenditure 46
3.4.6 Receivables 29 3.7.1 Income from private individuals 46
3.4.7 Cash and cash equivalents 29 3.7.2 Income from companies 46
3.4.8 Provisions 29 3.7.3 Income from lottery organizations 46
3.4.9 Other assets and liabilities 29 3.7.4 Income from government subsidies 47
3.4.10 Related parties 29 3.7.5 Income from affiliated non-profit
3.5 Accounting policies for the consolidated organizations 48
statement of income and expenditure 29 3.7.6 Income from other non-profit organizations 48
3.5.1 Income from private individuals 29 3.7.7 Income from delivery of product
3.5.2 Income from companies 29 and services 48
3.5.3 Income from lottery organizations 29 3.7.8 Other income 49
3.5.4 Income from Government grants 29 3.7.9 Expenditure allocation 50
3.5.5 Income from affiliated non-profit 3.7.9.1 Costs of direct fundraising 54
organizations 29 3.7.9.2 Salary and emoluments paid to directors 54
3.5.6 Income from other non-profit organizations 29 3.7.9.2.1 Executives’ Pay Financed from
3.5.7 Income from delivery of products and Public Funds (Disclosure) Act 55
services and other income 29 3.7.10 Balance of financial income and expenses 56
3.5.8 Expenditure on structural poverty alleviation 30 3.8 Separate Financial Statements Oxfam Novib 58
3.5.9 Costs of generating income 30 3.8.1 Separate balance sheet of Oxfam Novib as at
3.5.10 Management and administration costs 30 March 31 after appropriation of net result 58
3.5.11 Foreign currencies translation 32 3.8.2 Separate statement of income and
3.5.12 Pension cost 32 expenditure of Oxfam Novib 59
3.6 Notes to the consolidated balance sheet 33 3.8.3 Accounting policies for the valuation of
3.6.1 Tangible fixed assets 33 assets and liabilities in the separate financial
3.6.2 Financial fixed assets 34 statements 60
3.6.3 Inventories 37 3.8.4 Notes to financial statement items affected
3.6.4 Receivables, receivables from governments by the consolidation of Oxfam Sweden 55
and project funds overview 37 3.9 SHO 62
3.6.5 Cash and cash equivalents 38 3.9.1 Famine Action (Hongersnood Actie) 62
3.6.6 Notes to the reserves and funds 39 3.9.2 Nepal 63
3.6.6.1 Reserves 39 3.10 Events after the balance sheet date 64
3.6.6.2 Funds 43
3.6.7 Provisions 44
3.6.8 Debts 45 4 Other information 65
3.6.9 Project liabilities 45 4.1 Result appropriation according to statutes 66
3.6.10 Assets and liabilities not included 4.2 Report of the independent auditor 67
in the balance sheet 45
6 OXFAM NOVIB ANNUAL ACCOUNTS 2017/2018 7
Directors’
REPORT
Maartje Geels
our organiZation
1.1 General Our approach - We work with people to protect their
Information Oxfam’s approach is rights-based. land rights and make sure they can
We believe sustainable development is continue to grow the crops they
Oxfam Novib is a member of the Oxfam about cooperating with people, enabling depend on.
network and a worldwide development them to get what they need, because - We help people get a fairer deal for
organization that mobilizes the power of they are entitled to. That is why we help their work.
people to fight poverty. Around the globe, people around the world to stand up for • We create opportunity
we work to find practical, innovative their rights. - We champion people, especially
ways for people to lift themselves out of women and youth, so that they can
poverty and thrive. We use a combination of rights-based take their places as full and equal
sustainable development programs, members in their communities and
In the past fifteen years alone, global campaigns, advocacy, and humanitarian influence others to respect that.
extreme poverty has been cut in half. assistance in disasters and conflicts, - We advocate for the right of women
Billions of people are standing up while putting gender justice at the and youth to have full control
to injustice, the trauma of war, and heart of all our programs. We challenge over their bodies, income, and the
complex problems like climate change the structural causes of the injustice decisions that affect their lives.
and economic inequality. But there is of poverty, and work with allies and - We support organizations where
much more to be done. That is why Oxfam partners locally and globally. women have an equal role in
Novib exists: to tackle the injustices that leadership. board of supervisors
cause and perpetuate poverty. We work Together we tackle the root causes of - We see a world where all of us
to make the world safer and fairer for poverty. exercise our right to a life free from
board of directors
everyone. We exist to defeat poverty. • We overcome inequality fear and violence.
- We challenge the concentration of
Our vision wealth and power in the hands of Our goals Secretary Pool
A just world, without poverty. That is our the few. Oxfam Novib contributes to Oxfam’s six CORPORATE GROUPS
vision. We want a world where people are - We fight to ensure that the wealthy strategic change goals as stated in the INNOVATION TEAM
valued and treated equally, enjoy their pay their fair share of taxes, and Oxfam Strategic Plan 2013-2019, ‘The QFC HR ICT Corporate Inst. funding &
rights as full citizens, and can influence that governments use that money Power of People Against Poverty.’ Communication Donor relations Humanitarian Team
decisions affecting their lives. to provide quality public health and • The right to be heard
education for everyone. More people will exercise civil and
Our values - We campaign to change the systems political rights to influence decision- PROGRAM SUPPORT
public engagement THEMATIC UNITS Oxfam
When people’s basic rights are that keep people trapped in the makers and hold them accountable. & IMPACT
International
respected, we can rid the world of injustice of poverty. • Advancing gender justice
Global Program
poverty and injustice. This is what we • We save lives More women will claim and advance Marketing Food Land IMPACT Measurement
Director
stand for: - We support communities to be better their right to lead, and violence against Communications & Water
• Empowerment prepared to cope with shocks and women will be significantly less & Production Country relations
Everyone, from our staff and uncertainties. socially-acceptable and prevalent.
