Habitat for Humanity Sri Lanka

Annual Report 2012 1 July 2011 - 30 June 2012

Building Homes, Changing Lives…..

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Our Vision A world where everyone has a decent place to live.

Our Mission Seeking to put God’s love into action, Habitat for Humanity brings people together to build homes, communities and hope.

Building Homes.. Building Hope..

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Habitat for Humanity is a non profit organization that seeks to eliminate poverty housing, and to make decent shelter a matter of conscience and action. Habitat is dedicated to the vision of a world where everyone, families and children have a decent place to live. Working together with people from all backgrounds, races and religion, Habitat for Humanity builds build and renovates houses in partnership with families in need. Since 1976 Habitat for Humanity International has built, renovated and repaired houses with more than 500,000 families in more than 100 countries around the world – providing safe, decent and affordable shelter for more than one million people. Habitat for Humanity began working in the Asia Pacific region since 1983. For FY 11 HFH in Asia pacific served a total of 22,600 families out of the 81,339 families worldwide. In addition Habitat continues to bring permanent housing solutions to thousands of families affected by natural disasters.

Habitat for Humanity Sri Lanka is a registered non-governmental organization whose mission is to provide simple, decent, affordable housing to people in need. To receive assistance from a local affiliate project, a family must live in unfit or inadequate housing and must not be able to afford or obtain better housing through conventional means. Partner families are selected based on their ability to contribute labor and repay the cost of the house. Religion, Ethnicity, Political status Kinship and Friendship do not determine a family's eligibility. Created in 1995, Habitat for Humanity Sri Lanka (HFHSL) completed building of it's 10,000th house in 2008. This equates to 770 homes a year on this glorious island that have brought happiness and a sense of worth to a large number of people who would otherwise be living below the poverty line, without the help and support of our organization. Operating from four Habitat Resource Centers (HRC's) that cover the length and breadth of the island, we have become next to the government, the most productive home builders in the country.

Habitat for Humanity International

Habitat for Humanity Sri Lanka

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Table of Contents

Housing Situation in Sri Lanka 5 A message from the National Director 6 Board of Directors 7 Work at a Glance 8 Home Partners Case Study 9 Disaster Response 10 Our Partners 11 Global Village 12 Environmental Initiatives 13 Sri Lanka Rebuild 2012 14 Our Appreciation 15 Financial Information 16

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Housing Situation in Sri Lanka

40% of Sri Lankan’s live in poverty housing.

33% of Sri Lankan households have no access to sanitation (UNICEF).

15% of Sri Lankan households have no access to safe drinking water (UNICEF).

The torrential rains that lashed the Eastern Province of Sri Lanka in Dec 2010 and beginning of 2011 caused severe flooding and affected over a million people. As the Disaster Management Centre of Sri Lanka states, all the wells in the area got polluted due to overflow of septic tanks and flood waters (more than 50,000 wells) .

Recent Disaster

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National Directors Message... By the beginning of Year 2011, Sri Lanka had experienced one of the worst floods in its recent history that affected more than 1 million people. Habitat Sri Lanka partnered with a number of donors local and international to assist many of these families. Some of the work is detailed in this report. Other than disaster response, Habitat Sri Lanka continues to support numerous families in its regular loan programs. Over the years HFHSL has struggled to collect all repayments because of several reasons. However, due to a strategic shift in the past three years we have now managed a 92% repayment rate and hope to improve in the coming years. Environmental Initiatives have always been part of Habitat Sri Lanka’s strategy. We believe that a holistic approach to housing is the key to sustainable living; therefore, we try as much as we can to not only build/improve a home for the undeserved communities but to also assist them to engage in simple and cost effective solutions to their everyday living while at the same time, caring for their environment. This year we partnered with MilleniumIT and provided families with solar cookers, home-gardening seeds, compost bins as well as training and support in the Batticaloa district. Habitat looks forward to continue involving more partners in taking this approach when building homes. Moving forward, we hope to see more and more of the Sri Lankan local corporate sector getting involved in assisting our own people by giving them a hand up. Sri Lanka is now developing very rapidly especially in the Western Region but unfortunately, the war affected areas in the North and East have still got a long way to go. We hope that the Local and International Community will continue to support us to develop these areas so that Sri Lanka can move forward as a whole. Last but not least, I wish to thank all the donors and partners who have been so generously supporting us and also to place on record the sacrificial and committed work of our Staff and Board members who helped our achievements.