Regional
supporters to people living in poverty, - We work quickly to meet peoples’ • Saving lives – now and in the future Acquisition & Loyalty Conflict & Information
Platforms
should feel they can be a catalyst for essential needs when disaster Fewer people will die or suffer as a Fragility Management
change. strikes, and we ensure the most result of natural disasters and conflict. Major Accounts
• Inclusiveness vulnerable are kept safe from harm. Those most at risk will have exercised Knowledge Hub
Governance Country Teams
We seek out partnerships and embrace - We partner with local humanitarian their right to have clean water, food, Front & Back Office Governance Citizenship
inclusive decision-making. We believe actors who play a leading role sanitation, and other fundamental
& Financial
everyone has a contribution to make, before, during, and after crises. needs met. More people will be free
Flows
Capacity Building
regardless of visible and invisible • We defeat hunger from violence and coercion, and better
differences. - We believe in a future where able to take control of their own lives Gender
Program Quality
• Accountability everyone has enough to eat and in dignity. & Youth
& Support
We take full responsibility for our a fair chance to provide for their • Sustainable food
actions and are committed to the families. People who live in rural poverty will Flex Team
highest standards of integrity. We will - We help people to build livelihoods enjoy greater food security, income,
also hold others – individuals as well that are more secure against the prosperity, and resilience through
as companies and governments - fully impact of climate change or sudden significantly more equitable and
accountable for their actions. market shifts, which hit poor people sustainable food systems.
hardest. • Fair sharing of natural resources
The world’s most marginalized people
COORDINATORS INFLUENCING AND PRIVATE SECTOR
10 OXFAM NOVIB ANNUAL ACCOUNTS 2017/2018 11
will be significantly more prosperous In each country there is a single Oxfam to projects and activities that further 2. Food, Land and Water Novib’s goal of creating transformational million was unrealized, €0.4 million was
and resilient, despite climate stress program strategy, program, and budget embedded the project organization. We support people living in poverty change. Furthermore, we strive to enable realized and €2.3 million related to the
and rising competition for land, water, as well as a single country team. Oxfam Our project ‘Embedding Integrity in their efforts to claim their right to young people to participate in society Oxfam Novib microfinance portfolio.
food, and energy sources. Regional Platforms, led by an Oxfam Management’, set up in 2016, spiked food, land and water. In the long term and have an effective voice in decision- The net results of the microfinance
• Financing for development and regional director, provide strategic to the top of our priority list in February this results in a more just food system, making processes which affect them, portfolio are financed by the loan
universal essential services leadership, deliver regional impact 2018. On this date, the British newspaper one which sustainably addresses the including in our own projects. reserve therefore the negative foreign
There will be higher quality and increased and facilitate connections between The Times reported on a case of sexual needs and aspirations of smallholders, exchange result of €2.3 million does not
quantity of financial flows that target practitioners. Affiliates engage with misconduct by Oxfam Great Britain aid agricultural workers, and vulnerable 5. Conflict and Fragility affect the fundraising operations of the
poverty and inequality. countries and regions as Partner workers in Haiti, which occurred during communities. We develop and implement Our work on conflict and fragility takes organization.
Affiliates, providing thematic and the aid operation following the 2011 a food justice campaign – GROW – a long-term approach that seeks to
Legal and organizational structure capacity building support; some act earthquake. The story was picked up by addressing the unequal division of profit address the underlying root causes of With the negative effect of €3.5 million
Oxfam Novib is a Foundation (in Dutch: as Executing Affiliates that provide many other media outlets and developed in international value chains, we work conflict, such as structural inequality, excluded, the net result of Oxfam Novib
Stichting) registered with the Chamber of back office support. In 2017-18 Oxfam into a leading news story, with several on specific value chain rights and the marginalization, and lack of access to would have been negative €2.3 million,
Commerce (Kamer van Koophandel or KvK) moved forward helping organizations in new revelations of sexual misconduct position of small-scale farmers (palm natural resources. We seek to create which is €1.8 million higher than the
in The Hague under number 27108436. Turkey and Colombia to prepare to join in the aid sector. In response, Oxfam oil, rice, aquaculture) and work on land inclusive security for all, with an budgeted amount.
the confederation. By the end of the apologized for the wrongs of its former rights and water governance; and have emphasis on the inclusion of women and
Organization chart reporting year, all regional directors had colleagues in Haiti, and announced a a special program on the potential marginalized groups. The total income from fundraising
In 2016-17 Oxfam Novib developed a new, been recruited, and regional platforms series of additional measures to root out of traditional seeds in tackling food activities in 2017-18 not only exceeded
lean organizational structure, which was were installed. For most countries, line misconduct in its programs and offices, security and climate change. 6. Humanitarian work the budgeted amount by €23.3 million
further implemented and refined (i.e. minor management responsibilities have by including a worldwide comprehensive We work closely with our partners but was in fact up compared to last
changes were made) in the past year. now shifted from affiliates to Oxfam plan of action to strengthen 3. Gender – in collaboration with other Oxfam year (an increase of €19.4 million). The
International. safeguarding systems. We work towards changing the attitude organizations – to deliver specialized additional income was spent mainly on
Oxfam Novib is an Executing Affiliate of tolerance for gender discrimination. and efficient emergency response. Our the organization’s structural poverty
in thirteen countries, where the Oxfam projects 1.2 Activities and We challenge social norms and values expertise covers two broad themes: alleviation goals. The expenditure on
organization provides the necessary Oxfam Novib collaborates in several Financial Position that, even in the 21st century, try to emergency food security and livelihoods goals was €23.6 million higher than
legal commitments, operational Oxfam International projects, in order legitimize and even promote the use (EFSL), and water, sanitation and hygiene budgeted and €19.0 million higher than
services, management support and to further develop the confederation 1.2.1 Core activities of violence against women and girls; (WASH). Operating independently, without the previous year. The management and
systems to enable Oxfam to deliver and strengthen our Executing Affiliate Oxfam Novib is organized according to rules and structures that excuse the influence from any interest groups, we administration costs remained constant
effective programs. These countries are: role. In 2017-18 Oxfam Novib staff the following major themes: Governance violation of their sexual and reproductive design and implement programs that with a slight increase (up by €109
Afghanistan, Burundi, Cambodia, Egypt, contributed time and energy to these and Financial Flows, Food, Land and rights, and limit their full participation are sensitive to existing tensions and thousand compared to the budgeted
Mozambique, Niger, Nigeria, Occupied activities on a structural basis through Water, Gender, Youth, Conflict and in political and income-generating violence. We make communities more amount and down by €64 thousand
Palestinian Territory and Israel (OPTI), the implementation of several joint Fragility, and humanitarian work. activities. Together with our partners, resilient to future crises. To strengthen compared to the previous year). The costs
Somalia, Tunisia, Turkey, Uganda and projects in collaboration with the we provide women and girls with their ability to cope, we routinely of generating income were €0.7 million
Vietnam. confederation HR units. Among other 1. Governance and Financial Flows opportunities to mobilize and raise their incorporate disaster preparedness into lower than the budgeted amount and
things, these involve, the digitalization We support civil society organizations voices, to develop their leadership, our development work. We also take €0.2 million higher than in the previous
One Oxfam of HR in the country offices, developing in empowering citizens to hold to influence and participate in a long-term view of rebuilding when year. The balance of financial income
Oxfam Novib is an affiliate of the Oxfam the HR collaboration between The governments and the private sector decision-making spaces, and to create providing emergency aid immediately and expenditure was €2.0 million lower
confederation, in which 20 likeminded Hague and the country offices through to account, including protecting and sustainable economic opportunities after a crisis. We aim to strengthen and than budgeted and €3.1 million lower
organizations join forces to defeat workshops and training, and introducing widening the space for civic actions. in local markets using household empower local organizations so that compared to the previous year.