Tony Senewiratne, National Director

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Board of Directors FY2011-FY2012

President - NBOD, HFHSL Rev. Fr. Ciswan De Croos

Director - NBOD, HFHSL Mr. Lakshan Madurasinghe (MAL)

Director - HFHSL Mr. A. Samuel Thavarajah (HRC – East Rep)

HFHI Associate Director, Regional Programs Ms. Kelly Koch

Vice President - NBOD, HFHSL Rev. Fr. Lokendra Abhayaratne

Director - NBOD, HFHSL Mrs. Nirmalie Wickremasinghe (MAL)

Director - NBOD, HFHSL Mr. Rathika de Silva - (MAL)

Company Secretary Ms. Michelle Elias Gunaratne

Secretary - NBOD, HFHSL Maj. Gen. Lohan Goonewardene

Director - NBOD, HFHSL Mr. Vinzy Anthick (HRC – Central Rep)

Director – NBOD, HFHSL Mr. Rohan T. Fernando (MAL)

Treasurer - NBOD, HFHSL Mr. Ramesh Schaffter

Director - NBOD, HFHSL Mr. Bews Rodrigo (HRC – South Rep)

Director – NBOD, HFHSL Mr. Yu Hwa Li (MAL)

Director - NBOD, HFHSL Ms. Amila de Mel (MAL)

Director - NBOD, HFHSL Ms. Sarita de Fonseka (MAL)

HFHI Director, Regional Programs Mr. Peter Gape

MAL—Member at Large

FamiliesServed

01/07/2011-30/06/2012

3004

Batticaloa

Building Training Centre

Wattala/Ja Ela96 Small Loans

Galle

Building Training Centre

Central

Western

Eastern

Southern

Kurunegala 95 Small Loans

95 Small Loans

132 Small Loans

2032 DR

Solar Cooker

Home Garden

Compost Bin

Matale 137 Small Loans

Houses

Solar Cookers

Home Gardens

Compost Bins

Moratuwa75 Samll Loans

New HousesCore Houses

Small Loans

Repairs

Diasaster Response

210 DR

Kilinochchi21 Repairs

Mannar

Jaffna

101 Core Houses

10 New Houses

*

*

**

* 54 families from DR Program also received

Families Served for FY2011-FY2012

Area Loan Program DRPNorth – 132Batticaloa 132 2032Galle 95 –Moratuwa 75 –Wattala 96 –Kurunegala 95 –Matale 137 210Total 630 2374

8 Our Work at a Glance

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A Strong Foundation - Sabuhan's Dream

Sabuhan spent 20 years fleeing from one refugee camp to another with his wife and two daughters. As the war ended and new hope

dawned, all Subuhan's family was left with was a 4x5 feet shelter in Vaddakandal, Mannar. Even so, he didn't wait for things to happen, he decided to partner with Habitat to build his house. He did much of the work himself; digging the foundation trench and mixing the cement. Sabuhan believes in a strong foundation not just for buildings, but also for life. With a stable, safe and happy home, he plans to give his children a good education, support his wife and grow a home garden during the next monsoon. He has already set up a grocery shop to supplement his income and has taken another loan from Habitat to expand his house. After years of dreaming; he has been rewarded with a dignified home and a foundation for a meaningful life.

Home Partners Case Study

Peace for his family, at last!

Murugesu’s family including 5 girls have been living in a tiny tent since the war ended. With no electricity, running water or even a toilet, they severely felt the indignity of their situation. He earns about 10,000 rupees as a fisherman but this is barely enough to support his large family. Moreover, his left arm does not work properly and as a result he cannot go to work everyday, and they often went without food. They were forced to go into the jungle to collect green leaves to supplement their diet. When it rained the floor would become muddy and his daughters’ school books would get wet but he could not afford to buy his children new school shoes or books. Murugesu now owns a house where he raises his daughters with pride. “I want my children to have the mindset to move ahead in life” says Murugesu and he believes a home will give him and his family the strength to do so. He now concentrates on increasing his income, improving their diet and supporting his daughters’ education.

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Disaster Response

2,374 families improved their lives with new or repaired homes and building in stages.

1,783 contaminated wells cleaned with funding from Coca Cola.

1,750 posters distributed to families on water filtration.

500 Institutions in Batticaloa district have large poster illustrating water sanitation.

43 trainings held in schools and 20 trainings held in villages on water filtration and conservation.

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Our Partners Habitat for Humanity Japan with funding from Japan Platform

OVER 336 beneficiaries. 84 Core houses. 84 toilets.

COCA-COLA

2,250 posters distributed to families & institutions on water filtration. 63 trainings held in schools and villages on water filtration and conservation.

Millennium IT

54 new houses constructed by MIT. OVER 30 volunteers from MIT worked on beneficiary homes.

GlaxcoSmithKline

149 temporary shelters for flood victims.

ODEL

61 Temporary Shelters put up for flood victims in Polonnaruwa.

HFH Sri Lanka is grateful for its partnerships with multi-lateral agencies and corporations. With their support, Habitat Sri Lanka is able to help families build homes and hope!

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Global Village

Over USD 123,101 donated 19,236 volunteer hours

put in Over 100 houses

worked on From 9 countries.

“Everyone should do something like this; go to a country that's unfamiliar and see people's regular life. It would really help deal with issues such as people not being able to respect each other” Gail Wootan, from Washington, USA.

299 Volunteers

* Each volunteerdecreases the cost of a build by 5-10%.

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Environmental Initiatives Impacts Habitat home partners Vijitha, her husband Sahaynathan and their three children live in Thiraimadhu village, Batticaloa.

Vijitha learned how to make a Solar Box Cooker with Habitat and began boiling eggs and cowpeas. Soon she was cooking full meals of rice and vegetables in her cooker- even baking cakes for dessert! Thanks to the Solar Box Cooker, Vijitha no longer has to collect firewood every day and has time to tend to other things. She took classes at a local Handicraft Center and learned how to make crafts. Vijitha now earns an additional USD $8- $10 per month selling her handicrafts. Recently, she decided to take out a no-profit loan with Habitat to build an additional room for her house. Vijitha is able to repay the loan using the extra money she earns from selling her handicrafts.

Habitat home partner Kalaivani Kannan is a widow raising two young daughters in Kaluthavalai village, Batticaloa. Kalaivani works as a day laborer to support her family. When building her home with Habitat for Humanity, Kalaivani learned how to make a compost bin and received seeds and plants to start a home garden. As her interest in gardening grew, so did her daily income. Kalaivani now grows banana trees in addition to her vegetable garden and earns up to USD $20 per month selling excess produce. She is now able to pay for both of her daughter’s school fees. Kalaivani was also able to use this extra income to install a water tank and connect her house to running water.

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SRI LANKA REBUILD 2012 OVER 150 volunteers will work together for 5 days. 23 Core Houses with water pumps will be built OVER 5 countries expected to participate.

Annammah has big plans for her new Habitat home. She will plant a garden to grow vegetables to supplement her diet and stabilize her condition. By selling excess produce in the community, Annammah will be able to purchase the medicine she needs. Annammah said, “In the new house, I won't go hungry. I will have the chance to see the good results of my struggles.”

ODEL volunteers during the corporate build before the Rebuild.