poverty and injustice. The confederation the National Staff Terms and Conditions We influence governments and methodologies. they have an in-depth understanding of
is active in more than 90 countries. (NSTCs) in the country offices where international institutions to tackle tax the needs of affected communities and In addition, by the end of the financial
Oxfam builds on the strengths of each Oxfam Novib is Executing Affiliate, with evasion and avoidance. We encourage 4. Youth are more prominently represented at an year 2017-18 Oxfam Novib had sufficient
affiliate to seek maximum impact and a the aim of bringing a high standard of them to increase the transparency and We aim to work jointly with young people international level. cash and cash equivalents to cover its
truly global reach. In accordance with working conditions to every office. accountability of their budgets, and to to challenge the barriers that prevent current debts and project obligations.
the Oxfam 2020 plan, the confederation ensure reliable fiscal policies. We engage them from enjoying their rights. Ensuring 1.2.2 Key financials The level of the contingency reserve
is nearing completion of the One Oxfam Looking back them in enhancing development aid and that the next generation is educated and The fiscal year 2017-18 was financially (€16.0 million) remained well within the
initiative, which means we are becoming In our previous Annual Accounts (2016- innovative finance. We advocate for healthy, can earn a living as employees a successful year. The net result was desirable range of €13 million to €20
a stronger Oxfam, with more affiliates 17) we reported on a year of recovery governments, international institutions, or as entrepreneurs, and awareness of negative €5.8 million which is €1.7 million million (see 3.1 ‘Consolidated balance
in the global South; a confederation and finalizing the new organization’s and the private sector to ensure an the importance of developing leaders lower than the budgeted amount of sheet as at March 31 after appropriation
that is sustainable, accountable, and structure and way of working. In 2017- inclusive, sustainable, and stable and movements for active citizens at negative €4.1 million and €2.8 million of net result’ and 3.6.6 ‘Notes to the
relevant in every country in which 18 Oxfam Novib continued to develop financial sector; a sector that works a young age are crucial factors in the lower than last financial year. However, reserves and funds’). Although the
we work. Improving the collaboration and optimize our business processes in the public interest and that serves global fight against inequality and the net result was significantly affected level of the contingency reserve did
will also enhance our efficiency, cost with an emphasis on the importance smallholders and people living in poverty injustice. Harnessing the energy and by the negative foreign exchange not drop below the desirable minimum
effectiveness, impact, and ability to of transparency, accountability, and with adequate financial services. strength of young people and working results which amounted to €3.5 million. in the financial year 2017-18, a decline
influence. integrity. Special attention was paid with this target group is core to Oxfam Out of the amount of €3.5 million, €0.8 is expected in the following years as a
12 OXFAM NOVIB ANNUAL ACCOUNTS 2017/2018 13
result of the anticipated income decrease Online media presence Entrepreneurs for entrepreneurs maximize mission-related objectives reserve and the earmarked reserves. organizations. Conversely, when a loan
due to the Haiti incident. The Board of In response to social media trends, we In 2017-18 Oxfam Novib organized while at the same time managing the The earmarked reserves are intended is disbursed, the corresponding amount
Directors adopted several mitigating have revised our strategy to diversify regular meetings to enable our business financial risks resulting from these for purposes that have been approved is withdrawn from the earmarked reserve
measures in the final multiannual budget our presence across different social ambassadors to inspire and learn from investment activities. The investment by the Board of Directors and the for loans and guarantees and added to
2018-2023, including a reduction in channels. This strategy, which will be each other and learn more about the criteria set targets on the following Board of Supervisors. the earmarked fund for loans to partner
operational costs and investments in the implemented next year, should make us organization’s work. aspects, amongst others: • The funds are resources that are tied organizations.
countries where Oxfam Novib contributes be less dependent on Facebook for both In October 2017, six business to particular purposes by third parties The second element of this reserve
as a Partner Affiliate. However, these online outreach and lead generation. ambassadors travelled to Vietnam • A single microfinance institution (MFI) consists of the value of the participating
measures do not fully compensate the with Oxfam Novib to see the impact of is eligible for a maximum of 7.5 percent Contingency reserve interests held in TCX, ASN-Novib Fund,
effect of the income drop therefore Last year was marked by some our microfinance work with their own of the total Oxfam Novib fund (ONF) The contingency reserve exists to ensure Oikocredit, Triple Jump, and Impact
additional mitigation through the use of major improvements in our online eyes. “A loan and coaching can help microfinance portfolio. that the organization is able to meet its Investments, which have been financed
contingency reserve is expected to be infrastructure which improved our ability companies forward and have a huge • Investments in any single local obligations in the future. This reserve is from Oxfam Novib’s own resources. These
required. Due to the fact that at the end to communicate Oxfam Novib’s results to impact on their environment”, one currency may not exceed 7.5 percent intended to guarantee the continuity of participating interests are held in order
of 2017-18 the level of the contingency our supporter base. business ambassador concluded. of ONF’s total microfinance portfolio the organization. In line with the model to enable the organization to carry out
reserve is €3.0 million above the (except in the case of XOF, where up to developed, the desirable size of the its lending activities as effectively as
desirable minimum, we believe that the Inspire and connect with supporters Supporter contacts 10 percent is permitted). contingency reserve has been calculated possible.
organization is well prepared for taking Supported by a new branding strategy, In line with our multi-year strategy, • Un-hedged local currencies may not on the basis of an estimate of the income
these mitigating measures. In addition, Oxfam Novib continued to inspire and we have continued to develop the account for more than 30 percent of flow insecurity and cost flexibility. The Earmarked reserve for hypo tax
Oxfam Novib plans to increase the level connect to both existing and potential infrastructure needed to place our ONF’s total microfinance portfolio. Directive for the Financial Management Staff members who work abroad and
of investments in direct fundraising in private donors. donors at the heart of our fundraising. • The total investment in subordinated of Charities (‘Richtlijn Financieel Beheer who are non-Dutch residents or of
the next years. Consequently, we expect To diversify our income channels and debt is limited to 15 percent. Goede Doelen’) was taken into account in non-Dutch origin are subject to ‘hypo
to increase the income base and be raise our brand awareness, we developed In 2017-18, Oxfam Novib’s ability to • The total indirect investments in making the calculation. This calculation tax’: an amount is withheld from their
able to start rebuilding the contingency and tested several strategies. Though respond to an extraordinary supporter holdings may not exceed 15 percent of indicates a desirable minimum size of €13 gross monthly salaries which is equal
reserve within the next three-year period. the initial results were encouraging, we contacts situation was tested, when the total microfinance portfolio. million and a maximum size of €20 million. to the wage tax that Oxfam Novib would
This shows that the organization is well unfortunately had to postpone further the Haiti misconduct received extensive be required to withhold if the staff
prepared to continue its operations in testing due to the Haiti Incident. We media attention. The investment criteria are laid down Earmarked reserve for Oxfam Novib member in question were resident in
the next financial years, retaining its also ran some small-scale pilots to turn in the contract between Oxfam Novib projects the Netherlands for tax purposes. Oxfam
healthy financial position, with no need engaged supporters into donors, which In 2017-18 Oxfam Novib handled nearly and Triple Jump BV. In addition, the The ‘earmarked reserve for Oxfam Novib Novib adds the hypo tax withheld to a
of additional external funding in the form we will follow up in the coming year. 76 thousand communications. This criteria are measured and monitored projects’ consists of the part of the provision and uses the funds in question
of loans from third parties. significant increase on the previous year via quarterly portfolio and management unrestricted net assets comprising the to pay any wage tax or equivalent tax due
Legacies and bequests is directly related to the news about reports. funds earmarked in any year – from in respect of the staff members working
1.2.3 Fundraising In 2017-18 we had more personal Haiti in February 2018. To handle this the income from direct fundraising, abroad. During the financial year 2017-18
We are very grateful for the ongoing conversations than ever before with significantly larger workload and still The foreign exchange risk on loans from the Dutch Postcode Lottery, and it was decided to release this reserve to
commitment of the many supporters our supporters on the subject of ending respond to our donors in a timely manner, granted (for microfinance in developing from the net income of the publishing the contingency reserve. Any future need
who have stood with us in good times poverty through making a bequest. As a we called upon support both internally countries) is hedged by means of forward house – for program development, to respond to wage or equivalent tax will
and bad times. They have shown their result, we received 41 legacy gifts, and and externally. exchange contracts. In order to avoid any program implementation and innovation. be withdrawn from the hypo tax provision
appreciation for our important work many more people pledged to leave a currency risk to our beneficiaries, such Approved grants to be disbursed from or contingency reserve.
aimed at the poor and extreme poor all legacy gift to Oxfam Novib, for which we 1.2.4 Policies contracts always match the duration and these funds to partner organizations
over the world. Even during and after are immensely grateful. Investment policy amount of the long-term microfinance and own project implementation are Earmarked reserve for management and
the publicity surrounding the Haiti Oxfam Novib’s investment activities contract, except where there is no recognized in the statement of income administration costs
safeguarding incident, the vast majority Major donors and private donations relate to our mission to end injustice and market for forward exchange contracts and expenditure and charged to this The ‘earmarked reserve for management
of our private donors continued to Private individuals, family foundations and poverty. In order to realize this mission, in the local currency. However, in earmarked reserve. and administration costs’ (the ‘ICR
support us. other organizations contribute to Oxfam the organization invests in Oxfam accordance with the investment criteria reserve’) is used to finance operational
Novib’s mission in a special and substan- Novib Fund which is managed by Triple mentioned above, the total un-hedged Earmarked reserve for loans and support costs. The level of this
We started our fiscal year with a tial way. Some of these donors have a Jump BV on behalf of Oxfam Novib. The FX exposure may not exceed 30 percent guarantees earmarked reserve is determined with
steady growth in income and supporter Personal Fund, which Oxfam Novib man- Fund provides funding to microfinance of the total investment portfolio. The earmarked reserve for loans and due regard for internal guidelines
numbers. At the end of our fiscal year ages for them. In 2017-18 we increased institutions in order to support access guarantees comprises two elements. designed to guarantee the continuity of
331 thousand people were supporting our network and engaged a number of new to finance for the poorest, because they Policy on the size and the function of The first element consists of all funds the project cycle.