Rebuild Sri Lanka was completed in August 2012 with more than 150 volunteers building decent homes alongside 23 families

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Our appreciation

Volunteers: Shanghai American School, China ODEL MilleniumIT Overseas School University of London (UOL)

Alumnae Association GV teams from Japan USA Team under Gabriel USA Team under Bernie Reeves USA team under David Moore Canadian School Hong Kong GV team from GB under Claudia GV team from ECA under Daniel GV team from USA under Kira GV team under Nao Nishiki

GV team from Korea under Dae Hee

GV team from ECA under Vodafona

GV team from Konkun University Korea

Daharan Internation School , Kingdom of Saudi Arabia

Doshisha University Japan George town University Qatar GV team from USA under

Mr. Bernard Parker GV team from Canada under

Mr. Bill Dryer GV team from UK under Mr. Iyan GV team under Missaki Higuchi

Individual Donors: Quin Kan– USA Steven Weir– USA William D. Schick– USA Frank Benjamin– Australia Wye Yee Yong– Malaysia Denise Anderson—USA Yash Attanayake– USA

GlaxcoSmithKline Coca Cola Millennium IT Brandix Japan Platform

(through HFH Japan) Canada, HFH Washington County, HFH Greater Green Bay, HFH

Omaha, HFH North Central Georgia, HFH Temecula Valley High School

HFH CC Greater Los Angeles, HFH Lions Foundation Germany and

HFH Germany

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Independent auditor's report

To the Members of Habitat for Humanity- Sri Lanka (Guarantee) Limited

Report on the Financial Statements

Management’s Responsibility for the Financial Statements

1 We have audited the accompanying financial statements of Habitat for Humanity- Sri Lanka(Guarantee) Limited (the ''Company'') which comprise the balance sheet as at 30 June 2012, and thestatement of financial activities, statement of changes in accumulated fund and cash flow statementfor the year then ended, and a summary of significant accounting policies and other explanatorynotes as set out on pages 3 to 21.

2 Management is responsible for the preparation and fair presentation of these financialstatements in accordance with the Sri Lanka Accounting Standards. This responsibility includes:designing, implementing and maintaining internal control relevant to the preparation and fairpresentation of financial statements that are free from material misstatement, whether due to fraud orerror; selecting and applying appropriate accounting policies; and making accounting estimates that

Scope of Audit and Basis of Opinion

Opinion

3 Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with Sri Lanka Auditing Standards. Those Standards requirethat we plan and perform the audit to obtain reasonable assurance whether the financial statementsare free from material misstatements.

We have obtained all the information and explanations which to the best of our knowledge and beliefwere necessary for the purposes of our audit. We therefore believe that our audit provides areasonable basis for our opinion.

4 In our opinion, so far as appears from our examination the Company maintained properaccounting records for the year ended 30 June 2012, and the financial statements give a true and fairview of the Company's state of affairs as at 30 June 2012, and of its net deficit and cash flows for theyear then ended in accordance with Sri Lanka Accounting Standards.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statement presentation.

error; selecting and applying appropriate accounting policies; and making accounting estimates thatare reasonable in the circumstances.

FINANCIAL STATEMENTS

HABITAT FOR HUMANITY- SRI LANKA (GUARANTEE) LIMITED

Statement of financial activities

(all amounts in Sri Lanka Rupees)

Note

2012 2011

Support and revenue 12 122,014,013 106,649,614

Programme related expenses (95,262,907) (53,737,357)

Support service expenses (55,263,656) (58,855,785)

Net deficit before tax 13 (28,512,550) (5,943,528)

30 June

Year ended

Income tax expense 14 974,468 (1,424,912)

Net deficit after tax (27,538,082) (7,368,440)

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Get Involved!

Habitat for Humanity Sri Lanka No.22/5 Station Road Dehiwala, Sri Lanka.

Phone: +94 (011) 2714274, +94 (011) 2714275 info@hfhsl.org

http://www.hfhsl.org Fax: +94 (011) 4202788

Volunteer! Sponsor a Home!

Advocate! Donate!