our work financially, which is a growth of major donors. In 2017-18 the possibility of have no access to the official banking reserves and funds intended for the provision of loans
1.2 percent compared to 2016-17. This supporting specific projects was intro- system. By way of an exception Oxfam In accordance with the Dutch Accounting and investments in the Triple Jump 1.2.5 Risk and uncertainty
growth was lower than initially expected duced to major donors; their money will Novib also made equity investments in Standard for Fundraising organizations Innovation Fund. When a loan is repaid, Oxfam Novib works in a complex, multi-
due to the Haiti incident. For more details be entirely spent on the project of their the past (see 3.6.2 ‘Financial assets’). (RJ 650), Oxfam Novib’s equity is divided a corresponding amount is added to level and dynamic environment. It is
on the number of donors refer to section choice, while Oxfam Novib will inform the into reserves and funds: the earmarked reserve for loans and therefore of paramount importance
3.7.1 Income from private individuals. donors of the results once a year. Oxfam Novib has set a number of • Within the reserves, a distinction guarantees and withdrawn from the to identify risks on different levels
investment criteria which allow it to is made between the contingency earmarked fund for loans to partner within the organization and manage
14 OXFAM NOVIB ANNUAL ACCOUNTS 2017/2018 15them adequately. Risk management, and the Board of Directors, before being method, ‘Risk Assessment Method Oxfam data belonging to the people and Council for advice. Oxfam Novib Innovation Star and is Chair
throughout the organization, is submitted to (the financial committee of) Novib’ (RAMON) is mandatory whenever organizations with which we work. Oxfam Novib adheres to the Advisory of Oxfam Sweden. She is also Chair of the
therefore considered a high priority. the Board of Supervisors. we take on a new partner organization. People have the right to access to their Scheme for the Remuneration of Executive Board of the Oxfam Novib Fund.
Oxfam Novib has integrated risk Based on the risks mentioned in the In addition, an annual update of the personal data and the right to rectify Directors of Charity Organizations of Within Oxfam International, Ms. Karimi
management at all organizational risk registers, we determine mitigation findings is obligatory. We manage risks these. The General Data Protection Goede Doelen Nederland (the Association is a member of the Executive Board,
levels, as well as in our relationships measures which are monitored through regarding our partners through this tool Regulation (GDPR) is a new EU directive of Fundraising Organizations) and the the Executive Board Operational
with our partner organizations. Our risk the Balanced Score Card and through the and through periodical reporting and field which replaced the previous data SBF Code of Good Charity Governance Committee, the Executive Board Long
approach is based on the internationally annual update of the register. In some visits. As our country offices manage protection directive on May 25, 2018. (replaces the Wijffels code). The Term Development and Knowledge
recognized management model for cases, we create internal project teams our local partners, potential risks are The GDPR requires personal data to ‘Remuneration Policy for the Board of Committee, the Executive Board, and the
risk management, COSO (Committee of to deal with these risks. carefully managed from the country be processed lawfully, fairly and in a Directors’ is based on the criteria of Executive Board Finance, Risk and Audit
Sponsoring Organizations) and on the itself. Payments to partner organizations transparent manner. In order to ensure this Scheme and on the Code relating to Committee. She also participates in the
risk management policy of the Oxfam One of the important vulnerabilities are made only when all contractual that it was prepared for this change remuneration, job grading, and maximum Humanitarian Committee.
confederation. that the Haiti-incident has thrown into conditions have been fulfilled. in the law, Oxfam Novib launched an salary for directors. Ms. Karimi represents Oxfam Novib on the
sharp relief, is the risk we have as Oxfam internal GPDR project and adopted Board of the Foundation of Cooperating
Risks at confederation level: One Oxfam Novib in relation to the Oxfam brand. The RAMON method is used within the the ten-step approach promoted In the 2017-18 financial year there were Aid Organizations (SHO, the Dutch
The financial year 2017-18 is our first The different Oxfam affiliates have been countries in which Oxfam Novib is acting by the Dutch Supervisor (Autoriteit changes in the composition of the Board umbrella organization for emergency
year of operation after the transition to increasingly working together to achieve as an Executing Affiliate. In the countries Persoonsgegevens). Following an of Directors of Oxfam Novib. Ms. van der appeals).
the Oxfam 2020 model, working as One our mission, which means that there in which we are a Partner Affiliate, assessment of the processing activities Woude completed her assignment as the
Oxfam in country offices. This model is also a shared brand risk; this again we rely on the methodology of other across the organization, we created Director of the International Department In September 2017, Farah Karimi
strengthens the way we work together stresses the importance of a mutual risk affiliates to cover the risk when taking a data processing register (one of the as the country offices transitioned to announced that she would be leaving
on our common mission, but also brings framework. on a new partner. key requirements under the GDPR). We the One Oxfam model. Mr. van der Lee the organization by October 1, 2018
with it an interdependency risk that raised awareness and built capacities stepped down as the Director Programs at the latest. Farah Karimi has led
requires careful management. Risks at the country level: control Risks at the personal level: security and on the new legislation, ensured the and Campaigns and was replaced by Mr. Oxfam Novib for ten years, during
framework safety user-friendliness of our websites and Meijers, appointed as Director Programs which the organization, as part of
Within the One Oxfam model, Oxfam Novib We also provide a control framework As we work in high-risk, conflict- updated our privacy statements. As part and Campaigns. Oxfam International, has grown into a
acts as Executing Affiliate in thirteen in the countries in which Oxfam Novib sensitive and fragile areas, the safety of of our internal awareness-raising, we movement of people fighting poverty,
country offices, providing back office is an Executing Affiliate; all of these our employees is paramount. Oxfam Novib developed an online course that was In September 2017, Farah Karimi inequality, and injustice, with worldwide
services. In the countries in which we are country offices have separate risk provides mandatory security training followed by all staff prior to May 25, announced that she would be leaving influence.
active only as a Partner Affiliate, other profiles (including financial risk profiles). for all travelling employees, a global 2018. We are determined to make the the organization by October 1, 2018 at
Oxfam affiliates provide these services Wherever and whenever needed, Oxfam toolkit for security management, security fundamental right to respect for privacy the latest. The Board of Supervisors Arnold Galavazi (1956)
(upon which we rely). Line management Novib supports its country offices from briefings in-country and constant an integral part of how we work with has started the process of recruiting a Mr. Galavazi was appointed as Director
in all country offices is done by Oxfam the office in The Hague. We minimize monitoring of the security situation in information about people. new Executive Director, who will remain of Operations in September 2014 and
International. risks by providing support and training, designated areas. If a security situation responsible for Public Engagement, as such is responsible for the Quality,
as well as through a solid control prevents our staff working safely, The measures Oxfam Novib has taken Corporate Communications, and Finance & Control, Human Resources, ICT,
Close cooperation within the framework. Furthermore, all main risk our projects continue to be closely to mitigate the risks mentioned in this Innovation. Institutional Funding and Donor Relations
confederation is needed to mitigate areas are tested and checked regularly monitored from another location. section are sufficient. In addition, the and Facility Services units. Mr. Galavazi
the risks of interdependency, as well through the internal audits. When audits levels of the reserves are sufficient For more information refer to 1.1 ‘General holds consultation meetings with the
as a clear framework on roles and prove that risks are not managed and In order to ensure a safe working to absorb the financial consequences Information’ and for remuneration details Works Council and negotiates with the
responsibilities and on how, as a mitigated well enough, we draft an environment for all Oxfam Novib related to these risks. refer to 3.7.9.2 ‘Salary and emoluments union on the collective labour agreement
confederation, we are working together action plan, provide support, and plan a employees, the organization complies paid to directors’. on behalf of the Board of Directors.
to prevent risk areas from materializing follow-up. with an anti-bullying and anti- 1.3 Information Mr. Galavazi also chairs the Value Board,
and to mitigate them. harassment policy in addition to about the Board of Composition of the Board of Directors which oversees and defines investment
Risks at the project level: partner the Code of Conduct. Oxfam Novib thresholds, and evaluates, prioritizes,
Risks at the organizational level: assessments also provides in-house confidential
Directors Farah Karimi (1960) and selects new investments for the
The Risk Register Risks within the projects we execute are counselors and initiated a new Speak-Up The Directors of Oxfam Novib are Ms. Karimi started as Executive Board of Directors’ approval.
Oxfam Novib’s Risk Register identifies managed throughout the entire process. protocol as of March 2018. Following the appointed following a formal and Director on February 1, 2008. She was Within the Oxfam International
potential internal and external risks, The Oxfam Novib Project Cycle describes Haiti case, Oxfam launched a worldwide transparent procedure. Vacancies on reappointed to this position by the confederation, he is a member of the
classifies these risks and defines and our ways of working and the checks and comprehensive plan of action to the Board of Directors are published Board of Supervisors in February 2016. Executing Affiliate Working Group.
monitors mitigation measures. Our risk balances we have implemented. strengthen its safeguarding measures. internally and externally. According to As Executive Director and Chair of the In April 2017, Arnold Galavazi announced
register is alternately renewed and this formal procedure, the members of Board of Directors, Ms. Karimi has final that he will not be seeking a second
updated every six months, on issues When a (local) partner organization Risk at privacy level: GDPR and data the Remuneration Committee of the Board responsibility for the strategic direction term as a Director of Operations. He
such as the progress of the (renewed) implements a project, a financial and privacy of Supervisors work with the Executive and organizational development of will be leaving the organization by
mitigation measures. Both renewal governance risk assessment is carried As a rights-based organization, Oxfam Director to select the most suitable Oxfam Novib. She is also the responsible September 1, 2018. Arnold Galavazi has
and update are carried out in close out as part of the assessment of this Novib is committed to taking care with candidate. A formal ‘voorgenomen besluit director for the Public Engagement and tirelessly worked and dedicated himself
consultation with the management team partner. A uniform risk assessment the use and processing of personal ter benoeming’ is submitted to the Works Corporate Communication units, the throughout the last four years. Mr.
16 OXFAM NOVIB ANNUAL ACCOUNTS 2017/2018 17Galavazi contributed tremendously to the In the next financial year we encourage Account), due to both reduction of the MULTI ANNUAL BUDGET 2018-2023
change to project organization objective. our public to follow on our projects, such number of existing donors as well as
as the Climate Change Combating, Sowing lower rate of increase of new supporters. FY FY FY FY FY
Ton Meijers (1958) Diversity and Harvesting Security program, This is a direct consequence of the Haiti Amounts in thousands of Euros 2018-19 2019-20 2020-21 2021-22 2022-23
Mr. Meijers started as Director of Programs supported by the Swedish International incident. This is partly compensated by
and Campaigns in September 2017. He is Development Cooperation Agency (Sida), higher other unrestricted income (an
the responsible director for the Thematic which is having a major positive impact on increase of €1.6 million), mainly related INCOME
Units, the Program, Support & Impact unit, the lives of women farmers in Asia, Africa, to ICR income. Income from private individuals 20,702 22,038 22,961 23,991 25,081
and the Humanitarian Team. Since Mr. and Latin America. The IKEA Foundation- Income from companies 33,644 26,971 22,035 22,817 23,409
Meijers first joined Oxfam Novib in 1994 backed Empower Youth for Work program, To compensate for the Haiti incident
Income from lottery organisations 15,200 16,900 18,700 18,800 19,000
he has held various positions, including is as well making (and will continue related income drop of €3.6 million, the
Income from government subsidies 81,770 77,363 78,361 80,163 81,868
those of Program Officer West Africa, making) a remarkable difference in the Board of Directors took a decision to
Regional Manager East Asia, Head of lives of young people from Bangladesh to use the funds set aside in the reserves Income from affiliated non-profit organisations 29,930 31,370 34,277 35,468 36,776
the Knowledge & Program Management Pakistan. in the previous years to the amount of Income from other non-profit organisations 0 0 0 0 0
Department and Manager of the Program €2.6 million (of which €1.4 million from Income from delivery of products / services 4,608 4,608 2,984 1,359 1,359
Support & Impact Unit. Mr. Meijers is also Alongside these areas, Oxfam Novib the contingency reserve and €1.2 million Other income 0 0 0 0 0
a member of the Value Board. Within will have a change of leadership in the from the project reserve). The remaining
Income from fundraising activities 185,854 179,248 179,317 182,599 187,492
Oxfam International, he is a member of 2018-19 fiscal year, when our Director amount was taken as a reduction in the
the Influencing Platform and the Long- of Corporate Groups, Arnold Galavazi, operational costs and investments in the
Term Development & Knowledge Platform. and our Executive Director, Farah Karimi, countries where Oxfam Novib acts as a EXPENDITURE
Furthermore, Mr. Meijers represents Oxfam hand over the management of the Partner Affiliate. Food, Land and Water 43,041 41,558 41,233 41,630 42,432
Novib in the Dutch Relief Alliance. organization to new leaders.
Financial flows and Governance 43,155 41,672 41,288 41,626 42,428
By the end of the fiscal year 2017-
Conflict and Fragility 41,508 40,022 39,796 40,292 41,090
1.4 Outlook The final budget approved by the Board 18 the level of the contingency
of Directors and Board of Supervisors in reserve (€16 million) is well above Gender and Youth 37,399 35,913 35,774 36,358 37,156
For the coming period Oxfam Novib will April 2018 assumes a net positive result the desirable minimum of €13 million Emergency 1,959 1,809 1,218 1,227 1,237
continue delivering on our mission, of € 1 million for the fiscal year 2018-19. and the withdrawal from the project Public Engagement 7,827 8,462 8,756 8,783 9,025
programs and campaigns, showing that reserve did not exceed the budgeted Expenditure on goal 'structural poverty alleviation 174,890 169,437 168,064 169,917 173,369
we are worthy of the trust of our public. The total income budgeted for the amount. In addition, Oxfam Novib plans
We are investing heavily in safeguarding fiscal year 2018-19 is €0.9 million lower to increase the level of investments
our programs and becoming a global compared to the budget published in the in direct fundraising in the next years Direct fundraising 6,243 7,227 7,645 7,524 7,839
leader in protecting people against previous Annual Account. The restricted therefore the Haiti related income drop Third-party campaigns 478 480 482 484 485
abuses of trust and of power. We will income from institutional donors is €1.1 is considered incidental. Due to these Securing government grants 1,563 1,570 1,587 1,605 1,623
ensure to make more visible that we million higher compared to the previous reasons the choices made for the
Costs of generating income 8,284 9,276 9,714 9,613 9,948
are reliably, competently, and honestly budget while the unrestricted income is mitigating measures are considered
committed to the highest standard €2.0 million lower. The lower unrestricted responsible and sustainable and we
of integrity. These topics will also be income is mainly related to the expected believe that the organization is well Management and administration costs 2,440 2,499 2,549 2,573 2,619
amongst the main focus points of the drop of the direct fundraising income prepared to continue delivering its
upcoming Oxfam confederation strategic in The Netherlands (a decrease of €3.6 mission in the future. Expenditure from fundraising activities 185,614 181,212 180,327 182,102 185,937
planning review, in which Oxfam Novib will million compared to the multi annual
participate. budget published in the previous Annual
Balance of financial income and expenses 796 1,114 1,170 1,227 1,285
NET RESULT 1,036 (849) 161 1,724 2,841
APPROPRIATION OF NET RESULT
Added / charged to: contingency reserve (1,412) (1,916) (1,387) 114 1,166
Added / charged to: project reserve (1,192) (800) (800) (800) (800)
Added / charged to: other earmarked reserves 4,559 2,827 3,356 3,468 3,583
Added / charged to: funds (919) (960) (1,008) (1,058) (1,108)
NET RESULT 1,036 (849) 161 1,724 2,841
18 OXFAM NOVIB ANNUAL ACCOUNTS 2017/2018 19Board of
Supervisors’
Report
Sven TorfinnThe Board of Supervisors has a supervisory role at Oxfam Novib Joyeeta Gupta (1964) Laurien Koster (1950) committee conduct performance reviews with the members of
and functions as the employer and a sounding board for the Board Ms. Gupta was first appointed in November 2012, with a maximum Ms. Koster was appointed in June 2015, with a maximum period of Board of Directors. In 2017, the committee recruited a new Director
of Directors. The Board of Supervisors upholds the principles of period of tenure ending in 2020. tenure ending in 2024. She has been Chair of the Remuneration of Program and Campaigns, Ton Meijers. Due to the announced
the Code of Good Governance for Charities and acts accordingly. Ms. Gupta is Professor of Environment and Development in the Committee since June 2015. departure of Farah Karimi as Executive Director, the remuneration
The Board of Supervisors exercises its supervisory role beforehand Global South at the University of Amsterdam (UvA) Faculty of As of 2017, Ms. Koster is the independent Chair of the Children’s committee has taken up the recruitment process to find a new
as well as retroactively. Social and Behavioural Sciences, and at the UNESCO-IHE Institute Rights Collective (KRC), a coalition of NGOs. Until 2015, Ms. Koster Executive Director of Oxfam Novib.
for Water Education in Delft. Her other positions include that of was Chair of the Netherlands Institute for Human Rights and of its
The mandate and tasks of the Board of Supervisors are laid down Vice-Chair of the Committee on Development Cooperation and predecessor, the Equal Treatment Commission. Laurien Koster’s Oxfam International
in statutes and further detailed in a regulation. Members of the membership of the Advisory Council on International Affairs. She is prior experience includes being President of the Court in Alkmaar The Oxfam International Board of Supervisors holds at least one
Board of Supervisors are recruited on the basis of an agreed presently Co-Chair of the UN Environment’s Global Environmental and more than 32 years as a judge and a lawyer. face-to-face meeting each year. As mentioned, the Chair of
profile and through open advertisement. Outlook. Oxfam Novib’s Board of Supervisors participates in these meetings
The Board of Supervisors as a sounding board on behalf of the organization. Among other things, the Oxfam
The Board of Directors of Oxfam Novib consists of an Executive Kees Tukker (1955) The Board of Supervisors is regularly informed about and International Board of Supervisors reviews and adopts proposals
Director and two Directors. The Directors are primarily responsible Mr. Tukker was first appointed in November 2012, with a maximum consulted on major changes and important strategic choices for confederation development, operational plans, budget, and
for the realization of the statutory objectives and take the period of tenure until 2020. He is a member of the financial relating to organizational development, operations, finances, the governance in its meetings. As our Chair was unable to attend the
necessary decisions to this end. committee of the Board of Supervisors. strategic direction of Oxfam Novib and decisions relating to Oxfam March 2018 meeting, Board of Supervisors member Peter Verbaas
As an independent consultant and advisor, Mr. Tukker has worked International. Recurring topics include the ‘Oxfam 2020’ transition attended this meeting in his place.
In 2017-18, the Board of Supervisors met five times for the regular for organizations in the media and in mental health care. As a process, working as a project organization, major projects,
face-to-face meetings and held a strategy day together with the media professional he has held several leading positions in major strategic policy choices of the organization, innovation and the Compensation
Board of Directors. The Supervisors, and the Chair in particular, public broadcasting organizations. He is also working on several integrity project. Members of the Board of Supervisors perform their duties
also regularly act as a sparring partner and sounding board for books, one of them being The Food Commissioner. This factual unremunerated. Costs of travel and accommodation made in
the Board of Directors. In addition, board members commonly join story about a leading figure in the Dutch food supply system The Board of Supervisors in its supervisory role the execution of their function are reimbursed, based on a
meetings with stakeholders and events organized by Oxfam Novib. during Word-War II will be published in the fall of 2018. In its supervisory role, the Board of Supervisors approved the regulation applicable to all Oxfam Novib staff members and
Board of Directors’ Balanced Scorecards, the 2016-17 Annual volunteers of Oxfam Novib. A total of €2 thousand was paid out in
Composition of the Board of Supervisors Peter Verbaas (1959) Accounts and Board Report, the 2017-18 Oxfam Novib Annual reimbursements in 2017-18.
The Board of Supervisors has six members and is chaired by Hanzo Mr. Verbaas was first appointed in November 2012. His maximum Report and Annual Accounts, and the 2018-19 Annual Plan and
van Beusekom. At the time of writing, the Board of Supervisors period of tenure will end in 2021. He is Chair of the Financial Budget. The 2016-17 Annual Report on Internal Audits and the Closing remarks
was in the process of recruiting new members. The maximum Committee. Annual Report on possible fraud and irregularities were also The Board of Supervisors would like to thank our member Kees
period of tenure of the current Chair expires on January 1, 2019. Mr. Verbaas is a partner at Charistar, a not-for-profit consultancy discussed with the Board of Supervisors. Tukker for his diligent service and excellent insights over the last
Kees Tukker does not seek reappointment for third term, as he for impact with clients in the charity sector, culture, education, six years.
wishes to dedicate his time to his writing. Moreover, the Board and sports. His other positions include a non-executive position The financial committee, a subcommittee of the Board of
of Supervisors wishes to recruit a seventh member. The statutes at VU Medisch Centrum Fonds, and membership of the Non- Supervisors, prepares advice for the Board of Supervisors on The Board of Supervisors would like to take this opportunity to
prescribe that the Board of Supervisors consists of three to seven Executive Board of ASN Beleggingsbeheer. He teaches at Nyenrode the annual accounts, the budget, and the financial reports. The thank all Oxfam Novib staff members for their outstanding work
members. University and the Center for Private Wealth Management. committee members also monitor major projects, the follow-up in the past year. We should not forget all the excellent work we
of points raised in internal and external audits, recommendations accomplish, and that Oxfam Novib has a positive impact on the
Hanzo van Beusekom (1972) Jan van Zijl (1952) in the auditor’s management letter and the updating of the Risk lives of so many. We are currently going through difficult times, as
Mr. van Beusekom was first appointed in January 2010, with a Mr. van Zijl was appointed in June 2015, with a maximum period of Register. a result of the deplorable actions of a few staff members within
maximum period of tenure ending in January 2019. He has been tenure ending in 2024. He was appointed on the recommendation The Board of Supervisors is kept informed by the Board of the confederation. We trust that Oxfam Novib will overcome the
Chair of the Board of Supervisors since October 2013. Mr. van of the Works Council. Directors as well as the Works Council, and through staff difficulties and will emerge better and stronger.
Beusekom is a member of the remuneration committee. As Chair Mr. Van Zijl is a former Member of Parliament. He is also a previous presentations on Oxfam Novib’s various fields of activity. The
of Oxfam Novib’s Board of Supervisors, he is also a member of the Chair of the MBO Council and of the Cooperation Organisation Board of Supervisors also keeps abreast through the members’ Hanzo van Beusekom
Board of Supervisors of Oxfam International, and has been elected for Vocational Education, Training, and the Labour Market. individual contacts within the organization and via participation in Chair Board of Supervisors Oxfam Novib
Chair of the Governance Committee of Oxfam International. Mr. van Until January 2017, Mr. van Zijl was Chair of the Dutch Council events and activities.
Beusekom is a partner at Clear Conduct, a specialized strategic for Refugees (Vluchtelingenwerk), and he is Vice-President of
consulting firm on regulatory practice, risk management, and the pension fund ABP. His other positions include that of Chair The Board of Supervisors as an employer
business conduct. He is a senior consultant with the World Bank of the Foundation Learning from Each Other (an NGO in Peru), A second subcommittee of the Board of Supervisors is the
aiming to improve financial inclusion, a visiting lecturer at several membership of the Advisory Board of Foundation Institute Gak remuneration committee, as the Board of Supervisors also serves
universities, and serves as a board member at sSSIO. Fund, and Chair of World Skills Netherlands. as the employer of the Board of Directors. The members of this
22 OXFAM NOVIB ANNUAL ACCOUNTS 2017/2018 23You can also read
